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09-16-91 v MINUTES OF THE JOINT COMMITTEE MEETING OF THE ATLANTIC BEACH CITY COMMISSION AND THE ATLANTIC BEACH PENSION BOARD OF TRUSTEES HELD IN CITY HALL, 800 SEMINOLE ROAD, AT 8: 15 PM ON MONDAY, SEPTEMBER 16, 1991 PRESENT: CITY COMMISSION: William I. Gulliford, Mayor Robert B. Cook Glenn A. Edwards Adelaide R. Tucker John W. Weldon, Commissioners PENSION BOARD OF TRUSTEES: Richard E. White, Chairman Alison Brown Joseph P. Garvin Joan LaVake ALSO PRESENT: Alan C. Jensen, City Attorney Kim D. Leinbach, Secretary Harry E. Royal, Treasurer Maureen King, City Clerk ABSENT: Ronald W. Wingate The meeting was called to order at 8:15 PM by Mayor Gulliford. Actuarial proposal for General and Public Safety employees Chairman Richard White reported that both the money manager, Merrill Lynch, and actuary Ron Smith, had indicated that the city's pension plan was in sound financial condition and the investments were generating interest rates higher than ever before. Mr. White also reported the Pension Board had discussed the possibility of changing the ratios in which the funds could be invested. He said the board had amended its position in this regard and now recommended investments in a ration of 60% equities and 40% non equities. It was pointed out the Atlantic Beach plan was one of the most conservative in the State of Florida, and the board felt the recommended ratios would generate greater revenues. This would be presented to the City Commission for action at a future meeting. The employees had requested increases in their pension benefits and Mr. White asked the employees' representatives to make their proposals to the City Commission. Joseph Garvin, Police and Fire representative, presented a proposal for increased pension benefits on behalf of the public safety employees. The proposals presented to the City Commission for consideration were as follows: PROPOSAL B: To allow members to retire at age 50 with twenty or more years of service, or at any age with twenty-five years of service. Page Two Minutes of the Joint Committee Meeting of the City Commission and Pension Board of Trustees September 16, 1991 PROPOSAL D: To increase the current 2.4% benefit to 3%. PROPOSAL E: To determine final average salary based on the highest three consecutive years of service out of the last ten years. PROPOSAL J: To eliminate the service requirement for eligibility for a disability pension if disability was incurred in the line of duty. This proposal provided a minimum benefit of 43% of final average salary for a duty disability pension. PROPOSAL G: A combination of Proposals B, D, E and J. Harry Royal provided a comparison of pension plans throughout the State of Florida and he pointed out the City Code provided that the Atlantic Beach pension, plus Social Security benefits could not exceed the employee's final salary rate. A lengthy discussion ensued regarding whether the combined pension and Social Security benefits would, or should be allowed to exceed the final city salary. Rose Blanchard said she had recently learned that Social Security benefits were reduced for employees who retire on a government pension and Lt. Campbell said he also understood this to be true. This is to be checked into further. Each of the proposals was discussed individually and Harry Royal said the combined package (Proposal G) would cost the city approximately $73,000. Discussion ensued and Lt. Garvin expressed the feeling early retirement was important for police officers because of the stressful nature of their jobs. Lt. Garvin said the police officers were willing to increase their contributions to the pension plan in order to pay for some of the additional benefits. Following Lieutenant Garvin's presentation, Joan LaVake, general employees Pension Board member, presented the proposal for additional benefits for the general employees in order of preference, as follows: PROPOSAL A: To eliminate the provision which includes Social Security benefits in the determination of the maximum pension PROPOSAL C: To increase the 2.25% benefit formula factor to 2.85%. PROPOSAL B: To allow employees to retire at age 55 with ten years or more of service. The member's pension would be reduced by 1/4 of 1% for each month (3% per year) that retirement preceded age 60. PROPOSAL D: To determine final average salary based on the highest three consecutive years out of the last ten years. Page Three Minutes of the Joint Committee Meeting of the City Commission and Pension Board of Trustees September 16, 1991 The proposals along with actuarial reports on the cost of implementation same, are attached hereto and made a part hereof. The proposals were discussed at length and Ms. LaVake indicated that Proposals A and C were the most important. She said General Employees also would be willing to increase their contributions to the pension plan in order to fund the additional benefits. Mayor Gulliford felt the city should be consistent with the benefits for each of the employee groups and suggested that the City Commission be given about a month to review the materials provided this evening and to consider how additional benefits would be funded. A further workshop could then be scheduled for mid October when the matter could be discussed further. Harry Royal pointed out a resolution had been passed by the City Commission in 1981 authorizing the City Manager to review the pension plan and make recommendations regarding increases in benefits for retirees. He pointed out the last raise in benefits was on January 1988. Mr. Royal was asked to draft a memorandum with recommendations to the City Commission. Mr. White requested the City Commission consider amending the city code to allow investment of the pension funds in the ratio of 60% in equities and 40% in non-equities and Mayor Gulliford requested this matter be placed on the next agenda for consideration by the City Commission. There being no further discussion, the Mayor declared the meeting adjourned at 9:35 PM. Maureen King, Ci Cfik S .LG M ^ w! y is. « 1 1�' A yt . 'r ' a ' 1 - v. t0)'u (.1 3�yp r -,,,' ft -". Std, s .e'=¢: S „ r. • ti . _ r y t Zi Ts , `t.,`�I ! ..L I.4 f ..). a E .t . ;i , 1-..1, '1 41„14%.* 1 1- '. -- I/1r . . ,... \,,, , r,,. _ :,,, = -; CITY OF '\',-,• /� it4 ct e �wK1•l• �e '� 800 SEMINOLE ROAD :3) ---- - -- - ATLANTIC BEACH,FLORIDA 32233-5445 K� TELEPHONE(904)247-5800 FAX(904)247-5805 September 16, 1991 MEMORANDUM TO: Richard White, Chairman Atlantic Beach Pension Board of Trustees FROM: Joan LaVake, Trustee, Representing General Employees Atlantic Beach Pension Board of Trustees SUBJECT: PROPOSED INCREASED PENSION BENEFITS On June 11, 1991, this Trustee presented a memorandum to you outlining certain proposed increased pension benefits for General Employees based on an actuarial study performed by Gabriel, Roeder, Smith & Company, and asked that these proposals be submitted for consideration by the City Commission. Since that time, certain factors have prompted the General Employees to re-think the impact these proposals would have on their pension benefits, and it is now, therefore, requested that the above mentioned memorandum of June 11, 1991, be withdrawn, and the following proposals, listed in order of their importance to the General Employees, be sub- mitted to the City Commission at its joint workshop with the Pension Board on September 16, 1991, at 7:15 PM: PROPOSAL A - Eliminates the provision which includes social security benefits in the determination of the maximum pension. • PROPOSAL C - Increases the 2.25% benefit formula factor to 2.85%. PROPOSAL B - Allows employees to retire at age 55 with 10 years or more of service. The member's pension would be reduced by 1/4 of 1% for each month (3% per year) that retire- ment preceded age 60. PROPOSAL D - Determines final average salary based on the highest 3 consecutive years out of the last 10. We realize the Commission's meeting packets have already been delivered to them, but respectfully request that these matters be considered at the above meeting. June 10, 1991 Mr. Richard White, Chairman City of Atlantic Beach Pension Board 840 Seminole Road Atlantic Beach, FL 32233 Dear Chairman White: • The Public Safety employees have evaluated the proposed benefit changes in the actuarial study prepared by Gabriel , Roeder, Smith and Company. tr00 The employees are in agreement that( PROPOSAL G) which is a G combination of PROPOSALS B, D & E and PROPOSAL J are the # IDIS benefits which they wish to see added to improve the retirement plan. PROPOSAL B allows members to retire at age 50 with twenty ( 20) or more years of service or at any age with twenty-five (25) or more years of service. PROPOSAL D increases the 2 . 4% benefit factor to 3%. PROPOSAL E determines final average salary based on the highest 3 consecutive years out of the last 10. PROPOSAL J eliminates the service requirement for eligibility for a disability pension if disability was incurred in the line of duty. It provides a minimum benefit of 42% of final average salary for a duty disability pension. It calculates all disability pensions with a 3 . 0% benefit multiplier. The Public Safety employees respectfully request that the QQ 9 Pension Board consider these proposals and submit them to the D ' City Commission on their behalf. i)?-11 ` tib The Police and Fire Members are excited about the benefit proposals and appreciate the Board's concern for improving the retirement plan. Respectfully submitted, J.W. Garvin Police and Fire Representative CITY OF •.�.;i It 'r 1i v 7itizutrie 'eae - / l,t�'LWKN 716 OCEAN BOULEVARD '44I P.O.BOX 25 ATLANTIC BEACH,FLORIDA 32233 t*I . , TELEPHONE(904)249-2395 August 13, 1990 MEMORANDUM TO: Richard White, Chairman Atlantic Beach Pension Board of Trustees FROM: Joan LaVake, Trustee, Representing General Employees Atlantic Beach Pension Board of Trustees RE: Actuarial Study to Determine Cost of Increased Pension Benefits The General Employees of the Atlantic Beach Employees Retirement System respectfully request that the following list of increased benefits be submitted for an actuarial study for cost involved: Amount of Benefit Determination - 2.85% Service Year Salary Base - Best 3 of Last 10 Early Retirement - Age 55 With 10 Years Service for Reduced Benefit Compulsory Retirement None Relationship to Social Security - None GABRIEL, ROEDER, SMITH & COMPANY Actuaries & Consultants 200 Globe Building•407 East Fort•Detroit, Michigan 48226.313-961-3346 November 27, 1990 Mr. Harry E. Royal , Finance Director City of Atlantic Beach P. 0. Box 25 Atlantic Beach, Florida 32233 Re: Proposed Benefit Increases for General Employees Dear Harry: Enclosed are 10 copies of the study done to determine the costs associated with several proposed benefit increases for general members in the City of Atlantic Beach Employees Retirement System. Our statement is enclosed. Sincerely, Ronald J. W. Smith RJWS:rmd • City of Atlantic Beach Employees Retirement System GENERAL MEMBERS PROPOSALS UNDER CONSIDERATION Submitted To: The Board of Trustees Date: November 27, 1990 Submitted By: Ronald J. W. Smith Gabriel , Roeder, Smith & Company As requested, we have determined the increase in the City's computed annual contribu- tion rate due to the proposals outlined in Ms. LaVake's memo to Mr. White dated August 13, 1990. Present plan provisions are as follows: Normal Retirement (no reduction factor for age) : Eligibility - Age 60 with 5 or more years of service. Annual Pension - Total service times 2.25% of final average compensation. Total pension including Social Security primary benefit cannot exceed 100% of final average salary. Type of Final Average Salary - Highest 5 consecutive years out of last 10. Proposal A - Eliminate the provision which includes social security benefits in the determination of the maximum pension (100% of final average salary) . Adoption of this proposal would require an ADDITIONAL contribution of: Percents of Payroll FY 90/91 Dollars 2.55% $32,019 The three proposals which follow show costs with and without inclusion of social security benefits in the limits on the maximum pension. Proposal B - Allow members to retire at age 55 with 10 or more years of service. The member's pension would be reduced by 1/4 of 1% for each month (3% per year) that retirement preceded age 60. Adoption of this proposal would require an ADDITIONAL contribution of: Percents of Payroll FY 90/91 Dollars With inclusion 0.89% $11,175 Without inclusion 3.32% 41,687 The additional contribution needed to support this proposal is quite sensitive to the utilization rates for age 55 retirement. The cost shown above would increase (decrease) if utilization were higher (lower) than assumed. Proposal C - Increase the 2.25% benefit formula factor to 2.85%. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars With inclusion 1.49% $18,709 Without inclusion 6.04% 75,841 Proposal D - Determine final average salary based on the highest 3 consecutive years out of the last 10. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars With inclusion 1 .06% $13,310 Without inclusion 3.38% 41,441 r. urs I o !tells ine II / The additional contribution requirements probably appear larger than anticipated. This appearance results from two factors: (1) The change applies to both past and future service - hence the additional contribution must make up for the contributions and investment income that would have been received had the proposed benefit been in effect since each firefighter's date of hire. (2) The increase in the ongoing normal cost applies to the total normal cost, not just the portion financed by the employer. The calculations above were based on the same member data, methods, and assumptions used in the September 30, 1989 annual actuarial valuation except as follows: The retirement pattern used in proposal B was adjusted to reflect utilization of the early retirement provision. The pattern used is as follows: Retirement Percent of Eligible Ages Persons Retiring 55 5% 56 5 57 5 58 5 59 5 60 15 61 8 62 15 63 9 64 15 65 90 66 30 67 40 68 50 69 60 70 100 ('ARDII D(1CIlC0 AITLJ 9 (Yum)", .IV The increase in actuarial accrued liability arising from each Item was financed as a level percent of projected payroll over a period of 30 years. Note: An actuarial impact statement and cost estimate, in the format required pursuant to Chapter 112, Florida Statutes, must be submitted to the Bureau of Local Retirement Systems, Department of Administration, State of Florida, prior to final action adopting a change to the Special Act. GARRIFI .ROEDER.SMITH&COMPANY GABRIEL, ROEDER, SMITH & COMPANY Actuaries & Consultants 200 Globe Building•407 East Fort•Detroit, Michigan 48226.313-961-3346 December 12, 1990 FX Mr. Harry E. Royal , Finance Director City of Atlantic Beach P. 0. Box 25 Atlantic Beach, Florida 32233 Re: Proposed Benefit Increases for Police and Fire Employees Dear Harry: Enclosed are 10 copies of the study done to determine the costs associated with several proposed benefit increases for police and fire members in the City of Atlantic Beach Employees Retire- ment System. Our statement is enclosed. Sincerely, 152:4-e Ronald J. W. Smith RJWS:rmd City of Atlantic Beach Employees Retirement System POLICE-FIRE MEMBERS PROPOSALS UNDER CONSIDERATION Submitted To: The Board of Trustees Date: December 12, 1990 Submitted By: Ronald J. W. Smith Gabriel , Roeder, Smith & Company As requested, we have determined the increase in the City's computed annual contribu- tion rate due to the proposed benefit changes as discussed in our June 20, 1990 letter to Mr. Harry Royal . Present plan provisions are as follows: Normal Retirement (no reduction factor for age) : Eligibility - Age 55 with 20 or more years of service or age 60 with 5 or more years of service. Annual Pension - Total service times 2.4% of final average compensation. Maximum amount of pension is the difference between 100% of final average compensation and the initial PIA. Early Retirement - None. Type of Final Average Salary - Highest 5 consecutive years out of last 10. Disability Retirement: Eligibility - 5 or more years of service. Annual Pension - Computed as normal retirement. Proposal A - Eliminate the provision which includes social security benefits in the determination of the maximum pension (100% of final average salary) . Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police 2.27% $13,433 Fire 3.46 8,202 ::die ro s :::s:::::: v ajfob>' o:..::<<:ixx : ss of g sE noted show gists:::::>:wxth and wI thonrt ........................................................................................................................................................................................................................................... Proposal B - Allow members to retire at age 50 with 20 or more years of service or at any age with 25 or more years of service. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 2.55% $15,090 Without inclusion 4.18 24,735 Fire With inclusion 4.66 11,047 Without inclusion 6.75 16,001 The additional contribution needed to support this proposal is quite sensitive to the utilization rates for the proposed retirement conditions. The cost shown above would increase (decrease) if utilization were higher (lower) than assumed. Proposal C - Allow members to retire at age 50 with 10 or more years of service. The member's pension would be reduced by 1/4 of 1% for each month (3% per year) that retirement preceded age 55. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 0.97% $ 5,740 Without inclusion 2.87 16,983 Fire With inclusion 1.02 2,418 Without inclusion 4.05 9,601 The additional contribution needed to support this proposal is quite sensitive to the utilization rates for age 50 retirement. The cost shown above would increase (decrease) if utilization were higher (lower) than assumed. Proposal D - Increase the 2.4% benefit formula factor to 3.0%. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 2.59% $15,236 Without inclusion 7.03 41,600 Fire With inclusion 1.55 3,674 Without inclusion 6.38 15,124 Proposal E - Determine final average salary based on the highest 3 consecutive years out of the last 10. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 1.41% $ 8,344 Without inclusion 3.45 20,416 Fire With inclusion 1.15 2,726 Without inclusion 4.50 10,667 Proposal F - A combination of proposals B and D. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 6.15% $36,393 Without inclusion 9.62 56,927 Fire With inclusion 8.27 19,604 Without inclusion 11.51 27,284 Proposal G - A combination of proposals B, D and E. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 7.95% $47,044 Without inclusion 11.26 66,632 Fire With inclusion 9.91 23,492 Without inclusion 13.04 30,911 ..-.r, rrime r r�rn r&41TI 1 0 1 T\&40A AIV Proposal H - A combination of proposals C and D. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 4.05% $23,966 Without inclusion 7.85 46,453 Fire With inclusion 3.08 7,301 Without inclusion 7.35 17,423 Proposal I - A combination of proposals C, D and E. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 5.71% $33,789 Without inclusion 9.39 56,566 Fire With inclusion 4.42 10,478 Without inclusion 8.62 20,434 The additional contribution needed to support the proposed changes in retirement eligibility are dependent on actual utilization. The cost shown above in proposals F, G, H, and I would increase (decrease) if utilization were higher (lower) than assumed. Proposal J - Eliminate the service requirement for eligibility for a disability pension if disability was incurred in the line of duty. Provide a minimum benefit of 42% of final average salary for a duty disability pension. Calculate all disability pensions with a 3.0% benefit multiplier. Adoption of this proposal would require an ADDITIONAL contribution of: Percent of Payroll FY 90/91 Dollars Police With inclusion 0.25% $1,479 Without inclusion 0.70 4,142 Fire With inclusion 0.20 474 Without inclusion 0.85 2,015 The additional contributions needed to support the proposed disability benefit are ultimately dependent upon the administration of this benefit. It is conceivable that the costs for this benefit could be up to five times those shown above. • The additional contribution requirements probably appear larger than anticipated. This appearance results from two factors: (1) The change applies to both past and future service - hence the additional contribution must make up for the contributions and investment income that would have been received had the proposed benefit been in effect since each member's date of hire. (2) The increase in the ongoing normal cost applies to the total normal cost, not just the portion financed by the employer. The calculations above were based on the same member data, methods, and assumptions used in the September 30, 1989 annual actuarial valuation except as follows: The retirement pattern used in proposal B was adjusted to reflect utilization of provisions allowing retirement at age 50 with 20 years of service or retirement at any age with 25 years of service. Retirement Percent of Eligible Ages Persons Retiring 45 20% 46 20 47 20 48 20 49 20 50 20 51 15 52 10 53 10 54 10 55 10 56 10 57 10 58 10 59 20 60 100 The retirement pattern used in proposal C was adjusted to reflect utilization of the early retirement provision. The pattern used is as follows: Retirement Percent of Eligible Ages Persons Retiring 50 5% 51 5 52 5 53 5 54 5 55 20 56 15 57 15 58 15 59 25 60 100 City of Atlantic Beach Employees Retirement System PROPOSAL FOR ACTUARIAL STUDY Submitted #a: Richard White, Chairman City of Atlantic Beach Pension Board Submitted bv: David L. Archer Public Safety Representative Pate : June 4, 1990 Please find attached proposed changes to the Public Safety Officers retirement benefits. We would like an actuarial study to provide cost estimates to implement these changes.. PENSION PROPOSALS A. NORMAL RETIREMENT 1 . Eligibility a. Age 50 & No Limit b. Service 20 yrs . 25 years i . Other Service (a) Military Service 5 year service,payment required 2 . Amount of Benefit a. Determination 3 .0% Service year i . Salary base Best 3 of last 10 b. Limitations of monthly payment i . Minimum None ii . Maximum None c. Length of payment period Longer of life or 10 yrs 3. Early Retirement Age 5 . with 10 years pervice for reduced benefit. such reduction phall pot exceed A per Year . 4 . Compulsory Retirement None 5. Vesting Rights 10 years service 6 . Relationship to Social Security None B. DISABILITY BENEFITS 1 . In-line-of-duty a. Eligibility pay one coverage b. Type of disability Total and permanent cannot render useful and efficient service as a police officer . c. Type of benefit i . Medical None ii . Pension (a ) Amount 3 . 0% per year AFC (b) Minimum Not less than 42% of average monthly compensation . (c ) Maximum The accrued benefit if pore than 42% . (d ) Duration Disability life with 120 months certain (e ) Payment option ( 1 ) Balance, if any, of 120 payments to ben- ificiary ( ii ) Cash refund annuity ( f) Relationship to ( i ) Workmens Compensation None ( ii) Social Security None 2 . Non-Service-Incurred a . Eligibility 10 years service b. Type of disability Total and permanent; cannot render useful and efficient service as a police officer . c. Types of benefits 1 . . Medical None 11. Pension - (a ) Amount Same as "in-line-of-duty" (b) Minimum Not less than 30% 4j average monthly compensation (c) Maximum The accrued benfit more than 301 (d) Duration Same as in-line-of-duty (e) Payment option Same as in-line-of-duty 3. Relationship to Social Security None C. DEATH BENEFITS 1. Before retirement or disability a . In-line-of-duty i . Lump sum (a ) 100% contributions refund without interest ii . Survivors benefits If a. police officer has at ).east l0 nears service, his, beneficiary is entitled ta the benefits otherwise payable to the officer at his normal or early re- tirement date . b. Non-Service-incurred Same as In-line-of-duty 2 . After Retirement or Disability a . Lump sum None b. Survivors benefits i . Balance, if any, of 120 payments to beneficiary selected. CITY OF ATLANTIC BEACH SPECIAL MEETING MONDAY, SEPTEMBER 16, 1991 , 7: 15 P.M. AGENDA Call to Order 1 . Public hearing relative to the proposed operating budget for FY 1991 /92 2. Change order #1 , request for increase by $53 , 763 . 00 for the combined beaches outfall line 3 . Change order #1 , request for increase by $46 , 740. 00 for Main Street widening project 4 . Actuarial proposal for General and Public Safety employees . Adjournment MINUTES OF THE SPECIAL MEETING OF ATLANTIC BEACH CITY COMMISSION HELD IN CITY HALL, 800 SEMINOLE ROAD, AT 7:15 PM ON MONDAY, SEPTEMBER 16, 1991 The meeting was called to order by Mayor Gulliford. Present, in addition to the Mayor, were Commissioners Cook, Edwards, Tucker, and Weldon. Also present were City Manager Leinbach, City Attorney Jensen, Finance Director Royal and City Clerk King. Agenda items 2 and 3 were taken out of sequence and acted upon first. 2. Change Order No. 1, request for increase by $53,763.00 for the combined beaches outfall line In connection with the proposed repairs to the combined beaches outfall line, Public Works Director Bob Kosoy reported he had requested that a geotechnical report be prepared in order to ascertain the subsurface conditions, proper size and length of new pilings, capacity and installation. This report had been received from Ellis and Associates. The contractor, T.W. Blount and Son, had submitted his proposal to replace 44 pilings at a cost of $53,763.00 in addition to the original quote of $84,273. Mr. Kosoy said he had reviewed these prices and had received the concurrence of the public works directors in the other two beach cities. Commissioner Weldon moved to approve the change order. The motion was seconded by Commissioner Edwards. Commissioner Tucker inquired into the number of pilings to be replaced and Mr. Kosoy said it was impossible to test the pilings while the pipe was in place. Testing after the pipe had been removed had determined that the pilings could not support the 12-ton load. In further discussion it was explained the payment would be shared by the three beach cities and would be in accordance with the flow generated by each city, with Jacksonville Beach paying approximately 55% of the total cost. When asked whether he expected any further change orders, Mr. Kosoy said he did not anticipate any but he would not know whether there was any damage to the lines until they were lifted. The question was called and the motion carried unanimously. 3. Change Order No. 1, request for increase by $46,740.00 for Main Street widening project Mr. Kosoy reported during construction of storm sewers and relocation of a portion of the sewer line north of Stewart Street on this project, it was decided to prepare a plan to obtain a price for installing sanitary sewer service from Levy Road to Stewart Street. Connelly and Wicker had prepared these plans and the contractor had submitted a change order which had been negotiated between the design engineer and city engineer for $44,763. The contractor had also requested a 30-day extension to complete this work. Mr. Kosoy said it would cost less to install this sewer line while the contractor is in the area and would eliminate the need for pavement cuts if the work was performed later. Page Two Minutes of the Special City Commission Meeting September 16, 1991 Mayor Gulliford pointed out this project was adjacent to properties now served by the Section H improvement project. That project had been paid for through special assessments against the properties. Commissioner Weldon moved to approve the change order. The motion was seconded by Commissioner Cook. Commissioner Tucker declared a conflict of interest and declined to vote based on the fact she was part owner of property on Main Street. Form 8B, Memorandum of Voting Conflict, has been completed by Commissioner Tucker and is attached hereto and made a part hereof. Mr. Kosoy said about twelve properties would be served by this sewer line and discussion ensued regarding the possibility of assessing the property owners with the cost of this project. Commissioner Weldon offered a substitute motion to approve the expenditure subject to payment of fees as assessed by the city by the owners of the property at the time they desire hookup. The motion was seconded by Commissioner Cook and was approved on a 4 — 0 vote with Commissioner Tucker abstaining. 1. Public Hearing relative to the proposed operating budget for FY 1991/92 Commissioner Weldon pointed out the City Clerk's salary was set by the City Commission and that she was not on the city's pay plan and would not receive the merit raise provided therein. He moved to authorize a 5x salary increase for the City Clerk, effective at the beginning of the new fiscal year. The motion was seconded by Commissioner Edwards and was unanimously approved. Mayor Gulliford announced that the tentative millage had been set at 2.6624 with the debt service set at .1034 which represented a 5.95% increase over the roll back rate. He opened the floor for a public hearing and invited comments from the audience. William McGee, 1831 Selva Marina Drive, asked about fund transfers between the various accounts, particularly from Buccaneer. Mayor Gulliford said that the city had purchased the Buccaneer system with the intention of providing extra money for the general fund or to subsidize the sewer and water rates paid by the Atlantic Beach citizens, and this had, indeed, happened. The records of the systems had been kept separate to better track the funds generated. He said this situation had been discussed at length in the budget workshops and a proposal had been made to combine the revenues of the systems. Mayor Gulliford pointed out that Alan Potter, engineer and owner of a private utility, had donated a great deal of his time working with the city on the future Page Three Minutes of Special Commission Meeting September 16, 1991 plans for the utility plants and the rate study. He invited Mr. McGee to discuss the matter with Mr. Potter and to avail himself of any documentation available in City Hall and forward his comments or recommendations to the city. There being no other comments on the budget the Mayor declared the public hearing closed. Commissioner Edwards moved to adopt the millage rate of 2.6624 and debt service rate of .1034. The motion was seconded by Commissioner Cook and was unanimously approved. In connection with the proposed referendum question regarding charitable contributions, Mayor Gulliford pointed out an error had been discovered in the millage rate referred to in the referendum. Because of the advertising requirements, it was too late to change that figure. Discussion ensued regarding whether a straw ballot, which would not be subject to the same advertising requirements, should be held instead of a referendum and it was the general consensus the question should be withdrawn from the ballot. The City Attorney was directed to draft an ordinance for action by the City Commission. At this time Mayor Gulliford declared the Special Commission meeting adjourned and announced that Agenda Item #4 would be taken up at a joint committee meeting of the City Commission and Pension Board of Trustees immediately following this meeting. Wil iam I. Gullifo d Mayor/Presiding 0 fic • A T T E S T: 4t_ Maureen King, Ci y Cl- • FORM 8B MEMORANDUM OF VOTING CONFLICT FOR COUNTY, MUNICIPAL, AND OTHER LOCAL PUBLIC OFFICERS LAST NAME-FIRST NAME-MIDDLE NAME NAME OF BOARD, COUNCIL, COMMISSION, AUTHORITY, OR COMMITTEE 411 Tucker, Adelaide R. Commission MAILING ADDRESS THE BOARD, COUNCIL., COMMISSION, AUTHORITY, OR COMMITTEE ON 42 Eleventh St. WHICH I SERVE IS A UNIT OF: Xl CITY i l COUNTY i 1 OTHER LOCAL AGENCY CITY OUNT Atlantic Beach Duval NAME OF POLITICAL SUBDIVISION: City of Atlantic Beach DATE ON WHICH VOTE OCCURRED MY POSITION IS: September 16, 1991 t ELECTIVE APPOINTIVE WHO MUST FILE FORM 8B This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board, council, commission, authority, or committee. It applies equally to members of advisory and non-advisory bodies who are presented with a voting conflict of interest under Section 112.3143,Florida Statutes. The requirements of this law are mandatory; although the use of this particular form is not required by law, you are encouraged to use it in making the disclosure required by law. Your responsibilities under the law when faced with a measure in which you have a conflict of interest will vary greatly depending on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form before completing the reverse side and filing the form. 1116INSTRUCTIONS FOR COMPLIANCE WITH SECTION 112.3143, FLORIDA STATUTES ELECTED OFFICERS: A person holding elective county, municipal, or other local public office MUST ABSTAIN from voting on a measure which inures to his special private gain. Each local officer also is prohibited from knowingly voting on a measure which inures to the special gain of a principal (other than a government agency) by whom he is retained. • In either case, you should disclose the conflict: PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly the nature of your interest in the measure on which you are abstaining from voting; and WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for recording the minutes of the meeting, who should incorporate the form in the minutes. APPOINTED OFFICERS: A person holding appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure Which inures to his special private gain. Each local officer also is prohibited from knowingly voting on a measure which inures to the special gain of a principal (other than a government agency) by whom he is retained. A person holding an appointive local office otherwise may participate in a matter in which he has a conflict of interest, but must disclose the nature of the conflict before making any attempt to influence the decision by oral or written communication, whether made by the'officer or at his direction. . . . IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH THE VOTE WILL BE TAKEN: • • You should complete and file this form (before making any attempt to influence the decision) with the person responsible for recording the minutes of the meeting, who will incorporate the form in the minutes. • A copy of the form should be provided immediately to the other members of the agency. • The form should be read publicly at the meeting prior to consideration of the matter in which you have a conflict of interest. • IF YOU MAKE NO ATTEMPT TO INFLUENCE THE DECISION EXCEPT BY DISCUSSION OR VOTE AT THE MEETING: • You should disclose orally the nature of your conflict in the measure before participating. • You should complete the form and file it within 15 days after the vote occurs with the person responsible for recording the minute of the meeting, who should incorporate the form in the minutes. DISCLOSURE OF STATE OFFICER'S INTEREST 1, Adelaide R.Tucker , hereby disclose that on September 16 19 91 (a) A measure came or will come before my agency which (check one) might inured;to my special private gain; or inured to the special gain of , by whom I am retained. (b) The measure before my agency and the nature of my interest in the measure is as follows: On Sept. 16th the Public Works Director, Mr. Kosoy, requested an increase of $46,740..00 for Main Street widening project in order to install sanitary sewer service from Levy Road to Stewart Street. I declared .a conflict of interest due to the fact I am part owner of properties located on Main Street and it might inure to my special private gain. • • • September 23, 1991 er Date Filed Signature NOTICE: UNDER PROVISIONS OF FLORIDA STATUTES §112.317 (1985), A FAILURE TO MAKE ANY REQUIREL.• DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY ONE OR MORE OF THE FOLLOWING: IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE OR EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND, OR A CIVIL PENALTY NOT TO EXCEED $5,000. CE FORM 8B. 10.86 PAGE 2