8-11-14 Amended Agenda Packet 1
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
August 11, 2014 - 6:30 PM
AMENDED AGENDA
Call to order
Invocation and pledge to the flag
1. A. Approve the minutes of the Regular Commission Meeting of July 14, 2014.
B. Approve the minutes of the Workshop of June 23, 2014.
C. Approve the minutes of the Special Workshop on Police Building of June 23, 2014.
D. Approve the minutes of the Public Meetings of June 27, 2014.
2. Courtesy of Floor to Visitors
3. Unfinished Business from Previous Meetings
A. City Manager’s Follow-up Report.
4. Consent Agenda
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE
ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE
FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF
DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA
AND WILL BE CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION AND STAFF
RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COMMISSION
ON THESE ITEMS.
A. Acknowledge receipt of the Building Department Monthly Activity Report 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
Amended 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.
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA;
SUPPLEMENTING ORDINANCE NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A
$13,960,0000 UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014; AUTHORIZING
AWARD OF THE BONDS TO TD BANK, N.A. FOLLOWING SOLICITATION OF COMPETITIVE
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PROPOSALS; AUTHORIZING THE EXECUTION AND DELIVERY OF THE BOND, THE LOAN
AGREEMENT AND THE ESCROW DEPOSIT AGREEMENT; AUTHORIZING CERTAIN CITY
OFFICIALS TO TAKE ALL NECESSARY ACTION IN CONNECTION WITH THE ISSUANCE OF
THE BOND AND THE EXECUTION AND DELIVERY OF THE LOAN AGREEMENT AND THE
ESCROW DEPOSIT AGREEMENT AND PROVIDING AN EFFECTIVE DATE.
7. Action on Ordinances
A. ORDINANCE NO. 15-14-14, Public Hearing and Final 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. 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.
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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.
This agenda was amended on 8/8/14.
* Item 6A reflects amendments to the title for Resolution No. 14-07. The original title shown in
strikethrough is being replaced with the amended title shown in underline. The supporting documents
have also been revised for Item 6A.
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
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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
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 ATLANTlC BEACH
CITY COMMJSSION MEETING
STAFF REPORT
AGENDA lTEM//4B
1\UGlJST II , 20 1'1
Extens ion of Annua l Janitorial Services for Ci ty Faci liti es-Bid
No . 1213-06
Yvonne Ca lverley , Exec utive Assistant to the City Ma nage JC -
July1 ,201 4
STRATEGIC PLAN LINK: N/ A
BACKGROUND: The current contract for janitoria l services expires on September 30,
2014. Over th e past year, Suprem e JanHorial Service has provided the
City with janitorial serv ices for all City facilities . They have
demonstrated great c ustom er service and have done a professiona l j ob
maintain in g the cleanliness of the facilities. The City has spoken with
the CEO/Ow ner of Supre me Janitoria l Serv ice regard in g a one-year
extensio n a nd they have agreed to renew the current contract at t he
same price. Per Bid No . 1213-06, th e City has the op ti on of
extending the curr ent co ntract for three (3) addi t io na l one-year
periods and this proposed exte nsion will be th e first.
BUDGET: No additiona l cost. The cunent yearly amount paid to Supreme
Jan itori al Service is $50,796.00 .
RECOMMENDATION: Recommend ili e City Co mmi ss ion exten d th e janitori al conn·act to
Supreme Janitoria l Service fo r one (1) additiona l yea r to ex pire o n
Se pt ember 30, 2015 .
ATTACHMENT: 1) Letter of acce ptance dated June 26,2014 from Supreme Ja nitorial
Servic e.
C lTY MANAGER ~ ~ c7~
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: List of prop ert y to be decl ared surplu s
SUBMITTED BY : Ne lso n Van Lierc , C ity Mana ge r
DATE: Jul y 18,2014
AGENDA ITEM II 4C
AUGUST II , 2014
BACKGROUND: Over time, the City accumu lates vario us properties that lo se
th e ir usefuln ess due to deteri oration or obsolescence. Only
it ems de emed tntl y of no use to the City are on thi s li st.
T hese assets are eith er not operati onal , have been deemed
no longe r cost-effective to repair, or we re received through
fo rf'ei ture.
Department Description Mile~ge Serlai/VIN #
Forfeiture -PO 2004 Chevrole t Impala 162 041 2G1VVF52E849247608
2001 BMW 23,
Forfeiture -PO Convertible 80,568 WBACN 33431 LM01909
Video Tra nsmitter
Po lice Dept System-Hi 8 Recorder N/A 16080 16008 08919
Wireless Waistband
Police Dept Video Transmitter N/A 21275
BUDGET: There is no bud get for thi s actio n
RECOMMENDATION: Dec lare th is li s t of properl y as sur plus so th at th e items on
it may be disposed of in the mo s t benefic ial way to th e
C ity.
ATTA C HM E NTS: None
.,
REVIEWED BYClTY MANAGER:_7z,L...L.Jt:....:(/,.:.....!*"'=~P.;q~!c'"' .. .__ ____ _
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\GL::NIJA ITE M ii4D
AUGUST II , 20 14
BU DGET: Th is acti on wi ll prov ide g~·a nt fu nding to be add ed to the 20 14-15 Pat ro l
an d CSU Detect ive salary acco un ts to pattiaJl y fu nd one (l ) CO Ps officer pos ition a nd
one (I ) CSU Detect ive pos it ion.
RECOMME NDATIONS: To authorize the Mayo r to sign t he related paperwork fo r
the a ppli ca ti o ns and th e sub sequ ent paperwo rk related to th e JAG grant. In additi o n, to
auth ori ze Mi chae l D. Classey to submit th e app licat ions on J in e oncl have th e
au tho ri za ti o n to e lec tron ica ll y sign th e on-lin e appl ica ti ons on b ehalf of th e Mayo r a nd
the City.
ATTACHMENTS: None
REV IEWED BYCITY MANAGE R: "Jt~ k
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: RESOLUTION NO. 14-07
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA; SUPPLEMENTING ORDINANCE
NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A
$13,960,000 UTILITIES SYSTEM REVENUE REFUNDING
BOND, SERIES 2014; AUTHORIZING AWARD OF THE BONDS
TO TD BANK, N.A. FOLLOWING SOLICITATION OF
COMPETITIVE PROPOSALS; AUTHORIZING THE EXECUTION
AND DELIVERY OF THE BOND, THE LOAN AGREEMENT AND
THE ESCROW DEPOSIT AGREEMENT; AUTHORIZING
CERTAIN CITY OFFICIALS TO TAKE ALL NECESSARY ACTION
IN CONNECTION WITH THE ISSUANCE OF THE BOND AND
THE EXECUTION AND DELIVERY OF THE LOAN AGREEMENT
AND THE ESCROW DEPOSIT AGREEMENT AND PROVIDING
AN EFFECTIVE DATE.
SUBMITTED BY: Nelson VanLiere, City Manager
DATE: August 8, 2014
BACKGROUND: The City's Financial Advisor, Dunlap and Associates, has recommended
that it is an advantageous time to refund all of the City's outstandin~ debt, other than the two
State Revolving Fund (SRF) loans. The City will achieve debt service savings of $1,618,745
through refunding the cuiTent debt and obtainmg new debt at an interest rate of 2.33%. This is a
9.5% savings to the City and lowers our debt service by about $145,000 per year through
1 0/0112025. The final interest rate was set on August 7, 2014, three (3) business days prior to
the closing date of August 12, 2014.
The refunded debt will be legally defeased upon the issuance of the new indebtedness. An
escrow account will be created with Wells Fargo, acting as the City's Escrow Agent, to hold the
proceeds of the new indebtedness. The proceeds will be invested until the date the refunded
bonds are redeemed.
The City may only incur debt by ordinance per the City's Charter. Subject and pursuant to the
provisions of the supplementing Ordinance No. 15-14-14 and this resolution, the City is
authorized to incur a Loan and to issue the Bond in evidence thereof, according to the terms of
the Loan Agreement attached hereto as Exhibit B. All of the terms and covenants contained in
the Loan Agreement are incorporated herein by reference. The Bond Ordinance and the Loan
Agreement, upon the funding of the Loan and the issuance of the Bond, shall constitute a
contract between the City and the Lender.
RECOMMENDATION:
ATTACHMENTS:
Approve Resolution No. 14-07 and authorize the Mayor
and City Manager to sign all related documents where
appropriate for each to sign.
Resolution No. 14-07 and Exhibits
REVIEWED BY CITY MANAGER: --1~ Vtkt ;Ice,/"
'
RESOLUTION NO. 14-07
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA; SUPPLEMENTING ORDINANCE
NO. 15-14-14; AUTHORIZING THE ISSUANCE OF A $13,960,000
UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES
2014; AUTHORIZING A WARD OF THE BONDS TO TD BANK,
N.A. FOLLOWING SOLICITATION OF COMPETITIVE
PROPOSALS; AUTHORIZING THE EXECUTION AND
DELIVERY OF THE BOND, THE LOAN AGREEMENT AND THE
ESCROW DEPOSIT AGREEMENT; AUTHORIZING CERTAIN
CITY OFFICIALS TO TAKE ALL NECESSARY ACTION IN
CONNECTION WITH THE ISSUANCE OF THE BOND AND THE
EXECUTION AND DELIVERY OF THE LOAN AGREEMENT
AND THE ESCROW DEPOSIT AGREEMENT AND PROVIDING
AN EFFECTIVE DATE.
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 in this resolution shall have the meanings as
defined in the Loan Agreement.
Section 3. A WARD OF BOND; LOAN AGREEMENT AND ESCROW DEPOSIT
AGREEMENT.
(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) Award of Bond and Loan Agreement. 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 A, 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 awards the sale of the Bond to the
Bank, upon the terms set fmih in the Bond, including but not limited to interest rate, interest
payment dates, maturity dates and amounts, and te1ms of prepayment, as set fmih in the revised
form of Loan Agreement attached hereto as Exhibit B, with such modifications to the terms of
the Loan Agreement as are set forth therein. The revised form of Loan Agreement, attached
00362197-4
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
hereto as Exhibit B, is hereby approved and the appropriate officials of the City are hereby
authorized to execute and deliver the Loan Agreement to the Banlc The Bond shall be issued in
substantially the form set fmih in Exhibit A to the Loan Agreement and the appropriate officials
of the City are hereby authorized and directed to execute and deliver the Bond to the Bank.
(c) Escrow Deposit Agreement. The form of the Escrow Deposit Agreement attached
hereto as Exhibit C is hereby approved and the appropriate officials of the City are hereby
authorized to execute and deliver the Escrow Deposit Agreement to the escrow holder, Wells
Fargo Bank, N.A.
Section 4. NECESSARY ACTION. The Mayor, City Manager, City Clerk, City
Attorney and Bond Counsel are designated as the agents of the City in connection with the
issuance and delivery of the Bond, the Loan Agreement and the Escrow Deposit Agreement 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 Bond, the Loan Agreement, and the Escrow
Deposit Agreement which are not inconsistent with the terms and provisions of the Ordinance
and this Resolution.
Section 5.
its adoption.
EFFECTIVE DATE. This resolution shall take effect immediately upon
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:
CITY OF ATLANTIC BEACH, FLORIDA
By: __________________________ __
Carolyn Woods
Mayor
By: ---------------------------------
Richard C. Komando, Esq.
Kopelousos, Bradley & Ganison
1279 Kingsley A venue, Suite 118
Orange Park, FL 32073-4604
City Attorney
ATTEST:
By: -----------------------------------
00362197-4
Donna L. Bartle
City Clerk
2
00362197-4
EXHIBITS
TO
RESOLUTION
Exhibit A-June 9, 2014 Letter ofTD Bank, N.A.
Exhibit B -Loan Agreement
Exhibit C -Escrow Deposit Agreement
3
AMENDED AGENDA ITEM# 6A
AUGUST 11, 2014
Exhibit A
June 9, 2014 Letter ofTD Bank, N.A.
00362197-4
4
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
mJ aank
Aml!riCII'i Most Conv nll!nt Dilnk •
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
AMENDED AGENDA ITEM# 6A
AUGUST II , 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 sucl1 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 iHE BANK'S INTERNAL POLICY AND NOTHING HEREIN SHALL CONSTITUTE A BINDING
COMMITMENT TO LEND. Further, we expressly advise you that TD Bank , N.A. (t11e "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 relia nce 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 conta ct information is noted above.
Very truly yours ,
TD BANK, N.A.
By~ cOleYf1es
Vice President
Repayment Terms:
Default Rate of Interest:
Late Charges:
Prepayment Premium:
AMENDED 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 tho 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.
AMENDED 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 repurls:
Type of Reports Frequency
Financial Statements
Audited
Approved Budget
Covenant Compliance
Certificate
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:
AMENDED 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 Materia~ 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 lhe 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
Exhibit B
Loan Agreement
00362197-4
5
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
LOAN AGREEMENT
AMENDED 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 fmih in the recitals above and the following words and tetms 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 $13,960,000 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 petiaining 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
cmTesponding 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
Department of Treasury (including applicable final regulations, temporary regulations and
proposed regulations), the applicable rulings of the Internal Revenue Service (including
00352137-3
AMENDED AGENDA ITEM# 6A
AUGUST ll, 2014
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 Alticle 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 $13,960,000.
"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
Tem 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.u s
TD Banlc, N.A.
9715 Gate Parkway N01th
Jacksonville, FL 32246
Attn: Coley Jones
Email address: col ey.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 fmther supplemented by Ordinance No . 15-14-14, enacted on
August 11, 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.
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AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
"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 Nmih, 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 miicles and sections of
this Agreement have been insetied for convenience of reference only and are not to be
considered a pati hereof, shall not in any way modify or restrict any of the tetms 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 tetms 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.
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 will, subject to the terms hereof and of the Bond, take all action
00352137-3 3
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
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 legal,
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 orders 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 mmmer 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 A1iicle 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 f01ih herein; provided, however, that no amendment or modification of
such provisions 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 Issuer has the right to establish separate Reserve Accounts for different series of
bonds issued thereunder. The Issuer 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 Lender hereby consents to the requirement for the Renewal and Replacement Fund
00352137-3 4
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
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 III
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:
U!} Payment. The Issuer shall pay the principal of and the interest or any redemption
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 .
.Q;U 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.
~ 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
00352137-3 5
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
and after receipt by the Issuer of reasonable notice from the Lender at the offices the Issuer.
ill 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 of 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 270 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 refened 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 Atiicle III.
(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 perfonn 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 paid by it.
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 transfened, 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)(l), (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.
00352137-3 6
AMENDED AGENDA ITEM# 6A
AUGUST I l, 2014
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 in·evocable lien on the Pledged Revenues, all in the manner and to the extent
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 incuned 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
00352137-3 7
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
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, WaiTanties 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 arbitrage
limitations imposed by Sections 103(b)(2) and 148 ofthe 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 pe1mit 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 Code), the acquisition of which
would cause the Bond to be an arbitrage bond for purposes of Sections 1 03(b )(2) and 148 of the
Code. The Issuer fmiher agrees and covenants that it shall do and perform all acts and things
necessary in order to assure that the requirements of Section 1 03(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(±) of
00352137-3 8
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AMENDED AGENDA ITEM # 6A
AUGUST II, 2014
(3) to maintain and retain all records pertaining to and to be responsible for
making or causing to be made all detetminations 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) ofthe 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 te1ms "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
allocable to any fund or account established herein may be invested in a common investment
pool, 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 fmih 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 fmih in this Agreement and the Bond on its pmi 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 occmTed and be continuing at such time.
00352137-3 9
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
Section 4.03 Suppmiing 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 attomey 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 193 3, 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
(c) Such additional supporting documents as the Lender may reasonably request.
ARTICLEV
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 tetms and conditions set forth in this
Agreement. The Issuer agrees to repay the principal amount bon-owed plus interest thereon upon
the terms and conditions set fmih in this Agreement and the Bond.
Section 5.02 Description and Payment Tetms 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 only 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 occmTed 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
00352137-3 10
AMENDED AGENDA ITEM # 6A
AUGUST II, 2014
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 wananty 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 comi 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 comi 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 prope1iy, and if the
aforesaid adjudications, orders, judgments or decrees shall not be vacated or set aside or 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 comi 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 perfmmance 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 pmiial
exercise of any such right, power or remedy preclude any other or fmiher exercise thereof, or the
00352137-3 11
AMENDED AGENDA ITEM# 6A
AUGUST I I, 2014
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 incuned 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
counterpmis, 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 or account for more than one such
counterpart.
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 canier service; and five days after it is sent, if mailed,
cetiified 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 patiies. 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 Patiy Beneficiaries. It is the intent and agreement of the parties
hereto that this Agreement is solely for the benefit of the patiies hereto and no person not a party
hereto shall have any rights or privileges hereunder.
00352137-3 12
AMENDED AGENDA ITEM # 6A
AUGUST 11,2014
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 pmiy.
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.
Section 7.12 Further Assurances. The pmiies 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 canying 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.
00352137-3 13
AMENDED 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.
ATTEST:
By: ____________________________ _
City Clerk
APPROVED AS TO FORM AND
LEGALITY:
By: __________________________ __
City Attorney
00352137-3
CITY OF ATLANTIC BEACH, FLORIDA
By: ______________________ __
City Manager
14
00352137-3 15
AMENDED AGENDA ITEM # 6A
AUGUST 11,2014
TD BANK, N.A.
By:
Vice-P~r_e_s~id~e-n_t ____________________ __
EXHIBIT "A"
FORM OF BOND
AMENDED AGENDA ITEM# 6A
AUGUST I I, 20I4
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.
$13,960,000
CITY OF ATLANTIC BEACH, FLORIDA
UTILITIES SYSTEM REVENUE REFUNDING BOND, SERIES 2014
The CITY OF ATLANTIC BEACH, FLORIDA (the "Issuer"), 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"), the principal sum of Thitieen Million Nine Hundred Sixty Thousand Dollars
($13,960,000) or such lesser amount as shall be outstanding hereunder, together with interest on
the principal balance outstanding at the Interest Rate (defined below), 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"), 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 te1ms
used herein in capitalized fmm 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 wire transfer.
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 fmih 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, then
00352137-3
A-1
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
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 (a) two and thiliy-three hundredths per
centum (2.33%) multiplied, prior to a Determination of Taxability, by (b) the Margin Rate
Factor, and after a Determination of Taxability by the Taxable Rate, 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 Dete1mination 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 comi 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 ofthe 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.
"Margin Rate Factor" shall mean the fraction the numerator of which is equal to one (1)
minus the Maximum Federal Corporate Tax Rate on the date of calculation and the denominator
of which is 0.65. The Margin Rate Factor shall be 0.65/0.65 or 1.0 so long as the Maximum
Federal Corporate Tax Rate shall be 35%, and thereafter shall increase from time to time
effective as of the effective date of any decrease in the Maximum Federal Corporate Tax Rate.
"Maximum Federal Corporate Tax Rate" is the highest marginal federal income tax rate
charged to U.S. corporations in effect at the time of the prepayment calculation. The "Maximum
Federal Corporate Tax Rate" is cmrently 35% (or 0.35 in numerical te1ms).
00352137-3
A-2
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
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 pmi, 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 pmi shall be applied against
remaining installments of principal due hereunder in such order as the Issuer shall select.
The Yield Maintenance Fee shall be calculated as follows:
The cuiTent 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 culTent 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 propetiy 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 PAY ABLE 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.
00352137-3
A-3
AMENDED AGENDA ITEM# 6A
AUGUST I I, 2014
All terms, conditions and provisions of the Loan Agreement are by this reference thereto
incorporated herein as a pmi of this Bond.
This Bond may be exchanged or transferred but only as provided in the Loan Agreement.
It is hereby ce1iified, recited and declared that all acts, conditions and prerequisites
required to exist, happen and be performed precedent to and in connection with the execution,
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 statutmy 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 ofthis Bond is August 12, 2014.
(SEAL)
ATTESTED AND COUNTERSIGNED:
By: __________________________ __
City Clerk
APPROVED AS TO FORM AND
LEGALITY:
By: __________________________ __
City Attomey
00352137-3
CITY OF ATLANTIC BEACH, FLORIDA
By:
Mayor
A-4
00352137-3
SCHEDULE A
City of Atlantic Beach, Florida
Utilities System Revenues Refunding Bond, Series 2014
Date
(October I)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
TOTAL
Principal Amount
$1,090,000
1,160,000
1,185,000
1,215,000
1,240,000
1,265,000
1,300,000
1,330,000
1,360,000
1,390,000
1,425,000
$13,960,000
A-5
AMENDED AGENDA ITEM# 6A
AUGUST I I, 20I4
Exhibit C
Escrow Deposit Agreement
00362197-4
6
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
ESCROWDEPOSIT AGREEMENT
AMENDED 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 Revenue
Refunding Bonds, Series 2004 (the "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"), 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
Refunding Bonds, Series 2010B (the "2010B Bonds"), as to which the Total Debt Service (as
hereinafter defined) is set forth on Schedule A; and
WHEREAS, the 2004 Bonds, the 2010A-1 Bonds and the 2010B 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 Refunded 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 2010B Bonds, October
1, 2014 and with respect to the 2010A-1 Bonds, August 18, 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
00361211-6
AMENDED AGENDA ITEM # 6A
AUGUST I 1, 2014
will be held 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 Service 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) "20 1 OB Bonds" means the outstanding City of Atlantic Beach, Florida Utilities
System Revenue Refunding Bonds, Series 2010B, originally issued in the aggregate amount of
$690,000, as identified in Schedule A attached hereto.
G) "20 14 Bond" or "Bond" means the City of Atlantic Beach, Florida, Utilities
System Revenue Refunding Bond, Series 2014, issued in the aggregate amount of $13,960,000,
in order to refund the Refunded Bonds.
(k) "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 $15,189,192.03 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 in-evocable escrow by the
Escrow Holder separate and apmi from other funds of the Escrow Holder and applied solely as
provided in this Agreement. The proceeds of the Bond being deposited into the Escrow Account
equal$13,912,716.65. The funds deposited by the City into the Escrow Account from the
Sinking Fund from the Refunded Bonds equal $1,276,475.38. 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 in-evocable escrow during the te1m 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 tetms of this Agreement for the
payment of the Refunded Bonds;
00361211-6 2
SECTION 4. PAYMENT OF REFUNDED BONDS AND EXPENSES.
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
(a) 2004 Bonds. On the date and in the amount set fmih on Schedule A, the Escrow
Holder shall transfer to Wells Fargo Banl<:, N.A., the Paying Agent for the 2004 Bonds (the
"Paying Agent"), in immediately available funds solely from amounts available in the Escrow
Account, a sum sufficient to pay the redemption price for the 2004 Bonds on the date as shown
on Schedule A.
(b) 2010A-1 Bonds. On the date and in the amount set fmih on Schedule A, the
Escrow Holder shall transfer to SunTrust Banl<:, the holder of the 2010A-1 Bonds, in immediately
available funds solely from amounts available in the Escrow Account, a sum sufficient to pay the
principal of and the interest on the 2010A-1 Bonds on the date shown on Schedule A. The wire
instructions are: Sun Trust Bank-ABA# 061000104-Account #9088000112-Loan Account
#0050668811-67.
(c) 2010B Bonds. On the date and in the amount set forth on Schedule A, the Escrow
Holder shall transfer to Branch Banldng and Trust Company, the holder of the 2010B Bonds, in
immediately available funds solely from amounts available in the Escrow Account, a sum
sufficient to pay the principal of, redemption premium, and the interest on, the 201 OB Bonds on
the date shown on Schedule A. The wire instructions are: Branch Banldng and Trust Company,
BB&T Governmental Finance, 233 West Nash Street, Wilson, NC 27893-ABA# _053101121
-Account #5214994315-Contract #99090000 14-00001.
(d) Surplus. After transferring the amounts on deposit in the Escrow Account to the
holders of the 2010A-1 Bonds and the 2010B Bonds and after making the payment 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. The Escrow Holder shall have no power or
duty to invest any fimds held under this Agreement.
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 fmih 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 Trust Fund. Such notice shall be in substantially the fmm set
fmih as Exhibit 2, attached hereto.
SECTION 7. INDEMNITY. To the extent petmitted 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 servants, from and against any and all liabilities,
obligations, losses, dmnages, penalties, claims, actions, suits, costs, expenses and disbursements
00361211-6 3
AMENDED AGENDA ITEM # 6A
AUGUST II, 2014
(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 delivery 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 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 tetmination 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 necessary
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. Anything in this
Agreement to the contrary notwithstanding, in no event shall the Escrow Holder be liable for
special, indirect or consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Escrow Holder has been advised of the likelihood of such loss or damage
and regardless of the form of action.
SECTION 8. RESPONSIBILITIES OF ESCROW HOLDER; AGENTS, ETC. The
Escrow Holder and its respective successors, assigns, agents and servants shall not be held to any
personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and
delivery 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 eiTors 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 necessmy 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 celiificate 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
00361211-6 4
AMENDED AGENDA ITEM# 6A
AUGUST ll, 2014
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
instruments 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 instruments 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 instruments. A photographic copy of any instrument filed with the City under the
provisions of this paragraph shall be delivered by the City to the Escrow Holder.
(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 comi of
competent jmisdiction upon the application of the City or the holders of not less than five percentum
(5%) in aggregate ptincipal 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
otherwise become incapable of acting, or shall be taken over by any governmental official, agency,
depmiment 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 occmred, the
holders of a majority in principal amount of the Refunded Bonds then outstanding, by an
instrument or concun·ent instruments 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 the
Escrow 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 dming 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 comi of competent jurisdiction to appoint a successor
00361211-6 5
AMENDED AGENDA ITEM# 6A
AUGUST 11,2014
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 corporation or association into which the Escrow Holder may be convetied 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 corporation 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 trust,
powers, discretions, immunities, privileges and all other matters as was its predecessor, without the
execution or filing of any instrument or any finiher act, deed or conveyance on the pmi of any
pmiies hereto, anything herein to the contrary notwithstanding, provided that such successor
Escrow Holder assume in writing all the trust, duties and responsibilities of the Escrow Holder
hereunder.
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 perfmmed by the Escrow Holder pursuant to this Agreement,
out-of-pocket expenses and legal expenses to be reimbursed at cost from legally available funds
ofthe 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 tetminate 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 perfmmed should
be determined by a court of competent jurisdiction to be contrary to law, such covenant or
agreements 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 from time to time of the Refunded Bonds and it shall not be
repealed, revoked, altered or amended in whole or in pmi 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 tetms and provisions of this Agreement, for any one or more of the following
purposes:
(a) to cure any ambiguity or formal 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;
00361211-6 6
AMENDED AGENDA ITEM # 6A
AUGUST 11,2014
(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 attomeys 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 ofthis Section.
SECTION 16. COUNTERPARTS. This Agreement may be executed in several
counterparts, 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.
SECfiON 17. GOVERNING LAW. This Agreement shall be construed under the laws of
the State of Florida.
[Remainder of page intentionally left blank]
0036121l-6 7
AMENDED 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 first above written.
ATTEST:
By: -----------------------------
Name: Donna L. Bartle
City Clerk
APPROVED AS TO FORM AND
LEGALITY
By: ----------------------------
City Attorney
00361211-6
CITY OF ATLANTIC BEACH, FLORIDA
By: ____________________________ _
Name: Nelson VanLiere
Title: City Manager
8
00361211-6 9
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
WELLS FARGO BANK, N.A., Escrow
Holder
By: ____________________________ _
Name:
Title:
Period Ending
10/01/2014
Period Ending
8/18/2014
SCHEDULE A
TOTAL DEBT SERVICE
FOR
City of Atlantic Beach, Florida
AMENDED AGENDA ITEM# 6A
AUGUST II, 2014
Utilities System Revenue Refunding Bonds, Series 2004
Principal Interest Total
$13,545,000 $279,571.88 $13,824,571.88
City of Atlantic Beach, Florida
Utilities System Revenue Bonds, Series 2010 A-1 Bonds
Principal Interest Total
$757,386.90 $10,347.38 $767,734.28
City of Atlantic Beach, Florida
Utilities System Revenue Refunding Bonds, Series 2010B Bonds
Period Ending Principal
10/01/2014 $580,784.16
00361211-6
Interest
$10,686.43
10
Redemption
Premium
$5,415.28
Total
$596,885.87
Exhibit 1:
NOTICE OF REDEMPTION
CI1Y OF ATLANTIC BEACH, FLORIDA
UTILITIES SYSTEM REVENUE REFUNDING BONDS,
SERIES2004
Dated: August 18,2014
Maturing: October 1, 2015 through October 1, 2025
AMENDED AGENDA ITEM # 6A
AUGUST II, 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 Princi~al Interest Redem~tion CUSIPNo.
(October 1) Amount Rate Price
2015 $ 940,000 3.750% 100% 04825P BB4
2016 975,000 3.875% 100% 04825P BC2
2017 1,010,000 4.000% 100% 04825P BDO
2018 1,050,000 4.000% 100% 04825P BE8
2019 1,090,000 4.000% 100% 04825P BF5
2020 1,130,000 4.125% 100% 04825P BG3
2021 1,185,000 4.250% 100% 04825P BH1
2022 1,235,000 4.250% 100% 04825P BJ7
2023 1,285,000 4.375% 100% 04825P BK4
2024 1,340,000 4.375% 100% 04825P BL2
2025 1,400,000 4.500% 100% 04825P BMO
Payment of the redemption price, including accrued interest on such Series 2004 Bonds to
the date of redemption will be made on or after such l'edemption 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
conectness or accuracy of the CUSIP numbers, either as printed on the Series 2004 Bonds or as
contained in this Notice of Redemption.
00361211-6 11
AMENDED AGENDA ITEM# 6A
AUGUST I I, 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 pe1jury, 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 coiTect taxpayer identification number or
Intemal Revenue Service Form W-9 and who fail to do so may also be subject to a penalty.
DATED the 12th_day of August, 2014.
00361211-6 12
Exhibit 2
NOTICE OF REFUNDING AND DEFEASANCE
CITY OF ATLANTIC BEACH, FLORIDA,
AMENDED 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 ilTevocably
deposited on August 12, 2014, with Wells Fargo Bank, N.A, as Escrow Agent (the "Escrow Agent"),
in trust, and has set aside for such payment, sufficient moneys to pay the principal of and interest
thereon to the redemption of the City of Atlantic Beach, Florida, Utilities System Revenue Refunding
Bonds Series, 2004 maturing in the years 2015 through 2025, inclusive (the "Refunded Series 2004
Bonds") on October 1, 2014.
The Refunded Series 2004 Bonds consist of the following:
Maturity Princi~al Interest Redem~tion CUSIPNo.
(October 1) Amount Rate Price
2015 $ 940,000 3.750% 100% 04825P BB4
2016 975,000 3.875% 100% 04825P BC2
2017 1,010,000 4.000% 100% 04825P BDO
2018 1,050,000 4.000% 100% 04825P BE8
2019 1,090,000 4.000% 100% 04825P BF5
2020 1,130,000 4.125% 100% 04825P BG3
2021 1,185,000 4.250% 100% 04825P BH1
2022 1,235,000 4.250% 100% 04825P BJ7
2023 1,285,000 4.375% 100% 04825P BK4
2024 1,340,000 4.375% 100% 04825P BL2
2025 1,400,000 4.500% 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.
The lien of the Refunded Series 2004 Bonds on the Pledged Revenues has been defeased
as of the date hereof.
A notice of redemption will be mailed to the registered owners of the Refunded Series
2004 Bonds at least thiliy days prior to the scheduled redemption date of October 1, 2014.
Dated: August 12, 2014
WELLS FARGO BANK, N.A., as Escrow Agent
This notice is for your information only; you are not required to take any action at this time.
00361211-6 13
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:
AGENl>A ITEM# 7A
AUGUST II, 2111 4
App rove Ordinance No . 15-14-14 a11d a uthorize th e Mayor
and City Manager to sign all related doc uments where
approp1·iate for each to sign.
Ordinance No. 15-14-14 with Loan Agreement,
Recommend at ion from Dunlap and Associates, Inc.
Summary ofResponses and Exhibit
-
REVIEWED BY CI TY MANAGER: -2?, ?/' -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:
CITY OF ATLAN T l C BEACH
C ITY COMMISSION MEETING
STAFF REPORT
AGEND A IT EM: Retirement Ordinance No . 58-14 -3 8
AN ORDJNANCE OF THE CITY OF ATLANTI C BEACH,
AM E NDING CHAPTER 2, ADMINISTRATION, ARTICLE VI,
EMPLOYEE BE NE FITS, DIVISION 3 , GENERAL EMPLOYEES '
RETIREM E NT SYST EM , OF THE CODE OF ORDINANCES O F
THE C1TY OF ATLANTIC BEACH; AM il:NDJNG S ECTION 2-
268 , DISAI31LITY; AMENDING SECTION 2-274, MAXIMUM
PENSION; PROVIDING FOR COD IFICATION; PROVIDING
FOR SEVERABJLlTY O F PROV ISIONS; REPEALfNG ALL
ORDINANC ES IN C ONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
SUBMITT ED BY : Nelso n VanLiere, Cit y Manage r
DATE: JW1 e 13 , 20 14
/\GENOA ITEM II 713
/\UGU T I I , 20 14
BACKGROUND: At th e Ma y 15, 20 14 Pension Boa rd mee tin g of th e Gene ra l
Emp loyees' Retirement Sys tem th e pensi on atto rn ey pres ent ed the proposed ord inan ce
refe renced above that includ es amendm ents to the current orctin ance to c larify language
rega rdin g d isa bility benefi ts and to co mp ly with rece nt changes to th e Internal Reve nu e Co de
(IR C). T hese are man datory amendm ents to ensure th e continuation of th e plan 's tax
qu alifi ed statu s. Th e Board approved prese n tin g thi s ordinance to t he City Co mmi ss ion and
requ ested a n imp act stud y be performed by th e Boa rd's actu a ry, Ga bri el Ro eder Smi th (GRS)
to determi ne th e cost of amendin g th e ord inance .
As repo rte d in the attac hed Ac tu ari.al Impa ct Statement , a uthori ze d by the Board at th e Jun e
12, 2014 meetin g to be s igned by the Pens ion Adm inis trator. th ese cha nges wo uld have no
signili can t cos t imp act to the p la n beneftts.
RECOMMENDATION: Approve Ordin anc e No . 58-1 4-38
ATTAC HMENTS: Ordinan ce No. 58-14 -3 8 and Ac tu ari al Imp act St atement
REVIEWED BY CITY MAN A GER: --:/1. V a.-~
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
1\GEND/\ I T EM II 7B
AUGUST II , 20 14
CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM
ACTUARIAL IMPACT STATEMENT
Attached propo sed Ordinance incorporates language necessary to update the Plan with the
technical requirements of Internal Revenue Code and includes mand atory amendments to
ensure the continuation of the Plan's tax qualified status. There is no significant measurable
benefit cost effect to th e plan.
ACTUARY, Gabriel, Roeder, Smith & Company
By: ~ 0.1!~4117"f
Date: June 4 20 14
The above changes are in compliance with Part VII , Chapter 112, Florida Statutes, and Section 14,
Article X of the State Constitution. The Actuary was provid ed the information in the proposed
amendment.
PENS ION BOARD COMMIITEE
By: ~ t/'12..-t4 t2<£V
Date: 6 /1 z_ /; y'
~ I
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Retirement Ordinance No. 58~ 14-39
AN ORDINANCE OF THE CIT\' OF ATLANTIC BEACH,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI,
EMPLOYEE BENEFITS, DIVISION 4, POLICE OFFICERS'
RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF
ffiE CITY OF ATLANTIC BEACH; AMENDING SECTION 2-
307 , DISABILITY; AMENDING SECTION 2-310.4, MAXIMUM
PENSION; PROVIDING FOR CODIFICATION; PROVIDING
FOR SEVERABD.-ITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
SUBMITTED BY: Nelson Van Liere, City Manager
DATE: June 13 ,2014
AGE.NDA ITEM II 7C'
AUGUST I I, 20 14
BACKGROUND: At the May 15 , 2014 Pension Board meeting of the Police
Officers• Retirement System, the pension attorney presented the proposed ordinance
referenced above that includes amendments to the current ordinance to clarify language
regarding disability benefits and to comply with recent changes to the Internal Revenue Code
(1RC). These are mandatory amendments to ensure the continuation of the plan's tax
qualified status. The Board approved presenting this ordin ance to the City Commission and
requested an impact study be performed by tJ1e Board's actuary, Gabriel Roeder Smith (GRS)
to determine the cost of amending the ord inance.
As reported in the attached Actuarial Impact Statement, authorized by the Board at the June
12, 20 14 meeting to be signed by the Pension Administrator, these changes would have no
significant cost 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: -n ?"'a.., ,::lth-1
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:
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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.
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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.
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(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
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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
AGENDA ITEM fl 7C
AUGU ST l l, 20 14
CITY OF ATLANTI C BEACH POLI CE OFFICERS' RETIREMENT SYSTE M
ACTUARIAL IMPACT STATE MENT
Attached prop osed Ordinance in co rp orates language necessary 10 upda te th e Plnn with th e
technica l requireme nts of Int e rn al Reve nue Code and includ es mandato ry amendm e nts to
e nsure the continuat ion of th e Plan's tax qua li lied stat us. T here is no s ignifica nt meas urable
benefit cost e ffe c t to t he plan.
ACTUA RY , Ga bri el, Roeder, Smith & ompan y
Ay:GJ, ~Ari
Date: June 4, 2014
The above changes nre i n comp l i a n ~o:t.: w ith Pur1 Vll , C hapter 11 2, Florida Statutes, a nd Sec tion 14,
Article X of lht: State onstitution. T ht= Ac tua ry was prov id ed th e infom1at ion in t he proposed
ame ndment.
PENS ION BOARD CO MM ilTEE
.
Ay: ~ ~ ;;:?'Md
IJate: k b~.l/y:
7 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.
Whene7ler used in this artiole, the following vwrds and terms shall
have the follovling meanings unless the conteKt necessarily
requires othervlise:
Dwelling shall mean any building, structure, or portion thereof
vlhioh 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, recewers,
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 othervrise 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 vt-ho 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 v.ith the city manager. A
complaint shall be filed within one hundred eighty ( 180) days after
the alleged Ufllavrful aet oecurred. Complaints shall be in vli"iting
and shall contain such information and be in such furm 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 believe 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 court or board of competent jurisdiction
against the person charged in the complaint. The request shall be in
vfriting.
(b) Upon receiving such vffitten request and \\rfth the assistance of
the aggrieved person and city manager, vlithin 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 vlith 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 eon-viotion 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
Approval o f M i nutes
Approval of M i nutes
Courtes y o f the Floo r t o Visitors
Courtesy of the Floor
Presentation
Proclamation
Unfinished Bu siness
Miscellaneous Item s carried
forward from the preceding
m ee tings
Conse nt Age nda
Monthly Reports
Quarte rly Report
Annua l Report
Written Re port on a specific
project
Declare Prope rty Sur plus
Award Initial contract contract for
Bid
Award RFP
Exte nd Contra ct when allowed for
in the curre nt t erms.
Comm ittee Re po rts
Committee Report
Acti o n o n Res o l utions
Res olution
Action on Or d i n ances
Ordi nan ce
M i sce llaneous Bu siness
Use-by-Exce ption
Waiver
Approva l of Contract with
sign if icant importance and va l ue
Appointm ent of membe rs t o a
st anding Board or Committee
Establishing an Ad Hoc Committee,
the n appo inting it s me mbers
City M anager
City M anage r Report
Reports and/or Request s from City
Commissi oners and Cit y Attorney
Announce ments
Agenda Preparation Guidelines
Purpose Requires Specia l
Advertising
Action No
Informational-No Action No
Informational-No Action No
Ceremonial-No Action No
Action No
Acknowled ge Rece ipt No
Acknowledge Recei pt No
Acknowled ge Re cei pt No
Acknowledge Receipt No
Action No
Action No
Action No
Act ion No
I nformationa I No
Action *No
Action Yes
Discu ssion I Action Yes
Di scu ss ion I Action Yes
Di scu ssion I Action No
Di scu ss ion I Action No
Di sc u ss ion I Action No
Informational No
Informational 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
Ye s
No
No
No
No
No
AGENDA IT EM # 7E
AU GUS T 11 ,2014
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:_L.{/t?;_,,~~·
AGENDA ITEM:
SUBMITTED BY:
OATE :
STRATEGlC PLAN LINK:
CJ T Y O F AT LANTIC BE AC H
CITY C OMMISSION MEE TlNG
STAFF R E PORT
AG E NI>A ITEM II HA
AtJG US T II , 2014
Pub lic Hearing on UBEX-14-00 l 000 1 8 to a ll ow the perma nent s torage
of buses in the Lig ht Indus tria l and Wareho usi.ng (LTW) Zo ni ng Dist t·ic l
located a t 5 12 Stewart Street.
Jere my Hub sch /JCLI
Buildi ng and Zo nin g Direc tor (-z;..t
Jul y 17, 20 14
None
BA C K G ROUN D: T he pro posed u se-by-excepti on is for a sc hool bu s parkin g lot nea r Main and
Stewar t Streets. T he appl icants (S l11dent T ransp01ta ti on of Ameri ca) prov ide co ntracted school
b us an d tran spo rt atio n services for Duva l Count y Publi c Schoo ls. Th e pro perty is located in th e
Ligh t Indu stria l and Warehousing (LJW) zo nin g d is tri ct. The applicants a re r eq uired to o btai n a
use -b y-exce ption per Section 2 4-11 2 (c) (5), whi c h says one is n eeded by, ''Esta bli shm ent s for
heavy a ut omotive repa ir, to win g service or the perm anent storage of auto mo bil es, motorcycles ,
tru cks and tractors. boats . mac hin er y and equ ipm en t, far m equipm ent and s imil ar uses."
The appli ca nt s intend to p ark somew here in th e range of 40-60 buses on s ite . T he bu ses will b e
parked on si te wh en th ey are not on th e ir routes . There wi ll be no repairs on s it e, as th e
appll ca nts ow n a facility in Ar lington. T he applicant s cun·en tl y use a propert y in Jackso nv iiJ c
Beach to s to re th eir bu ses th at se rve th e beach com muniti es. The property is located in the Light
lndustri al W areho usin g zo ning di stti ct, but is located in cl ose prox imi ty to reski enti a l. See
attached Co mm uni ty Develo pment Board staff repo rt for fut i he r detail on site usage and traffi c
imp acts.
T he Com mu nity Development Boa rd vo ted to reco mme nd denia l b y a vote of 6 -0 at the ir J une
17'h meeti ng. An ow ner o f seven duplexes in the imm edi a te vicinity of the s ite sp oke in
opp os itio n, sta tin g that the proposa l woul d nega ti ve ly imp ac t his pro perti es and nearby res id ents.
T he CDB exp ressed co nce ms ove r imp ac ts to loca l traffi c, roads, and neighbo rhoods. It was du e
to these fac tors that the ulti ma tel y vo ted to recomm e nd d enial of th e proposed use .
BUDGET: None.
RI~C OMMRNDATJON: Th e Commu nity Deve lopment Boa rd recomme nd ed den iol of Use-By
Exce ption 14-00 1000 18 by a vo te of 6-0 at th e ir Ju ne 17111 meeting
ATTACHMENT S : Draft. minu tes o f the Jlln e 17, 20 14 Comm unity Development Board
meeti ng; copy of Community Develop ment Board s taff report; copy o f UBEX 14-001000 18 app lication . ..
R EVIE W ED BY ClTY MAN AG ER: _:£z~t:;_J,.,,......><;.~-M....e~---::2 ........ ~~......,4"----------
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
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
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 ATLANTI C BEACH
CITY COMMISSION MEETING
STAFF REPORT
A GENOA ITEM # 88
AtJGlJST II, 20 14
AGEND A ITF.M: P ublic Hearing o n Req uest for usc by exception (UBEX -14-00 1 000 19)
to allow limited wholesa le operat ions of th e Commercial Gene ral (CG)
Zo ning District located at I I 75 Atlant ic Boulevard .
SUBM I TTED BY : Jeremy Hubsch
Building and Zoning Director
DATE: Jul y l 7,20 14
STRAT EGIC PLAN LINI<: No ne
BACKGROUND: The ap plicants are open ing a plant and produce nurstlry on Atl an ti c Boulevard west
of Mayport Road. T he property at one time had a mattress factory , whic h has si nce bee n abandone d. T he
app li cants pur chased the property earlier thi s yea r and demo li s hed seve ral decay ing st ru c tures that were
on she. The proposed use of a p lant nursery is <I ll owed by right in the Commercia l Genera l (CG) zo nin g
distr ict. rlowever, the a pp lica nts also plan to sell so me of their products via wholesale. T hey are req ui red
to obtai n a use-by-exception by Section 24-11 1 (c) (5), whi ch says one is needed in the CG zon ing di strict
by,' Li mited who lesa le operations, not invo lving indus trial products or processes or th e manufacturing of
product s of any kind."
T he primary re aso n a use-by-exceptio n is needed for wholesa lin g o pe rat ions in Commercia l Ge nera l
zo ning , is tha t there is tbc possibility for adverse impacts on nea rby propert ies re sultin g from traffic,
excessive noi se, odors, etc. ln thi s in stance the property is buffered from any nearby res idential properties
by Wes t I >~ Strcel. Additiona ll y, the proposed bui ldings arc located on the sou th ern part of the property , in
closer prox imi ty to Atl a nti c Bo ul evard. Due to si te access iss ues , there ex ists the po ss ibili ty that
de li ve ries, shipments, and customers will have to {!ri ve tl1rough re sidentia l areas west o f Maypo rt Road to
reac h the site. However, the size and scale of th e operat ion are expected to be minim al. Th e app li cant s
sta ted at t he Communi ty Development Bo ard that they only a nt ic ipate tw o or three truck de live rie s p er
week. T he amo un t of de liveri es on s ite are mo re in line wi tb a small retai l bus in ess and le ss with a large
scale w hol esa le operat ion.
At th e Jun e I i 11 Co mmunity Developme nt Boc:u'd meeting, approval was recommended to U1e City
Co mmission by a vole of 6-0 wi th no conditi ons. A nearby residem spoke in favor of the project upon
lea rning mo re abo ut it at the mee ting .
BUDG ET: None.
RECOMMENDATION: Approve the Use-By-Excep ti o n 14-00 1000 L 9 wi t b no cond itions
ATTACHMENTS: Draft min utes or the June 17, 20 14 Co mmu nit y Devel opment Board
meet ing; copy of Com mun ity Development Board staff report; copy of UBEX-14-00 1 00019 app lica tion .
REVIEWED BY CITY MANAGER: _ __._..4t:.~-~t~< ..=.J~"'-• ....-,;/~'-I.L.<---+t-----------·
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
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
AGI~NDA ITEM # SC
AUG UST 11 ,2014
Motion to Amend Section 2-16 of The Code of Ordinances of the City of Atlantic
Beach, Florida. The Amended Ordinance shall read as follows:
Sec. 2-16. T i me and place of regular meetings and scheduled workshops.
(a)
(b)
(c)
(d)
The regular meetings of the city commission sha ll 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 the month.
In the month of December, on the third Monday of the month.
Each workshop may start with a brief voting meeting to address
and approve consent agenda items. Agenda items outside the
scope of the "consent agenda" such as, but not limited to,
a resolution, an adoption or change of an ordinance, or an
approval of a use by exception shall be discussed within the
workshop and will be reserved for vote at the monthly regular
meetings.
All regular meetings and scheduled workshops of the city commission
s hall be held in city hall at 6 :30p.m.
If the second or fourth Monday falls on a holiday, the regular meeting or
schedu led workshop shall be held on Tuesday immediately followin g the
holiday.
Mark E. Beckenbach
City of Atlantic Beach Commissioner -Seat 3
July 18, 2014
C ITY OF ATLANTIC BEACH
C ITY COMMlSSTON MEETING
STAFf REPORT
AG ENDA ITEM #8 0
AU GUST II , 2014
AGENDA ITEM: Request to amend Sectio n 24-84 of th e City Co de of Ordinances related
Lo Through Lot s
SUB MITTED BY: Je remy Ilubsc:h
Building and Zo nin g Din.:clo r
DATE: Jul y 17,20 14
STRATEGJC PLAN LINK: None
BACKGROUND: On Ap ril 14,20 14, the City Commi ss io n passed Ordina nce 90-14-222 as
presented by th o fo rme r Buildin g Di rector. T hi s o rdinance spec ifical ly relat es to thro ug h lo ts
between Beach Avenue and Ocean Boul evard. T he code prior to thi s ordina nce had a s peci al
provi s ion whi ch s ta ted that o n thr ough Jo ts between Beach and Ocean, th e fro nt yard was to be
Ocea n Bou leva rd and th e rear ya rd Beach Avenue. Thi s meant th at detached garages co uld be
built within 5' to l 0' of Beach Avenue, depending on th e ir height.
Th e code chan ge th at was imple mented in April took away the special provision th at a ll owed th e
rear yard to be on Beach Avenue . The code now reads that thro ug h lo ts between Beach and
Ocean are to be treated th e sa me as through lots e lsew here in the ci ty . O n thro ugh lots e lsewh e re
in the city, both street facing s ide s of th e prop erty a re co nsi dered tJ1e fr ont ya1·d. T hi s means that
yo u cannot build d e ta ched ga ra ges, pool s, or oth er accessory s tru ctures withi n 20 fee t o f th e
street o n eithe r street fro ntage.
The code sect ion th at previo us ly allowed speci al co ns ideration for through lots betwee n Beach
a nd Ocean was in place beca use of the uniqu eness of Beach Avenue. Beach Av enu e is in man y
ways as much of an a ll eyway as it i s a roa d . lt is consid ere d th e r ear yard fo r ocean fro nt ho mes,
an d has hi stori ca ll y been the rea r yard tor ho mes o n tttro ug h lots between Beach a nd Ocea n. As
such, it is lined with detached garages and garage apa 1iments. The code as enacted wi ll limi t th e
build ab le area of thro ugh lo ts between Beach and Ocean, and po tentially lead to ar chitectural
des ign s that do not fit in with the character of the a rea.
Staff beli eves that th e re are so me unintend ed conseq uences of th e co de cha nge a nd wou ld li ke
b o th the Comm unity Dev elo pm ent Board and Commi ss io n consider restorin g back to its orig inal
state.
BUDGET: No ne .
RECOMMENDATION: Dirccl sla ff to restore Section 24-84 back to its original state prior to th e
adoplion of Ord in ance 90-14-222.
ATTACHMI~NTS :
code and current code
Visua l represe ntation of (;Ode change scena rios, examp le of previou s
REVrEWED BY C ITY MANAGER: __ -?J__:_....:.·~~'--'& ...... .,a::::a...~;A.=,;..c-".....<:~ ... ~~~,c....---------
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
90-0ay Ca lend ar for the Mayor and Commission
AGr1NDA rl'EM 119A
i\UC.UST I I , 20 14
Yvonne Calverley, Executive Assistant to the City Mana 1'c___.
July 14, 2014
STRATEGIC PLAN LINK: None
BACKGROUND: The 90-day calendar is i11cluded on the agenda for the purpose of settin g
meeting dates, determining the location, time and whether or not to
videotape special meetings and workshops if the Commission desires.
The rolling 90-day calendar will be t·evised after receiving input from City
staff and the Commiss ion and wil 1 be inc I uded in each agenda for
consideration.
Special note:
• Police Building Workshop will be held on Monday, August ll1h at 5 pm.
• Propos ed date for the Annual Board and Committee Member
Appreciation Reception is Thursday, October 2nd at 6:30 pm.
• Proposed date for the next Town Hall Meeting is Saturday, October 18111
at 10 am in the Comm ission Chamber.
BUDGET: None
RECOMMENDATION: For discussion only.
ATTACHMENT : J) Mayor and Commission 90-Day Calend ar (August through October)
.
CJTY MANAGER: '-'to/ .. ?'~ ... ;/'~