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HomeMy WebLinkAbout03-25-2015 CC MinutesCn., SE;��ASTuW HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, MARCH 25, 2015 - 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Gillmor called the City Council meeting to order at 6:30 p.m. 2. Invocation was given by Pastor Jeff Woods, Presbyterian Church. 3. The Pledge of Allegiance was led by Council Member McPartlan. 4. ROLL CALL City Council Present: Mayor Richard Gillmor Vice Mayor Jerome Adams Council Member Andrea Coy Council Member Bob McPartlan City Council Absent: Council Member Jim Hill (excused) City Staff Present: City Manager, Joe Griffin City Attorney, Robert Ginsburg City Clerk, Sally Maio Administrative Services Director, Ken Killgore Golf Course Manager, Greg Gardner Deputy Police Chief, Greg Witt E -Records & Information Manager, Barbara Brooke -Reese 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members None. 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS 15.060 A. Proclamation — Children's Week April 12-17. 2015 — Accepted by Jacki Johnson, Executive Director and John Locke, Board Member, Early Learnino Coalition of Indian River. Martin and Okeechobee Counties Mayor Gillmor read and presented the proclamation. Ms. Johnson discussed Children's Week activities, presented Council with a banner created by pre-school children, and said one is going to Tallahassee. John Locke thanked Council, said all help is greatly appreciated and that children will be our future leaders. 15.061 B. Proclamation — Lauren's Walk 2015 —Walk to Raise Awareness of Child Abuse Mayor Gillmor read the proclamation, announced that Lauren Book will be walking through Indian River County on April 3, and people are welcome to come out and walk with them as they arrive in Riverview Park at approximately 12:30 pm. Regular City Council Meeting March 25, 2015 Page Two 15.062 C. Ross Cotherman, Rehman, Robson, formally presented the CAFR which wraps up the fiscal year 2014 audit, which, he said, exceeds the governmental reporting standards minimal required general purpose statement. He also noted that the City of Sebastian has submitted for and received, through the Florida Government Finance Officers Association a certificate of excellence in financial reporting and will most likely do so again for this report, and said this shows that the commitment of the City of Sebastian, by doing extra steps, ensures that the financial statements are prepared at the highest level. Mr. Cotherman gave a brief overview of the document and offered to meet individually with any member of Council if there are specific questions. He cited specific sections of the report: the audit report on pages 13-15 including their clean unmodified opinion of the City's financial statements; a financial conditions summary and highlights on page 18; City financial statements starting on page 31; on page 74 an enhanced financial disclosure of pension and health plan offered to retirees which is a new accounting standard requirement; additional reports on internal controls and compliance on page 107, noting there is nothing they need to report that was significant weaknesses or deficiencies; and on page 119 is statistical trend 5 and 10 year history which is a nice summary of information, and includes a post communication letter as a separate correspondence and states there were no disagreements and nothing of significance to report. He noted an attachment, page Attachment Al, a comment made in regard to internal controls to remind Council to be mindful that the City has a small finance department and make sure they continue to do all they can to segregate duties, which they are aware of, and noting that Council has responsibility of oversight of management and review of financial information. He said no problems were found and that policies and procedures in place are performing adequately and there is nothing that causes alarm. He thanked the department and said they always look at the tone at the top, and the Finance Department and City Manager are making sure things are done appropriately. D. Brief Announcements 3/27/15 — Sebastian River Area Chamber of Commerce Concert in Riverview Park — Cheyenne Band — 5:30 pm to 8 pm 4/4/15 — Easter Egg Hunt in Riverview Park East — 10 am 4/4/15 — Craft Club Show in Riverview Park — 10 am to 3 pm Mayor Gillmor announced the activities listed above, and the Rotary Golf Tournament at Sebastian Municipal Golf Course on Saturday. Ms. Coy announced the Earth Day/Recycling event on April 18'" at Riverview Park for paper shredding, electronics and household goods for Sebastian residents. There will also be two other sites for household good pickup at Barber Street Sports Complex and Schumann Park. 7. CONSENT AGENDA 16-27 A. Approval of Minutes — March 11, 2015 Regular Meeting `A Regular City Council Meeting March 25, 2015 Page Three 15.063 B. Approve Contract with Advanced Roofing in the Amount of $52,111.50 Based on 28-81 Piggy Back Price from Orange County Contract No. Y12-149 and Authorize City Manager to Execute (Transmittal, Advanced Letter & Bid, Orange BCC Contract, Agreement, Orlando Bid Package On File) 15.064 C. Award Bid for Fleming Street Construction to Timothy Rose Contracting in the 82-131 Amount of $322,023 and Authorize City Manager to Execute the Contract and Appropriate/Transfer Funds from Delayed Tulip Project in the Amount of $127,023 (Transmittal, Bid Tabulation, Timothy Rose Bid, Construction Services Contract) 15.065 D. Approve Second Amendment to Lease Agreement Between Sebastian Aero 132-159 Services and City of Sebastian to Assign Airport West "Tie -Downs" for Ten Years (Transmittal, 2/23/11 Transmittal, 1s` Amendment and 2nd Amendment to Lease) 15.066 E. Authorize Mayor to Execute Sovereign Submerged Lands Lease Renewal — BOT 160-173 File No. 310343953 — Sebastian Municipal Yacht Club (Transmittal, Lease) MOTION by Ms. Coy and SECOND by Mr. McPartlan to approve the consent agenda. Roll Call: Ayes: Gillmor, Adams, Coy, McPartlan Nays: None Absent: Hill Passed: 4-0 8. COMMITTEE REPORTS & APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. Mr. Adams reported on his attendance at the Florida League of Cities sponsored Legislative Action Day on March 17`h in Tallahassee, said there was a small delegation from our area but he was the only one from Indian River County, did not get to meet personally with any of our legislators but did attend a meeting with Florida Legislators who assured them that they will try not to burden local government with new legislation. Mr. Adams also announced he met with the Treasure Coast Regional League of Cities Executive Director and accepted her request to become a member of their Advocacy Team, which will meet to go over pending bills that may adversely affect cities; reported that a bill introduced by Senator Simpson to do away with regional planning councils had been revised to reduce the number of planning councils from eleven to ten, noting that Representative Mayfield had introduced a mirror bill to his original bill and Treasure Coast Council Regional Planning Council will support Senator Simpson's revised bill and request that Representative Mayfield amend her bill. Mayor Gillmor reported that Treasure Coast Regional League of Cities met last Monday and passed a resolution to support membership on the Indian River Lagoon Council for Indian River municipalities which is in this meeting packet. He asked if Vice Mayor Adams would take the resolution to TCCLG, and Mr. Adams responded he would send it to the Chair for next Wednesday's meeting to see if there is interest. Ms. Coy reported on attendance at the Friends of the St. Sebastian River meeting at the North County Library where IRC Environmental Specialist Alexis Thomas spoke on the County's new fertilizer code, and provided a list of compliant fertilizers available in local stores. Ms. Coy suggested inviting Ms. Thomas to do a ten minute presentation to City Council. Mayor Gillmor suggested we could post the list of fertilizers on Ch 25 and Ms. Coy said we would have to obtain her permission. She asked the City Manager if we can get some copies of the list and fertilizer bumper stickers to put in the lobby. Regular City Council Meeting March 25, 2015 Page Four 9. PUBLIC HEARINGS (Lesaislative Procedures for legislative public hearings: • Mayor opens hearing • Attorney reads ordinance or resolution • Staff presentation • Public input (Anyone wishing to speak is asked to raise hand and when called, go to the podium and state name for the record) • Staff summation • Mayor closes hearing • Council deliberation and action 15.053 A. Second Readinq and Public Hearing of Ordinance No. 0-15-04 — 174-176 33 - Establishing Golf Course Rates (Transmittal, 0-15-04) AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, REPEALING SECTION 74-33 ARTICLE II OF THE CODE OF ORDINANCES PERTAINING TO MUNICIPAL GOLF COURSE RATES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. (1'' Reading 2/25/15, Legal Ad 3/11/15) The City Attorney read Ordinance No. 0-15-4 by title. The City Manager said this is the second reading of the ordinance, and if adopted, would remove the requirement for Council to adopt a resolution to set rates for the Golf Course, and instead have rates set by the Golf Course Director with approval of the City Manager. He recommend approval. Mayor Gillmor opened the hearing at 7:00 p.m. No one requested to give input, so the hearing was closed. Mayor Gillmor said he would defer to the Golf Course Director for his input, but stated this is a more efficient way of setting rates in a competitive market. The Golf Course Director said he agreed and that it becomes a price war during the summer and rates are very competitive. He said he will monitor rates and check on our immediate competition to the north and south and try to stay competitive. MOTION by Ms. Coy and SECOND by Mr. McPartlan to adopt Ordinance No. 0-15-14 repealing Section 74-33 establishing golf course rates. Roll Call: Ayes: Adams, Coy, McPartlan, Gillmor Nays: None Absent: Hill Passed: 4-0 10. UNFINISHED BUSINESS None. 11. PUBLIC INPUT New information or requests to city council not otherwise on the prepared agenda Andrea Ring, 407 Quarry Lane, Sebastian, said she has had problems with Waste Management in that at least five times they forgot to pick up her trash on Tuesday, and she calls and it gets better for a while then happens again. She said when they do pick it up yard waste it goes into a big trash truck with yard waste and goes to the landfill. 11 Regular City Council Meeting March 25, 2015 Page Five Ms. Coy and Mayor Gillmor explained to Ms. Ring that large trash trucks pick up yard waste. Ms. Ring said again they are taking it to the landfill. Mayor Gillmor said the only way she can truthfully say that is if she follows the truck to the landfill. Ms. Ring said she sees them take yard waste on Wednesday and if they don't finish their regular trash pickup they pick it up on Wednesday and put it in the same truck. Ms. Coy said she should meet with the City Manager. Mayor Gillmor said he delivered meals on wheels and a woman complained her 65 gallon bin was too large, called Mr. Griffin and he called Waste Management and they delivered a new can right away. 12. NEW BUSINESS 15.067 A. Accept Community Redevelopment Agency (CRA) Annual Report of Activities for FY 177-192 2014 as Required by FS and Announce Availability of Document to Public (Finance Director Transmittal, Annual CRA Report) The City Manager noted that acceptance of the CRA report now has to be announced by the Clerk's office (by legal ad 3/26/15 in TCPalm). MOTION by Mr. Adams and SECOND by Mr. McPartlan to accept the report. Roll Call: Ayes: Coy, McPartlan, Gillmor, Adams Nays: None Absent: Hill Passed: 4-0 15.041 B. Consider Draft IRC Lagoon Coalition Interlocal Agreement Between the Cities of 193-224 Fellsmere, Vero Beach, Indian River Shores and Sebastian for Representation on the Indian River Lagoon Council (Transmittal. Mayor Letter to Commissioner Fielding, IRC Lagoon Coalition Interlocal Agreement) The City Manager said for the past couple of meetings City Council has discussed the establishment of a council comprised of the cities within Indian River County to seek a seat on the Indian River Lagoon Council, after the County Commission voted not to sit on the Council. He said he had provided to them tonight a draft agreement to review and tell him what they like and don't like. He said he will then get with the other City Managers to finalize it and bring back in final form. MOTION by Ms. Coy to approve the substantive content. Mayor Gillmor agreed and said he thought the bulk and body of it was good. Mr. Adams said he agreed. Mr. McPartlan said he was fine with it and SECONDED the motion. The City Attorney advised that one revision will be that it will be an interlocal agreement not under FS 163.01 but rather under 163.02 and said the motion should be to accept it in substantially the form presented. Ms. Coy modified her motion. Roll Call: Ayes: McPartlan, Gillmor, Adams, Coy Nays: None Absent: Hill Passed: 4-0 15.053 C. Resolution No. R-15-07 — 225-232 Course Rates Resolution A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, REPEALING RESOLUTION R-12-04 PERTAINING TO RATES AND FEES AT THE SEBASTIAN MUNICIPAL GOLF COURSE; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Regular City Council Meeting March 25, 2015 Page Six The City Manager said now that Council had adopted the ordinance which repeals the process of setting golf course rates by resolution, they are asked to repeal the current rate resolution R-15-07. MOTION by Mr. McPar lan and SECOND by Mr. Adams to approve Resolution No. R-15-07. The City Attorney read the Resolution by title. Roll Call: Ayes: Gillmor, Adams, Coy, McPartlan Nays: None Absent: Hill Passed: 4-0 15.068 D. City Clerk Request for Council Input on Certain Audio -Visual FY 2016 CIP and 233-243 Staffing Issues (Transmittal) 1) Acoustical Treatments for Improved Council Chambers Sound The City Clerk said a tech with Vero Home Audio met with Ms. Brooke -Reese and determined that the audio problem in the room is the north curved wall but would contact a sound engineer to meet with us to make a final determination and suggest a solution which could be a wall covering. She noted that Mr. McPartlan had mentioned a city seal on the back wall and perhaps that could be incorporated into the sound solution. She said it is time to fix the problem and asked for Council comments on what it would be willing to spend to fix it and whether it was a priority to them. Mayor Gillmor said he and his wife visit the County jail once per month, and in the room they use there is a high ceiling, all concrete and steel and has an echo, and it was cured by using foam panels on each side wall which canceled out the reverberation, and perhaps mounting some of those on this wall may cure it. He said another church in Miami used a foam called T7 or T10 sprayed on a wall, is inexpensive but it may not look great. He said getting an acoustic engineer in here is the way to go. Ms. Brooke -Reese said it could be something as simple as getting panels up on that wall or placing them in other strategic locations. Mayor Gillmor said it definitely must be done. Ms. Coy said she agreed and without a speaker set up by Ms. Brooke -Reese she would not be able to hear in the room. She said it is a very high priority for her and asked Council to make it a big priority. She said she would like to see a big seal, noting Curt Oxford had given a proposal at one time for a big wood seal. Mayor Gillmor said that would be great. Mr. Adams asked about the idea of moving the speakers down, and the City Clerk said it was the ceiling speakers and would involve time and when we can get the equipment in to get up to the ceiling. Ms. Brooke -Reese said this is a priority and there is a plan to separate speakers in the ceiling for better control without risk of feedback, and when we can get the time and equipment in the room to be able to do this it will be done. Ms. Coy reiterated high priority. The City Clerk said we will include in the CIP and try to get a good price. Regular City Council Meeting March 25, 2015 Page Seven 2) ATT U -Verse Connection to Channel 25 Productions The City Clerk's office said this has been in the CIP before, was moved up and is scheduled to be in the CIP again, said recent discussions between Ms. Brooke -Reese and ATT have resulted in a cost of approximately $10K. She asked for Council input on whether they are being asked by their constituents for ATT U -Verse connection to City broadcasts, and if the connection is a priority to them, and if so, would pursue it. Mr. Adams said he had no one approach him, that $10K seemed high and asked if this was the initial output or if it included maintenance. Ms. Brooke -Reese said this is a CISCO device, which is the only one ATT supports and knowingly has knowledge of, you have to buy directly from CISCO, it has one year full support and then an annual maintenance cost of $870. She said the only other way to get your hands on the device is to go through a -bay and then you forego software and support. She said a -bay is half price but she prefers not to run it without support. Mr. Adams said again he had no requests for UVerse, we already run on Channel 25 and UStream and suggested we wait another year to see what happens. Ms. Coy said she would be disappointed if we keep putting it off, has had people contact her and she has ATT. It was confirmed to her that Comcast has no cost, and UStream costs $99 per month to remove advertising. Ms. Coy said it would be interesting to see the difference in Comcast and ATT use, because ATT use has increased because of cost. She said she is amazed at how many people watch on Comcast and would be in favor of the investment. Mayor Gillmor asked what St. Lucie County does. Mr. Adams said they use just the cable company. Mr. Adams said he is not opposed to $870 for maintenance but the $1 OK seems high. Mayor Gillmor said he was quoted $5,000, and the Clerk said it was and is still listed in the CIP for $4995, but that is through a -bay and without any support. He asked about the designated T1 line, and Ms. Brooke -Reese said once the AV and MIS Divisions separated, AV picked up an internet connection which is sufficient according to ATT and we have enough to be able to stream to them. Ms. Coy said there are two government channels on ATT UVerse right now and it may be a school board and another. Ms. Brooke -Reese said St. Lucie County has a very expensive piece of equipment that we do not have that allows them to get a signal out to ATT. Mayor Gillmor asked if we do digital, and Ms. Brooke -Reese said we are completely analog in the back and convert through an encoder to stream. The City Clerk said most of the system goes back to 2004 and it is in a future CIP to go completely digital. Mayor Gillmor asked if we go digital, would we need this equipment and Ms. Brooke -Reese said we would need a way to send out the encoded stream to ATT. The City Clerk said we can give Council a comprehensive list of what is needed and the costs, and asked again does Council want an ATT connection. Regular City Council Meeting March 25, 2015 Page Eight Mayor Gillmor said it sounds to him that on one hand it is more expensive and on the other hand it is less, because if we needed a T1 line before it would cost us $500 per month forever and now what, and Ms. Brooke -Reese said we don't need that anymore because we have our own internet line now, and now the initial cost is $10K and $870 per year maintenance. Ms. Coy said she is curious how many customers we are dealing with Mayor Gillmor asked if ATT would supply us with the equipment and Ms. Brooke -Reese said even asking the County to combine with us to ask them to provide equipment about two years ago, they said no. Mayor Gillmor said they should help us out on that and maybe we can lobby the new ATT representative. The City Clerk said she is hearing we want to move forward to connect. Mr. McPartlan asked what the cost benefit is, and do we get a franchise fee. He said he has had a couple of people who have UVerse and cannot watch so come down here to the meetings. He asked if we buy this equipment now, then switch over to digital down the road, does this carry us over or will there be an additional cost two years from now. Ms. Brooke - Reese said we should be able to adapt whatever we buy without any issues. Mayor Gillmor said he is hearing consensus of Council that we will cautiously move forward. Ms. Coy suggested we invite ATT to come here. Mayor Gillmor agreed. The City Manager said there is a communications tax that is a pass through that customers pay, that about ten years ago all franchise fees were done away with. Mayor Gillmor again said he would ask them for help 3) Social Media — Facebook. Twitter, Etc The City Clerk said there is a department that uses FB and one wants to use it, and asked Council if they are ready for social media. She said it has risks and if we do start, we need to have archiving software and support to retain records, and will need a social media policy in place. Mr. Adams said there is no way around it with younger people and the methods they use to communicate and we need to be able to track and capture all of that, and capture texts if we use that, noting there is software out there like Archive Social. The City Manager said he worries about public records law, and misuse but if there are safeguards we can put in place, and if it is the consensus of Council, we will do it. Ms. Coy said maybe we can walk into this slowly and watch what is happening elsewhere, would not be adverse to FB as long as it is one-way, no conversation, no comments, because we don't have the personnel to deal with it. Ms. Brooke -Reese said it is her plan to set up FB with one way communication and use Archive Social to archive for us if we move forward. Regular City Council Meeting March 25, 2015 Page Nine The City Clerk said we do not allow texting on our city cell phones at this point. Ms. Brooke - Reese said MIS would be the division that would deal with texting. The City Clerk said let's take baby steps and start with Facebook. Ms. Coy agreed and said we need education for the public to understand the legalities of social media. The City Clerk said we will get started, she would get with the City Attorney and bring back a social media policy that will protect us. 4) Public Emails — Removal from Outlook to Barracuda Archive Software The City Clerk said MIS is waiting for us to move our public emails out of Outlook to enable them to do some upgrades that they cannot do until they are moved, that AV will purchase Barracuda software to manage and retain public emails which have become the primary source of communication and need to be managed better. Ms. Brooke -Reese said the cost will be $1800 per year. 5) Live Broadcasts of all City Committee Meetings and Other CH Programming Ideas The City Clerk said we have a lot of committees, there is a lot of broadcast time and that the governments to our south have their meetings during the day which makes it easier for staff because they are here, and since we have primarily night meetings it creates strain on staff and staff will need to be enhanced. She said she will be gone by February and wanted to be sure that the City Clerk staff has the tools and people they need to do the job, and said again, we need staff. She said there are currently only two staff doing City Clerk functions and now we have AV and Ms. Brooke -Reese spends many hours, watches on weekends and the City is lucky to have her, but she needs an assistant who can learn what she does so they can troubleshoot when she is not here. 6) New Server for AV The City Clerk said they split up MIS and AV in an effort to isolate AV and protect access to MIS, but we need a new AV server and it is an absolute need. Ms. Coy asked what version of Microsoft we are running. Ms. Brooke -Reese said Office is 2010 but the Exchange Server, which controls all emails is 2007 and we are stuck there because of what Microsoft did to public folders and will no longer support them. The City Clerk thanked them for their time. Mr. Adams asked if there was the possibility that certain committees may be able to have their meetings during daytime hours. The City Clerk said it is hard to say because everyone has gotten so used to night meetings in Sebastian for many years, and we checked with Vero and the County, their meetings are during the day, but our working people in Sebastian appreciate the night meetings, and did not know what would be acceptable to the people in Sebastian who are on committees. Ms. Coy said it would limit it us to retirees. 17 Regular City Council Meeting March 25, 2015 Page Ten Mr. Adams asked if our committees are mostly retired people. The City Clerk said our Veterans Advisory Committee meets during the day and primarily they are retired people, our Disabilities Committee may meet during the day, and the Youth Advisory Council will meet in the afternoons before Council meetings, so we are moving a little bit in that direction, but not for all of them. Ms. Coy said a lot of her appointees are working people, and would disagree that our boards are mostly retired people. Mr. McPartlan asked if it was necessary to televise all of our meetings. Ms. Coy and Mayor Gillmor said that is a very good question. Mayor Gillmor said Fellsmere Council does not even televise its Council meetings. The City Clerk said this process has gone back and forth over the years, that in 2004 the idea was to broadcast all meetings using Barbour Multimedia, then when the economy fell it was limited to Council and PZ and then Council decided to broadcast all and we started using AV Techs. She said it becomes difficult for the techs, who make little money and what they do is quite difficult. She said she sometimes wonders if it is necessary to broadcast all of the meetings, stating the City has been very good to the public with more out there than anyone around and has done a good job of promoting what the City does through the media. Mayor Gillmor said the idea is how many people are watching it, how many are on Comcast and how may are watching. Ms. Coy said she gets a lot of feedback and it is a lot and she can't believe how many are watching. She suggested agendizing this to get feedback, cited what the County does and said she would be willing to consider that but would want adequate feedback. She agreed we have been leading the way on this, and it is commendable, but are we going too far and we should let the public comment. Mr. McPartlan said we need to look at the cost too. The City Clerk said we are getting ready to do a six month report and we were going to include that in there. She asked if a survey could go in the newsletter. The City Clerk said this is nothing we need to change right away but it would be nice to know who is watching, and get the word out to people to see. Ms. Brook -Reese said we could do a web survey. Mr. McPartlan said it would be nice to know who our audience is. Mr. Adams said we are going contrary to our previous discussion regarding expanding to UVerse to widen viewership and now talking about do we want to televise all of our meetings, and why would we want to cut what we are showing. Mr. McPartlan said you are looking at cost on staff and if it is going to raise the cost by adding two boards, so we are looking at man hours, and some of those boards are not as widely watched as other boards. Ms. Coy said she looks at it as a prioritization, noting we have some boards who meet semi- annually, some meet once a quarter, and their relative import to specific activities, and which 10 Regular City Council Meeting March 25, 2015 Page Eleven one has more relevance to the public, so she sees it not as trying to take away audience but being practical and prioritizing those most relevant to the public. Mr. Adams said what might be relevant to one might not be relevant to another, and it is about keeping citizens informed, and if you take one away you are going to upset somebody. Ms. Coy suggested these topics both deserve further discussion. Mayor Gillmor suggested we agendize this at a later time and the City Clerk said she would put together some more information, and run a website survey. 7) Laserfiche Imaging System — 5 New User Licenses Not addressed. 13. CITY ATTORNEY MATTERS The City Attorney noted despite information available on social media, Vero Beach Magazine, which puts out guides for golf courses, and Vero Beach 32963, in articles about local public courses, both failed to list the Sebastian Municipal Golf Course. 14. CITY MANAGER MATTERS The City Manager requested and received approval for relocation of ducks from the Easy Street Park. Ms. Coy said people need to be clear that this does not authorize anyone to remove the ducks on their own and the focus is on the Muskogee ducks. The City Manager reported on the scheduled City Council/City Boards and Committees workshop on April 15th at 6 pm to hear a seminar by Marilyn Crotty, Director of Florida Institute of Government at UCF by all members of boards and committees who have been invited, followed by an opportunity for Council to give direction to boards and committee members. 15. CITY CLERK MATTERS None. 16. CITY COUNCIL MATTERS A. Council Member Hill - Absent B. Council Member McPartlan - None C. Mayor Gillmor Mayor Gillmor reported that Treasure Coast Regional League of Cities has awarded mini - grants for schools, in much the same way we did in years past with FLC grants, a TCRLC grant has been awarded to the Sebastian Charter JHS and 60 students will visit City Hall for a tour and to conduct a mock meeting on April 22°' at 9 am. He said he presented in civics classes yesterday at Storm Grove Middle School along with Mr. McPartlan and others and they too were awarded a mini -grant to conduct a similar tour and mock meeting and will do so in May. He noted that each year, each city will have two grants available. 11 Regular City Council Meeting March 25, 2015 Page Twelve D. Vice Mayor Adams Mr. Adams reported he is still working on the Youth Advisory Council, has been in contact with the middle and high schools, and is advising them to have all forms filled out and sent in to Clerk's office so that the Council can have a first meeting in April. Mr. Adams reported that some street name signs are faded and hard to read and asked if they can be looked into. The City Manager said there is a plan in place to replace all signs over time, noting all are on GIS, and if Mr. Adams had a list of some that are really bad to give him a call with the locations. E. Council Member Coy Ms. Coy reported that Indian River County awarded a new agreement to Waste Management and County customers will go to once per week pickup and this does not affect the city's franchise with Waste Management which is twice per week regular trash pickup. She said she was pleased the County awarded to Waste Management and hope we get natural gas discussions going and in regard to the new one stream recycling and asked if the City Manager can get us the new recycle bins which will be only one wheeled bin because she would like Sebastian to be first in line. She said if you are recycling there is no reason to fill up a 64 gallon trash bin. Mr. McPartlan said he and his family recycle and only fill up one trash bin per week. 17. Being no further business, Mayor Gillmor adjourned the Regular meeting at 8:14 p.m. Approved at the April 8, 2015 Regular Meeting. By. Richbrd H. Z3#/mor, Mayor ATTE T.Q& - Sally A. Maio, M C - City Clerk 12 P1.4 Robson Rehmann 5070 No SU70 Northann h Highway A1A Suite 250 Vero Beach, FL 32863 Ph: 772.234,8484 Fx: 772.234.8488 rehmann.com INDEPENDENT AUDITORS' COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE March 16, 2015 To the City Council City of Sebastian, Florida We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Sebastian, Florida (the "City") as of and for the year ended September 30, 2014, and have issued our report thereon dated March 13, 2015. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation_to the _Financl Sta ement As communicated in our engagement letter dated December 10, 2014, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance. about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of intemal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We have provided our findings regarding internal control over financial reporting and compliance noted during our audit in a separate letter to you dated March 13, 2015. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter and in our meeting about planning matters on March 4, 2015. Rehman Is an Independent member of Nana International. CPAs & Consultanis Wealth Adviscrs Corporate Investigators To the City Council City of Sebastian, Florida March 16, 2015 Page 2 Compliance with All Ethics Reautrements ReeardUnp—Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence. Qualitative Asoects of the Citv's Sianificant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. For the fiscal year ended September 30, 2014, the City implemented Statement of Governmental Accounting Standards (GASB Statement) No. 67, Financial Reporting for Pension Plans. This standard had no impact on beginning equity of the City, but provided for expanded disclosures on the City's pension plan in the footnotes and required supplemental information. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. The notes to the financial statements contain a more complete description of this transaction. No matters have come to our attention that would require us, under professional standards, to inform you about the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements were: ■ Management's estimate of the useful lives of depreciable capital assets is based on the length of time it is believed that those assets will provide some economic benefit in the future. ■ Management's estimate of the accrued compensated absences is based on current hourly rates and policies regarding payment of sick and vacation banks. ■ The assumptions used in the actuarial valuations of the pension and other postemployment benefits plans are based on historical trends and industry standards. We evaluated the key factors and assumptions used to develop these estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. To the City Council City of Sebastian, Florida March 16, 2015 Page 3 Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The material misstatements detected as a result of audit procedures and corrected by management are described in Attachment A to this letter. The schedule of adjustments passed is included with management's written representations in Attachment C to this letter, and summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditors' report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in Attachment C to this letter. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters. Findings. or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors. To the City Council City of Sebastian, Florida March 16, 2015 Page 4 Other Information in Documents Containing Audited Financial Statements Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary Information is fairly stated, in all material respects, in relation to the financial statements as a whole. We made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Uucoming Changes in Accounting Standards Generally accepted accounting principles (GAAP) are continually changing in order to promote the usability and enhance the applicability of information included in external financial reporting. While it would not be practical to include an in-depth discussion of every upcoming change in professional standards, Attachment B to this letter contains a brief overview of recent pronouncements of the Governmental Accounting Standards Board (GASB) and their related effective dates. Management is responsible for reviewing these standards, determining their applicability, and implementing them in future accounting periods. This information is intended solely for the use of the governing body and management of the City of Sebastian and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, LAG CITY OF SEBASTIAN T�77 77 J For the September 30, 2014 Audit During our audit, we became aware of certain other matters that are opportunities for strengthening intemal control and/or improving operating efficiency. This memorandum summarizes our comments and recommendations regarding those matters. Our consideration of the Citys internal control over financial reporting is described in our report, dated March 13, 2015, issued in accordance with Government Auditing Standards. This memorandum does not affect that report or our report dated March 13, 2015, on the financial statements of the Citv of Sebastian. Seweeatfon of incompatibie Duties Due to the loss of a member of the Finance Department late in the fiscal year, the segregation of incompatible duties has become more difficult. As the City continues to rework its processes, we suggest that extra care be taken to ensure that no single individual has the ability to authorize, record, and maintain custody of assets resulting from a transaction. A-1 CITY OF SEBASTIAN gg For the September 30, 2014 Audit The following pronouncements of the Governmental Accounting Standards Board (GASB) have been released recently and may be applicable to the City in the near future. We encourage management to review the following Information and determine which standard(s) may be applicable to the City. For the complete text of these and other GASB standards, visit www.gasb.org and click on the "Standards 8 Guidance" tab. If you have questions regarding the applicability, timing, or implementation approach for any of these standards, please contact your audit team. GASB 68 ■ Accounting and Financial Reporting for Pensions Effective 06/1512015 (your FY 2015) This standard establishes new requirements for governments to report a "net pension liability" for the unfunded portion of its pension plan. Governments that maintain their own pension plans (either single employer or agent multiple -employer) will report a liability for the difference between the total pension liability calculated in accordance with GASB 67 and the amount held in the pension trust fund. Governments that participate in a cost sharing plan will report a liability for their "proportionate share" of the net pension liability of the entire system. Historically, governments have only been required to report a net pension obligation to the extent that they have not met the annual required contribution (ARC) In any given year. Upon Implementation of this standard, governments will be required to report a net pension liability based on the current funded status of their pension plans. This liability would be limited to the government -wide financial statements and proprietary funds. Changes In this liability from year to year will largely be reflected on the income statement, though certain amounts will be deferred and amortized over varying periods. GASB 68 also requires more extensive note disclosures and required supplementary Information, including 10 years of historical information. The methods used to determine the discount rate (the assumed rate of return on plan assets held In trust) are mandated and must be disclosed, along with what the impact would be on the net pension liability If that rate changed by 1% in either direction. Other new disclosure requirements include details of the changes in the components of the net pension liability, comparisons of actual employer contributions to actuarially determined contributions, and ratios to put the net pension liability In context. For single -employer and agent multiple -employer plans, the Information for these statements will come from the annual actuarial valuation. For cost sharing plans, this information will be derived from the financial reports of the plan Itself, multiplied by the government's proportionate share of plan. GASB 67 and 68 are only applicable to pension plans. However, the GASB has announced its intent to issue similar standards for other postemployment benefits (e.g., retiree healthcare) on a two year delay from these standards. B-1 fe M � aA � SLS °N� 30, 2014 GASB 69 ■ Government Combinations and Disposals of Government Operations Effective 1211512014 (your FY 2015) This standard provides detailed requirements for the accounting and disclosure of various types of government combinations, such as mergers, acquisitions, and transfers of operations. The guidance available previously was limited to nongovernmental entities, and therefore did not provide practical examples for situations common in government -specific combinations and disposals. The accounting and disclosure requirements for these events vary based on whether a significant payment is made, the continuation or termination of services, and the legal structure of the new or continuing entity. Given the infrequent nature of these types of events, we do not expect this standard to have any impact on the City at this time. GASB 70 ■ Nonexchange Financial Guarantees Effective 0611512014 (your FY 2014) This standard addresses the accounting and disclosure of situations in which one government offers a financial guarantee on behalf of another government, not-for-profit organization, private entity, or individual without directly receiving equal or approximately equal value in exchange (a nonexchange transaction). A government that extends a nonexchange financial guarantee will be required to recognize a liability when qualitative factors and/or historical data indicate that it is "more likely than not" that the government will be required to make a payment on the guarantee. It further requires governments to disclose any outstanding financial guarantees in the notes to the financial statements. We do not expect GASB 70 to have any significant impact on the City at this time. GASB 71 ■ Pension Transition for Contributions Made Subsequent to the Measurement Date Effective with the Implementation of GASB 68 This standard is an amendment to GASB 68, and seeks to clarify certain implementation issues related to amounts that are deferred and amortized at the time GASB 68 is first adopted. It applies to situations in which the measurement date of an actuarial valuation differs from the government's fiscal year. GASB 72 ■ Fair Value Measurement and Application Effective 0611512016 (your FY 2016) This standard defines "fair value" as the price that would be received to sell an asset in an orderly transaction between market participants (an "exit price"). Fair value measurement is currently applied principally to investments, which GASB 72 does not change. However, it does introduce specific methods for measuring fair value when a market price is not readily available, and establishes a 3 -level hierarchy of fair value that is disclosed in the footnotes, based on the presence or absence of observable market inputs. B-2 CITY OF SEBASTIAN N 30, 2014 2 CFR 200 ■ Uniform Guidance for Federal Awards Cost Principles Effective 12126/2014; Single Audit Requirements Effective 12/26/2015 (your FY 2016, The Office of Management and Budget (OMB) has consolidated seven separate circulars (including administrative requirements, cost principles, and audit requirements) into a single federal regulation. The new Uniform Guidance covers all aspects of federal grants from pre -award through the single audit. While much of the guidance was simply reorganized and recodified, there were also several substantive changes to the single audit thresholds. A single audit will now only be required if total expenditures of federal awards exceed $750,000 (up from $500,000). The OMB has indicated that further changes to the single audit will be announced in 2015. In addition, the Uniform Guidance now explicitly requires grant recipients to have sound intemal controls that are consistent with the COSO framework and documented procedures for grant administration. Rehmann is available to assist grant recipients in developing/documenting these policies and procedures in compliance with the new requirements. B-3 CITY OF SEBASTIAN IL: For the September 30, 2014 Audit Following are the written representations that we requested from management. C-1 CITY OF SEBASTIAN For the September 30, 2014 Audit In accordance with generally accepted auditing standards, we have prepared the following schedule of proposed audit adjustments, which we believe are immaterial both individually and in the aggregate. We are providing this schedule to both management and those charged with governance to receive their assurance that they agree that the amounts listed below are not material to the financial statements, either individually or in the aggregate, and do not need to be recorded. General fund Unposted A/P accrual Gas cards for FD - late Invoice Total general fund Fund name Unposted prior accrual Fund name Unposted prior accrual Governmental activities cif! � �}_-'1 RIP., �; E-r iti �1! 3 I Li �) RIP., I., $ (2,947) S . S . $ (2,947) $ . $ (2,947) $ . $ . $ $ . $ - $ . S . $ Cumulative effect of items $ - S (2,947) $ - $ - $ (1,947) Misstatement as a percentage of total assets- governmental 0.00000% -0.00538% 0.00000% 0.00000% •0.00538% activities C-2