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Draft Min 4-26-10MINUTES REGULAR CITY COMMISSION MEETING April 26, 2010 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor Mike Borno City Attorney Alan C. Jensen Mayor Pro Tem John L. Fletcher City Manager Jim Hanson Commissioner Jonathan Daugherty City Clerk Donna L. Bartle Commissioner Paul Parsons Recording Secretary Nancy E. Bailey Commissioner Carolyn Woods Call to Order/Pledge Mayor Borno called the meeting to order at 6:00 p.m. Mayor Borno gave the Invocation, followed by the Pledge of Allegiance to the Flag. Approval of Minutes 1. Approval of the amended minutes of the Regular Commission Meeting of March 22, 2010 and the minutes of the Regular Commission Meeting of April 12, ZO10. Motion: Approve the minutes of the Regular Commission Meeting of March 22, 2010 as originally submitted and re~,ect the revision submitted tonight. Moved by Fletcher, Seconded by Parsons Commissioner Woods expressed her disappointment in the motion, stating there were a lot of very concerned citizens who spoke very well and made legitimate observations, comments and suggestions to this Commission. She stated to categorically state those ideas are not important enough to be represented in our minutes will continue to feed the distrust our community has in this Commission and the way it conducts business. Commissioner Fletcher stated there should have been an amendment to change the minutes, but no amendment was offered. He stated the Commission needs to give the Clerk's office discretion in how they record the minutes of the meeting and a verbatim transcript is clearly not contemplated in the intent of minute keeping. He stated there was no amendment to the minutes offered that stated we need to add a little language here in somebody's comment, which is why he believes we should accept the minutes as originally submitted. Commissioner Parsons referred to the Assistant Attorney General's opinion that stated minutes are a brief summary or a series of brief notes or memoranda reflecting the events of a public meeting in written form, stating this is what we have. He stated you can't have everything verbatim. Roll Call Votes: Aye: 4 -Borno, Daugherty, Fletcher, Parsons Nay: 1-Woods MOTION CARRIED Motion• Approve the minutes of the Regular Commission Meeting of April 12, 2010, as written. Moved by Fletcher, Seconded by Daugherty Agri126 2010 REGULAR COMMISSION MEETING Page 2 Votes: Aye: 5 - Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors. Mayor Borno opened the Courtesy of the Floor to Visitors. He welcomed the audience and explained the process for public comments. Daisy Davis Young, 45 Lewis Street, spoke regarding her concerns with the drainage ditch in the Donner subdivision, stating the ditch is eroding around the banks and each time it is cleaned out it is taking away a little more of her property. Reverend George E. Young, 45 Lewis Street, addressed the Commission on behalf of the citizens of Donner Park, regarding the need for improvement of the condition of the ditch at Lewis Street, Roberts Street and Dudley Street to Dutton Island Road. He further requested sidewalks be put in for the safety of the pedestrians. Opio Sokoni, 9645 Old Bay Meadows Road, addressed the Commission regarding the issues with the dangerous ditches which run in the middle of neighborhoods on both sides of Mayport Road and requested this item be placed on the agenda for a future meeting. In an operation similar to the drug bust that took place in that neighborhood last week, he stated he would like to see them swoop in to offer jobs, job training, treatment and wrap around services, so instead of the failed drug war methods and incarceration, the government would actually use money to fix blight, like the ditch, and place the money into approaches that have proven to solve problems in poor communities and not make them worse, as certain government actions continue to do. Neil McGuinness, 1619 Beach Avenue, spoke against the Modification Agreement in Item 8B and giving Mr. Sones $140,000, stating Mr. Sones may or may not develop the property, mitigate trees or even be the owner of the property if it is ever developed. Lyman Fletcher, 804 East Coast Drive, addressed the Commission regarding Item 8B, cautioning against any money being released without the question of the title being answered. He suggested the money could be put in an escrow account until these questions are answered. Trevor Richter, 457 Snapping Turtle Court W., addressed Item 8B and applauded the Commission on working with the Developer to find a good start, stating if the land is going to be developed avoiding premature cutting down of the trees is a positive. He asked the Commission to acknowledge that there is a question as to whether that title is legitimate and account for that possibility. He asked that they find a way to protect that money which will be better for all parties involved. Mark Beckenbach, 2210 Ocean Walk Drive West, addressed the Commission regarding Item l0A stating he agrees with the time change and recommended changes he believes would allow more citizen involvement including, (1) post an agenda at April 26, 2010 REGULAR COMMISSION MEETING Page 3 least seven days prior to the meeting; (2) open to the public the individual meetings the City Manager has with each Commissioner; (3) do not remove the citizen oversight committees from our government. He thanked Commissioner Woods for her efforts on behalf of the citizens of Atlantic Beach. Mark Tomaski, 448 Snapping Turtle Court W., distributed a handout on Item 8B and discussed each item. He spoke in opposition to the Modification Agreement and stated he would like to see Item 8B postponed and modify it to put the money in a trust until the problems have been cleared up. Jackie Beckenbach, 2214 Ocean Walk Drive West, thanked Commissioner Woods for her efforts to create open government in the City of Atlantic Beach. She addressed the Commission regarding Item 8B speaking in opposition to the Modification Agreement and the payment of $140,000, which she would like to see put into an escrow account until the issue of the clouded title is resolved. No one else from the audience spoke so Mayor Borno closed the Courtesy of the Floor to Visitors. Unfinished Business 3. Unfinished Business from Previous Meeting from Previous A. City Manager's Follow-up Report. Meeting City Manager Jim Hanson reported on the Dog Park, stating even if the budget amendment Ordinance is approved tonight, they will not be able to move ahead with construction until the easement with the church is signed. He further clarified and corrected some statements from previous meetings regarding the Storm Water Committee that existed in the 1990s, stating the Storm Water Committee had nothing to do with solving the storm water problems and summarized the background of how the storm water problems were resolved. He stated he mentioned this because of the request to put together a similar committee to solve all the problems a lot of the citizens had referred to tonight. He stated he believes that would be a very poor decision and counterproductive. He stated we need to move ahead now because we have State and Federal regulations that tell us we need to solve the nitrogen problem. He stated we have spent a lot of money on the design and there is a lot of money to be saved by bidding this project now rather than later. He stated his strong recommendation is to not pursue putting a committee together to second guess the decision the Commission has already made, so we can move ahead. Commissioner Parsons asked, while the people from Donner are here, could they give them a summary of the report on the ditch problem. Mr. Hanson stated Rick Carper, our City Engineer, has looked into the problem after meeting with the group last week and has some comments to make. Public Works Director Rick Carper gave a slide presentation on the problems of the ditch several citizens were concerned about tonight including the erosion problems, no guard rails along the ditch .crossings, the depth of water standing in the ditch and the fact the ditch has grown in size over the years. He explained portions of the ditch fall under the Department of Transportation and he has contacted Bob Kosoy regarding these Apri126.2010 REGULAR COMMISSION MEETING Paae 4 problems. Mr. Carper explained his recommendations for the City and State to correct these problems. A discussion regarding sidewalks ensued and Commissioner Woods stated, given the conditions out there, we should consider sidewalks. Commissioner Fletcher agreed anything that could solve the public safety issue, without taking private property, is something that should be discussed. Commissioner Daugherty stated there are many places in Atlantic Beach where there are small streets and no sidewalks and since this is a low traffic neighborhood, he would question the need for a sidewalk there. He stated he was concerned about the amount of trash in the ditch and asked if the City has cleaned that up yet. Mr. Carper stated the ditch has been cleaned. Commissioner Daugherty stated he is in favor of putting in the hand rails and asked Mr. Carper what they would cost. Mr. Carper stated they are fairly reasonable and he could do that in his budget. Commissioner Daugherty expressed his appreciation to Mr. Carper for the work he has done on this and commended the citizens of the Donner community for making the Commission aware of the situation, stating that is his district and he would be happy to help them out with anything. He stated his email is on the City's website or they could call the City Clerk's office and they would get in touch with him. Mayor Borno summarized we are dealing with these issues and have contacted FDOT regarding this, stating the City will start getting things going on these problems. Consent Agenda 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 Monthly Financial Report and Utility Sales Report for March 2010. B. Extend the Meter Testing and Repair (Bid No. 0708-09) contract for one additional year to United Water Services at the contract prices. C. Award the Annual Contract for Trimming Palm Trees (Bid No. 0910-OS) to Shaw's Tree Service, LLC. D. Authorize the Mayor to sign the Application for Revenue Sharing 2010-2011. E. Award the annual contract for Storm Water Jetting, Cleaning & Televising for the Public Works Department (Bid No. 0910-06) to W.W. Engineering, Inc. Mayor Borno read the Consent Agenda. Commissioner Fletcher pulled Item 4C. Motion: Approve Consent Agenda Items A, B, D and E, as read. Aaril 26 2010 REGULAR COMMISSION MEETING Pace 5 Moved by Parsons, seconded by Fletcher. Votes: Aye: 5 - Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Commissioner Fletcher stated on the annual contract for palm tree trimming, whenever he sees a really large discrepancy between the low bidder, who we are awarding this contract to, and other people he gets concerned. He asked if Shaw's has the current contract. Mr. Carper stated they do and have done a good job. Commissioner Fletcher asked if we require a performance bond. Mr. Carper stated no. Mayor Borno stated the price this year is almost identical to the past. Mr. Carper stated the unit price for trees is the same, but they have added trees to the Ahern Beach Access, Bull Park and City Hall. Motion: Anurove Consent Agenda Item C. Moved by Fletcher, Seconded by Parsons Votes: Aye: 5 - Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Committee Reports 5. Committee Reports A. Investment Policy Ad Hoc Committee. Finance Director Nelson Van Liere reported on the February 18, 2010 meeting of the Investment Policy Ad Hoc Committee, whose members were Bob Sternfeld, Alan Gleit, John Wolfel, and Nelson Van Liere. Also present was Michael O'Shields for expertise in the investment arena. He stated the basic task of the Committee was to go through our existing investment policy, primarily to bring it up to date and include portfolio composition and risk and diversification requirements that were not in the policy. He stated approval of Resolution No. 10-03 is what is required to make these changes to this policy because it was originally adopted by a resolution. Mayor Borno expressed his appreciation to Bob Sternfeld, Alan Gleit, John Wolfel, and Nelson Van Liere for their work and effort that have gone into this. Action on Resolutions 6. Action on Resolutions A. Resolution No.10-03 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING THE INVESTMENT POLICY FOR CITY FUNDS, AND PROVIDING AN EFFECTIVE DATE. Motion: Anurove Resolution No.10-03 Moved by Fletcher, Seconded by Daugherty Mayor Borno read Resolution No. 10-03 in its entirety. Apri126 2010 REGULAR COMNIISSION MEETING Page 6 Commissioner Parsons asked Mr. Van Liere how often they go back and review this policy. Mr. Van Liere stated this policy has not been changed but maybe once since it was adopted and it has been quite a while. Commissioner Fletcher asked what percentage of our portfolio, typically, is in a 10- year Treasury. Mr. Van Liere stated currently there is none; it is in a public interest bearing checking account and they have had some CDs over the last year, since they got out of the SBA. He stated he is looking at some Treasuries and some go out to 10 years, but it would not be 75% of the portfolio. Commissioner Fletcher cautioned that we watch our exposure to interest rate fluctuation with long-term debt instruments like that. Mr. Van Liere stated our intent is to buy and hold until maturity. Mr. Hanson explained the City has a 25% reserve policy, which is pretty conservative. He agreed if it had to be drawn down before maturity for some emergency, you could lose some principal if the rates had gone up in the meantime. He stated that would basically be a once in a lifetime hurricane or something like that where the City had to draw down that much money to be able to fund operations. He stated Mr. Van Liere's jab is to project what our use of the money would be over normal years. Votes: Aye: 5 -Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Action on Ordinances 7. Action on Ordinances A. Ordinance No. 20-10-103, Public Hearing and Final Reading AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010. Mayor Borno read Ordinance No. 20-10-103 by title. He explained there is an adjustment that needs to be done related to the contribution coming from the Dog Park Committee, which has dropped down from $7,000 to $5,800 due to the $1,200 expenditure for T-shirts far the opening of the dog park. He requested a motion to amend this Ordinance to reflect the changes, as submitted. Motion• Amend Ordinance No. 20-10-103, with changes as submitted. Moved by Daugherty, seconded by Fletcher. Commissioner Woods stated, although she is in favor of a dog park, there have been issues raised with other projects where the City anticipates funds being raised and then the funds don't come through. She asked if we are starting construction before all these anticipated funds come in or will the City pay for this if the funds don't come in. Mr. Hanson stated we currently have $2,740 and the Dog Park Committee. is going to give us $3,060 before construction begins. The Jacksonville grant is on a reimbursement basis. He stated no City of Atlantic Beach money should be spent on this. Mayor Borno stated at the last meeting he asked that the agreement with the Dog Aarii 26 2010 REGULAR COMMISSION MEETING Page 7 Park Committee be changed, deleting the word "anticipated" and change to "agreed" construction would not take place until the funds were in hand and they did agree. Mr. Carper stated that is in the agreement with the Dog Park Committee. Mr. Hanson stated we will not be able to build this until we get the fmal easement from the church, because that is a public access easement, which won't be before the next meeting, and they can ask the Dog Park Committee to give us the check between now and then. Commissioner Fletcher agreed this is a budget ordinance; it does not incorporate the agreement approved at the last meeting, which states we will have the money before construction starts. He stated it is in writing, so we are protected in that regard. Mayor Borno stated what we are talking about now is the adjustment in the financials for the books, not the construction side that they worked on at the last meeting. Mayor Borno opened the Public Hearing. No one from the audience spoke so Mayor Borno closed the Public Hearing. Votes: Aye: S -Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Motion• AaQrove Ordinance No. 20-10-103, as amended. Moved by Fletcher, seconded by Daugherty. Votes: Aye: 5 -Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED B. Ordinance No. 95-10-100, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 5 OF THE CODE OF ORDINANCES, BEACHES AND PARKS, ARTICLE III, PUBLIC PARKS,- SEC. 5-32, USER FEES FOR PARKS AND RECREATION FACILITIES, PROVIDING A NEW FEE SCHEDULE FOR RENTING THE ADELE GRAGE CULTURAL CENTER, AND PROVIDING AN EFFECTIVE DATE. Mayor Borno read Ordinance No. 95-10-100 by title. Assistant City Manager David Thompson summarized the background of the decision to increase fees for renting the Adele Grage Cultural Center and explained the highlights of the Ordinance. Commissioner Daugherty asked if, under (b), the various community groups are included under the non-profit rates. Mr. Thompson explained if they are affiliated with an organization with non-profit status it would allow them to have the non-profit rate, but if it is just a group of friends meeting they would have to pay the full price. Apri126 2010 REGULAR CONIlVIISSION MEETING Page 8 Mayor Borno requested that item d) read "Individual" events, to clarify that item. After discussion it was the consensus of the Commission to add "Individual" before "Events" to Items (d) and (f). Motion• Approve Ordinance No 95-10-100, adding "Individual"_before Events on items (d) and (fl. Moved by Parsons, seconded by Fletcher. Commissioner Parsons stated there is nothing in the Ordinance about "no shows". Mr. Thompson stated that is addressed by policy in the contract completed to lease the facility. He stated they keep the deposit of "no shows" or those who do not cancel with sufficient notice. Commissioner Woods stated there are community group who have not spent the money becoming anon-profit. Mr. Thompson stated there are certain neighborhood associations that have never taken the trouble to incorporate but they are still included in those non-profit rates. Commissioner Woods asked who decides what constitutes a neighborhood association or community group. Mr. Thompson stated they submit their application to Parks and Recreation and, generally, if it quacks like a duck, if it walks like a duck, then it's a duck. Commissioner Woods stated for clarification they should add community groups, which is a different connotation than neighborhood or homeowner associations. Mr. Thompson stated that would be entirely up to the Commission. Discussion ensued and Mayor Borno suggested if the Commission wants changes before the fmal reading that they work with staff after this first reading for further changes in the wording. Votes: Aye: 5 -Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Miscellaneous 8. Miscellaneous Business Business A. Public Hearing -Request for a Waiver from City Code Section 19-7 Driveway Limitations to Allow a Circular Driveway on a Lot with Less Than 100 Foot Frontage at 239 Seminole Road. Mr. Carper explained the request for a waiver, showing slides of the property in question. He further stated, due to the speed and traffic on Seminole Road, staff believes this is a waiver that is worth consideration. Motion• Approve Request for a Waiver from City Code Section 19-7 Driveway Limitations to Allow a Circular Driveway on a Lot with Less Than 100 Foot Frontage at 239 Seminole Road. Moved by Woods, seconded by Parsons. Mayor Borno opened the public hearing. Apri126, 2010 REGULAR COMMISSION MEETING Page 9 Lennie Jevic, 239 Seminole Road, explained his reasons for his request for the waiver for a circular driveway, stating backing out of his driveway onto Seminole Road is very dangerous and this would make it safer to get out onto Seminole Road. No one else from the audience spoke, so Mayor Borno closed the public hearing. Mayor Borno stated this is a goad idea, with as many problems as there are with parking on the right of way on Seminole Road, and could initiate the lead for others wanting to consider something like this. He stated it makes a lot safer environment and gets away from the parking on the right of way. Votes: Aye: 5 - Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED B. Modification Agreement with the Estates of Atlantic Beach, LLC. Mr. Hanson explained the owners of the Estates of Atlantic Beach have offered to the City to amend the agreement that was adopted last September which would eliminate the requirement that the trees be removed. He stated as part of the requirement to remove the trees there would be mitigation costs to be paid to the City of Jacksonville under the Tree Mitigation Ordinance and the cost of physically removing the trees that would be paid to the contractor. He explained if this modification agreement is approved, instead of the City of Atlantic Beach having the obligation to remove the trees and pay for the mitigation costs, the estimated cost of these totaling $140,000 would be paid to the owners of the Estates, the City would still have the easement far the installation of the sewer line and all of the other provisions of the agreement would remain in place, including the deed restrictions. He stated this would require the City to install the sewer line through a directional drill rather than an open cut. He stated this agreement also substitutes a revised legal description to correct an error in the original document. He explained the effect of this agreement would be to allow the trees on the property to remain throughout the City's installation of the sewer line and until such time as the owners of the Estates want to develop the property as a subdivision. He stated it would then be their responsibility to remove the trees and not the City's and it would be up to them to pay for any mitigation costs that go with that. He further explained the original legal description included both sides of the property that the Commission abandoned in 1989 rather than just the western half of that property, which was in error. He stated the eastern most half of the right of way is owned by the property owners that butted the property on the eastern side in 1989 when the property was abandoned in the City, so substituting this revised legal description would correct that error. He explained there is a difference in cost of an additional $60,000 to do the directional drilling. Commissioner Daugherty stated the existing contract does not state the City will pay for the removal of the trees. He read from the agreement, as follows: "work with the Estates to locate the sewer forcemain in the easement so as to avoid as many of the trees, and especially large trees, as economically possible, so as to save as many large trees as possible, and the City shall pay for any tree mitigation costs resulting from the Apri126 2010 REGULAR COMMISSION MEETING Page 10 removal of any trees for the sewer line and the right of way for future road construction." He stated it reads the City shall pay for tree mitigating costs resulting from the removal of any trees, it doesn't state we will pay for the removal of any trees. Mr. Hanson stated this issue has been brought up before and after discussing it with the City Attorney, both of their opinions are that that was clearly the intent of this agreement and to try to claim that the City does not have a responsibility would be an abrogation of our agreement. Commissioner Daugherty stated he understands that but it doesn't matter what the intent was, if it is in black and white it exists, if it's not there it doesn't. He stated it is not there. Mr. Jensen explained if we put a sewer line under the property with the agreement as originally written, obviously trees have to be removed and we are responsible for the removal of those trees and for the mitigation costs to the City of Jacksonville and we are responsible to work with the owners of the property to save as many trees as possible, especially the large trees. Commissioner Daugherty asked if we directional drill underneath the trees, do the trees have to be removed. Mr. Jensen stated that is the amendment that is being offered. Discussion ensued regarding directional drilling versus open cut. Commissioner Daugherty stated, according to the letter from Mr. Sones, he has abandoned his plans for the near future and his permit has expired, and he believes it would be very premature for the City to give him $140,000 at this time. Mr. Jensen stated in the original agreement Mr. Sones was giving us the easement in exchange for the tree removal and mitigation costs estimated to be $140,000 and what we are doing now with the Modified Agreement is paying him $140,00 for the easement. He stated if the City decided to take the easement through condemnation he would suggest that it would cost a lot more than $140,000. Commissioner Daugherty expressed, from his interpretation of the contract, that we have the easement and, as written, we are only liable to pay for mitigation of trees that are removed. He stated he does not see it in black and white where we agreed to remove trees. Mr. Jensen stated if we go in and put a sewer forcemain under the original agreement, who is going to take the trees out to do that. Commissioner Daugherty stated it is not required to take trees out with directional drilling. Mr. Jensen agreed not nearly as many trees would have to come out with directional drilling, but whatever trees have to come out we would have to pay for the removal and mitigation. Commissioner Daugherty asked where it says we would have to pay for removal; it doesn't say it in here. Commissioner Woods agreed that it doesn't, if they can't show them where. Mr. Hanson stated he thinks they are playing games here. He stated the City negotiated with the owners of the Estates on this and the clear understanding in his mind was that the City would remove the trees. He stated the agreement was written by Alan Jensen and amended through several correspondences and it is very clear the City's intent throughout that entire discussion was for the City to remove the trees. He stated he believes there is more than ample evidence that everyone came to the table understanding that was the agreement. He stated if someone is trying to read into here something that was never intended, he believes that is dirty dealings and he does not believe the City should be dealing with someone on that basis. Commissioner Woods stated the contract does not say that we will pay for tree removal, it says we will pay for mitigation and agreed with Mr. Jensen's' statement regarding the original agreement that the easement was free, tree removal was anticipated to be $140,000. She stated direct drill was implied because all of the cost estimates given to the Commission for going through the Estates property were for Apri126 2010 REGULAR COMMISSION MEETING I'e~e 11 direct drilling. She referenced the rankings of the various proposals, with number one being direct drill (dd) Sones property, Fleet Landing wetlands. She stated the Modification Agreement has a cost of $140,000 and tree removal is an unknown but the cost will be additional because now they are paying for any trees that going to come down due to putting in the pipe. She stated they need to determine how many trees need to come down with direct drilling. She stated direct drill is now estimated to cost $60,000 more, so the cost of this route is now at least $35,000 higher than the Oceanwalk route plus we have money we have already spent on tree surveys and engineering and there are potential casts to redesign because this property is being contested for ownership. She stated this Commission seems to be putting blinders on and pretending there are no issues with the ownership. She stated she presented the Commission with a letter written to the Office of General Counsel of Jacksonville showing that this is progressing. She stated, after the agreement was made, she contacted Paul Harden suggesting the trees did not have to come down right away but Later when development was actually going to occur. She stated Mr. Hanson told her he was negotiating the contract and it would be better if she did not get involved in that. She stated Mr. Hanson also told her the City was going to cut a check to Mr. Sones for the tree removal estimate. She stated she thought it would go to the tree mitigation bank for the City of Jacksonville, but Mr. Hanson told her it would be written to Michael Sones because he may need the money for development. She stated the agreement was clear that it went to a tree mitigation fund. She stated the Modification Agreement seems to be carrying forward that concept of putting money in the developer's pocket and not necessarily only doing what is needed to get the pipeline in and the necessary trees removed. She stated there are still too many issues and she hopes, if they pass this tonight, they will be prudent enough to stipulate there is an escrow account and all the required permits are received by the developer and the ownership of the property is settled before the funds are released. She stated as it is today, it is short-sighted, a fmancially irresponsible expenditure of public funds and could ultimately impact our water and sewer rates negatively. Mr. Hanson responded to the comments made by Commissioner Woods. He clarified that the numbers quoted by Commissioner Woods did include tree mitigation costs and removal. He further stated the issue of giving the check to the developer was because the application for tree mitigation, in his view, has to go from the developer to the City of Jacksonville and he denied ever saying it was for their future development costs. Commissioner Fletcher stated when they approved the contract in September it was his understanding that the City was required to locate a road, move the pipe along where the future road was going to be and clear the road and right of way accompanying that road which was what the $140,000 estimate was for. He suggested they should go back to that contract to assure that Commissioner Daugherty's questions are answered related to whether the City is required to remove the trees, as was always his impression, when they install the forcemain. He stated he would like to get a firm, definitive clarification of the intent in that contract as to what exactly the City's obligations are under that contract and would like to defer this issue for two weeks. Mayor Borno stated the challenge to the title seems to keep being brought up and if it is determined that EAB is not the owner, there is a $7,500,000 title insurance policy. Auril 26.2010. REGULAR COMMISSION MEETING Page 12 Commissioner Fletcher stated there has been no title action and we cannot even consider that. He stated this is not a judicial body, this is a legislative body and we cannot even entertain the possibility of a legal action. He reiterated he would like to get on clear ground with what our legal obligations are under the contract so we can make a good choice to either go with the amendment and save the trees for an indefinite period of time and fix our cost at $140,000 or go with the current contract. Commissioner Woods stated there is no time clause as far as the contract is concerned. She stated there is no penalty clause or obligation to use this easement. She stated if we put a pipeline in a piece of property that ends up belonging to someone else and they don't want it there, who is going to pay for us to take it out. Mr. Fletcher stated the title insurance company would pay. Mr. Jensen explained we have a recorded easement over that property so we would be an additional insured under that policy. He stated if there were any lawsuit involving that property, the City of Atlantic Beach would be a parry to that lawsuit because we have an interest in that property as a result ofthe-recorded easement. Commissioner Woods stated she recalls that the policy states under reasons it would not cover includes a clear title and if the Estates ends up not having a clear title then Old Republic is not going to pay. Mr. Jensen stated Old Republic has insured the title. Commissioner Fletcher agreed, stating that is all they are insuring for; it would be like saying he has a fire insurance policy on his house but it won't pay if it burns down. Commissioner Woods stated she doesn't have the policy with her tonight, but it definitely says clear title is an exception. She stated there are a lot of major, expensive questions that we have here tonight and she would concur that we need to defer. Motion• Defer for two weeks to get a definitive and competent understanding of what our legal obligations are so the Commission can make a well educated decision on whether to go the amendment route or leave the contract in place. Moved by Fletcher, seconded by Borno. Mayor Borno stated we .have to put this thing to rest sooner or later and it is ludicrous that we are turning around and challenging a legitimate decision made back in September. He stated it is totally against policy and procedure. Votes: Aye: 5 - Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED Commissioner Fletcher stated they are not challenging the contract, they are just getting another two weeks to study whether or not this is a good way to go. C. Annual Contracts for Atlantic Beach Athletic Association (ABAA), Atlantic Beach Experimental Theater (ABET), Tennis Professional, and Yoga Instructor. Anri126 ZO10 REGULAR COMMISSION MEETING Pa¢c 13 Timmy Johnson recognized Lynne Roskein and Jolyn Johnson for the outstanding job they did on the Arts in the Park event. He explained the contracts and recommended approval. Motion: Authorize the City Manager to sign the contracts for Atlantic Beach Athletic Association (ABAA). Atlantic Beach Experimental Theater .(ABET), Tennis Professional Brecht Catalan, and Yoga Instructor Linda White. Moved by Fletcher, seconded by Parsons. Commissioner Fletcher stated after reviewing the tax returns and financial statements of ABET and ABAA he is comfortable with the contracts and supports all of them. Votes: Aye: 5 -- Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 - MOTION CARRIED City Manager 9. City Manager A. City Manager's Report City Manager Jim Hanson gave the six month report on revenues and expenses of the City's Building Department, stating they expect to be on budget by the end of this fiscal year, which ends September 30. Reports/Requests 10. Reports and/or requests from City Commissioners and City Attorney City Commissioners A. Change in Commission meeting time. City Attorney Commissioner Daugherty explained his reasons for wanting to change the meeting time, stating he values the input from the citizens and would propose moving the start time to 6:30 p.m. Commissioner Parsons stated he was opposed to moving the meeting to 6:30 p.m. Commissioner Fletcher stated he would not support a change. Commissioner Woods stated she believes this is a good proposal. Mayor Borno stated he does not see a problem with the 6:00 p.m. meeting time. It was the consensus of the Commissioner to not come back with an Ordinance to change the meeting time. Commissioner Fletcher • Reported elected officials from Neptune Beach and others have asked that Atlantic Beach recognize that the JTA and other entities are searching for salt water mitigation opportunities and they would like to have the City of Atlantic Beach show some official support to have JTA move Find Island somewhere else. He stated he would like to see us come up with a Resolution or some official show of support for them in having the Jacksonville Transportation Authority respond to their desire to have that island taken away. • Explained the intent for his request for the deferral of Item 8B. Commissioner Daugherty • Echoed Commissioner Fletcher's comments regarding Item 8B and responded to Mr. Hanson's comments about dirty dealings. Aari126 2010 REGULAR COMMISSION MEETING Pase 14 • Explained why he voted for the minutes not to be changed and encouraged Commissioner Woods to communicate with Mr. Hanson, which will help her be more effective in what she does. • Is going to research digitalizing the agenda packet, stating he believes the agenda packets are a huge waste of paper. • Stated there still is an issue with Mr. Marrara regarding Atlantic Powder Coating and asked the City to take some action so this business falls in line with their agreement. • Reported he will be out of town May 21-June 1, 2010. Stated there has been an accumulation of trash, mattresses, etc. on W. lOt~' Street that needs to be cleaned up and investigated to see who is doing it. Commissioner Parsons • Congratulated Lynne Roskein and Jolyn Johnson on the great job they did at Arts in the Park. Commissioner Woods • Stated she enjoyed the Arts in the Park festival and Timmy Johnson does a great job. • Commented on Mr. Hanson's report regarding the citizen committee on the flooding in Atlantic Beach, stating she did not agree that the citizens committee had no effect. • Asked Commissioner Daugherty if he and Mr. Hanson were discussing her opinions and what she felt about issues. Commissioner Daugherty stated he was just told that she no longer meets with Mr. Hanson. Mayor Borno • Reported on the Mayors Fly-in he attended on Apri120-21, 2010. • Reminded all that the Northeast Florida League of Cities meeting is on Thursday, May 20, at the Casa Marina and will be hosted by the beaches, with Neptune Beach having the lead, and asked the Commission to look for door prizes for the event. Adjournment There being no further discussion, the Mayor declared the meeting adjourned at 8:44 p.m. Mike Borno, Mayor/Presiding Officer ATTEST: Donna L. Bartle, CMC City Clerk