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Agenda Item 1MINUTES *REGULAR CITY COMMISSION MEETING September 9, 2013 CITY HALL, 800 SEMINOLE ROAD IN ATTENDANCE: Mayor Mike Borno Mayor Pro Tem Maria Mark Commissioner Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Carolyn Woods City Attorney Alan C. Jensen City Manager Jim Hanson City Clerk Donna Bartle Recording Secretary Nancy E. Bailey Call to Order/Pledge: Mayor Borno called the meeting to order at 6:30 p.m. Commissioner Woods gave the Invocation, followed by the Pledge of Allegiance to the Flag. Approve the minutes of the Regular Commission Meeting of August 12, 2013. Approve the minutes of the Special Workshop of July 22, 2013. Approve the minutes of the Special Called Commission Meeting of July 22, 2013. Approve the minutes of the Commission Workshop of July 22, 2013. Approve the minutes of the Budget Workshop for August 1, 2013. Mayor Borno asked if there were any corrections to the above minutes. There were none so he stated the minutes will stand as submitted. 2. Courtesy of Floor to Visitors Item 8F was taken out of sequence and acted on at this time. 8F. Briefing by Fleet Landing representatives on proposed resolution authorizing financing. Josh Ashby, 1 Fleet Landing Blvd., asked for the City's consideration for issuing Health Care Facility Revenue Bonds to Fleet Landing. He explained this 2013 B issue will provide up to $20,000,000 to enhance the Fleet Landing campus and reposition their health care continuum. He showed an illustration of the site map of a portion of Fleet Landing property where they will be moving the Facility Operations area, giving an overview of the project the bonds will be used for. Chauncey Lever, Foley and Lardner, Bond Counsel for Fleet Landing, stated the proposed documentation is very similar to and based upon the documentation the City approved earlier this year in connection with the 2013 A bonds. He stated these have the same structure, security, documentation, and indemnifications of the City for all costs and expenses, liabilities in connection with the proposed financing. He stated the proposed resolution that will come before the Commission at the September 23 meeting would approve a form of indenture trust, loan agreement, bond purchase agreement and preliminary official statement. Peter Dame, Akerman Senterfitt, Bond Counsel for the City, stated the transaction documents are very much the same as the ones done earlier in the year. He stated the City's liability is limited; the only obligation the City has on these bonds is to pass through the payments that Fleet Landing makes on to the bond holders. He stated the City has no obligation to use its own revenues or taxing power or assets to repay September 9, 2013 REGULAR COMMISSION MEETING Page 2 these bonds. He stated these are economic development transactions; the City is helping the local business with its business but is not putting the City's assets at risk. He answered questions from the Commission. He assured the Commission that in no circumstance would the City be responsible for repayment of the bonds. Item 8A was taken out of sequence and acted on at this time. 8A. Public Hearing - Appeal on Community Development Board decision to allow construction of a fence exceeding four (4) feet in height with ten (10) feet of property line at 298 Pine Street. Mayor Borno explained that this item was listed as a Public Hearing but it is not a public hearing, it is just an appeal on a Community Development Board decision. City Attorney Jensen explained this is a quasi judicial hearing on an appeal from the Community Development Board's decision denying a variance. He stated the Commission's review on the appeal is limited to the record that was presented to the Community Development Board. He stated no new evidence can be submitted tonight. He stated it is the Commission's decision to uphold their decision or to reverse their decision because of the appeal. He stated both sides are limited to the presentations as to what was previously submitted to the Community Development Board. Kirk Hansen, 2393 Ocean Breeze Court, Chairman of the Community Development Board, explained the case as presented to the Board. He stated there are 6 criteria the Board goes through and if the request for variance meets one of those six criteria they will grant the request. He stated the Board voted 5 -1 not to grant the variance due to it not meeting the 6 criteria. Jeremiah Mulligan, of Rumrell, Bate, McLeod and Brock, 24 Cathedral Place, Suite 504, St. Augustine, attorney representing the Bernsteins in their appeal, presented their case for the appeal. He explained his clients' position, stating in February they made application for a fence permit and were denied due to it not meeting the strict compliance of the ordinance criteria. He stated they went back and talked to their contractor and after speaking with Erika Hall, Ms. Hall agreed to issue a permit but told them that if somebody does complain they might have a problem and have to file a variance. He stated the problem here is the record is pretty clear, there was a permit granted with no conditions and his client built a fence. He stated she relied on the permit as issued by the City, which is the basis that this decision needs to be appealed. He further stated the evidence as submitted certainly substantiates the grounds for the variance. Referencing the minutes from the Community Development Board meeting, he stated there were findings made by the Board that have no basis in evidence that was actually submitted before the Community Development Board which, in of itself, is a grounds for appeal /reversal. He stated the Board didn't follow the ordinances and didn't allow the evidence that was submitted to be reviewed in an objective way and came to a conclusion that wasn't based on the evidence that was submitted. He stated, as such, it is his opinion that they have used their discretion and he asked that the Commission grant the appeal and allow the variance to stay. Mr. Mulligan answered questions from the Commission. Discussion ensued. Commissioner Beckenbach asked, if the Code was sent to the contractor, would that not be considered part of the permit. City Attorney Jensen stated at the bottom of the permit it states that the permit is approved only in accordance with all City of Atlantic Beach Ordinances and the Florida Building Codes. Mr. Mulligan stated it says 6 ft. fence, it doesn't say 6 ft. fence at property line, so that is where the issue can get a little bit muddy. He stated if you look at the actual site plan that was approved it shows the fence on the property line but doesn't say whether it is a 4 ft. fence or a 6 ft. fence. September 9, 2013 REGULAR COMMISSION MEETING Page 3 Redevelopment and Zoning Coordinator Jeremy Hubsch explained related to the neighboring fences, nonconforming fences cannot be replaced with nonconforming fences so any existing fences that are there that are along the property line are basically grandfathered in. He stated, however, when that fence dies it cannot be replaced with a like fence. He stated in five or ten years those 6 ft. fences on the property line may not be there anymore. He stated there is a house catty- cornered to this one that got a permit in 2013 and it is set back 10 ft. Mr. Mulligan objected to the additional testimony stating it is outside what occurred and what Ms. Hall and everybody else could have offered previously so he asked that Jeremy's testimony be stricken from the record. Kirk Hansen further explained the purpose of the ordinance is to ensure site lines at intersections and if you build on the setbacks and it blocks the line of site at intersections then you have to move the setbacks and make them more demanding; it doesn't mean that if the setbacks, as defined by the City Code, don't block the intersection that you can build with disregard to the setbacks. He stated where the attorney is using that as his argument, with all due respect, he believes he has it backwards as far as the meaning of the Code. Discussion ensued. Kirk Hansen answered questions from the Commission. Mayor Borno read the motion from the Community Development Board's meeting minutes of September 9, 2013. Commissioner Mark pointed out that Mr. Hubsch's comments about the existing 6 ft. fences in the neighborhood is germane to this because the comments from the neighbors stated there were 6 ft. fences in the neighborhood as well as his comment that they were grandfathered in. Mayor Borno agreed that is not new testimony and is reflected in the record. Discussion ensued. Mr. Mulligan stated if you track the history of the ordinances, they used to be more restrictive. He stated that a 6 ft. fence was something that was permitted under a previous ordinance isn't consistent with a stricter ordinance from 10 -15 years ago. He stated he believes there is testimony that there are fences that are newer than 10 years old down there. He stated all his clients want is the fence that has been there now for months to remain for the reasons they stated in the meeting. He stated while he appreciates the idea that these are grandfathered in, the idea that the ordinances were stricter in the past is just inconsistent with that. Mr. Bernstein asked if he could speak. Mr. Jensen stated they had a representative speak for them. He stated if you have an appeal in front of the appeals court your attorney goes up and makes the argument; they don't say does the plaintiff or the defendant want to say anything to the court. He stated their legal representative speaks; you are in a quasi judicial proceeding. Mr. Mulligan stated he understood that point. He stated the one issue they have is that the Community Development Board did have somebody come up and testify and he believes they do have counsel that assists them so they probably should have been represented here by counsel as well. He also pointed out that the Commission was hearing from other people in the audience that were chiming in during this hearing, which he believes there is a little inequity there if his client is not allowed to try to address and offer his perspective. Mr. Jensen stated the only one who chimed in was the City's Planning Director because Erika Hall is no longer with us and Mike Griffin is temporarily out. Mr. Mulligan stated he understands that but this is an appeal from the Community Development Board and to have the additional evidence being submitted seems inequitable if his client is not also able to come up. Mr. Jensen stated this Commission understands that it can only consider evidence that was presented at the Community Development Board. September 9, 2013 REGULAR COMMISSION MEETING Page 4 Commissioner Woods stated she is in an unusual position to have lived not only in this neighborhood, off this street, and understands the traffic patterns there and also lives on a beach access and she believes there are extenuating circumstances to this street, which is why she is in favor of granting this variance. Motion: Uphold the Community Development Board decision not to allow a six foot high fence to be placed within 10 feet of a side yard property line which abuts a public right -of -way. Moved by Mark, Seconded by Beckenbach City Attorney Jensen asked that the Commissioners disclose at this time any ex parte communications prior to this meeting tonight. Commissioner Woods stated she spoke with Karen Bernstein, but does not know if it was before or after the appeal was filed. Commissioner Mark stated she spoke with Mr. Bernstein on the phone, stating she believes he was thinking about appealing it but had not appealed it yet. Commissioner Beckenbach stated he spoke to Mr. Bernstein but believes it was prior to the appeal. Roll Call Votes: Aye: 3 — Mark, Beckenbach, Borno Nay: 2 - Daugherty, Woods MOTION CARRIED Mayor Borno opened the Courtesy of the Floor to Visitors. Mayor Borno welcomed the audience and explained the process for public comments. Mitch Reeves, 1663 Sea Oats Drive, speaking as the Ferry Task Force Chairman, gave an update on the ferry, stating they met before the budget committee and the funding of $450,000 for an additional year was passed. He stated he was told by Senator Thatcher that the State has about $20,000,000 of spare money that may come back to the citizens so maybe they can tag some of that. He stated the vote for the $450,000 will come before the whole Jacksonville City Council on September 24 and asked that the citizens show up and give their support to the ferry. He reported that on Saturday, September 14, there will be training for new ambassadors for the ferry at the Mayport Community Center. He also commended the Commission on supporting the Code Enforcement because that is part of the quality of life. He reminded them that when they vote on any ordinance for the City to vote on it with the intention that they are going to enforce it, not use selective enforcement, because that can end up being a personal issue. He thanked the Commission for what they do for the City. Elizabeth Neville, 1060 Seminole Road, addressed item 10C, commending the Code Enforcement Board. She stated she has not seen too many of the Commission attend the Board meetings but if they attended them they would be very proud of what they were watching. She stated these are people who are not paid, they are devoted, focused, concerned, are good listeners to what the problem is, and ask appropriate questions. She asked that they attend the Code Enforcement Board meeting tomorrow night. She further stated they love when the Commission speaks into the microphone. September 9, 2013 REGULAR COMMISSION MEETING Page 5 Mark Tomaski, 448 Snapping Turtle Court W., stated he is happy to see the camera in place and hopes at some point they will get a three - camera (system). Veda Harless, 680 Sailfish Drive, thanked Ms. Neville for her kind words about the Code Enforcement Board and invited the Commission to come to the Code Board meeting tomorrow night. She stated she is the Chair of the Code Enforcement Board and they have a really good board. She stated she would love to see it continue as a Board and not a magistrate. No one else from the audience spoke so Mayor Borno closed the. Courtesy of the Floor to Visitors. 3. Unfinished Business from Previous Meetings A. City Manager's Follow -up Report. None. 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 Financial Report, Building Department Monthly Activity Report, List of New Business Taxes and Utility Sales Report for July. B. Police Semi - annual Report. C. Award a contract to Gruhn May, Inc. for Pine St. and Wonderwood Rd. Water Main Replacement and Mayport Rd. Valve Addition, Bid No. 1213 -02, in the amount of $122,765.70 and authorize the City Manager to sign the contract. In addition, authorize staff to encumber funds in the amount of $13,000 for contingency. D. Approve the extension of the Electrical Troubleshooting and Repair contract for one additional year to Limbaugh Electrical Contracting, Inc. at the contract prices effective November 1, 2013 — Bid No. 0910 -16. E. Award the Janitorial Service Contract for City Facilities to Supreme Janitorial Service in the amount of $50,796.00 for a one (1) year contract to expire on September 30, 2014 — Bid No.1213 -06. F. Reject all bids for Concrete Repairs for Public Works/Utilities Department (Bid No. 1213 -08). G. Declare the list of property as surplus so that the items may be disposed of in the most beneficial way. H. Authorize the City Manager to sign contracts with Atlantic Beach Athletic Association, yoga instructor Linda White and tennis professional Brecht Catalan. Mayor Borno read the Consent Agenda. Commissioner Daugherty pulled item 4B. Motion: Approve Consent Agenda Items A, C -H as read. Moved by Beckenbach, Seconded by Mark September 9, 2013 REGULAR COMMISSION MEETING Page 6 Votes: Aye: 5 — Borno, Beckenbach, Daugherty, Mark, Woods Nay: 0 MOTION CARRIED Commissioner Daugherty gave a hats off to Chief Classey and the Police Department for keeping these numbers very low. He asked that they have a five -year timeline in future reports to get a better view of the trends happening in the City. Motion: Approve Consent Agenda Item B as read. Moved by Daugherty, Seconded by Mark Votes: Aye: 5 — Borno, Beckenbach, Daugherty, Mark, Woods Nay: 0 MOTION CARRIED 5. Committee Reports None. 6. Action on Resolutions None. 7. Action on Ordinances A. Public Hearing on adopting a Tentative Millage Rate and adopting Ordinance No. 20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014. AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014. Mayor Borno read Ordinance No. 20 -13 -125 by title. He stated the first item to be considered was Adoption of a Tentative Millage Rate. He stated the Millage Rate is 3.3285; the Tentative Millage Rate is 3.3285; the Roll —Back Rate is 3.3156 and the Tentative Millage Rate is 0.39% more than the roll back rate. He stated the purpose for adopting the millage rate of 3.3285 is to maintain a level of ad valorem tax revenue sufficient to maintain adequate funding for the existing level of services at anticipated and proposed cost and to continue to maintain the City's infrastructure. Motion: Adopt a Tentative Millage Rate for operating purposes of 3.3285. Moved by Daugherty, Seconded by Mark Mayor Borno opened the Public Hearing. No one from the audience spoke so he closed the Public Hearing. Roll Call Votes: Aye: 5 — Woods, Beckenbach, Daugherty, Mark, Borno Nay: 0 MOTION CARRIED September 9, 2013 REGULAR COMMISSION MEETING Page 7 Mayor Borno stated the second item to be considered is Ordinance No. 20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014 of $29,482,771. Motion: Adopt Ordinance No. 20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014. Moved by Mark, Seconded by Daugherty Mayor Borno opened the Public Hearing. No one from the audience spoke so he closed the Public Hearing. Commissioner Daugherty addressed the item for $40,350 for the detective offsite offices and stated he wanted to amend the motion to remove that line item. Motion: Amend to remove the $40,350 line item. Moved by Daugherty, Seconded by Beckenbach Commissioner Mark stated at the budget workshop they agreed to put this money in as a place holder and then depending on further investigation from Chief Classey regarding renting space, etc. then they would move forward on it at that time. Discussion ensued. Commissioner Mark called the question. Votes: Aye: 2 — Mark, Borno Nay: 3 - Woods, Beckenbach, Daugherty MOTION FAILED Further discussion ensued related to the $40K for a space for the police detectives. Commissioner Woods asked to have a workshop, including the newly elected Commissioner, related to the Police Building. Discussion ensued. Mayor Borno called for a vote on the amended motion. City Clerk Bartle asked if she should call the roll. Mayor Borno stated yes. Roll Call Votes: Aye: 1— Beckenbach Nay: 4 - Daugherty, Mark, Woods, Borno MOTION FAILED Mayor Borno called for the vote to approve the motion to adopt the Ordinance and asked the City Clerk to call the roll. Roll Call Votes: Aye: 5 — Daugherty, Mark, Woods, Beckenbach, Borno Nay: 0 MOTION CARRIED September 9, 2013 REGULAR COMMISSION MEETING Page 8 B. ORDINANCE NO. 75-13-19, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 21 TRAFFIC AND MOTOR VEHICLES ARTICLE II STOPPING, STANDING AND PARKING TO RENAME PARKING MORE THAN SEVENTY -TWO HOURS PROHIBITED TO PARKING IN THE RIGHT OF WAY WITH REVISED REQUIREMENTS AND TO PROVIDE A FINE STRUCTURE FOR VIOLATING THAT SECTION AND PROVIDING AN EFFECTIVE DATE. Mayor Borno read Ordinance No. 75 -13 -19 by title. Motion: Approve Ordinance No. 75 -13 -19 as read. Moved by Mark, Seconded by Beckenbach Mayor Borno explained this is to amend the parking regulation to provide better enforcement powers for parking in the right -of -way. He stated this is not specific to Sherry Drive, etc., it is any right -of -way. Commissioner Woods stated if this is any right -of -way and not just the arterials, she cannot see how this would work on the street she lives on. She stated more than half the houses have cars parked in front of them every night. She stated she does not see how this is going to work; she thought this was for arterial streets. Mr. Hanson explained he did not believe it was intended to prohibit parking on the streets where parking is not prohibited. He stated the intent was parking on the grass on the City right -of -way. Chief Classey explained this has no impact on where parking on the street is permitted or not permitted but it does apply to every City right -of -way on every street in the City. Commissioner Beckenbach stated he has been riding around to see the different areas that would be affected. He stated there are a lot of people who have taken the right -of -way and put bricks, stone, etc. on the right -of- way and asked how they are going to work with that. Discussion ensued about limiting this to arterial streets only. Mayor Borno asked the City Attorney if they named the arterial streets in this is that a substantial change. Mr. Jensen stated it is their decision whether that is a substantial change but his opinion is that it would be. He stated what they were presented tonight was what they asked for, a method for the Chief to be able to enforce parking on the right -of -way. He stated if they want something different they need to let them know so they can prepare it. Motion: Bring this back at the next workshop for further discussion in order to make a recommendation to the staff on which way to move. Moved by Beckenbach, Seconded by Woods Discussion ensued. Mr. Hanson agreed with Commissioner Beckenbach's suggestion but, in addition, give staff a chance to rewrite this to comply with what they believe they have heard from them tonight so by the next workshop they will have a rewrite and they can go ahead with a first reading at the October 14 meeting. City Attorney Jensen asked that the Commission clarify what they want and they will prepare it. He stated they have a motion and a second on the floor to pass the ordinance on first reading and another motion to take it to workshop. Discussion ensued. September 9, 2013 REGULAR COMMISSION MEETING Page 9 Mayor Borno stated they have a motion to go to workshop which needs to be cleared and he would suggest they withdraw the motion and second, get away from the workshop, give direction, not pass this tonight, get a new rewrite and start from scratch at the workshop. Commissioner Beckenbach withdrew his motion, Commissioner Woods withdrew her second. Mayor Borno suggested they defer and come back with a total rewrite and address arterial streets right -of- way. Mr. Jensen stated they have a motion and a second on the floor to pass the ordinance. Commissioner Mark withdrew her motion, Commissioner Beckenbach withdrew his second. 8. Miscellaneous Business A. Public Hearing - Appeal on Community Development Board decision to allow construction of a fence exceeding four (4) feet in height with ten (10) feet of property line at 298 Pine Street. This item was taken out of sequence and acted on earlier in the meeting. B. Public Hearing - Request for Waiver to allow two cupolas at 42 feet 1.5 inches and a tower lantern cupola at 38 feet 5 inches as shown in the submitted rendering. The Request for Waiver was withdrawn. C. Agreement with St. Johns River Water Management District for Construction of Reclaimed Water Facilities. Mr. Hanson stated as presented at the workshop this is a grant that Donna Kaluzniak worked hard to get and he recommends the Commission signing off on it. Motion: Authorize the City Manager to sign the St. Johns River Water Management District Cost Share Agreement for the Reclaimed Water Facilities. Moved by Woods, Seconded by Mark Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED D. Renewal of City Property and Casual Insurance. Mr. Hanson stated this was reviewed at the workshop and introduced Mr. Woleshin with Harden and Associates if anyone had questions. Shaun Woleshin of Harden & Associates, 501 Riverside Avenue, gave a short overview stating they recommended moving Workers Comp to a new carrier, FMIT, and moving forward as outlined. September 9, 2013 REGULAR COMMISSION MEETING Page 10 Motion: Approve renewal of insurance, effective October 1, 2013 through September 30, 2014 and authorize City Manager to sign related insurance renewal documents. Moved by Daugherty, Seconded by Woods Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED E. Proposed Ordinance for Florida Friendly Fertilizer Use. Mr. Hanson stated it was outlined at the last meeting that the City needs to have such an ordinance by virtue of our State issued stormwater permit. He stated they don't have an ordinance ready to present to the Commission yet but can get one ready. Motion: Direct staff to bring a proposed ordinance back for first reading. Moved by Woods, Seconded by Mark Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED F. Briefing by Fleet Landing representatives on proposed resolution authorizing financing. This item was taken out of sequence and acted on earlier in the meeting. 9. City Manager A. City Manager's Report. Mr. Hanson reported the Police PBA voted to ratify the union contract last week and it will be on the agenda for the Special Meeting on September 23 for approval so it can be done prior to the beginning of the fiscal year and they can get the raises that were put in the budget for them. He stated the Public Works Union has not consented to a vote yet and do not have another meeting set with the City yet. He reminded the Commission of the workshop tomorrow at 3:00 p.m. to discuss the Master Agreement and Conservation Easement for the Country Club. He stated he sent the final documents to the Commission today. He explained the reasoning behind the meeting date. He stated the developer still wants to begin construction as early as November 1 which relates to the growing period for the grass for the golf course. He commented on the remark made regarding selective enforcement on fences, stating they do the best they can with one Code Enforcement Officer. He stated he would not be surprised if some people have illegally built fences over the past years since the current regulations were in place dealing with the size of a fence on the right -of -way line. He asked Donna Kaluzniak to report on a boil water notice issued today. Ms. Kaluzniak explained the boil water notice was caused by one of the wells testing positive for E. coli bacteria, which is very unusual and probably highly unlikely. She stated because it tested positive they have to issue a boil water notice. She September 9, 2013 REGULAR COMMISSION MEETING Page 11 stated the water from the well goes through the treatment plan and is disinfected at the treatment plant. She stated they were running tests on the distribution system at the same time and those tests of the water in the pipes to the houses came out fine. She stated they are running additional tests and have shut down the plant. She stated if those tests come back clear she believes DEP will let them lift the boil water notice. She stated it usually takes a couple of days for the tests results to come out. She stated she has notified the newspaper in accordance with DEP regulations. She reiterated they are retesting, keeping the plant off line until they get clearance, have done notification to First Coast News and the paper. She stated she did not do a reverse 911 due to the length of the notice as required by DEP. Commissioner Mark asked who has to boil water. Ms. Kaluzniak stated that it includes everybody, it is system wide. She further explained the test result came back on the 4th but they did not get the notification until today (September 9). She stated the project manager at the lab was out of town and the person in charge sent an email but to the wrong address, then he left a voice mail. She stated it was very poor notification as far as we are concerned and have notified them about that. She stated there is always going to be a lag time because it takes two days for the test to run. She stated DEP requires us to put out this notice within 24 hours of us getting notified so as soon as they got the word they called DEP to see what they needed to do. Commissioner Daugherty asked her to clarify that she did state that the water was tested again at the tap point and that test came out negative. Ms. Kaluzniak stated the water was tested in the distribution system and those tests were negative. She repeated that the well water does goes through the treatment process and it is disinfected so it should have taken care of any bacteria but as a precaution because we did have E. coli hit in the well we do have to put out a notice. She stated they retested it today, they are at the lab right now and hopefully will get results back very quickly. 10. Reports and /or requests from City Commissioners and City Attorney A. Discussion and Recommendations for the Process and Procedure of Commission Evaluation of City Manager /City Clerk/City Attorney. Commissioner Beckenbach withdrew this item. B. Board Member Review Committee Recommendations for Appointments to the Code Enforcement Board. Commissioner Daugherty reported on the Board Member Review Committee's recommendations to fill the vacancies on the Code Enforcement Board. Motion: Appoint John Stinson to serve as a regular member on the Code Enforcement Board with his term beginning October 1, 2013. Moved by Daugherty, Seconded by Borno Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED Motion: Reappoint Meade Coplan to serve as a regular member on the Code Enforcement Board with her term beginning October 1, 2013. Moved by Daugherty, Seconded by Woods Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED September 9, 2013 REGULAR COMMISSION MEETING Page 12 Motion: Appoint Louis Keith as a regular member and Richard Lombardi as the alternate member to serve on the Code Enforcement Board with their terms beginning October 1, 2013. Moved by Daugherty, Seconded by Woods Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED C. Reconsideration of Ordinance 5 -13 -30 to dissolve the Code Enforcement Board and authorize creation of one or more special magistrates. Commissioner Daugherty withdrew this item. D. Continued Discussion as to the Potential Renovation and Additions to the Present COAB Police Station. Commissioner Beckenbach withdrew this item. E. Explanation as to which recommendations from Marc Hudson are being considered for the Conservation Easement for Selva Marina Country Club. Commissioner Woods moved to postpone until after the workshop tomorrow. Commissioner Beckenbach agreed, as he had put this item on the agenda. Commissioner Beckenbach • Stated he was asked by a number of people regarding having the Selva Marina meeting at 3:00. He stated there was some concern from citizens who would have liked to have attended that but they all work. He recommended that the videotape of workshop be put on THE web. • He also stated he wanted to have a town hall meeting at Adele Grage to explain what transpired at the workshop. He asked if he could reserve that location sometime next week. Mayor Borno stated the workshop will be pretty extensive tomorrow and that may help considerably. Commissioner Beckenbach stated that might alleviate the whole problem. Commissioner Woods stated the IT Director indicated the video of tomorrow's workshop will be available on line. Mr. Hanson stated they were also going to use that recording to experiment with the sound system; the sound system works better at the dais than it does down on the floor, which is the format for that meeting. He stated he has no objection to it being put on the web but they have not yet experimented with it to see if it is going to work properly. He stated they have put in the budget for better microphones in this room but the budget is not adopted and we don't have them yet. He further explained why the timing was set for 3:00 for the workshop was because this room is being used at 6:00 for the Code Board. Commissioner Beckenbach stated if it is difficult to have a town hall meeting at Adele Grage it is fine if it is in the Chamber. Mayor Borno stated he could work that out with the City Clerk's office. Commissioner Beckenbach stated he would do that. City Clerk Bartle • Stated she will be off next week. Commissioner Woods stated they could have someone take minutes for her. Ms. Bartle stated, yes, one of them could do that. September 9, 2013 REGULAR COMMISSION MEETING Page 13 Commissioner Daugherty • Stated he also would like to set a workshop for the Police Building for this month and invite the newly elected Commissioner. Mayor Borno asked staff to schedule a workshop. • Stated he is still against expending the money for the Police Detectives offsite facility. He stated he is very encouraged by the discussion tonight regarding the police building. • Announced it is his birthday today and his biggest birthday present was that the ground broke on Rose Park with completion expected in early November. • Introduced his father who was in the audience. Commissioner Mark • Wished Commissioner Daugherty a Happy Birthday. • Regarding the emails that they are trying to ramrod the Selva deal through, that is the farthest thing from the truth. She stated everyone has been working diligently to get this done by the timeframe that they, as a Commission, set. She stated Selva has been an issue for two years and the Club has been able to come up with a viable solution that works for the community. She stated she does not know how much more transparent they can be and she takes issue with some of the insinuations that they are trying to ramrod this deal through and are doing something that is not good for the community. She stated she would not be part of anything if it was a detriment to the community. • Stated she is glad they are going to do a workshop for the police station, but asked that they wait until October until the Selva issue is done. City Attorney Jensen • Reiterated the invitation for the Commission to attend the Code Enforcement Board meeting. Mayor Borno • Reminded everyone of the training for ambassadors for the ferry. He stated we have gained a tremendous amount of ground on the ferry and asked for everyone's support. • Commissioner Daugherty reminded everyone that Commissioner Mark is also working on MarshFest which will be held on November 16. Commissioner Mark stated they have plenty of volunteers, they just need people to come out and enjoy the day. Adjournment There being no further business to come before the Commission, the Mayor declared the meeting adjourned at 9:11 p.m. Mike Borno ATTEST: Mayor/Presiding Officer Donna L. Bartle, CMC City Clerk *A Workshop was held on August 26, 2013 for the purpose of discussing these items. Please refer to the Workshop Minutes for the previous discussion. MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBER, ON AUGUST 6, 2013 AT 5:00 PM. City Commission Members present: Mike Bomo, Mayor Maria Mark, Mayor Pro Tem Mark Beckenbach, Commissioner Jonathan Daugherty, Commissioner Carolyn Woods, Commissioner Staff present: Jim Hanson, City Manager Nelson Van Liere, Finance Director Donna Kaluzniak, Public Utilities Director Rick Carper, Public Works Director Mike Griffin, Building and Zoning Director Jeremy Hubsch, Redevelopment and Zoning Coordinator Keith Randich, IT Director Donna L. Bartle, City Clerk The meeting was called to order at 5:02 p.m. by Mayor Borno. Mayor Borno explained the process. City Manager Hanson explained the agenda items to be discussed tonight. Utilities (Handout: Public Utilities Budget FY2014, which is attached and made part of this Official Record as Attachment A) Utility Director Donna Kaluzniak reported the Current FY Project Status for the Water Fund and Sewer Fund and explained the costs noting that $60,000 will need to be re- budgeted for the Arc Flash Studies for the Water Plant and $300,000 in additional funds are needed for pipe replacement to the Effluent Outfall. Ms. Kaluzniak gave an overview of the Public Utilities Operations and staffing. She explained the various types of Public Utilities Contractors and Consultants are Utility Contractor, Engineering and Survey, Electrical and Electronic, Environmental Laboratory, Pump, Motor, Generator Repair, SCADA and Security System, Welding and Fabrication, Landscape Maintenance and Janitorial. Ms. Kaluzniak reported on the Water Loss Reduction and the contributing factors. She referred to and explained the chart titled Meters Replaced vs. Water Loss. She explained the status of the Water Master Plan including continuing replacement of old and undersized water mains to address water quality and fire flow issues; installing one new well and rehabilitating one existing well at Water Plant #1; continuing elevated and ground storage tank maintenance; and reducing staff by one Distribution/Collection Operator in FY13 due to system improvements. She referred to and explained the chart titled Completed and Possible Remaining Water Main Replacements. Ms. Kaluzniak reported on the Water Master Plan Future Issues noting they are currently reviewing priorities to update the Master Plan. She indicated they will continue with well evaluation, rehabilitation and replacement as needed; will continue to replace aging and undersized water mains (most are complete), and replacement of asbestos concrete and cast -iron mains will be the last priority for water main replacement. Minutes — City Commission Budget Workshop August 6, 2013 Page 2 She explained the Water Capital Items in the proposed budget includes $440,000 to replace a 4" AC Water Main on Mayport Rd. near Wonderwood and add a connection under A1A between Mayport Landing and Mallard Cove Apts; $125,000 for Rehabilitation of Elevated Tank at Water Plant #2; and $100,000 for Rehabilitation of Ground Storage Tank at Water Plant #2. Ms. Kaluzniak explained the status of the Sewer Master Plan. She reported the TMDL project has been completed; they are meeting the nitrogen limits; the operational and electrical savings are exceeding expectations and the project will be featured at the City of Jacksonville Environmental Symposium in August. A lengthy discussion ensued regarding staffing. She further explained the status of the Sewer Master Plan reporting they did continue the sewer rehabilitation and started designing the effluent outfall repairs but decided to do a design of a pipe replacement instead. She referred to and explained the maps titled Sanitary Sewer Rehabilitation — Status at 2006 Sewer Master Plan and Sanitary Sewer Rehabilitation - Status as of FY13 and answered questions from the Commission. She explained the Sewer Capital Items in the proposed budget include $1,105,000 for the Reclaimed Water Facility (40% Grant - $442,000, 60% City - $663,000); $155,000 for the rehabilitation of remaining sections of Donner Subdivision (75% Grant - $116,250, 25% City - $38,750); $276,000 for sewer system rehabilitation on Saturiba Dr. and Sea Oats Dr.; and $50,000 to replace effluent pump at WWTP. Utilities (Handout: Utility Sales, Rates and 10 -Year Plan, which is attached and made part of this Official Record as Attachment B) Mr. Hanson referred to his handout as he explained and answered questions on the charts titled Water Sales Volume 99 -00 to 12 -13, Sewer Sales Volume FY 2000 -FY 2012, Average Monthly Water Customer Usage, Water and Sewer Utility Bill Comparison 2013 Rates, and Water and Sewer Utility Rates. Discussion ensued. It was pointed out that the City should check into the possibility of updating the Sewer Impact Fee Study to incorporate the cost of the TMDL improvements. Mr. Hanson referred to and read City Code Sec. 22 -2 — Return investment policy for Buccaneer plant which states "The additional rates charged by the Buccaneer systems to customers outside the city pursuant to Section 22 -27(2) for water and Section 22- 167(b) for sewer shall be considered a return on investment, and such return on investment shall be contributed to the general And of the city unless a lesser amount of transfer is budgeted on an annual basis. Mr. Hanson explained the chart titled Transfers to General Fund vs Surcharge. He referred to the chart titled Public Utilities (also page 118 in the proposed budget) as he explained the amounts for Personnel Services, Operating Expenses, Debt Services, Transfers, Capital Outlay and Revenues. The Commission asked questions and staff responded. Revenue and Tax Information (Handout: FY 2019 Budget Workshop Revenue and Tax Information, which is attached and made part of this Official Record as Attachment C) Finance Director Nelson Van Liere referred to the handout and pages 3, 4 & 5 in the proposed budget as he reported the Total 2014 General Fund Revenues and explained the various funds including Ad Valorem Taxes, Licenses and Permits, Intergovernmental, Interfund Transfers, Fines and Forfeitures, Charges for Services, Miscellaneous, and Utility, Communications and Minutes — City Commission Budget Workshop August 6, 2013 Page 3 Business Taxes. Mr. Van Liere reported that we will actually have a roll back rate, although it is very small, noting it has been a roll up rate for the last five or six years, so that is nice for a change. Mr. Van Liere referred to the charts and graphs in the handout as he explained the Atlantic Beach Taxable Property Values, Ad Valorem Assessment Rolls, Office of the Property Appraiser Final 2013 Millages, Multi Year Operating Millages, 2013 Total Proposed Millages, General Fund Total Revenues by Type and Total Expenses, and General Fund. He and Mr. Hanson answered questions. IT / Enterprise Software Upgrade (Handout: Upgrade to New Enterprise Application, which is attached and made part of this Official Record as Attachment D) IT Manager Randich referred to the handout as he explained a new application called One Solution from SunGard. He explained the history of the SunGard HTE application, status of the upgrade, new application, system requirements and advantages of the new system. He reported that instead of buying a new main frame computer, we moved to a data center in Atlanta as a first step in this process. He referred to the chart titled Multiple Year Project as he explained the phases and the funding needed for the project over the next four years. He and Mr. Hanson answered questions from the Commission. Mr. Randich confirmed that $140,725 for the One Solution Community ASP and $169,000 Recurring Costs are in the proposed budget and Mr. Hanson confirmed that the money for the other phases are in the ten year plan. Other IT Items Mr. Hanson explained the cost of the tablets are in the budget and if approved, IT will work on getting them set up right after the first of the year. Mr. Randich gave a status of the camera project reporting that even though they went with the single camera systems, we purchased two cameras in order to accommodate the different meeting layouts. Mr. Hanson referred to his supplemental list and explained the cost for sound system improvements for the Commission Chamber, which includes directional speakers and eight wireless microphones, is $13,000. Commissioner Daugherty expressed an interest in having portable equipment to record and amplify sound at various city meetings in locations other than the Commission Chamber and asked if staff could get a cost estimate for the equipment in time for the next budget workshop so it can be added to the budget. Discussion ensued and Mr. Randich agreed to bring something back. Building Department (Handout: Review of Building, Code Enforcement and Planning and Zoning Departments 2013 -14, which is attached and made part of this Official Record as Attachment E) Building and Zoning Director Mike Griffin referred to the handout noting that it shows activities of the Building Department associated with enforcement of the Florida Building Code related to expenditures and revenue. Mr. Griffin explained the Building Department is an Enterprise Fund and tries to pay for itself through the building permit fees. He reported that three years ago they raised the minimum Minutes — City Commission Budget Workshop August 6, 2013 Page 4 permit fee from $35.00 to $55.00 in order to make an adjustment and it seems to have worked out good. He explained they remain as an Enterprise Fund for the Florida Building Code, but the Floodplain management, housing code enforcement and zoning code activities are funded by the General Fund. He reported the proposed budget includes anticipated revenues of $281,550 and anticipated expenses of $261,939. He explained the graphs titled Construction Value in Atlantic Beach, Building Department Expenditures and Revenues, and Building Department Permits and Inspections which indicates construction continues to go up. Mr. Griffin reported the Building Department is operating with one Building Official, one Building Inspector /Plan Reviewer and two administrative personnel. The Building Department should anticipate operating at nearly the same level of activity as recent years with a slight increase. The department provides administrative support to Personnel, Finance, City Administration and the Development Review process. Mr. Griffin reported the cost to add an additional Code Enforcement Officer Full -time or Part- time as follows: For the Full -time Code Enforcement Officer (40 hours weekly), the total cost to for the first year would be $69,816 which includes an annual cost of $48,216 and additional cost of $21,600 to start; and for the Part -time Code Enforcement Officer (20 hours weekly), the total cost for the first year would be $43,362 which includes an annual cost of $21,762 and additional cost of $21,600 to start. Mr. Griffin reported the monthly case load and the Royal Palms and Mayport Corridor Property Survey Results. Mr. Hanson explained the reasons to consider an additional Code Enforcement Officer which is on the supplemental list. Discussion ensued regarding the various types of complaints and what the Code Enforcement Officer does to enforce the City Codes. The suggestion was made to set up a day to ride or work with the Code Enforcement Officer to find out more about the details from the initial citing of a complaint to when the complaint goes through the Code Enforcement Board process. Mayport Corridor Redevelopment Redevelopment and Zoning Coordinator Jeremy Hubsch explained the details of the Mural at Mayport Road and Atlantic Boulevard Overpass at $8,000 and the Mayport Road Landscape Matching Program at $10,000, which are both on the supplemental list, and reported that the City can apply for a grant for matching funds on both beautification projects. Commissioner Daugherty indicated that instead of the 20' by 20' art that was proposed, he wanted the entire length of the triangle piece to be painted. Mr. Hubsch stated he thought he should start out small but hopes to expand it to multiple -year phases. There was a lengthy discussion and Mr. Hubsch answered questions from the Commission. Mr. Hubsch also reported he will be working with partners to designate A1A as a "Florida Scenic Highway" from Jacksonville Beach to Fernandina; met with Florida Department of Economic Opportunity and they are interested in using Atlantic Beach as a potential pilot program for a major statewide economic development initiative; and will work with City of Jacksonville and Jacksonville Chamber on possible incentives over the next year. He stated he would give more information on these programs as things evolve. Summary of Outstanding Debt (Handout: Atlantic Beach Debt, which is attached and made part of this Official Record as Attachment F) Minutes — City Commission Budget Workshop August 6, 2013 Page 5 Finance Director Nelson Van Liere referred to the handout as he explained the City's outstanding debt and the debt payments proposed in the 2014 budget. There was a brief discussion about whether or not it would be valuable for the City to use some of the fund balances in excess of the 25% minimums to pay off outstanding debt. Follow -up Items from the first budget workshop Mr. Hanson reported on follow -up items as follows: Tennis Courts- We have been in contact with Jacksonville Beach, but we don't have a final answer yet regarding the materials used in the reconstruction of their tennis courts. Saltair Stormwater Project- The cost to install curb and gutter in the Saltair Subdivision is $1,500,000 versus the swale restoration for $250,000. Because there are only 69 homes that would be affected compared to the increased cost to the City of $1,250,000 (not including the pond and piping) the assessed cost to each homeowner would be $18,115. With the cost of the pond and piping to get there, you could easily double that cost. There was little support from the Commission to upgrade the project to curb and gutter. Robert Street Ditch- The best cost estimate to do the proposed grading and bank stabilization improvements for next year would be $80,000 to $100,000. There was discussion about possibly splitting these costs with FDOT and the City considering budgeting only half which is $45,000. Mr. Carper reported the cost to replace the sandbag head wall with a more complete concrete structure would probably add less than $10,000 to the project cost. Rose Park Bids- Mr. Carper summarized the status of the revised recommendation to bring the Rose Park Project back within the budgeted amount. He explained the items that were left in and those that were left out of the new proposal. Mr. Hanson reported the list of items to be discussed at the next budget meeting. There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 8:45 p.m. Mike Borno Mayor Donna L. Bartle City Clerk Public Utilities Budget Current FY Project Status —Water Fund Project Curre Amount. Rehab Interior of Elevated Tank WTP 1 and Ground Storage Tank WTP 3 $89,180 Complete Water Main Replacement on 12th, $224,740 Complete Ocean & 15th Water Main Replacements on Pine St. and Wonderwood Rd. $270,000 Bidding Arc Flash Studies for Water Plants $60,000 Proposals due 8/7/13 — will need to re- budget for FY14 ATTACHMENT A 1 Current FY Project Status — Sewer Fund roject Current FY Amount Reclaimed Water Facility $155,528 Design /Permitting Design /Permitting Sewer Rehabilitation (11'h -14th Sts. on $194,038 Complete Beach, Ocean, East Coast) _ Effluent Outfall Repairs — during design $142,000 Design — will need study, found pipe will need replacement. to budget with additional funds for FY14 - $300,000 TMDL /Sludge /Odor Control $113,634 Complete PUBLIC UTILITIES OPERATIONS • Work towards optimum efficiency with minimal staff. • Contractors /Engineers are part of the Utilities Team — Keep salary /benefit costs lower — Utilize specialized expertise as needed — Help determine priorities -- Available for emergencies 24/7 2 Public Utilities Contractors and Consultants "Utility Contractor Environmental Laboratory Welding and Fabrication Engineering and Survey Pump, Motor, Generator Repair Landscape Maintenance E ethical and Electronic SCADA and Security System lir Water Loss REDUCTION • Enhanced meter replacement project — 1,000 meters replaced in FY13 — Changed methodology to target highest use meters • Large meter testing /repair /replacement • Leak detection • Water loss dropped to 10.2% from high of 16.9% Meters Replaced Vs. Water Loss 1200 1806 • Amloal4Yalal 141 Iola! Nevi &RevhueA 1 MO FY01 FY02 FY03 FY04 FY05 FY00 FYQS FY88 FYO9 FY10 fY11 FYll FY13 Water Master Plan Status • Continuing replacement of old and undersized water mains to address water quality and fire flow issues • Installed one new well and rehabilitated one existing well at Water Plant #1 • Continuing elevated and ground storage tank maintenance • Reduced staff by 1 Distribution /Collection Operator in FY13 due to distribution and collection system improvements 4 Completed and Possible Remaining Water Main Replacements Water Master Plan Future Issues • Currently reviewing priorities to update Master Plan: — Continue with well evaluation, rehabilitation and replacement as needed -- Continue to replace aging and undersized water mains (most are complete) — Replacement of asbestos concrete and cast -iron mains 5 Water Capital Items for FY14 • $440,000 - Fire flow improvements: - Replace 4" AC Water Main on Mayport Rd. near Wonderwood and Add Connection under A1A between Mayport Landing and Mallard Cove Apts. • $125,000 - Rehabilitation of Elevated Tank at Water Plant #2 • $100,000 — Rehabilitation of Ground Storage Tank at Water Plant #2 Sewer Master Plan Status Completed TMDL project — Meeting nitrogen limits — Operational and electrical savings exceeding expectations — Project will be featured at COJ's Environmental Symposium in August 6 Sewer Master Pran Status, cont'd. • Continued rehabilitation of gravity sewer system during FY13: — Beach Ave., Ocean Blvd. and East Coast Drive between 10th St. and 14th St. Design of effluent outfall repairs: — Replacement of pipe recommended instead of repairs Sanitary Sewer Rehabilitation ° Status at 2006 Sewer Master Plan J.; M y I4 4MY kil 7 Sanitary Sewer Rehabilitation - Status as of FY13 Sewer Capital Items for FY14 ▪ $1,105,000 Reclaimed Water Facility (40% Grant - $442,000, 60% City - $663,000) • $155,000 - Rehabilitation of remaining sections of Donner Subdivision (75% Grant - $116,250, 25% City - $38,750) ▪ $276,000 -- Sewer system rehabilitation on Saturiba Dr. and Sea Oats Dr. • $50,000 — Replace effluent pump at WWTP 8 Utility Sales, Rates and 1O -Year Plan August 6, 2013 0,600 H60,000 40,000 20,000 Wake rSales Vol 99 -00 to 12 -13 1 5 8 7 8 Months 05 rY October • 1 10 12 -41—fY 90-Co - 01z2 ••o••FY 45-04 - FY 0544 —FY 07.013 — 4,—.FY 08'10 —.—FY 11. —4—FY 'I.17 L Gallons x VOID 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Sewer Sales Volume FY 2000 -FY 2012 - 1 2 3 4 5 6 7 8 9 10 11 12 Months of FY; October =1 —FY 1999 -00 — FY 2001 -02 — FY 2003 -04 -4--FY 20004E — FY 2007.00 — M—FY 09 -10 - 11 -12 — FY 12.13 14.00 12.00 1000 10 .100 2.00 City of Atlantic Beach AYErago Monthly Water Customer Usage 0 10 r9,7.� f g 8.90 0 00 8.81 .6 — 7 S 7.10 1909.00 2000.01 2000.02 2002.03 2003.04 2004.05 2005.08 2008,07 2007 -03 2200 -09 2009- 0 2010.11 2011.12 2 $150 ,S1oo S50 so Water and Sewer Utility Bill Comparison 2013 Rates 0 1 2 j 4 5 6 7 K 9 10 11 12 1; 14. 15 31.1 17 16 19 20 2,1 22 23 24 25 Gallons in Thousands Jacksonville Beach Neptune - FYi3 -*- Atlantic Beach inside Atlantic Bch Outside JEA -Pin, II$2550.00 5'110.1111 $150.00 k O$1...410 p 571.00 Water and Sewer Utility Rates $0.00 ,1 CacNlunvlllc Death 1..s. 1n.y 3616 Neptune - FY19 4i .i,,.,• 5,,.6,1 +■Allanlie Brach Inside -1.11 S-'.'^ 14 71 Allann Ikh m,n1d1- xa,;, . -r I 00..111 ,3.1� 165.11111 0,..114 15.93 51.79 Gallons in Thousands 3 4 S. R 7 1 6 1 is 0 la 1 ,.p 1.1.11 5046 60.17 1 71..31. 19.67 141., ,,,451 1,4.1! ,c 33 . Y. ;, i4 .,.;e 1.1.',1 11.01 71.56 Sz.a1 1 95.17 191,3111",09 ,31G1 1.1,1 ,I 1r.1...•] ■1X.10 +'.33 ;^'1.51 17.35 1546 31.57 1 63.61 417. 1 I -1 1, 16.05 •,3 .In 111.55 1111.0 ,ar1R, u1RU ,vls' 46.71 0215 66.91 I 77611 67,06 I 9745 101.551 50177 1_3.,111 ,i,,, 15 1,, .1 ,51:...1, , 57.66 6153 49.431 75.07 13.1.) 1 4.3.41 01.11 1.1,75 1 In.37 I n■ ,4, n. a -11..3 'r.lF, 3 Sec. 22 -2 — Return investment policy for Buccaneer plant The additional rates charged by the Buccaneer systems to customers outside the city pursuant to section 22 -27(2) for water and section 22- 167(b) for sewer shall be considered a return on investment, and such return on investment shall be contributed to the general fund of the city unless a lesser amount of transfer is budgeted on an annual basis. S600,ouo Sono600 Transfers to General Fund vs Surcharge 1 FYwcs Illir 11 UPI I I prpr 111 111 1 1 1 1 1 o6 FY 2007 FY ao06 FYaaog FYaato FY Ion FY mil FYsaq FYaaµ FY. am; 4 16 14 12 10 8 6 4 2 0 cZ) MI\ .'�, . +`3 NC' <1 Nb � 25 if �. `�• cs <4 4 4 4 4 4 k 4 4 k 4 4 4 Public Utilities EMI Personnel Services =Transfers =Operating Expenses ImCapltal Outlay =debt Service - #Revenues 5 ATTACI IMENT C City of Atlantic Beach FY 2014 Budget Workshop Revenue and Tax Information Total 2014 General Fund Proposed Revenues • Ad Valorem Taxes fIntergovernmental in Fines and Forfeitures to Miscellaneous • Licenses and Permits • Interfund Transfers • Charges for Services ■ Utility, Communications & Business Taxes 1 a,r,00,000,06; :' 1999 2000,2001 °2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year • New Construction Personal Property Real Property t5,00U000 70,000,0012 15,000,000 8 /0,000,900 5,1240;0011 Atlantic Beach Taxable Property Values 4,999 2000 21701 2062' 2003 2004 2005 2005 2007 2000 2009 2010 2011 2012 2013 Flsca l 4rvr 1 Now Construction 2 ,, 3,000 2,500 2,000 1,500 1,000 500 Ad A ; ? :n0{ln'.`. Il; „ill: $2,332 $1,980 to $1,793 111 ■ $1,674 $1,663 SG -. ,_.56 17 86 6u 1,207 2006 2007 2008 2009 2010 2011 2012 2013 ow Exemptions 1 fnmrstead Exemption homestead Exemption 11 Httmrsiead Exemption far Elderly s Save Our Homes Cap Value Taxable Value Just Value CITY OF ATLANTIC BEACH Office of the Property Appraiser Final 2013 Miliages Water Management District. 2.57% AtlaotiC Beach 17.22% School Board 38.23% Florida Inland Navigation 0.78 °J 3 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 0,500 0.000 City of Atlantic Beach Multi Year Operating Millages 2007 2008 2009 2010 2011 2012 2013 Neptune Beach •Atlantic Beach Jacksonville Beach 1 1 21.5000 21.0000 20.5000 20.0000 19.5000 19.0000 18,5000 18.0000 CITY OF ATLANTIC BEACH 2013 Total Proposed Millages Jacksonville Mantic Beach Neptune beach Jax Beach Town Of Baldwin 4 14,00;000 12,000,000 10,000,000 `" 0,000,000 0,000,000 4,000,000 7,000,000 0 General Fund Total Revenues by Type and Total Expenses • 9 9 4 i • AP MECUM TAMES TA0F5 AN 0 MAN FHISE FEES W PERMITS ELLS A N0 ASSF 4ME NTS INTER00144RNMEHTAERFYFN0E5. CHARGES FOR SERVICES F INISANPFORFFNPRES MISCEI1,0M MS A MEWLS INI ERFUNPTRANSFERS - 40040510 General Fund 4 2 0 hR pry hna 414 h4} ftA h03 O , h rjr =Personnel Services mg Operating =Capital =Transfers -6- Revenues 5 ATTACHMENT D Upgrade to New Enterprise Applicati n SunGarcfs One Solution current nt S of :w ,r SunGard's HTE In use since 1993 uil,fw., `.un6•.d. 6.1.01 Varsim 9.0.1 cunc.rs rpp1tt•1144114 H.nu p V,.,C1n4 Gerrit, 3 C..n ..1.1,11 . Flom:. n.. .e. 1 6Pld Inrcz.ntln:,I 40 111.410.4.4 4.1l00.4 11 10441,4 1.rrl.u.n.1 nn 1,9. uli 0.1.c11c Add New Capablillit Greater Flexibility.... 2 More Information u l., p Year li r One Time Capital Cons One 5nlu ;Inn s;ammunI1y ASP O695aiu than @Inanclals ASP One50luSi0n USHky OIIEIng ASP 1010/15 2015/1fi 2016/17 $211,1de Recurring 08315 $764,1306 $172,614 $176,843 mn ATTACHMENT E - A. Review of Building, Code Enforcement and Planning and Zoning Departments 2013/14 • This is to show activities of the Building Department associated with enforcement of the Florida. Building Code related to expenditures and revenue. Enterprise Fund Concept • Building Department permit fees pay for the activities related to enforcement of the Florida Building Code. By Florida law permit fees may only cover building code enforcement activities. • Floodplain management, housing code enforcement and zoning code activities are not to be funded with building permit fees. • The Building Department has been supported by the General Fund related to other non- building code activities. 1 2013/14 Budget Projection • Anticipated Revenues: $281,55o • Anticipated Expenses: $261,939 V. �Y�l Nll Vt+ 4ldYft flti' 1LT6' 7HXf tdJ lllH ".uu:xn+•;+r.rai_...rr.,. �. Construction Value in Atlantic Beach 25,000,000 20,000,000 - 15,000,000 10,000,000 5,000,000 - T' 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 201'd un m Construction value $13,176,637 511,48465,1 16,4x2,374 $22,566,505 $ 22,855,602 S 21,452,889 of Permits in Atlantic Beach 2 Building Department Expenditures and Revenue 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2009 2010 2011 2012 2013 2014 lima Expenditures 291,103 288,070 296,332 "*.752 2(2,870 262,435 Gen. Fund a 58,000 60,1}00'+1' o, • 31,0oo 0 Revel ate 200,583 217,166 243,563 284,792 266,925 281,554 • Expenditures • Gen. Fund • Revenue Y+ fb' fu11Cr: LScr :r::ifiti: +��mmul�. =r,-r -- -- , Building Department Permits and inspections 600o 5000 — 4000 300o 2000 - 1000 0— 2009 2010 2011 2012 2013 2014 200q 2010 2011 Permits Issued 1756 2064 2031 2799 2359 2789 Number of Inspections 3335 4006 3916 4751 4250 • Permits issued • Inspections 45.52 3 The Building Department is operating with one Building Official, one Building Inspector /Plan Reviewer and two administrative personnel, The Building Department should anticipate operating at nearly the same level of activity as recent years with a slight increase. The department provides administrative support to Personnel, Finance, City Administration and the Development Review process. Code Enforcement rw: =t W eriax unmrrrn • ode Enforc nt eer Full Tint 0 hours weal Start up cost Salary 37,000 Benefits 10,516 Vehicle 18,000 Computer 2,000 Desk /equip 1200 printer 400 uniforms 200 gasoline 300 insurance 200 $ 48,216.00 Annual cost $ 21,600.00 Additional cost to start $ 6g,816.0o Total cost to start • Cade Enforeernent Officer Part T irne (20 boor's weekl • Start up cost Salary 18,500 Benefits 2,562 Vehicle 18,000 Computer 2,000 Desk /equip, 1200 Printer 400 uniforms 200 gasoline 300 insurance 200 • $ 21,762.00 Annual cost • $ 21,600.00 Additional cost to start • $ 43,362.00 Total cost to start • Total average monthly complaints 125 average monthly case load 125 4 Royal Palms and Mayport Corridor Property Survey Results Date of survey March 2009 July 2011 July 2012 July 2013 Deferred maintenance needs paint and repairs 45 50 18 2 Junk vehicle, overgrown trash, debris, damaged fencing 203 69 66 34 Major dilapidation, broken windows, exposed framing 30 2 3 1 Total in violation 278 121 87 37 lY.'L3':rJ4`•l: " IGY3 ':Y(J:. "`.�tM1Y:VlfG'i�cxaou�. Mayport Road Redevelopment • Currently working with FDOT on potential beautification projects along Mayport Road • Mural or rnosiac at Mayport Road and Atlantic Overpass • FDOT has a statewide matching beautification grant that could help cover the cost of a mural - FDOT's District office also has money to spend on beautification projects. The coordinator is interested in working with COAB on projects 5 Mayport Road Redevelopment Will be working with partners to designate ALA as a "Florida Scenic Highway" from Jax Beach to Fernandina. Met with Florida Department of Economic Opportunity and they are very interested in using Atlantic Beach as a pilot program for a major statewide economic development initiative. - Will work with COJ and Jax Chamber on possible incentives over the next year. ATTACHMENT F Atlantic Beach Debt Debt Oustanding 9/30/2012 Public Storm Water General Total Issue Issuer Utilities Utility Government Outstanding 1999 Sun Trust $ 171,065 $ 136,914 $ 307,979 2004 Revenue Bonds $ 13,130,955 $ 2,134,047 $ 15,265,002 2010 Revenue Bonds $ 855,290 $ 855,290 2010 Revenue Bonds $ 563,932 $ 91,650 $ 655,582 2010 FDEP $ 721,894 $ 721,894 2012 FDEP $ 7,561,361 $ 7,561,361 23,004,496 2,225,698 136,914 $ 25,367,108 Budgeted Debt Payments 2014 Proposed Public Storm Water General Total Issue Issuer Utilities Utility Government Payments 1999 Sun Trust $ 88,290 $ 70,655 $ 158,945 2004 Revenue Bonds $ 1,247,168 $ 202,690 $ 1,449,858 2010 Revenue Bonds $ 77,900 $ 77,900 2010 Revenue Bonds $ 53,181 $ 8,644 $ 61,825 2010 FDEP $ 49,880 $ 49,880 2012 FDEP $ 650,360 $ 650,360 2,166, 779 211,334 70,655 2,448,768 MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBERS ON TUESDAY, AUGUST 13, 2013 AT 5:00 PM. City Commission Members present: Mike Borno, Mayor Maria Mark, Mayor Pro Tem Mark Beckenbach, Commissioner Jonathan Daugherty, Commissioner Carolyn Woods, Commissioner Staff present: Jim Hanson, City Manager Nelson Van Liere, Finance Director Donna Kaluzniak, Public Utilities Director Rick Carper, Public Works Director Mike Classey, Police Chief Keith Randich, Information Technology Director Sue Danhauser, Human Resource Director Donna L. Bartle, City Clerk The meeting was called to order at 5:00 p.m. by Mayor Borno. Health Care Reform update Brooks Faison of Harden and Associates, gave an update on Health Care Reform. He explained there are no maximum out -of- pocket limitations now with your health insurance, meaning employers can eliminate those if they chose to for 2014; the City is compliant in all aspects of the Health Care Reform legislation including the plans, the out -of- pocket limitations (if there were some), and the maximum employee premium allowed which is no more than 9 1/2 % of the employees gross annual income; the only thing that will impact the employees in 2014 is the Federal Exchange Option; the State of Florida does not participate in a state exchange; we will have a federal exchange. He reported that notices will be sent out to the employees by October 1st and he read the language contained in the notices. He stated that because the City of Atlantic Beach offers employer- offered coverage and meets all the requirements, an employee cannot leave the City's plan and receive a subsidy. He reported the employee- mandate portion, which includes the requirement for everyone in the United States to have health insurance coverage, will take effect January 1, 2014, but the employer- mandate portion, which includes the requirement to offer coverage or pay a penalty, will not start until January 1, 2015. He reported the taxes and mandates in the legislation will affect the City's health insurance rates with an increase between three to five percent. He stated the employer- mandate portion beginning in 2015 pertains to employees working 30 hours or more. He and Human Resource Director Sue Danhauser answered questions from the Commission. He distributed handouts containing the details on what he summarized (which are attached and made part of this Official Record as Attachment A). Police (Handout: Atlantic Beach Police Department, which is attached and made part of this Official Record as Attachment B) Police Chief Mike Classey referred to the handout and explained the Police Department personnel, reporting the FY 2014 budget authorizes 28 officers assigned to divisions such as Patrol, which includes community- oriented policing (COPs); General Investigations and Crime Suppression Unit; and also authorizes 15 total civilian staff, including three which are part-time, assigned to divisions such as Emergency Dispatch, Records, including property and evidence, Animal Control, and School Crossing Guards. Minutes — City Commission Workshop August 13, 2013 Page 2 Fire/Rescue Chief Classey explained the Fire /Rescue Services stating our fire services have been provided by the City of Jacksonville Fire and Rescue (JFRD) by contract since 1999. He gave a history of the cost and answered questions from the Commission. Lifeguards Chief Classey reported on lifeguards noting that the lifeguard season covers April through September and the City of Jacksonville contributes $170,779 for personnel and operating expenses per the Interlocal Agreement. He explained the FY 2014 personnel and operating expenses will be $203,354. He answered questions and explained the Junior Lifeguard program was not being proposed for the next budget year for a number of reasons. Pedestrian/Bike Safety Chief Classey reported on Pedestrian/Bike Safety which was the Commission's number 3 priority identified in strategic planning. He gave an overview of the study completed by the Police Department. He reported the status of projects aimed to improve pedestrian and bike safety and answered questions from the Commission. Citizen Police Academy Chief Classey explained the Citizen Police Academy is a discretionary project; it is an 8 -12 week program that meets one evening per week (2 -3 hours) and one Saturday during the program; the program educates local residents about a variety of topics including: Communications, Investigations, Traffic/DUI, Patrol, Crime Prevention, Firearms, and Defensive Tactics /Taser/Pepper Spray; the program promotes open lines of communication between citizens and police officers helping local residents better understand police work in Atlantic Beach; and it's a great opportunity for the police to inform the public of what we do, the challenges we face, and to obtain citizen input, assistance and support throughout the community. He reported the cost to run the program is approximately $10,000 and forfeiture funds can be used. He answered questions from the Commission. Police Rental Space Chief Classey explained, because there is a need for additional space in the Police Building, he is requesting money to be added to the budget to rent a commercial space for a Sergeant and four Detectives to move their operations to. He explained it would be a temporary, limited solution. He explained his proposal for a 500 s.f. building and reported the estimated costs. The initial setup will cost $13,750 for switching, wiring, internet cabling, firewall, electrical, alarm and phones; and the annual cost will be $26,600 for rent, internet, phone, utilities and alarm. He answered questions from the Commission as they offered other ideas. FY 2013 -14 Grants Chief Classey reported the only grant we received this year was the JAG grant totally $81,205 which included salaries for one full -time COPs officer and one full -time Crime Suppression Unit (CSU) Detective. Police Special Revenue Funds Chief Classey explained Police Training Funds are restricted funds from a surcharge on traffic citations dedicated for police training and the fund balance exceeds $120,000. He explained the Radio Communications Fund is a restricted fund to be used for radio airtime, laptop airtime, or other related emergency communications expenses and makes up 22% of the total communications budget. Minutes — City Commission Workshop August 13, 2013 Page 3 Forfeiture Funds Chief Classey explained Forfeiture Funds stating the seized money usually comes from drug cases. He indicated the fund balance is about $35,000; revenue is very difficult to budget for; and all forfeiture expenditures go to the Commission for approval. He answered questions from the Commission regarding crime, staffing, shifts and case loads. He explained the accreditation process, the advantages for having accreditation and his experience with it. Mr. Hanson expressed his opinion on accreditation. There was a discussion about the possibility of adding new office space for the Police Detectives at the Jordan Park Community Center. Commissioner Daugherty asked that this be put on the agenda for the workshop on August 26, 2013 to further discuss it. Human Resources (Handout: Human Resources, which is attached and made part of this Official Record as Attachment C) General Insurance Human Resource Director Sue Danhauser explained General Insurance, also known as Property & Liability Insurance, includes Automobile, Property, General Liability, Fiduciary, Police Statutory, Pollution and Environmental and Workers Compensation. She stated the current year cost was about $517,000 and the budget for next year is approximately $509,000, noting the final renewal numbers will be available for the August 26, 2013 workshop. She reported the need for Flood insurance since FEMA has redone the flood maps and some of the City's essential buildings, such as the Commission Chamber and City Hall, are now in a Flood Zone Area. She believes that even with adding the extra insurance, it should stay under budget. Employee Compensation Ms. Danhauser explained compensation includes salary and benefits and reminded the Commission that one of the top priorities in the strategic plan was to look at our recruitment and retention. She referred to and explained the graph showing employee turnover, noting that we have to keep an eye on it since we recently made benefit reductions in pension, personal leave, and longevity which could affect the future. She reported the last pay increase was in 2008 and the estimated inflation from that time to now is 8.5 %. Commissioner Woods questioned the high number since the numbers from the past were very low. Ms. Danhauser explained the number used in the past was the Consumer Price Index (CPI) and she does not recommend using it. Commissioner Woods stated she would like to know what the CPI is and Ms. Danhauser agreed to look it up and report back to the Commission. Review cost of pay plan recommendations Ms. Danhauser reported on the Pay Study Recommendations, explaining there were several steps in the recommendation. She explained in the first step they looked at everyone's position and where they fell in the pay grades; if someone moved up a pay grade and their salary fell in that range, there was no adjustment; and just to do step one, it only involves four people that would get a pay increase. She stated the two non -union employees that, if implemented, would get the pay adjustments are the Records Clerk in the City Clerk's office and the Police Evidence Technician; the other two are in the union and cannot be reported to the Commission until they hold a shade meeting. She reported that step one would cost $15,400 to implement. Step two was done to alleviate pay compression caused by not having pay increases in five years. Many are bundled up and paid at entry level. What they came up with is to do a flat dollar amount for years in the position from one year up through the five years that we haven't had increases. She answered questions from the Commission and reported the total cost for steps one and two is $96,800. She explained step three is to restart the merit program which is based on midpoint. She explained that for a 1% increase, the employees who are at midpoint or below would get more than 1% since they are not at midpoint, but the employees over midpoint would get less than 1%. She was questioned why a merit Minutes — City Commission Workshop Page 4 increase was being recommended rather than a COLA and she explained the merit is based on pay for performance instead of across the board. Discussion ensued. She and Mr. Hanson referred to the slide showing the total costs while they explained the impact on the General Fund. She explained the last recommendation is for the employees who are at the maximum of their pay grade. She stated our policy now says they do not get any increases once they've hit the maximum and if we implement this. She stated we do have ten employees who are at or over maximum; they were allowed to go over maximum when we put the longevity in their pay, which was a one -time exception. She stated the recommendation is to do something for them to still acknowledge their job performance by awarding a one -time bonus equal to the amount of the merit earned. August 13, 2013 Ms. Danhauser explained Employee Benefits. The City - funded benefits include medical coverage, wellness program, life insurance and employee assistance program. The other benefits are all voluntary, meaning the employee pays 100% of the costs. They include dental, vision, supplemental life, short-term and long -term disability, flexible spending account and 457 deferred compensation. She referred to the chart titled City Expense for Medical as she explained the history and the trends. Mr. Hanson and Ms. Danhauser answered questions regarding compensation and benefits. Supplementary List of Projects (Handout: Supplemental List of Projects Not Included in Budget, which is attached and made part of this Official Record as Attachment D) Mr. Hanson distributed a revised Supplemental List of Projects Not Included in Budget, pointing out that the changes since the initial one are in red. He referred to the list as he reported costs and funding options for the various items and answered questions from the Commission. The Commission had a lengthy discussion on pay and benefits and where they can take money from to pay for the proposed pay plan adjustments recommended by the consultants. They discussed the General Fund (page 107) and the Half Cent Sales Tax (page 116) as funding options by moving $82,000 of resurfacing budget to the Half Cent Sales Tax Fund, then transferring $163,857 from Gas Tax Fund to the General Fund to pay for the pay increases. (Commissioner Daugherty left the meeting at 7:51 p.m. and returned at 7:53 p.m.) (Commissioner Beckenbach left the meeting for 30 seconds at 7:53 p.m.) Consensus: Take half of the cost out of the Half Cent Sales Tax and the other half out of the General Fund in order to implement the pay plan adjustments suggested by the consultants using the 2% merit pay option. The Commission went through each item on the list to decide whether or not to add them to the proposed budget. There was a consensus to add money to the proposed budget for the following items: 1. Pay Plan Adjustments recommended by the consultants: Steps 1, 2 and 2% merit - $ 217,500 2. Welcome Signs; Various locations - $ 11,000 3. Mayport Road Landscape Matching Program - $6,500 4. Police Citizens Academy - $7,500 5. Rental Space for Detectives - $ 40,350 6. Robert Street Ditch Improvements - $ 50,000 (for matching funds with FDOT) 7. Expansion of Kennel - $ 40,000 8. Bull Park Gazebo - $ 40,000 9. Sound System Improvements for Commission Chambers and other locations - $ 15,500 10. East Coast Drive Streetscape - $ 79,000 11. Seminole Road streetscape project - $ 250,000 Minutes — City Commission Workshop August 13, 2013 Page 5 12. Fountain Project on Mayport Road - $ 5,000 13. Rose Park Playground Equipment - $ 40,000 (After the meeting, a table was prepared in order to show the thirteen adjustments to the proposed budget, which is attached and made part of this Official Record as Attachment E). There was discussion about changing the $50,000 in the proposed budget for the Parks Master Plan to use for a Community Visioning project which would cover Parks as one of the topics. The consensus was to leave the $50,000 in the budget, but decide which project to use it on at a later time. There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 8:51 p.m. Mike Borno Mayor Donna L. Bartle, CMC City Clerk ATTACHMENT A CITY OF ATLANTIC BEACH Health Care Reform Highlights Patient Protection and Affordable Care Act (PPACA) • PPACA Employer shared responsibilities provisions, "Pay or Play ", have been delayed until 2015. <° Individual mandate Is still effective 14 -2014; individuals must have health insurance or pay penalties. • Current City of Atlantic Beach medical plan options meet PPACA defined minimum coverage requirements, as well as employer contribution levels to prevent granting of subsidies on Exchange (cost cannot exceed 9.5% of employee annual income). 6¢4 Health Insurance Exchange, referred to as "Marketplace", will be available 10 -1 -13 for 1 -1 -14 enrollment (Federal Exchange in Florida). • Carriers and third parties are creating "private" Exchanges that will be available to employer groups for health option coverage; these are expected to include multiple plan options, on -line enrollment, and decision- making support tools. • Employer (City of Atlantic Beach) must send notice to all employees by 10 -1 -13 of availability of the Exchange. • Effective 1 -1 -14, employee waiting period for coverage Is limited to 90 days. • Effective 1 -1 -14, no pre - existing exclusions are allowed for any individual; guaranteed Issue and renewability are required. Several PPACA fees are being implemented in 2014 — PC0131 ($1 per member per year), Reinsurance ($63 per member per year) and Health Insurance Provider Fee (1.9 — 2.3 %); these will be paid on your behalf, but are Included in your health plan premiums (estimated by Florida Blue at 3 -5 %). °) Individuals applying for subsidies will have to complete lengthy applications; application process requires family members to be listed, and family members are always tied to the Individual to determine income eligibility for federal subsidy (400% of poverty level). • City of Atlantic Beach will be required to extend health Insurance options to all employees who work 30 hours or more in 2015; City of Atlantic Beach should begin tracking that eligibility now to manage a 12 month look back period. o) Automatic enrollment for employers with 200+ employees and non - discrimination requirements are pending; effective date has not been determined, but should be anticipated and expected by the employer. ono April 13, n13 i.Iiilryj Health Care Reform LEGISLATIVE BRIEF Brought to you by Harden IRS Guidance on 1l)eiay dni' Employer 1@I'tLd md ate ]{ enaRiies and Reporting Requirements On July 9, 2013, the Internal Revenue Service (IRS) Issued Notice 2013 -45 to provide formal guidance on the delay of the Affordable Care Act (ACA) Iarge employer "pay or play" rules and related Information reporting requirements. The provisions affected by the delay are • 5 4980H employer shared responsibility provisions; • 5 6055 Information reporting requirements for Insurers, self- Insuring employers and certain other providers of minimum essential coverage; and o § 6056 Information reporting requirements for applicable Iarge employers. For 2014, compliance with the Information reporting rules Is completely optional and the IRS will not assess penalties under the pay or play rules. Both the Information 'courting and the employer pay or play requirements will be rarity effective for 2015. INFORMATION REPORTING REQUIREMENTS The ACA amended the Internal Revenue Code (Code) to require Iarge employers, health Insurance Issuers and self - funded plan sponsors to report Information about health plan coverage to the IRS so that the federal government can enforce the employer mandate. Code § 6055 requires annual Information reporting by health Insurance issuers, self - insuring employers, government agencies and other providers of health coverage. Code § 6056 requires annual Information reporting by applicable large employers related to the health coverage that the employer offers (or does not offer) to Its full -time employees. EMPLOYER SHARED RESPONSIBILITY REQUIREMENTS Under the ACA, Iarge employers that do not offer their full -time employees (and dependents) health coverage that Is affordable and provides minimum value may be subject to penalties, The ACA's employer mandate provisions are also referred to as the employer shared responsibility or pay or play rules. ONE -YEAR IMPLEMENTATION DELAY The large employer pay or play rules and related reporting requirements were set to take effect in 2014. However, on July 2, 2013, the Treasury announced that these will be delayed for one year, until 2015. This means that: • Information reporting under §§ 6055 and 6056 will be optional for 2014 and no penalties will be applied for failure to comply with these requirements for 2014; and • No employer shared responsibility payments will be assessed for 2014. However, both the Information reporting and the employer pay or play requirements will be fully effective for 2015. i 1[1[ S. Guidance 0 10 Delay of( i 1 p oyes PoD.aftir., iiilu it Reporting TactluubEcJtru >lu ts The IRS issued Notice 2013 -4S to provide more information on the delay. According to the IRS, the delay of the reporting requirements provides additional time for input from employers and other reporting entitles In an effort to simplify these requirements, consistent with effective implementation of the ACA, This delay Is also Intended to provide employers, Insurers and other providers of minimum essential coverage time to adapt their health coverage and reporting systems. The delay of the employer mandate penalties was required because of Issues related to the reporting requirements. Because the reporting rules were delayed, the Treasury believed It would be nearly Impossible to determine which employers owed penalties under the shared responsibility provisions. The pay or play regulations Issued earlier this year left many unanswered questions for employers. The IRS highlighted several areas where It would be Issuing more guidance. Presumably, the additional time will give the IRS and Treasury the opportunity to provide more comprehensive guidance or4 implementing these requirements. Effect on Other ACA Provisions The delay does not affect any other provision of the ACA, including individuals' access to premium tax credits For coverage through an Exchange and the Individual mandate. Individuals will continue to be eligible for the premium tax credit to purchase coverage through an Exchange as long as they meet the eligibility requirements (for example, their household Income Is within a specified range and they are not eligible for other minimum essential coverage). Future Guidance Proposed rules for the Information reporting provisions are expected to be published this summer. The proposed rules will reflect the fact that transition relief will be provided for the information reporting requirements. It is still unclear how the new deadline will impact guidance that has already been Issued, such as the transition relief for non - calendar year plans and the optional safe harbor For determining Full -time status. Future guidance may affect these and other rules under the ACA. WHAT THIS MEANS FOR EMPLOYERS The Obama Administration's decision to delay the employer mandate penalties and related reporting requirements will have a significant effect on many employers. See below for an overview of the ACA provisions that are affected by the delay, the provisions that are not affected by the delay and steps that employers are encouraged to take In 2014 ri Or 2014, the IRS is cow-aging employers to voluntarily' a Comply with the Information reporting requirements once the IRS Issues information reporting rules (which are expected this summer) Y maintain or expand health coverage to prepare for when the employer pay or play rules become effective In 2015 This Legislative Brief Is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice, 1 2013 Zywave, Inc. Ail rights reserved. EM 7/13 2 IRS Guidance OH Delay ()Tile,' 3ployeir 1rl'1[ uullit to l)onallites and Re11 r rt/ ri ; Regtniil lib ents 1 I'.-11/,V(1:1�? Information Reporting Requirements The following employers will not have to report on coverage they provide Large employers with at least 50 full -time employees, Including full - time equivalents (FTEs) Employers with self - insured health plans Pay or Play Requirements Employers will not be required to: Consider whether they employ on average 50 or more full -time employees, Including FTEs, on business days during the previous calendar year Count employees` hours to determine whether they average 30 or more hours per week Offer minimum essential coverage to substantially all full -time employees and dependents Offer coverage to employees who average 30 or more hours per week Offer coverage that is of minimum value Offer coverage that is affordable ! LO)i' = 1i1:.1vonn Current Provisions Prohibition on pre - existing condition exclusions (PCEs) for children Small business tax credit Appeals process and external review rules Lifetime limits prohibited Required coverage of preventive care services Patient protections Over- the - counter drug reimbursement limits Rescissions prohibition PCORI fees Health FSA limits Additional Medicare tax for high -wage earners Uniform summary of benefits and coverage W -2 reporting Dependent coverage up to age 26 Medical loss ratio rules Increased tax on withdrawals from HSAs and Archer MSAs Future Provisions Subsidies for low - Income individuals for Exchange coverage Individual mandate Establishment of Exchanges Limits on cost - sharing New requirements for wellness programs Annual limits prohibited Employee notice of Exchanges Rating restrictions Health insurance provider fee and reinsurance fee Guaranteed Issue and renewability 90 -day waiting period limit Comprehensive benefits coverage Prohibition on ail PCEs Coverage for clinical trial participants Cadillac tax Automatic enrollment for employers with 200+ employees and nondiscrimination rules for fully- insured plans (effective dates TIM, but not affected by this delay) This legislative Brief is not Intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. 0 2013 Zywaver Inc. All rights reserved. EM 7/13 .3 (01 111111 ft Ili 6'l'ir-; rinfiWr6 'foitip-hn Brought to you by Harden l (c,a"c)hi) It jL:(c..iit ilL /rfliIIr\VA� -. I[10ft_l- 2,,011 Coil ]pl bIllitee ' }hi d°l°, di ii: fort. City of Atlantic I3e2d11ri The Affordable Care Act (ACA), which was signed into law In March 2010, put in place comprehensive health coverage reforms with effective dates spread out over a period of four years and beyond. Some of ACA's reforms are already in effect For employers and their group health plans, such as the Form W -2 reporting requirement for large employers and the requirement for non - grandfathered health plans to cover certain preventive care services without cost - sharing. Many of ACA's key reforms will become effective In 2014. Key ACA reforms that will affect employers In 2014 include health plan design changes, increased wellness program incentives, a new reinsurance fee, the employer "pay or play" mandate and additional reporting requirements. To prepare for this next phase of ACA reforms, employers should review upcoming requirements and make sure they have a compliance strategy in place. This Legislative Brief provides a health care reform compliance checklist for 2014, Please contact Harden for assistance or If you have questions about changes that were required In previous years. PLAN DESIGN CHANGES Grandfathered Plan Status A grandfathered plan is one that was In existence when health care reform was enacted on March 23, 2010. If you make certain changes to your plan that go beyond permitted guidelines, your plan Is no longer grandfathered. Contact Harden If you have questions about changes you have made, or are considering making, to your plan. ❑ if you have a grandfathered plan, determine whether It will maintain its grandfathered status for the 2014 plan year, Grandfathered plans are exempt from some of ACA's mandates. A grandfathered plan's status will affect its compliance obligations from year to year. Not e._ • If you move to a non- grandfathered plan, confirm that the plan has all of the additional patient rights and benefits required by ACA. This includes, for example, coverage of preventive care without cost- sharing requirements, City ofj tlarltic Beach is a non-et/war/fathered plan. This LW /Um effective for City of d t . ijtic Beach's 01 O 20 4 O i en Enroll vie Annual Limits Effective for plan years beginning on or after Jan. 1, 2014, health plans are prohibited from placing annual limits on essential health benefits. (ACA's prohibition on annual limits was phased in over a three -year period; restricted annual limits were permitted for plan years beginning before Jan. 1, 2014.) ❑ Confirm that no annual limit will be placed on essential health benefits for the 2014 plan year and beyond. This will be effective for City of Atlantic Beach's 0:1/0A/2014 O,j n Enrollment•. Tf,ern a,1r_►aO annual limits on current Plans. , 1 2,1111.4 ci Allirllpllii 11l,lic:r,: Pre - existing Condition Exclusions Effective for plan year beginning on or after Jan. 1, 2014, ACA prohibits health plans from Imposing pre - existing condition exclusions (PCEs) on any enrollees. PCEs for enrollees under 19 years of age were eliminated by ACA for plan years beginning on or after Sept. 23, 2010. ❑ Confirm that PCEs will not be Imposed on any enrollees for the 2014 plan year and beyond, Ti;i will he effective for City of iltlantic Beach's 01/0112014 Open Enrollment. Dependent Coverage to Age 26 Effective for plan years beginning on or after Sept, 23, 2010, ACA requires health plans that provide dependent coverage of children to make coverage available for adult children up to age 26. However, for plan years beginning before Jan. 1, 2014, grandfathered plans were not required to cover adult children under age 26 If they were eligible for other employer - sponsored group health coverage. • If your plan is grandfathered, confirm that It will make coverage available to adult children up to age 26 regardless of whether they are eligible for other employer - sponsored group health coverage, effective for the 2014 plan year and beyond, Tlg will be effective for City of Atlantic Reach's 0;2/0V12014 C1en mural! ent. Current' y edical alai s c er to a r , 6 Excessive Wafting Periods Effective for plan years beginning on or after Jan. 1, 2014, a health plan may not Impose a waiting period that exceeds 90 days. A waiting period Is the period of time that must pass before coverage for an employee or dependent who is otherwise eligible to enroll In the plan becomes effective. Other conditions for eligibility are permissible, as long as they are not designed to avoid compliance with the 90 -day waiting period limit. O If your plan has a waiting period for coverage, confirm that the waiting period is 90 days or less for the 2014 plan year and beyond. r cis will be eff ctive for rsit o Atlantic Bead is Oh/01,12014 Oven ! ►ar_one:eat. Current waftirj period is compliant. Coverage for Clinical Trial Participants Effective for plan years beginning on or after Jan, 1, 2014, non - grandfathered health plans cannot terminate coverage because an individual chooses to participate In a clinical trial for cancer or other Ilfe- threatening diseases or deny coverage for routine care that would otherwise be provided just because an Individual is enrolled in a clinical trial. n For the 2014 plan year and beyond, confirm that plan terms and operations will not discriminate against participants who participate In clinical trials. 'Ibis. 111,e effe .five for Cit of ill : 71 'rr beach's 01/O .1/2014 Open Enrollment. Limits on Cost- sharing Effective for plan years beginning on or after Jan. 1, 2014, non - grandfathered health plans are subject to limits on cost - sharing or out -of- pocket costs, Out -of- pocket expenses may not exceed the amount applicable to coverage related to HSAs. deductibles may not exceed $2,000 (single coverage) or $4,000 (family coverage). These amounts are Indexed for subsequent years. Final guidance on this requirement provides that the deductible requirement will apply only to plans In the insured small group market, while the out -of- pocket cost limit will apply to all non - grandfathered health plans (Including self- Insured plans and plans and issuers In the large group market): This Legislative Brief Is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. 2013 Zywave, Inc. All rights reserved. EEM 4/13 7,010.4 (Compliance Checkii st U Review your plan's limits on cost - sharing to make sure they comply with ACA's limits on cost - sharing, effective for the 2014 plan year Vila trill 1,r. _('oe (v? for rliiv of Atlantic Beach's 91,101/ 2014 Operr grwo(Ijnent., Comprehensive Benefits Package Starting in 2014, Insured plans in the individual and small group market must cover each of the essential benefits categories listed under ACA. This requirement does not apply to grandfathered plans, self- funded plans or insured plans In the large group market. CI If you have an insured plan subject to ACA's comprehensive benefits package mandate, confirm with the health Insurance Issuer that the plan will cover the essential health benefits package, effective for the 2014 plan year. This will be effective For City of /)ijla,itic !leach's 01/01 /2O1 S ()perr 1=trrnlhrtent. WELLNESS PROGRAM INCENTIVES Under current law, the reward under a health - contingent wellness program Is limited to 20 percent of the cost coverage. Health - contingent wellness programs require individuals to satisfy a standard related to a health factor In order to obtain a reward (for example, not smoking, attaining certain results on blometric screenings or meeting exercise targets). For 2014 plan years, the maximum permissible reward Increases to 30 percent of the cost of coverage, In addition, proposed regulations would increase the maximum permissible reward to 50 percent of the cost of health coverage for programs designed to prevent or reduce tobacco use. More guidance is expected on the reforms for wellness programs. El For a health- contingent wellness program, confirm the program complies with current law and consider whether to Increase the reward h 2014. This wi 1 e effective or C t of A tic Beac is 0 h 2O 4 O. en E wollr e r` C n t el a ess Incen 1 es e a 17 1 ce. REINSURANCE FEES Health insurance Issuers and self- funded group health plans must pay fees to a transitional reinsurance program for the first three years of health Insurance exchange operation (2014 - 2016), The fees will be used to help stabilize premiums for coverage In the individual market. Fully Insured plan sponsors do not have to pay the fee directly. Certain types of coverage are excluded from the reinsurance fees, Including HRAs that are integrated with major medical coverage, HSAs, health FSAs and coverage that consists solely of excepted benefits under HIPAA (such as stand -alone vision and dental coverage). The reinsurance program's fees will be based on a national contribution rate, which HHS will announce annually. For 2014, HHS has proposed a national contribution rate of $5.25 per month ($63 per year), The reinsurance fee Is calculated by multiplying the average number of covered lives by the national contribution rate. Additional guidance is expected to be Issued on this fee requirement, © Review the health coverage you provide to your employees to determine the plan(s) subject to the reinsurance fees, city of lltratZfic Beach is HI I Insured --. fees will be paid by insurance carrier. EMPLOYER "PAY OR PLAY" MANDATE Effective Jan. 1, 2014, employers with 50 or more employees (Including full -time and full -time equivalent employees) that do not offer health coverage to their full -time employees (and dependents) that is affordable and provides This legislative Brief Is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. Q 2013 Zywave, Inc. All rights reserved. EEM 4/13 3 2 O 14 t oiilci<j 111.Pdilta ".i II- e1� minimum value will be subject to penalties if any full -time employee receives a government subsidy for health coverage through an Exchange, The sections of the health care reform law that contain the employer penalty requirements are known as the "shared responsibility" provisions. • The penalty amount for not offering health coverage is up to $2,000 annually for each full -time employee, excluding the first 30 employees. Under proposed IRS regulations, an employer would not be liable for this penalty If it offers coverage to all but 5 percent (or, if greater, five) of its full -time employees and dependents, o Employers who offer health coverage, but whose employees receive tax credits because the coverage Is unaffordable or does not provide minimum value, will be subject to a fine of up to $3,000 annually for each full -time employee receiving a tax credit, with a maximum annual fine of $2,000 per full -time employee (excluding the first 30 employees), The IRS provided safe harbor guidance for employers on determining who is considered a full -time employee (and must be offered coverage), along with how to measure a plan's affordability and how penalties will apply when there is a waiting period for coverage. Guidance has also been Issued on ways to determine a plan's minimum value, including a minimum value calculator, The IRS also proposed transition relief for non - calendar year plans, or fiscal year plans. fl Count the number of your employees to determine If you are a large employer subject to ACA's shared responsibility provisions. City of.4tiontic Repels is considet'etl p Larrle htIa > a1+'eI. El If you are a large employer, take the following additional steps: o Determine whether health coverage is offered to substantially all full -time employees and dependents; o Assess the affordability of the health coverage under one of the IRS' affordability safe harbors (Form W -2, rate of pay or federal poverty line); o Review whether the plan provides minimum value by using one of the three available methods (minimum value calculator, safe harbor checklists or actuarial certification); and o If you have a fiscal year plan, determine If you qualify for the transition relief for plan years beginning in 2013. This If he effccti a for- Cit o f _' i 'lurch'. 0 220J i] 1en Enrollment. REPORTING OF COVERAGE Effective For 2014, ACA requires health Insurance issuers and sponsors of self- Insured plans that provide "minimum essential coverage" to report certain health coverage information to the IRS. A separate IRS reporting requirement will apply to large employers subject to ACA's shared responsibility rules. Large employers will have to report Information on the design and cost of their plans, applicable waiting periods and employees covered by the plan. It is expected that the IRS will use this Information to verify data related to ACA's individual and employer mandates. The first Information returns under these new reporting provisions will be due in 2015. Further guidance on these new reporting requirements is anticipated. 0 In 2015, provide required information regarding plan coverage and participation in accordance with information return requirements. This will he effective for city of fMla tic ilegclr'. 01/0.112D1—;0M, Enrollment. More information Co, thcorninrt, This Legislative Brier is not Intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel For legal advice. 2 013 2ywave, Inc. All rights reserved. EEM 1/13 4 ATLANTIC BEACH POLICE DEPARTM ENT Budget Workshop August 13, 2013 Personnel 1. FY 2014 Authorized for 28 officers 2. Officers are assigned to the following Divisions: A. Patrol — Includes Community Oriented Policing (COPS) S. General Investigations C. Crime Suppression Unit (CSU) ATTACHMENT B 1 Fire /Rescue Services Contract with FRO beginning in 1999 $1,022,318 for ABFD in 1998 First year of contract cost was $742,807 Savings of $279,51 1 3% increase each year Personnel cont. r r w Civilian Staff 11. Fifteen total, 3 of which are part time only 2. Assigned to the following Divisions: A. Emergency Dispatch S. Records (includes property and evidence) C. Animal Control D. School Crossing Guards 2 Lifeguards Seasonal April through September City of Jacksonville will contribute $170,779 for personnel and operating expenses per the Interlocal Agreement: FY 2014 personnel and operating expenses will be $203,354 Pedestrian/Bike Safety Identified in 2012 as the Commission's number 3 priority in strategic planning Study was completed by Police Department and presented last year Accident History Evaluation of intersections Engineering, Education and Enforcement Majority of all accidents occurred at intersections with State Routes FDOT Engineers completed evaluation of intersections and found no deficiencies 3 Pedestrian/Bike Safety cont... Added horizontal striping to crosswalks Cannot add in-street or other lighting at intersection crosswalks Adding signs at intersections I. Conducted two educational campaigns k Limited enforcement and warnings ► YID thru July 201 3 accidents have not decreased from 2012 Citizen Police Academy ► An 8 -12 week program that meets one evening per week (2-3 hours) and one Saturday during the program. Local residents will be taught about a variety of topics, to include: Communications Investigations Traffic /DUI Patrol Crime Prevention Firearms Defensive Tactics /Taxer /Pepper Spray 4 Citizen Police Academy Promotes open lines of communication between citizens and police officers k Local residents better understand police work in Atlantic Beach A great opportunity for the police to inform the public of what we do, the challenges we face, and obtain citizen input, assistance and support throughout the community Approximately $10 000 - forfeiture funds can be used Police Rental Space Need for additional space well documented Temporary, limited solution - doesn't solve problem r Sergeant and 4 Detectives h 500 sf proposed a Cost Initial setup - Si 3,750 switch, wiring, firewall, electrical, alarm and phones Annual - $26,600 rent, internet, phone, utilities and alarm 5 FY 2013-14 Grants Total JAG grant - $81,205 ► One full time COPs officer (salary only) One full time Crime Suppression Unit (CSU) Detective (salary only) Police Special Revenue Funds Police TrainincFund 1. Restricted funding from a surcharge on traffic citations dedicated for police training 2. Fund balance exceeds $120,000 3. Regional Training Funds —Allocated by JSO for the entire region to host classes at academy 4. All training in 2012 -13 was funded by these two restricted accounts 5. No General Fund dollars budgeted in 2313 -14 for police training 6 Special Revenue Funds cont... Radio Communications Fund 1. Restricted funds from a surcharge on traffic citations 2. May be used for the following: A. Radio airtime B. Laptop airtime C. Other related emergency communications expenses 3. Makes up 22% of total communications $87,000 budget ($19,000) Special Revenue Funds cont.. Forfeiture Funds 1. Seized money and other assets that have been used in the commission of a felony crime 2. Most common source is from drug cases 3. Revenue is very difficult to predict 4. Expenditures are very restricted and cannot be used for personnel or other normal operating expenses 7 Atlantic Beach Police Department Questions ? ?? ATTACHMENT C 36 HUMAN RESOURCES Sue Danhauser Director of Human Resources August, 2013 HUMAN RESOURCES GENERAL INSURANCE . EMPLOYEE COMPENSATION PAY • BENEFITS 1 GENERAL INSURANCE • AUTOMOBILE • PROPERTY • LIABILITY • FIDUCIARY • POLICE STATUTORY • POLLUTION / ENVIRONMENTAL • WORKERS' COMPENSATION GENERAL INSURANCE • CURRENT FISCAL YEAR: $ 516,580 • BUDGET 2013/2014: $ 508,908 • RENEWAL: Final numbers 8/26 2 16 COMPENSATION • SALARY • BENEFITS RECRUITMENT/RETENTION •The City will need to monitor the affect of the benefit reductions and starting salaries for recruitment of qualified candidates and retention of staff. 16.006 12.0% 100% 4,0% 2,0% 0,0% Full Time Employee Turnover 15 10.0% 10,244 11,2% 10,2 0.7% ro 2000 2009 2010 2011 2017 2017 3 COMPENSATION Last pay increase for City employees was in 2008. Inflation estimate from 2008 to 2013 - 8.5% PAY STUDY RECOMMENDATIONS: 1. Adjust employees to recommended pay grade — Total Cost: — $15,400 To alleviate pay compression 1 yr - $200 2 yrs - $400 3 yrs - $600 4 yrs -$800 5 yrs - $1,000 Total Cost: « $96,800 (includes Step 1) PAY STUDY RECOMMENDATIONS: 3. Re -start the merit program. Total Costs (includes Step 1 & 2) Merit Total $156,059 $217,452 $278,846 1% 2% 3% Impact on General Fund $117,044 $163,089 $209,135 PAY STUDY RECOMMENDATIONS: % Increase to Payroll Expense 1.6% 2.6% 3.6% 4.6% Step 1 and 2 Step 1, 2 and 1% merit Step 1, 2 and 2% merit Step 1, 2 and 3% merit (1 °lo = — $60,000) 5 PAY STUDY RECOMMENDATIONS: Finally, the study recommends that a pay incentive for employees that are currently at the maximum of their pay range be given, Ex: One time bonus equal to the amount of the merit earned. 31EMPLOYEE BENEFITS 1 CITY FUNDED . Medical Coverage & Wellness Program . Life Insurance & Employee Assistance Program VOLUNTARY . Dental . Vision . Supplemental Life . STD /LTD . Flexible Spending Account . 457 Deferred Compensation HEALTH INSURANCE $900,000 $000,000 $700.000 #000,000 0509,690 #x00,600 #300,000 $200,000 *100.000 $0 City Expense for Medical -1846855 #610;124 Aetna 2000/2009 CIGNA 2009/2010 711,400 CIGNA 2010/2011 CIGNA #009,387 2011/2012 CIGNA/Fla glut 20122013 Fla glue/ 7 2013/2614 0110110 HUMAN RESOURCES COMMENTS ATTACHMENT D Supplemental List of Projects Not Included in Budget 1 Item Capital Cost !Annual Cost 'Notes 8/13/2013 A. Recruitment and Retention of Staff Pay Nan Adjustments per consultant B. Mayport Corridor/ Marsh Oaks Crosswalks; 4 Mayport Rd. locations at signals Additional Code Enforcement Welcome sign Atlantic Blvd. 1% $156,000 2% $217500 Includes pay grade changes, recommended 3% $279,000 compression adjustments and % merit $100,000 $20,000-33,000 $20,600 $23,140-$45,340 $100,000 Welcome Signs; Various Locations $11,000 Art for Atl. Blvd overpass; view from Mayport Rd. $8,000 Mayport Rd. Landscape Matching Program Incentives for Economic Development ? C. Msc. Projects Police Citizens Academy Rental Space for Detectives Grant Writer Contract Roberts St Ditch improvements Expansion of Kennel Generator for Public Works Pave Stewart St Bull Park Gazebo Sound system improvements for Commission Chambers, other locations East Coast Dr. Streetscape Seininole Rd. streetscape project Fountain Project; Mayport Rd. Rose Park playground equipment Russell Park Tennis Court reconstruction $13,750 $100,000 $40,0001 $50,000 $35,000 $40,000 $15,500 $79,000 $250,000 $5,000 $40,000 $0 Proposal from Comm. Daugherty 2005 plan for "Beach Chair" sign from Tat Chan; 50% from CONB? 3 locations; Flyover Median, Dutton Isle Rd. and Flyover Ramp Matching program for businesses to improve $10,000 their landscaping $7,500 $26,600 Yearly contract to handle all grants per $48,000,Langston 5/28/13 Note possibility of FDOT paying for half of this project; $50,000 Not yet determined 1st year cost in overtime; can be paid from forfeiture funds directional speakers and 8 wireless microphones for chambers, plus mobile equipment for other locations. Decorative sidewalks, streetlamps, up electric $300' services; add $300/year for electric cost pervious pavers for parking, decorative Ilstreetlamps, bioswale, ug electric; add $1,500/ $1,500 year electric cost 1Hoffman proposal/ operating expense for power and maintenance. 5K is net of $2,500 contribution by private group; total cap. Cost $1,500$7,500. Over budget for FY13 funds New surface can be included in $100,000 'already in proposed FY 14 budget ATTACHMENT E Amendments Made to Proposed Budget by Commission at 8/13/13 Workshop Item Cost Fund Notes 1. Pay Plan Implementation $217,500 Various $163,857 to General Fund to come from Gas Tax Fund (50 %) and remainder from General Fund Balance; show in 10 -year plans also. 2. Welcome Signs $11,000 General Fund 3. Mayport Rd. Landscaping Matching Program $6,500 Tree Fund Not added to budget, just identified the project to spend the funds on. 4. Citizens Police Academy $7,500 Forfeiture Fund Transfer funds to Patrol Division of General Fund for Academy. 5. Rental Space for Detectives $40,350 General Fund $13,750 to be one -time capital costs and $26,600 for rental 6. Roberts St. Ditch Improvements $50,000 General Fund Total project est. $100,000 but 50% to come from FDOT. 7. Expansion of Kennel $40,000 General Fund 8. Bull Park Gazebo $40,000 General Fund 9. Sound System Improvements $15,500 General Fund 10. EC Drive streetscape $79,000 General Fund 11. Seminole Rd. Streetscape Project $250,000 1/2 Cent Sales Tax Scope of project still to be approved by Commission. Ped path, swales were main topic of discussion. 12. Fountain Project; Mayport Rd. $5,000 General Fund Note additional $2,500 to capital cost to come from private sources. Total capital $7,500. 13. Rose Park Playground Equipment $40,000 General Fund Notes: *1; $335,987 available in Half Cent Sales Tax Fund. Other funding source for capital projects to be created by eliminating restriction of $300,000 for fire truck purchase in General Fund. l *2; Move $82,000 of resurfacing budget to Half Cent Sales Tax Fund, then transfer similar amount from Gas Tax to the General Fund to pay for the pay increases. This should also be carried forward through the 10 year plans of both funds. MINUTES OF SPECIAL CALLED (SHADE) MEETING OF ATLANTIC BEACH CITY COMMISSION HELD ON AUGUST 26, 2013 PRESENT: Mayor Mike Borno Mayor Pro Tem Maria Mark Commissioner Carolyn Woods Commissioner Jonathan Daugherty (arrived at 5:50 pm) Commissioner Mark Beckenbach (arrived at 5:50 pm) ALSO: City Manager Jim Hanson Human Resource Director Sue Danhauser The Mayor called the meeting to order at 5:47 p.m. in the City Hall North Conference Room for the purpose of discussing matters related to Union negotiations with the Coastal Florida Police Benevolent Association, Inc. (PBA) and the Northeast Florida Public Employees Local 630 (Blue Collar) Unions. The meeting was adjourned at 6:17 p.m. Mike Borno Mayor/Presiding Officer ATTEST Donna L. Bartle, CMC City Clerk MINUTES OF SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION HELD ON AUGUST 26, 2013 PRESENT: Mayor Mike Borno Mayor Pro Tem Maria Mark Commissioner Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Carolyn Woods ALSO: Jim Hanson, City Manager Donna Bartle, City Clerk Nancy Bailey, Recording Secretary The Mayor called the meeting to order at 6:30 p.m. in the Commission Chamber. Item 2 was taken out of sequence and acted on at this time. 2. ORDINANCE NUMBER 90 -13 -219, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, COUNTY OF DUVAL, STATE OF FLORIDA, AMENDING A PREVIOUSLY APPROVED SPECIAL PLANNED AREA (SPA) KNOWN AS THE ATLANTIC BEACH COUNTRY CLUB SPA, TO INCREASE THE TOTAL NUMBER OF RESIDENTIAL DWELLING UNITS PERMITTED FROM ONE HUNDRED EIGHTY (180) TO TWO HUNDRED (200), WITH A MAXIMUM OF TWENTY -SIX (26) TO BE ALLOCATED TO LANDS WITHIN THE CITY OF ATLANTIC BEACH, AND THE REMAINING ONE HUNDRED SEVENTY -FOUR (174) TO BE LOCATED ON ADJACENT LANDS WITHIN THE CITY OF JACKSONVILLE; PROVIDING FOR SPECIAL CONDITIONS; PROVIDING FOR FINDINGS OF FACT; PROVIDING FOR A SAVINGS CLAUSE; REQUIRING RECORDATION; AND PROVIDING AN EFFECTIVE DATE. Mayor Borno read Ordinance No. 90 -13 -219 by title. Motion: Approve Ordinance No. 90 -13 -219. Moved by Mark, Seconded by Commissioner Beckenbach stated point of order. He asked that the discussion with Marc Hudson regarding the conservation easement, being the number one item on the agenda, be the first order of business. Mayor Borno stated since he would like to make that request he will back up from the Ordinance and ask Commissioner Mark to recall her motion. Commissioner Mark withdrew her motion. 1. Discussion with Marc Hudson regarding Conservation Easement. Commissioner Mark stated she has a problem with this being on the Special Called Meeting because it is not germane to what the Special Called Meeting is about and there is no action being taken on the Conservation Easement tonight and it is on the workshop agenda. She would agree to move it up in the order on the workshop agenda but she stated she does not believe it is appropriate to be within the this Special Meeting provisions. Commissioner Beckenbach stated then he would ask for a motion to adjourn this meeting and move over to that meeting in order for them to have that discussion on this and then come back to this special meeting. He stated, either way, before they have a vote on this ordinance, he would like to understand where they are on the conservation easement. Commissioner Mark stated the conservation easement has nothing to do with this ordinance and the zoning. Commissioner Woods stated it is on the agenda. Commissioner Mark stated it is on the Workshop agenda and should not be on the Special Meeting agenda. Commissioner Woods stated, but it is on the agenda. Commissioner Beckenbach stated he would like a vote on whether or not to consider it. Discussion ensued. Motion: Hear the Discussion from Marc Hudson regarding the Conservation Easement Moved by Beckenbach, Seconded by Woods Mayor Borno stated taking into effect that this conservation easement is in preparation, the City hired Mr. Hudson to do a review and he has been working with representatives from all the parties working out the parameters. He stated it is a work in progress and is still to be put in another draft to come back and be worked on. He stated it is his understanding it has nothing to do with this ordinance and whether we approve the zoning of this 20 units into a SPA. He stated it is in negotiation at some point and he is sure it will be involved in future negotiations. Commissioner Beckenbach stated he is not very knowledgeable about conservation easements and we have Mr. Hudson as a consultant for the Commission and he has yet to hear from him in a meeting pertaining to Selva Marina Country Club or anything that has been negotiated and, although Commissioner Mark is the liaison, he has not heard what has gone on in the recent past pertaining to the negotiations and his constituents have asked him what is going on. He stated it is very difficult to tell them he has no idea and, as far as the conservation easement, it is very important to him to find out how far along we are with it before we end up voting for 20 more houses. Commissioner Mark stated she appreciates that but the very first draft of the conservation easement has only been vetted this past week. She stated it is not in any kind of form yet to be discussed. She stated it will be coming back again with those recommendations from that meeting. She stated Mr. Hudson was in that meeting. Commissioner Beckenbach stated he would like to have an open discussion with Mr. Hudson pertaining to that. Commissioner Mark stated she is not debating that it can be discussed; she is concerned about where it has been placed on the agenda when it is already on the workshop agenda, which to her is the proper place for the discussion. She stated that is a workshop agenda item, not part of this Special Meeting where action from the Commission is required. Commissioner Daugherty stated it is on the agenda and is the first thing on the agenda and he believes it does have some bearing on Item 2 and would like to hear it before that. He stated he would like to call the vote on the question. -2- Motion: Call the question. Moved by Daugherty, Seconded by Woods Votes: Aye: 3 — Beckenbach, Daugherty, Woods Nay: 2 - Borno, Mark MOTION CARRIED Commissioner Beckenbach asked that Marc Hudson come on up and answer some questions. Mayor Borno stated they are in discussion before they call anybody up and that is his privilege when he is ready. He stated there is a motion and a second on the floor for a discussion with Marc Hudson regarding the conservation easement. He stated as they have said before, it is a work in progress, it is not completed and it is totally wrong to have one party discuss it; if they are getting into negotiations, they should have the other parties involved. He stated they should all be up here and asked why do they have staff and a liaison and the developers in meetings. Commissioner Woods stated that is her point exactly. She stated Commissioner Mark is our liaison and is supposed to be representing what the Commission wants to happen and if she is not having discussions with the Commission about what the Commission wants then she can only be representing her point of view and not the entire Commission's point of view. She stated if the Commission is not aware of issues that have come up with the conservation easement they can't have input to give her to carry on the Commission's point of view. She stated she does not believe they said, by making Commissioner Mark the liaison, that she gets to do all the negotiating and make all of the decisions for the Commission. Commissioner Mark stated the Commission has thoroughly discussed what they want as far as the protection on this green space. She stated her understanding is that they want the green space kept as green space and should it cease to be a golf course that it is protected so it cannot be developed in perpetuity and it will allow some low impact amenities in the event it does become green space where they could put trails, etc. but no major hardscape structures. She stated all the parties have agreed to those restrictions under that conservation easement and all they are doing now is refining that language to ensure those protections are put in the plan. She stated all sides have agreed to those conditions. She stated if Commissioner Woods thinks she is only representing her own interest then she takes offense to that. Commissioner Woods stated that is not what she said. Commissioner Mark stated they have already discussed this and she believes she is carrying out the Commission's desires. Commissioner Woods stated then there should be no issue with Marc Hudson speaking. Commissioner Mark stated she has no issue with Mr. Hudson discussing this at the workshop; she has an issue with where it is. Commissioner Woods stated they have already decided on that question. Commissioner Mark stated the 3 -2 vote was whether to call the question. Discussion ensued. City Attorney Alan Jensen stated the question has been called, and as far as the rules for the City Commission it says the Commission sets its own rules and there are no rules on a Special Called Meeting other than who can call them. He stated there is a motion pending by Commissioner Beckenbach, seconded by Commissioner Woods that you proceed with the discussion with Marc Hudson; that is what is on the floor and the question has been called. Votes: Aye: 3 — Beckenbach, Daugherty, Woods Nay: 2 - Borno, Mark MOTION CARRIED Commissioner Beckenbach stated Marc Hudson, who is a consultant for the Commission, went to the meeting where there was a conservation easement discussed and asked him to explain what transpired. Mr. Hudson stated the document as set forth was called a conservation easement and was very similar to a conservation easement in many ways but was not a conservation easement. He explained the definition of a conservation easement and the difference between that and a covenant. Commissioner Beckenbach stated the Commission was asking for a conservation easement. Mr. Hudson explained a conservation easement has an implied public benefit where a covenant is a contract that applies to the title of the property between two properties, so there is no necessarily implied public benefit. He stated currently the conservation easement as written is controlled by the master agreement regarding the termination clause. He stated in this draft they are using the term recreation and green space easement at this time which they are hoping clears up the confusion about whether it is a conservation easement or not. He stated normally the only method of termination of a conservation easement is by the entity that holds the easement, which would be the City of Atlantic Beach. He stated typically that is only defined in the situation where the public benefit ceases to exist or there is a greater public benefit to be had. Commissioner Woods stated what the City is looking for is reassurance that what we are getting is a true conservation easement and not a deed restriction, etc. Mr. Hudson stated on his redraft he has tried to capture that the easement can only be terminated in a situation where it ceases to be a public benefit or a greater public benefit can be achieved. Discussion ensued. Mr. Jensen explained this is not a covenant and it is not a restriction; that is not the intent of any of the parties of this easement. He stated it is going to be an easement. He stated when they met with everybody last week they went through the first draft of the easement, paragraph by paragraph, and there were a lot of things they agreed could be changed, added to, things from the statute that may not particularly apply to this situation, etc. He stated this is a conservation easement on private property outside the City of Atlantic Beach. He stated there is public benefit to our citizens surrounding that but this isn't the typical situation where you have public property being preserved. He stated they all had a consensus at that meeting that what it is called doesn't define what it is because what is in the agreement will say what it is and they can build in the language from the statute as far as enforceability, etc., but it is a work in progress. He stated it is being redrafted, taking all of that into consideration. He stated he asked T.R. Hainline, the attorney for the owners and developers, if his reading of the first draft was correct, that the only way it could be terminated by the owners of the property was if the City did not do what they are supposed to do under the agreement and he was told yes. He stated all we have to do is keep our side of the agreement and it is perpetual. Mr. Hudson stated he has not been involved with all of the negotiations and he believes what is important is that they have gotten to this point because there was some confusion about what a conservation easement meant but now they know. Further discussion ensued. Commissioner Woods recapped stating what she has heard is that the Commission really wants this easement to stand up to statute law and what she is hearing from Mr. Hudson is that it is not quite there yet. Mr. Hudson stated it does meet the law; it just doesn't meet the conservation easement statute. Commissioner Woods stated that is a problem for her and it is better to get that out front in the -4- negotiations instead of at the end of the negotiations. Mayor Borno stated that Mr. Hudson said it doesn't meet the conservation easement court of statute and asked if everything in the statute has to be verbatim. Mr. Hudson stated no, it is not verbatim; in fact the way it is written is intentionally in an open manner He stated certain key things, i.e. those rules by which you are allowed to terminate the easement, is the most significant difference parting from the conservation easement statute. Further discussion continued. 2. ORDINANCE NUMBER 90 -13 -219, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, COUNTY OF DUVAL, STATE OF FLORIDA, AMENDING A PREVIOUSLY APPROVED SPECIAL PLANNED AREA (SPA) KNOWN AS THE ATLANTIC BEACH COUNTRY CLUB SPA, TO INCREASE THE TOTAL NUMBER OF RESIDENTIAL DWELLING UNITS PERMITTED FROM ONE HUNDRED EIGHTY (180) TO TWO HUNDRED (200), WITH A MAXIMUM OF TWENTY -SIX (26) TO BE ALLOCATED TO LANDS WITHIN THE CITY OF ATLANTIC BEACH, AND THE REMAINING ONE HUNDRED SEVENTY -FOUR (174) TO BE LOCATED ON ADJACENT LANDS WITHIN THE CITY OF JACKSONVILLE; PROVIDING FOR SPECIAL CONDITIONS; PROVIDING FOR FINDINGS OF FACT; PROVIDING FOR A SAVINGS CLAUSE; REQUIRING RECORDATION; AND PROVIDING AN EFFECTIVE DATE. Mayor Borno read Ordinance No. 90 -13 -219 by title. Motion: Approve Ordinance No. 90 -13 -219. Moved by Woods, Seconded by Mark Mayor Borno explained the ordinance is amending the zoning for the country club to allow an additional 20 units to be built. Mayor Borno opened the Public Hearing. Richard Selby, 3 Forrestal Circle North, stated they are going to spend $1 million to build a water reclamation plant just for that area. He stated members of Selva Marina Country Club are going to get the first bid on property over there and we have members of the country club on the Commission so there is a conflict of interest. He asked what is the benefit to Atlantic Beach; there is no fairness here. He asked what the developer is bringing to the table. He stated from reading the paper anybody who is a member of the country club would have first bite at the apple so it would only behoove them to vote for this because if they do they get the first crack at it. He stated that doesn't seem to be a fairness issue there at all. He stated it is not making a lot of sense to move forward with this whole project. He reiterated it doesn't make a lot of sense that they would be voting on something when they have members sitting here on this Commission that will be the first in line. He stated they have the advantage over anyone else because they are a member. Mark Tomaski, 448 Snapping Turtle Court West, stated sitting and watching the Commission tonight did not give him much confidence. He stated he is disappointed in this Commission because they are making decisions when they don't have all the facts. He stated for the Mayor to insist they just push forward makes him even more upset. He said for them to make decisions and not know the facts, not see all the details and just go on the idea that we are going to work on good will is not a way to run a City, a corporation, or your home. He stated they are at that point where they need to back up -5- and not feel like they are dealing with a used car salesman; you have to buy it today. He applauded Commissioner Beckenbach for bringing this up tonight and hoped the Commission takes some time to step back a little and see what it is that is really going on and if it is in the citizen's best interest. No one else from the audience spoke so the Mayor closed the Public Hearing. Mayor Borno stated misinformation or lack of understanding the information has been addressed to them. He stated it is not specific to this issue of rezoning they are dealing with and it mixes apples and oranges and confuses things. He stated if anyone wants to speak to him at a later time he will be glad to share everything he has learned. Commissioner Daugherty stated he has heard a lot of concern about how fast this is happening and believes the Commission has bent over backwards to facilitate them in getting this done in time for the golf course to be planted, etc. He stated he is still concerned about traffic and the impact to the five - way. He stated, as Mr. Selby asked about what do they bring to the table, the only thing they have brought to the table is this conservation easement. He stated that is the only reason he voted to approve the SPA and he believes it is time to pause and hold back and see where the conservation easement goes and make sure they have that in writing because that is the main thing they bring to the table. He stated it is not the Commission's job to make sure Selva has the ability to finance a new country club. He stated he is concerned about the impact on the people on Selva Marina Drive. He stated for the developer to say that is just a collateral for this loan; there is nothing in this that says it's collateral and that there is a reverter clause if they pay back the loan. He stated there is nothing that protects the City against those 20 more units being developed and believes it is very irresponsible for them to approve this at this time. Commissioner Mark stated she is shocked and appalled at what Commissioner Daugherty just said She stated they need to examine what the alternatives could have been on this piece of property. They could have just said they were going to leave it in Jacksonville, develop it to the maximum, highest and best use of that zoning and we would have had very little they could have done or have any kind of influence over what they wanted to do with that piece of property. She stated she believes the developers and the club have done an extraordinary job in assuring they have the least amount of density they could build in order to make the club financially viable, to have the least amount of impact on the City; they have agreed to annexation, to have another entrance in and out of Selva so it doesn't have such an impact on the roads, to put a conservation easement over about 100 acres that is still private property; they have agreed to all the Atlantic Beach zoning requirements even though that property still has not been legally annexed yet into Atlantic Beach; we are getting the benefit of the tax revenue; and we will be getting an increase in our Community Block Development Grant because of the per capita basis, so for Commissioner Daugherty to say the developers are not bringing anything to the table, she is shocked. She stated we are fast tracking it because they are under their own financial strain to get this going and the Commission all knew, going into this, what this timeline was and we went into this wide open and she does not believe there have been any surprises, underhanded deals, or anything they have not been completely upfront with us about. Mr. Hanson stated the Commission put this as a primary item in the previous year's strategic planning after people approached us asking what was going to happen if they went bankrupt and it is sold off and can be developed. He stated it certainly is not something that has raced ahead. He stated the developers of the country club have told the Commission that the timing is dependent on the growing -6- season and if they can't get this done in accordance with that timing it will cost them a year and they may not be able to survive a year. He stated he agrees that it has gone pretty quickly but the timeframe is sort of out of our hands. He stated Commissioner Mark and he have been trying to work with them to get this so it is in a position to get in front of the Commission for some time, based on that timeframe and based on the Commission putting it in strategic planning He stated it is still one of the top priorities of the current year's strategic plan and he sees it as his goal to get this done. Discussion ensued. Mr. Jensen explained the zoning they are considering does not have anything to do with collateral. He stated the conservation easement is going to be on the golf course property that they have already approved the SPA on. He stated this additional property is not under the conservation easement so it won't be burdened by the conservation easement. Discussion ensued. Mr. Jensen explained about putting a moratorium on the implementation of the zoning. Commissioner Woods called the question. Votes: Aye: 5 — Beckenbach, Daugherty, Mark, Woods, Borno Nay: 0 - MOTION CARRIED Mayor Borno asked that the roll be called for the vote. Roll Call Votes: Aye: 4 — Woods, Mark, Beckenbach, Borno Nay: 1 - Daugherty MOTION CARRIED There being no further discussion by the City Commission, Mayor Borno declared the meeting adjourned at 7:58 p.m. Mike Borno Mayor/Presiding Officer ATTEST Donna L. Bartle, CMC City Clerk MINUTES OF THE WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN THE COMMISSION CHAMBER ON AUGUST 26, 2013 City Commission Members present: Mayor Mike Borno Mayor Pro Tem Maria Mark Commissioner Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Carolyn Woods Staff present: Jim Hanson, City Manager Alan Jensen, City Attorney Donna Bartle, City Clerk Nancy Bailey, Recording Secretary The meeting, which was held for the purpose of discussing the agenda items for the Commission Meeting of September 9, 2013, was called to order at 8:03 p.m. by Mayor Borno. Workshop -only Items: 1. Presentation by Harden & Associates on the Property & Liability Insurance Renewal. Human Resource Director Sue Danhauser introduced Shaun Woleshin of Harden & Associates. She stated they went out to market and the City will be saving $41,590 from last year and will also be getting additional coverage for our flood insurance. She stated we will be changing our Workers Comp to FMIT, which is a subsidiary of the Florida League of Cities. She stated the premium will be $117,608 for Workers Comp and last year's was $139,727. Mr. Hanson complimented Harden & Associates stating they have done a great job with this. Mr. Woleshin thanked Sue Danhauser, Donna Kaluzniak and Jim Hanson for working hard with them in analyzing the assets of the City and making sure they put in a process that delivered the best results for the City. He stated stimulating competition with FMIT and PGIT was another big factor that drove the results positive this year. *Discussion of Agenda Items on September 9, 2013 Commission Meeting: 1. A. Approve the minutes of the Regular Commission Meeting of August 12, 2013. B. Approve the minutes of the Special Workshop of July 22, 2013. C. Approve the minutes of the Special Called Commission Meeting of July 22, 2013. D. Approve the minutes of the Commission Workshop of July 22, 2013. E. Approve the minutes of the Budget Workshop for August 1, 2013. There was no discussion on this item. 2. Courtesy of Floor to Visitors Ray Brown, 523 Clipper Ship Lane, addressed the Utility Sales Report stating the information presented is totally useless when it comes time to evaluate the performance of the department. He made the following recommendations for changing the report: make it Minutes — City Commission Workshop August 26, 2013 Page 2 an annual report covering the current and preceding years and publish it every quarter; water production section should include system capacity, volume produced, cost to produce that volume, volume sold, sales dollars generated and production volume per man-year worked; water distribution system section should include incidents handled and man-year of labor used to address those incidents; the sewer treatment section should include system capacity, amount treated, cost to treat, sales dollars generated, and treatment volume per man -year worked; and the sewer collection system should include incidents handled and man-years of labor used to address those incidents. Further he proposed adding a new section called improvement, which should include a discussion on procedures, processes and programs being evaluated to improve the efficiency of the department along with projected implementation dates and anticipated savings. He stated adopting this report will allow the citizens to determine if the department is achieving their stated objectives for optimum efficiency with minimal staff. 3. Unfinished Business from Previous Meetings A. City Manager's Follow -up Report. None. 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 Financial Report, Building Department Monthly Activity Report, List of New Business Taxes and Utility Sales Report for July. B. Police Semi - annual Report. C. Award a contract to Gruhn May, Inc. for Pine St. and Wonderwood Rd. Water Main Replacement and Mayport Rd. Valve Addition, Bid No. 1213 -02, in the amount of $122,765.70 and authorize the City Manager to sign the contract. In addition, authorize staff to encumber funds in the amount of $13,000 for contingency. Director of Public Utilities Donna Kaluzniak explained the bid, stating she is recommending approval of the low bid. D. Approve the extension of the Electrical Troubleshooting and Repair contract for one additional year to Limbaugh Electrical Contracting, Inc. at the contract prices effective November 1, 2013 — Bid No. 0910 -16. Commissioner Daugherty asked if they had bid this out. Mr. Hanson stated they did not reprice this contract this year and it is the same price as last year. Minutes — City Commission Workshop August 26, 2013 Page 3 E. Award the Janitorial Service Contract for City Facilities to Supreme Janitorial Service in the amount of $50,796.00 for a one (1) year contract to expire on September 30, 2014 — Bid No.1213 -06. City Manager Jim Hanson stated staff recommended they not renew the current contractor because we are not getting very good service. He stated the lowest bidder was out of state and explained why they do not feel they are in the City's best interest and stated staff is recommending the next lowest bidder, Supreme Janitorial, which is a Jacksonville company. He brought to the Commission's attention that the President of the company is Richard Clark, stating that had nothing to do with the selection because staff does not pay attention to who is the president when selecting a company. Discussion ensued. F. Reject all bids for Concrete Repairs for Public Works/Utilities Department (Bid No. 1213 -08). Director of Public Works Rick Carper stated he is recommending rejecting the bids because his bid form was unclear, explaining they have revised the bid form and it is very clear now what the bid will be awarded on. He stated the Commission does not have to approve rejection, he just has to notify them that he is doing this. G. Declare the list of property as surplus so that the items may be disposed of in the most beneficial way. H. Authorize the City Manager to sign contracts with Atlantic Beach Athletic Association, yoga instructor Linda White and tennis professional Brecht Catalan. 5. Committee Reports None. 6. Action on Resolutions None. 7. Action on Ordinances A. Public Hearing on adopting a Tentative Millage Rate and adopting Ordinance #20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014. AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014. Finance Director Nelson Van Liere stated this is the staff report that gives the tentative millage rate which will be set in the second meeting by resolution. He further summarized his staff report and the Ordinance. Commissioner Daugherty stated he will bring something back at the next meeting related to increased raises for our lower paid employees. Mr. Van Liere explained it wasn't just a 2% raise, it was the implementation Minutes — City Commission Workshop August 26, 2013 Page 4 of the new pay grades and the compression elimination, for which some of those employees will receive $1,000. Commissioner Mark added that if an employee is not at their midpoint of their salary range, they will get the 2% based on that midpoint of their salary. Mayor Borno stated that is above and beyond what they are looking at in the budget and where they are at and it is an addition to the pay and review study and is something that needs to be addressed in that venue. He stated he sees what Commissioner Daugherty wants to do but it opens another door that they have to address, i.e. whether they are going to have another pay review, etc. Commissioner Daugherty stated this is something he is working on with Sue Danhauser which is why he doesn't have a spreadsheet to show them, but hopefully before the next meeting he will have that. He stated it has been a long time since the employees have gotten raises, the CPI is out of control and a 2% raise for someone who makes $30K a year isn't as beneficial as a 2% raise for someone who makes $80- 100K/year. He stated maybe they can afford to do a little more. Commissioner Woods stated that would be a budget amendment. Mr. Van Liere pointed out that a lot of the employees he is talking about are about to go through Union negotiations as well, which is where that would most likely come up. B. ORDINANCE NO. 75- 13 -19, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 21 TRAFFIC AND MOTOR VEHICLES ARTICLE II STOPPING, STANDING AND PARKING TO RENAME PARKING MORE THAN SEVENTY - TWO HOURS PROHIBITED TO PARKING IN THE RIGHT OF WAY WITH REVISED REQUIREMENTS AND TO PROVIDE A FINE STRUCTURE FOR VIOLATING THAT SECTION AND PROVIDING AN EFFECTIVE DATE. Discussion ensued regarding the parking ticket prices. Mayor Borno pointed out a scrivener's error on the second page stating untended should be intended. Chief Classey summarized his staff report and explained this is a new ordinance and they will issue warnings prior to citations. 8. Miscellaneous Business A. Public Hearing - Appeal on Community Development Board decision to allow construction of a fence exceeding four (4) feet in height with ten (10) feet of property line at 298 Pine Street. Mayor Borno explained this is a quasi judicial hearing and will be discussed at the public hearing. City Attorney Alan Jensen reminded the Commissioners will have to disclose at that hearing any ex parte communications they may have received about this appeal prior to the hearing. Mr. Hanson asked if somebody approached a Commissioner prior to going to the Community Development Board would the Commissioner still have to report that conversation. Mr. Jensen stated no because there was no appeal at the time. B. Public Hearing - Request for Waiver to allow two cupolas at 42 feet 1.5 inches and a tower lantern cupola at 38 feet 5 inches as shown in the submitted rendering. Minutes — City Commission Workshop August 26, 2013 Page 5 Mr. Hanson stated the developer has withdrawn this request because they have redesigned the building and are going to keep it within 35 feet. C. Agreement with St. Johns River Water Management District for Construction of Reclaimed Water Facilities. Ms. Kaluzniak explained this is the agreement for the grant we received. She stated it was a 40% grant in the amount of $442,000 and we need to get them a copy of the signed agreement before October 1, which is why she wanted to get it on the next agenda. She answered questions from the Commission. D. Renewal of City Property and Casual Insurance. This item was discussed earlier in the meeting. E. Proposed Ordinance for Florida Friendly Fertilizer Use. Mr. Carper explained a Florida - friendly fertilizer control ordinance is required by the Municipal Separate Storm Sewer System Permit. He showed slides of the proposed fertilizer ordinance explaining this applies only to commercial and institutional applicators. He answered questions from the Commission. Discussion ensued. 9. City Manager A. City Manager's Report. City Manager Hanson stated he was advised by Fleet Landing of a request for a new bond issue. He stated the obligation to repay these bonds is solely on Fleet Landing and the City is in no way guaranteeing that repayment. He stated they requested that this is approved at the September 23 meeting and they have a special meeting already scheduled for the second reading of the budget ordinance because it has to be adopted prior to the end of the fiscal year. He stated the schedule would be that they would come to the Commission on September 9 and would be in addition to the agenda in front of them, but they would only brief the Commission and then the approval of the resolution that authorizes them to issue bonds would be put on the September 23 special meeting. 10. Reports and /or requests from City Commissioners and City Attorney A. Discussion and Recommendations for the Process and Procedure of Commission Evaluation of City Manager /City Clerk/City Attorney. Commissioner Beckenbach explained his request stating he is asking for concurrence from the Commission on which evaluation form they would prefer. Discussion ensued. Commissioner Mark suggested that the HR Director come up with a set of forms for them to use. Commissioner Beckenbach stated he wanted input as to whether they are interested in the numerical rating or the verbal rating and then they could have the HR Director tailor them to all three positions. He stated that way they are individually evaluating them one on one and then at the end it will be put in their folders to be used for contracts, increased salaries, etc. Mayor Borno stated he is in full agreement that it Minutes — City Commission Workshop August 26, 2013 Page 6 should be private one on one. Commissioner Woods suggested, rather than using our HR Director, that they adapt forms that have been specifically developed for their professions through their specific organizations. Commissioner Woods stated she preferred the evaluation form with words instead of numbers. Mr. Hanson stated he feels strongly that each of them being evaluated should have some input on the evaluation form. He stated one concern he would have is that the elected officials filling out these forms are going to think more about the media coverage than they are about having honest discussions which is why he is concerned about having this done in public. He stated he believes they can get valuable one on one discussions and feedback from the staff that they will not get when they do this in a written format that is just turned into the Mayor. Commissioner Beckenbach stated he understands where he is coming from but at the same time this is the position he is in; he is a City Manager of a public entity. He stated there have been no evaluations for the past 14 years that he has been City Manager that he can review. Discussion ensued. Commissioner Mark stated when they agree to do something like this they really need to think about it and take into consideration what is driving it and do they want to have the three appointed positions to have a fair, unbiased, objective review and evaluation. She further stated if they are going to have a true evaluation of performance then the Commission also needs to have a self evaluation of their performance as Commissioners. She stated they need to work out what their goals and objectives are for themselves and then marry those with the goals and objectives set for these three appointed positions. She stated the form is the last piece of this; it is the preparation to get to the form that they need to work on before they even get to what the form is going to look like. She stated she believes it is the process that they need to fully discuss and understand what they want to achieve. She stated she would like to have evaluations and this could be part of the strategic workshop every year when they are setting goals for the City. She stated she believes it is a little bit deeper than just picking out a form. Mayor Borno stated each year he has reminded himself that it is due to have a one on one. He stated he looks at the Florida ICMA guidelines. He stated they also have to keep in mind the criteria that are in the contracts so they don't get outside the parameters of what they were hired to do. Commissioner Beckenbach stated he is not saying this has to be done tomorrow but there definitely should be a review eventually. He stated he has no problem working on it and coming up with something that is reasonable not only for the Commission but for the three individuals who are working with the Commission. B. Board Member Review Committee Recommendations for Appointments to the Code Enforcement Board. There was no discussion on this item. C. Reconsideration of Ordinance 5 -13 -30 to dissolve the Code Enforcement Board and authorize creation of one or more special magistrates. Commissioner Daugherty explained he was not at the meeting when this was discussed and wanted to see how the Commission felt on this. Mayor Borno stated he has been gathering information on this and there is a tremendous movement going in that direction. Commissioner Daugherty stated he has spoken with the Code Enforcement Officer and Minutes — City Commission Workshop August 26, 2013 Page 7 she is a huge proponent of this. Discussion ensued regarding the Special Magistrate. Mr. Jensen stated the Code Enforcement Board is very good but one of the problems is that they are not uniform in their decisions. He stated he does not have any experience with special magistrates but the Code Enforcement Officer Debbie White has a lot of experience because that is what they do in Jacksonville Beach. He stated from everything he reads, as the Mayor stated, more and more cities are going with that because it is more efficient, more uniform, they are prepared to deal when people show up with lawyers, etc. Mayor Borno stated this is not against the Board; that is not why he brought this forward. He stated there is a change in times and it does give uniformity. Mr. Jensen stated he believes a magistrate could go through the cases a lot quicker, than a 7- person board. Further discussion ensued. Commissioner Daugherty stated if the Commission agrees now that they don't see a problem with the current situation, then when this comes up he will withdraw it. D. Continued Discussion as to the Potential Renovation and Additions to the Present COAB Police Station. Commissioner Beckenbach stated previously the Commission decided they were not going ahead with the original plan from ADG. He stated the second thing was encroachment on the park and most of the Commission agreed there should not be encroachment on the park. He stated encroachment to him means that a foundation that is over on the west side is going to move everything over into the park and taking anything out of the green space of the park, to him, is not acceptable. He further discussed renovation of the current building, a space /needs assessment, and determining the amount of money they are willing to spend. He asked if the Commission wants to move forward. Discussion ensued. City Attorney Jensen stated during the first 45 minutes of the meeting tonight the two ladies over there trying to keep minutes could not keep minutes because everybody was talking over everybody. He asked that they please remember the rules that they established so the clerks can take the minutes and so everybody is not talking at the same time. Mr. Hanson stated this may be a waste of time to talk about this tonight. He stated the new Commission may want to do something entirely different from the road the last Commission took. He stated the election is tomorrow and believes any road they start down without all of the new Commissioners being part of that road and establishing that road map will probably be a waste of time. He suggested they should wait until the new Commission is elected to decide what they are going to do next. E. Explanation as to which recommendations from Marc Hudson are being considered for the Conservation Easement for Selva Marina Country Club. This item was discussed during the Special Called Meeting. There being no further discussion by the City Commission, Mayor Borno declared the meeting adjourned at 9:41 p.m. Minutes — City Commission Workshop August 26, 2013 Page 8 Mike Borno Mayor Donna L. Bartle, CMC City Clerk *Formal action (if needed) will be taken at the Commission Meeting of September 9, 2013. MINUTES OF THE SPECIAL WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN THE COMMISSION CHAMBER ON SEPTEMBER 10, 2013 City Commission Members present: Mayor Mike Borno Mayor Pro Tem Maria Mark Commissioner Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Carolyn Woods Staff present: Jim Hanson, City Manager Nancy Bailey, Recording Secretary Others: Pete Rodriguez, Treasurer, Selva Marina Country Club Mike Carlin, President, Selva Marina Country Club Rick Wood, Atlantic Beach Partners T. R. Hainline, Atlantic Beach Partners Leed Silverfield, Atlantic Beach Partners Marc Hudson, North Florida Land Trust Laura Ferrante, Board Member and Counsel for Selva Marina Country Club and Atlantic Beach Country Club The meeting, which was held to review the Master Agreement and Recreation & Greenspace Easement with Atlantic Beach Partners and the proposed reuse rate structure, was called to order at 3:05 p.m. by Mayor Borno. He announced that we were testing our new video and audio system that has been installed in the Chamber. Everyone at the table introduced themselves. Jordan Marshall, Legal Intern with North Florida Land Trust was in the audience. 1. Discussion of Recreation and Greenspace Easement. Commissioner Mark summarized they are here to try to get the Greenspace Easement and Master Agreement very close to being finalized. Mayor Borno went page by page through the Recreation and Greenspace Easement asking for any comments. Page 1 — Marc Hudson asked that a statement be included as follow: "the intent and purpose of this recreational and greenspace easement for the City of Atlantic Beach is the protection of the GC property as a scenic amenity in perpetuity ". T.R. Hainline responded he is fine with that sentence except after "in perpetuity" it would state "subject to the termination provisions below ". Discussion ensued. Page 5 — Commissioner Daugherty asked if essential services were limited to 15 % impermeable surfaces. Commissioner Mark pointed out where it stated that it was. Page 8 - 4.3. Marc Hudson stated his one concern was the calculation of the Native Tree Canopy. After discussion, all parties agreed to look at landscape architect Kelly Elmore's plans and go with what he proposes. Minutes — City Commission Workshop September 10, 2013 Page 2 Mr. Carlin reported they will close the club from an operating point of view on October 31 and, in order to get the golf course grown in, will start killing grass in September. Pages 12 -13 T R Hainline stated they will come up with the language for this before the 23`d. He stated this easement allows the City to transfer its rights and obligations under the easement to grantees. He stated if it goes to someone else then they need to know that they have a hold harmless agreement from that entity and that that entity has insurance at certain levels so they are not going to get sued if those people come out on their property and hurt themselves. He stated they will submit to the City a hold harmless insurance provision that would govern any entities to which the City would convey its rights and obligations under the easement. Page 18 — Mayor Borno pointed out a scriveners' error, Att lantic Beach should be Atlantic Beach. Changes were agreed upon and will be made available at the Workshop on 9/23/13. 2. Discussion of Master Agreement Mayor Borno went page by page through the Master Agreement asking for comments. Two scrivener's errors were pointed out on Page 6 m. — there were two periods at the end of the sentence; and on Page 14 ii. - cross out "to" after Country Club on 5th line. Discussion ensued about default by the Country Club or the City. After discussion, all parties agreed to remove "as determined by the Country Club" on page 14 under i., lines 4 and 5 and ii. 4th line; and change "or other Country Club approved water" to "or other suitable water" on the 7th line under ii. Changes were agreed upon as noted above and will be made available at the Workshop on 9/23/13. 3. Discussion of Proposed Reuse Rate Structure Mr. Hanson summarized his staff report, explaining the proposed rate structure. He stated the Country Club would not be charged for the first 18 months due to the dramatic fluctuations expected in the growing period, up to 1 million gallons /day. He answered questions from the Commission. Discussion ensued. Mike Carlin stated he really appreciates the time everyone has put into this. Mr. Hainline stated they will incorporate the changes made today and will send another draft out after seeing Kelly Elmore's plan. Mr. Hanson stated the thing that makes this Master Agreement work is when the developer buys the property. He stated they can sign it the morning after the 14th, if it is approved, but it doesn't go into effect until the developer buys the property. He stated the other piece is to be ready to build the reuse system and our engineers are very concerned about being Minutes — City Commission Workshop September 10, 2013 Page 3 able to get this done and have the reuse there by March 15, which is when they say they have to have it. He stated we will have bids taken this month and would like to have it on the Commission agenda for approval on October 14, but have a caveat on there that says they can't execute the contract or give the notice to proceed until this Master Agreement goes. He stated basically, if all of this is in place and the developer buys the property then this conservation easement becomes effective immediately; it has to be recorded, and the next morning they can issue a notice to proceed to the contractor so they can start building the reuse system and get it done on time. He stated we all have a time schedule here that we are working backwards on, trying to meet their schedule on the grass growing. Rick Wood stated the day they execute the deed they will sign the conservation easement and deliver it to the City. He stated that doesn't necessarily mean the City will be able to record it. He stated in the documents it talks about a reasonable period of time but their preference would be to have their bulldozers out there the day after they close and deliver the conservation easement to the City. He asked if it would be possible, instead of requiring the recording of the conservation easement, for it to be the delivery of the conservation easement to the City of Atlantic Beach. It was agreed that they could do that. The annexation timeframe and process was discussed. Mr. Hanson announced he just received notification that the boil water notice has been lifted. There being no further discussion by the City Commission, Mayor Borno thanked everyone for all their hard work and declared the meeting adjourned at 4:38 p.m. Mike Borno Mayor Donna L. Bartle, CMC City Clerk