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8-11-14 Agenda PacketCITY OF ATLANTIC BEACH CITY COMMISSION MEETING August 11,2014-6:30 PM AGENDA Call to order Invocation and pledge to the flag 1. A. B. C. D. Approve the minutes ofthe Regular Commission Meeting of July 14, 2014. Approve the minutes ofthe Workshop of June 23,2014. Approve the minutes ofthe Special Workshop on Police Building of June 23, 2014. Approve the minutes of the Public Meetings of June 27, 2014. 2. Courtesy of Floor to Visitors 3. Unf'mished 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 and Monthly Financial Report for June 2014. B. Award the contract for annual Janitorial Services for City Facilities (Bid No. 1213-06) to Supreme Janitorial Service for one (1) additional year to expire on September 30, 2015. C. 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. D. Authorize the Mayor to sign the related paperwork for the applications and the subsequent paperwork related to the JAG grant. In addition, authorize Michael D. Classey to submit the applications on line and have the authorization to electronically sign the on-line applications on behalf of the Mayor and the City. 5. Committee Reports None. 6. Action on Resolutions A. Resolution No. 14-07 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA; SUPPLEMENTING ORDINANCE NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A NOT EXCEEDING $14,000,000 UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014; AUTHORIZING AWARD OF THE BONDS TO TD BANK, N.A. FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS; AND PROVIDING AN EFFECTIVE DATE. 7. Action on Ordinances A. ORDINANCE N0.15-14-14, Public Hearing and Final Reading 1 2 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTING ORDINANCE NO. 15-95-7 ENACTED BY THE CITY COMMISSION ON NOVEMBER 13, 1995, AS AMENDED AND SUPPLEMENTED (THE “ORIGINAL ORDINANCE”); AUTHORIZING THE ISSUANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 TO REFUND THE CITY’S OUTSTANDING UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004, UTILITIES SYSTEM REVENUE BONDS, SERIES 2010A-1 AND UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2010B; APPROVING A FORM OF LOAN AGREEMENT AND AUTHORIZING EXECUTION AND DELIVERY OF THE LOAN AGREEMENT AND OTHER ACTION IN CONNECTION WITH THE DELIVERY OF SUCH BOND; PROVIDING FOR SALE OF THE BOND BY RESOLUTION FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS FROM COMMERCIAL BANKS AND NEGOTIATIONS WITH THE SUCCESSFUL BIDDER; PLEDGING THE CITY'S PLEDGED REVENUES DESCRIBED IN THE ORIGINAL ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. B. ORDINANCE NO. 58-14-38, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES’ RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-268, DISABILITY; AMENDING SECTION 2 -274, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. C. ORDINANCE NO. 58-14-39, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-307, DISABILITY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. D. ORDINANCE NO. 95-14-108, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 9, OF THE CODE OF ORDINANCES, TO PROHIBIT DISCRIMINATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. E. ORDINANCE NO. 5-14-61, Introduction and First Reading (Deferred on 7/14/14) AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES, ADMINISTRATION, ARTICLE II, CITY COMMISSION, SEC. 2-16, TIME AND PLACE OF REGULAR MEETINGS, TO PROVIDE FOR TWO (2) REGULAR MEETINGS PER MONTH EXCEPT FOR DECEMBER AND PROVIDING AN EFFECTIVE DATE. 8. Miscellaneous Business A. Public Hearing on Request for use-by-exception (UBEX-14-00100018) to allow the permanent storage of automobiles in the Light Industrial and Warehousing (LIW) Zoning District located at 512 Stewart Street. B. Public Hearing on Request for use-by-exception (UBEX-14-00100019) to allow limited wholesale operations in the Commercial General (CG) Zoning District located at 1175 Atlantic Boulevard. C. Proposed amendment to Section 2-16. Time and place of regular meetings and scheduled workshops. (Commissioner Beckenbach) D. Request to amend Section 24-84 of the City Code of Ordinances related to Through Lots. 9. City Manager A. City Manager's Report. • 90-Day Calendar (August-October 2014) 10. Reports and/or requests from City Commissioners and City Attorney Adjourn If any person decides to appeal any decision made by the City Commission with respect to any matter considered at any meeting, such person may need a record of the proceedings, and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record shall include the testimony and evidence upon which the appeal is to be based. Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the City Clerk prior to the meeting. For your convenience, forms for this purpose are available at the entrance to the Commission Chambers. 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, August 8, 2014. 3 WELCOME To the Atlantic Beach City Commission Meeting We will conduct meetings of the City Commission with a level of civility and respect that the democratic process deserves. This allows for better public input and supports making the best decisions for the citizens who we are here to serve. We ask that everyone in the meeting practice the following principles of Respect for each other. RESPECT Refrain from putdowns, criticism and personal attacks Encourage others to state their views Support each other, even if you don't agree Practice active listening Express yourself assertively, not aggressively, not submissively Collaborate, do not compete or collude Trust each other, unless and until such trust is violated The New Managers Toolkit: 21 Things You Need to Know MINUTES *REGULAR CITY COMMISSION MEETING July 14, 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 L. Bartle Recording Secretary Nancy E. Bailey AGENDAITEM# lA AUGUST II, 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. Mayor Woods asked for consensus to move Courtesy of the Floor to before Item 7G after moving through some of the agenda. It was the consensus of the Commission to do so. 1. A. B. c. Approve the minutes ofthe Regular Commission Meeting of June 9, 2014. Approve the minutes of the Special Called Meeting of May 27, 2014. Approve the minutes of the Workshop of May 27,2014. Mayor Woods asked if there were any corrections to the above minutes. There were no corrections, so Mayor Woods stated the minutes will stand as submitted. 2. Courtesy of Floor to Visitors Item 2 was taken out of sequence and acted on later in the meeting. 3. Unfinished Business from Previous Meetings A. City Manager's Follow-up Report. None. 4. Consent Agenda ALL MA TIERS 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. B. Award the contract for concrete repairs for the Public Works/Utilities Department to Gruhn May Inc. Mayor Woods read the Consent Agenda. Motion: Approve Consent Agenda Items A and B as read. Moved by Mark, Seconded by Daugherty July 14,2014 REGULAR COMMISSION MEETING Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 5. Committee Reports None. 6. Action on Resolutions A. RESOLUTION NO. 14-06 AGENDA ITEM# I A AUGUST 11, 2014 Page2 A RESOLUTION OF THE CITY OF ATLANTIC BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A MAINTENANCE CONTRACT BETWEEN THE CITY OF ATLANTIC BEACH AND THE ATLANTIC BEACH COUNTRY CLUB DEVELOPMENT REGARDING MAINTENANCE OF A WOODEN BRIDGE, AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Resolution No. 14-06 by title. Motion: Approve Resolution No. 14-06, authorizing the City Manager to sign the attached agreement and any related documents. Moved by Mark, Seconded by Beckenbach Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 7. Action on Ordinances A. ORDINANCE NO. 80-14-85 B. ORDINANCE NO. 80-14-86 C. ORDINANCE NO. 20-14-127 Mayor Woods explained the above ordinances were postponed so they could have proper notice before votes and they will be on the next meeting. D. ORDINANCE NO. 58-14-38, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-268, DISABILITY; AMENDING SECTION 2-274, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 58-14-38 by title. Motion: Approve Ordinance No. 58-14-38 as read. Moved by Mark, Seconded by Daugherty July 14, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# 1A AUGUST 11,2014 Page3 City Manager Van Liere explained this ordinance and the one below are both recommended by the Pension Attorney as a follow-up to the replacement ordinance done on the pension plans about a year ago. He stated this is to insure the continuation of the tax qualified status and the actuary has reported both of these will be zero financial impact to the plan for the City. He stated there will be no affect to the employees. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED E. ORDINANCE NO. 58-14-39, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-307, DISABILITY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 58-14-39 by title. Motion: Approve Ordinance No. 58-14-39 as read. Moved by Mark, Seconded by Hill Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED F. ORDINANCE NO. 15-14-14, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTING ORDINANCE NO. 15-95-7 ENACTED BY THE CITY COMMISSION ON NOVEMBER 13, 1995, AS AMENDED AND SUPPLEMENTED (THE "ORIGINAL ORDINANCE"); AUTHORIZING THE ISSUANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 TO REFUND THE CITY'S OUTSTANDING UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004, UTILITIES SYSTEM REVENUE BONDS, SERIES 2010A-1 AND UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2010B; APPROVING A FORM OF LOAN AGREEMENT AND AUTHORIZING EXECUTION AND DELIVERY OF THE LOAN AGREEMENT AND OTHER ACTION IN CONNECTION WITH THE DELIVERY OF SUCH BOND; PROVIDING FOR SALE OF THE BOND BY RESOLUTION FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS FROM COMMERCIAL BANKS AND NEGOTIATIONS WITH THE SUCCESSFUL BIDDER; PLEDGING THE CITY'S PLEDGED REVENUES DESCRIBED IN THE ORIGINAL ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 15-14-14 by title. July 14, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# IA AUGUST 11,2014 Page4 City Attorney Komando asked the Mayor, because this is dealing with the bond issue, to ask if anyone had any blue slips/public comments on this issue before the vote. Motion: Approve Ordinance No. 15-14-14 as read. Moved by Mark, Seconded by Hill Mayor Woods asked if anyone wanted to speak to the issue of refinancing our bonds for the utility system. No one in the audience spoke and there were no comments from the Commission. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Item SA was taken out of sequence and acted on at this time. A. Memorandum of Agreement Between City of Atlantic Beach and North Florida Utility Coordination Group (NFUCG). Motion: Approve the Memorandum of Agreement between JEA, the City of Atlantic Beach, City of Neptune Beach, City of Jacksonville Beach, Clay County Utility Authority, City of Gainesville, Town of Orange Park and St. Johns County to Assess Groundwater Resource Sustainability in Northeast Florida and authorize the City Manager to sign the Agreement. Moved by Daugherty, Seconded by Mark Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Item 8B was taken out of sequence and acted on at this time. B. PLAT-14-00100012 (Atlantic Beach Country Club). Motion: Approve Plat 14-00100012 (Atlantic Beach Country Club) as submitted. Moved by Mark, Seconded by Beckenbach Commissioner Beckenbach asked Mr. Hubsch if the majority of the plat was in Jacksonville but we are overseeing this. Building and Zoning Director Jeremy Hubsch explained both municipalities are signing off on the plat and having it recorded so when annexation happens there will be no issues with it. Commissioner Daugherty asked if this increases the total number of houses for the development. Mr. Hubsch stated it does not. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Item 8C was taken out of sequence and acted on at this time. July 14, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# 1A AUGUST 11, 2014 PageS C. Contingency Contract Extension for Disaster Debris Removal Services and Transfer of Contract from Byrd Brothers to Ceres Environmental. Motion: Approve a three-year extension for both contingency contracts awarding the primary contract to Ceres Environmental Services, with AshBritt as backup and authorizing the City Manger to sign the contract extensions and the contract transfer agreement for the City. Moved by Daugherty, Seconded by Mark Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Item 2 was taken out of sequence and acted on at this time. 2. Courtesy of Floor to Visitors Mayor Woods opened the Courtesy of the Floor to Visitors. She welcomed the audience and explained the process for public comments. Don Peters, 1902 N. Sherry Drive, spoke in opposition to the Human Rights Ordinance (HRO). Chris Jorgensen, 92 W. 3rd Street, spoke in opposition to the HRO. Mitch Reeves, 1663 Sea Oats Drive, addressed how taxpayer money is being spent and how are they going to get the millage rate down. Stated his concern is if they did pass the HRO it would probably cost the City around $300,000. He stated according to the Statute no resolution (ordinance) can be passed by City government without budgeting, if it costs the City any money. He asked that for any resolution (ordinance) they consider passing that they make sure it is budgeted and approved in an amended budget before they even consider passing it. Sharon Krause, 4845 Plymouth St., spoke in opposition to the HRO. JoLyn Johnson, 2322 Beachcomber Trail, spoke in opposition to the HRO. Judy Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. Rico Bodin, 8348 Knotts Landing Drive E., spoke in support of the HRO. Marina Hodgini, 721 Neptune Lane, spoke in support of the HRO. Michelle Delaney, 97119th St. N., Jacksonville Beach, spoke in support of the HRO. Mick Delaney, 97119th St. N., Jacksonville Beach, spoke in support of the HRO. Janette Kosut, 1969 Sevilla Blvd. W., spoke in support of the HRO. Chevara Orrin, 2069 N. Market St., Jacksonville, spoke in support ofthe HRO. Jason Altmire, 4800 Deerwood Campus Pkwy., Jacksonville, Sr. VP of Florida Blue, representing the 11,000 employees of Florida Blue, spoke in support of the HRO. Brenda Samara, 2233 Seminole Rd., #19, spoke in support of the HRO. Julie Schafer, 1464 Seminole Rd., spoke in support ofthe HRO. AGENDA ITEM# 1A AUGUST 11, 2014 July 14, 2014 REGULAR COMMISSION MEETING James Eddy, 222 Lawton Ave., Jacksonville, spoke in support ofthe HRO. Richard Conner, 86592 Riverwood Dr., spoke in support of the HRO. Maria Andal, 8219 Kensington Sq., Jacksonville, spoke in support of the HRO. David Vandygriff, 2941 Plum St., Jacksonville, spoke in support of the HRO. Barbara Diamond, 1921 Seville Blvd. W., spoke in support of the HRO. Randy Floyd, 6647 Oakwood St., Jacksonville, spoke in support of the HRO. Rosan Larizza, 721 Neptune Lane, spoke in support of the HRO. Donna Zimmerman, 1736 Ocean Grove Drive, spoke in support ofthe HRO. Donna Quiroz, 1039 Cove Landing Dr. spoke in support of the HRO. Steve Haerter, 106 19th Ave. S., Jacksonville Beach, spoke in support of the HRO. Tamela Mullins, 1039 Cove Landing Dr., spoke in support of the HRO. Michael Farmer, 650 Park St., Jacksonville, spoke in support of the HRO. Linda Huffman, 50116th Ave. S., Jacksonville Beach, spoke in support of the HRO. ldalie Aponte, 13514 Stone Pond Dr., Jacksonville, spoke in support of the HRO. Yvis Torres, 13514 Stone Pond Dr., Jacksonville, spoke in support of the HRO. Monica Richardson-Miller, 1505 Glengarry Rd., Jacksonville, spoke in support of the HRO. Shirlee Richardson-Miller, 1505 Glengarry Rd., Jacksonville, spoke in support ofthe HRO. Dean Andal, 8219 Kensington Sq., Jacksonville, spoke in support of the HRO. PK Drake, 4524 Attleboro St., Jacksonville, spoke in support of the HRO. Lyn Lazarus, 540 Hopkins St., Neptune Beach, spoke in support of the HRO. Kris Matson, 540 Hopkins St., Neptune Beach, spoke in support of the HRO. Bobbie O'Connor, 3654 Bridgewood Dr., Jacksonville, spoke in support of the HRO. Gary Grider, 2057 Vela Norte Circle, addressed the unfunded mandate for the HRO. Dan Merkan, 3159 College St., Jacksonville, spoke in support of the HRO. Matt Schafer, 1464 Seminole Rd., spoke in support of the HRO. Cindy Watson, 111 Trout River Terrace, Jacksonville, spoke in support of the HRO. Michael Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. Mark Hill, 1726 Selva Marina Dr., spoke in support of the HRO. Jesse Wilson, 3801 Olympic Lane, Jacksonville, spoke in support of the HRO. Page 6 July 14, 2014 REGULAR COMMISSION MEETING Barbara Jean Whitehead, 234 Poinsettia St., spoke in support of the HRO. AGENDA ITEM# I A AUGUST 11, 2014 Page 7 No one else from the audience spoke, so Mayor Woods closed the Courtesy of the Floor to Visitors. G. ORDINANCE NO. 95-14-108, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 9, OF THE CODE OF ORDINANCES, TO PROHIBIT DISCRIMINATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 95-14-108 by title. Motion: Approve Ordinance No. 95-14-108 as read. Moved by Mark, Seconded by Beckenbach Mayor Woods read from a quote by Thomas Jefferson, which she showed the audience on a slide. She further showed slides of what this ordinance does not do and what it does do. It was consensus of the Commission to give the Commissioners two opportunities to speak, once for 10 minutes with a five minute follow-up. Commissioner Hill stated this law has some very serious flaws. He asked the City Attorney if they can pass this law if it is not funded. He stated Mayor Woods, through her opening comments, has made this a battleground and asked why do we have to spearhead this battle when we know our Federal government is working it diligently through the system. Discussion ensued. Commissioner Beckenbach asked Commissioner Hill where the $300K cost is coming from that he refers to. Mr. Komando explained the jurisdictional amount in County Comt would be $15,000; it is not necessarily what the City would have to pay out, but it would be exclusive of attorneys' fees and costs. Commissioner Beckenbach stated this is nothing more than being inclusive. He stated and explained why he wanted to amend the motion to remove Item 4, Section 9-5 which reads, this article shall not apply to a corporation, professional association or business that employees fifteen employees or less. Motion: Amend Ordinance to remove Item 4, Section 9-5 which reads, this article shall not apply to a corporation, professional association or business that employees fifteen employees or less. Moved by Beckenbach, Seconded by Mark Commissioner Daugherty stated he does not agree to removing the item because of the cost to the businesses for frivolous lawsuits. Commissioner Mark stated the remedy that has been put into place, specifically for this ordinance, actually removes the burden from the City as it was originally written under the Fair Housing. She stated the remedy in this ordinance now is that any aggrieved party has 60 days to file a complaint with the special magistrate, each party to bear their own cost. She stated the special magistrate would make a determination whether or not an act of discrimination occurred, then the party who was not prevailing could appeal that and the first step would be to County Court, which is where the $15,000 comes in. She stated she does not know where the $300,000 came from because she believes as a governmental agency they have a limit of sovereign immunity. She stated with the special magistrate being put into place, she believes 90% of the cases will probably settle. Commissioner Hill stated regarding the amendment, they now have the fastest track in the USA to litigation on LGBT issues. Mayor Woods asked the City Attorney to weigh in on this. Mr. Komando stated the amendment was whether or not a small business can defend and this does stress that issue. He stated Florida has set up individual review boards, human rights commissions, etc. that were reviewed before they ever get to a court system. He stated this process, as originally discussed, would go directly to court but they have July 14, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# 1A AUGUST 11, 2014 Page 8 more recently incorporated the special magistrate so it is a faster way that someone could get into the court system. Discussion ensued. Commissioner Daugherty asked if a business should have to defend themselves to the special magistrate, would they not most likely bring representation. Mr. Komando stated that is up to them. Mayor Woods stated the businesses with fewer than 15 employees are already under the obligation to the law based on race, sex, color, etc. so she doesn't see people in Atlantic Beach or anyone rushing to file lawsuits because they are expensive to both sides. Further discussion ensued. Commissioner Beckenbach stated he was approached by a citizen who asked why would they look at just businesses with 15 or more employees when the ultimate goal is the nondiscrimination ofthe individual. He stated the citizen asked why they are exempting a small business, because if they are discriminatory, you would want to make sure they are not exempt in that situation. He stated if they want to talk more about this amendment, he has no problem with it going to another workshop. He stated he is looking at the best thing for a nondiscriminatory law that is for everyone. He stated if they are looking at a small business that is discriminating and giving them a pass because of finances, that is a concern ofhis. Mayor Woods stated the reason they went to the 15 employees was because of the Equal Employment Opportunity Commission's rules and policies, so she is comfortable with sticking with their policies and she would like to call the vote. The Commission voted on calling the vote. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Mr. Komando stated this will be considered a substantial and material change if the amendment passes, and it will have to go back to first reading. Mayor Woods called for a vote on the amendment. Votes: Aye: 1 -Beckenbach Nay: 4-Mark, Woods, Daugherty, Hill MOTION FAILED Commissioner Mark explained the background of how she brought this ordinance before the Commission. She stated the groups of people that these laws afford these protections will feel it immensely and they will be given the true freedom to live, work, play, spend their money, etc. in our town. She stated if they end up passing this in Atlantic Beach, she will be proud to say they are the first city in N.E. Florida, Duval County, to take that step that we represent true equality and antidiscrimination for everybody. She stated it takes a lot of courage and that first step to overcome that fear. She stated most of the fear is fueled by ignorance and people not understanding their fellow man. She stated although the language has been so criticized by some of her fellow Commissioners, she hasn't heard any suggestions from any other Commissioners for language that they would accept. She stated the language they chose for this ordinance was particularly picked from certain ordinances within Florida where it has passed and they removed a lot of the over-reaching language that she believed was not applicable to our community. She stated Mr. Komando has worked countless hours on this ordinance and talked to many people throughout the State. She stated to say that this is just template language that is going to set us up for lawsuits, to her, that is just as empty as some ofthese protests and scare tactics she has heard tonight. She stated she wants it to go to vote tonight. She stated she did not run on the Human Rights Ordinance, it was never a part of her platform, but she is happy that she brought it to the Commission and very proud of the Commission for letting it continue forward and to keep this conversation going and to hopefully pass something that they can be proud of in Atlantic Beach. July 14, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# lA AUGUST II, 2014 Page9 Mayor Woods stated she wants to amend the ordinance to eliminate the Section 9-5 (6) Public Accommodations. She stated she had the City Attorney look at State laws that govern public accommodations and believes it is covered in that way and can be eliminated from this ordinance. Motion: Amend to eliminate Section 9-5 (6) Public Accommodations Moved by Woods, Seconded by Mark Discussion ensued. Commissioner Daugherty asked if this would be a substantial change and they would have to bring this back for another first reading. Mr. Komando stated he does not believe it does because this was a provision that was added in the last section after Public Comment. He stated the issue on substantial change is, does it materially change the ordinance and as a part of an exception he does not believe this does because it is not something that is illegal in Florida Statute now. Commissioner Hill called the vote. Mayor Woods asked for a vote on calling the vote. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Mayor Woods asked for a vote on the amendment. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED Commissioner Hill asked the attorney if they can vote on this without funding this. Mr. Komando stated yes, when you read Sec. 166.241 it establishes guidelines and procedures for establishing and adopting budget, it indicates under subsection 2 that that budget has to be adopted by ordinance or resolution or as prescribed by Charter. He stated it has one provision that he believes is what Mr. Reeves was referring to that the adopted budget must regulate expenditures of the municipality and an officer of the municipal government may not expand or contract for expenditures in any fiscal year except pursuant to the adopted budget. He stated, however, in certain circumstances similar to code enforcement or other issues, the City does have a legal line item for budget. He stated it is something that is already budgeted for. He stated if those expenses exceed what has already been budgeted for, it is a policy decision for the Commission, not something legal that he is able to answer. Further discussion ensued. Commissioner Hill stated he would like to amend the motion to have the citizens vote on it. Mayor Woods asked if this would be an amendment to the ordinance. Mr. Komando stated it would be a strike all amendment to the ordinance. He stated it would effectively be a straw ballot vote. He stated when the ordinance passes there is no legal effect that prohibits discrimination which is why he refers to it as a strike all amendment. Motion: Amend to take whatever procedural activity that is required to get this to a vote in front of the public. Moved by Hill, Seconded by Daugherty Votes: Aye: 2-Daugherty, Hill Nay: 3-Beckenbach, Mark, Woods MOTION FAILED Further discussion ensued. Mayor Woods called the vote. July 14, 2014 REGULAR COMMISSION MEETING Votes: Aye: 4-Beckenbach, Daugherty, Mark, Woods Nay: 1-Hill MOTION CARRIED Mayor Woods asked for the vote on the Ordinance. Votes: Aye: 3 -Beckenbach, Mark, Woods Nay: 2-Daugherty, Hill MOTION CARRIED AGENDA ITEM# IA AUGUST II, 2014 Page 10 H. ORDINANCE NO. 5-14-61, Introduction and First Reading (TABLED on 6/9/14) AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES, ADMINISTRATION, ARTICLE II, CITY COMMISSION, SEC. 2-16, TIME AND PLACE OF REGULAR MEETINGS, TO PROVIDE FOR TWO (2) REGULAR MEETINGS PER MONTH EXCEPT FOR DECEMBER AND PROVIDING AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 5-14-61 by title. Motion: Approve Ordinance No. 5-14-61 as read. Moved by Mark, Seconded by Hill Commissioner Hill stated he would like to defer to a time where they can focus on it more clearly. Mayor Woods stated they could call a special called meeting or they can have a workshop. She stated the next meeting is a workshop and they can discuss it more there. Commissioner Hill stated he would like to make a motion that they do that. Commissioner Mark stated they would do a motion to defer to the next meeting then, if they are going to do that. Mr. VanLiere stated they have a special called meeting at the next meeting. Mayor Woods stated the City Manager is letting them know they have a special called meeting on 7/28/14, followed by the regular workshop so this will be brought up for discussion at the regular called workshop. Motion: Defer to next meeting for discussion at the regular called workshop. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 8. Miscellaneous Business A. Memorandum of Agreement Between City of Atlantic Beach and North Florida Utility Coordination Group (NFUCG). This item was taken out of sequence and acted on earlier in the meeting. B. PLAT-14-00100012 (Atlantic Beach Country Club). This item was taken out of sequence and acted on earlier in the meeting. C. Contingency Contract Extension for Disaster Debris Removal Services and Transfer of Contract from Byrd Brothers to Ceres Environmental. This item was taken out of sequence and acted on earlier in the meeting. July 14, 2014 REGULAR COMMISSION MEETING 9. City Manager A. City Manager's Report. • 90-Day Calendar (July-September 2014) AGENDA ITEM# 1A AUGUST 11, 2014 Page 11 City Manager Nelson VanLiere reported the Town Hall meeting will be held this Saturday at 10:00 a.m. at the Gail Baker Community Center. He also asked to schedule a workshop before the August 11 meeting at 5:00p.m. to discuss the results of our police building consultant's work. Mr. VanLiere stated they met with Jacksonville and were told the Assistant General Counsel was going to schedule a mediation on the tippage fee issue sometime the week of Aug. 4. He asked for consensus that he and the City Attorney would negotiate on behalf of the City to resolve that matter. Mr. Komando stated this does not mean that they will resolve anything outside of the Commission's approval; what they are hoping is that they will trust them enough to make a good faith effort to come to a resolution. He stated he doesn't know what level of compromise that will entail, however he understands that any agreement would come back to the Commission for approval. He stated the Commission had already delegated that authority when the City Manager originally sent his letter; this is part of keeping the Commission informed and hopefully there is no objection. There were no objections from the Commission. 10. Reports and/or requests from City Commissioners and City Attorney City Clerk Bartle • Stated in the past the Commission did not want staff at the Town Hall meetings so she needs a volunteer for minutes. Mayor Woods stated she will be out of town for that meeting. Commissioner Hill stated he would not be there either. Commissioner Beckenbach stated he would take minutes. Commissioner Hill asked that the town hall meeting be changed to another date. Commissioner Daugherty stated he would also like to change the date because he is leading a group with a Habitat Project Saturday morning. Following discussion the Town Hall meeting was changed to Tuesday 7/22114 at 6:30, if the building is available. Commissioner Beckenbach stated he will still take minutes. He stated he would like to purchase a portable digital recorder that he could put on the table and record conversations and also be able to put it on the web. Mayor Woods stated she thought the iPad could be used for this. Commissioner Beckenbach stated he believed there are enough digital business recorders that would allow for us to bring it right on over to the web. Mayor Woods stated she believes staff is looking into this and asked the City Manager and City Clerk for comments. Ms. Bartle stated IT was looking into something that she didn't realize was going to be as elaborate as what they are looking at. She stated she believes what IT got out of it was that Commissioner Beckenbach wanted to be able to do video recording, so there is a system on order that will allow that but the issue with that, she believes, will be that it will take setup and they won't be able to take it over the day before and leave it for a Saturday meeting. She stated that would mean that someone would need to take that and be responsible for it and she doesn't believe it is going to be something small. Mayor Woods stated she is going to try to record with her iPad at this next meeting. Commissioner Becken bach stated he would still like to get a digital recorder to take. Mayor Woods requested that the City Manager have one purchased by July 22. Commissioner Hill clarified it to mean the most affordable, highest capacity audio recording device that you can buy within whatever budget you have at your discretion. It doesn't need to be an elaborate machine. Discussion ensued as to what was ordered and it was agreed that they could use both. City Manager Van Liere stated he would check with Keith Randich. July 14, 2014 REGULAR COMMISSION MEETING Commissioner Mark AGENDA ITEM# 1A AUGUST 11,2014 Page 12 • Reported on the police community meeting organized by Opio Sokoni. Chief Mike Classey further elaborated on the meeting. Commissioner Daugherty • Reported on the Dog Park on Plaza, stating it is completed and open. Asked if staff could post a notice at the current dog park that this park is available. • Stated he believes the tone Mayor Woods took with him with the gavel and her words were not professional and were inappropriate. Mayor Woods explained he was constantly interrupting and making accusations is strictly forbidden by Roberts Rules. She stated she apologizes if he thinks it was unprofessional. City Attorney Komando • Reported the Charter Review Committee is working diligently and very hard, with the support of staff as well. He stated they are putting a lot of effort forward and are doing a very good job in coming up with ideas and discussion points for things to better provide direction for our City. Mayor Woods • Reported on a tour of the Atlantic Beach Country Club the City Manager and she took today. She stated they extended an invitation to any other Commissioner who wanted to take a tour. Commissioner Hill questioned the concrete barrier in the creek stating he would like an environmental impact assessment. Discussion ensued. Adjournment There being no further business to come before the Commission, Mayor Woods declared the meeting adjourned at 9:12p.m. ATTEST: Donna L. Bartle, CMC City Clerk Carolyn Woods Mayor/Presiding Officer *A Workshop was held on June 23, 2014 for the purpose of discussing these items. Please refer to the Workshop Minutes for the previous discussion. AGENDA ITEM# 1B AUGUST 11, 2014 MINUTES OF THE WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN THE COMMISSION CHAMBER ON JUNE 23, 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 Call to order. The meeting, which was held for the purpose of discussing the agenda items for the Commission Meeting of July 14, 2014, was called to order at 6:30p.m. by Mayor Woods. *DISCUSSION OF AGENDA ITEMS ON JULY 14, 2014 COMMISSION MEETING: 1. A. B. c. Approve the minutes of the Regular Commission Meeting of June 9, 2014. Approve the minutes of the Special Called Meeting of May 27, 2014. Approve the minutes of the Workshop of May 27,2014. There was no discussion on this item. 2. Courtesy of Floor to Visitors There was no discussion on this item. 3. Unfinished Business from Previous Meetings A. City Manager's Follow-up Report. City Manager Nelson Van Liere reported a change in the actuary report. He stated when the report was delivered the Actuary had not taken into consideration that the Police will have, out of their own contribution, an extra 1% increase so he revised the number the City needs to pay next year, which will be less by $15,371. 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. Minutes-City Commission Workshop Page2 AGENDA ITEM# lB AUGUST II, 2014 June 23, 2014 B. Award the contract for concrete repairs for the Public Works/Utilities Department to Gruhn May Inc. There was no discussion on this item. 5. Committee Reports None. 6. Action on Resolutions A. RESOLUTION NO. 14-06 A RESOLUTION OF THE CITY OF ATLANTIC BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A MAINTENANCE CONTRACT BETWEEN THE CITY OF ATLANTIC BEACH AND THE ATLANTIC BEACH COUNTRY CLUB DEVELOPMENT REGARDING MAINTENANCE OF A WOODEN BRIDGE, AND PROVIDING AN EFFECTIVE DATE. Mr. Van Liere reported on the revised language related to the Association establishing a reserve account for the capital expenditures and deferred maintenance of the bridge. 7. Action on Ordinances A. ORDINANCE NO. 80-14-85, Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, CREATING ARTICLE V, RECLAIMED WATER SYSTEM, ADDING SECTION 22-365 CHARGES FOR RECLAIMED WATER SERVICE, PROVIDING FOR AN EFFECTIVE DATE. There was no discussion on this item. B. ORDINANCE NO. 80-14-86, Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE II, AMENDING SECTION 22- 30, PRIVATE FIRE PROTECTION SERVICE TO PROVIDE METHOD OF MONITORING FIRE LINE USAGE; TO PROVIDE FOR SEVERABILITY; TO PROVIDE FOR AN EFFECTIVE DATE. Commissioner Beckenbach asked about tampering of fire lines. Commissioner Hill stated it is highly unlikely that a fire line would be a source of someone tapping it to steal water because of the nature of the system, which is monitored and has an alarm on it. Public Utilities Director Donna Kaluzniak explained the backflow preventer that comes with the meter is about a $100 difference with the detector check. She stated she agrees with Commissioner Hill that they probably won't get a lot of people stealing water from their fire line, which is why she doesn't have a strong feeling about it either way. She stated it is just something most utilities have as a requirement, just to ensure people aren't stealing the water. Commissioner Hill stated if it is common or if it is something that is brand new, he is all for it; but he would defer to NFP A and go with what they require, because they are very strict. He stated if NFP A doesn't require it, he wouldn't think we would either. C. ORDINANCE NO. 20-14-127, Public Hearing and Final Reading AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30,2014, AND PROVIDING AN EFFECTIVE DATE. Minutes-City Commission Workshop Page3 There was no discussion on this item. D. ORDINANCE NO. 58-14-38, Introduction and First Reading AGENDA ITEM# 1B AUGUST 11, 2014 June 23, 2014 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-268, DISABILITY; AMENDING SECTION 2-274, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Mayor Woods explained both this Ordinance and Ordinance No. 58-14-39 below are tweaking our Ordinances to come into compliance with IRS issues and the changes were proposed by our pension attorney to assure we are within the letter of the law. There was no discussion on this item. E. ORDINANCE NO. 58-14-39, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-307, DISABILITY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. There was no discussion on this item. F. ORDINANCE NO. 15-14-14, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTING ORDINANCE NO. 15-95-7 ENACTED BY THE CITY COMMISSION ON NOVEMBER 13, 1995, AS AMENDED AND SUPPLEMENTED (THE "ORIGINAL ORDINANCE"); AUTHORIZING THE ISSUANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 TO REFUND THE CITY'S OUTSTANDING UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004, UTILITIES SYSTEM REVENUE BONDS, SERIES 2010A-1 AND UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2010B; APPROVING A FORM OF LOAN AGREEMENT AND AUTHORIZING EXECUTION AND DELIVERY OF THE LOAN AGREEMENT AND OTHER ACTION IN CONNECTION WITH THE DELIVERY OF SUCH BOND; PROVIDING FOR SALE OF THE BOND BY RESOLUTION FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS FROM COMMERCIAL BANKS AND NEGOTIATIONS WITH THE SUCCESSFUL BIDDER; PLEDGING THE CITY'S PLEDGED REVENUES DESCRIBED IN THE ORIGINAL ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. Mayor Woods explained this will refinance some of our debt, combining three separate loans and has the potential to save about $130,000/year. Commissioner Beckenbach asked about the variance in the interest rate. Mr. VanLiere explained that is because this authority to enter into this agreement today is for something that is going to happen August 18; interest rates are low now and he hopes that interest rates stay low between now and then. He stated how it fluctuates is tied to an index and he is pretty certain that our rates aren't going to change so much that this would not be a good thing for the City. Minutes-City Commission Workshop Page4 G. ORDINANCE NO. 95-14-108, Introduction and First Reading AGENDA ITEM# lB AUGUST 11, 2014 June 23,2014 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 9, OF THE CODE OF ORDINANCES, TO PROHIBIT DISCRIMINATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. The Mayor stated when she was first approached about an HRO ordinance, she explained she would support what our community supported and to this end we have had multiple workshops, listened to hundreds of speakers and visited and revisited every aspect of this ordinance. She stated overwhelmingly the phone calls and emails she has received have been in favor of an HRO, even more so as time and the discussions have gone on. She stated during the discussions some concerns were raised and she wants to clarify that the fears expressed are decidedly unwarranted. Referring to her handout and slide, she explained what the Atlantic Beach Human Rights Ordinance does and does not do. She further explained three areas that need addressing and her recommendations for change: (1) how can one person be defmed as a family; (2) bathroom usage; (3) expense to our City. She stated, under definitions, it is common practice to define one as many and many as one; basically to say a family shall include a single individual and also that a person shall include one or more individuals, companies, etc., which is to simplify the language. She stated, under Section 1.A and under defmitions, she is recommending they use the language from Volusia County that states bathrooms, locker rooms and other such facilities usage will be restricted by anatomical gender. She stated for the third issue, expense to our City, she is recommending, as in Article 1, Section 9.4, complaints go to a special magistrate, that a complaint be filed with the City Clerk in a written form and the City Clerk will deliver it to the City Attorney, who will deal with the magistrate. She further stated she is recommending the same process for Article 2, Section 920 dealing with housing. Mayor Woods asked if there were comments related to the wording on the bathroom usage. Commissioner Mark stated she would need to confer with the proponents for the Human Rights Ordinance to see if this is acceptable and once they see the final language there may be some tweaking to be done. Commissioner Daugherty stated what concerns him about this is that Commissioner Mark isn't saying what her opinion is on this but she wants to go to this lobbying group to see what they want her to do. City Attorney Komando read the language from Volusia County's Ordinance stating that the provisions of this article shall not prohibit a restriction or use in restroom, shower room, bath house or similar facilities consistent with the facility users actual anatomical gender, except that if the facility user has undergone and completed gender transition surgical procedures either before or during employment then said user shall be allowed to utilize restrooms, shower rooms and similar facilities consistent with his/her transsexual status. Commissioner Hill stated they are being used as a pawn. He stated the emails that came to Commission Mark from Equality Florida make it clear who is driving the agenda. He stated they have to decide on the need. Mayor Woods stated the vote will determine whether they need it; that is how the process works. She asked him if there was some specific language he would lil<:e to talk about. Commission Hill asked if this is the first ordinance the Commission is going to decide whether they need it by a vote or are they going to look into the facts of the matter and then decide. He stated they should set up some Minutes -City Commission Workshop PageS AGENDA ITEM# lB AUGUST 11, 2014 June 23,2014 kind of mechanism to document and confirm whether there is a real need for a reasonable period of time. He stated you don't determine the need by putting five people to a vote. He stated he endorsed the concept completely; he does not endorse this out of town lobbying. Mayor Woods asked the City Clerk to set the clock to give each Commissioner two times to speak to the issue, five minutes each time. Commissioner Hill asked the City Attorney is he agrees that $15,000 is the end ofthe litigation process; does he believe that is the maximum any business would ever be penalized if they are brought before a magistrate and it will end there and there will be no civil litigation that adds any money to that. Mr. Komando stated, the way he phrased that question, no. He stated whatever cost would be incurred in going to the magistrate is separate from whatever the cost of civil litigation would be included and if the County Court Judge were to award attorney's fees and costs, that is separate from the maximum indemnity. Commissioner Hill asked if the $15,000 is the limit that any business will pay in damages or can it go to civil court and go higher. Mr. Komando stated, is $15,000 the absolute limit, no, because they can be awarded attorney's fees and costs. He stated our Ordinance does not have a provision for punitive damages, etc. Commissioner Hill asked if this is considered Civil Court, through the magistrate, it's done and can't go any farther. Mr. Komando stated it is actually the first tier of review, the City's level of review and then if either side disagrees with the magistrate's ruling they would have the ability to appeal that to County Court. Discussion ensued. Commissioner Mark stated she had a change to the time the party can file a complaint from 30 days to 180 days. Commissioner Mark explained why she brought the HRO to the Commission. Commissioner Beckenbach asked that the Chair give everyone an additional 5 minutes to discuss this. Mayor Woods stated she is in favor of it as long as they are moving forward. Commissioner Beckenbach reported on emails he received from citizens, in particular, reading from an email from Helen Bradley. He stated he has no problem moving forward and if there are a few changes needed, let's change them. He stated the most asked question he had from people who were against the ordinance was the definition of sexual orientation and gender expression. Mayor Woods read the definition of gender expression from the ordinance. Discussion ensued. Commissioner Daugherty stated his biggest concern is when this infringes on his personal beliefs and faith. He referred to page 12, Section 9-18, stating Florida Department of Business and Professional Regulation already covers that it is unlawful for realtors to discriminate. He stated he would move to strike Section 9-18 because it is unnecessary language. He stated on page 13, line 1, it says a complaint shall be filed within 180 days. He believes it would make it very impossible for somebody to defend themselves. Mr. Komando clarified Section 9-20 is dealing with Article 2, the fair housing portion, which is already in the Code and has not been changed. He stated under Section 9-4 in Draft 2 that says 30 days and Draft 3 is 180 days. Commissioner Daugherty asked if the City will be charged additional fees for the City Attorney's time or is this covered under his scope of services he provides. Mr. Komando stated he does not lmow because he doesn't know if it would be considered litigation and he would have to know what the substance of the complaint would be. Commissioner Daugherty referred to Section 9-22, Discrimination in Financing of Housing, stating this is already covered by Federal law Minutes -City Commission Workshop Page6 AGENDA ITEM# 1B AUGUST 11, 2014 June 23, 2014 and moved that it be struck. He stated in 9-23 Section 1, it says 3 houses, and asked when they went from four to three. Mr. Komando stated under 9-23, subsection Al, the 3 or more is what is currently in the ordinance. He stated he did not touch anything that dealt with the fair housing issue. Discussion ensued. Commissioner Hill stated the word perception needs to be eliminated. Discussion ensued. Commissioner Mark asked if the word perception, as used in this particular ordinance as well as in all the other antidiscrimination laws is a legal term. Mr. Komando stated under Sexual Orientation, the definition says Sexual Orientation means an individual's actual or perceived heterosexuality, homosexuality, or bisexuality. He stated that is the only time the word perceived is in Draft 2. He stated it is added to gender expression and gender identity in Draft 3. Mayor Woods stated it still doesn't relate to that they perceive they have been discriminated against; it is not used in that instance at all, which is what Commissioner Hill was talking about. Further discussion ensued. Mayor Woods asked the City Clerk if consensus was arrived at to cancel the workshop and have a workshop tonight on this item. City Clerk Bartle stated she was on vacation. Mr. Van Liere explained there were conversations with himself, Commissioner Mark, Mayor Woods and others that it would not be a productive meeting and they desired to have it changed to tonight. He stated since he believed that was the consensus, there were others who had scheduling conflicts, language was still being worked out and there wasn't even a final draft ready for the workshop agenda deadline, he moved the meeting to tonight. Further discussion ensued. Mayor Woods stated if they have any more specific issues they need to talk about they can talk about them. She stated this will move forward by consensus to the July 14 meeting where it will be up for first reading and then on July 28th meeting it will be discussed at another workshop and then it will be on the August 11th meeting for public hearing and final vote. Discussion related to hearing the two experts ensued, with Commission Hill requesting that they be allowed to spealc. City Attorney Komando stated there are things that are changing on a Federal level on a weeldy basis; there has been a Supreme Court decision since the last workshop and other regulators decisions as well. Mayor Woods asked if they need to have the two speakers or should they rely on our own City Attorney. Commissioner Mark stated she is fine with the City Attorney; he is on top of it and has been working on· this. Commissioner Beckenbach stated he believes the outside attorney could speak through a blue slip. Commissioner Daugherty stated he doesn't believe any more speakers are going to change anyone's minds and we would be wasting our time and theirs. Mayor Woods suggested that if one side or the other would like to present in written form their perception of the existing laws and the protections out there, then they can all read it. She stated they have turned in blue slips and will have blue slips at three or more meetings. Mayor Woods explained that City Attorney Komando has written down all of the changes and issues and will incorporate the language and get the Commission a copy before the next meeting. The consensus was to change the time frame for filing a suit to 60 days from 180. H. ORDINANCE NO. 5-14-61, Introduction and First Reading (TABLED on 6/9/14) AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES, ADMINISTRATION, ARTICLE II, CITY COMMISSION, SEC. 2-16, TIME AND PLACE OF REGULAR MEETINGS, TO PROVIDE FOR TWO (2) REGULAR MEETINGS PER MONTH EXCEPT FOR DECEMBER AND PROVIDING AN EFFECTIVE DATE. Minutes-City Commission Worl{Shop Page7 AGENDA ITEM# 18 AUGUST 11,2014 June 23,2014 Commissioner Beckenbach explained the background of how workshops came about. He stated he has no problem voting on the consent agenda, but does have a problem with voting on the miscellaneous items with a previous meeting to discuss. He stated he would also like to see contracts laid out in the beginning of the year so they know in advance what contracts are coming up and will know what will be on the consent agenda. He stated he believes they shouldn't change it because the citizens are his boss and are the ones who want to know what is going on, not staff. Mayor Woods stated she appreciates what Commissioner Beckenbach has said, but she has had lengthy conversations with the City Attorney, City Clerk and City Manager and they have tried to work out the hybrid they were discussing. She explained her understanding of this hybrid. City Manager Van Liere further explained the hybrid and the calendar for the agenda packet distribution. Commissioner Mark suggested adding public comment at the end of the meeting in addition to the beginning of the meeting. Discussion ensued. It was consensus to move forward with the hybrid. City Clerk Bartle asked for clarification that everything would be heard twice except for what was on the consent agenda. Mayor Woods stated the minutes will not be heard twice and unfinished business will not be heard twice, which would include resolutions. She stated they want to assure that everything is heard twice before it is voted on, except for the minutes, the consent agenda items, unfinished business, committee reports, and proclamations. Commissioner Mark stated she believes resolutions should stay where they are on the agenda because there is a place for them and when it comes up for discussion, if they believe it is something they want to discuss again, then that could be moved to the next meeting. She stated they shouldn't over-complicate this. Ms. Bartle stated she would be comfortable using something like they had in the packet and the Commission tell them of any changes they want to it. Mr. Van Liere stated the way he proposed this was that Resolutions would always be under Resolutions and if they want to vote on them do so and if not defer them. Ms. Bartle stated the only difference in what was submitted to them, in looking at the numbers, is there is a waiver and appointment of members to standing boards and committees that just comes one time which is under miscellaneous business. She stated what she is hearing is that they will never vote on miscellaneous items; it will be voted on when it becomes unfinished business. Mayor Woods stated she has always felt that committee appointments should be under committee reports, not under miscellaneous business. Commissioner Daugherty agreed. Mr. Van Liere stated they will make that change. Commissioner Hill stated after a test period he would like to take another look at this. He stated they don't want to get in the habit of doing something that the citizens can see a problem with and they just live with. Mr. Van Liere stated if anyone has an issue with the way it is going it can be addressed. Commissioner Hill stated he wants it on the agenda again in six months from the time of passing to be looked at again. 8. Miscellaneous Business A. Memorandum of Agreement between City of Atlantic Beach and North Florida Utility Coordination Group (NFUCG). Public Utilities Director Donna Kaluzniak explained the agreement, stating this is a continuation of that agreement. B. PLAT-14-00100012 (Atlantic Beach Country Club). Minutes-City Commission Workshop PageS AGENDA ITEM# 1B AUGUST 11,2014 June 23, 2014 Building and Zoning Director Jeremy Hubsch explained Atlantic Beach Country Club is going to start construction on the first 17 homes and the first step is to get it platted. He stated Public Works, Public Utilities and our Planning Department saw nothing wrong with the plat, stating it matches up with the approved SPA map. He stated the Community Development Board approved it 6-0 at their last meeting. He answered questions from the Commission. C. Contingency Contract Extension for Disaster Debris Removal Services and Transfer of Contract from Byrd Brothers to Ceres Environmental. Public Works Director Doug Layton explained this was a bid that was awarded to the two lowest bidders and both of those have withdrawn. He stated they spoke with the third and last bidder who stated they were willing to honor their prices and would like to contract with us and this is for the Commission to approve that contract. 9. City Manager A. City Manager's Report. • 90-Day Calendar (July-September 2014) Mr. VanLiere stated he has moved the 90-day calendar down to the City Manager's report so it is not an action item and can be put on every agenda. He stated, due to conflicts, the August 5th budget workshop has been removed, which is the only change to the calendar since the last time they saw it. He stated the budget workshops will now be the August 13th and 20th. Courtesy of the Floor Marcelle Bessman, 4417 Port Arthur Rd., spoke in favor of the Human Rights Ordinance (HRO). Mayor Woods asked for a consensus for a time limit. It was the consensus to limit the speakers to 3 minutes. Commissioner Hill asked that one representative from Equality Florida and the attorney who travelled have 5 minutes. It was consensus to do that. Chris Jorgensen, 92 W. 3rd St., spoke in opposition to the HRO and thanlced Commissioner Hill for his extraordinary insight, detailed concern for the health, well being and safety of the citizens of Atlantic Beach. Roger Gannam, 4232 Kincardine Drive, spoke in opposition to the HRO and explained the various lSSUeS. Tom Serwatlm, 1431 Riverplace Blvd., Jacksonville-spoke on behalf of Equality Florida in support of the HRO and explained the reasons. Michael Farmer, 650 Park Street, Jacksonville/134 E. Colonial Dr., Orlando, also on staff of Equality Florida, spoke in support of the HRO. Sharon Krauss, 4845 Plymouth Street, Jacksonville, spoke in opposition to the HRO. Minutes-City Commission Workshop Page9 Amber Barnes, 740 Sailfish Dr., spoke in support of the HRO. Michael Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. AGENDA ITEM# IB AUGUST I I, 2014 June 23, 2014 Chevara Orrin, 2069 North Market Street, Jacksonville, Founder and Co-creator of We Are Straight Allies and member of Jacksonville Coalition of Equality, spoke in support of the HRO. Mandy Bouton, 213 Cherry Street, Neptune Beach, spoke in support of the HRO. Mark Tomaski, 448 Snapping Turtle Circle, spoke in opposition to Ordinance No. 5-14-61 and requested that the ordinance be stricken. He stated he sees no reason to waste any more time on something that is working for something that we have known has harmed us in the past. Judy Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. Dan Merkan, 3159 College St., spoke in support of the HRO and also was in favor of the change to the Commission meetings. 10. Reports and/or requests from City Commissioners and City Attorney Commissioner Hill stated he is not sure what has happened to our process and would like to see the Commission get serious about the rules or keep an open free flowing conversation going. He also stated he did hear a legitimate case of discrimination tonight but he believes Atlantic Beach is different and doesn't see our businesses or residents doing that. He asked are we just making a statement or are we addressing an issue. Commissioner Daugherty stated he wants a calendar of all contracts that are over $25,000 because there are so many things that come to them at the last minute. Mr. VanLiere explained that there is one on the website. Commissioner Daugherty stated he would get with Mr. Van Liere to discuss it. He further explained why he doesn't understand or see the need for the HRO. Commissioner Beckenbach explained why he is in favor of the HRO, stating although he may not be able to understand the discrimination, he knows that it occurs. He stated he believes every United States citizen should have the rights of the other United Stated citizens and should, under the law, be equal. He stated in this particular case he does not believe he can honestly say that homosexuals, heterosexuals and transgenders, at the present time, are equal under the law. Commissioner Mark agreed with Commissioner Beckenbach's comments supporting the HRO, stating she could not say it any better. She complimented Mayor Woods on moving the HRO discussion forward. She stated she supports invoking Robert's Rules to keep things at a professional level and refrain from personal attacks and disparaging remarks. She thanked the audience for being here. She commented on the proposed meeting changes and explained why she believes the Commission should give the hybrid meeting schedule a try. Mayor Woods stated, regarding the HRO, what the community wants is what she is behind and it is very important that they get the language right. She stated that is also true for the way they conduct their meetings. She stated if they are going to move to a hybrid meeting, she really wants Commissioner Minutes-City Commission Workshop Page 10 AGENDA ITEM# 1B AUGUST 11,2014 June 23, 2014 Beckenbach to work out the details because if he is not comfortable with what they are moving to, she probably will not be comfortable with it. She stated they have worked with the Workshop platform for a while and there are some things that do seem to get bogged down and some things that don't need to be held up, so she hopes the hybrid will be the solution to make sure everything gets vetted at least twice and the things that need to move along do so. She stated if it takes a couple of more months to get the wording right, then that's what it takes. She stated they just need to keep working together and moving forward. Adjournment There being no further discussion by the City Commission, Mayor Woods declared the meeting adjourned at 9:53 p.m. Donna L. Bartle, CMC City Clerk Carolyn Woods Mayor *Formal action (if needed) will be taken at the Commission Meeting of July 14, 2014. MINUTES OF SPECIAL WORKSHOP OF AGENDA ITEM# 1C AUGUST 11, 2014 ATLANTIC BEACH CITY COMMISSION HELD ON JUNE 23,2014 PRESENT: Mayor Carolyn Woods Mayor Pro Tern Mark Beckenbach (arrived at 5:29p.m.) Commissioner Jonathan Daugherty Commissioner Jimmy Hill Commissioner Maria Mark (arrived at 5:19p.m.) ALSO: Nelson VanLiere, Interim City Manager Richard Komando, City Attorney Donna Bartle, City Clerk Call to order. The Mayor called the meeting to order at 5:06 p.m. in the Commission Chamber. Mayor Woods explained the procedures for the Special Called meeting. 1. Presentation by Clemmons, Rutherford and Associates (CRA Architects) on Police Building. Chief Classey introduced Bill Rutherford and Blakeley Bruce from Clemmons, Rutherford and Associates, who were in the audience. He distributed a handout to the Commission regarding the Scope of Work. Bill Rutherford explained they are evaluating the approach to placing structures and the parking, which they will put in the report to the Commission. He explained their scope is to identify the land on this site that would be usable and suitable and efficient to use for the police station. He stated they welcome any comments the Commission has this evening. Commissioner Hill stated he would like to limit parking from the police station into the current parking area by the park. He stated the parking lot in the back of the building will have to be addressed as it is sinking, breaking and cracking. He would like to keep the service area entrance and, if possible, have the sally port in that area. He believes it is critical that the building stay here. He suggested doing this in two phases so they could have a temporary shift from one space to the other and keep the operation here, avoiding a temporary trailer. He stated the retention issue hasn't come up but they had a lot of discussion about possibly the authority having jurisdiction and we have some unique things here. He stated he doesn't know what that is going to entail but would look forward to hearing officially what they think it is going to entail and what the demands are going to be because it is a piece they haven't seen in this project. Mr. Rutherford stated he has spoken to Mr. Frye with St. Johns who is in charge of this area and was told they do not see a problem with us staying at the 500 year plain or above and stated retention was the question he had. He stated when you can't just dig a hole they can go to under parking tank retention, because you will have to have the retention or you won't be allowed the square footage. He stated he believes the walkway is sitting on top of a retention tank. Blakeley Bruce stated their Civil Engineer was here tonight and he could speak on this. Bobby Baker, AGENDA ITEM # 1 C AUGUST 11,2014 DB Civil Works, stated if they exceed a 5,000 s.f. building footprint that would trip the threshold to require an environmental resource permit, which is the stormwater treatment system that would be required. Commissioner Daugherty stated he would be fine with them tearing the Commission Chamber building down and would also be okay with going vertical. He stated he is in favor of the underground vaults for water. He also suggested bringing in dirt to raise the building out of the flood plain. He stated he believes we have adequate parking since not many people go to the police station. Mayor Woods clarified that they are not designing a building, but are letting the Commission know what this site can handle. Mr. Rutherford stated their scope is to tell them how many square feet they can build on. Mr. Bruce added it is how many gross square feet can they add to the existing building. Mayor Woods asked what is involved in an environmental resource permit. Mr. Baker explained there are different rules to the Florida Administrative Code and in this case it is a permit through St. Johns River Water Management District. He stated they do some calculations based on runoff and storm events, come up with a volume of stormwater that has to be treated that would be stored onsite for a period of time that would gradually be released either through percolation back into the ground or through some control structure that would allow it to leach back into the drainage creek. Discussion ensued. Commissioner Mark asked if they have considered joining the police and Chamber buildings. She asked if they will bring back different options with price points. Mr. Rutherford stated he believes they will come back with an option that is just below the threshold and will have additions to that to show them where they can go and how large it could be or how much they could add in addition to the 4,000-5,000. He stated he would like to base this on what they have the opportunity to do rather than a set square footage because of a rule. He stated he would like to drop the square footage amount and look at the availability of the space and the best option. Discussion ensued. Mr. Bruce stated even though they are not looking at floor plans, just from an operational standpoint, adding on to the building on one or two sides and keeping it all on one level has got to be operationally a more efficient proposal than having some on a second floor. Mr. Rutherford stated if, down the road, they just had to have additional square feet and had no other place to go they would have to make a choice of yes up or no up, but that would be their call. Commissioner Beckenbach apologized for being late and asked that Mr. Rutherford elaborate on the 5,000 s.f. he was talking about. Mr. Rutherford stated the 5,000 is a number from the Civil Engineer and asked that he explain. Mr. Baker stated it is just a threshold. He stated ifthey put 5,000 s.f. ofnew building under roof, it is a threshold that trips the requirement for an environmental resource permit that is handled, in this district, by the St. Johns River Water Management District. It is an additional permit for stormwater treatment. 2. Courtesy of the Floor John Sparks, 2022 Lakeview Ct., stated they need to take it to the high ground and put it on poles so the Command Central survives that big wave during a Class IV hurricane. Chris Jorgensen, 92 W 3 1·d Street, related a situation in his past of a building being built that was built -2- wrong. Stated he has no problem with the building. Adjourn AGENDA ITEM# IC AUGUST 11,2014 There being no further discussion by the City Commission, Mayor Woods declared the meeting adjourned at 5:40p.m. ATTEST Donna L. Bartle, CMC City Clerk -3- Carolyn Woods Mayor AGENDA ITEM# lD AUGUST 11, 2014 Minutes of the Public Meeting held in the City Hall North Conference Room on Friday, June 27, 2014 at 3:00 p.m. Commissioners Beckenbach and Hill met with the City Manager to discuss general topics pertaining to the recent workshop and upcoming agenda. Present: Mayor Pro Tern/Commissioner Mark Beckenbach Commissioner Jimmy Hill Commissioner Maria Mark City Manager Nelson Van Liere City Attorney Rich Komando Dr. Mark Tomaski Mr. Chris Jorgensen Commissioner Hill -wants to discuss HRO. Expressed concerns with the logistics of the HRO. Even though other local governments have similar laws, he is concerned over the costs. Commissioner Hill used the dangerous dog case as an example ($3, 000) of the possible costs. He has concern about the balance vs. the effect to our City. Commissioner Beckenbach -as far as litigation is concerned, he made a few phone calls and the local government he contacted hadn't seen any litigation. Commissioner Hill -our ordinance isn't like the other ones. The filter for the process is too light and that will make us a focal point of anyone who wants to get into the judicial process. He doesn't think any of our citizens would do this. Is it an opinion to pass something similar to Neptune Beach and ensure that the City's process is in order. Commissioner Beckenbach spoke with Judy Sheklin who is involved with this advocacy and she gives an example of a girl she knows. R Komando -discuss definition of age in the proposed ordinance. Commissioner Hill -asks for clarification definition of family. R Komando -explain definition is currently in the ordinance dear the fair housing section. Commissioner Beckenbach -insurance program. Would that cover litigation costs? Commissioner Hill -if not covered, can we buy coverage? N Van Liere -doesn't believe insurance would cover, but we can check with the HR Director. Commissioner Hill -businesses may not know they have a bigot working for them, and the business would bear the costs. Then COAB would not be attractive for business. Commissioner Beckenbach -disagrees. AGENDA ITEM# 1D AUGUST 11, 2014 Commissioner Hill -we have a responsibility to businesses and shouldn't be using activism with a business person's checkbook. Commissioner Beckenbach -explains former hesitation about the transgender group, but spoke with Dr. Tomaski and better understands what each person deserves. Most major corporations have internal policies in place. He checked and learned that other than statewide and national businesses, restaurants would be the ones with more than fifteen employees. Commissioner Hill -why do we want to be in this part of people's lives. Discuss the opposition from religious groups and the exemption that seems to now address the protection of their beliefs. Doesn't think the ordinance will change anyone's mind about the lifestyle. Commissioner Hill and Beckenbach -discuss national history of religious freedoms. Commissioner Hill -isn't the government already handling this issue . Doesn't like the language, but agrees it's getting better. Feels like it is being rushed toward the end. Believes this ordinance will generate a constitutional challenge or cost the City thousands of dollars. Commissioner Hill -discuss possible referendum. Commissioner Mark -ask for clarification of what is meant by costs. Present or future. Not aware of any other local government in Florida that has been subject of a lawsuit. All discuss the enforcement and procedures. Discuss inherent challenges in discussing this issue, the costs with layers of review and the Jacksonville Human Rights Commission. Discuss national movements and the potential for the COAB to become a battleground in the movements in support and opposition of LGBTQ rights. Public Comment: Dr. Tomaski -available for questions. Discuss how he had been sued and the effects. Discuss psychology of transgender individuals. Discuss jurisdictional maximum amounts of $15,000 Commissioner Hill -would like to define what is discriminatory. Wants to put some filters in place. Commissioner Mark -discuss assessing costs to the litigants. Maybe a filing fee. Discuss how to define discrimination. Commissioner Beckenbach -discuss issues for meeting schedule. Wants the citizenry to know in advance what is on the agenda. Commissioner Hill -doesn't want to lose an opportunity for the citizens to have a clear and transparent view of the work of the Commission. Compromise could be two workshops and two commission meetings every month. Minutes of the Public Meeting on June 27, 2014 Page 2 of 3 Commissioner Beckenbach wants to discuss next week. AGENDA ITEM# 1D AUGUST 11, 2014 Commissioner Mark not available next week and understands the City Manager's proposal. Likes the idea to keep things moving. Believes it will empower the citizens. Public Comment Chris Jorgensen -wants to use electronic media to track what is occurring on the meeting. Federal government is destroying the schools. These are emotional issues. Dr. Tomaski -wants to discuss meeting issues further. Does not want to see the Commission go backward. Discuss meeting July 7th to continue conversation. Adjourn 5:10pm Mark E. Beckenbach Mayor Pro Tern/Commissioner Minutes of the Public Meeting on June 27, 2014 Page 3 of 3 BUILDING DEPT. MONTHLY ACTIVITY REPORT COMPARISON REPORT ~~-' ~···~··· .. ···-"·~-· .. REPORT FOR THE MONTH JUNE 2014 ----------1 COMPARISION 2013-2014 PERMIT TYPE ________ 'NUMBER OF PERMITS 1 ____ _ T TOTAL INSPECTIONS YTD 2013 YTD 2014 YTD 2013 YTD 2014 YTD 2013 YTD 2014 -~~;LLE~FAMILY 8 ~----_ ~2 I I: 1,269,300:001 ---$4,722,0fo~~~l ~~~~~~~~~~NS I + I 2~7 $ -1,845,798:~0 j$--$3,~:--:-ti---:~t-'-~~c--~~c-::--~--;I---_-------------=--=J---=-=-=--~=- O_TH_ER_______ TOTA·L·--~.1---1f2138-49--I lli1 -~~=---[$-------4,584,764.00 $--~·~~~·~·00 _ •-1563 1 _L__ _ 7,699,862.00 l,-:---====$~1c-::2""':,4'="o5:!",5=-:o=7:--::.oc-::o'-i----=-25=-=6=-=-1--+----=-24-:-:6=-=-4---l PERMITS ISSUED FOR THE MONTH OF JUNE 2014 NO.PERMITS PERMIT COST CONSTRUCTION VALUE INSPECTIONS PERFORMED ~~~g~:~!~l ~~~~~~~~ ~ I i m -----~_j --••• ---1~· ~ • -: i ~~~!~~~Al m 1 _2_:_;8~-1-- RESIDENTIA(._ALTERATIONS • 15 I$ 2,14Ko_-ol. _$__ 31_!~4o2.oo .MECHANICAl.. ~----.. _-=-1 16 o-=--__ 1 ~g~~~=~:~:ffi~~~~NS ~ ~ -lt-1,983.~0 I I i 509,000.;0 IMISC:. TOTAL 512 ~~~~~~~c~Cc -· ------------3 3 4 --f :$ 2.~~~:~-~ j _ .. j l-----:Z'!.?§_()_.~O I Proje:t~ to Note:-New Duplex ~~~~~~:~~~ ~~!c _f 3 I $$ 4 ,~!~:~~ 1 . , ~ __ -----·--: IN one __ - PLUMBING ----------ii 2,652.00_, t : -----___ l ___ _ ROOFING ---------=1·----2 13 2 4 _____ -----_l. ! $!________ 2,664.00 ______ j_$~---__ -_ ___ 369,741 :QO !Projects to Note: New Dwelling > ~ ~~~~~~~~~oR --===---===[---cdin_ -~ --__ ~ ~ --=~~~:·=:oL--==-n -----------6 ---~~--1t---~~~-~~~t---ll---------_----==~~ ------·-~: --------------1 . $ 65.00 $m---------·----Projects to Note: New Commercial > ----=-~=-~~-----1t-_____ ~!~:~~ ~----lt--------,None ---,-,------+---------6 _____ $ ______ 460.00-~-------:-f----------30,125.00 1 E:XPIREDPERMIT¥-EESCOLLECTED -+---~~==~==-~-------------rf=-------~~::gl----___ ---=Jt __________ -329,~ ______ $98Z:QO I ______________ _ 248 I$ 26,527.00 , $ 1,644,256.00 City of Atlantic Beach AGENDA ITEM# 4A FINANCIAL REPORT AUGUST 11, 2014 June 2014 Cash Balances Prior Current Dollar Percent Fund(s) 05/31/14 06/30/14 Change Change General $ 7,958,175 $ 8,290,462 $ 332,287 4.18% Tree Replacement 12,321 12,321 0.00% Convention Development Tax 58,444 68,208 9,764 16.71% Local Option Gas Tax 188,015 210,639 22,624 12.03% Better Jax 1/2 Cent Sales Tax 420,702 442,182 21,480 5.11% Police Training, Forfeiture, Grants, etc. 111,851 126,054 14,203 12.70% Community Development Block & ARRA Grants (22, 185) 22,185 0.00% Debt Service 0.00% Capital Projects 2,941,524 2,974,792 33,268 1.13% Utility 5,012,161 5,207,051 194,890 3.89% Sanitation 727,770 729,966 2,196 0.30% Building Code Enforcement 233,394 237,725 4,330 1.86% Storm Water 1,826,781 1,804,837 (21 ,944) -1.20% Pension -Police 10,834 10,704 (130) -1.20% Pension -General 208,671 229,754 21,083 10.10% Total $ 19,688,458 $ 20,344,694 $ 656,236 3.33% Total Restricted Cash 7,638,919 Total Unrestricted Cash $12,705,775 Cash and Investments Annual Prior Current Dollar Percent Account Yield 05/31/14 06/30/14 Change Change Bank of America -Depository 0.20% $ 2,628,574 $ 3,182,410 $ 553,836 21.07% Guggenheim Floating Rate A 3.55% * 3,701,817 3,718,748 16,931 0.46% Hartford Floating Rate Bond A 3.54% * 2,541,977 2,555,607 13,630 0.54% lnvesco Floating Rate A 3.59% * 3,670,598 3,692,016 21,418 0.58% MainStay Short Term Duration High Yield A 2.97% * 2,570,273 2,592,133 21,860 0.85% First Trust Short Duration High Income A 3.26% * 2,025,642 2,036,773 11,131 0.55% Putnam Diversified Inc. 3.90% * 1,273,720 1,288,535 14,815 1.16% Alliance Limited Duration High Income A 2.30% * 1,270,578 1 ,273,192 2,614 0.21% MSSB Money Market/Cash 0.05% 1,778 1,778 0 0.00% SBA-Florida Prime 0.16% 351 352 1 0.28% Cash on Hand 3,150 3,150 0.00% Subtotal $ 19,688,458 $ 20,344,694 $ 656,236 3.33% Police Pension Investments $ 8,181,225 $ 8,262,431 $ 81,206 0.99% General Pension Investments 14,795,108 14,858,676 63,568 0.43% Subtotal $ 22,976,333 $ 23,121,107 $ 144,774 0.63% Total $ 42,664,791 $ 43,465,801 $ 801,010 1.88% * Denotes the 30 day SEC Yield Anualized City of Atlantic Beach FINANCIAL REPORT June 2014 AGENDA ITEM# 4A AUGUST 11, 2014 Revenues Annual YTD -75.00% YTD Dollar Fund I (Footnote) Estimate of Estimate Actual Variance General $ 10,931,117 $ 8,198,001 $ 9,550,407 $ 1,352,406 Convention Development Tax 80,300 60,219 77,182 16,963 Local Option Gas Tax 421,009 315,747 316,421 674 Better Jax 1/2 Ct Sales Tax 694,870 521,145 544,615 23,470 Police Training, Forfeiture & Grants, etc. 110,041 81,399 106,402 25,003 Grants 75,000 56,250 30,675 (25,575) Capital Projects 495,000 371,232 314,245 (56,987) Utility 8,611,203 6,458,292 6,295,980 (162,312) Sanitation 1,789,000 1,341,747 1,353,931 12,184 Building Code Enforcement 281,550 211,131 316,648 105,517 Storm Water 1,155,000 866,250 934,810 68,560 Pension -Police , 1,329,681 997,245 1,072,304 75,059 Pension -General Total 2,190,980 1,643,229 $ 28,164,751 $ 21,121,887 $ Analysis of Major Variances (Variances >$25,000 AND 10.00%) 1,881,838 238,609 22,795,458 $ 1,673,571 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: 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. The city receives grant monies from CDBG on a reimbursement basis; therefore there is a delay in revenue recognition during the fiscal year causing the negative variance in Grants. The city has not received expected grant monies for the Marsh Master Plan from the State of Florida nor the City of Jacksonville, as conceptual design discussions are still in progress; therefore there is a negative variance in Capital Projects. Building Code Enforcement permit activity is running above projected revenues, similar to surrounding jurisdictions and counties. The positive variance in the Pension Fund-General resulted from changes in market values of the investments of more than the anticipated amount and a $60,000 transfer from the ICMA to the defined benefit DROP, in accordance with ordinance changes to the Plan. Percent Variance 16.50% 28.17% 0.21% 4.50% 30.72% -45.47% -15.35% -2.51% 0.91% 49.98% 7.91% 7.53% 14.52% 7.92% City of Atlantic Beach FINANCIAL REPORT AGENDA ITEM# 4A June 2014 AUGUST 11, 2014 Expenses Annual YTD -75.00% YTD Dollar Percent Department I (Footnote) Estimate of Estimate Actual Variance Variance Governing Body $ 42,933 32,157 $ 28,750 $ 3,407 10.59% City Administration 2,647,720 1,985,358 1,819,262 166,096 8.37% General Government 640,119 480,033 483,421 (3,388) -0.71% Planning and Building 434,709 325,917 268,821 57,096 17.52% Public Safety 5,691,716 4,267,425 3,994,157 273,268 6.40% Recreation and Special Events 396,901 297,585 268,799 28,786 9.67% Public Works 7,874,942 5,904,995 4,101,606 1,803,389 30.54% Public Utilities 10,757,956 8,077,435 7,134,305 943,130 11.68% Pension -Police 751,628 563,679 560,136 3,543 0.63% Pension -General 852,850 639,585 693,720 {54,135} -8.46% Total $ 30,091,474 22,574,169 19,352,977 $3,221,192 14.27% Annual YTD -75.00% YTD Dollar Percent Resource Allocation Estimate of Estimate Actual Variance Variance Personnel Services $ 9,478,693 $ 7,124,136 $ 6,734,292 $ 389,844 5.47% Operating Expenses 10,730,913 8,031,926 7,032,837 999,089 12.44% Capital Outlay 5,767,260 4,332,322 2,018,388 2,313,934 53.41% Debt Service 2,448,768 1,836,441 2,310,344 (473,903) -25.81% Grants and Aids 36,820 27,603 32,895 (5,292) -19.17% Transfers Total $ 1,629,020 1,221,741 1,224,221 30,091,474 $ 22,574,169 $ 19,352,977 Analysis of Major Variances (Variances >$25,000 AND 10.00%) {2,480} $ 3,221,192 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: The positive variance in Planning and Building resulted from turnover and vacancy savings during the fiscal year, coupled with reorganization of positions. The variance in the Public Works Department was due to: project activity budgeted that has not been completed -see Project Activity schedule; 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. The positive variance in the Public Utilities Department is due to budgeted project activity that has not been started/completed or will be re-budgeted in a future fiscal year. -0.20% 14.27% City of Atlantic Beach FINANCIAL REPORT AGENDA ITEM# 4A June 2014 AUGUST 11, 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 I Enclose Under Portion of Lifeguard Bldg for Equipment Storage PS1402 6,000 3,634 2,366 c $ 46,000 $ 3,634 $ 42,366 Public Utilities: Reclaim Water Facility PU0805 1,352,269 825,045 527,224 I Replace the Water Main on Pine Street PU1304 53,199 53,199 c Replace 4" Water Main at Wonderwood and Finegan PU1305 58,852 58,852 c PT Repair at Lift Station C PU1306 22,397 22,397 I Repair 24" Effluent Force Main PU1308 5,260 5,260 0 c Repair 12" Force Main PU1309 3,363 3,363 0 c Water Plant #2-Rehab Elevated Tank PU1401 125,000 125,000 A Water Plant #2 Rehabilitation Ground Storage Tank PU1402 121,528 57,519 64,009 I Replace Water Maint-Sea Oats & Park Terrace PU1403 168,472 168,472 R lnline Valve Installation PU1404 50,000 50,000 I Replace Manhole on Saturiba PU1405 73,883 73,883 I Sewer Rehab Saturiba & Sea Oats PU1406 190,000 190,000 I Donner Subd Sewer Rehab-HMGP Grant PU1407 155,000 155,000 I Effluent Outfall Replacement PU1408 137,264 8,746 128,518 E Effluent Pump at WWTP PU1409 50,000 33,940 16,060 I Connect A1A at Mallard Cove PU1410 130,000 130,000 E Subtotal $ 2,696,487 $ 1,045,924 $ 1,650,563 Parks Maintenance: Marsh Master Plan Signs PM1301 625 625 c Rose Park Development PM1302 237,440 210,850 26,590 I Russell Park Tennis Courts 1-2 PM1401 100,000 100,000 s Bull Park Gazebo PM1402 X Donner Park Ball field Improvements PM1403 82,056 38,375 43,681 I Electric Gate at Dutton Island Park PM1404 8,000 8,000 I Marsh Project Pedestrian Path PW1408 150,000 22,054 127,946 E March Overlook & Kayak Launch PW1409 293,000 293,000 E Marsh Preserve Path Phase-! PW1410 42,000 41,628 372 c Subtotal $ 913,121 $ 313,532 $ 599,589 Public Works: Dutton Isle Road Sidewalks PW1301 58,207 57,545 662 I East Coast Drive Drainage Improvements PW1306 323,046 159,097 163,949 I Fountain PW1402 7,500 7,500 I Welcome Sign PW1403 15,200 6,974 8,226 I Robert Street Ditch PW1404 50,000 23,256 26,744 I Sidewalk and Curbs PW1405 25,000 497 24,503 I Salt Air/Sturdivant Drainage and Sidewalk lmprovmts PW1406 380,000 42,382 337,618 E Seminole Streetscape PW1407 498,000 54 497,946 E Canopy Replacement on PW Building PW1413 75,000 75,000 I Subtotal $ 1,431,953 $ 289,805 $ 1 '142, 148 Total $ 5,087,561 $ 1,652,895 $ 3,434,666 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 AGENDA ITEM: SUBMITTED BY: DATE: CITY OF A TLAN'l'IC BEACH CITY COMMISSION MEETING STAFF REPORT AGE NDA ITEM// 4B AUGUST I l, 20 1'1 Extens ion of Annua l Janitorial Serv ice s for City Facili ties-Bid No. 12 13-06 l" :yc.--Yvonne Ca lv erl ey, Exec utiv e Assistant to t he City Manage ~ July 1, 20 14 STRATEGIC PLAN LINK: N/ A BACKGROUND: The current contract for janitorial services expires on September 30, 20 14. Over th e past year, Supreme Jarutorial Service has prov ided the City with janitorial services for all City facilities. They have demon strated great custom er service and have done a professiona l job maintaining the c lea nlin ess of t he faci li ties. The C ity has spoken with the CEO/Owner of Supreme Janitorial Serv ice regard ing a one-year extensio n and they have agreed to rene w the current contract at t he same price. Per Bid No. 1213-06, th e City has the op ti on of extending the CtuT ent co ntract fo r three (3) addit io na l one-year periods and this proposed extens ion will be the fir st. BUDGET: No additiona l cost. The c unent yearly amount paid to Supre me Janitorial Setvice is $5 0,796.00. RECOMMENDATION: Recommend the City Co mmi ssion ex ten d the janitorial contract to Supreme Janitorial Service fo r one (I) additiona l yea r to ex pire on Se ptember 30 , 201 5. ATTACHMENT: 1) Letter of acceptance dated June 26,2014 from Supreme Janitoria l Service. CITY MANAGER: ~ ~ ~~ June 25, 2014 Sue Butts, CEO Owner Supreme Janitorial Service 11323 Distribution Avenue E. Jacksonville, FL 32256 Dear Ms. Butts, AGENDA ITEM# 4B AUGUST 11, 2014 CITY OF ATLANTH..: HEAL:H 800 SEMINOLE ROAD ATLANTIC BEACH, FLORIDA 32233-5455 TELEPHONE: (904) 247-5800 FAX: (904) 247-5805 SUNCOM: 852-5800 www.coab.us As you are aware, the contract with the City of Atlantic Beach for janitorial services expires on September 30,2014. We would like to extend the contract with Supreme Janitorial Company for another year at current prices, if this is acceptable to your company. If acceptable, please sign below and return this letter to me before July 16, 2014, so that I can prepare a staff report for the City Commission to approve the extension. We look forward to continuing to work with Supreme Janitorial Company for janitorial services to our City facilities. Sincerely, Supreme Janitorial Service agrees to extend the contract with the City of Atlantic Beach for one year at the current prices commencing October 1, 2014. Sue Butts CEO Owner Supreme Janitorial Service Date CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: List of property to be dec lared surplu s S UBMITTED BY: Ne lso n VanLiere, City Man age r DATE: Jul y 18 ,2014 AGENDA ITI!M H 4C A UGUST II , 20 14 BACKGROUND: Ove r tim e, the City accumu late s various propetties th at lose th e ir usefu lness due to dete riorati on or obsolescence. Only it ems de emed truly of no use to the City are on this li st. T hese assets are ei th er not operational , ha ve bee n deemed no longer cost-e ffective to repair, or were received through forfeitur e. Department Description Mileage SerlaiNIN# Forfeiture -PO 2004 Chevrolet Impala 162 041 2G1VVF52E849247608 200 1 BMW Z3, Forfeiture -PD Convertible 80,568 WBACN33431 LM01909 Video Tra nsmitter Police Dept System-Hi 8 Recorder N/A 16080 16008,08919 Wireless Waistband Pol ice Dept V ideo Transmitter N/A 21275 BUDGET: There is no bud get for thi s ac tion RECOMMENDATION: Declare thi s li st of propert y as surplus so that the items on it may be di s po sed of in the most beneficial way to the City. ATTACHMENTS: None REVIEWED BYCITY MANAGER: :/tt/<McA .. ·. AGENDA ITEM: DATE: SUBMITTED BY: BACKGROUND: STAFF REPORT City of Atlantic Beach Commission Meeting Justice Assistance Grant July 21, 2014 Michael D. Classef.2hl'ef of Police AGENDA ITEM# 4D AUGUST II, 2014 Justice Assistance Grants (JAG) are grants that have been established by the Federal Government and administered by the State of Florida. Atlantic Beach has benefitted from JAG grants for many years. The allocations for this grant must be approved by at least half of the law enforcement agencies in Duval County. The total amount of the award for Duval County is $325,172 whereas last year's award was $346,597. There have been early discussions; however a final agreement has not yet been approved. Last year Atlantic Beach received $81,205 in funding, but this year's county award is less than last year's. Final negotiations with the other law enforcement agencies will be concluded in the near future and AB' s final award amount should be available for the August 11th Commission meeting. This grant can be used to enhance law enforcement by supplementing existing nonfederal funds for program activities, which may include the purchase law enforcement equipment or providing funding to retain law enforcement positions that have been federally funded. This grant does not require any matching funds from the City. Due to budget shortfalls over the past several years, these funds have been utilized to cover the majority of the salary expense for one (1) Crime Suppression Detective and one (1) Community Oriented Policing (COPs) Officer. Both of these positions have played an integral part in the city's Mayport Corridor initiative and continue to do so. Staff recommends using the JAG funding for these positions. Many times grants such as these are utilized to purchase equipment; however, I suggest that the most productive use ofthese funds would be to continue funding for our COPs position and the CSU Detective to work on the projects which the City has identified as high priorities. Subsequent to a final agreement being reached, the next step of the process for this grant is for the Police Department to apply for the funding on-line and to submit hard copies of the applications with original signatures. For this process, the City needs to authorize the Mayor to sign the related paperwork. The City also needs to authorize Chief Classey to submit the applications on-line and have the authorization to electronically sign the on- line applications on behalf of the Mayor. The deadline for the on line applications is August 15, 2014 and the hard copy submission is due no later than August 22, 2014. 1\UENIJA ITEM i14D 1\lJGUST II , 20 14 BUDGET: This actio n will prov ide grant fu nding to be add ed to t he 20 14-15 Patr o l an d CSU Detect ive sa lary acco unts to partia ll y f und one ( l) CO Ps officer po s ition and o ne (I) CS U Detect iv e positi on. RECOMMENDATIONS: To a uth orize the Mayor to s ign t he related paperwork for the app li cati o ns and the s ub seq uent paperwork related to the JAG grant. In additi on, to auth o ri ze Mich ae l D. Cla ssey to subm it the app licat ions on J in e and have th e auth o riza ti o n to e lectronica lly s ign th e o n-lin e ap pli cations on behal f of th e Mayo r and the City. ATTACHMENTS: No ne REV IE WED BYCITY MANAGER: --:?f~ k C ITY OF ATLANTIC BEACH C ITY COMM ISS ION MEETING STAFF REJ>ORT AGENDA ITI~M # 611 AUCUST 11,20 14 AGENDA ITEM: RESOLUTION NO. 14-07 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA; SUPPLEMENTING ORDINANCE NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A NOT EXCEEDING $14,000,000 UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014; AUTHORIZING AWARD OF THE BONDS TO TD BANK, N.A. FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS; AND PROVIDING AN EFFECTIVE DATE. SUBMITTED BY: Ne lson VanLiere, City Manager DATE: Jul y 18,20 14 BACKGROUND : The City's f inancial Adv isor, Dunl ap and As soc iates, has determ ined it is an a d va nt a~co u s time to re fu nd a ll or t he City 's outsta nd ing deb t, oth er th an the two S tate Revolvin g h111J (SRP) loa ns. T he y anti c ip ate that th e Cit y w ill achieve debt s~rv i ce sav ings of approx im ately $1,4 15,000 thr ough refundin g the current deb t and obta inin g new debt at an inte rest rate around 2.33%. Thi s is a 9.5% sav ing s to th e Cit y and lowe rs our debt service by a bout $145 ,000 per yea r thr oug h 10/01/2025. The fin a l int erest rate will be set three (3) bu sin ess days pri or to the antt cipated c los ing date of August I 2, 20 14. The refund ed de bt will be lega ll y defcased up on th e iss ua nce of the new in debted ness. /\n esc row account wi ll be crea ted wit h We ll s Fargo , acting as the City's Esc row Agent, to ho ld th e proceeds of the n ew ind e bted ness. The proceeds wi ll be in ves ted unti l the da te th e refund ed bonds arc red eemed. The City may o nl y in cm deb t by ordin ance per the City 's Charter. Subject and pursua nt to the prov isions of the su pp le mentin g Ordinan ce No. J 5-14-I 4 and thi s re solution , the C ity is a ut ho ri zed to in c ur a Loan and to iss ue the Bo nd i n ev idence thereof, up on stt bstantia lly the term s of th e Lo an Ag reeme nt atta ched hereto as Ex hibit C. All of th e terms and covena nt !:i co nt ain ed in th e Lo an Ag reement arc incorpo rated here in by referen ce. The Bo nd Ordinan ce and th e Loan Agreement, upon the fundi ng of th e Loa n and the iss uance of the Bond, sha ll con stit ut e a co ntract between the City and the Le nd er. RECOMMENDATION: A TT ACJ-1 M ENTS: Approve Re so luti on No . I 4-07 and au th ori ze the Mayor and Ci ty Man ager to sign all re lated docume nts where approp riate for each to s ign. Reso luti on No. 14-0 7 and Ex hibit s . REVIEWED BY CITY MANAG E R : ~t/'--2_~ AGENDA ITEM # 6A AUGUST 11, 2014 RESOLUTION NO. 14-07 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA; SUPPLEMENTING ORDINANCE NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A NOT EXCEEDING $14,000,000 UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014; AUTHORIZING AWARD OF THE BONDS TO TD BANK, N.A. FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS; AND PROVIDING AN EFFECTIVE DATE. DRAFT 7/16/14 WHEREAS, the City Commission of the City of Atlantic Beach, Florida (the "City") has determined to refinance certain Refunded Bonds of the City and has enacted Ordinance No. 15-14-14 (the "Ordinance") for such purpose; and; WHEREAS, the City has received competitive proposals from area financial institutions and has received a recommendation of its financial advisor to accept the proposal of TD Bank, N.A. (the "Bank") as in the best interest of the City; NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA: Section 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted pursuant to the provisions of the Act, as defined in the Loan Agreement, and is supplemental to the Ordinance. Section 2. DEFINITIONS. All terms m this resolution shall have the meanings as defined in the Loan Agreement. Section 3. SALE OF BOND. (A) Findings. The City reaffirms its prior findings that in accordance with the provisions of Part III, Chapter 218, Florida Statutes, a negotiated sale of the Bond is in the best interest of the City because of the flexibility available in structuring the Bond and its terms. (B) The City has solicited proposals for purchase of the Bond from area commercial banks and has determined that the proposal of the Bank, set forth by letter dated June 9, 2014 and attached hereto as Exhibit B, is the best proposal. Following evaluation of the responses received and negotiation with the offeror of the proposal most advantageous to the City, the City hereby authorizes and sells the Bond to the Bank, upon the marketing terms of the Bond, including but not limited to interest rate, interest payment dates, maturity dates and amounts, and terms of prepayment, as set forth in the revised form of Loan Agreement attached hereto as Exhibit C, with such modifications to the terms of the Loan Agreement as are set forth therein. The Bond shall be issued in substantially the form set forth in Exhibit A to the Loan Agreement. 00362197-3 AGENDA ITEM# 6A AUGUST 11, 2014 Section 4. NECESSARY ACTION. The Mayor, the City Manager, the City Clerk, the City Attorney and Bond Counsel are authorized and directed to execute and deliver the Loan Agreement and the Bond substantially in the form attached as Exhibit A to the Loan Agreement, upon payment of the purchase price without further authority from the City Commission. The Mayor, City Manager, City Clerk, City Attorney and Bond Counsel are authorized and directed to execute and deliver the Escrow Deposit Agreement in substantially the form attached hereto as Exhibit E. Said officials are also designated as the agents of the City in connection with the issuance and delivery of the Bond and are authorized and empowered to take all actions and steps to execute and deliver any and all instruments, documents or contracts on behalf of the City which are necessary or desirable in connection with the execution and delivery of the Loan Agreement, the Escrow Deposit Agreement and the Bond, and which are not inconsistent with the terms and provisions of the Ordinance, this Resolution the Loan Agreement, and the Escrow Deposit Agreement. Section 5. EFFECTIVE DATE. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Commission of the City of Atlantic Beach, Florida at a regular meeting duly called and held this 11th day of August, 2014. Approved as to form, sufficiency And correctness: By: Richard C. Komando, Esq. Kopelousos, Bradley & Garrison 1279 Kingsley Avenue, Suite 118 Orange Park, FL 32073-4604 City Attorney ATTEST: By: ____________________________ __ 00362197-3 Donna L. Bartle City Clerk 2 CITY OF ATLANTIC BEACH, FLORIDA By: ________________________ __ Carolyn Woods Mayor 00362197-3 Exhibit A -Timetable EXHIBITS TO RESOLUTION Exhibit B-June 9, 2014 Letter ofTD Bank, N.A. Exhibit C-Loan Agreement Exhibit D-Bond Debt Service and Escrow Requirements Exhibit E-Escrow Deposit Agreement AGENDA ITEM# 6A AUGUST 11, 2014 Exhibit A Timetable 00362197-3 AGENDA ITEM# 6A AUGUST 11, 2014 City of Atlantic Beach 7/22/14 AGENDA ITEM # 6A AUGUST 11, 2014 $14,000,000* Utilities System Revenue Refunding Bond, Series 2014 Date Event 05/02/14 Circulate 1st Draft Bank RFP to Working Group 05/07/14 1st Draft Bank RFP Comments Due 05/09/14 Circulate 2nd Draft Bank RFP to Working Group 05/15/14 2nd Draft Bank RFP Comments Due 05/23/14 Distribute Bank RFP 06/09/14 Bank Responses Due 06/10/14 Summary of Bank Responses and Recommendation 06/13/14 Items Due for Agenda Package for Meeting on July 14, 2014 07/14/14 City Commission Meeting-First Reading of Bond Ordinance 07/18/14 Items due for Agenda Package for Meeting on August 11, 2014 08/11/14 City Commission Meeting-Second Reading of Bond Ordinance Pre-Closing 08/12/14 Closing Note: City Commission meets the second Monday of each month *Preliminary Legend Responsible Party FA ALL FA City/BC FA City/FA FA ALL City/BC/FA ALL ALL ALL ALL City -City of Atlantic Beach, Florida BC-Bond Counsel-Lewis, Longman & Walker, PA FA-Financial Advisor-Dunlap & Associates, Inc. Bank-TO Bank Exhibit B June 9, 2014 Letter ofTD Bank, N.A. · 00362197-3 AGENDA ITEM # 6A AUGUST 11, 2014 Bank June 9, 2014 Ms. Jeri Benjamin Deputy Finance Director City of Atlantic Beach, FL 800 Seminole Rd Atlantic Beach, FL 32233 RE: Non Bank Qualified, Tax Exempt Bank Term Loan Dear Ms. Benjamin: TD Bank, N.A, 9715 Gate Parkway N. Jacksonville, FL 32246 AGENDA ITEM # 6A AUGUST 11,2014 In response to your request to refund the City's Series 2004 Bonds, Series 2010A-1 Bonds, and Series 2010B Bonds we are pleased to provide you the following response to your request for proposals. The Bank's Loan Proposal is subject to formal credit approval and written acceptance by Borrower prior to 3:00 pm eastern standard time on August 12, 2014 and is contingent upon a Loan Closing with mutually acceptable documents. The structure of the proposed Credit Accommodation(s) is outlined in the attached term sheet(s) which provides a statement of suggested terms, but under no circumstance shall" such statement be construed as a complete summarization of terms necessary for consummation of the proposed Credit Accommodation. PLEASE NOTE THIS PROPOSAL IS SUBJECT TO FORMAL CREDIT REVIEW AND UNDERWRITING IN ACCORDANCE WITH THE BANK'S INTERNAL POLICY AND NOTHING HEREIN SHALL CONSTITUTE A BINDING COMMITMENT TO LEND. Further, we expressly advise you that TO Bank, N.A. (the "Bank") has not approved the Credit Accommodations. The Bank shall not be liable to the Company or any other person for any losses, damages or consequential damages which may result from the Company's reliance upon this proposal letter or the proposed Credit Accommodations, the proposed term sheet(s) or any transaction contemplated hereby. This letter is delivered to you on the condition that its existence and its contents will not be disclosed without our prior written approval, except (i) as may be required to be disclosed in any legal proceeding or as may otherwise be required by law and on a confidential and "need to know" basis, to your directors, officers, employees, advisors and agents. We appreciate this opportunity and are delighted to provide this Loan Proposal. We look forward to working with you to successfully complete this transaction. My contact information is noted above. Very truly yours, TO BANK, N.A. By~ Coley nes Vice President 1 AGENDA ITEM# 6A AUGUST 11, 2014 Exhibit A to June 9,,2014 Letter of TD Bank, N.A. TD Bank, N.A. ("BANK") TERMS AND CONDITIONS OF CREDIT ACCOMMODATION Dated 6/9/2014 ("Loan") THIS IS-A STATEMENT OF TERMS AND CONDITIONS AND NOT A COMMITMENT TO LEND, ALL CREDIT ACCOMMODATIONS ARE SUBJECT TO FORMAL CREDIT UNDERWRITING AND APPROVAL. 1. Proposed Bank Loans' Terms & Structure: Borrower: Facility Amount: Facility Type: Purpose of Facility: Maturity Date: Interest Rate: City of Atlantic Beach, FL Up To $14,000,000 Non-Bank Qualified Tax-Exempt Bank Term Loan To p1rovide available funds of up to $14,000,000, as needed, to the City to refund all senior debt currently outstanding under the City's Series 2004 Bonds, Series 2010A-1 Bonds, and Series 2010B Bonds. October 1, 2025. ·Non-Bank Qualified Tax Exempt Indicative Fixed Rate as of June 9, 2014. Option 1: The Non-Bank Qualified, Tax Exempt loan shall bear interest at an indicative fixed per annum rate equal to 2.33% on the basis of a 30-day month and a 360-day year. The actual interest rate shall be set three business days prior to Closing using the greater of the formula below: 70% of the 10 year LIB OR swap rate plus 43bps. Option 2: The Non-Bank Qualified, Tax Exempt loan shlall bear interest at an indicative fixed per annum rate equal to 2.56% on the basis of a 30-day month and a 360-day year. The actual interest rate shall be set three business days prior to Closing using the greater of the formula below: 70% of the 10 year LIBOR swap rate plus 66bps. Repayment Terms: Default Rate of Interest: Late Charges: Prepayment Premium: AGENDA ITEM# 6A AUGUST 11, 2014 The Bank will also make available the option to lock-in the above quoted loan rate for the Borrower through the expected transaction closing, which is subject to the Borrower executing the Bank's Rate Lock Agreement. A premium of 12 basis points will be added to the quoted rate in order to hold the stated rate through the expected closing date of Aug. 18, 2014. Principal and Interest-Interest will be paid semi-annually beginning on April 1, 2015 through October 1, 2025: Principal will be paid annually beginning October 1, 2015 through October 1, 2025. The "default rate of interest" shall be six (6) percentage points in excess of the rate of interest charged prior to the occurrence of the event of default. If any payment due the Bank is more than fifteen (15) days overdue, a late charge of six percent (6%) of the overdue payment shall be assessed. Option 1: At the time of any full or partial prepayment, a fee equal. to the greater of (i) 1.00% of the principal balance being prepaid multiplied by the "Remaining Term," as hereinafter defined, in years or (ii) a "Yield Maintenance Fee" in an amount computed as follows: The current cost of funds, specifically the bond equivalent yield for United States Treasury securities (bills on a discounted basis shall be converted to a bond equivalent yield) with a maturity date closest to the "Remaining Term", shall be subtracted from the Note rate, or default rate if applicable. If the .result is zero or a negative number, there shall be no Yield Maintenance Fee due and payable. If the result is a positive number, then the resulting percentage shall be multiplied by the scheduled outstanding principal balance for each remaining monthly period of the "Remaining Term." Each resulting amount shall be divided by 360 and multiplied by the number of days in the monthly period. Said amounts shall be reduced to present values calculated by using the above reference current costs of funds divided by 12. The resulting sum of present values shall be the yield maintenance fee due to the Bank upon prepayment of the principal of the loan plus any accrued interest due as of the prepayment date. "Remaining Term" as used herein shall mean the shorter of (i) the remaining term of this Note, or (ii) the remaining ·term of the then current fixed interest rate period. Option 2: No prepayment premium. 2 2. Fees and Expenses: No Bank Fee-Waived. AGENDA ITEM# 6A AUGUST 11, 2014 The Borrower is responsible for Bank Counsel Fees for the review of the loan documentation which will be prepared by the Borrower's Counsel. Bank Counsel Fees shall not to exceed 6,000. 3. Security: Payment of the Series 2014 Bond shall be secured by a lien upon and pledge of the Net Revenues of the combined and consolidated water and sewer system (the "System"), the System Development Charges (such System Development Charges or impact fees are defined as Capital Facilities Charges in the various ordinances of the City authorizing the issuance of bonds), the moneys on deposit in the funds and accounts created by the Ordinance, the Investment Earnings and the Special Assessments, all as defined in the Ordinance. 4. Legal Opinions: Prior to closing, there shall be delivered to the Bank an opinion of Bond Counsel acceptable to the Bank covering matters customary for a transaction of this type and nature and which shall, without limitation, opine that: (1) the Borrower is duly formed; (2) all loan documents have been validly authorized and executed by and on behalf of the Borrower, if any; (3) all loan documents are valid, binding,. enforceable in accordance with their terms and do not violate any legal requirements, including without limitation, organizational documents, laws and material agreements; and (4) Facility is Non Bank Qualified and Tax Exempt. 5. Financial Reporting: The Borrower shall furnish the following financial reports: Type of Reports Financial Statements Audited Approved Budget Covenant Compliance Certificate · Frequency Annually Annually· Annually 6. Rate Covenant I Additional Bonds Test: Rate Covenant: Due Date 270 days after end of fiscal year. 60 days after completion and approval 270 days after completion of fiscal year. Net Revenues to provide a minimum of a) 110% coverage of the annual debt service requirement for all funded debt paid in the year tested and b) 100% of the reserve account & the renewal and replacement fund. To be tested annually. 3 Additional Bonds: AGENDA ITEM # 6A AUGUST 11, 2014 Prior to the issuance of any parity bonds Net Revenues to provide a minimum a) 110% coverage of the maximum annual debt service requirement on all debt and b) 100% of the reserve account & the renewal and replacement fund inclusive of consideration for the new debt. Net Revenues to be tested off the most recent fiscal year exclusive of"transfers from the Rate Stabilization fund: 7. Other Conditions: a) The Loan will be issued on parity and cross defaulted as applicable with the other similarly pledged revenue b) Standard gross up language with respect to changes in Corporate Tax Rate or Tax Status of the loan. c) No Material Adverse Change to the Borrower d) Periodic loan payments shall be settled via auto debit e) The implementation of certain terms, conditions, covenants or other non-material changes to the proposed Credit Accommodation required as part of the Bank's formal credit approval shall be deemed an approval in substantially the form outlined in this proposed Credit Accommodation. · f) All legal matters and documentation to be executed in connection with the contemplated proposed Credit Accommodation shall be satisfactory in form and substance to the Bank and counsel to the Bank. g) The Bank shall not be required to enter into the proposed Credit Accommodation until the completion of all due diligence inquiries, receipt of approvals from all requisite parties and the execution and receipt of all necessary documentation reasonably acceptable to the Bank and its counsel. The Bank complies with the US Patriot Act of 2001 (the "Act"), including, but not limited to; those sections relating to customer identification, monitoring and reporting of suspicious activities, and the prevention of money laundering. This Act mandates that we verify certain information about the borrower and any guarantor while processing the Credit Accommodation request. Furthermore, certain assumptions are made for this proposal which, if altered, could affect the overall credit approval and or the terms of the proposed Credit Accommodation h) All Standard terms and conditions for a loan of this type including but not limited to acceleration as a remedy for an event of default. 4 City of Atlantic Beach, Florida Utilities System Revenue Refunding Bond, Series 2014 APPENDIX REQUEST FOR PROPOSAL $14,000,000* CITY OF ATLANTIC BEACH, FLORIDA AGENDA ITEM# 6A AUGUST 11,2014 UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014 1. Name & Address of Proposer: _--_(,___,D""""--------"\?: __ )!J""':.x._"-Q-f-J}{~-.------- 9:t iS (~Ate, t5ct-r kw&!4 f\:J. (.11r ~<,en111\le ) EL 5-:Lz.0L((4· .2. Contact Person of Proposer: Title: Phone#: Fax#: 3. Expenses to be paid by City: 4. Interest Rate: D\>~ I ~C). B). ~o ;Q"' J.Sia · () t' ;Q piu~ L.bbps Formula: Opb~o !·"' -:tOl. 0~ lOW?.-H~IS" l2irl¥>'-'f0. ~-l-fe pb~ 43bp5.. f'+1 00 v v ~ . ' ~ (\ j . j C n I \;;tb S 'R Interest Rate Held Until: <J:>±t\'Ji -~ h 1.'1 lc~ Q..gAe l..u!·-kX. 8 ) ~ 1<..{ ·or <\orc~ · P ' Breakage Fee Penalty for fmward rates, if any: ____!t\J~A::L_ __ _ Signature of Proposer Date I I *Estimated Not-to-Exceed Amount 10 City of Atlantic Beach, Florida Utilities System Revenue Refunding Bond, Series 2014 SWORN STATEMENT UNDER SECTION 287.133 (3) (A) FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES AGENDA ITEM# 6A AUGUST 11, 2014 This form must be signed in the presence of a Notary Public or other Officer authorized to administer · oaths. (P{ij}name of the Public Entity.) by: C.O\e.u\ ~G ne.) (Print indi.Ji.&ual's name and title.) for: l 0 B(M) k. (Print name of Entity submitting sworn statement.) whose business address is: and, if applicable, its Federal Employer Identification Number (FEIN) is bto~+o it.! Ba-J (If the Entity has no FEIN, please include the Social Security Number of the individual signing this sworn statement): 2. I understand that a "public entity crime" as defined in Paragraph 287.133 (1) (g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133 (1) (b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of recor-d relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an "affiliate" as defined in Paragraph 287.133 (1) (a), Florida Statutes, means: a) A predecessor or successor of a person convicted of a public entity crime; or, b) An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. 11 City of Atlantic Beach, Florida Utilities System Revenue Refunding Bond, Series 2014 AGENDA ITEM # 6A AUGUST 11, 2014 5. I understand that a "person" as defined in Paragraph 287.133 (1) (e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6. Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. (Please indicate which statement applies.) / Neither the entity submitting this sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. --,-----The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. ___ The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequ_ent proceeding before a Hearing Officer of the State of Florida, Division of Administrative Hearings, and the Final Order entered by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. (Please attach a copy of the final order.) I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH ONE (1) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDAR YEAR IN WHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES, FOR CATEGORY TWO OF ANY CHANGE IN THE INF N CONTAINED IN THIS FORM. STATE OF r1 Oc,'cJ e-. COUNTY OF _b_,J~tA'-'-'_v:__:_et::.ol ___ ---,-_______ _ PERSONALLY APPEARED BEFORE ME, the undersigned authority, Oo I e h J o nc-S first being sworn by me, affixed his/her signature in (Name of individual signing.) the space provided above on this _Y_:_ __ day of __ J_V._f'l_~ ____ , 2014 NOTARY PUBLIC l\-,ereS.<. A· Wh,Tc. My commission expires: A\.A1.1~, J D l {., 12 who, after Exhibit C Loan Agreement 00362197-3 AGENDA ITEM# 6A AUGUST 11, 2014 LOAN AGREEMENT DRAFT JULY 16,2014 AGENDA ITEM# 6A AUGUST 11, 2014 This LOAN AGREEMENT is made and entered into as of August 12, 2014, and is by and between the CITY OF ATLANTIC BEACH, FLORIDA, a municipal corporation created and existing under the laws of the State of Florida, and its successors and assigns (the "Issuer"), and TD BANK, N.A., a national banking association, and its successors and assigns, as holder(s) of the hereinafter defined Note (the "Lender"). The parties hereto, intending to be legally bound hereby and in consideration of the mutual covenants hereinafter contained, DO HEREBY AGREE as follows: ARTICLE I DEFINITION OF TERMS Section 1.01 Definitions. The words and terms used in capitalized form in this Agreement shall have the meanings as set forth in the recitals above and the following words and terms as used in this Agreement shall have the following meanings: "Act" means Chapter 166, Florida Statutes, the Ordinance, and other applicable provisions of law. "Agreement" means this Agreement and any and all modifications, alterations, amendments and supplements hereto made in accordance with the provisions hereof. "Bond" means the Issuer's Utilities System Revenue Refunding Bond, Series 2014, issuable in the denomination of a single Bond of$ principal amount in the form attached hereto as Exhibit A. "Bond Counsel" means any attorney at law or firm of attorneys retained by the Issuer, of nationally recognized experience in matters pertaining to the validity of, and exclusion from gross income for federal income tax purposes of interest on, the obligations of states and their political subdivisions. "Bond Year" means the annual period beginning on the first day of October of each year and ending on the last day of the succeeding September. "Business Day" means any day except any Saturday or Sunday or day on which the Principal Office of the Lender is lawfully closed. "City Manager" means the City Manager of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and applicable corresponding provisions of any future laws of the United States of America relating to federal income taxation, and except as otherwise provided herein or required by the context thereof, includes interpretations thereof contained or set forth in the applicable regulations of the 00352137-2 AGENDA ITEM# 6A AUGUST 11, 2014 Department of Treasury (including applicable final regulations, temporary regulations and proposed regulations), the applicable rulings of the Internal Reven·ue Service (including published Revenue Rulings and private letter rulings), and applicable court rulings. "Escrow Agent" means Wells Fargo Bank, N.A., and its successors and assigns. "Escrow Deposit Agreement" means the Escrow Deposit Agreement dated as of August 12, 2014, between the Issuer and the Escrow Agent related to the refunding of the Refunded Bonds. "Event of Default" means an event of default specified in Article VI of this Agreement. "Fiscal Year" means the period commencing on October 1 of each year and ending on the succeeding September 30, or such other period of twelve consecutive months as may hereafter be designated as the fiscal year of the Issuer by general law. "Loan" means the loan by the Lender to the Issuer contemplated hereby. "Loan Amount" means$ ________ _ "Loan Documents" means this Agreement, the Bond and the Escrow Deposit Agreement. "Mayor" means the Mayor or, in his or her absence or inability to perform, the Mayor Pro Tern of the Issuer. "Notice Address" means, As to the Issuer: As to the Lender: Deputy Finance Director City of Atlantic Beach, FL 860 Seminole Road Atlantic Beach, FL 32233 Email address: jbenjamin@coab.us TD Bank, N.A. 9715 Gate Parkway North Jacksonville, FL 32246 Attn: Coley Jones Email address: coley.jones@td.com or to such other address (or email address for electronic communications) as either party may have specified in writing to the other using the procedures specified in Section 7.06. "Ordinance" means, collectively, Ordinance No. 15-95-7 enacted by the City Commission of the Issuer on November 13, 1995, as supplemented by Ordinance No. 15-96-8, enacted on March 11, 1996, and further supplemented by Ordinance No. 15-14-14, enacted on August 11, 00352137-2 2 AGENDA ITEM# 6A AUGUST 11, 2014 2014, and any ordinance and resolution amendatory thereof or supplemental thereto. "Person" means an individual, corporation, partnership, association, joint stock company, joint venture, trust, limited liability company, unincorporated organization or other judicial entity. "Pledged Revenues" means (a) the Net Revenues; (b) the Capital Facilities Charges; (c) the moneys on deposit in the Funds and Accounts; (d) the Investment Earnings, and (e) the Special Assessments, all as defined in the Ordinance. "Principal Office" means, with respect to the Lender, the office located at 9715 Gate Parkway North, Jacksonville, Florida 32246, or such other office as the Lender may designate to the Issuer in writing. "Refunded Bonds" means the Issuer's outstanding Utilities System Revenue Refunding Bonds, Series 2004, Utilities System Revenue Bonds, Series 2010A-1, and Utilities System Revenue Refunding Bonds, Series 2010B. "Sinking Fund" means the Utilities System Revenue Refunding Bond, Series 2014, Sinking Fund established by the Ordinance from which the Issuer shall make payments of the principal of, interest on and any redemption or prepayment premiums with respect to the Bond. "State" means the State of Florida. Section 1.02 Titles and Headings. The titles and headings of the articles and sections of this Agreement have been inserted for convenience of reference only and are not to be considered a part hereof, shall not in any way modify or restrict any of the terms and provisions hereof, and shall not be considered or given any effect in construing this Agreement or any provision hereof or in ascertaining intent, if any question of intent should arise. ARTICLE II REPRESENTATIONS OF ISSUER The Issuer represents and warrants to the Lender, which representations and warranties shall be deemed made on the date hereof, that: Section 2.01 Powers of Issuer. The Issuer is a municipal corporation, duly organized and validly existing under the laws of the State. The Issuer has the power under the Act to adopt the Ordinance, to borrow the Loan Amount provided for in this Agreement, to execute and deliver the Loan Documents, to secure this Agreement and the Bond in the manner contemplated hereby and to perform and observe all the terms and conditions of the Loan Documents on its part to be performed and observed and to carry out and consummate all other transactions contemplated hereby. The Issuer may lawfully borrow funds hereunder in order to provide funds to refund the Refunded Bonds and to pay costs of issuance of the Loan and the Bond. 00352137-2 3 AGENDA ITEM# 6A AUGUST 11, 2014 Section 2.02 Authorization of Loan. The Issuer had, has, or will have on the date of the Bond and at all relevant times, full legal right, power and authority to execute and deliver the Loan Documents, to issue the Bond, and to carry out and consummate all other transactions contemplated hereby, and the Issuer has complied and will comply with all provisions of applicable law in all material matters relating to such transactions. The Issuer has duly authorized the borrowing of the Loan Amount provided for in this Agreement, the execution and delivery of this Agreement, and the issuance and delivery of the Bond to the Lender, and to that end the Issuer warrants that it wilt subject to the terms hereof and of the Bond, take all action and do all things which it is authorized by law to take and to do in order to fulfill all covenants on its part to be performed and to provide for and to assure payment of the Bond. The Bond has been duly authorized, executed, issued and delivered to the Lender and constitutes the legat valid and binding obligation of the Issuer enforceable in accordance with the terms thereof and the terms hereof, and is entitled to the benefits and security of this Agreement, subject to the provisions of the bankruptcy laws of the United States of America and to other applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors' rights, heretofore or hereinafter enacted, to the extent constitutionally applicable, and provided that its enforcement may also be subject to equitable principles that may affect remedies or other equitable relief, or to the exercise of judicial discretion in appropriate cases. All approvals, consents, and orders of and filings with any governmental authority or agency which would constitute a condition precedent to the issuance of the Bond or the execution and delivery of or the performance by the Issuer of its obligations under this Agreement and the Bond have been obtained or made and any consents, approvals, and orde(s to be received or filings so made are in full force and effect. NOTWITHSTANDING THE FOREGOING, HOWEVER, OR ANYTHING ELSE HEREIN OR IN THE BOND TO THE CONTRARY, NEITHER THIS AGREEMENT NOR THE BOND SHALL CONSTITUTE A GENERAL OBLIGATION OR A PLEDGE OF THE FAITH AND CREDIT OF THE ISSUER, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL, LEGISLATIVE OR CHARTER PROVISION OR LIMITATION, BUT SHALL BE PAYABLE SOLELY FROM THE PLEDGED REVENUES IN THE MANNER AND TO THE EXTENT PROVIDED HEREIN AND IN THE ORDINANCE. No holder or owner of the Bond shall ever have the right, directly or indirectly, to require or compel the exercise of the ad valorem taxing power of the Issuer or any other political subdivision of the State of Florida or taxation in any form on any real or personal property for any purpose, including, without limitation, for the payment of debt service with respect thereto, or to maintain or continue any activities of the Issuer which generate user service charges, regulatory fees or other non-ad valorem revenues, nor shall any holder or owner of the Bond be entitled to payment of such principal and interest from any other funds of the Issuer other than the Pledged Revenues, all in the manner and to the extent herein and in the Ordinance provided. Section 2.03 Ordinance. The Ordinance has been duly enacted by the Issuer, is in full force and effect and has not been amended, altered, repealed or revoked in any way. The terms and covenants of the Ordinance, except Article V, Section 5.04 thereof, relating to continuing disclosure, are incorporated by reference herein and shall apply to the Loan for the benefit of the Lender as fully as if set forth herein; provided, however, that no amendment or 00352137-2 4 AGENDA ITEM # 6A AUGUST 11, 2014 modification of the Ordinance or any waiver of compliance therewith shall constitute an amendment, modification or waiver of any provision thereof or incorporated herein unless the Lender shall have received from the Issuer written notification of such amendment, modification or waiver and agreed in writing to such amendment modification or waiver. Pursuant to the Ordinance, the City has the right to establish separate Reserve Accounts for different series of bonds issued thereunder. The City elects to establish a separate Reserve Account for the Bond and the Lender hereby waives the requirement that a separate Reserve Account for the Bond be funded. The Bank hereby consents to the requirement for the Renewal and Replacement Fund to be set at $250,000. Section 2.04 No Violation of Law or Contract. The Issuer is not in default in any material respect under any agreement or other instrument to which it is a party or by which it may be bound, the breach of which could result in a material and adverse impact on the financial condition of the Issuer or the ability of the Issuer to perform its obligations hereunder and under the Bond. The making and performing by the Issuer of this Agreement and the Bond will not violate any applicable provision of law, and will not result in a material breach of any of the terms of any agreement or instrument to which the Issuer is a party or by which the Issuer is bound, the breach of which could result in a material and adverse impact on the financial condition of the Issuer or the ability of the Issuer to perform its obligations hereunder and under the Bond. Section 2.05 Pending or Threatened Litigation. Except as has been disclosed to the Lender in writing, there are no actions or proceedings pending against the Issuer or affecting the Issuer or, to the knowledge of the Issuer, threatened, which, either in any case or in the aggregate, might result in any material adverse change in the financial condition of the Issuer, or which questions the validity of this Agreement or the Bond or of any action taken or to be taken in connection with the transactions contemplated hereby or thereby. Section 2.06 Financial Information. The financial information regarding the Issuer furnished to the Lender by the Issuer in connection with the Loan is complete and accurate, and there has been no material and adverse change in the financial condition of the Issuer from that presented in such information. ARTICLE Ill COVENANTS OF THE ISSUER Section 3.01 Affirmative and Negative Covenants. For so long as any of the principal amount of or interest or any redemption or prepayment premium on the Bond is outstanding or any duty or obligation of the Issuer hereunder or under the Bond remains unpaid or unperformed, the Issuer covenants to the Lender as follows: Payment. The Issuer shall pay the principal of and the interest or any redemption 00352137-2 5 AGENDA ITEM# 6A AUGUST 11, 2014 or prepayment premium on the Bond and any other amounts due and payable under this Agreement or the Bond at the time and place and in the manner provided herein and in the Bond . .®. Use of Proceeds. Proceeds from the Bond will be used only to (i) deposit funds under the Escrow Deposit Agreement to refund the Refunded Bonds, and (ii) to pay closing costs of the Loan and costs of issuance of the Bond. (Q2 Maintenance of Existence. The Issuer will take all reasonable legal action within its control in order to maintain its existence until all amounts due and owing from the Issuer to the Lender under this Agreement and the Bond have been paid in full. @ Records. The Issuer agrees that any and all records of the Issuer with respect to the Loan shall be open to inspection by the Lender or its representatives at all reasonable times and after receipt by the Issuer of reasonable notice from the Lender at the offices the Issuer . .W Financial Statements and Budget. The Issuer will cause an audit to be completed of its books and accounts and shall make available electronically to the Lender audited year-end financial statements of the Issuer, including a balance sheet as of the end of such Fiscal Year and related statements of revenues, expenses and changes in net assets, certified by an independent certified public accountant to the effect that such audit has been conducted in accordance with generally accepted auditing standards and stating whether such financial statements present fairly in all material respects the financial position o.f the Issuer and the results of its operations and cash flows for the periods covered by the audit report, all in conformity with generally accepted accounting principles applied on a consistent basis. The Issuer shall make available electronically to the Lender the audited financial statements for each Fiscal Year ending on or after September 30, 2014, within 210 days after the end thereof and shall make available electronically to the Lender an annual budget within 60 days after the same shall have been approved by the City Commission of the Issuer. The Issuer shall also provide to the Lender, together with the annual audited financial statements referred to in this paragraph, a certificate of an officer of the Issuer to the effect that the Issuer is not in breach of any of the covenants set forth in this Article Ill. (f) Insurance. The Issuer shall maintain such liability, casualty and other insurance as, or shall self-insure in a manner as, is reasonable and prudent for similarly situated governmental entities of the State of Florida. (g) Compliance with Laws. The Issuer shall comply with all applicable federal, state and local laws and regulatory requirements, the violation of which could reasonably be expected to have a material and adverse effect upon the financial condition of the Issuer or upon the ability of the Issuer to perform its obligation hereunder or under the Bond. (i) Payment of Document Taxes. In the event the Bond or this Agreement should be subject to the excise tax on documents of the State, the Issuer shall promptly upon the Lender's written demand for same pay such taxes or reimburse the Lender for any such taxes 00352137-2 6 paid by it. AGENDA ITEM# 6A AUGUST 11, 2014 Section 3.02 Registration and Exchange of Bond. The Bond shall initially be owned by the Lender. The ownership of the Bond may only be transferred, and the Issuer will transfer the ownership of the Bond, upon written request of the Lender to the Issuer specifying the name, address and taxpayer identification number of the transferee, and the Issuer will keep and maintain at all times a record setting forth the identification of the owner of the Bond. For every such exchange or transfer of the Bond, the Issuer may make a charge sufficient to reimburse it for any tax, fee, expense or other governmental charge required to be paid with respect to such exchange or transfer. The Bond may only be sold, assigned or otherwise transferred to an "accredited investor," as defined in Rule 501(A}(1), (2) or (3} under Regulation D of the Securities Act of 1933, as amended, or a "qualified institutional buyer" within the meaning of Rule 144A promulgated under the Securities Act of 1933, as amended. The Person in whose name the Bond shall be registered shall be deemed and regarded the absolute owner thereof for all purposes, and payment of principal and interest on such Bond shall be made only to or upon the written order of such Person. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. Section 3.03 Bond Mutilated, Destroyed, Stolen or Lost. In case the Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer shall issue and deliver a new Bond, in exchange and in substitution for such mutilated Bond, or in lieu of and in substitution for the Bond destroyed, stolen or lost and upon the Lender furnishing the Issuer proof of ownership thereof, an affidavit of lost or stolen instrument and indemnity reasonably satisfactory to the Issuer and paying such expenses as the Issuer may reasonably incur in connection therewith. Section 3.04 Payment of Principal and Interest; Limited Obligation. The Issuer promises that it will promptly pay the principal of and interest on and any prepayment or redemption premium or fee on the Bond, at the place, on the dates and in the manner provided therein according to the true intent and meaning hereof and of the Bond, provided that the Issuer may be compelled to pay the principal of and interest on and any prepayment premium or fee with respect to the Bond solely from the Pledged Revenues, and nothing in the Bond, this Agreement or the Ordinance shall be construed as pledging any other funds or assets of the Issuer to such payment or as authorizing such payment to be made from any other source. The Issuer is not and shall not be liable for the payment of the principal of and interest on the·Bond and any prepayment premium or fee with respect to or for the performance of any pledge, obligation or agreement for payment undertaken by the Issuer hereunder, under the Bond or under the Ordinance from any property other than the Pledged Revenues. The Lender shall not have any right to resort to legal or equitable action to require or compel the Issuer to make any payment required by the Bond or this Agreement from any source other than the Pledged Revenues and only to the extent and in the manner provided herein. Section 3.05 Pledge. The payment of the principal of, premium, if any, and interest on the Bond and all other amounts due and payable under this Agreement and the Bond shall be secured by an irrevocable lien on the Pledged Revenues, all in the manner and to the extent 00352137-2 7 AGENDA ITEM# 6A AUGUST 11, 2014 provided herein and in the Ordinance. The Issuer does hereby pledge such Pledged Revenues to the principal of, premium, if any, and interest on the Bond and for all other payments provided for herein. Section 3.06 Sinking Fund. The Issuer shall apply all moneys on deposit in the Sinking Fund to the timely payment of the principal of, premium, if any, and interest on the Bond and other amounts due and payable under this Agreement and the Bond. The Issuer shall deposit the proceeds of the Bond in an amount sufficient with other available funds of the Issuer to defease the Refunded Bonds with the Escrow Agent under the Escrow Deposit Agreement and the remainder shall be applied to pay the costs of the Loan and costs of issuance of the Bond. Section 3.07 Officers and Employees of the Issuer Exempt from Personal Liability. No personal recourse under or upon any obligation, covenant or agreement of this Agreement or the Bond or for any claim based hereon or thereon or otherwise in respect thereof, shall be had against any officer, agent or employee, as such, of the Issuer, past, present or future, it being expressly understood (a) that the obligation of the Issuer under this Agreement and under the Bond is solely a corporate one, limited as provided herein, (b) that no personal liability whatsoever shall attach to, or is or shall be incurred by, the officers, agents, or employees, as such, of the Issuer, or any of them, under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom, and (c) that any and all such personal liability of, and any and all such rights and claims against, every such officer, agent, or employee, as such, of the Issuer under or by reason of the obligations, covenants or agreements contained in this Agreement and under the Bond, or implied therefrom, are waived and released as a condition of, and as a consideration for, the execution of this Agreement and the issuance of the Bond on the part of the, Issuer. Section 3.08 Business Days. In any case where the due date of interest on or principal of the Bond is not a Business Day, then payment of such principal or interest need not be made on such date but may be made on the next succeeding Business Day, provided that credit for payments made shall not be given until the payment is actually received by the Lender. Section 3.09 Tax Representations, Warranties and Covenants of the Issuer. It is the intention of the Issuer that the interest on the Bond be and remain excluded from gross income of the holders and owners of the Bond for federal income tax purposes. The Issuer hereby covenants and represents that it has taken and caused to be taken and shall make and take and cause to be made and taken all actions that may be required of it for the interest on the Bond to be and remain excluded from the gross income of the registered owner and holder thereof for federal income tax purposes to the extent set forth in the Code, and that to the best of its knowledge it has not taken or permitted to be taken on its behalf, and covenants that to the best of its ability and within its control, it shall not make or take, or permit to be made or taken on its behalf, any action which, if made or taken, would adversely affect such exclusion under the provisions of the Code. The Issuer acknowledges that the continued exclusion of interest on the Bond from gross income for federal income tax purposes depends, in part, upon compliance with the 00352137-2 8 AGENDA ITEM# 6A AUGUST 11, 2014 arbitrage limitations imposed by Sections 103(b)(2) and 148 of the Code. The Issuer hereby acknowledges responsibility to take all reasonable actions necessary to comply with these requirements. The Issuer hereby agrees and covenants that it shall not permit at any time or times any of the proceeds of the Bond or other funds of the Issuer to be intentionally used, directly or indirectly, to acquire or to replace funds which were used directly or indirectly to acquire any higher yielding investments (as defined in Section 148 of the CodeL the acquisition of which would cause the Bond to be an arbitrage bond for purposes of Sections 103(b)(2) and 148 of the Code. The Issuer further agrees and covenants that it shall do and perform all acts and things necessary in order to assure that the requirements of Section 103(b)(2) and Part IV of Subchapter B of Chapter 1 of Subtitle A of the Code are met. Specifically, without intending to limit in any way the generality of the foregoing, the Issuer covenants and agrees: (1) to make or cause to be made all necessary determinations and calculations of the excess of the amount earned on all non-purpose investments (as defined in 26 C.F.R. § 1.148-3) over the amount which would have been earned if such non-purpose- investments were invested at a rate equal to the yield on the Bond, plus any income attributable to such excess, but not including any amount exempted under 26 C.F.R. § 1.148-3 of the Code (the "Rebate Amount"); (2) to pay the Rebate Amount to the United States of America from legally available funds of the Issuer at the times and to the extent required pursuant to Section 148(f) of the Code; (3) to maintain and retain all records pertaining to and to be responsible for making or causing to be made all determinations and calculations of the Rebate Amount and required payments of the Rebate Amount for at least six years after the final maturity of the Bond or such other period as shall be necessary to comply with the Code; (4) to refrain from taking any action that would cause the Bond to be classified as "private activity bond" under Section 141(a) of the Code; and (5) to refrain from taking any action that would cause the Bond to become an arbitrage bond under Section 148 of the Code. The Issuer understands that the foregoing covenants impose continuing obligations on it to comply with the requirements of Section 103 and Part IV of Subchapter 13 of Subpart A of Chapter 1 of the Code so long as such requirements are applicable. The terms "debt service/' "gross proceeds/' "net proceeds/' "proceeds/' and "yield" have the meanings assigned to them for purposes of Section 148 of the Code. Section 3.10 Separate Accounts. The moneys required to be accounted for the foregoing funds established herein may be deposited in a single bank account, and funds 00352137-2 9 AGENDA ITEM # 6A AUGUST 11, 2014 allocable to any fund or account established herein may be invested in a common investment poot provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit therein and such investments for the various purposes of such funds and accounts as herein provided. The designation and establishment of any funds or accounts and by this Agreement shall not be construed to require the establishment of any completely independent, self-balancing funds as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to establish certain priorities for application of such revenues as herein provided. ARTICLE IV CONDITIONS OF LENDING The obligations of the Lender to lend hereunder are subject to the following conditions precedent: Section 4.01 Representations and Warranties. The representations and warranties of the Issuer set forth in this Agreement and the Bond are true and correct on and as of the date hereof. Section 4.02 No Default. On the date hereof, the Issuer shall be in compliance with all the terms and provisions set forth in this Agreement and the Bond on its part to be observed or performed, and no Event of Default or any event that, upon notice or lapse of time or both, would constitute such an Event of Default, shall have occurred and be continuing at such time. Section 4.03 Supporting Documents. On or prior to the date hereof, the Lender shall have received the following supporting documents, all of which shall be satisfactory in form and substance to the Lender (such satisfaction to be evidenced by the purchase of the Bond by the Lender): (a) The opinion of the attorney for the Issuer and/or bond counsel to the Issuer, regarding the due authorization, execution, delivery, validity and enforceability of the Ordinance authorizing this Agreement, the Bond and the Escrow Deposit Agreement, the Bond constituting an Additional Parity Bond, as such term is defined in the Ordinance, and such other items as the Lender shall reasonably request; (b) The opinion of Bond Counsel to the Issuer to the effect that (i) the interest on the Bond is excluded from gross income for federal income tax purposes and the Bond is not an item of tax preference under Section 57 of the Code, (ii) the Bond is an exempt security within the meaning of the Securities Act of 1933, as amended, and it is not necessary in connection with the sale of the Bond to register the Bond under the Securities Act of 1933, as amended, or qualify the Ordinance under the Trust Indenture Act of 1939, as amended, and (iii) such other items as the Lender shall reasonably request; and 00352137-2 10 AGENDA ITEM# 6A AUGUST 11, 2014 (c) Such additional supporting documents as the Lender may reasonably request. ARTICLE V FUNDING THE LOAN Section 5.01 The Loan. The Lender hereby agrees to lend to the Issuer the Loan Amount to provide funds for the purposes described herein upon the terms and conditions set forth in this Agreement. The Issuer agrees to repay the principal amount borrowed plus interest thereon upon the terms and conditions set forth in this Agreement and the Bond. Section 5.02 Description and Payment Terms of the Bond. To evidence the obligation of the Issuer to repay the Loan, the Issuer shall issue and deliver to the Lender the Bond in the form attached hereto as Exhibit "A." Prepayment of principal may be made otily as provided in the Bond and the rate of interest on the Bond, including any adjustments thereto, shall be as provided in the Bond. ARTICLE VI EVENTS OF DEFAULT Section 6.01 General. An "Event of Default" shall be deemed to have occurred under this Agreement if: (a) The Issuer shall fail to make any payment of the principal of premium, if any, or interest on the Bond when the same shall become due and payable; or (b) The Issuer shall default in the performance of or compliance with any term or covenant contained in this Agreement or the Bond, other than a term or covenant a default in the performance of which or noncompliance with which is elsewhere specifically dealt with in this Section 6.01, which default or non-compliance shall continue and not be cured within thirty (30) days after written notice thereof to the Issuer by the Lender; or (c) Any representation or warranty made in writing by or on behalf of the Issuer in this Agreement or the Bond shall prove to have been false or incorrect in any material respect on the date made or reaffirmed; or (d) The Issuer admits in writing its inability to pay its debts generally as they become due or files a petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of a receiver or trustee for itself; or (e) The Issuer is adjudged .insolvent by a court of competent jurisdiction, or it is adjudged a bankrupt on a petition in bankruptcy filed by the Issuer, or an order, judgment or decree is entered by any court of competent jurisdiction appointing, without the consent of the Issuer, a receiver or trustee of the Issuer or of the whole or any part of its property, and if the aforesaid adjudications, orders, judgments or decrees shall not be vacated or set aside or 00352137-2 11 AGENDA ITEM # 6A AUGUST 11, 2014 stayed within ninety {90} days from the date of entry thereof; or (f) The Issuer shall file a petition or answer seeking reorganization or any arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or the State. Notwithstanding the provisions of clause (b) above or anything to the contrary in Section 6.02 below, a default of any of the covenants contained in Section 3.09 hereof shall not be an "Event of Default" hereunder and the sole remedy of the Lender shall be an adjustment of the interest rate on the Bond to the Taxable Rate (as defined in the Bond} and the payment of the Additional Amount (as defined in the Bond} to the extent and in the manner described in the Bond. Section 6.02 Effect of Event of Default. The Lender may either at law or in equity, by suit, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights under the laws of the State, or granted or contained in the Bond and this Agreement, and may enforce and compel the performance of all duties required by the Bond, this Agreement or by any applicable statute to be performed by the Issuer for performance hereunder or under the Bond. All payments made on the Bond, after an Event of Default, shall be first applied to accrued interest then to any reasonable costs or expenses, including reasonable legal fees and expenses, that the Lender may have incurred in protecting or exercising its rights under the Loan Documents and the balance thereof shall apply to the principal sum due. ARTICLE VII MISCELLANEOUS Section 7.01 No Waiver; Cumulative Remedies. No failure or delay on the part of the Lender in exercising any right, power, remedy hereunder or under the Bond shall operate as a waiver of the Lender's rights, powers and remedies hereunder, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof, or the exercise of any other right, power or remedy hereunder or thereunder. The remedies herein and therein provided are cumulative and not exclusive of any remedies provided by law or in equity. Section 7.02 Amendments, Changes or Modifications to this Agreement. This Agreement shall not be amended, changed or modified except in writing signed by the Lender and the Issuer. The Issuer agrees to pay all of the Lender's costs and reasonable attorneys' fees incurred in modifying and/or amending this Agreement at the Issuer's request or behest. Section 7.03 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original; but such counterparts shall together constitute but one and the same Agreement, and, in making proof of this Agreement, it shall not be necessary to produce c:ir account for more than one such 00352137-2 12 counterpart. AGENDA ITEM # 6A AUGUST 11, 2014 Section 7.04 Severability. If any clause, provision or section of this Agreement shall be held illegal or invalid by any court, the Invalidity of such clause, provision or section shall not affect any other provisions or sections hereof, and this Agreement shall be construed and enforced to the end that the transactions contemplated hereby be effected and the obligations contemplated hereby be enforced, as if such illegal or invalid clause, provision or section had not been contained herein. Section 7.05 Term of Agreement. Except as otherwise specified in this Agreement, this Agreement and all representations, warranties, covenants and agreements contained herein or made in writing by the Issuer in connection herewith shall be in full force and effect from the date hereof and shall continue in effect until as long as the Bond is outstanding. Section 7.06 Notices. All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy, electronic telephone line facsimile transmission or other similar electronic or digital transmission method (provided customary evidence of receipt is obtained); the day after it is sent, if sent by overnight common carrier service; and five days after it is sent, if mailed, certified mail, return receipt requested, postage prepaid. In each case notice shall be sent to the Notice Address. Section 7.07 Applicable Law; Venue. This Agreement shall be construed pursuant to and governed by the substantive laws of the State. The Issuer and the Lender waive any objection either might otherwise have to venue in any judicial proceeding brought in connection herewith lying in Duval County, Florida. Section 7.08 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the successors in interest and permitted assigns of the parties. The Issuer shall have no rights to assign any of its rights or obligations hereunder without the prior written consent of the Lender. Section 7.09 No Third Party Beneficiaries. It is the intent and agreement of the parties hereto that this Agreement is solely for the benefit of the parties hereto and no person not a party hereto shall have any rights or privileges hereunder. Section 7.10 Attorneys Fees. To the extent legally permissible, the Issuer and the Lender agree that in any suit, action or proceeding brought in connection with this Agreement or the Bond (including any appeal(s)), the prevailing party shall be entitled to recover costs and reasonable attorneys' fees from the other party. Section 7.11 Entire Agreement. Except as otherwise expressly provided, this Agreement and the Bond embody the entire agreement and understanding between the parties hereto and supersede all prior agreements and understandings relating to the subject matter hereof. 00352137-2 13 AGENDA ITEM# 6A AUGUST 11, 2014 Section 7.12 Further Assurances. The parties to this Agreement will execute and deliver, or cause to be executed and delivered, such additional or further documents, agreements or instruments and shall cooperate with one another in all respects for the purpose of carrying out the transactions contemplated by this Agreement. Section 7.13 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE BOND AND ANY DOCUMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT. 00352137-2 14 AGENDA ITEM # 6A AUGUST 11, 2014 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective between them as of the date first set forth above. CITY OF ATLANTIC BEACH, FLORIDA By: ________________________ __ City Manager ATTEST: By: __________________________ ___ City Clerk APPROVED AS TO FORM AND LEGALITY: By: __________________________ __ City Attorney TD BANK, N.A. By: ____________ _ Vice President 00352137-2 15 Exhibit A to Loan Agreement FORM OF BOND AGENDA ITEM# 6A AUGUST 11, 2014 THIS BOND IS SUBJECT TO TRANSFER RESTRICTIONS, MORE FULLY DESCRIBED IN THE LOAN AGREEMENT REFERRED TO HEREIN, AND MAY NOT BE TRANSFERRED EXCEPT TO AN ACCREDITED INVESTOR WITHIN THE MEANING OF REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, OR A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PROMULGATED UNDER THE SECURITIES ACT OF 1933. CITY OF ATLANTIC BEACH, FLORIDA UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014 The CITY OF ATLANTIC BEACH, FLORIDA (the "lssuer"L a municipal corporation duly created and existing under the laws of the State of Florida, for value received, promises to pay, but solely from the sources hereinafter provided, to the order of TD BANK, N.A. or registered assigns (together with any other registered owner of this Bond, hereinafter, the "Lender"L the principal sum of Dollars ($ ) or such lesser amount as shall be outstanding hereunder, together with interest on the principal balance outstanding at the Interest Rate (defined belowL calculated based upon a year of 360 days consisting of twelve 30-day months, such amounts to be payable as provided herein. This Utilities System Revenue Refunding Bond, Series 2014 (this "Bond"L is issued pursuant to the Ordinance enacted by the City Commission of the Issuer on November 13, 1995, as amended and supplemented (collectively, the "Ordinance") and in conjunction with a Loan Agreement, dated of even date herewith, between the Issuer and the Lender (the "Loan Agreement") and is subject to all the terms and conditions of the Loan Agreement. All terms used herein in capitalized form and not otherwise defined herein shall have the meanings ascribed thereto, or referenced, in the Loan Agreement. Principal of and interest on this Bond are payable in immediately available funds constituting lawful money of the United States of America at the Principal Office or such place as the Lender may designate in writing to the Issuer and shall be settled via auto debit. The Issuer shall pay the Lender interest on the outstanding principal balance of this Bond in arrears, on April 1, 2015, and on the first day of each October and April thereafter, to and including the Final Maturity Date (hereinafter defined). The principal amount of this Bond shall be payable in annual installments in the amounts set forth on Schedule A hereto, payable on October I of each year, commencing October 1, 2015, with the final installment payable October 1, 2025 (the "Final Maturity Date"). If any date for the payment of principal or interest is not a Business Day, such payment shall be due on the next succeeding Business Day in the manner provided in the Loan Agreement. All payments by the Issuer pursuant to this Bond shall apply first to accrued interest, oo3s2m-2 A-1 AGENDA ITEM# 6A AUGUST 11, 2014 then to other charges due the Lender, and the balance thereof shall apply to the principal sum due; provided, however, in an Event of Default, payment shall be applied in accordance with Section 6.02 of the Loan Agreement. If any payment of principal or interest due hereunder is not paid within fifteen (15) days after the date due hereunder, the Issuer shall pay the Lender upon demand a late payment fee equal to six percent (6%) of the amount not paid when due. The foregoing right to a late payment fee is in addition to and not in limitation of any right the Lender may have upon the Issuer's failure to timely pay such scheduled payment on the Bond. The "Interest Rate," as used herein, shall mean two and thirty-three hundredths per centum (2.33%) per annum unless adjusted as provided herein. In the event of a Determination of Taxability, the Interest Rate shall be adjusted to cause the after-tax yield on this Bond to the Lender after such Determination of Taxability to equal what the yield would have been to the Lender in the absence of such Determination of Taxability (the "Taxable Rate"), effective retroactively to the date on which such Determination of Taxability was made. In addition, immediately upon a Determination of Taxability, the Issuer agrees to pay to the Lender the Additional Amount. "Additional Amount" means (i) the difference between (a) interest on this Bond for the period commencing on the date on which the interest on this Bond ceases to be excludable from gross income for federal income tax purposes and ending on the earlier of the date this Bond ceased to be outstanding or such adjustment is no longer applicable to this Bond (the "Taxable Period") at a rate per annum equal to the Taxable Rate, and (b) the aggregate amount of interest paid on this Bond for the Taxable Period under the provisions of this Bond without considering the Determination of Taxability, plus (ii) any penalties and interest paid or payable by the Lender to the Internal Revenue Service by reason of such Determination of Taxability. As used herein, "Determination of Taxability" means a final decree or judgment of any federal court or a final action of the Internal Revenue Service or of the United States Treasury Department determining that any interest payable on this Bond is includable in the gross income of the Lender for federal income tax purposes. No such decree or action shall be considered final for the purposes of this paragraph unless the Issuer has been given written notice thereof and, if it is so desired by the Issuer and is legally permissible, the Issuer has been afforded the opportunity to contest the same, at its own expense, either directly or in the name of the Lender and until the conclusion of any appellate review, if sought. Upon the occurrence and during the continuance of an Event of Default under the Loan Agreement, the Interest Rate shall be equal to the Interest Rate that was applicable prior to such Event of Default plus six percent (6%) per annum (the "Default Rate"). Notwithstanding the foregoing, in no event shall the Interest Rate exceed the maximum rate permitted by applicable law. This Bond shall be prepayable at any time, in whole or in part, upon five (5) days' prior written notice from the Issuer to the Lender, at the amount of principal of this Bond being prepaid, plus interest accrued on the principal being prepaid to the date of prepayment plus, to the extent applicable, a Yield Maintenance Fee. Prepayments in part shall be applied against oms2137-2 A-2 AGENDA ITEM # 6A AUGUST 11, 2014 remaining installments of principal due hereunder in such order as the Issuer shall select. The Yield Maintenance Fee shall be calculated as follows: The current cost of funds, specifically the "bond equivalent yield" for United States Treasury securities (bills on a discounted basis shall be converted to a "bond equivalent yield") with a maturity date closest to the "Remaining Term" (as defined below), shall be subtracted from the Interest Rate or Default Rate, if applicable. If the result is zero or a negative number, there shall be no Yield Maintenance Fee due and payable. If the result is a positive number, then the resulting percentage shall be multiplied by the scheduled outstanding principal balance for each remaining monthly period of the "Remaining Term." Each resulting amount shall be divided by 360 and multiplied by the number of days in the monthly period. Said amounts shall be reduced to present values calculated by using the above-referenced current costs of funds divided by 12. The resulting sum of such present values shall be the Yield Maintenance Fee. "Remaining Term" as used herein shall mean the remaining term of this Bond from the date of prepayment. The Issuer to the extent permitted by law hereby waives presentment, demand, protest and notice of dishonor. This Bond is payable solely from the Pledged Revenues to the extent provided in the Loan Agreement and subject to the pledge of the Pledged Revenues as more specifically provided in the Ordinance and the Loan Agreement. Notwithstanding any other provision of this Bond, the Issuer is not and shall not be liable for the payment of the principal of and interest on this Bond or otherwise monetarily liable in connection herewith from any property other than as provided in the Loan Agreement and the Ordinance. NOTWITHSTANDING ANYTHING HEREIN OR IN THE LOAN AGREEMENT OR THE ORDINANCE TO THE CONTRARY, THIS BOND AND THE INTEREST HEREON DOES NOT AND SHALL NOT CONSTITUTE A GENERAL OBLIGATION OF THE ISSUER BUT SHALL BE PAYABLE SOLELY FROM THE MONEYS AND SOURCES DESIGNATED THEREFORE PURSUANT TO THE LOAN AGREEMENT, THIS BOND AND THE ORDINANCE. NEITHER THE FAITH AND CREDIT NOR ANY AD VALOREM TAXING POWER OF THE ISSUER IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THIS BOND OR OTHER COSTS INCIDENTAL HERETO. All terms, conditions and provisions of the Loan Agreement are by this reference thereto incorporated herein as a part of this Bond. This Bond may be exchanged or transferred but only as provided in the Loan Agreement. It is hereby certified, recited and declared that all acts, conditions and prerequisites required to exist, happen and be performed precedent to and in connection with the execution, omszm-2 A-3 AGENDA ITEM # 6A AUGUST 11, 2014 delivery and the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this Bond is in full compliance with and does not exceed or violate any constitutional or statutory limitation. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed in its name as of the date hereinafter set forth. The date of this Bond is August 12, 2014. (SEAL) ATTESTED AND COUNTERSIGNED: By: __________________________ __ City Clerk APPROVED AS TO FORM AND LEGALITY: By: ____________________________ _ City Attorney oo3s2137-2 A-4 CITY OF ATLANTIC BEACH, FLORIDA By: ----------------------------- Mayor oo352!37-2 A-5 Date (October I) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL SCHEDULE A Principal Amount $ __ AGENDA ITEM# 6A AUGUST 11, 2014 Exhibit D Bond Debt Service and Escrow Requirements 00362197-3 AGENDA ITEM# 6A AUGUST 11, 2014 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFfD1,14REFfDl) Page 1 Notes: Assume No DSRF SOURCES AND USES OF FUNDS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 20I4 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Sources: Bond Proceeds: Par Amount Dated Date Delivery Date Other Sources of Funds: 08/12/2014 08/12/2014 Sinking Funds (201 OA-1 4mth Interest) Sinking Funds (2010A-110mth Principal) Sinking Funds (2010B 4mth Interest) Sinking Funds (2010B lOmth Principal) Sinking Funds (2004 Bonds 10-1-14 P&I) Uses: Refunding Escrow Deposits: Cash Deposit Delivery Date Expenses: Cost ofissuance Other Uses of Funds: Additional Proceeds 13,960,000.00 9,063.40 43,002.42 7,124.29 32,713.39 1,184,571.88 1,276,475.38 15,236,475.38 15,189,192.05 47,000.00 283.33 15,236,475.38 Assume Cash Gross Funded Escrow Assume City to Pay Sinking'Funds From Debt Service Fund (City to Confirm) Assume City Pays Series 2004 10-1-14 P&I Estimated Cost ofissuance 30/360 Interest Calculation Sinking Funds for 9 months Principal and 3 months Interest AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 2 BOND SUMMARY STATISTICS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 20IOB Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Bond Component Bond Component Par Value + Accrued Interest Dated Date Delivety Date First Coupon Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC Average Coupon Average Life (years) Duration oflssue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per $1 000) Average Takedown Other Fee Total Underwriter's Discount Bid Price Par Value Price 13,960,000.00 100.000 13,960,000.00 TIC 13,960,000.00 +Premium (Discount) -Underwriter's Discount -Cost oflssuance Expense -Other Amounts Target Value 13,960,000.00 Target Date 08/12/2014 Yield 2.329602% Average Coupon 2.330% 08/12/2014 08112/2014 04/01/2015 10/0112025 2.329602% 2.329602% 2.330000% 2.387791% 2.330000% 6.380 5.867 13,960,000.00 13,960,000.00 2,075,333.59 2,075,333.59 16,035,333.59 1,460,232.50 1,439,940.16 100.000000 Average Life 6.380 6.380 All-In TIC 13,960,000.00 -47,000.00 13,913,000.00 08/12/2014 2.387791% Average Maturity Date 12/28/2020 Arbitrage Yield 13,960,000.00 13,960,000.00 08/12/2014 2.329602% PVofl bp change 8,086.75 8,086.75 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFfD1,14REFTDl) Page 3 SUMMARY OF REFUNDING RESULTS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 201GB Bonds TD Bank-2.33% (Make-Whole) Dated Date Delivery Date Arbitrage yield Escrow yield ***For Informational Purposes Only*** Value ofNegative Arbitrage Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds PV of prior debt to 08/12/2014 @ 2.329602% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 08/12/2014 08/12/2014 2.329602% 13,960,000.00 2.329602% 2.330000% 2.330000% 6.380 14,883,171.06 4.211309% 6.105 16,651,602.73 1,415,410.68 9.510142% 10.139045% AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTDI,14REFTDI) Page 4 Bond SUMMARY OF BONDS REFUNDED City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-1 and 2010B Bonds TD Bank-2.33% (Make-Whole) *** Forinformational Purposes Only*** Maturity Interest Par Call Date Rate Amount Date Uti!. Bonds, Series 2004, 2004: SERIAL 10/01/2014 3.625% 905,000.00 10/01/2015 3.750% 940,000.00 10/01/2016 3.875% 975,000.00 10/01/2017 4.000% 1,010,000.00 10/01/2018 4.000% 1,050,000.00 10/01/2019 4.000% 1,090,000.00 10/01/2020 4.125% 1,130,000.00 10/01/2021 4.250% I, 185,000.00 10/01/2022 4.250% 1,235,000.00 10/0l/2023 4.375% 1,285,000.00 10/01/2024 4.375% 1,340,000.00 10/01/2025 4.500% I ,400,000.00 13,545,000.00 Utilities System Revenue Bonds, Series 2010A-I, 2010AI: BOND 10/0l/2014 3.590% 51,602.90 10/0l/2015 3.590% 53,455.50 10/01/2016 3.590% 55,374.50 10/01/2017 3.590% 57,362.40 10/0l/2018 3.590% 59,421.80 10/01/2019 3.590% 61,555.00 10/0 l/2020 3.590% 63,764.80 10/01/2021 3.590% 66,054.00 10/0l/2022 3.590% 68,425.30 10/01/2023 3.590% 70,881.80 10/0l/2024 3.590% 73,426.40 10/0l/2025 3.590% 76,062.50 757,386.90 Utilities System Revenue Refunding Bond, Series 2010B, 2010B: BOND 10/01/2014 3.680% 39,256.06 10/01/2015 3.680% 38,775.68 10/01/2016 3.680% 43,277.63 10/01/2017 3.680% 42,670.24 10/01/2018 3.680% 47,040.51 l 0/0 l/2019 3.680% 46,296.60 10/01/2020 3.680% 50,525.31 10/01/2021 3.680% 49,634.65 10/01/2022 3.680% 53,711.20 I 0/01/2023 3.680% 52,662.77 10/0l/2024 3.680% 56,575.76 10/01/2025 3.680% 60,357.75 580,784.16 14,883,171.06 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 08/18/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 Call Price 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 101.000 101.000 I 01.000 I 01.000 101.000 101.000 I 01.000 101.000 101.000 I 01.000 101.000 AGENDA ITEM# 6A AUGUST 11,2014 Jul I 8, 20 I 4 I 2:4 I pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTDI) Page 5 Date 10/01/2014 10/01/2015 10/01/2016 10/01/2017 10/01/2018 10/01/2019 10/01/2020 10/01/2021 10/01/2022 10/01/2023 10/01/2024 10/01/2025 SAVINGS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-I and 2010B Bonds TD Bank-2.33% (Make-Whole) *** For Informational Purposes Only*** Prior Debt Service Prior Prior Receipts Net Cash Flow Refunding Debt Service Present Value to 08112/20 14 Savings @ 2.3296018% 1,299,712.36 1,276,475.38 23,236.98 23,236.98 1,603,834.56 1,603,834.56 1,459,540.59 144,293.97 1,606,659.51 1,606,659.5 I 1,459,871.00 146,788.51 1,60 I ,678.22 1,601,678.22 1,457,843.00 143,835.22 1,604,078.3 I 1,604,078.3 I 1,460,232.50 143,845.81 1,599,603.28 1,599,603.28 1,456,923.00 142,680.28 1,598,528.25 1,598,528.25 1,453,031.00 145,497.25 1,604,165.81 1,604,165.81 1,458,556.50 145,609.31 1,606,053.26 1,606,053.26 1,458,266.50 147,786.76 1,600,540.77 1,600,540.77 1,457,277.50 143,263.27 1,601,296.98 1,601,296.98 1,455,589.50 145,707.48 1,604,372.05 1,604,372.05 1,458,202.50 146,169.55 I 8,930,523.36 I ,276,475.38 17,654,047.98 16,035,333.59 1,618, 714.39 Savings Summm:y Dated Date Delivery Date PV of savings from cash flow Plus: Refunding funds on hand Net PV Savings 08/12/2014 08112/2014 1,415,127.35 283.33 1,415,410.68 19,146.06 141,441.66 140,995.08 134,942.96 131,776.14 127,633.52 127,061.00 124,141.81 122,985.95 116,387.15 115,521.60 113,094.42 1,415,127.35 AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTDI) Page 6 Period Ending 10/01/2015 10/01/2016 10/01/2017 10/01/2018 10/01/2019 10/01/2020 10/01/2021 10/01/2022 10/01/2023 10/01/2024 10/01/2025 BOND DEBT SERVICE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Principal Coupon Interest Debt Service 1,090,000 2.330% 369,540.59 1,459,540.59 1,160,000 2.330% 299,871.00 1,459,871.00 1,185,000 2.330% 272,843.00 1,457,843.00 1,215,000 2.330% 245,232.50 1,460,232.50 1,240,000 2.330% 216,923.00 1,456,923.00 1,265,000 2.330% 188,031.00 1,453,031.00 1,300,000 2.330% 158,556.50 1,458,556.50 1,330,000 2.330% 128,266.50 1,458,266.50 1,360,000 2.330% 97,277.50 1,457,277.50 1,390,000 2.330% 65,589.50 1,455,589.50 1,425,000 2.330% 33,202.50 1,458,202.50 13,960,000 2,075,333.59 16,035,333.59 AGENDA ITEM # 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 7 Period Ending 10/0112014 10/0112015 10/01/2016 10/0112017 10/01/2018 10/01/2019 10/01/2020 10/0112021 10/01/2022 10/01/2023 10/0112024 10/01/2025 PRIOR BOND DEBT SERVICE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date 08/12/2014 08/12/2014 Uti!. Bonds, Series 2004 (2004) Principal Coupon Interest 905,000 3.625% 279,571.88 940,000 3.750% 526,337.50 975,000 3.875% 491,087.50 1,010,000 4.000% 453,306.26 1,050,000 4.000% 412,906.26 1,090,000 4.000% 370,906.26 1,130,000 4.125% 327,306.26 1,185,000 4.250% 280,693.76 1,235,000 4.250% 230,331.26 1,285,000 4.375% 177,843.76 1,340,000 4.375% 121,625.00 1,400,000 4.500% 63,000.00 13,545,000 3,734,915.70 Debt Service 1,184,571.88 1,466,337.50 1,466,087.50 1,463,306.26 1,462,906.26 1,460,906.26 1,457,306.26 1,465,693.76 1,465,331.26 1,462,843.76 1,461,625.00 1,463,000.00 17,279,915.70 AGENDA ITEM# 6A AUGUST 11,2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 8 Period Ending 10/0112014 I 0/0112015 10/0112016 10/01/2017 10/0112018 10/0112019 10/0112020 10/0112021 10/0112022 10/0112023 10/01/2024 10/0112025 PRIOR BOND DEBT SERVICE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date 08112/2014 08112/2014 Utilities System Revenue Bonds. Series 2010A-1 (2010Al) Principal Coupon Interest Debt Service 51,602.90 3.590% 13,595.09 65,197.99 53,455.50 3.590% 25,337.64 78,793.14 55,374.50 3.590% 23,418.60 78,793.10 57,362.40 3.590% 21,430.64 78,793.04 59,421.80 3.590% 19,371.34 78,793.14 61,555.00 3.590% 17,238.10 78,793.10 63,764.80 3.590% 15,028.28 78,793.08 66,054.00 3.590% 12,739.12 78,793.12 68,425.30 3.590% 10,367.78 7.8,793.08 70,881.80 3.590% 7,911.30 78,793.10 73,426.40 3.590% 5,366.66 78,793.06 76,062.50 3.590% 2,730.64 78,793.14 757,386.90 174,535.19 931,922.09 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFfD1,14REFfDl) Page 9 Period Ending 10/0112014 10/0112015 10/0112016 10/0112017 10/0112018 10/0112019 10/0112020 10/0112021 10/01/2022 10/0112023 10/0112024 10/0112025 PRIOR BOND DEBT SERVICE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) *** For Informational Purposes Only*** Dated Date Delivery Date 08112/2014 08112/2014 Utilities System Revenue Refunding Bond, Series 2010B (2010B) Principal Coupon Interest Debt Service 39,256.06 3.680% 10,686.43 49,942.49 38,775.68 3.680% 19,928.24 58,703.92 43,277.63 3.680% 18,501.28 61,778.91 42,670.24 3.680% 16,908.68 59,578.92 47,040.51 3.680% 15,338.40 62,378.91 46,296.60 3.680% 13,607.32 59,903.92 50,525.31 3.680% 11,903.60 62,428.91 49,634.65 3.680% 10,044.28 59,678.93 53,711.20 3.680% 8,217.72 61,928.92 52,662.77 3.680% 6,241.14 58,903.91 56,575.76 3.680% 4,303.16 60,878.92 60,357.75 3.680% 2,221.16 62,578.91 580,784.16 137,901.41 718,685.57 AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTDI) Page 10 Period Ending I 0/01/2014 10/01/2015 10/01/2016 10/01/2017 10/0112018 10/01/2019 10/01/2020 10/01/2021 10/01/2022 10/01/2023 10/01/2024 10/01/2025 PRIOR BOND DEBT SERVICE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-1 and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date Principal 995,858.96 I ,032,231.18 I ,073,652.13 1,110,032.64 1,156,462.31 1,197,851.60 I ,244,290.11 1,300,688.65 1,357,136.50 1,408,544.57 I ,4 70,002.16 1,536,420.25 14,883,171.06 08/12/2014 08/12/2014 Coupon Interest ** % 303,853.40 ** % 571,603.38 ** % 533,007.38 ** % 491,645.58 ** % 447,616.00 ** % 401,751.68 ** % 354,238.14 ** % 303,477.16 ** % 248,916.76 ** % 191,996.20 ** % 131,294.82 ** % 67,951.80 4,047,352.30 Debt Service 1,299,712.36 1,603,834.56 1,606,659.51 1,601,678.22 1,604,078.31 1,599,603.28 1,598,528.25 1,604,165.81 1,606,053.26 1,600,540. 77 1,601,296.98 1,604,372.05 18,930,523.36 AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFI'D1,14REFID1) Page II Period Ending 10/01/2014 ESCROW REQUIREMENTS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date 08/12/20I4 08/12/2014 Uti!. Bonds, Series 2004 (2004) Principal Principal Interest Redeemed Total 905,000.00 279,571.88 12,640,000.00 13,824,571.88 905,000.00 279,571.88 12,640,000.00 13,824,571.88 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 12 ESCROW REQUIREMENTS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date 08/12/2014 08/12/2014 Utilities System Revenue Bonds, Series 2010A-l (2010A[) Period Ending 08/!8/2014 Interest 10,347.38 10,347.38 Principal Redeemed 757,386.90 757,386.90 Total 767,734.28 767,734.28 AGENDA ITEM# 6A AUGUST 11, 2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFfD1,14REFID1) Page 13 Period Ending 10/01/2014 ESCROW REQUIREMENTS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Dated Date Delivery Date 08/12/2014 08/12/2014 Utilities System Revenue Refunding Bond, Series 2010B (2010B) Principal Redemption Principal Interest Redeemed Premium 39,256.06 10,686.43 541,528.10 5,415.30 39,256.06 10,686.43 541,528.10 5,415.30 Total 596,885.89 596,885.89 AGENDA ITEM# 6A AUGUST 11,2014 Ju118, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFfD1,14REFfDl) Page 14 Period Ending 08/18/2014 10/01/2014 ESCROW REQUIREMENTS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) Principal 944,256.06 944,256.06 ** * For Informational Purposes Only *** Dated Date Delivery Date Interest 10,347.38 290,258.31 300,605.69 08/12/2014 08/12/2014 Principal Redeemed 757,386.90 13,181,528.10 13,938,915.00 Redemption Premium 5,415.30 5,415.30 Total 767,734.28 14,421,457.77 15,189,192.05 AGENDA ITEM # 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 15 ESCROW COST City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Purchase Date Cost of Securities Cash Deposit 08112/2014 15,189,192.05 0 15,189,192.05 Total Escrow Cost 15,189,192.05 15,189,192.05 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 16 Date 08112/2014 08/18/2014 10/0112014 ESCROW SUFFICIENCY City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Escrow Requirement 767,734.28 14,421,457.77 15,189,192.05 Net Escrow Receipts 15,189,192.05 15,189,192.05 Excess Receipts 15,189,192.05 -767,734.28 -14,421,457.77 0.00 Excess Balance 15,189,192.05 14,421,457.77 AGENDA ITEM# 6A AUGUST 11,2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 17 Date 08/12/2014 08/18/2014 ESCROW SUFFICIENCY City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-1 and 2010B Bonds · TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Prior Debt CPRI) Escrow Net Escrow Excess Requirement Receipts Receipts 767,734.28 767,734.28 767,734.28 -767,734.28 767,734.28 767,734.28 0.00 Excess Balance 767,734.28 AGENDA ITEM# 6A AUGUST 11,2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 18 Date 08112/2014 10/01/2014 ESCROW SUFFICIENCY City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-l and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Prior Debt #2 (PRI02) Escrow Net Escrow Excess Requirement Receipts Receipts 596,885.89 596,885.89 596,885.89 -596,885.89 596,885.89 596,885.89 0.00 Excess Balance 596,885.89 AGENDA ITEM# 6A AUGUST 11,2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 19 Date 08/12/2014 10/01/2014 ESCROW SUFFICIENCY City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-I and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Prior Debt #3 (PRI03) Escrow Net Escrow Excess Requirement Receipts Receipts 13,824,571.88 13,824,571.88 13,824,571.88 -13,824,571.88 13,824,571.88 13,824,571.88 0.00 Excess Balance 13,824,571.88 AGENDA ITEM# 6A AUGUST 11,2014 Jul18, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 20 Total Escrow Cost Global Proceeds Escrow: 15,189,192.05 15,189,192.05 Modified Duration (years) ESCROW STATISTICS City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-1 and 2010B Bonds TD Bank-2.33% (Make-Whole) ***For Infom1ational Purposes Only*** Yield to Receipt Date Yield to Disbursement Date Delive1y date Arbitrage yield Perfect Escrow Cost 15,189,192.05 I5, 189,192.05 08/I2/2014 2.329602% Value of Negative Arbitrage 0.00 Cost of Dead Time 0.00 AGENDA ITEM# 6A AUGUST 11, 2014 Jull8, 2014 12:41 pm Prepared by Dunlap & Associates, Inc. (Finance 7.008 ATLBEACH:WANDS-14REFTD1,14REFTD1) Page 21 COST OF ISSUANCE City of Atlantic Beach, Florida Utilities System Revenue Refunding Note, Series 2014 (TD Bank) Refunding Utilities System Series 2004, 2010A-1 and 2010B Bonds ID Bank-2.33% (Make-Whole) ***For Informational Purposes Only*** Cost ofissuance $/1000 Amount Bond Counsel 1.07450 15,000.00 Financial Advisor 1.07450 15,000.00 Bank Counsel 0.42980 6,000.00 Escrow Agent 0.07163 1,000.00 City Attorney 0.35817 5,000.00 Miscellaneous 0.35817 5,000.00 3.36676 47,000.00 Exhibit E Escrow Deposit Agreement 00362197-3 AGENDA ITEM# 6A AUGUST 11,2014 ESCROW DEPOSIT AGREEMENT DRAFT JULY 16, 2014 AGENDA ITEM# 6A AUGUST 11, 2014 THIS ESCROW DEPOSIT AGREEMENT, dated as of August 12, 2014, by and between the CITY OF ATLANTIC BEACH, FLORIDA (the "City"), and WELLS FARGO BANK, N.A., a national banking association, as Escrow Holder and its successors and assigns (the "Escrow Holder"); WITNESSETH: WHEREAS, the City has previously authorized and issued its Utilities System Refunding Revenue Bonds, Series 2004 (the "2004 Bonds"), hereinafter defmed as "2004 Bonds", as to which the Total Debt Service (as hereinafter defined) is set forth on Schedule A; and WHEREAS, the City has previously authorized and issued its Utilities System Revenue Bonds, Series 2010A-1 (the "2010 A-1 Bonds"), hereinafter defined as "2010 A-1 Bonds", as to which the Total Debt Service (as hereinafter defined) is set forth on Schedule A; arid WHEREAS, the City has previously authorized and issued its Utilities System Revenue Refunding Bonds, Series 2010 B (the "2010 B Bonds"), herein after defined as "2010 B Bonds", as to which the Total Debt Services (as hereinafter defined) is set forth on Schedule A; and WHEREAS, the 2004 Bonds, the 2010 A-1 Bonds and the 2010 B Bonds are collectively referred to as the Refunded Bonds; and WHEREAS, the City has determined to provide for payment of the Total Debt Service of the Refunded Bonds by depositing with the Escrow Holder an amount which held in cash is at least equal to such Total Debt Service; and WHEREAS, the execution of this Escrow Deposit Agreement and full performance of the provisions hereof shall defease the obligations of the City with respect to the Refunded Bonds; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the City and the Escrow Holder agree as follows: SECTION 1. DEFINITIONS. As used herein, the following terms mean: (a) "Agreement" means this Escrow Deposit Agreement. (b) "Annual Debt Service" means the interest and principal on the Refunding Bonds coming due in such year as shown on Schedule A attached hereto and made a part hereof. (c) "Call Date" means with respect to the 2004 Bonds and the 2010 B Bonds, October 1, 2014 and with respect to the 2010A-1 Bonds, August __ , 2014. (d) "Escrow Account" means the account hereby created and entitled Escrow Account established and held by the Escrow Holder pursuant to this Agreement, in which cash will be held 00361211-2 AGENDA ITEM# 6A AUGUST 11, 2014 for eventual payment of the principal of and accrued interest on the Refunded Bonds as they become due and payable. (e) "Escrow Holder" means Wells Fargo Bank, N.A., Jacksonville, Florida, and its successors and assigns. (f) "Escrow Requirement" means, as of any date of calculation, the sum of cash will be sufficient to pay the Total Debt Setvice on the Refunded Bonds in accordance with Schedule A. (g) "2004 Bonds" means the outstanding City of Atlantic Beach, Florida, Utilities System Revenue Refunding Bonds, Series 2004, originally issued in the aggregate amount of $19,500,000, as identified on Schedule A attached hereto. (h) "2010A-1 Bonds" means the outstanding City of Atlantic Beach, Florida, Utilities System Revenue Bonds, Series 2010A-1, originally issued in the aggregate amount of $892,560, as identified on Schedule A attached hereto. (i) "201 0 B Bonds" means the outstanding City of Atlantic Beach, Florida Utilities System Revenue Refunding Bonds, Series 2010 B, originally issued in the aggregate amount of $690,000, as identified in Schedule A attached hereto. G) "Total Debt Service" means the sum of the principal, premium and interest remaining unpaid with respect to the Refunded Bonds in accordance with Schedule A attached hereto. SECTION 2. DEPOSIT OF FUNDS. The City hereby deposits $ with the Escrow Holder for deposit into the Escrow Account, in immediately available funds, which funds the Escrow Holder acknowledges receipt of, to be held in irrevocable escrow by the Escrow Holder separate and apart from other funds of the Escrow Holder and applied solely as provided in this Agreement. The City represents that such funds are at least equal to the Escrow Requirement as of the date of such deposit. SECTION 3. USE AND INVESTMENT OF FUNDS. The Escrow Holder acknowledges receipt of the sum described in Section 2 and agrees: (a) to hold the funds in irrevocable escrow during the term of this Agreement for the sole benefit of the holders of the Refunded Bonds; (b) to hold such funds in cash in accordance with the terms of this Agreement for the payment of the Refunded Bonds; SECTION 4. PAYMENT OF BONDS AND EXPENSES. (a) 2004 Bonds. Unless the Escrow Account is earlier transferred to the Paying Agent as provided in Section 5 (c) hereof, on the dates and in the amounts set forth on Schedule A, the Escrow Holder shall transfer to Wells Fargo Bank, N.A., the Paying Agent for the 2004 Bonds (the "Paying Agent"), in immediately available funds solely from amounts available in the Escrow 00361211·2 2 AGENDA ITEM # 6A AUGUST 11, 2014 Account, a sum sufficient to pay that portion of the Annual Debt Service for the 2004 Bonds coming due on the dates as shown on Schedule A. (b) 2010A-1 Bonds and 2010 B Bonds. On the dates and in the amounts set forth on Schedule A, the Escrow Holder shall transfer to SunTrust Bank, the holder of the 2010A-1 Bonds, and to Branch Banking and Trust Company, the holder of the 2010 B Bonds, in immediately available funds solely from amounts available in the Escrow Account, a sum sufficient to pay the principal of, redemption premium (2010A-1 Bonds), and the interest on the 2010A-1 and 2010 B Bonds on the dates as shown on Schedule A. (c) Surplus. After transferring the amounts on deposit in the Escrow Account to the holders of the 2010A-1 Bonds and the 2010 B Bonds and after making the payments from the Escrow Account described in Subsection 4(a) above, the Escrow Holder shall retain in the Escrow Account any remaining cash in the Escrow Account in excess of the Escrow Requirement until the termination of this Agreement, and shall then pay any remaining funds to the City. SECTION 5. NO REINVESTMENT OF FUNDS. (a) The Escrow Holder shall have no power or duty to invest any funds held under this Agreement. (b) Notwithstanding any provision contained in this agreement, upon receipt of the written direction of the City Manager, the Escrow Agent shall transfer to the Paying Agent for the 2004 Bonds and the holders of the 2010A-1 Bonds and 2010 B Bonds the cash on deposit in the Escrow Account. Any funds remaining in the Escrow Account shall be transferred to the City. SECTION 6. REQUIRED NOTICES. The Escrow Agent shall cause notices to be given of such redemption of the 2004 Bonds at such time and in such mariner as provided by the ordinance authorizing the issuance of the 2004 Bonds. Such notice shall be in substantially the form set forth as Exhibit 1, attached hereto. The Escrow Agent shall also cause a Notice of Refunding and Defeasance to be mailed to each Registered Owner of the 2004 Bonds not more than 30 business days after the date of the establishment of the Escrow Deposit Ttust Fund. Such notice shall be in substantially the form set forth as Exhibit 2, attached hereto. SECTION 7. INDEMNITY. To the extent permitted by law, the City hereby assumes liability for, and hereby agrees to indemnify, protect, save and keep harmless the Escrow Holder and its respective successors, assigns, agents and se1vants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against at any time, the Escrow Holder (whether or not also indemnified against the same by the City or any other person under any other agreement or instrument) and in any way relating to or arising out of the execution and delivety of this Agreement, the establishment of the Escrow Account established hereunder, the acceptance of the funds deposited therein, and any payment, transfer or other application of funds by the Escrow Holder in accordance with the provisions of this Agreement; provided, however, that the City shall not be required to indemnify the 00361211-2 3 AGENDA ITEM# 6A AUGUST 11,2014 Escrow Holder against its own negligence or willful misconduct. In no event shall the City be liable to any person by reason of the transactions contemplated hereby other than to the Escrow Holder as set forth in this Section. The indemnities contained in this Section shall survive the termination of this Agreement and the resignation or removal of the Escrow Holder. The Escrow Holder shall not be liable for any deficiencies in the amounts necessa1y to pay the Escrow Requirement. Furthermore, the Escrow Holder shall not be liable for the accuracy of the calculation as to the sufficiency of moneys to pay the Escrow Requirement. SECTION 8. RESPONSIBILITIES OF ESCROW HOLDER; AGENTS, ETC. The Escrow Holder and its respective successors, assigns, agents and se1vants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and deliveq of this Agreement, the establishment of the Escrow Account, the acceptance of the funds deposited therein, the retention of such funds or for any payment, transfer or other application of moneys by the Escrow Holder in accordance with the provisions of this Agreement or by reason of any non-negligent or non-willful act, omission or error of the Escrow Holder made in good faith in the conduct of its duties. The Escrow Holder shall, however, be responsible for its negligent or willful failure to comply with its duties required hereunder, and its negligent or willful acts, omissions or errors hereunder. The duties and obligations of the Escrow Holder shall be determined by the express provisions of this Agreement and no implied duties or obligation shall be read into this Agreement against the Escrow Holder. The Escrow Holder may consult with counsel, who may or may not be counsel to the City, at the City's expense and in reliance upon the opinion of such counsel shall have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. Whenever the Escrow Holder shall deem it necessaq or desirable that a matter be proved or established prior to taking, suffering or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City. The Escrow Holder has the right to perform any of its duties hereunder through agents, attorneys, custodians or nominees. SECTION 9. RESIGNATION OF ESCROW HOLDER. The Escrow Holder may resign and thereby become discharged from the duties and obligations hereby created, by notice in writing given to the City, any rating agency then providing a rating on the 2004 Bonds and the Paying Agents for the Refunded Bonds not less than thirty (30) days before such resignation shall take effect. Such resignation shall not take effect until the appointment of a new Escrow Holder hereunder. SECTION 10. REMOVAL OF ESCROW HOLDER. (a) The Escrow Holder may be removed at any time by an instrument or concurrent instmments in writing, executed by the holders of not less than fifty-one percent (51%) in aggregate principal amount of the Refunded Bonds then outstanding, such instmments to be filed with the City, and notice in writing given by such holders to the original purchaser or purchasers of the Bonds not less than thirty (30) days before such removal is to take effect as stated in said instrument or instmments. A photographic copy of any instmment filed with the City under the provisions of this paragraph shall be delivered by the City to the Escrow Holder. 00361211-2 4 AGENDA ITEM# 6A AUGUST 11,2014 (b) The Escrow Holder may also be removed at any time for any breach of trust or for acting or proceeding in violation of, or for failing to act or proceed in accordance with, any provisions of this Agreement with respect to the duties and obligations of the Escrow Holder by any court of competent jurisdiction upon the application of the City or the holders of not less than five percentum (5%) in aggregate principal amount of the Refunded Bonds then outstanding. (c) The Escrow Holder may not be removed until a successor Escrow Holder has been appointed in the manner set forth herein. SECTION 11. SUCCESSOR ESCROW HOLDER. (a) If at any time hereafter the Escrow Holder shall resign, be removed, be dissolved or othenvise become incapable of acting, or shall be taken over by any governmental official, agency, department or City, the position of Escrow Holder shall thereupon become vacant. If the position of Escrow Holder shall become vacant for any of the foregoing reasons or for any other reason, the City shall appoint an Escrow Holder to fill such vacancy. The City shall mail a notice of any such appointment made by it to the Holders of the 2004 Bonds within thirty (30) days after such appointment. (b) At any time within thirty (30) days after such vacancy shall have occurred, the holders of a majority in principal amount of the Refunded Bonds then outstanding, by an inshument or concurrent inshuments in writing, executed by either group of such bondholders and filed with the governing body of the City, may appoint a successor Escrow Holder, which shall supersede any Escrow Holder theretofore appointed by the City. Photographic copies of each such instrument shall be delivered promptly by the City, to the predecessor Escrow Holder and to theEscrow Holder so appointed by the holders of the Refunded Bonds. In the case of conflicting appointments made by holders of the Refunded Bonds under this paragraph, the first effective appointment made during the one year period shall govern. (c) If no appointment of a successor Escrow Holder shall be made pursuant to the foregoing provisions of this Section, the holder of any Refunded Bonds then outstanding, or any retiring Escrow Holder may apply to any court of competent jurisdiction to appoint a successor Escrow Holder. Such court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Escrow Holder. (d) Any cotporation or association into which the Escrow Holder may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any cotporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which it is a party, ipso facto, shall be and become successor Escrow Holder hereunder and vested with all the hust, powers, discretions, immunities, privileges and all other matters as was its predecessor, without the execution or filing of any inshument or any further act, deed or conveyance on the part of any parties hereto, anything herein to the contraty notwithstanding, provided that such successor Escrow Holder assume in writing all the h<-lst, duties and responsibilities of tl1e Escrow Holder hereunder. 00361211-2 5 AGENDA ITEM# 6A AUGUST 11, 2014 SECTION 12. PAYMENT TO ESCROW HOLDER. The Escrow Holder hereby acknowledges that it has agreed to accept compensation under the Agreement in the sum of payable upfront, for services to be performed by the Escrow Holder pursuant to this Agreement,. out-of- pocket expenses and legal expenses to be reimbursed at cost from legally available funds of the City. The Escrow Holder shall have no lien or claim against funds in the Escrow Account for payment of obligations due it under this Section. SECTION 13. TERM. This Agreement shall commence upon its execution and delivery and shall terminate when the Refunded Bonds have been paid and discharged in accordance with the proceedings authorizing the Refunded Bonds, except as provided in Section 10. SECTION 14. SEVERABILITY. If any one or more of the covenants or agreements provided in this Agreement on the part of the City or the Escrow Holder to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agteem~nts herein contained shall be null and void and shall in no way affect the validity of the remaining provisions of this Agreement. SECTION 15. AMENDMENTS TO THIS AGREEMENT. This Agreement is made for the benefit of the City and the holders fro11:1 time to time of the Refunded Bonds and it shall not be repealed, revoked, altered or amended in whole or in part without the written consent of all affected holders, the Escrow Holder and the City; provided, however, that the City and the Escrow Holder may, without the consent of, or notice to, such holders, enter into such agreements supplemental to this Agreement as shall not adversely affect the rights of such holders and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or mote of the following purposes: (a) to cure any ambiguity or fotmal defect or omission in this Agreement; (b) to grant to, or confer upon, the Escrow Holder, for the benefit of the holders of the Refunded Bonds any additional rights, remedies, powers. or authority that may lawfully be granted to, or conferred upon, such holders or the Escrow Holder; (c) to subject to this Agreement additional funds, securities or properties; and (d) to accommodate the transfer of the funds to the Escrow Holder pursuant to the provisions hereof. The Escrow Holder shall, at its option, be entitled to request at the City's expense and rely exclusively upon an opinion of nationally recognized attorneys on the subject of municipal bonds acceptable to the City with respect to compliance with this Section, including the extent, if any, to which any change, modification, addition or elimination affects the rights of the holders of the Refunded Bonds or that any instrument executed hereunder complies with the conditions and provisions of this Section. SECTION 16. COUNTERPARTS. This Agreement may be executed in several counte1parts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. 00361211-2 6 AGENDA ITEM# 6A AUGUST 11, 2014 SECTION 17. GOVERNING LAW. This Agreement shall be construed under the laws of the State of Florida. [Remainder of page intentionally left blank] 00361211-2 7 AGENDA ITEM # 6A AUGUST 11,2014 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers and their corporate seals to be hereunto affixed and attested as of the date flrst above written. ATTEST: By:------------- Title: 00361211-2 8 CITY OF ATLANTIC BEACH, FLORIDA By:------------- Name: Nelson VanLiere Title: City Manager WELLS FARGO BANK, N.A., Escrow Holder By: ____ ~--------------------- Name: Title: ------------------------------ Period Ending 10/01/2014 SCHEDULE A TOTAL DEBT SERVICE FOR City of Atlantic Beach, Florida Utilities System Revenue Refunding Bonds, Series 2004 Principal Interest Total $ $ $ City of Atlantic Beach, Florida Utilities System Revenue Bonds, Series 2010 A Bonds AGENDA ITEM# 6A AUGUST 11, 2014 Period Ending Principal Interest Redemption Premium Total 10/01/2014 $ $ $ $ City of Atlantic Beach, Florida Utilities System Revenue Refunding Bonds, Series 2010 B Bonds Period Ending Principal Interest Total 8/22/2014 $ $ $ 00361211-2 9 Exhibit1: NOTICEOFREDEMYnON CITY OF ATLANTIC BEACH, FLORIDA UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES2004 Dated: August 18, 2014 Maturing: October 1, 2015 through October 1, 2025 AGENDA ITEM# 6A AUGUST 11, 2014 NOTICE IS HEREBY GIVEN, on behalf of the City of Atlantic Beach, Florida, that the outstanding Series 2004 Bonds maturing in the years 2015 through 2025, inclusive, will be redeemed on October 1, 2014, at the redemption price of the principal amount of each Series 2004 Bond to be redeemed together with interest accrued thereon to October 1, 2014. The Series 2004 Bonds to be redeemed are: Maturity Principal Interest Redemption CUSIPNo. (Octob~r 1) Amount Price 2015 $ 940,000 $ 100% 04825P BB4 2016 975,000 100% 04825P BC2 2017 1,010,000 100% 04825P BDO 2018 1,050,000 100% 04825P BE8 2019 1,090,000 100% 04825P BF5 2020 1,130,000 100% 04825P BG3 2021 1,185,000 100% 04825P BH1 2022 1,235,000 100% 04825P BJ7 2023 1,285,000 100% 04825P BK4 2024 1,340,000 100% 04825P BL2 2025 1,400,000 100% 04825P BMO Payment of the redemption price, including accmed interest on such Series 2004 Bonds to the date of redemption will be made on or after such redemption date at the office of the Paying Agent for the Series 2004 Bonds upon surrender thereof. Interest on such Series 2004 Bonds will cease to accrue from and after such redemption date. NOTE: The CUSIP numbers appearing herein have been included solely for the convenience of holders of the Series 2004 Bonds. No representation has been made as to the correctness or accuracy of the CUSIP numbers, either as printed on the Series 2004 Bonds or as contained in this Notice of Redemption. 00361211-2 10 AGENDA ITEM #6A AUGUST 11,2014 IMPORTANT TAX INFORMATION. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Paying Agent may be required to withhold 28% of any redemption proceeds (including accrued interest) made to the holders of the referenced Series 2004 Bonds who fail to provide and certify under penalty of perjury, a correct taxpayer identification number on or before the date the Series 2004 Bonds are presented for payment. Those holders who are required to provide their correct taxpayer identification number or Internal Revenue Se1vice Form W-9 and who fail to do so may also be subject to a penalty. DATED this 12th day of August, 2014. 00361211-2 11 Exhibit2 NOTICE OF CURRENT REFUNDING AND DEFEASANCE CITY OF ATLANTIC BEACH, FLORIDA, AGENDA ITEM# 6A AUGUST 11,2014 UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004 NOTICE IS HEREBY GIVEN, that the City of Atlantic Beach, Florida has inevocably deposited with Wells Fatgo Bank, N.A, as Escww Agent (the "Esctow Agent"), in trust, and inevocably set aside fat such payment, sufficient moneys to pay the principal of and interest thereon to the redemption of the City of Atlantic Beach, Florida, Utilities Revenue Refunding Bonds, Series, 2004 maturing in the years 2015 thtough 2025, inclusive (the "Refunded Series 2004 Bonds"). The Refunded Series 2004 Bonds consist of the following: Maturi~ Principal Interest Redemption CUSIPNo. (October 1) Amount Price 2015 $ 940,000 $ 100% 04825P BB4 2016 975,000 100% 04825P BC2 2017 1,010,000 100% 04825P BDO 2018 1,050,000 100% 04825P BE8 2019 1,090,000 100% 04825P BF5 2020 1,130,000 100% 04825P BG3 2021 1,185,000 100% 04825P BH1 2022 1,235,000 100% 04825P BJ7 2023 1,285,000 100% 04825P BK4 2024 1,340,000 100% 04825P BL2 2025 1,400,000 100% 04825P BMO The Refunded Series 2004 Bonds have been refunded, and will be redeemed on October 1, 2014, at a price equal to the principal amount of such bonds to be redeemed, plus accrued interest. At such time the lien of the Refunded Series 2004 Bonds on the Pledged Revenues will be defeased. A notice of redemption will be mailed to the registered owners of the Refunded Series 2004 Bonds at least thirty days prim to the scheduled redemption date of October 1, 2014. WELLS FARGO BANK, NA., as Escrow Agent This notice is fat your information only; you are not required to take any action at this time. 00361211-2 12 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: ORDINANCE NO. 15-14-14 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTING ORDINANCE NO. 15-95-7 ENACTED BY THE CITY COMMISSION ON NOVEMBER 13, 1995, AS AMENDED AND SUPPLEMENTED (THE "ORIGINAL ORDINANCE"); AUTHORIZING THE ISSUANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 TO REFUND THE CITY'S OUTSTANDING UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004, UTILITIES SYSTEM REVENUE BONDS, SERIES 2010A-1 AND UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 20 lOB; APPROVING A FORM OF LOAN AGREEMENT AND AUTHORIZING EXECUTION AND DELWERY OF THE LOAN AGREEMENT AND OTHER ACTION IN CONNECTION WITH THE DELWERY OF SUCH BOND; PROVIDING FOR SALE OF THE BOND BY RESOLUTION FOLLOWING SOLICITATION OF COMPETITWE PROPOSALS FROM COMMERCIAL BANKS AND NEGOTIATIONS WITH THE SUCCESSFUL BIDDER; PLEDGING THE CITY'S PLEDGED REVENUES DESCRIBED IN THE ORIGINAL ORDINANCE; AND PROVIDING AN EFFECTWE DATE. SUBMITTED BY: Nelson VanLiere, City Manager DATE: June 14, 2014 AGENDA ITEM# 7A AUGUST 11, 2014 BACKGROUND: At the April14, 2014 Regular City Commission Meeting, the City Manager reported that he had been working with the City's Financial Advisor, Dunlap & Associates, Inc., and Bond Counsel, Lewis, Longman and Walker, P.A., regarding refinancing the City's outstanding Utility Bonds to save the City debt costs in the Utility and Stormwater Funds. A Request for Proposals, RFP 14-07, was i_ssued and proposals were submitted by four financial institutions. The Financial Advisor's recommendation and Summary of Responses is attached. The estimated present value savings to the City at the lowest rate proposed of 2.33% is $1,423,950 or an annual debt service savings of approximately $145,000 through loan payoff in 2025. The outstanding balance of the bonds to be refinanced is approximately $14 million. The interest rates on these bonds are variable from 3.625% to 4.500% on the Series 2004 and fixed of 3.590% and 3.68% on the Series 201 OA-1 and Series 201 OB, respectively. The City may only incur debt by ordinance, per the City's Charter. Subject and pursuant to the provisions of this Ordinance, the City is authorized to incur a Loan and to issue the Bonds in evidence, thereof, upon substantially the terms of the Loan Agreement attached hereto as Exhibit A, as such terms may be modified by resolution adopted at the time of closing of the Bonds. All of the terms and covenants contained in the Loan Agreement are incorporated herein by reference. The Bond Ordinance and Loan Agreement, upon the funding of the Loan and the issuance of the Bonds, shall constitute a contract between the City and the Lender. RECOMMENDATION: ATTACHMENTS: AGENOi\ ITI~M #7A AUGUST II, 21114 Approve Ord inance No. 15-14-14 and a uthor ize the Mayor and City Manager to sign all related docum ents where appl'opriate for each to sign. Ordinance No. 15-J 4 -14 with Loan Agreement, Recommendation from Dunlap and Ass oci ate s, Inc. Summary ofResponses and Exhibit - REVIEWEDBYCITYMANAGER: ~ ?/'.4-~~ ORDINANCE NO. 15-14-14 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTING ORDINANCE NO. 15-95-7 ENACTED BY THE CITY COMMISSION ON NOVEMBER 13, 1995, AS AMENDED AND SUPPLEMENTED (THE "ORIGINAL ORDINANCE"); AUTHORIZING THE ISSUANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $14,000,000 TO REFUND THE CITY'S OUTSTANDING UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2004, UTILITIES SYSTEM REVENUE BONDS, SERIES 2010A-1 AND UTILITIES SYSTEM REVENUE REFUNDING BONDS, SERIES 2010B; APPROVING A FORM OF LOAN AGREEMENT AND AUTHORIZING EXECUTION AND DELWERY OF THE LOAN AGREEMENT AND OTHER ACTION IN CONNECTION WITH THE DELIVERY OF SUCH BOND; PROVIDING FOR SALE OF THE BOND BY RESOLUTION FOLLOWING SOLICITATION OF COMPETITIVE PROPOSALS FROM COMMERCIAL BANKS AND NEGOTIATIONS WITH THE SUCCESSFUL BIDDER; PLEDGING THE CITY'S PLEDGED REVENUES DESCRIBED IN THE ORIGINAL ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM# 7A AUGUST 11, 2014 WHEREAS, the City Commission of the City of Atlantic Beach, Florida (the "City") has determined that it will achieve debt service savings by refunding the Refunded Bonds as herein defined; NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA: Section 1. AUTHORITY FOR THIS ORDINANCE. This Ordinance is enacted pursuant to the provisions of the Act, as defined in the Loan Agreement, a form of which is attached hereto as Exhibit A. Section 2. DEFINITIONS. All terms m this Ordinance shall have the meanings as defined in the Loan Agreement. Section 3. REFUNDING AUTHORIZED. There is hereby authorized the refunding of the City's outstanding Utilities System Revenue Refunding Bonds Series 2004, Utilities System Revenue Bonds, Series 2010A-1, and Utilities System Revenue Refunding Bonds, Series 2010B (the "Refunded Bonds"), in order to achieve debt service savings. Section 4. AUTHORIZATION OF LOAN AND BOND. Subject and pursuant to the provisions of this Ordinance, the City is authorized to incur a Loan and to issue the Bond as security therefore, upon substantially the terms of the Loan Agreement attached hereto as Exhibit A, as such terms may be modified by resolution adopted at the time of sale of the Bond. All of the terms and covenants contained in the Loan Agreement are incorporated herein by reference. This Ordinance and the Loan Agreement, upon the funding of the Loan and the issuance of the Bond to the Lender, shall constitute a contract between the City and the Lender. 00350267-1 Section 5. SALE OF BOND. AGENDA ITEM# 7A AUGUST 11,2014 (A) Findings. It is here by found, determined and declared, that in accordance with the provisions of Part III, Chapter 218, Florida Statutes, a negotiated sale of the Bond to a bank to evidence a commercial loan is in the best interest of the City because solicitation of competitive proposals from banks is likely to achieve the lowest cost for the Refunding. (B) The City has solicited proposals for purchase of the Bond from banks. Following evaluation of the responses received and negotiation with the bank offering the proposal most advantageous to the City, the City is hereby authorized to complete the transaction by resolution specifying the terms of the Bond, including but not limited to interest rate, interest payment dates, maturity dates and amounts, and terms of prepayment, and making such modifications to the terms of the Loan Agreement as may be then approved by such resolution of the City Commission. Section 6. NECESSARY ACTION. The Mayor, the City Manager and the City Clerk are authorized and directed to execute and deliver the Loan Agreement and the Bond pursuant to the resolution described in Section 5 hereof without further authority from the City Commission. The Mayor, City Manager and City Clerk are designated as the agents of the City in connection with the issuance and delivery of the Bond and are authorized and empowered to take all actions and steps to execute and deliver any and all instruments, documents or contracts on behalf of the City which are necessary or desirable in connection with the execution and delivery of the Loan Agreement and the Bond, and which are not inconsistent with the terms and provisions of this Ordinance and the Loan Agreement. Section 7. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its enactment. 00350267-1 2 AGENDA ITEM#7A AUGUST 11, 2014 PASSED AND ADOPTED on first reading by the City Commission of the City of Atlantic Beach, Florida at a regular meeting duly called and held this __ day of ____ ,2014. PASSED AND ADOPTED on second and final reading by the City Commission of the City of Atlantic Beach, Florida at a regular meeting duly called and held this __ day of , 2014. Approved as to form, sufficiency and correctness: Richard Komando, City Attorney ATIEST: Donna L. Bartle, City Clerk 00350267-1 CITY OF ATLANTIC BEACH, FLORIDA Carolyn Woods, Mayor, Presiding Officer 3 Exhibit A -Loan Agreement 00350267-1 EXHIBIT TO ORDINANCE 4 AGENDA ITEM# 7 A AUGUST 11,2014 00350267-1 LOAN AGREEMENT between CITY OF ATLANTIC BEACH, FLORIDA and Dated as of ______ , 2014 $ ____ _ UTILITIES SYSTEM REVENUE REFUNDING BOND SERIES 2014 AGENDA ITEM# 7A AUGUST 11,2014 DRAFT JUNE 11, 2014 LOAN AGREEMENT AGENDA ITEM# 7A AUGUST 11, 2014 THIS LOAN AGREEMENT (this "Agreement"), dated as of _____ _ 2014, by and between the CITY OF ATLANTIC BEACH, FLORIDA (the "City"), a municipal corporation under the laws of the State of Florida, and ___________ (the "Lender"), WITNESSETH: WHEREAS, the City has, by adoption of Ordinance No. (the "Ordinance") on , 2014, authorized the refunding of the City's outstanding Utilities System Revenue Refunding Bonds, Series 2004, Utilities System Revenue Bonds, Series 2010A-1 and Utilities System Revenue Refunding Bonds, Series 20 lOB (the "Refunded Bonds") by a loan (the "Loan") from the Lender and the issuance of the Bond in the principal amount of $ __ to the Lender to secure the Loan;and · WHEREAS, the City has, by Resolution No. __ , adopted on June_, 2014 (the "Resolution") determined to obtain the Loan from the Lender and to issue the Bond to secure the Loan; NOW THEREFORE, in consideration of the premises and the respective representations and covenants herein contained, the parties hereto agree as follows: Section 1. Definitions. The following terms in this Agreement shall have the following meanings, unless the text otherwise expressly requires: "Act" means Chapter 166, Florida Statutes, the Original Ordinance and other · applicable provisions of law. "Bond Ordinance" shall mean the Ordinance, as supplemented by the Resolution. "Bond" means the City's $ Utilities System Revenue Refunding Bond, Series 2014, issued to the Lender as a single Bond in the principal amount of $ as security for the Loan. "City" means the City of Atlantic Beach, Florida "Code" means the Internal Revenue Code of 1986, as amended. "County" means Duval County, a political subdivision of the State of Florida. "Loan" means the loan agreed to be made to the City by the Lender pursuant to Section 3 below. "Original Ordinance" shall mean Ordinance No. 15-95-7 enacted by the City Commission on November 13, 1995, as amended and supplemented. Except as 00350267-1 AGENDA ITEM# 7A AUGUST 11, 2014 otherwise provided herein, all capitalized terms used and/ or defined in the Original Ordinance shall have the same meanings in this Agreement. "Refunded Bonds" shall mean the City's outstanding Utilities System Revenue Refunding Bonds, Series 2004, Utilities System Revenue Refunding Bonds, Series 20 lOA-1, and Utilities System Revenue Refunding Bonds, Series 20 lOB. Section 2. Findings. It is hereby found, determined and declared by the City that: A. The refunding of the Refunded Bonds will further the purposes of the Act and will reduce the borrowing costs of the City. B. The City now owns, operates and maintains the System and receives Pledged Revenues each year which are not presently pledged for payment of any debt, except the Refunded Bonds and the Subordinated Bonds, as defined in the Original Ordinance, and are legally available to pay the Bond. Such Pledged Revenues will be sufficient to pay all principal of and interest on the Bond when due and to make all required payments under the Original Ordinance and the Bond Ordinance. Section 3. Loan. The Lender agrees to make a Loan to the City for the purpose of refunding the Refunded Bonds. The Loan shall be evidenced by the Bond, containing the terms in the Bond Ordinance and this Agreement, which shall be substantially in the form provided in the Resolution. Section 4. Terms and Covenants of Prior Ordinances Apply. All of the terms and covenants of Section 6.08 and Article III and Article V, except Section 5.04 thereof relating to continuing disclosure, of the Original Ordinance, are incorporated by reference herein and shall apply to the Loan and the Bond for the benefit of the Lender as fully as if set out herein. Upon compliance with the requirements of the Original Ordinance for the issuance of Additional Parity Bonds, the Bond shall be Additional Parity Bonds for all purposes of the Original Ordinance. Section 5. Prepayment. The Bond shall be prepayable before maturity as provided in the Resolution. Section 6. Application of Loan Proceeds. All proceeds received from the Loan shall be either (1) deposited on the date of receipt with the Paying Agent for the Refunded Bonds, in an amount sufficient to pay the redemption price for the Refunded Bonds on the earliest practicable date of redemption, to be held uninvested by the Paying Agent until the redemption date, or (2) deposited in an irrevocable escrow account with an escrow agent, in a sufficient amount which, when invested to the redemption date for the Refunded Bonds, will be sufficient to pay the redemption price of the Refunded Bonds on the redemption date, all to be accomplished in a manner such that the lien on the Pledged Revenues securing payment of the Refunded Bonds will be defeased in accordance with the Original Ordinance. The Lender shall not have a lien on the money so deposited as provided in this Section. 00350267-1 2 AGENDA ITEM # 7 A AUGUST 11, 2014 Section 7. Waiver of Jury Trial. WITH RESPECT TO ANY SUIT OR ACTION BETWEEN THE CITY AND THE LENDER RELATING TO THE LOAN, OR THIS LOAN AGREEMENT, THE CITY AND THE LENDER EACH EXPRESSLY WAIVES ANY RIGHT TO A JURY TRIAL, AND AGREES THAT THE EXCLUSIVE VENUE FOR ANY SUCH SUIT OR ACTION SHALL BE DUVAL COUNTY, FLORIDA. Section 8. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand delivered or mailed by registered or certified mail, postage prepaid, to the parties at the following addresses: As to the City: As to the Lender: Notice Addresses Nelson Van Liere City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233-5445 (904) 247-5807 Any of the above parties may, by notice in writing given to the others, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Communication to the Lender via telecopier shall be confirmed by delivery of a hard copy thereof to the Lender not later than two (2) Business Days after such communication by telecopier. Section 9. Qualified Tax-Exempt Obligation. The City hereby represents and finds that it reasonably anticipates not more than $30,000,000 of tax-exempt obligations (other than certain private activity bonds) will be issued by the City and its subordinate governmental entities in calendar year 2014. The City hereby directs its Mayor, or the Acting City Manager, or their delegates, to recertify these representations upon issuance of the Bond, and the Bond is hereby designated as "qualified tax-exempt obligation" under Section 265(b)(3) of the Code. Section 10. No Recourse. No recourse shall be had for the payment of the principal of and interest on the Bond or for any claim based on the Bond or on this Agreement, against any present or former member or officer of the City Commission or any person executing the Bond. Section 11. Amendments, Changes and Modifications. This Agreement may be amended by written agreement of the City and the Lender. Section 12. Binding Effect. To the extent provided herein, this Agreement shall be binding upon the City and the Lender and shall inure to the benefit of the City and the Lender and their respective successors and assigns. 00350267-1 3 AGENDA ITEM# 7A AUGUST 11, 2014 Section 13. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 14. Execution in Counterparts. This Agreement· may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 15. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 00350267-1 4 AGENDA ITEM# 7A AUGUST 11, 2014 IN WITNESS WHEREOF, the City and the Lender have executed and delivered this Loan Agreement as of , 2014. (SEAL) ATIEST: By: ______________________________ __ Donna L. Bartle, City Clerk 00350267-1 5 CITY OF ATLANTIC BEACH, FLORIDA By: __________________________ __ Carolyn Woods, Mayor [LENDER] By: __________________________ __ Its: Dunlap & Associates Dunlap & Associates, Inc. June 16, 2014 Mr. Nelson VanLiere City Manager City of Atlantic Beach 800 Seminole Road Atlantic Be.ach, FL 32233 Financial Consultants Subject: City of Atlantic Beach, :Florida Dear Nelson, Utilities System Revenue Refunding Bond, Series. 2014 Letter of Recommendation AGENDA ITEM# 7A AUGUST 11, 2014 Dunlap & Associates, Inc. has reviewed the proposals submitted by the Bank of Americ11, J.P. Morgan Chase Bank, Sun Trust and TD Bank. (See attached Summar)r of Responses) · As you will note, TDBank's Option 1 provided the lowest rate of2.33% for the Utilities System Revenue Refunding Bond, Series 2014 ("2014 Bond"), based on a fonnula that uses the 10 year Libor Swap Rate as a benclunark. The 10 yeal' Libor Swap rate is a variable rate which changes depending on market conditions, therefore the i33 % interest rate may vary up until the time the rate is set. The present vaiue savings to the City at the 2.33% rate is $1,423,950 or 9.57% of refunded bonds. We recommend that the City accept TD Bank's. Option I, based on the fact that TD Bank offers the lowest rate. If approved, the 2014 Bond is scheduled to close on August 18, 2014. Please feel free to call with any questions. We appreciate the opportunity to be of service to· the· City of Atlantic Beach, Florida. Sincerely, 1146 Keyes Avenue Winter Park, Florida 32789 Telephone: 407.678.0977 Telecopy: 407.678.6240 ~ I l I ! i I I I I I Alt·irt Tru~ lnterasl Cost Jndica!l\le Pl'lcing RateloC:ked Rate For:m1.1la San!<: Counsel Fee (Sank CounseQ Flnai MatUrity lnterilllt Ca!culallon Term of Proposal Default Rate ! Financial Staiert.ents Required lothe< Provtsbn City of Atlantic Beach Utilities system Revenue Refunding aono, Secnes 2014 {2004, 20101\-1, and 2010B) Summary of Responses ln OrdQJ' by Al!·in Ttua lnrorest Cgst Coley Jones (904 j 2GS..2504 Jacks:on.vine"\ Hcrida 2.33% No (12bpto 8!18114} 71)% 10yr LtBOR Swap Rate+ ;,:;bps. $i;,!lO!l (TSD) 10111.2.025 30{360 Make-Whole! 110~'{:. NIAI Yes! Yes Cummt Interest l?lus 6% 270 Days .. ~\ 2..SS%\ No (i2bp to anat14)j I I 70o/cj 1 Oyr·UBOR Swap Ra!e.., 66bpsl $6,000 (TBD) 1Q/1/2025 30/'3601 Any:ime@ ?arl ·110~-'0 NIA Yes Yes current Interest plus 6% 270 Days I 2.66%1 ' 2.60%1 No {Set upon acceptanca} I 76% 10j!rTre:asury + G1,7bpsl sa • .soo 1 1 (Hoiland & Knight) 'I0/1i20251 30iooo Non-calrabte l 110%1 e/1:21141 Yesj No I ! ;:1 270 Da~'S~ I i I II 2•70'1.! ~64o/.l No (Sat 2 doys priorto Closlllg)j 79mth Swap. Rate .. ~52bps ~.soo (TBD) 10/1120251 '30/~6()1 Make-Whole NJA 6112!14 Yes Yes No Sfl,5oo: (Holianct & Knight) 1011/2025 1011119@ Par 1 TO'o/o 8112/H 1 Yes! No I No! NfAI 271 Days\ I t j I ~ i ' I I l l ! 1 I I I contact Person I iAII-in Truo hltetost:Cost i !Indicative Priclng l i Rare Locked ! ! R;2;te Formu!a ! I Bank Counsel Fee , (Bank Counsel) I ! Final MaMlty ! i Interest Catct:ralion I t Prepayment i 1·'\<;idltions:f Bonds Test ! Term of Pro pus at I I Tax<~bility Adjt1sfmenl ; lcorporme Ta:< Rata> Adjus!ment i ; ! Deposiiof'Y Relationship ! i Default Rate ~ {Anantlal Statements R-equ~red l f Other Provision City of Atlantic Beach Utilities System Revenue Refunding Bond, Series 2(}14 (2004, 2010A·1, and 2()10B} Summary of Responses in Order by AJHn True Interest Cost I Renee UgcnlDan Lally ' (4D4i~s::s-2726 Atlanta, Georgia 3,04% No (Set upor~acceptance) 76% 10yr TreasUl)' ... 99.7bps SB,SOO (Holland & Knight) 10/112025 i :30~60 ' 10i2!15 ® PaA ·= ~ 111}%! t att2/14l Yes 1 N t • 0·1 ,, N/A 270 Days' .U:sa Hayes (004) 632.-25llll Jacksonville. Florida 3.14% No (Sbps. for 75 days)' $8,500: (Holland & !".night). 1011/2025 301350 Yes No 24bps to delete Corporaie Tax Lanquage Llsa'Hayes (9.04) 632o2599 Jacksonville, Florida 3.24% No (Sbps for75 days) NlA ·ss.soo '(Hoiland & .Knigb!) 10/112025 30/3£0 ·After 1 D/1119 @ i"ar G!16i14 Yes Yes No Lesser ofi'+B%.or. Maximum .by Law 210 .Dl!ys 24bps fo d!tl:~te Co~orate Tax L::uiiJuaae lisa Hayes {904) 532·2599 Ja.cksonvill!!:,. Florfda l i 3.3~'0 ! ::1..33%! I No(Sbps for75 da~s)f wAI sa.sooj (Noll<md a Knight)! I 10!1f2025i I ! :Jo;aGoj Anytime @ Par1 i 110%J I Gll6i14\ I Yes1 Yes! No! Le,;ser of P+S% or Maximum b·t Law~ 210 Daysl i 24bps lo delctQ Corpcrat01 Taxi L-anguaael CITY OF ATLANTfC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Retirement Ordinance No . 58-14-38 AN ORDJNANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMJNISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2- 268, OISABILTTY; AMENDING SECTION 2-274, MAXIMUM PENSION; PROVIDING FOR CODlFICATION; PROVIDING FOR SEVERABILITY OF PROVJSIONS; REPEALING ALL ORDJNANCES l N CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SUBMITTED BY: Nelson Van Liere, City Manager DATE: J tme 13,20 14 AGENDA ITEM tJ 713 AUGUST II , 20 14 BACKGROUND: A t th e May 15. 20 14 Pension Board mee ting of the General Emp lo yees' Retirement System, the pension attorney pre se nted the proposed ordinan ce referenced above that in cludes amendments to the cu JTent ordinance to clarify language rega rdin g disa bility benefits and to comp ly with recent changes to th e Interna l Reve nue Co de (IRC). T hese a re mandatory amend ments to ensu re the continuation of th e p lan 's tax qualified status . The Board approved presenting thi s ord inance to the C it y Commission and reque sted an impact study be performed by the Board 's actuary, Gabriel Ro eder Smith (GRS) to determine th e cost of amending th e ordinance. As repotted in the attached Actuarial Im pact Statement, authori zed by the Board at the Jun e 12, 2014 meeting to be signed by the Pension Adm ini strator, th ese changes wou ld ha ve no sig nificant cost impact to the plan beneftts. RECOMMENDATION: App rove Ordinance No. 58-14-38 ATTACHMENTS: Ordinance No. 58-14-38 and Actuarial Im pact Statement REVIEWED BY CITY MANAGER: --:/1. V a-. ~ Law Offices Christiansen & Dehne r, P .A. 63 Sarasota Cent er Blvd . S uit(! J 07 S am~olo~, Flo rid a 14240 • 94 1 ,J 77 -.?.200 • Fa " lN l • 3 77 -41H~ /\pril 16, 20 14 Mr. Ne lso n Va n Lil.:t'l! 1\ll u nti ~.: lk:'H.:h CJ~.:n c rnl Emp lo yees ' Rc lin.:tn cnt Sysh.:m ~00 S~.:min olc Road 1\tl nnli c Beach, fL 32233-5455 Re : C ity or Atlan ti c 13cac h Ge neral l:mployt:t:s' R~..·tin.:m c.:nl Sys tem Dear Ne lso n: AG EN DA IT 8M /1713 AUGU ST I I, 20 14 Em:lose d ph:asc li nd H prop()SCd ordinan ce amend in g lh c 'it y or /\tl a nt ic lkn<:h (kncral l·:mpl oyces' Rclin.:mcnt Sys te m. Thi s ortlinan <.:e anwnd s Sect ion 2-26~L Di sabilit y. to add add itiona l c lari li e at io n lang ua ge o n th <.: 1 i me allowed l'or u rm:111bcr lll a ppl y !'o r d is abi I il y be m: li ls i 1· t~:rmi nat t:d hy th e 'ity lor m cdi ~.:a l ro.:aso ns. 'I hi s onlirwrH.:c al::in amt:nds Seclio n 2-27 4. Max imum Pen s io n. to co mpl y with addilion nl recc nt c han gt:s t o the lntL:rna l Rt:\'Ctlltl! Code (IRC ) relating lO tax qualill~o·d pc ns iu n plan s s u~.:h as thi s pla n. Th ese am L:tH.It m:nt s durify la ngua ge rcquin:tl by th e II{(' a nd ar~: manda to ry a mc ndm L:nt s to L:ns un: 1 he co ntinu ation ur th e plan's wx qual i lkd st at us . Hy copy or thi s ktt~r to th e plan 's actuary . (iabri c l R n~J ..:r S mith & Cu rnp an). I am requ L:s ti ng thai th ey prov id e you wi th u ktter inu ka tin g that th e re is 11 0 cos t <~ssoc iar nl with the adoption or this ordinance. Pl ease pro v id e n t.:o py o l't hi s o rdinan ce to eac h membe r ol 'th c Board lor rcvk\\ anJ r1ppro\'al at lh e ll CXtlllCC tin g. SRC/dm e nc los ure c..:: J ames Ritto. '' ith enclos ure St:o tl R. 'hri s tian scn ORDINANCE NO. 58-14-38 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-268, DISABILITY; AMENDING SECTION 2-274, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM# 7B AUGUST 11, 2014 BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA; SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division 3, General Employees' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-268, Disability, subsection (a), Disability benefits, to read as follows: * * * * * (a) DjsabjJity benefits. Any member who has accrued five (5) or more years of credited service, who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a general employee, shall, upon establishing the same to the satisfaction of the board, be entitled to a monthly pension equal to two and eight-five one hundredths percent (2.85%) of his average fmal compensation multiplied by the total years of credited service for members hired before April 24, 2005, and two and one-half percent (2.5%) of his average fmal compensation multiplied by the total years of credited service for members hired on or after April 24, 2005. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the City for medical reasons may apply for a disability vtithin ninety (90) days after termination. Notwithstanding the previous sentence, if a member is terminated by the City for medical reasons, the terminated person may apply for a disability benefit if the application is filed with the board within ninety (90) days from the date of termination. If a timely application is received, it shall be processed and the terminated person shall be eligible to receive a disability benefit if the board otherwise determines that he is totally and permanently disabled as provided for above. * * * * * SECTION 2: That Chapter 2, Administration, Article VI, Employee Benefits, Division 3, General Employees' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended by amending Section 2-274, Maximum Pension, to read as follows: Sec. 2-274. Maximum pension. (a) Bask linlitatjon. Notwithstanding any other provisions of this system to the contrary, the member contributions paid to, and retirement benefits paid from, the system shall be limited to such extent as may be necessary to conform to the requirements of IRC Section 415 for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that exceeds the limits specified in IRC Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar amount specified in IRC Section 415(b)(l)(A) ($160,000), subject to the applicable AGENDA ITEM# 78 AUGUST 11, 2014 adjustments in IRC Section 415(b) and subject to any additional limits that may be specified in this System. For purposes of this section, "limitation year" shall be the calendar year. For purposes of Code Section 415(b), the "annual benefit" means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) without regard to the benefit attributable to after-tax employee conttibutions (except pursuant to Code Section 415(n) and to rollover contlibutions (as defined in Code Section 415(b)(2)(A)). The "benefit attlibutable" shall be detetmined in accordance with Treasury Regulations. (b) Adjustments to Basic Limitation for F01m of Benefit. If the benefit under the plan is other than the annual benefit desetibed in subsection (a), then the benefit shall be adjusted so that it is the equivalent of the annual benefit, using factors presctibed in Treasmy Regulations. If the fonn of the benefit without regard to any automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the fmm of benefit to an actuarially equivalent amount (detetmined using the assumptions specified in Treasury Regulation Section 1.415(b )-1 (c )(2)(ii)) that takes into account the additional benefits under the fmm of benefit as follows: (1) For a benefit paid in a form to which IRC section 417(e)(3) does not apply (generally, a monthly benefit), the actumially equivalent straight life annuity benefit that is the greater of: a. The annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity stmting date as the fmm of benefit to the member, or b. The annual amount of the straight life annuity commencing at the same annuity stmting date that has the same actumial present value as the fmm of benefit payable to the member, computed using a 5 percent interest assumption (or the applicable statutory interest assumption) and (i) for years p1ior to January 1, 2009, the applicable mmtality tables desctibed in Treasury Regulation Section 1.417(e)-l(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Rulings 2001-62), and (ii) for years after December 31, 2008, the applicable mmtality tables desclibed in IRC section 417(e)(3)(B) (Notice 2008-85 or any subsequent Intemal Revenue Service guidance implementing IRC section 417(e)(3)(B)); or (2) For a benefit paid in a fmm to which IRC section 417(e)(3) applies (generally, a lump sum benefit), the actuatially equivalent straight life annuity benefit that is the greatest of: a. The annual amount of the straight life annuity commencing at the annuity sta1ting date that has the same actuarial present value as the pmticular fmm of benefit payable, computed using the interest rate and mmtality table, or tabulm· factor, specified in the plan for actumial expetience; b. The ammal amount of the straight life annuity commencing at the annuity stmting date that has the same actumial present value as the particular fmm of benefit payable, computed using a 5.5 percent interest assumption (or the applicable statutory interest assumption) and (i) for years p1ior to January 1, 2009, the applicable mmtality tables for the disttibution under Treasury Regulation Section 1.417(e)-l(d)(2) (the mortality table specified in Revenue Ordinance No. 58-14-38 -2-dm/ab/gen/04-09-14.ord AGENDA ITEM# 7B AUGUST 11, 2014 Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 200 1-62), and (ii) for years after December 31, 2008, the applicable mmtality tables described in IRC section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing IRC section 417(e)(3)(B)); or c. The annual amount of the straight life annuity commencing at the annuity statting date that has the same actuatial present value as the patticular fmm of benefit payable (computed using the applicable interest rate for the disttibution under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year Treasury rate (ptior to J anuat·y 1, 2007, using the rate in effect for the month ptior to retirement, and on and after January 1, 2007, using the rate in effect for the first day of the pla11 year with a one-year stabilization petiod)) and (i) for yea~·s ptior to January 1, 2009, the applicable mmtality tables for the disttibution under Treasury Regulation Section 1.417(e)-1(d)(2) (the mmtality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 200 1-62), and (ii) for yeat·s after December 31, 2008, the applicable mmtality tables desctibed in IRC section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing IRC section 417(e)(3)(B)), divided by 1.05. ill The actuary may adjust the 415(b) limit at the annuity stmiing date in accordance with subsections (1) and (2) above. (c) Benefits Not Taken into Account. For pmposes of this Section, the following benefits shall not be taken into account in applying these limits: (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under §415(b)(2) of the IRC and Regulations thereunder to be taken into account for pmposes of the limitation of IRC Section 415(b)(l); and Ql That pmtion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity (d) COLA Effect. Effective on and after January 1, 2003, for pmposes of applying the limits under IRC Section 415(b) (the "Limit"), the following will apply: (1) A member's applicable limit will be applied to the member's annual benefit in the member's first calendar limitation year of benefit payments without regard to any automatic cost of living adjustments; (2) thereafter, in any subsequent calendar limitation year, a member's annual benefit, including any automatic cost of living increases, shall be tested under the then applicable benefit limit including any adjustment to the IRC Section 415(b )(1 )(A) dollar limit under IRC Section 415 (d), and the regulations thereunder; but (3) in no event shall a member's benefit payable under the system in any calendar limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to IRC Section 415(d) and the regulations thereunder. Ordinance No. 58-14-38 -3-dm/ab/gen/04-09-14.ord AGENDA ITEM# 7B AUGUST I I, 2014 Unless otherwise specified in the system, for purposes of applying the limits under IRC Section 415(b), a Member's applicable limit will be applied taking into consideration cost of living increases as required by Section 415(b) of the IRC and applicable Treasury Regulations. (e) Other Adjustments in Limitations. (1) In the event the member's retirement benefits become payable before age sixty-two (62), the limit presclibed by this section shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of IRC Section 415(b) of the IRC, so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two (62). (2) In the event the member's benefit is based on at least fifteen (15) years of credited service as a full-time employee of the police department of the City, the adjustments provided for in (e)(l) above shall not apply. (3) The reductions provided for in (e)(l) above shall not be applicable to disability benefits pursuant to Sec. 2-268, or pre-retirement death benefits paid pursuant to Sec. 2-267. (4) In the event the member's retirement benefit becomes payable after age sixty-five (65), for purposes of detennining whether this benefit meets the limit set forth in subsection (a) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (65). This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. (f) Less than Ten (1 0) Years of Participation or Service. The maximum retirement benefits payable under this section to any member who has completed less than ten (10) years of credited service participation with the City shall be the amount dete1mined under subsection (a) of this section multiplied by a fraction, the numerator of which is the number of the member's years of credited service participation and the denominator of which is ten (10). The reduction provided by this subsection cannot reduce the maximum benefit below 10% of the limit dete1mined without regard to this subsection. The reduction provided for in this subsection shall not be applicable to pre-retirement disability benefits paid pursuant to Sec. 2-268, or pre-retirement death benefits paid pursuant to Sec. 2-267. (g) Participation in Other Defined Benefit Plans. The limit of this section with respect to any member who at any time has been a member in any other defined benefit plan as defined in IRC Section 414(J) maintained by the City shall apply as if the total benefits payable under all City defined benefit plans in which the member has been a member were payable from one plan. (h) Ten Thousand Dollar ($10,000) Limit,· Less Than Ten Years of Service. Notwithstanding anything in this section 2-274, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this subsection (h) of section 2-274 if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the applicable IJffin limitation year and for any p1ior IJffin limitation year and the City has not any time maintained a qualified defined contribution plan in which the member participated; provided, however, that if the member has completed less than ten (10) years of credited service with the City, the limit under this subsection (h) of section 2-274 shall be a reduced limit equal to ten thousand dollars ($1 0,000) multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten (1 0). Ordinance No. 58-14-38 -4-dm/ab/gen/04-09-14.ord AGENDA ITEM# 7B AUGUST I I, 2014 (i) Reduction of Benefits. Reduction of benefits and/or conttibutions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defined benefit plans in which member participated, such reduction to be made first with respect to the plan in which member most recently accmed benefits and thereafter in such pliority as shall be detetmined by the board and the plan administrator of such other plans, and next, by reducing or allocating excess fmfeitures for defined conttibution plans in which the member participated, such reduct1on to be made first with respect to the plan in which member most recently accmed benefits and thereafter in such ptimity as shall be established by the board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and ptimity pursuant to the agreement of the board and the plan administrator of all other plans coveting such member. (j) Service D-edit Pu1r:hase Limits. (1) Effective for petmissive service credit conttibutions made in limitation years beginning after December 31, 1997, if a member makes one or more conttibutions to purchase petmissive service credit under the system, as allowed in Sections 2-283, and 2-284, then the requirements of this section will be treated as met only if: a. the requirements of IRC Section 415(b) are met, detetmined by treating the accmed benefit detived from all such conttibutions as an annual benefit for purposes ofiRC Section 415(b), or b. the requirements of IRC Section 415(c) are met, detetmined by treating all such conttibutions as annual additions for purposes of IRC Section 415(c). &.-For purposes of applying subparagraph (j)(l)a.~, the System will not fail to meet the reduced limit under IRC Section 415(b)(2)(C) solely by reason of this subparagraph&.-, and for purposes of applying subparagraph (j)(l)b. the System will not fail to meet the percentage limitation under Section 415(c)(l)(B) of the IRC solely by reason of this subparagraph e-. (2) For purposes of this subsection the tenn "petmissive service credit" means service credit- a. recognized by the system for purposes of calculating a member's benefit under the plan, b. which such member has not received under the plan, and c. which such member may receive only by making a voluntary additional conttibution, in an amount detennined under the system, which does not exceed the amount necessary to fund the benefit atttibutable to such service credit. Effective for pennissive service credit conttibutions made in limitation years beginning after December 31, 1997, such tetm may, if otherwise provided by the system, include service credit for petiods for which there is no petfmmance of service, and, notwithstanding clause (j)(2)b., may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system. ill Contribution Limits. (J 1) For purposes of applying the Code Section 415(c) limits in this subsection (j). which are incorporated by reference and for purposes of this subsection (k), only Ordinance No. 58-14-38 -5-dm/ab/gen/04-09-14.ord AGENDA ITEM# 7B AUGUST 11, 2014 and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a calendar limitation year, except as noted below and as pe1mitted by Treasury Regulations Section 1.415( c )-2, or successor regulations. Unless another definition of compensation that is permitted by Treasury Regulations Section 1.415( c )-2, or successor regulation, is specified by the system, compensation will be defined as wages within the meaning ofiRC Section 3401(a) and all other payments of compensation to an employee by an employer for which the employer is required to finnish the employee a written statement under IRC Sections 6041(d), 6051(a)(3) and 6052 and will be dete1mined without regard to any rules under IRC Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in IRC Section 3401(a)(2). a. However, for calendar limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under IRC Sections 125(a), 402(e)(3), 402(h)(l)(B), 402(k), or 457(b). For calendar limitation years beginning after December 31, 2000, compensation will also include any elective amounts that are not includible in the gross income of the employee by reason ofiRC Section 132(f)(4). b. For limitation years beginning on and after January 1, 2007, compensation for the calendar limitation year will also include compensation paid by the later of 21/z months after an employee's severance from employment or the end of the calendar limitation year that includes the date of the employee's severance from employment if: 1. the payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the employee while the employee continued in employment with the employer; or 2. the payment is for unused accmed bona fide sick, vacation or other leave that the employee would have been able to use if employment had continued. c. Back pay, within the meaning of Treasury Regulations Section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. (4 .2) Notwithstanding any other provision of law to the contra1y, the board may modify a request by a member to make a contribution to the system if the amount of the contlibution would exceed the limits provided in IRC Section 415 by using the following methods: a. If the law requires a lump sum payment for the purchase of service credit, the board may establish a pe1iodic payment deduction plan for the member to avoid a contribution in excess of the limits under IRC Sections 415(c) or 415(n). Ordinance No. 58-14-38 -6-dm/ab/gen/04-09-14.ord AGENDA ITEM# 7B AUGUST II, 2014 b. If payment pursuant to subparagraph (j)(4)a. (k)(2)a. will not avoid a cont1ibution in excess of the limits imposed by IRC Section 415(c), the board may either reduce the member's cont1ibution to an amount within the limits of that section or refuse the member's contribution. (.§.}) If the annual additions for any member for a Illiffi limitation year exceed the limitation under section 415(c) of the code, the excess annual addition will be conected as permitted under the Employee Plans Compliance Resolution System (or similar IRS conection program). (6 :)) For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this subsection @ 00 shall not exceed the annual limit under section 401 (a)(l7) of the code. (k D Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: (1) The nonnal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system, on or after January 1, 1980, shall not exceed one hundred percent (100%) of his average final compensation. However, nothing contained in this section shall apply to supplemen- tal retirement benefits or to pension increases att1ibutable to cost-of-living increases or adjustments. (2) No member of the system shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social secmity benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 3: Specific authmity is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Atlantic Beach. SECTION 4: All Ordinances or pm1s of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 5: If any section, subsection, sentence, clause, phrase of this ordinance, or the pm1icular application thereof shall be held invalid by any com1, administrative agency, or other body with appropriate jmisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 6: That this Ordinance shall become effective upon its adoption. PASSED ON FIRST READING, this 14th day of July 2014. Ordinance No. 58-14-38 -7-dm/ab/gen/04-09-14.ord PASSED AND ADOPTED ON SECOND READING, this _____ ,2014. ATTEST: Donna L. Bartle, CMC CITY CLERK Approved as to fmm: Rich Komando, Esquire CITY A TIORNEY Ordinance No. 58-14-38 -8- Carolyn Woods MAYOR AGENDA ITEM# 7B AUGUST II, 2014 day of dm/ab/gen/04-09-14.ord GRS June 4, 2014 Gabriel Roeder Smith & Company Consultants & Acwarics Mr. Nelson Van Liere Plan Administrator City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233-5445 One East Broward Blvd. Suite 505 FL Lauderdale, FL 33301-1804 RE: City of Atlantic Beach General Employees' Retirement System Actuarial Impact Statement Dear Nelson: AGENDA ITEM# 7B AUGUST 11, 2014 954.527.1616 phone 954.525.0083 fax www.gabrielroeder.com As requested by Scott Christiansen in his letter of Aprill6, 2014, please find enclosed an Actuarial Impact Statement for the proposed ordinance (also enclosed). We have determined that the plan provisions in the ordinance would have no significant cost effect to the plan benefits. Please sign the Actuarial Impact Statement as the Plan Administrator and forward the original, and one copy, along with a copy of the ordinance to the address below. Please file the Actuarial Impact statement prior to the second reading. Division of Retirement Bureau of Local Retirement Systems Post Office Box 9000 Tallahassee, Florida 32315-9000 ave any questions, please give us a call. Enclosure cc: Mr. Scott R. Christiansen 1\GEND/\ ITEM II 7B 1\UGUST II, 201 4 CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM ACTUARIAL IMPACT STATEMENT At1ached propo sed Ordinance incorporates language necess ary to update the Plan with the technical requirements of Internal Revenu e Code and includes mandatory amendments to ensure the continuation of the Plan's tax qualified status . There is no significant measurable benefit cost effect to the plan. ACTUARY, Gabriel, Roeder, Smith & Company By :~~~R Date: June 4 2014 The above changes are in compliance with Part VII , Chapter 112, Florida Statutes, and Section 14, Article X of th e State Constitution . The Actuary was provided the information in the proposed amendment. PENSION BOARD COMMIITEE By : ~Y~£~ Dat e: '/tz,/tV ~ I CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Retirement Ordinance No. 58-14-39 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DlVLSION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2- 307, DJSABTLJTY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; PROVIDING FOR CODIFJCATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SUBMITTED BY: Nelson VanLiere, C ity Manager DATE: June 13,2014 AGENDA I TEM II 7<' AUGUST II , 201 '1 BACKGROUND: At the May 15, 2014 Pension Board meeting of the Police Officers ' Retirement System, the pension attorne y presented the proposed ordinance referenced above that includes amendments to the cwTent ordinance to clarify language regarding disability benefits and to comply with recent c hanges to the Internal Revenue Code (IRC). These are mand a tory amendments to ensure the continuation of the plan's tax qualified status. The Board approved presenting this ordinance to the City Commission and requested an impact study be performed by the Board's actuary, Gabriel Roeder Smith (GRS) to determine the cost of amending the ordinance. As reported in the attached Actuarial Impact Statement, authorized by the Board at the June 12, 20 14 meeting to be signed by the P ension Admini s trator, these c hanges would have no signi fi eant cos t impact to the plan benefits . RECOMMENDATION: Approve Ordinance No. 58-14-39 ATTACHMENTS: Ordinance No. 58-14-39 and Actuarial Impact Statement . REVIEWED BY CITY MANAGER: --71, ?'a...., ;2~ l <l W O l'fkt:-. l 'hrhlti\11 "> '11 ~ JJehnL'I', J).1\. \pi II I (I ."'() I I i\11 . ~~:1 ... 1111 \ :tlllll'l'\.' t\tlill tl !l' l h·.trli l'o li n: C >l'lit'<'l o.;' H•·t it\'1111'111 S1 'i ll'll l XI lO St..'lll ll h dt· l ~o:1 d \ll.ttll i L' l h .\tlh, I· I I 1 '~'·'~·I '>'~ I ~L' t 'tt\ o l :\t l:lllltt' l kovh l 'ul i r~.· t >lltLL't s' l ~t'I II L'Iltl'llt "''"'L'tll 1\GEND/\ ITEM fl 7C AUGUST I I , 2014 I m 1\Jo.;~,.·d pk.tw li11 d " p t upo ~;·d lltdttl.ltll l' .llll l'lldllq • th t· t 'II \ 11 1 \tl,ll t lt t l ko11 h l'u l11• llll tt'l.'l">' lh·tll'l'llll.'lll ~Y""-'111. I h .... "rdin.all tt' .llll t't hl ~ St•a lttlll 1 1()/, I >t -..d ullt ~ to .nld .t dd tll tl lt.tl v li u ili~.·o~ttoll l :lti i'''''I 'L'ttll l h l' titttt·nl l ul\\:d l or " tlh't llht·t to ilill'l) 1',,,. di o;ahtltl\ lwn ~.·l11 •: i l tl'llll llt :t tn l I•\' till· l 'it y lor tll ('clkaltl'il\tltt s I hi .., ctrdill.alltl' ,tl \tl :l ll ll'lld s "itT II\111 1 I ll) I f\ ld '\1111 11111 l•t'll '>lll ll to t'll lll p i ~ \\ i I h add it illfl,d 1\.'t'L'IIl dl.tll ~'t''o l tll h t• lll tl'll lo tl I{ l'\ t'll lld 1 1\k (II\ I 'I t t•l.t t i ill ' Ill 1.1 \ q llo tltl ic d IH'II 'o lllllpl.ll l 'i ... llt'll :t ... lh l'o p l.ll l l lt cw oiiiH tldllll'lll \ I 1.11 11\ 1.1111'11.1!'1.' l l'ti llll l'" 1)\ tltl 11<1 .llld .II•' l lldtld.t tlll~ ill l h . .'ll d lll t'll l ~ Ill l:ll SIII l' tht· Cllll llll lliltlllllld tht• pl.11 1\ l.t\ l jll otltlt c d •,t:ltii S 1\\ l'l l jl \ t tl th io; kllt'l to ti ll' p lilll ... tlilhll \ ( oilh tw l H IIL'Lkl ~I IIIth 8:. ( Pll 'l\111\ I .1111 l l'lj ll l'O..tlll!' lhilt litt',\ J)l ll\ tdl' \!Ill \\l l h ol h li t I i lld iL'.tl ill !' tlt,tl ll tl:ll' l 'o ll lllll'•l \iS'o lll'li ll t •d \\lilt lit \· .n lnp l l\1 11 ''' 1111 " tl lll i 11.t tllc I 1 k :t-.t' pr11 ,, tdc .r u>p\' tl l tit i ~ ot d i tt.tll l'l' to L':tl'll ll tL'Il t hl' r o l llw I lu:t 1 d I t il tv I' i~.·" ;111d otpprn 1 :tl ;ll 1lw 111'\1 nH.'l'llll j ' S I ~ I ' d Ill l'lll l!l'o lll l' \I ' ,Ii iii I\'\ Ht ll\l . \\tilt l'lll'lll ... lll'<' \ Il l II ' \ l'l\ '""·' ORDINANCE NO. 58-14-39 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-307, DISABILITY; AMENDING SECTION 2-310.4, MAXIMUM PENSION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM# 7C AUGUST II, 2014 BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA; SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended to amend Section 2-307, Disability, subsection (a), Disability benefits in-line of duty, and subsection (c), Disability benefits not-in-line of duty, to read as follows: * * * * * (a) Disability benefits in-line of duty. Any member who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer, which disability was directly caused by the performance of his duty as a Police Officer, shall, upon establishing the same to the satisfaction of the board, be entitled to a monthly pension equal to three percent (3.0%) of his average fmal compensation multiplied by the total years of credited service for members hired before January 1, 2013, and two percent (2.0%) of his average final compensation multiplied by the total years of credited service for members hired on or after January 1, 2013, but in any event the minimum amount paid to the member shall be forty-two percent (42%) of the average final compensation of the member. Terminated persons, either vested or non-vested, are not eligible for disability benefits, ~wept that those terminated by the eity for medieal reasons may awly for a disability vlithin thirty (3 0) days after termination. Notwithstanding the previous sentence, if a member is terminated by the City for medical reasons, the terminated person may apply for a disability benefit if the application is filed with the board within thirty (30) days from the date of termination. If a timely application is received, it shall be processed and the terminated person shall be eligible to receive a disability benefit if the board otherwise determines that he is totally and permanently disabled as provided for above. * * * * * (c) Disability benefits not-in-line of duty. Any member with eight and one third (8 1/3) years or more credited service who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer, which disability is not directly caused by the performance of his duties as a Police Officer shall, upon establishing the same to the satisfaction of the board, be entitled to a monthly pension equal to three percent (3.0%) of his average final compensation multiplied by the total years of credited service for members hired before January 1, 2013, and two percent (2.0%) of his average final compensation multiplied by the total years of Ordinance No. 58-14-39 1 AGENDA ITEM# 7C AUGUST 11, 2014 credited service for members hired on or after January 1, 2013, but in any event, the minimum amount paid to the member shall be twenty-five percent (25%) of the average final compensation of the member. Terminated persons, either vested or non-vested, are not eligible for disability benefits, exeept that those terminated by the eity for medieal reasons may apply for a disability within thirty (30) days after termination. Notwithstanding the previous sentence, if a member is terminated by the City for medical reasons, the terminated person may apply for a disability benefit if the application is filed with the board within thirty (30) days from the date of termination. If a timely application is received, it shall be processed and the terminated person shall be eligible to receive a disability benefit if the board otherwise determines that he is totally and permanently disabled as provided for above. * * * * * SECTION 2: That Chapter 2, Administration, Article VI; Employee Benefits, Division 4, Police Officers' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is hereby amended to amend Section 2-310.4, Maximum Pension, subsection to read as follows: Sec. 2-310.4. Maximum pension. (a) Basic limitation. Notwithstanding any other provisions of this system to the contrary, the member contributions paid to, and retirement benefits paid from, the system shall be limited to such extent as may be necessary to conform to the requirements of IRC Section 415 for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that exceeds the limits specified in IRC Section 415(b ), subject to the applicable adjustments in that section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar amount specified in IRC Section 415(b)(l)(A) ($160,000), subject to the applicable adjustments in IRC Section 415(b) and subject to any additional limits that may be specified in this System. For purposes of this section, "limitation year" shall be the calendar year. For purposes of Code Section 415(b), the "annual benefit" means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) without regard to the benefit attributable to after-tax employee contributions (except pursuant to Code Section 415(n) and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable" shall be determined in accordance with Treasury Regulations. (b) Acijustments to basic limitation for form of benefit. If the benefit under the plan is other than the annual benefit described in subsection (a), then the benefit shall be adjusted so that it is the equivalent of the annual benefit, using factors prescribed in Treasury Regulations. If the form of the benefit without regard to any automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount (determined using the assumptions specified in Treasury Regulation Section 1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits under the form of benefit as follows: (1) For a benefit paid in a form to which section 417(e)(3) of the code does not apply (generally, a monthly benefit), the actuarially equivalent straight life annuity benefit that is the greater of: Ordinance No. 58-14-39 2 AGENDA ITEM# 7C AUGUST II, 2014 a. The annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity starting date as the form of benefit to the member, or b. The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a 5 percent interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Rulings 200 1-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the code); or (2) For a benefit paid in a form to which section 417(e)(3) of the code applies (generally, a lump sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest of: a. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience; b. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form ofbenefit payable, computed using a 5.5 percent interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation Section 1.417( e )-1 ( d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 200 1-62), and (ii) for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the code); or c. The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year Treasury rate (prior to January 1, 2007, using the rate in effect for the month prior to retirement, and on and after January 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period)) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation Section 1.417( e )-1 ( d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for years after December 31,2008, the applicable mortality tables described in section 417(e)(3)(B) of the code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417( e )(3)(B) of the code), divided by 1.05. Ordinance No. SB-14-39 3 AGENDA ITEM# 7C AUGUST ll, 2014 ill The actuary may adjust the 415(b) limit at the annuity starting date in accordance with subsections (1) and (2) above. (c) Benefits not taken into account. For purposes of this Section, the following benefits shall not be taken into account in applying these limits: (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under §415(b )(2) of the IRC and Regulations thereunder to be taken into account for purposes of the limitation of IRC Section 415(b)(1); and ill That portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity. (d) COLA effect. Effective on and after January 1, 2003, for purposes of applying the limits under IRC Section 415(b) (the "Limit"), the following will apply: (1) A member's applicable limit will be applied to the member's annual benefit in the member's first ealendar limitation year of benefit payments without regard to any automatic cost of living adjustments; (2) thereafter, in any subsequent calendar limitation year, a member's annual benefit, including any automatic cost of living increases, shall be tested under the then applicable benefit limit including any adjustment to the IRC Section 415(b )(1 )(A) dollar limit under IRC Section 415( d), and the regulations thereunder; but (3) in no event shall a member's benefit payable under the system in any ealendar limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to IRC Section 415( d) and the regulations thereunder. Unless otherwise specified in the system, for purposes of applying the limits under IRC Section 415(b ), a Member's applicable limit will be applied taking into consideration cost of living increases as required by Section 415(b) of the IRC and applicable Treasury Regulations. (e) Other adjustments in limitations. ( 1) In the event the member's retirement benefits become payable before age sixty-two (62), the limit prescribed by this section shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of IRC Section 415(b) of the IRC, so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two (62). (2) In the event the member's benefit is based on at least fifteen (15) years of credited service as a full-time employee of the police department of the City, the adjustments provided for in ( e )(1) above shall not apply. Ordinance No. 58-14-39 4 AGENDA ITEM# 7C AUGUST 11, 2014 (3) The reductions provided for in ( e )(1) above shall not be applicable to disability benefits pursuant to Sec. 2-307, or pre-retirement death benefits paid pursuant to Sec. 2-306. (4) In the event the member's retirement benefit becomes payable after age sixty-five ( 65), for purposes of determining whether this benefit meets the limit set forth in subsection (a) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (65). This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. (f) Less than ten (1 0) years of participation or service. The maximum retirement benefits payable under this section to any member who has completed less than ten (1 0) years of eredited serviee participation with the City shall be the amount determined under subsection (a) of this section multiplied by a fraction, the numerator of which is the number of the member's years of eredited service participation and the denominator of which is ten (1 0). The reduction provided by this subsection cannot reduce the maximum benefit below 10% of the limit determined without regard to this subsection. The reduction provided for in this subsection shall not be applicable to pre-retirement disability benefits paid pursuant to Sec. 2-307, or pre-retirement death benefits paid pursuant to Sec. 2-306. (g) Participation in other defined benefit plans. The limit of this section with respect to any member who at any time has been a member in any other defined benefit plan as defined in IRC Section 414G) maintained by the City shall apply as if the total benefits payable under all City defmed benefit plans in which the member has been a member were payable from one plan. (h) Ten thousand dollar ($10,000) limit; less than ten years of service. Notwithstanding anything in this section 2-310.4, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this subsection (h) of section 2-310.4 if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars ($1 0,000) for the applicable pltm limitation year and for any prior pltm limitation year and the City has not any time maintained a qualified defmed contribution plan in which the member participated; provided, however, that if the member has completed less than ten (1 0) years of credited service with the City, the limit under this subsection (h) of section 2-310.4 shall be a reduced limit equal to ten thousand dollars ($10,000) multiplied by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is ten (10). (i) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the member's benefit under any defmed benefit plans in which member participated, such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be determined by the board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defmed contribution plans in which the member participated, such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be established by the board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the board and the plan administrator of all other plans covering such member. Ordinance No. 58-14-39 5 G) Service credit purchase limits. AGENDA ITEM# 7C AUGUST 11,2014 (1) Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, as allowed in Sections 2-310.15 and 2-310.16, then the requirements of this section will be treated as met only if: a. the requirements ofiRC Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of IRC Section 415(b ), or b. the requirements of IRC Section 415( c) are met, determined by treating all such contributions as annual additions for purposes of IRC Section 415( c). &.-For purposes of applying subparagraph G)(l)a.-;, the System will not fail to meet the reduced limit under IRC Section 415(b)(2)(C) solely by reason of this subparagraph&.-, and for purposes of applying subparagraph G)(1)b. the System will not fail to meet the percentage limitation under Section 415(c)(l)(B) of the IRC solely by reason of this subparagraph e. (2) For purposes of this subsection the term "permissive service credit" means service credit- a. recognized by the system for purposes of calculating a member's benefit under the plan, b. which such member has not received under the plan, and c. which such member may receive only by making a voluntary additional contribution, in an amount determined under the system, which does not exceed the amount necessary to fund the benefit attributable to such service credit. Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may, if otherwise provided by the system, include service credit for periods for which there is no performance of service, and, notwithstanding clause G)(2)b., may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system. ® Contribution Limits. (~ 1) For purposes of applying the Code Section 415(c) limits in this subsection G). which are incorporated by reference and for purposes of this subsection (k), only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a ealendar limitation year, except as noted below and as permitted by Treasury Regulations Section 1.415(c)-2, or successor regulations. Unless another definition of compensation that is permitted by Treasury Regulations Section 1.415(c)-2, or successor regulation, is specified by the system, compensation will be defined as wages Ordinance No. 58-14-39 6 AGENDA ITEM# 7C AUGUST 11, 2014 within the meaning ofiRC Section 3401 (a) and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under IRC Sections 6041(d), 6051(a)(3) and 6052 and will be determined without regard to any rules under IRC Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in IRC Section 3401(a)(2). a. However, for ealendar limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under IRC Sections 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For ealendar limitation years beginning after December 31, 2000, compensation will also include any elective amounts that are not includible in the gross income of the employee by reason ofiRC Section 132(f)(4). b. For limitation years beginning on and after January 1, 2007, compensation for the ealendar limitation year will also include compensation paid by the later of 2Y:z months after an employee's severance from employment or the end of the ealendar limitation year that includes the date of the employee's severance from employment if: 1. the payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the employee while the employee continued in employment with the employer; or 2. the payment is for unused accrued bona fide sick, vacation or other leave that the employee would have been able to use if employment had continued. c. Back pay, within the meaning of Treasury Regulations Section 1.415( c )-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. ( 4 2_) Notwithstanding any other provision oflaw to the contrary, the board may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in IRC Section 415 by using the following methods: a. If the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment deduction plan for the member to avoid a contribution in excess ofthe limits under IRC Sections 415(c) or 415(n). b. If payment pursuant to subparagraph (j)(4)a. (k)(2)a. will not avoid a contribution in excess of the limits imposed by IRC Section 415(c), the board may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution. ( ~ J) If the annual additions for any member for a plaB limitation year exceed the limitation under section 415( c) of the code, the excess annual addition will be Ordinance No. 58-14-39 7 (kl) contrary: (1) (2) AGENDA ITEM# 7C AUGUST 11, 2014 corrected as permitted under the Employee Plans Compliance Resolution System (or similar IRS correction program). For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this subsection ffi ® shall not exceed the annual limit under section 401(a)(17) of the code. Additional/imitation on pension benefits. Notwithstanding anything herein to the The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system, on or after January 1, 1980, shall not exceed one hundred percent (100%) of his average fmal compensation. However, nothing contained in this section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. No member of the system shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 3: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Atlantic Beach. SECTION 4: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 5: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 6: That this Ordinance shall become effective upon its adoption. PASSED ON FIRST READING, this 141h day of July 2014. PASSED AND ADOPTED ON SECOND READING, this ______ ,, 2014. ATTEST: Donna L. Bartle, CMC CITY CLERK Approved as to form: Rich Komando, Esquire CITY ATTORNEY Carolyn Woods MAYOR day of dm/ab/pol/04-09-14.ord Ordinance No. 58-14-39 8 GRS Gabriel Roeder Smith June 4, 2014 Mr. Nelson Van Liere Plan Administrator City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233-5445 One East Broward Blvd. Suite 505 Ft. Lauderdale, FL 33301·1804 RE: City of Atlantic Beach Police Officers' Retirement System Actuarial Impact Statement Dear Nelson: AGENDA ITEM# 7C AUGUST 11, 2014 954.527.1616 phone 954.525.0083 fax www.gabrielroedcr.com As requested by Scott Christiansen in his letter of April 16, 2014, please find enclosed an Actuarial Impact Statement for the proposed ordinance (also enclosed). We have determined that the plan provisions in the ordinance would have no significant cost effect to the plan benefits. Please sign the Actuarial Impact Statement as the Plan Administrator and forward the original, and one copy, along with a copy of the ordinance to the addresses below. Please file the Actuarial Impact statement prior to the second reading. Division of Retirement Bureau of Local Retirement Systems Post Office Box 9000 Tallahassee, Florida 32315-9000 Municipal Police Officers' and Firefighters' Retirement Trust Funds Post Office Box 3010 Tallahassee, Florida 32315-3010 If you should have any questions, please give us a call. / / .; SinZ-.e'lAY,(c 4/1 1 a;lrY~1Y~/~. PiotrKr&:a, ASA, MAAA Senior Consultant & Actuary Enclosure cc: Mr. Scott R. Christiansen AGEN DA ITEM fl 7C AUGU ST II , 20 14 CITY 01" ATLANTIC BEA C H POJ .I C E OFFICE RS ' RETIREMENT SYSTEM ACTUARIAL IMPAC T STAT EMENT Attached pmposcd Ordinan ce in corporat es lan guag e necess ary to updnte th e P lttn with th e technica l requireme nts of Int e rnal Reve nue Code and includ es mandatory amendm e nt s to e nsure th e continuation or the Plan 's t ax quali li ed status. Th ere is no s ignificant meas urabl e benefit cost effec t to the plan. ACTUARY, Gabriel , Ro e der, Smith & ompan y n y :v1,~i. Dale: June 4, 2014 The above changes are in comp li anl!e with Par1 Vll , Chaprc r I 12, Florida St atutes, and Sec tion 14, Arti c le X of th e State on stitution . T he Ac tu ary was pro vided til e infonna tion in t he proposed am e ndment . PE NSION BOARD COMMilTEE . By: ~ t/4-;;:?t4t' Date: ~ 0-z..fiy I I ORDINANCE NO. 95-14-108 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 9, OF THE CODE OF ORDINANCES, TO PROillBIT DISCRIMINATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM# 7D AUGUST 11, 2014 WHEREAS, the City Commission of the City of Atlantic Beach, Florida, recognizes individuals within the City should be free from discrimination based upon race, color, religion, sex, national origin, sexual orientation, gender identity or gender expression; WHEREAS, the City Commission of the City of Atlantic Beach, Florida, wishes to protect each citizen's interest in personal dignity and to preserve the public safety, health and general welfare ofthe City; WHEREAS, the City Commission of the City of Atlantic Beach, Florida, fmds that it is necessary to amend Chapter 9 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 Chapter 9 of the Code of Ordinances, of the City of Atlantic Beach, Florida, is hereby amended to read as follows: ARTICLE I. IN GENERAL Sec. 9-1. Purpose. To promote a City where individuals are free from discrimination based upon race, color, religion, sex, national origin, sexual orientation, gender identity or gender expression. Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page I of 18 Sec. 9-2. Definitions. Whenever used in this chapter, the following words and terms shall have the following meanings unless the context necessarily requires otherwise: Aggrieved individual shall mean any individual who claims to have been injured by a discriminatory practice. Discriminatory practice shall mean any practice or act made unlawful or which is otherwise prohibited by this chapter. Dwelling shall mean any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one (1) or more families, and any vacant land which is offered for sale or lease for the construction or location of any such building, structure or portion thereo£ Family shall include a single individual. Gender expression shall mean an individual's gender-related appearance and behavior, whether or not that gender expression is or is perceived to be different from that traditionally associated with the individual's assigned sex at birth. Gender Identity shall mean an individual's gender-related identity, whether or not that identity is or is perceived to be different from that traditionally associated with the sex assigned to that individual at birth. Words stricken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 2 of18 AGENDA ITEM# 7D AUGUST 11, 2014 National origin shall mean the national origin of an ancestor or the country of origin of an individual's forebears, naturally, by marriage or by adoption. Person shall include one (1) or more individuals, corporations, partnerships, associations, labor organizations, legal representatives, mutual companies, joint-stock companies, trust, unincorporated organizations, trustees in bankruptcy, receivers, and fiduciaries. Places of public accommodation shall mean any establishment, service, place or building which offers, sells, or otherwise makes available to the public any good, service, facility, privilege or advantage. The following shall not be considered places of public accommodation: private clubs or establishments not open to the public other than members of the club or establishment, and facilities and accommodations owned or operated by religious organizations, associations, societies, or non-profit organizations operating or controlled by a religious organization, where the facilities and accommodations are made available to members of that religion but not to the public. Religious organization shall include a religious corporation, association or society. To rent shall include to lease, to sublease, to let and otherwise to grant for a consideration the right to occupy premises not owned by the occupant. Words stricken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 3 of18 AGENDA ITEM# 7D AUGUST 11, 2014 Sexual orientation means an individual's actual or perceived heterosexuality, homosexuality or bisexuality. Sec. 9-3. Prohibited conduct. Subject to the exceptions set out in this article, it shall be unlawful for any person to do any of the following acts: (1) No person or employment agency shall directly or indirectly discriminate against any individual in hiring, classification, grading, discharge, discipline, compensation or other term or condition of employment because of the individual's race, color, religion, sex, national origin, sexual orientation, gender identity or gender expression. (2) No person shall discriminate against any individual in any aspect of any credit transaction, or in any terms and conditions of bonding because of the individual's race, color, religion, sex, national ongrn, sexual orientation, gender identity or gender expressiOn. (3) No person who owns, leases, rents, operates, manages or in any manner controls a public accommodation shall withhold, deny, curtail, limit or discriminate concerning the full use of such public accommodation by any individual because of the individual's race, color, religion, sex, national origin, sexual orientation, gender identity or gender expression. ( 4) It shall be unlawful for a person to retaliate or discriminate in any manner against an individual because such individual opposed Words strisken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 4 of18 AGENDA ITEM# 7D AUGUST 11, 2014 a practice prohibited by this chapter or prohibited by existing federal or state law prohibiting discrimination; or to retaliate or discriminate in any manner against an individual because such individual has filed a complaint, testified, assisted or participated in any manner in any investigation, proceeding, hearing or conference under this chapter or under any federal or state law prohibiting discrimination. (5) It shall be unlawful to coerce, intimidate, threaten or interfere with any individual in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, or on account of his or her having aided or encouraged any other individual in the exercise or enjoyment of, any right granted or protected by this chapter. Sec. 9-4. Complaints. (1) An aggrieved individual may, under this article, file a complaint with the City Clerk and request a hearing before a special magistrate within sixty (60) days to determine if the alleged person committed a discriminatory practice prohibited by this article. If the special magistrate finds that a discriminatory practice has been committed or is about to be committed, the special magistrate may issue an order prohibiting the discriminatory practice and providing affirmative relief from the effects of the discriminatory practice including, but not limited to, a temporary or permanent injunction or other equitable relief, a temporary restraining order, or an award of actual damages, including back pay, punitive damages, an award of reasonable attorney's fees, interest, and costs, or other such relief as the special magistrate deems appropriate. Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 5 of 18 AGENDA ITEM# 7D AUGUST 11,2014 (2) Either party may appeal the decision of the special magistrate by commencing a civil action in a court of competent jurisdiction provided, however, that such civil action must be filed no later than one year after the discriminatory practice is alleged to have been committed. (3) If, in a civil action commenced under this article, the court finds that a discriminatory practice has been committed or is about to be committed, the court may issue an order prohibiting the discriminatory practice and providing affirmative relief from the effects of the discriminatory practice including, but not limited to, a temporary or permanent injunction or other equitable relief, a temporary restraining order, an award of actual damages, including back pay, punitive damages, an award of reasonable attorney's fees, interest, and costs, or other such relief as the court deems appropriate. Sec. 9-5. Exemptions. Nothing in sections 9-1 through 9-4 shall apply to: (1) Sovereign immunity: (a) Pursuant to Article X, Section 13, Florida Constitution, nothing in this chapter shall be deemed to be a provision for bringing suit against the state or otherwise be deemed to be a waiver of sovereign immunity. (b) Nothing in this chapter shall be construed to prohibit any sovereignly immune entity from adopting its own internal policies and rules to prohibit discriminatory practices and acts and to Words striekea are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 6 of 18 AGENDA ITEM# 70 AUGUST 11,2014 resolve allegations or complaints of such discriminatory practices and acts to the extent allowed by law. (c) Nothing in this chapter shall be deemed to modify, impair, or otherwise affect any other right or remedy conferred by the constitution or laws of the United States or the State of Florida, and the provisions of this chapter shall be deemed to be in addition to those provided by such other laws. (2) Religious organizations: This article shall not apply to a corporation, association, educational institution, or society that is exempt from the religious discrimination provisions of Title VII of the Civil Rights Acts of 1964 pursuant to section 702(a) of such Act (42 U.S.C. 2000e- l(a)), or as such section may hereafter be amended. For purposes of this chapter, such corporations, associations, educational institutions, or societies shall include religious corporations, associations, educational institutions, or societies which condition opportunities in the area of employment to members of that religious corporation, association, educational institution, or society or to persons who subscribe to its tenants or beliefs. (3) Employers: Notwithstanding any other provision of this article, it shall not be a discriminatory practice under this article to take or fail to take any action based upon the individual's race, color, religion, sex, national origin, sexual orientation, gender identity or gender expression when a bona fide occupational qualification is reasonably necessary for the performance of employment to which Words striokoo are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 7 ofl8 AGENDA ITEM# 7D AUGUST 11, 2014 such action or inaction is related. Employers are able to observe the terms of a bona fide seniority system, a bona fide employee benefit plan such as a retirement, pension, or insurance plan, or a system which measures earnings by quantity or quality of production, which is not designed, intended, or used to evade the purposes of this article. This article shall not be construed to make unlawful the rejection or termination of employment when the individual applicant or employee has failed to meet bona fide requirements for the job or position sought or held, nor shall this article preclude such physical and medical examinations of applicants and employees as an employer may reqmre of applicants and employees to determine fitness for the iob or position sought or held. (4) Businesses: This article shall not apply to a corporation, professional association or business that employs fifteen ( 15) employees or less. (5) Rentals: This article shall not apply to rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four (4) families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence. Sec. 9-6. Criminal Acts Nothing in this article may be asserted or construed as a defense to any criminal act, prohibited by local, state or federal laws. Words striek6fl: are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 8 of18 AGENDA ITEM# 7D AUGUST 11,2014 Sec. 9-7. False Claims If a court of competent jurisdiction finds that an unsupported claim was filed by an individual claiming to be an aggrieved party, the party required to defend against the meritless claim shall be entitled to attorney's fees and sanctions pursuant to Section 57.105, Florida Statutes. Sees. 9 1 9 15. Reserved. Sees. 9-8-9-16. Reserved. ARTICLE II. FAIR HOUSING See. 9 16. Definitions. Whenever used in this artiole, the follovling vwrds and terms shall have the follovling meanings unless the conteKt necessarily requires othervlise: Dwelling shall mean any building, structure, or portion thereof ·..vhioh is occupied as, or designed or intended for occupancy as, a residence by one (1) or more families, and any vacant land which is offered for sale or lease for the construction or location of any suoh building, structure or portion thereof. Family shall include a single individual. Persen shall include one (1) or more individuals, corporations, partnerships, associations, labor organil"iations, legal representatives, mutual companies, joint stock companies, trust, unincorporated organil"iations, trustees in bankruptcy, recervers, and fiduciaries. Words striekea are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 9 of18 AGENDA ITEM# 7D AUGUST 11, 2014 Te rent shall include to lease, to sublease, to let and othervlise to grant for a consideration the right to occupy premises not owned by the occupant. Sec. 9-1 7. Prohibited conduct. Subject to the exceptions set out in this article, it shall be unlawful for any person to do any of the following acts: (1) To refuse to sell or rent after the making of a bona fide offer to do so or to refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny a dwelling to any person because of race, color, sex, religion .. eF-national origin, sexual orientation, gender identity or gender expression. (2) To discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provisions of services or facilities in connection therewith, because of race, color, sex, religion .. er--national origin, sexual orientation, gender identity or gender expression. (3) To make, print or publish, or cause to be made, printed or published any notice, statement or advertisement with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination based on race, color, sex, religion .. eF national origin, sexual orientation, gender identity or gender expression or an intention to make any such preference, limitation or discrimination. Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 10 of 18 AGENDA ITEM# 7D AUGUST 11, 2014 ( 4) To represent to any person because of race, color, sex, religion,_ er-national origin, sexual orientation, gender identity or gender expression that any dwelling is not available for inspection, sale or rental when such dwelling is in fact so available. (5) For profit, to induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race, color, sex, religion,_ er-national origin, sexual orientation, gender identity or gender expression. Sec. 9-18. Multiple listing services. It shall be unlawful to deny any person access to or membership or participation in any multiple listing service, real estate brokers organization, or other service, organization or facility relating to the business of selling or renting dwellings, or to discriminate against him in the terms or conditions of such access, membership or participation on account of race, color, sex, religion,_ er--national origin, sexual orientation, gender identity or gender expression. Sec. 9-19. Educational activities. The city manager is authorized and directed to undertake such educational and conciliatory activities as in his judgment will further the purposes of this article. He may call conferences of persons in the housing industry and other interested parties to acquaint them with the provisions hereof and the suggested means of implementing this article. The city manager shall further endeavor, with the advice of the housing industry and other interested parties, to work out programs of voluntary compliance Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 11 of 18 AGENDA ITEM# 7D AUGUST 11,2014 and may advise appropriate city officials on matters of enforcement. The city manager may issue reports on such conferences and consultation as it deems appropriate. Sec. 9-20. Complaints. (a) Any person vAle elaims to have been injured by an aet made unlawful by this article or ·.vho elaims that he ·.vill be injured by sueh an aet, may file a complaint vlith the city manager. A complaint shall be filed within one hundred eighty ( 180) days after the alleged unlavrful aet oecurred. Complaints shall be in writing and shall contain such information and be in such form as required by the eity manager. Upon receipt of a complaint, the eity manager shall promptly investigate it and shall complete his investigation within fifteen (15) days. If the eity manager finds reasonable cause to belie•.ze that a violation of this artiele has occurred, or if a person charged vlith violation of this article refused to furnish information to the eity manager, the city manager may request the city attorney to prosecute an action in a col:lrt or board of competent jurisdiction against the person charged in the complaint. The request shall be in ·.vriting. (b) Upon receiving such written request and ;vith the assistance of the aggrieved person and city manager, vnthin fifteen (15) days after receiving the request the city attorney shall be prepared to prosecute an action in the appropriate court or board of competent jurisdietion, provided a warrant is SV+'Orn out by the aggrieved person and served upon the person or persons charged with the offense. Words striskea are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 12 of 18 AGENDA ITEM# 7D AUGUST 11, 2014 (1) An aggrieved individual may, under this article, file a complaint with the City Clerk and request a hearing before a special magistrate within sixty (60) days to determine if the alleged person committed a discriminatory practice prohibited by this article. If the special magistrate fmds that a discriminatory practice has been committed or is about to be committed, the special magistrate may issue an order prohibiting the discriminatory practice and providing affirmative relief from the effects of the discriminatory practice including, but not limited to, a temporary or permanent injunction or other equitable relief, a temporary restraining order, or an award of actual damages, including back pay, punitive damages, an award of reasonable attorney's fees, interest, and costs, or other such relief as the special magistrate deems appropriate. (2) Either party may appeal the decision of the special magistrate by commencing a civil action in a court of competent jurisdiction provided, however, that such civil action must be filed no later than one year after the discriminatory practice is alleged to have been committed. (3) If, in a civil action commenced under this article, the court finds that a discriminatory practice has been committed or is about to be committed, the court may issue an order prohibiting the discriminatory practice and providing affirmative relief from the effects of the discriminatory practice including, but not limited to, a temporary or permanent injunction or other equitable relief, a temporary restraining order, an award of actual damages, including back pay, punitive damages, an award of reasonable attorney's Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 13 of 18 AGENDA ITEM# 7D AUGUST ll, 2014 fees, interest, and costs, or other such relief as the court deems appropriate. Sec. 9-21. Use of remedies ofthis article, other remedies. Nothing in this article requires any person claiming to have been injured by an act made unlawful by this article to exhaust the remedies provided herein; nor prevent any such person from seeking relief at any time under the Federal Civil Rights Acts or other applicable legal provisions. Sec. 9-22. Discrimination in the financing ofhousing. It is unlawful for any bank, building and loan association, insurance company, or other corporation, association, firm, or enterprise the business of which consists in whole or in part of the making of commercial real estate loans to deny a loan or other financial assistance to a person applying therefor for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling, or to discriminate against him in the fixing of the amount, interest rate, duration, or other terms or conditions of such loan or other financial assistance, because of the race, color, religion, sex, or national origin of the person or of any person associated with him in connection with the loan or other financial assistance or the purposes of the loan or other financial assistance, or because of the race, color, sex, religion.. er-national origin .. sexual orientation, gender identity or gender expression of the present or prospective owners, lessees, tenants, or occupants of the dwelling or dwellings in relation to which the loan or other financial assistance is to be made or given. Words striekeR are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 14 of 18 AGENDA ITEM# 7D AUGUST 11,2014 Sec. 9-23. Exemptions. fat-Nothing in sections 9-17 and 9-22 shall apply to: (1) Any single-family house sold or rented by its owner, provided the private individual owner does not own more than three (3) four ill single-family houses at any one time. In the case of the sale of a single-family house by a private individual owner who does not reside in the house at the time of the sale or who was not the most recent resident of the house prior to the sale, the exemption granted by this paragraph shall apply only with respect to one (1) sale within any twenty-four-month period. In addition, the bona fide private individual owner shall not own any interest in, nor shall there be owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three (3) four (4) single-family houses at any one time. The sale or rental of any single-family house shall be excepted from the application of this article only if the house is sold or rented: (a) Without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman or the facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of the broker, agent, salesman, or person; and (b) Without the publication, posting, or mailing, after notice, of any advertisement or written notice in violation of section 9-17(3). Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 15 of18 AGENDA ITEM# 7D AUGUST 11, 2014 Nothing in this provision shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as is necessary to perfect or transfer the title. (2) Rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four (4) families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence. ~For the purposes of paragraph (a) this article, a person is deemed to be in the business of selling or renting dwellings if: (-1-) (&_He has, within the preceding twelve (12) months, participated as principal in three (3) or more transactions involving the sale or rental of any dwelling or any interest therein; ~ (hl__He has, within the preceding twelve (12) months, participated as agent, other than in the sale of his own personal residence, in providing sales or rental facilities or sales or rental services in two (2) or more transactions involving the sale or rental of any dwelling or any interest therein; or c;) .(tl_He is the owner of any dwelling designed or intended for occupancy by, or occupied by, five (5) or more families. (e) ffi_Nothing in this article shall prohibit a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 16 of 18 AGENDA ITEM# 7D AUGUST 11, 2014 conjunction with a religious organization, association, or society, from limiting the sale, rental, or occupancy of any dwelling which it owns or operates for other than a commercial purpose to persons of the same religion or from giving preference to such persons, unless membership in such religion in restricted on account of race, color, or national origin. Nothing in this article shall prohibit a private club not in fact open to the public, which as an incident to its primary purpose or purposes provides lodgings which it owns or operates for other than a commercial purpose, from limiting the rental or occupancy of such lodgings to its members or from giving preference to its members. Sec. 9-24. Interference, coercion, or intimidation; enforcement by civil action. It is unlawful to coerce, intimidate, threaten, or interfere with any person in the exercise of, or on account of his having exercised, or on account of his having aided or encouraged any other person in the exercise of any right granted under this article. This section may be enforced by appropriate civil action. 8ee. 9 25. Violations. Any person violating any provision of this artiele shall be guilty of an offense and Hpon eonviotion shall pay a penalty of not more than fifty dollars ($50.00) for eaoh offense. Words strieken are deletions; words underlined are additions. ORDINANCE NO. 95-14-108 Page 17 of 18 AGENDA ITEM# 7D AUGUST I I, 2014 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF RE:PORT AGENDA ITEM# 7E AUGUST 11, 2014 AGENDA ITEM: Ordinance No. 5-14-61: Amending Chapter 2 of the Code of Ordinances, Admfuistration, Article II, City Commission, Sec. 2-16, Time and Place of Regular meetings, to provide for two regular meetings. SUBMITTED BY: Nelson VanLiere, City Manager~ DATE: June 17,2014 BACKGROUND: At the June 9, 2014 meeting, ·the City Commission discussed proposed · Ordinance No. 5-14-61 and decided to table the item until a full commission could be present and to give Staff the opportunity to make some adjustments to the presentation of the agenda items. As previously stated, the goal of the Staff and Commission is to work together to produce an agenda that is both informative to the public and allows for business to be efficiently carried on month to month. It is clear that giving ample time for the public to weigh in on important issues is a priority in Atlantic Beach. As a result of discussions from the previous meetings, Staff has come up with a better way to meet those needs. Upon approval of the attached ordinance, Staff can prepare agendas that will ensure items of significant importance are discussed thoroughly and that those of a routine nature can move forward. The attached outline entitled: Agenda Preparation Guidelines has been amended to reflect recent discussions and will be used as a guideline for agenda preparation. This chart indicates how each type of item is to be considered in the compilation of the agenda. Upon examination of the guidelines, you can see that most items, with the exception of Action on Ordinances and Miscellaneous Business items, would appear only once. Ordinances represent the creation of legislation and are required to be heard more than once. Miscellaneous Business items represent a variety of items with varying significance from agenda to agenda. fu this Miscellaneous Business section of the agenda is where we propose to give special attention. As a solution to the problem of ensuring miscellaneous items are highlighted and discussed in a manner that gives appropriate attention to them, Staff reviewed the rules found in our code and determined that the existing agenda has a provision for this, but that it has not been used for this purpose. Item #3 on the Agenda Outline was placed there to consider any unfinished business from the previous meetings. Carryover items would be placed in this section of the agenda in the order that they appeared in a previous meeting. Items that originated in a special category such as Resolutions or Ordinances would stay in their respective agenda categories. The process would be to place the appropriate items on the agenda under. #8 Miscellaneo:us Business. They would be discussed and considered as items the commission would want to move forward to the next agenda. The subsequent meeting would then include those same items in #3 Unrmish~d Business section of the Agenda Outline. BUDGET: AGENDA ITEM# 7E AUGUST 11, 2014 Staff will also implement the revised deadlines discussed in the previous meeting to allow the Commissioners and the public an extra five to seven (5-7) days to review the agenda before the meeting to allow for input and questions to be answered. This extra time will prove significant for those involved in the preparations for a meeting. The deadline for submission of all agenda items from either the Commission or staff, would be the Wednesday (13 days) prior to the commission meeting. The agenda would then be published and disbursed on the Friday after the deadline. All items to be considered on the agenda will be submitted by the deadline in fmal format form. Also, as a result of the comments made at the May meeting, Staff has amended the proposed ordinance to reflect the original meeting time as 6:30p.m. In the event that the Commission chooses to call for a workshop, the expectation would be to have those on the same meeting nights as the regularly scheduled meeting unless specifically requested for another time. This will limit the strain on the commissioner's schedule to only two nights a month in normal circumstances. The shmier agenda and the expectation of doing City business two nights a month should streamline the process for everyone. No budget impact. RECOMMENDATION: Approve Ordinance No. 5-14-61. ATTACHMENTS: StaffReport dated April18, 2014 Agenda Preparation Guideline Chart Ordinance No. 5-14-61 REVIEWED BY CITY MANAGER -n t/% ;1Cu4. Item App roval of M i nutes Approval of Minutes Courtes y o f the Floo r t o Visitor s Courtesy of the Fl oor Prese ntation Proc lamation Unf inish ed Bu siness Miscell aneous item s ca rried forward from the prece ding m eetings Conse n t Age nd a Monthly Reports Qu arte rly Re po rt Annu al Report Written Re port on a specific project Decl are Prope rty Surplu s Award i nitia l contract contract for Bid Award RFP Ext end Contract w hen allowed for in the curre nt t erms. Comm it tee Reports Commi ttee Re port A ction o n Res o l utions Res olution Acti o n on Or d i nances Ordi nance Misce llaneous Business Use -by-Excep tion W aive r Approva l of Contract with significant importance and va l ue Appointm ent of membe rs t o a st anding Board or Commit t ee Est ablishing an Ad Hoc Committee, the n appointing it s me mbers City M anager Ci t y M anage r Re port Reports and/or Re q uest s from Cit y Commissio ners and Cit y Attorney Announce me nts Agenda Preparation G uidelines Purpose Requires Special Advertising Action No Informational-No Action No Informationa l-No Action No Ceremonia l-No Act ion No Action No Acknowledge Rece ipt No Acknowled ge Recei pt No Ac knowledge Rece ipt No Acknowledge Rece ipt No Action No Action No Action No Action No I nformat ion a I No Actio n *No Action Yes Di scussion I Action Yes Di scussi on I Action Yes Di scu ss ion I Action No Di sc u ss ion I Action No Di scu ssion I Action No Infor mational No I nformationa I No Requires a Public Hearing for CC meeting? No No No No No No No No No No No No No No No *Yes Yes Yes No No No No No A GENDA ITEM# 7E AU GUST II , 2 0 14 Standard # of times needed on the agenda 1 N/A 1 1 1 1 1 1 1 1 1 1 1 1 1 2 **2 1 2 1 2 1 N/A Agenda Preparation Guidelines AGENDA ITEM# 7E AUGUST 11, 2014 *Exceptions: 1. Ordinances and Resolutions to set the annual operating budget and millage rate require special advertising and two public hearings. 2. Changes in Zoning District Classifications, Special Planned Areas (SPA's), changes to Land Development Regulations and Comprehensive Plan Amendments require one public hearing at the Community Development Board (CDB) meeting so the CDB can make a recommendation to the Commission. They also require two public hearings at City Commission meetings. ** Notes: Use-by-exceptions will be on the Commission Agenda twice. The first time, as a discussion only item and the second time, as a public hearing and action item. Variances are handled through the Community Development Board (CDB) and require a Public Hearing. No Commission action is needed. Use-by-exceptions are heard by the Community Development Board (CDB) for a recommendation, then to the Commission. Any agenda Item that requires action and does not have written information in the initial packet, will most likely require an additional meeting in order to provide advance notice of the details and to allow time for citizen input. CITY OF ATLANTIC BEACH CITY COMIVJISSION MEETING STAFF REI'OI~T AGENDA ITEM # 7E AUGUST 11, 2014 AGENDA ITl~M: Ordinance No. 5M 14-61: Amending Chapter 2 of Lhe Code of Ordin·anccs, Administn1tion, Articlu ll1 City Commission, Sec. 2-16, Time and Place of Regular mcclings, to provide tbr two regulat· meetings. SUBMITTI!:O BY Nelson Van Licm, City Manager ,:::_CJ ___ ... DATE: April l8, 2014 UACKGROUND: QJl April 811', 2013, the City Commission approved Ordinance No. 5-13-58 amending the Code to t'cplacc one ·of the two sche~uled meetings per month with a workshop. This was done as n trial to addrc~s complaints from the public that 111crc was not enough time tor citizcn input on the ngenda it~ms before n vote. By workshopping the upvoming agcndu, t:Hixvns hove more time and opportunity to be heard on all items bdbtc a vole is cnsl. Staff has worked ve1·y hard to make the transition into the one meeting a month schedule successful. Howeve~\ implementation or this new schedule has been extl·cmcly difficult tor staff. Aller careful considcmlion, we believe we have come up wilh an alternative thnt will address everyone's concerns. Below is il list of unintended consequences that have been n chatrcnge to staff §!nee the inception of a one meeting per month schedule. I. The agendas are roughly twice the size. This by itself would not seem to he an issue. Please consider thnt each item is import!lnl and is lhe result of staff's hard work. The entire agenda must bu indexed and paginated, copied and bound, scanned and uploaded, disbihutcd und linked to web pag,es. 1., Meetings fll'g twice. ns l_l)ng. A direct result of the lengthy ngenda i~ tl1at the meetings take twice as long because thet'c are twice as numy items to discuss. 3, Jho bureaucracy added to thc.Jtruxoval process. slows the _npprovul of t:outlnc ilemulown. For l11i:lllY important items~ we recognize it is i111portant to slow down nnd heur comments more thnn otlcc. Routine items~ however,. arc held up in tha same timcline and ·al'c not able to move furwar~ despite lilLie or no comments frorn the citizens. Consent items take only a tew minutes to pass in fhc meeting, but a ftlllthrcc to fblll' weeks to go through the entire approval process. 4. Staff prcllil'"ation sccming!.Y ncvct· ends. As St?ff prepares for Commission mcerings, we write proposuls und research tl tremendous amount of infmmntion in pt•epamtion tor the meeting. Hems of routine nature are discussed twice. more important items tbur times and sometimes, if deferred or as the result of an inilial proposal that led to the ac1ion, the agendu ilclll may IH.~ed to be tl·csh in our minds for six weeks as new items accumulate. We need Lo be able to take ncLion and move forward. 5. Ey_g,ry Agenda Jms. been amqmlcd. Since the ineeption or the one meeting schedule, we have h«d numerous special coiled meetings and every wo1·kshoppcd agenda has been amended. As staff tries lo mnke progress on projects ot· contrncts, we sit and wait through long wtwln;hops wl1erc no action can be taken, there was no discus:-:ion or comments und yet we niust wait anolhet• Lwo weeks fot· an approval. AGENDA ITEM # 7E AUGUST 11, 2014 6. Ordinances require an additional month for approval. Ordinances set policy and require two meetings to approve. TWs is by design a method of seeking additional public input. 7. Workshop forinat places the Commissioners on the floor for round table discussions. This helps, but almost every meeting there is a special · called meeting. This requires the cameras to be arranged differently and the sound system is not as good due to the failure of Commissioners to speak into the mic. We have had numerous complaints about the citizens not being able to hear the Commissioners when they are seated in the workshop fonnat. The public gets confused about whether they are going to get action on an item or not. Staff is unsure in some cases whether the invited speakers should come to a workshop, Commission meeting or both. 8. Fear of missing an agenda deadline is real. Staff strives very hard to meet deadlines. With only one meeting, the consequences of missing an agenda deadline means either waiting another month for approval or requires that a special called meeting be scheduled. 9. The meeting of most importance to the citizen is the workshop. This is where the discussion takes place and this is the meeting the Com:tllissioners need to be hest prepared for. The agenda is received two to three business days ahead of the worlcshop. Of course they can prepare over the weekend and have four or five days max. This gives commissioners only a few days to meet with staff to get questions answered and we are busy getting ready for the meeting too. Solution: The solution being proposed is to return to two regular meetings a month, move the agenda deadline up to allow for publicizing the agenda a minimum of 10 days prior to the meetings, and start the meetings 30 minutes earlier. Below are the reasons this approach would work in reference to each of the above items. • Items 1 and 2 are . addressed because the meetings will occur more often, each agenda is smaller and therefore the meetings will be shorter. Also, returning to a starting time for the meetings of 6:00p.m. would allow staff and citizens to at least get out 30 minutes earlier. . Thirty minutes may not seem like a big difference but for those who have to be at work at 8:00a.m. the next morning, it does make· a difference. • Item 3 -Consultant presentations or interviews of selected persons for contracts can be approved in the same night, if desired. The option to defer has always been available. • Items 3 and 4 -Items of a routine nature can be approved twice a month, allowing staff to get projects started and allowing us to react and respond quicker to citiz~ requests. • Item 5 -Staff can prepare the reports for approval, attend a meeting and move forward to the next project. The constant preparation and attendance at long meetings for items on the agenda that pass with no discussion is a waste of everyone's time. • Item 5 -The number of amended agendas will be greatly reduced. The number of versions of agendas floating around is becoming ridiculous. The Clerk has to wait until the last minute to publish the agenda to make sure all the amended portions are included. • Item 6 -Items of significance deserve either a deferral for more discussion, a public hearing and or a second reading. Ordinances are policy setting legislation and as such require two meetings to pass. Significant/complicated items, such as AGENDA ITEM# 7E AUGUST 11,2014 the Hu.man Rights Ordii1ance, may be discu:::sed in a separate workshop. This has alway:-~ been an option. ;; Item 7-All meetings cun lake place in the fom1al se1ting with the exception of the workshops calkd to discuss chosen items of significanc~. The qunlity of lhc video will biJ betler for th~ viewing public and the pro~essionalism will be cnhnnced. Workshop settings should be fo1· rnfom\ul discw;sions of a limited number of topics. o Hem 8 -The tca1' of missing a meeting deadline will be greatly reduced when there will be mtother meeting within n few wcel<s. a Jtern 9 -The change to .the agenda. process will allow Commissioners, stitff, citizens and the press to receive the ugendn al leusl -10 days in advance of the meeting. Thi~ will allow Commissioners two weekends to review nnd umplc time to talk with citizens nnd get wi1h start: It will nllow staff tQ research and un::;wcr additional concerns or citizens aflcr reading the report~. The agenda will be published tb1~ tho public to review and sthl'fis uvailable to address concerns bcl-brc \he meeting for over a week lt will allow the press lo publish information about items of interest prior to the meeting. This will lead to a better infonncd public and Commission and in turn lead to hctler dedsion m<Jidng. Keep in n1ind that we have imtllemented other procedures to enhance C\\ll1ll1unications with the citiz!!ns since lhu one meeting schedule wns ill1}Jkmentcd. We m·c now vidcoti1ping meetings and providing electronic agendas for ·commissioners to use on city provided iPads. Management now encourages commissioners lo directly seck answers from staff if needed. This tmhance.s th0 response time when ·gathering information for meeting preparations. BUDGET! No budget impact. IUCCOMMENDATION: Approve Ordinance No. 5·14-61 ATTACHMRNTS: _Ordinance No. 5-14-61 IU~VJEWI£D·BY CITY MANAGER:.f.{/t?;_,,~;. ORDINANCE 5-14-61 AGENDA ITEM# 7E AUGUST 11, 2014 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES, ADMINISTRATION, ARTICLE II, CITY COMMISSION, SEC. 2-16, TIME AND PLACE OF REGULAR MEETINGS, TO PROVIDE FOR TWO (2) REGULAR MEETINGS PER MONTH EXCEPT FOR DECEMBER AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA: SECTION 1: Sec.2-16 of the Code of Ordinances of the City of Atlantic Beach, Florida, is hereby amended to read as follows: (a) The regular meetings of the sity sommission shall be held on the sesond Monday of eash month. (b) Ssheduled workshops of the sity sommission shall be held as follo>.vs: (1) In the months of January through No•1ember, on the fourth Monday of the month. (2) In the month of Desember, on the third Monday of the month. (G) 1\11 regular meetings and ssheduled workshops of the Gity sommission shall be held in Gity hall at 6:30p.m. (d) If the sesond or fourth Monday falls on a holiday, the regular meeting or ssheduled •Norkshop shall be held on Tuesday immediately following the holiday. Sec. 2-16 Time and place of Regular meetings. The regular meetings of the city commission shall be held on the second and fourth Mondays of each month, except December, in city hall. at 6:30 p.m. If the second or fourth Monday falls on a holiday, the regular meeting shall be held on Tuesday immediately following the holiday. In the month of December, the regular meeting shall be held on the second Monday of the month. SECTION 2. This ordinance shall take effect immediately upon its fmal passage and adoption. PASSED by the City Commission on first reading this __ day of 2014. PASS ED by the City Commission on this second and fmal reading this __ day of __ 2014. ATTEST: Donna L. Bartle, CMC City Clerk Approved as to form and correctness: Rich Komando City Attorney Carolyn Woods Mayor, Presiding Officer AGENDA ITEM: SUBMJTTED BY: DATE: STRATEGIC PLAN L INK: CJTY OF ATLANTIC BEACH ClTY COMMISSION MEETING ST AFlr REPORT AGENI)A ITE M H ~A AUGUST II, 2014 Pub.li c Hearing on UBEX-14-001000 1 8 to a ll ow th e perma ne nt s torage ofbuscs in the Light Indu strial and Wareho using (LlW) Zo nin g Di stri c t located a t 5 12 Stewart St rcet. Jeremy Hub seh /'JCLI Build ing and Zo nin g D ir ector (-:z;.f July 17, 20 14 None BACKG ROUND: T he proposed u se-by-excep ti on is for a sc hoo l bu s parking lot near Main a nd Stewart Streets . T he ap pli cants (Student T ransp01ta tio n of America) provi d e co nt racted school b us and tr ansportation serv ices for Du va l County Public Schoo ls. Th e prope rl y is located in the Lig ht indu st ria l and Warehousing (LJW) zo nin g di s tri ct. The app li cants a re required to obt ain a use-b y-exception per Section 24-11 2 (c) (5), whi c h says one is needed by, "Estab li shm e nt s for heavy automotive repair, towing servi ce or the permanent stora ge of automo bil es, motorcycles, tru c ks and tracto rs, boa ts, m achinery and eq uipm en t, far m equipment a nd s imila r uses." T he app li ca nts inte nd to park somewhere in th e ra nge of 40-60 buses on s ite. The buses will be parked on si te wh en th ey are not on their ro ut es. There wi ll be no repairs on s ite, as the app li cants own a facility in Arlington. The a pplican ts currently use a propetty in Jacksonville Beach to s tore their bu ses th at se rve the beach com muniti es. The property is located in th e Light Industri a l Warehousing zo ning di s tri ct, but is located in close prox imity to res id e nti a l. See a ttached Com muni ty Development Board staff repo rt for fu tther detail o n si t e usage and traffic imp acts. T he Com muni ty Development Board voted to reco mmend denial by a vote of 6-0 at the ir June 17'h m eeti ng. An ow ner of seven duplexes in th e immediate vicinity of the site sp oke in opposi ti o n, s tating th at the proposa l wo uld negatively imp act his pro perties a nd nearby res id ents. The CDB exp ressed concerns over impacts to loca l traffic, roads, a nd neighborhood s. It was due to these fac tors that th e ultim ate ly vo ted to recommend denial of the proposed u se. BUDGET: None. RI~CO MM ENDATION: The Commun ity Development Boa rd recommended den ial of Use-By Excep ti on 14-001000 18 by a vole of 6-0 at theirJune 17111 meeting ATI'ACllMENTS: Draft minutes of th e Jun e 17, 20 14 Community Development Board meeting; copy ofCommunjty Developm ent Board staff report; copy of UBEX 14-00 100018 appli cation . .. REVI E WE D BY C lTY MANAGER: _----z:t......u:;._..J,._...J0:~~ ..... ---2-.....::;~~-4olf'--------- AGENDA ITEM CASE NO LOCATION APPLICANT DATE STAFF STAFF COMMENTS CITY OF ATLANTIC BEACH COMMUNITY DEVELOPMENT BOARD STAFF REPORT 4A UBEX-14-00100018 ACENDA ITEM # 8A AUCUST J I , 2014 Requ est for use-by-exception as permitted by Section 24-1 12 (c){S), to allow the perman ent storag e of automob iles in th e Light fndu strial and War ehousing (LIW) Zoning District 512 STEWART STREET STUDENT TRANSPORTATION OF AMERICA June 4, 2014 JEREMY HUBSCH, BUILDING AND ZONING DIRECTOR The a pplica nts a re Student Tran s portation of Am erica, prospect iv e te nants of t he prop erty. Thi s co mpany provid es contracted schoo l bus and t ran sportation services for Duv a l County Schools . Th e applicants will be us in g the s ite to park buses wh e n th ey are no t in use, as well as the bu s drivers' persona l ve hi cles. Th e re will a lso be a sma ll break fac ility on s ite with utilities. STA currently uses a facility that is located at 10 Street a nd 51" Av e nu e South in jacksonvil le Bea ch. Th e property is located in th e Li ght Indu stria l a nd Wa rehou s in g (LIW) zon in g district. The applicants a re requ ired to o btain a Use-By-Ex ception per Section 24·1 12 (c) (5), which sa ys one is needed by, "Es tabli s hm e nts for heavy a uto motive repair, towing serv ice or th e permanent s torage of a utomobil es, motorcycles, tru cks a nd t rac tors, bo a ts, mac hin ery and equipm ent, farm equipm e nt a nd si milar uses .. " Th e site is co mpri se d of a portio n of two lots (512 Stewart St. a nd 1 589 Ma in St.) und er the sa me ownership. Th e prop erty at 512 Stewart Street is th e proposed ve hicl e access po in t, location for th e break room fac ility a nd the dumpster for th e s ite. The property at 1589 Ma in Street will have dedicated employee parking for personal vehicles and bu s parkin g for up to 60 bu ses. There is currently a nother business known as Atlantic Mo vi ng and Storage on th e we stern portion of th is lo t ab utting Main St reet. These tw o uses will be separated by a newly co nstru cted 6 fo o t chain link fe nce. Th e r emai ni ng portion of th e lot will have a n asp hal t paved circulation path with cr us hed and com pa cted as ph a lt parkin g a re as and 3 newly installed li ght poles in th e midd le of t he s ite with 41ight fixt ures on each. Both properties, 512 Stewart Street a nd 1589 Mai n Street, have other ex isti ng uses th at differ from that of th e proposed use. It is possible to lega lly s plit each pro perty accordi ng to ci ty code, so t hat th e ex istin g uses have their own lot sepa ra te from the proposed use. Th e rema inin g po rtions of eac h lot cou ld then be co mbin e d to create a s in gle lo t for th e prop osed use or they co uld be left separa te a nd a perman ent easeme nt would be r equired on th e 512 Stewa rt Street prope rty so t ha t 1589 Main St reet property would have publi c road access. AGENDA ITEM# SA AUGUST 11, 2014 With the actual parking of buses being located only on the 1589 Main Street property, there will be a 6 foot chain link fence around the entire site in addition to a minimum 200 foot buffer from any public street. All uses within that 200 foot buffer are industrial in nature and located within the Light Industrial and Warehousing zoning district. The portion of the site on 512 Stewart Street has an existing 6 foot fence at least 20 feet from the front property line with vegetation between it and the street. The vehicle access point on Stewart Street is located within 30 feet of the intersection Stewart Street and Mary Street. This is the only way to access Mary Street which is a dead end street that currently has 20 dwelling units in duplex andjor townhouse properties. Stewart Street between Mealy Lane and Main Street has another 8 dwelling units in duplex and/or townhouse properties. Additionally, there are newer residential neighborhoods on the east side of Main Street that may be impacted by the project. Staff has concerns about the traffic and visual impacts this project will bring to this residential neighborhood. Traffic impacts will be largely staggered throughout the day. Most employees will arrive in their personal vehicles between roughly 5 and 7 AM. They would then leave in their bus almost immediately with roughly half taking a route along Dutton Island Road to Mayport Road and the other half taking a route along Main Street to Levy Road to Mayport Road. Beyond those affected in the previous paragraph, both routes are comprised of a mix of residential, commercial and industrial uses. About two thirds of the buses would return mid day, coming in around 9 to 10 AM and leaving around 1:30 to 2:30PM most days. Almost all buses would then return for the day between 5 and 7 PM and employees would leave in their personal vehicles. A few buses that transport athletic teams and similar events would return later in the night depending on when they are done. At a maximum capacity of 60 buses approved on this site, weekday traffic counts would conservatively be around 120 employee vehicle trips and 200 bus trips. Prior to this item going to the City Commission, the city's engineers in the Public Works Department will review it for impacts to local roads, possible environmental runoff issues, stabilized parking, and any other relevant impacts. COMPREHENSIVE PLAN Below are relevant policies in the Comprehensive Plan that relate to this proposed use. PolicvA.1.5.6 Commercial and light industrial development shall be located and designed so as to minimize adverse effects on residential areas, traffic facilities, and the aesthetic character of the City. Goal A.l 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 PolicyA.1.1.3 The City shall protect potable water well fields and surface waters from the adverse impacts of development and shall prohibit the establishment of incompatible land uses adjacent to potable water wells. Such incompatible land uses shall include all industrial and manufacturing uses, but shall also include uses which have the potential to contaminate surface water or groundwater resources. Page 2 of 5 Subj e ct Site a nd Surrounding Properties Figure 1. 512 Stew art St . and 1589 Main St. Areas of propose d use ar e shaded (Ja xGi s) 2013 AGEN DA ITEM # SA AUGUST II, 2014 Fi gure 2. Zoning of subject proper t y a nd surrounding p roperties. Pur ple Is Light Industrial and Orange Res idential Page 3 of 5 SUGGESTED ACTION TO RECOMMEND APPROVAL AGENDA ITEM #SA AUGUST 11, 2014 The Community Development Board may consider a motion to recommend approval to the City Commission of a requested Use-by-Exception (File No. UBEX 14-00100018) to permit permanent storage of vehicles within the Light Industrial and Warehousing (LIW) Zoning District and located at 512 Stewart Street provided: 1. Approval of this Use-by-Exception is consistent with the intent of the Comprehensive Plan. 2. Approval of this Use-by-Exception is in compliance with the requirements of Section 24-63, Zoning, Subdivision and Land Development Regulations. 3. The requested use is consistent with Section 24-112(c) in that the proposed use is found to be consistent with the uses permitted in the LIW zoning districts with respect to intensity of use, traffic impacts and compatibility with existing industrial uses, commercial uses and any nearby residential uses. If the Community Development Board does agree to recommend approval, staff suggests that the following conditions be placed on the approval: 1. Screening be required in areas where the bus parking is visible from Main and Stewart Streets. 2. No bus drivers can sleep overnight in their cars, buses, or structures on site. 3. Consideration be given to negative impacts that could result to residential neighbors relating to noise and lighting. Page 4 of 5 SUGGESTED ACTION TO RECOMMEND DENIAL AGENDA ITEM # 8A AUGUST 11, 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 14-00100018) to permit permanent storage of vehicles within the Light Industrial and Warehousing (LIW) Zoning District and located at 512 Stewart Street 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 consistent with Section 24-112(c) in that the proposed use is found to be consistent with the uses permitted in the LIW zoning districts with respect to intensity of use, traffic impacts and compatibility with existing industrial uses, commercial uses and any nearby residential uses. Page 5 of 5 Staff Report A. UBEX-14-00100018(PUBLIC HEARING) 512 Stewart St. AGENDA ITEM # 8A AUGUST 11, 2014 Request for use-by-exception as permitted by Section 24-112 (C) (5), to allow the permanent storage of automobiles. Jeremy Hubsch, Redevelopment and Zoning Coordinator stated this UBEX-14-00100018 is a request for a Use-by-Exception to allow the permanent storage of automobiles in a Light Industrial and Warehousing {LIW) Zoning District. The applicant is Student Transportation of America, prospective tenants of the property. This company provides contracted school bus and transportation services for Duval County Schools. The applicants will be using the site to park buses when they are not in use, as well as the bus drivers' personal vehicles. They are currently located in Jacksonville Beach. The applicants are required to obtain a Use-By-Exception per Section 24-112 (c)(5), which requires one for, "establishments for heavy automotive repair, towing service or the permanent storage of automobiles, motorcycles, trucks, and tractors, machinery and equipment, farm equipment and similar uses." The site is composed of two lots {512 Stewart and 1589 Main St.) under the same ownership. The property at 512 Stewart Street is the proposed vehicle access point, location for the break room facility and the dumpster for the site. The property at 1589 Main Street will have dedicated employee parking for personal vehicles and bus parking for up to 60 buses. Both properties have other existing uses that differ from that of the proposed use. It is possible to legally split each property according to city code, so that the existing uses have their own lot separate from the proposed use. The vehicle access point on Stewart Street is located within 30 feet of the intersection Stewart Street and May Street. This is the only way to access Mary Street which is a dead end street that currently has 20 dwelling units in duplex and/or townhouse properties. Stewart Street between Mealy Lane and Main Street has another 8 dwelling units in duplex and/or townhouse properties. Additionally there are newer residential neighborhoods on the east side of main Street that may be impacted by the project. Staff has concerns about the traffic and visual impacts this project will bring to this residential neighborhood. Page 1 of 4 AGENDA ITEM# SA AUGUST 11,2014 Traffic impacts will be largely staggered throughout the day. Most employees will arrive in their personal vehicles between roughly 5 and 7 AM. They would then leave in their bus almost immediately with roughly half taking a route along Dutton Island Road to Mayport Road and the other half taking a route along Main Street to Levy Road to Mayport Road. Beyond those affected in the previous paragraph, both routes are comprised of a mix of residential, commercial and industrial uses. About two thirds of the buses would return mid day, coming in around 9 to 10 AM and leaving around 1:30 to 2:30 PM most days. Almost all buses would then return for the day between 5 and 7 PM and employees would leave in their personal vehicles. A few buses that transport athletic teams and similar events would return later in the night depending on when they are done. At a maximum capacity of 60 buses approved on this site, weekday traffic counts would conservatively be around 120 employee vehicle trips and 200 bus trips. Prior to this item going to the City Commission, the city's engineers in the Public Works Department will review it for impacts to local roads, possible environmental runoff issues, stabilized parking, and any other relevant impacts. Below are relevant policies in the Comprehensive Plan that relate to this proposed use. Policy A.1.5.6 Commercial and light industrial development shall be located and designed so as to minimize adverse effects on residential areas, traffic facilities, and the aesthetic character of the City. Goal A.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. Policy A.1.1.3 The City shall protect potable water well fields and surface waters from the adverse impacts of development and shall prohibit the establishment of incompatible land uses adjacent to potable water wells. Such incompatible land uses shall include all industrial and manufacturing uses, but shall also include uses which have the potential to contaminate surface water or groundwater resources. Page 2 of4 Applicant Comment Public Comment AGENDA ITEM # SA AUGUST 11, 2014 Jeremy discussed three suggested actions to recommend approval and three suggested actions to recommend denial. Staff suggests that a condition of screening be required in areas where the bus parking is visible from Main and Stewart Streets, that no bus drivers can sleep overnight in their cars, buses, or structures on site and that consideration be given to negative impacts that could result to residential neighbors relating to noise and lighting. Daniel Middleton, Student Transportation of America's representative stated that there will be no maintenance done on the site at all. He says the primary function of the property will be the storage of the buses. Sylvia Simmons asked where does the maintenance take place and he replied at their 340 Lee Rd facility. Mr. Elmore asked why they want to abandon their current Jacksonville Beach location. Mr. Middleton replied that strategically Atlantic Beach affords them a little more opportunity in leave time to get out to their pick up locations and would be more cost effective for them. Mr. Elmore asked what is their geographical range that they would cover. Mr. Middleton's general manager, Chris, stated they go all the way down Mayport and service all the way to JTB, not crossing the intracoastal. Mr. Charles Mann of 165 Arlington Road spoke and stated he owns 7 duplexes in the immediate area of this proposed bus storage area. He says the area has been cleaned up, new homes have been built and he feels that if you intensify the industrial at this point then you will be retarding the growth and development. This would be an awful burden on this residential area. This would not be minimizing the adverse effects on this residential area that is improving. This will also increase traffic and affect the water table. He recommends if you do approve this to put some further restrictions on it such as indirect lighting no higher than 4ft, no honking of horns, no outside speakers, rodent control on a monthly basis, onsite security and a police officer onsite to direct traffic. He states that this is not bus storage but should be considered a terminal. He proposes that the applicant has not presented competent substantial evidence to meet the allowable reasons to receive a Use by Exception per the Comprehensive Plan, Policy 8.1.5.6. Page 3 of4 Board Discussion Motion AGENDA ITEM# 8A AUGUST 11, 2014 Kelly Elmore states that his big concern is the amount of traffic that this UBEX will generate and he feels this is an incompatible use for our camp plan. He is going to vote to deny this. He is also concerned about the amount of paving that would need to be done to store the buses and states there would have to be onsite Stormwater retention which would therefore limit the use of the land for their intentions. Linda Lanier agrees with Mr. Elmore and states that this will hurt the quality of life for the residents that live around the site. She is worried about the traffic on the narrow streets and the safety of all the children living in the area. She votes to oppose this. Harley Parkes agrees with Kelly and Linda. He believes that the impact this will have on the neighborhood will be overwhelming and that this type of business does not fit in the category of Light Industrial. He feels this is a transportation mode and is worried about the amount of traffic this will generate. Sylvia Simmons states that she is worried about the traffic and the exhaust caused by the buses and does not feel this is a good location for this use. Brea Paul states that she is not only concerned about the traffic this business will generate but she doesn't believe that the streets in the area were built to withstand all of those buses on them on a daily basis. Kirk discussed that at the last meeting there was a request for a taxi cab company that the board put a cap of 25 vehicles on their approval, this UBEX is requesting 60 school buses at one time and he agrees that this would overwhelm the neighborhood. He is also concerned about the early morning noise caused by starting the school buses. He also believes it doesn't fit the zoning classification. Harley Parkes makes a motion to recommend denial of UBEX-14- 00100018. Kirk Hansen seconded it. All were in favor and the motion carried. Page 4 of4 APPLICATION FOR A USE-BY-EXCEPTION City of Atlantic Beach · 800 Seminole Road ·Atlantic Beach, Florida 32233-5445 Phone: (904) 247-5826 · FAX (904) 247-5845 · http://www.coab.us AGENDA ITEM# SA AUGUST 11, 2014 Date ~fi ..... ~. :... .... _"_~_t.j_~_(_._,i'--. ____ File No .. ___________ Receipt----------- 1. Applicant's Name _)+Jde."·+ 'Tr-~~f0Ll\+i'on of ~tX"•'C.cJ 2. Applicant's Address 0 LJ 0 L e. 'C 12, 0 Ad ·::;r fk..I(So(l ,f ; ll e, f:'L • 3 ~ .5 l ( 33 3. Property Location 5 I~ S.±e. t,J (HL + $j:. A.+ I M + 1' C: '6~ != L_, 3 d-..::l - 4. Property Appraiser's Real Estate Number /7d. 3;} 7-~t) 7 5 Block No. ' Lot No. ____ _ 5. Current Zoning Classification l; ~ ~ + 'fn d 6. Comprehensive Plan Fu~ure Land Use designation ___ _ 7. Requested Use-by-Exception 5e-l.oo l Cu.S fMk.i'j L£?·f 8. Size ofParcel /0&';-qiZ! ~-Ff"' 9. Utility Provider 10. Statement of facts and special reasons for the requested Use-by-Exception, which demonstrates compliance with Section 24-63 of the City of Atlantic Beach Code of Ordinances, Zoning and Subdivision Regulations. Attach as Exhibit A. (The attached guide may be used if desired. Please address each item, as appropl'iate to this request.) 11. Provide all of the following information. (All information must be provided before an application is scheduled for any public hearing.) a. Site Plan showing the location of all structures, temporary and permanent, including setbacks, building height, number of stories and square footage, impervious surface area, and existing and/or proposed driveways. Identify any existing structures .and uses. ·b. Proof of ownership (deed or certificate by lawye1· or abstract company or title company that verifies record owner as above). If the applicant is not the owner, a letter of authorization from the owner(s) for applicant to represent the owner for all purposes related to this application must be provided. c. Survey and legal description of p1·operty sought to be rezoned. (Attach as Exhibit B.) d, Required number of copies. (Two (2) copies of all documents that are not larger than 11 x 17 inches in size. If plans or photographs, or color attachments are submitted, please provide eight (8) copies of these.) e. Application Fee ($250.00) I HEREBY CERTIFY THAT ALL INFORMATION PROVIDED WITH THIS APPLICATION IS CORRECT: ADDRESS AND CONTAC~ INFO ~ATipN 1f J'E(R~Ot'/.TO RECEIVE ALL CORRESPONDENCE REGARDING THIS APPLICATION Name: UM1 C'-.~ ('(L,dd \e-+on MailingAddress: .3~0 Lee-Q.d, :Jr.c.-k-~·J.Il~ FL, 200.d-5 Phone: 9tJl-( 7;?0-· dJ./77 FAX: ?iJ':.f;.._ 7d5 r-CJ9 01( E-mail: d M ,'JJ le_-N>,~ ~~nde. ~4-( C.Ofll EXHIBIT A· AGENDA ITEM# SA AUGUST 11, 2014 The review of an application for a Use-by-Exception shall consider the following items. Please address each of the following as applicable to your specific application. 1. Ingress and egress to property and proposed Structures thereon with particular reference to vehicular and pe~estrian safe~y and convenience, traffirr flow and contr?l a~d 1 acces~ in case of fire or cata~trophe. s \ .te. w \ \\ ~e. e-1\ fen_ ed Rn d e. )l_ \ + e.d \} l a. .$.fe-j ·.1.\et s. t ' ~+e-. 2. i~ems in C_l) above. be: -:.. n 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]qquested. RJL&-n e_.. 4. Refuse, trash collection and seryice areas, with particular refer~nce to ifems (1) an1d (2) f!.bove; ·nuca.gs-te.L Mo -t•~-=t..sb e.ec:ef·+IC-A I.S u..0 1ll oe... Chi '<.'•~ -.) . ' 5. 6. If adjacent uses are different types of uses, dt)scribe type of screening f)Il.d buffering that will be provided between your use and the adjacent use. Ch8 ·lQ Lin K \-€-t\C....l t1j 7. Signs, if any, and proposed exterior lighting, with reference to glare, traffic safety, economic effects and compatibility and harmony with pro2ertie~ in the District; (See Signs and Advertising, Chapter 17 .) Re...fe_e__ +o S~+c:.. ~l\~~-+co,'\ 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 a_gplicable provis\ons of the Comprehensive Plan. Re Q (2.. rto S~--tc.. Xl\t-Z-2>-+~a~'on Other informatiop you may wish to p_rovide: _N\__c.A_('X._· --=.o_(-=----=(o--'V'---~=-t-t....:..-_s,_e_. 0_· __ u_...:J_ .• \_l_b_~_ f r-hl .. Ke d. o o ~ 1 ~ e... .- ·--"'~---""'~ -~,_,_...__ ________ ~----~------ • ~o 4. 1. v > ~.-_ __:_L_; :3-h-+-ro_t_e_,:, ___________ "=------~----_L > = .,--,.."' Ffi c.,_ F \ 1ltu ? A++e r-1'/ Daniel Middleton From: Sent: To: Cc: Subject: Attachments: Daniel, vanbibberjax@aol.com Tuesday, May 20, 2014 2:51 PM Daniel Middleton; Chris Ingold vanbibberjax@aol.com; ACerqueira@candcfisheries.com Beaches Legal Desc, Fence_line_fo r _Beaches_Bus_Lot.pdf Attached is the map showing the fence line inside the two properties. The Lease is for 2 1/2 acres as shown by map that's part of the properties listed below: RE# 172327-0075 512 Stewart St, Atlantic Beach, Fl. 32233 Legal Description: 17-2S-29E .944 PT GOVT LOT 4 RECD 0/R 16576-1414 RE# 172321-0000 1589 Main St, Atlantic Beach, Fl. 32233 Legal Description: 17-2S-29E 2.98 PT GOVT LOT 4 RECD 0/R 14660-1313 This should be all they need. Thanks, Dream a 1 AGENDA ITEM# 8A AUGUST 11, 2014 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA I TEM 1188 A l JGlJST II, 2014 AGENDA ITEM: Public Hearing on Requ est for usc by exception (UBEX-14-001000 I 9) to allow limited wholesale operations of th e Commercial General (CG) Zoning Di strict located at 11 75 Atlantic Boulevard. SUllMITTED BY: Jeremy Hubseh Bui lding and Zoning Dircc1or DATE: .Julyl7,20 14 STRATEGIC PLAN LINK: None BACKGROUND: The ap pl icants are open ing a plant a nd produce nursery on Atlantic Boulevard west of Mayport Ro ad. The propetiy at o ne time had a mattress fa ctory, which ha s si nce been abandoned. The applicants purchased the property earlier thi s year and demo li shed several decaying structures that were on site. The proposed use of a plant nursery is allowed by right in the Commercia l Gen era l (CG) zoning district. However, the applicants also plan to se ll some of their products via who lesale. They a re required to obLain a use-by-exception by Section 24-1 11 (c) (5), which says one is needed in the CG zon ing district by, "Lim ited who lesale operations, not involving indu stlial products or processes or the manufacturing of p roducts of any kind." The primary reason a use-by-exce ption is needed for who lesaling operations in Com mercial General zo nin g, is that there is the possibi lity for adverse impact s on nea rby properties resu ltin g from traffic , excessive noise, odors, etc. In this ins tance the property is buffered from any nearby residential properties by West 1'1 Street. Add itio nally, t he proposed buildings are located on the sou th ern part of the pr operty, in closer prox imity to Atl ant ic Bou levard . Due to site access issues, t her e exists th e po ssib ility that deliveries, s hipments, aud customers will ha ve to drive through residential areas west of Maypo rt Road to reac h the site. However, the size and scale of the operation a re expected to be minimal. The applicants stated at t he Community D eve lop ment Bo a rd that they onl y a nticipate two or thre e truck. de liveries per week. The amount of de liveri es on site are more in lin e with a s mall retail business and less with a large sca le who lesa le operation. At lhe June 17111 Comm unity Deve lopm ont Board mee ting, approval was recommended to the City Commission by a vote of 6-0 with no conditions. A nearby resi dem spoke in favor of the project up on learning more about it at the meeting. BUDGET: None. RECOMMENOATlON: Approve the Use-By-Exception 14-001000 19 with no conditions ATTACHMENTS: Draft minutes or the June 17, 20 14 Co mmunity Develo pment Board meet ing ; copy of Com munity Development Board staff repo rt ; copy of UBEX-14-001 00019 application. REVJEWED RY CITY MANAGER: -::4~~t..._ .. ...:.~~ ....... ~~,....Z~, ..., .. -+-' ---------- -I AGENDA ITEM CASE NO LOCATION APPLICANT DATE STAFF STAFF COMMENTS CITY OF ATLANTIC BEACH COMMUNITY DEVELOPMENT BOARD STAFF REPORT 4-B UBEX-14-00100019 AGENDA ITEM H 88 AUGUST II, 2014 Reques t for use -by-exce ption as permitted by Section 24-111 (c)(S), to allow limi te d wh oles al e ope rations in th e Comm ercial General (CG) Zo ning District 1175 ATLANTIC BOULVARD ATLANTIC BEACH URBAN FARMS June 4 , 2014 JEREMY HUBSCH, BUILDING AND ZONING DIRECTOR Th e a pp li ca nt is Atlan t ic Beac h Urb a n Fa rm s. Thi s is a new comp a ny utili zin g inn ovative tec hn iqu es to grow produce in s id e a greenh ouse fo r r eta il sal e. It is the intent of the a ppli cant to se ll t he ir produ ce in a n o n-s ite reta il s to refro nt whil e a lso co ndu ctin g limited whol esa le o pera ti ons. Th e a ppli ca nts a r e required to o bta in a Use-By- Excepti on per Sec tion 24-111 (c) (5), wh ic h says on e is nee ded by, "Limi ted whol esa le o peratio ns, no t inv o lvin g indu stri a l produ cts or processes or th e ma nufac turin g of pro du cts o f a ny kind.'' Th e si te was previou s ly a ca rpet bu s in ess loc ated on three separa te, pa rti a ll y wo od ed lots . All ex is tin g stru ctur es hav e bee n d e moli s hed a nd th e s ite is being clean ed in prepara tion fo r new con stru ction. Whil e so me trees will have to be removed to accom mod ate th e new use, effo rts hav e bee n mad e to minimi ze th e num be r o f trees to be r em oved by pla ci ng bui ldings a nd inte rn al roa ds nea r t he locations o f previou s s tructures. A tree r emova l permit wilt be nec es sary pri or to cons tructi on. Th e main structure wi ll be a 7,000 squa re foot g reen hou se wh e re the produce growing aspec t of th e bu s in ess will ta ke pla ce. Th e re will also be a s ma ll retai l a nd offi ce buildin g, storage a nd maintena nce buildin g, and a pac kin g a nd di s tribu t ion building . All s t r uctu res mee t he ight a nd setback requirements. Th e s ite will ha ve two access poi nts. On e will be loca ted a lo ng th e access r oa d t o wes t bound Atlanti c Boul eva rd a t th e front o f the property. Th e seco nd will be lo ca t ed on Wes t 1$1 St ree t a t th e r ear of th e pr ope rty. Tra ffi c to a nd from the s ite is no t ex pe ct ed to be more th a n two 24 foo t r efri gerated tru cks a week for the wh olesa le use. Loa din g of t rucks will occ ur in a dedi ca te d lo a din g zon e th a t is se pa ra ted fr o m inte rn al traffic flow in acco rd a nce wi th ci ty stand a rds. The area to th e north of the pr ope rty is large ly res id entia l. How ever, no res id e nti a l uses d irec tly a but the site. They a re sepa ra ted by Wes t 151 St reet. In additi on, th e s ite has been des ig ned to pl ace pa rkin g a nd buildings to wa rd s th e s ou th nea r Atl a n tic Boul eva rd . Mos t t rees bein g preserved are lo ca ted be twee n th e res id e nti al a rea a nd the buildings on the s ite. Th e s ite is loc ated on At la n t ic Bou leva rd ma kin g it is s ubj ec t to Co mm e rci a l Co rridor Developm e nt Sta nd a rds in Se cti o n 24-171 . Th ese standa rd s a re bein g me t. In addition, Sec ti on 24-160 (b) r equi res dumps te rs t o be scr een ed by fenci ng or land sca pin g a nd th is will be do ne. Th e a ppli cants will s till be required to s ubmit co mm e r cia l pl a ns to AGENDA ITEM #813 AUGUST II , :ZOJ4 th e city that a re re quired to mee t all co des. Th e use-by -e xce pti on spe cifi ca lly rela tes to th eir a bil ity to co ndu ct whol es al e op e ra ti ons on s ite. Subject Site and Surrounding Properties Figure 1. 1175 Atlantic Boulevard and surroundi ng propertie s (JaxGisj2013 Page 2 of 3 SUGGESTED ACTION TO RECOMMEND APPROVAL AGENDA ITEM# 8B AUGUST 11,2014 The Community Development Board may consider a motion to recommend approval to the City Commission of a requested Use-by-Exception (File No. UBEX 14-00100019) to permit limited wholesale operations within the Commercial General (CG) Zoning District and located at 1175 Atlantic Boulevard provided: 1. Approval ofthis Use-by-Exception is consistent with the intent of the Comprehensive Plan. 2. Approval of this Use-by-Exception is in compliance with the requirements of Section 24-63, Zoning, Subdivision and Land Development Regulations. 3. The requested use is consistent with Section 24-112 (c) in that the proposed use is found to be consistent with the uses permitted in the CG zoning districts with respect to intensity of use, traffic impacts and compatibility with existing industrial uses, commercial uses and any nearby residential uses. SUGGESTED ACTION TO RECOMMEND DENIAL The Community Development Board may consider a motion to recommend approval to the City Commission of a requested Use-by-Exception (File No. UBEX 14-00100019) to permit limited wholesale operations within the Commercial General (CG) Zoning District and located at 1175 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 with respect to intensity of use, traffic impacts and compatibility with existing commercial uses and any nearby residential uses. Page 3 of 3 Staff Report B. UBEX-14-00100019 (PUBLIC HEARING) AGENDA ITEM# 8B AUGUST 11, 2014 1175 Atlantic Blvd. Request for use-by-exception as permitted by Section 24-111 (c) (5), to allow limited wholesale operations in the Commercial General (CG) Zoning District. Jeremy states that this is a request for a use-by-exception to allow limited wholesale operations in the Commercial General District. The property owners demolished the building that used to be a mattress store. The applicants are proposing to open a nursery business. The applicant is Atlantic Beach Urban farms. They will be using a tower system called hydroponics to grow produce inside a greenhouse for retail sale. This is where the plants will grow upward in the towers and is more efficient than a standard type greenhouse. It is the intent of the applicant to sell their produce in an on-site retail storefront while also conducting limited wholesale operations. They are actually allowed to do a nursery by right but are required to obtain a Use-By-Exception per Section 24-111 (c)(S), which says one is needed by, "Limited wholesale operations, not involving industrial products or processes or the manufacturing of products of any kind." The site was previously a carpet business located on three separate, partially wooded lots. All existing structures have been demolished and the site is being cleaned in preparation for new construction. The main structure will be a 7,000 square foot greenhouse where the produce growing aspect of the business will take place. There will also be a small retail and office building, storage and maintenance building, and a packing and distribution building. All structures meet height and setback requirements. The site will have two access points. One will be located along the access road to west bound Atlantic Boulevard at the front of the property and the second will be located on West 1st Street at the rear of the property. The applicant is expecting no more that two 24 foot refrigerated trucks a week for the wholesale use. Jeremy discussed the suggested actions to recommend approval and denial and states that staff does not have any proposed conditions if the board recommends approval. Sylvia asked if they are already allowed to do the greenhouse and the retail without this Use-by-Exception and Jeremy states yes, the Page 1 of3 Applicant Comment Public Comment Board Discussion UBEX is for the wholesaling. AGENDA ITEM# 8B AUGUST 11, 2014 Kelly Elmore states he will be recusing himself from the vote as he is a consultant on the project. Susan King, a partner with Atlantic Beach Urban Farms project states that they will producing a few limited produce items, particularly lettuces, herbs, and basil and sell to a single source, probably Cisco. This is a very low impact project, low water use, low energy use and even low labor use. The retail will be on a very small scale also. Mr. Hansen asked if they intended to eventually grow the wholesale business to sell to more than one company. Susan states that they are hoping to in the future but for this Use-by-Exception they will be only distributing to one company. If they do expand or increase production, then they will just fill the trucks. The capacity is already in place to absorb growth. Michael Hoffman of 176 Camelia St. spoke stating he lives a few houses away from the site. He wished the City would have bought the property and turned it into a buffer but he supports the proposed idea and the fact that they will have a retention pond. He also hopes that they will leave as many trees on site as possible. He hopes they install some attractive fencing along W. l 5 t Street. He would not like to see a 2nd greenhouse on the property. Harley states he likes the project and cannot see any reason not to approve it. Susan states that there is going to be a fence and palm trees along Main Street. Sylvia Simmons states that the streets are very small around the site and she is wondering how the truck traffic will go to the site. She is concerned that the Atlantic Blvd. entrance access will be Page 2 of3 Motion dangerous and block traffic. AGENDA ITEM# 8B AUGUST 11, 2014 Kelly Elmore states that the greenhouse(s) will be placed along Atlantic Blvd. to allow a buffer for the residents along l 5t. St. He thinks it is a great project and although he can't vote on it he believes this is a great Use-by-Exception. Linda Lanier says it is an exciting project and she likes the idea and says it will be friendly to the neighborhood. She is comfortable with the 2 trucks a week. She is in support of Atlantic Beach Urban Farms. Mr. Elmore said that the ingress/egress on Atlantic Blvd. has a code issue with ADA and will be rebuilt, but the location is already approved with the DOT right of way guidelines. He said this will be a very quiet site with only 3 employees a day. Kirk Hansen makes a motion to approve and Harley seconded. All approved, motion carried. Page 3 of3 OWNER'S AUTHORIZATION FOR AGENT AGENDA ITEM 118B AUGUST 11 ,2014 S+.etlv:.~ ;2. rt.tss.e/ is hereby authorized to ac t on behalf of (..(.'- AI/y.lhc,. tu4.;J, Urb4"' ~;t..tJ1 t.L.f.. /tzoJ&,,J.s ,.(/.41,/&l'(jthe owncr(s) of those land s described within the attached application, and as d~cribed in the attached deed or other such proof of ownership as may be required, in applying to the Ci ty of Atlantic Beach, Florida, for un application related to n Development Permit ol' othcl' net ion pursuant to : 0 ~ Zoning Vnrin nec Usc-by-Exception Building Permit 0 Comprehensive Pion Amendment 0 Zoning Mnp Amendm ent 0 l'lnt , Rcplnt or Lot Divi s ion 0 Tree Permit 0 Sign Permit D Other BY: -~--...,r-:~~-=-~/;:::......!:...~=-..::;___-._~~«---~~--Si~Owncr 1 1 L Print Name \~c~~ ~ Wt:stblcn~ Signature of Owner Print Nnmc ([;o'tl ;,t;9-7:; 1:3 Te lephone Numbcl' Stnte of EJo f.J ~ Co unt y of ::0~ ~h Signed and swom before me nn tl1is ;}-/ dny of, 20J~. By lil,mnx>c\y "B , \\\(1(~-eL.( Identifi cation verified : ___ _ Onth sworn: ____ Yes X APPLICATION FOR A USE-BY-EXCEPTION City of Atlantic Bench · 800 Seminole Road · Atlantic Bench, Florida 32233-5445 Phone: (904) 247-5826 · FAX (904) 247-5845 · http://www.coab.us AGENDA ITEM# 8B AUGUST 11,2014 Dale -----------File No .. ___________ Receipt----------- f f 'D I /I_,./,/',.' ,.__, ,......._. // L L c.. I. Applicant's Name _.LA:..L.;.~/,:....?7...:... _,J_.J.-.:-I_<.. __ =D_·.=t!k'_ .. _:G..:.·...:'1:___.:::~L!....'.L!2=-::.vr~.-=---fVI--·-'_:>~------:---- 2. Appllcnnt's Address t3 ~ 0 6 I!J /}v f iJ tJ L3. S c> v .ft., / J ~ , f.S c-H 1 Fi-3 ·v'!--~ £ 3. Property Location //7 :f 4 741 ,,fr<J-1 t:.-(3u./t:J, , 4 ZLA t-/71L B €Act/ I 4. Property Appmiscr's Real Estate Number /'707 o9" 00 ClO Block No. 11 1 1'1-,13 Lot No .. ____ _ 5. Current ~ning Classification &1rrHt&t.uli '-6. Comprehensive Plan Future Lnnd Usc designation /.....l L?-6-. L I /_ ( ) ~ ---7. Requested Usc-by·Exccption V.L /. lr--z 1 ·ry.<:l t.-./ n a t:.J 4 ;.e 7 A-1-DP' c:..e:: ~ , @1-#..JtJ /'-JIM.J<-{ 7 8. SlzcofParccl S'S',-z.o7 SF {t~ ;.t ~)9. Utility Provider -=J=-=E:..::A-.:._ __________ _ I 0. Stntement of fncls and special rcnsons for the requested Use-by-Exception, which demonstrates compliance with Section 24-63 of the City of Atlnntlc Bench Code of Ordinances, Zoning nnd Subdivision Regulations. Attnch ns Exhibit A. (The ntlnchcd guide may be used If desired. Please ndd•·css each item, ns upproprinte lo this request.) II. PrO\·ide all of the following informntion. (All informntion must be proYidcd before nn application is scheduled for any public hearing.) n. Site Plnn showing the locution of nil structures, temporary nnd permanent, including setbacks, building height, number of stories and squnt·e footage, lmpcl'Yious surfnce nren, and existing and/or proposed driYewnys. Identify nny existing structures and uses. b. Proof of ownership (deed or certificate by lawyer ot· nbslrncl company or title company that verifies record owner ns aboYc). If the npplicaut is no I the owner, a letter of nuthorization from the owncr(s) for applicant to represent the owner for all purposes related to this application must be provided. c. Survey and legal description of p•·opcrty sought to be rezoned. (Attach ns Exhibit B.) d. Required number of copies. (Two (2) copies of nil documents thnt nrc not lnrger than II X 17 inches in size. If plans m· photographs, or color nttnchmenls nrc submitted, plcnse J>rovide eight (8) copies of these.) e. Application Fee (S250.00) I HEREBY CERTIFY THAT ALL INFORMATION PROVIDED WITH THIS APPLICATION IS CORRECT: Signature of owncr(s) or authorized person if owner's nuthorlzntion form is ntlnched: ADDRESS A NFORMATION OF PERSON {ECEIVE ALL CORilESI'ONDENCE REGARDING TillS APPLICATI A-tt..~,,rrl,_ 8ct'd~J u(U3.w ~J LL.e-/ .s~ Vbl ~~~ Mailing Address: 8 QV ~ ~ _ ~V.£,oJ.Je_.. So--~ r S,..~ tk lfJO J JA~ ~uJ., A.-"3~j. Phone: "{o4 ·i rq ·lfll"l-FAX: qoy # 33'1-41 Slf E-mnil: ?kve.(!? f (it.s+.,._.,rc.l.A.v. ~ EXHIBIT A AGENDA ITEM# 8B AUGUST 11, 2014 The review of an application for a Usc--by-Exception shall consider the following items. Please address each of the following as npplicable to your specific application. I. Ingress 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 fire or catastrophe. 01~-L IN ~II Go.t¥' /,gcJL.4 tvti# --H.e Ut .J h1-1t. Jnvu~ 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. iki'..e_ 0/.£. tVaf. (Jdv'/Jz./c,_q, I ~t...c.k -b J4 tLiJI.ti.J/""'5~ tU'if~,ch..A..~ I 4. Refuse, trash collection and service areas, with particular reference to items (I) and (2) above; '!t;Vtd ~ "Ct!:<"J~'J;~~fd14t;~'-+~~~o~~ ;;::;~!::~ 5. 6. If adjacent uses are different types of uses, describe type of screening and buffering that will be P.rovided between your use and the adjacent usc. s·.k..u. ./. 1>..,. Pcfl'· ~ Wt ~? .r-Htu++ .tu t:;-11;'.~~ z :':J!I::p~~JJ ~~ ... ~,:t,r~:~ ~ J,¢/<. 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; (Sec Signs and Advertising, Chapter J 7.) Si.A.+.c p.w6/.t .At u ,c, w.tJ ~ t.J4J.. b.IJ A.jt-,....,4... RJIV4 ;- 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. ~ 5:! ~== ........ at. t .... n..J71~1<1-.~'::/"'-- Other infonnation you may wish to provide: ...!,..::..__ __________________ _ (Hi rn.1 !'1.00< 10 f\ILJI<ITCHEN/DISPLA. Y BUILDING 5' soc (15' COIIQINED) JllDINO RE!ml1CTKJl LtiE (IJ} (7J) WEST 1ST STREET (50' R/W) 0 {1,) 10' REAR !lUUl!NO RESmiC'llOO IJIE {tt} ~._:.:_ (H} .· .. GREENHOUSE ., " (.H) 7000$~ "'!.'· • {1! (~:; II ')' ' ~: 0~) (t!; (t.!J / ~·;;;,,;;;;:~:;:;~~~;:.:-;;;::=;~~~;r:~;i~~±.=t,-==·~~:::.::::~\;f~~ ~~~:-·~-,. .. '"' ATLANTIC BOULEVARD (STATE ROAD NO. 10) RIGHT OF WAY VARIES PER FDOT RjW fflANSFER MAP SECTION 72100 47.80' AGENDA ITEM# 8B AUGUST 11, 2014 STORAGE SHED ENCLOSED DUMPSTER S' SlOE (16' COI.IIlflED) IJUI.DIIID RESIRlC110N UNE s July 18, 2014 Ms. Donna Bartle The City Clerk of Atlantic Beach City Hall Atlantic Beach, Florida 32233 Dear Ms. Bartle, AGENDA ITEM# 8C AUGUST 11,2014 Please include the following proposed amendment to the July 28, 2014 Workshop Agenda for discussion and include it on the August 11, 2014 Regular Meeting Agenda. I thank you in advance for your attention to this matter. Best Regards, Mark E. Beckenbach City of Atlantic Beach Commissioner-Seat 3 (904) 536-5355 AGl~N DA ITEM# 8C AUGUST II, 2014 Motion to Amend Section 2-16 of The Code of Ordinances of the City of Atlantic Beach, Florida. The Amended Ordi nance shall read as follows: Sec. 2-16. T ime and place of regular meetings and scheduled workshops. (a) (b) (c) (d) The regular meetings of the city commission shall be held on the second Monday of each month . Scheduled workshops of the city commission shall be held as follows: (1) (2) (3) In the months of January through November, on the fourth Monday of t h e month. In the month of December, on the t h ird Monday of the month. Each workshop may start with a brief voting meeting to address and approve cons ent agenda items. Agenda items outside the s cope of the "con se nt age nda " such as, but not limited to, a resolution, an adoption or change of an ordinance, or an approval of a u se by exception sha/1 be discussed within the workshop and will b e reserved for vote at the monthly regular meetings. All regular meetings and scheduled workshops of the city commission s ha ll be held in city hall at 6:30p.m. If the second or fourth Monday fa ll s on a holiday, the regular meeting or sch edu led workshop sha ll be held on Tuesday immediately following the holiday. Mark E. Becke nbach City of Atlantic Beach Commissioner -Seat 3 July 18, 2014 CITY OF ATLANTIC B EACH C ITY COMMl SSION MEETING STAFF REPORT AGENDA ITEM 118 0 AUGUST 11 ,2014 AGENDA ITE M : Reques t to amend Section 24-84 of th e City Code o f Ordinances related to Throug h Lot s SUBM IT T il:D BY: Jeremy llubsc h Building an d Zo nin g D ircclor DATE : J u ly 17,2014 STRATEGIC PLAN LINK: Non e BA CKG ROUN D: On Ap ri l 14 ,20 14 , the C ity Com mi ss ion passe d Ordinance 90-14-222 as presente d by the fo rme r Buil din g Dir ector. T hi s ordin ance s pecifica ll y re lates to throug h lots betwee n Beach Avenue and Ocean Bou levard. T he code prior to thi s ordinance had a special pro vis ion whi c h s tated th at o n through lo ts between Beach and Ocean, th e fr ont yard wa s to be Ocean Bou levard and th e rear ya rd Beach Avenue . Thi s meant tl1at detac hed ga rages co uld be built within 5' to J 0' of Beach Avenue , dep ending on the ir height. The code change th at was im p lemented in Apr il took away the special provision th at allo wed th e rear ya rd to be on Beach Avenue. The co de now reads that thro ugh lots between Be ac h and Ocea n arc to be treated th e sa me as through lots elsewhere in the city. On throu gh lots elsew here in th e city, both street facing s ides of the pr operty arc co nsidered the fr ont ya rd. T hi s mean s that you cannot build detached garages, pools, or ot her accessory s tru ctu re s within 20 feet of the street on eith er street frontage . The co de section that previously allowed special co nsi deration for through lots between Beach and Ocean was in p lace because of the uniqueness of Beach Avenue. Beach Aven ue is in m any ways as much of an all eyway as it is a roa d . It is considered the r ear ya rd for ocean fro nt ho mes, and ba s hi storica ll y been th e rear ya rd tor homes o n through lots between Beach and Ocea n. As such, it is lined wi th detached garages and garage apatiments . The code as enacted will li mit the bui ldable area of through lo ts bet wee n Beach and Ocea n, and po tentiall y lead to archit ectural des igns that do not fit in with th e character of the area . Staff beli eves th at th ere are so me unintend ed conseq uences of the code change and wo uld like both th e Com munity Develo pm ent Board and Co mmi ssion co nsi der res tori ng back to its ori gin al state. BUDGET: None . REC OMMENDATION: Direct staff to res tore Section 24-84 back lo its otigin al slate pri o r to th e adoption o f Ordin ance 90-14-222. ATTACHMENTS: code and current code Vi sua l represe ntatio n of ~ode change scena ri os, example of prev ious REVTEWED BY C ITY MANAGER: __ -?J__:...__....'---'!~::_&1..30;.R...,~r.~;;c.;.:,....,~~...-""'-~"':.,__-------- Through Lot Code Examples D D D D D D Figure 1. Example of original code, which all owed detached ga r ages on Beach Aven ue oD oo DCJ AGENDA I TEM# 80 AUGUST I I , 2014 Figure 2. Example of code that was presented, which allows detached garages o n either street. LP I b.____l I -.__ -D Figure 3 . Exa mple of code t h at was enacted. Ga rages must be 20' from either road . Previous Code Sec. 24-84. Double frontage lots. AGENDA ITEM# 80 AUGUST 11, 2014 (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 Boulevard lots with double frontage. For double frontage lots extending between Beach Avenue and Ocean Boulevard, the required front yard shall be the yard, which faces Ocean Boulevard. Current Code 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 Boulevard lots with double frontage. For double frontage lots extending betvveen Beach /\venue and Ocean Boulevard, the required front yard shall be the yard, which faces Ocean Boulevard. AGENDA ITEM: SUBMITTED BY: DATE: CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT 90-Day Cale nd ar for the Mayor and Comm ission AGF.NOA ITEM 119A AUGUST I I, 20 14 Yvonne Calverley, Executive Assistant to the City Mana i'c__.. July 14 , 2014 STRATEGIC PLAN LINK: None BACKGROUND: The 90-day calendar is included on the agenda for the purpose of setting meeting dates, determining the loc ation , time and whether or not to videotape special meetings and workshops if the Commission desires. The roJling 90-day calendar will be t·ev ised after receiving input from City staff and the Commiss ion and will be in cl uded in each agenda for consideration. Special note: • Police Building Workshop will be held on Monday, August 11 111 at 5 pm. • Proposed date for the Annual Board and Committee Member Appreciation Rec eption is Thursday, Octob er 2nd at 6:3 0pm. • Proposed date for the next Town Hall Meeting is Saturday, October 18 111 at 10 am in the Commission Chamber. BUDGET: None RECOMMENDATION: For discussion only. ATTACHMENT: 1) Mayor and Commission 90-Day Calendar (August through October) . CJTY MANAGER: '-'1'1 .. t/"'~-~~ 3 5 10 11 Workshop 12 ISSiOn 6:30 pm-Chamber (Invoc -Hill) (Videotaped) ,-18 19 24 25 Commission 26 Workshop 6:30 pm-Chamber (Videotaped} 31 August 2014 1 6 8 13 14 15 Budget Workshop 5 pm -Chamber (Videotaped} I 20 21 22 Budget Workshop 5 pm -Chamber (Videotaped) T 28 29 e\\Sletter Due (Mayor) Due Date for Agenda Items 2 9 16 '>" -:J 30 :> :>C) ~~ C)Z ~0 en > -3 - --3 -t"l ~3: =:;t: ""'\0 > September 2014 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY I 1 2 3 4 5 6 Labor Da) City Offices Closed 7 8 9 10 11 12 13 Commission Mtg 6:30pm ~ewsletter Due Due Date for (lnvoc -Daugherty) (Mayor) Agenda Items (Videotaped) 14 15 16 17 18 19 20 21 22 23 24 I 25 26 27 Commission Workshop 6:30pm (Videotaped) 28 29 30 October 2014 SU~D.-\Y 1\IOl'IHY TUESD.\Y \\'EO;-.:E.SD:\ Y THURSD.-\Y FRID.-\Y S . .-\TURD.-\Y 1 2 3 4 Board and Committee ).!ember -BBQ Reception 6:3 0 pm Adele G rage (Ientati,·e) 5 6 7 8 9 Ru Shots 10 11 8 to 11 am Chamber Newsletter Due (\1ayor) 12 I 13 14-15 16 c 18 Commission Mtg To\lm Hall Meeting 6:30pm Due Date for lOam (Jnvoc -Beckenbach) Agenda Items Chamber (Videotaped) (Not videotaped) 19 20 21 ?? 23 24 25 I 26 T 28 29 30 I 31 Commission I Workshop 6:30pm (Videotaped) I