12-16-91 v CITY OF ATLANTIC BEACH
SPECIAL CALLED MEETING OF THE CITY COMMISSION
MONDAY, DECEMBER 16 , 1991 AT 7:00 P.M.
AGENDA
1 . Change order #1 for Sea Gardens Lift Station design change
and Change order #4 increasing the contract by $3 , 865 for Sea
Gardens Lift Station
2 . Continuation of public hearing concerning Ordinance #80-91-45
regarding proposed water and sewer rate increases
Adjournment
NOTE: At 7 : 30 p .m. the City Commission and Pension Board of
Trustees will meet for a workshop meeting .
MINUTES OF THE SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION
HELD IN CITY HALL, 800 SEMINOLE ROAD, AT 7:00 PM ON MONDAY, DECEMBER 16,
1991
The meeting was called to order by Mayor Gulliford. Present, in
addition to the Mayor, were Commissioners Fletcher, Tucker, and Waters.
Also present were City Manager Leinbach, City Attorney Jensen, and City
Clerk King. Commissioner Edwards had an excused absence.
1. Change Order No. 1 for Sea Gardens Lift Station design change and
Change Order #4 increasing the contract by $3,865.00 for Sea Gardens
Lift Station
The City Manager explained Change Order No. 1 provided for the
construction of Sea Gardens lift station four feet further south than
original design location. Change Order No. 4, at a cost of $3,865.00
provided for the construction of a retaining wall, pavement removal and
replacement, replacement of former wetwell top with new top, ring and
cover, and construction of a cedar enclosure around electric meters.
Commissioner Waters moved to approve Change Orders 1 and 4. The motion
was seconded by Commissioner Fletcher. After brief discussion, the
question was called and the motion carried unanimously.
2. Continuation of public hearing on Ordinance No. 80-91-45 regarding
proposed changes in water and sewer rates
Mayor Gulliford reviewed the ordinance and provided copies of the
complete document for anyone in the audience who wished to review same.
He opened the floor to continue the public hearing and invited comments
from the audience.
W.J. Ryszykow, 535 Royal Palms Drive, confirmed that the rates in the
ordinance being presented this evening were the same as those which had
been discussed at the previous meeting. Mayor Gulliford responded that
this was so and he provided comparisons of the old and new rates.
Commissioner Fletcher reminded the audience that the city was in a
period of transition and after the new computer is on line, more precise
data would be available upon which to base the rates. The rates
proposed in the ordinance before the City Commission were intended to
meet the needs of the current fiscal year and would be reviewed and
possibly adjusted in about a year. Commissioner Fletcher said the
utility committee recommended that the current maximum sewer gallonage
charged be reduced from 50,000 gallons to 40,000 gallons.
Alan Potter said the proposed rates would be much fairer than the old
rates. He said the previous base sewer charge was unfair to the smaller
water user, but the new rates were completely fair and all users would
be charged at the same rate.
Page Two
Minutes of Sepcial City Commission Meeting
December 16, 1991
Since no one else wished to speak to the matter, the Mayor declared the
public hearing closed.
Commissioner Fletcher moved to amend the maximum sewer charged per
quarter from 50,000 to 40,000 and approve passage of Ordinance No.
80-91-45 as amended. The motion was seconded by Commissioner Waters and
was unanimously approved.
Discussion then ensued regarding when the Oceanwalk area would be
transferred from Buccaneer to the city system. Mayor Gulliford felt
that bond covenants would not permit billing to be changed to city
rates until Oceanwalk was receiving their service from the city system.
Bob Kosoy explained that the valve to implement the change over had been
installed but that the water pressure was lower than expected and would
not be acceptable. Commissioner Fletcher said the water and sewer
committee would continue to work on this problem and would keep the City
Commission informed.
The City Manager said the subject of solid waste disposal was discussed
at a recent meeting with the City Managers of Neptune Beach and
Jacksonville Beach. He said concern was expressed at the potential cost
of disposal. He requested permission to authorize the University of
North Florida to undertake a feasibility study, at a cost not to exceed
$1,008.00 per community, to determine a method of developing a solid
waste authority. He felt this would benefit the entire Beaches
community. The City Commission concurred in this suggestion.
The City Manager also reported the city's insurance consultant had
advised that based on his knowledge of the market, the proposed Blue
Cross Blue Shield increase of 4.4% appeared to be reasonable and he
recommended continuing with this health insurance for another year.
Mayor Gulliford reported the United States Supreme Court would hear a
case called Lucas vs. South Carolina regarding the State of South
Carolina preventing Mr. Lucas from developing a piece of ocean front
property. He understood the State of Florida intended to file an Amicus
brief on behalf of the State of South Carolina. He suggested
authorizing the City Attorney to file a brief in favor of Mr. Lucas on
behalf of the City of Atlantic Beach.
Commissioner Tucker moved to authorize the City Attorney to file a brief
on behalf of the City of Atlantic Beach in the case of Lucas vs. the
State of South Carolina. The motion was seconded by Commissioner
Waters.
Commissioner Fletcher felt a project of this nature would require a lot
of attorneys' time and would be costly. He said this needed to be
checked into further. The City Attorney expressed concern at the
Page Three
Minutes of Special City Commission Meeting
December 16, 1991
limited time available since the deadline for filing was January 2, 1992
but Mayor Gulliford said a great deal of work had already been done and
legal assistance should be available through Jack Culp.
Commissioner Fletcher offered a substitute motion that the City
Commission adopt the concept of authorizing the City Attorney to file a
brief on behalf of the City of Atlantic Beach in the case of Lucas vs.
the State of South Carolina, subject to the City Attorney determining
whether it would be feasible to file such a brief and determining the
cost involved, and whether any financial assistance might be available
from other sources. The motion was seconded by Commissioner Waters and
carried unanimously.
Ray Salman, 1633 Park Terrace East, suggested efforts need to be made by
the City of Atlantic Beach to educate the citizens regarding home rule.
He also complimented the city for the attractive Christmas decorations
on City Hall.
There being no further discussion, the Mayor declared the meeting
adjourned at 7:55 PM.
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William I. Gu life . J
Mayor/Presiding I10
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Maureen King; Ci y Cl k
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MINUTES OF THE JOINT COMMITTEE MEETING OF THE ATLANTIC BEACH CITY
COMMISSION AND THE ATLANTIC BEACH PENSION BOARD OF TRUSTEES HELD IN CITY
HALL, 800 SEMINOLE ROAD, ON MONDAY, DECEMBER 16, 1991
PRESENT:
CITY COMMISSION:
William I. Gulliford, Jr. , Mayor
Lyman T. Fletcher
Adelaide R. Tucker
J. Dezmond Waters, III
PENSION BOARD OF TRUSTEES:
Richard E. White, Chairman
Alison Brown
Joseph P. Garvin
Joan LaVake
Ronald W. Wingate
ALSO PRESENT:
Alan C. Jensen, City Attorney
Kim D. Leinbach, City Manager/Secretary
Harry E. Royal, Finance Director
Maureen King, City Clerk
ABSENT: Glenn A. Edwards, Commissioner (Excused)
The meeting was called to order at 8:05 PM by Mayor Gulliford.
Richard White introduced Mike Callaway from Merrill Lynch, whose firm
monitors the performance of Sun Bank, the City's Money Manager. Mr.
Callaway provided each Commissioner and Board Member with an investment
report which addressed Investment Policy, Investment Performance, and
Asset Allocation Information. A copy of the report is on file in the
office of the City Clerk. Mr. Callaway said the pension funds were
invested very conservatively compared with other municipal pension funds
and earnings were over 19% for the past year. He said the board had
recommended increasing to 60% the amount of funds which could be
invested in stocks and an ordinance authorizing this change would be
before the City Commission for action at the next Commission meeting.
Members of the Police and Fire departments who were in attendance
supported this change.
Joseph Garvin then presented the proposal for increased benefits for the
Public Safety employees. The complete proposals are attached to the
minutes of the joint meeting of the City Commission and Pension Board
members of September 16, 1991. Lt. Garvin said, of the proposals
presented, the Public Safety employees felt B and D were the highest
priorities. (B. To allow employees to retire at age 55 with ten years or
more of service; and D. To determine the final average salary based on
the highest three consecutive years out of the last ten years. The
member's pension would be reduced by 1/4 of 1% for each month (3% per
year) that retirement preceded age 60) . Lt. Garvin said the Public
• 4
PAGE TWO
MINUTES OF JOINT COMMITTEE MEETING OF CITY COMMISSION AND PENSION BOARD
OF TRUSTEES
DECEMBER 16, 1991
Safety employees would be willing to pay higher contributions to help
fund the additional benefits.
Discussion ensued and Chief Thompson said he felt proposal J was
important since a Public Safety employee who was injured and permanently
disabled currently received no benefits. It was the general consensus
this was a reasonable request for the cost involved.
After a complete discussion of the Public Safety proposals, Joan LaVake
presented the proposals on behalf of the general employees. She said
the general employees considered proposal C (to increase the pension
benefits from 2.25% to 2.85%) as their first priority, proposal D (to
determine final average salary based on the highest three consecutive
years out of the last ten years) their second priority, and proposal B
(to allow employees to retire at age 55 with ten years or more of
service. The member's pension would be reduced by 1/4 of 1% for each
month (3% per year) that retirement preceded age 60) their third
priority. Ms. LaVake said the general employees also were willing to
pay higher contributions to buy these additional benefits.
Discussion ensued regarding the higher percentage of final average
compensation which was currently being paid to Public Safety employees
to compensate them for their higher stress jobs. Pension Board Chairman
Richard White felt that employees in higher stress jobs should be
compensated through higher salaries while employed. Since pension
benefit were based on salaries, the employees in high stress jobs would
then, automatically, receive higher pensions.
After further discussion of the proposals, Harry Royal pointed out that
the actuarial estimates were based on anticipated earnings of 8% which
he felt was low since the fund had earned over 19% in the past year. He
felt a basis of 10% anticipated earnings would be more realistic. Mr.
Royal was asked to determine the amount of additional revenues which
would be realized based on revenues of 10% as opposed to 8%. He was
also asked to determine the costs to both the city and the employees of
implementing the various proposals, and also to identify sources of
revenue which could be used to implement the changes. The Mayor asked
that this information be provided by the next meeting so the City
Commission could decide on a response to the matter.
There being no further discussion, the Mayor declared the meeting
adjourned at 9:20 PM.
Maureen King, City 5