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HomeMy WebLinkAbout03-28-2018 CC Agenda w CRACOYoF SEBASTL HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL REGULAR MEETING & COMMUNITY REDEVELOPMENT AGENCY AGENDA WEDNESDAY, MARCH 28, 2018 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA ITEMS MAYBE INSPECTED IN THE OFFICE OF THE CITY CLERK 1225 MAIN STREET, SEBASTIAN, FLORIDA OR ON THE CaY WEBSITE Procedures for Public Input are on Back of Agenda 1. CALL TO ORDER 2. MOMENT OF SILENCE 3. PLEDGE OF ALLEGIANCE - Led by Council Member lovino 4. ROLL CALL 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 18.041 18.042 18.043 18.044 18.045 pgs 5-18 7 pg 19 A. Presentation by Judy Burgarella, Sebastian River Art Club B. Proclamation - Red Cross Month - March 2018 - Accepted by Ben Trautman, Community Volunteer Leader, American Red Cross Red Cross C. Proclamation - Water Conservation Month - April 2018 - Accepted by Abby Johnson, Intergovernmental Coordinator, St. Johns River Water Management District D. Proclamation - National Public Safety Telecommunicators' Week - April 8-14, 2018 - Accepted by a City of Sebastian 911 Operator E. Presentation of Fiscal Year 2017 Comprehensive Annual Financial Report (CAFR and Annual City Audit by City Auditor, Rehmann Robson (Transmittal, Report, Letter) Brief Announcements March 31 - Easter Egg Hunt — Riverview Park — 10 am to Noon April 7 — Sebastian Craft Club Show — Riverview Park — 10 am to 3 pm Recess Citv Council Meetina and Convene as Communitv Redevelopment Aaenc)f A. Call to Order B. Approval of March 14, 2018 CRA Meeting Minutes 1 of 189 18.046 C. Fiscal Year 2017 CRA Annual Report in Accordance with F.S. 1 63.356(3)(c) Accept pgs 20-35 and Forward to City Council (Transmittal, Report) 18.016 D. Award Work Authorization #1 Under the Continuing Services Agreement with pgs 36-40 Redevelopment Management Associates (RMA) in Amount of $46,000 for the CRA Master Plan Update (Transmittal, WA#1, Scope) 18.021 E. Consider, Discuss, and Direct Staff on Property Possibilities for 1215 Indian River pg 41 Drive (Transmittal) 8. Adiourn Communitv Redevelopment Aqencv Meetinq and Reconvene as City Council 9. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he/she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. pgs 42-52 A. Approval of Minutes — March 14, 2018 Regular City Council Meeting 18.045 B. Authorize the City Manager to Execute an Extension Agreement with Rehmann pgs 53-83 Robson, LLC to Provide Comprehensive Annual Financial Reports and Single Audits for Two Additional Years (Transmittal, Letter, FS218.391) 18.046 C. Accept Community Redevelopment Agency (CRA) Annual Report of Activities for pgs 84-99 FY2017 as Required by FS and Announce Availability of Document to Public (Transmittal, Report) 18.047 D. Authorize Mayor to Sign and Deliver Letters to Federal Legislators Regarding Sober pgs 100-108 Homes (Transmittal, Letters) 18.024 E. Resolution No. R-18-07 — Florida Inland Navigation District (FIND) Waterways pgs 109-113 Assistance Program Grant Request for Shoreline Improvements at the Working Waterfront (Transmittal, R-18-05, R-18-07) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, INDIAN RIVER COUNTY, SUPPORTING THE CITY'S FIND GRANT APPLICATION SEEKING FUNDS TO MAKE IMPROVEMENTS TO THE WORKING WATERFRONT SHORELINE AND PARKING LOCATED AT FISHERMAN'S LANDING SEBASTIAN, PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. 10, 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. 11. PUBLIC HEARINGS - None 12. UNFINISHED BUSINESS 18.010 A. Award Agreement to ADS Security in the Amount of $76,628 for the Purchase and pgs 114-150 Installation of Security Cameras and Video Monitoring/Recording Equipment at the Sebastian Municipal Airport (Transmittal, R-18-01, Agreement, Bid Tab) 18.048 B. Set Date for Public Hearing — Stormwater Utility Fee (Transmittal, Assessment, Map) pgs 151-164 2of189 13. PUBLIC INPUT New information or requests to City Council not otherwise on the prepared agenda 14. NEW BUSINESS 18.049 A. Authorize the City Manager to Execute a Lease Addendum with National Aperture pgs 165-187 Allowing an Extension of Their Original Airport Lease Terms on a Month -to -Month Basis (Transmittal, Lease, Addendum) 18.050 B. Direct Process for Selection of Grand Marshall of the 4th of July Parade (Transmittal, pgs 788-189 Order, Committee) 15. CITY ATTORNEY MATTERS 16, CITY MANAGER MATTERS 17. CITY CLERK MATTERS 18. CITY COUNCIL MATTERS A. Mayor Hill B, Vice Mayor Kinchen C. Council Member Dodd D. Council Member lovino E. Council Member McPartlan 19. ADJOURN (Ali meetings shall adjourn at 9:30 p.m. unless extended for up to one half hour by a majority vote of City Council) HEARING ASSISTANCE HEADPHONES ARE AVAILABLE IN THE COUNCIL CHAMBERS FOR ALL GOVERNMENT MEETINGS. All City Council Meetings are aired live on Comcast Channel 25, ATT UVerse Channel 99 and streamed on City of Sebastian Website www.cityofsebastian.org. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (F. S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. Future Council Meetina Dates: April 4, 2098 City Council Workshop — 2:00 p.m. April 4, 2018 Special City Council Meeting — 5:00 p.m. April 11, 2018 Regular City Council Meeting — 6.00 p.m. April 25, 2018 Regular City Council Meeting — 6:00 p.m. May 9, 2018 Regular City Council Meeting — 6:00 p.m. May 23, 2018 Regular City Council Meeting — 6:00 p.m. 3 of 189 PROCEDURES FOR PUBLIC INPUT IN ACCORDANCE WITH RESOLUTION R-15-10 Reaular Citv Council Meetinas Public input is ALLOWED under the headinas: ✓ Consent Agenda ✓ Public Hearings ✓ Unfinished Business ✓ New Business ✓ Public Input Public input is NOT ALLOWED under the headinas: ✓ Proclamations, Awards, Brief Announcements (except for individuals giving or accepting proclamations or awards); ✓ Committee Reports and Appointments (except for committee members giving reports and applicants being interviewed for committee appointments); ✓ City Council Matters ✓ Charter Officer Matters Council may, by majority vote, call upon an individual to provide input if desired. Workshops and Special Meetinas. Public input is limited to the item on the agenda Time Limit Input on agenda items where public input is permitted on agendas is 'FIVE MINUTES; however, City Council may extend or terminate an individual's time by majority vote of Council members present. Input Directed to Chair Speakers shall address the City Council IMMEDIATELY PRIOR TO CITY COUNCIL DELIBERATION of the agenda item and ALL INPUT SHALL BE DIRECTED TO THE CHAIR, unless answering a question of a member of City Council or City staff. Individuals shall not address City Council after commencement of City Council deliberation on an agenda item after public input has concluded, provided, however, the Mayor and members of City Council may recall an individual to provide additional information or to answer questions. Certain Remarks Prohibited Personal, impertinent, and slanderous remarks, political campaigning and applauding are not permitted and may result in expulsion from the meeting. The Chair shall make determinations on such remarks, subject to the repeal provisions below. Appealing Decisions of Chair Any member of Council may appeal the decision of the Chair to the entire Council. A majority vote of City Council shall overrule any decision of the Chair. Public Input Heading on Aaenda The heading on Regular Meeting agendas "Public Input" provides an opportunity for individuals to bring NEW INFORMATION OR REQUESTS TO CITY COUNCIL NOT OTHERWISE ON THE PREPARED AGENDA. Individuals are asked to attempt to resolve matters with staff prior to meetings. Individuals are asked to provide copies of material for Council one week prior to the meeting if they intend to refer to specific material. City Council will not debate an issue during Public Input but may by consensus direct a Charter Officer in regard to the item if necessary or place a requested item on a future agenda. 4 of 189 MOF SEBASTLkN HOME OF PELICAN ISLAND COUNCIL MEETING DATE AGENDA ITEM TITLE: RECOMMENDATION: CITY COUNCIL AGENDA TRANSMITTAL 28 March 2018 FY 2017 Comprehensive Annual Financial Report (CAFR) and Annual City Audit. Receive and Review the Auditor's Report on the CAFR and the Annual City Audit. BACKGROUND: Florida Statute 218.39 requires the City to have an annual financial audit. In 2011, the independent audit firm of Rehmann Robson (Rehmann) was competitively selected to perform the City's audit. In 2016, Council approved a two year extension of the original five year agreement with Rehmann. The City CFO, and Staff, has been pleased with Rehmann's services and wish to continue with Rehmann. Auditing standards require that the auditors provide a letter to the governing body covering significant matters related to the audit. The FY2017 Annual Financial Report can be accessed via the City's website. In addition, this year, a "single audit" was required and that report can also be accessed on the City's website. The CAFR and `Single Audit' will be provided to Council under separate cover. IF AGENDA ITEM REOUIRES EXPENDITURE OF FUNDS: Total Cost: $38,000, plus $3,500 (for Single Audit) Total: $41,500 Amount Budgeted in Current FY: $41,658 Amount of Appropriation Required: None Fund to Be Utilized for Appropriation: General Fund and Enterprise Funds Administrative Services Department/CFO Review: 4 �� � ATTACHMENTS: Rehmann Robson letter — 20 March 2018 City Manager Authorization: / T Date: 22 March 2018 5 of 189 KRobson Nehmann 5070 North Highway AlA, 5070 No Suite 250 Vero Beach, FL 32963 Ph: 772.234.8484 Fx: 772.234.8488 rehmann. cam INDEPENDENT AUDITORS' COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE March 20, 2018 To the City Council City of Sebastian, Florida We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Sebastian (the "City") as of and for the year ended September 30, 2017, and have issued our report thereon dated March 20, 2018. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibilitv in Relation to the Financial Statement Audit As communicated in our engagement letter dated February 18, 2016, 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 internal 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 20, 2018. Planned Scooe 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 December 12, 2017. Compliance with All Ethics Reauirements Reeardine Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence. Rehmann is an mdepenctont membet of Nexia International. Nexia 6 of 189 City Council City of Sebastian, Florida March 20, 2018 Page 2 Qualitative Aspects of the Citv's Significant 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. There have been no initial selections of accounting policies and no changes in significant accounting policies or their application during the year. 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. 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. 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, 7 of 189 City Council City of Sebastian, Florida March 20, 2018 Page 3 corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. The schedule of adjustments passed is included with management's written representations in Attachment B 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 B 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. 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. City Council City of Sebastian, Florida March 20, 2018 Page 4 Upcoming 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 A 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, 4L4 Ckux. LLC 9 of 189 CITY OF SEBASTIAN Attachment A - Upcoming Changes in Accounting Standards / Regulations For the September 30, 2017 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 B Guidance" tab. if you have questions regarding the applicability, timing, or implementation approach for any of these standards, please contact your audit team. GASB 75 ■ Postemployment Benefits Other than Pensions Effective 0611511018 (your FY 2018) This standard builds on the requirements of GASB 74 by requiring employers that provide other postemployment benefits (OPEB) to recognize a net OPEB liability on their statements of net position. It mirrors the new accounting and financial reporting requirements of GASB 68 for pension benefits. GASB 83 ■ Certain Asset Retirement Obligations Effective 06/15/2019 (your FY 2019) This standard addresses accounting and financial reporting for certain asset retirement obligations --legally enforceable liabilities associated with the retirement of a tangible capital asset. We do not expect this standard to have any significant effect on the City. GASB 84 ■ Fiduciary Activities Effective 121 1512019 (your FY 2019) This standard establishes new criteria for determining how to report fiduciary activities in governmental financial statements. The focus is on whether the government is controlling the assets, and who the beneficiaries are. tinder this revised standard, certain activities previously reported in agency funds may be reclassified in future periods. Due to the number of specific factors to consider, we will continue to assess the degree to which this standard may impact the City. GASB 85 0 omnibus 2017 Effective 06/15/2018 (your FY 2018) This standard includes a variety of small technical revisions to previously issued GASB statements. We do not expect this standard to have any significant effect on the City. GASB 86 ■ Certain Debt Extinguishment Issues Effective 0611512018 (your FY 2018) This standard provides guidance for reporting the in -substance defeasance of outstanding debt obligations using existing resources. Qualifying transactions will remove both the assets placed into trust and the related debt obligation from the government's statement of net position. We do not expect this standard to have any significant effect on the City. Al 10 of 189 CITY OF SEBASTIAN Attachment A - Upcoming Changes in Accounting Standards / Regulations For the September 30, 2017 Audit GASB 87 ■ Leases Effective 1211512020 (your FY 202 1) This standard establishes a single model for reporting all leases {including those previously classified as operating and capital). Lessees will now report offsetting intangible lease assets and lease liabilities equal to the present value of future lease payments. Lessors will report offsetting lease receivables and deferred inflows of resources. A2 11 of 189 CITY OF SEBASTIAN Attachment B - Management Representations For the September 30, 2017 Audit The following pages contain the written representations that we requested from management. 12 of 189 � an c .7�'' `+ HOME OF PEUCAN 15" March 20, 2018 Rehmann Robson 5070 North Highway A1A, Suite 250 Vero Beach, FL 32963 This representation letter is provided in connection with your audit of the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Sebastian, Florida (the "City"), as of and for the year ended September 30, 2017, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, and the respective budgetary comparison for the General Fund and each major special revenue fund of the City in conformity with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). Certain representations in this letter are described as being Limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. We confirm that, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of March 20, 2018: Financial Statements 1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated February 18, 2016 for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. We have reviewed, approved, and taken responsibility for the financial statements and related notes. 2. We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. 3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. 6. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. For the purposes of this letter, related parties mean members of the governing body; board members; administrative officials; immediate families of administrative officials, board members, and members of the governing body; and any companies affiliated with or owned by such individuals. 13 of 189 Rehmann Robson Page 2 of 6 7. All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. 8. The effects of uncorrected misstatements summarized in the attached schedule and aggregated by you during the current engagement are immaterial, both individually and in the aggregate, to the applicable opinion units and to the financial statements as a whole. 9. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP. 10. With regard to items reported at fair value: a. The underlying assumptions are reasonable and they appropriately reflect management's intent and ability to carry out its stated courses of action. b. The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. c. The disclosures related to fair values are complete, adequate, and in conformity with U.S. GAAP. d. There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. 11. All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. 12. All funds and activities are properly classified. 13. All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, and GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis -- for State and Local Governments: Omnibus, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. 14. All components of net position and fund balance classifications have been properly reported. 15. AU revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 16. All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. 17. All interfund and intra -entity transactions and balances have been properly classified and reported. 18. Special items and extraordinary items have been properly classified and reported. 19. Deposit and investment risks have been properly and fully disclosed. 20. Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated. 21. All required supplementary information is measured and presented within the prescribed guidelines. 22. We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances. Information Provided 23. We have provided you with: a. Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; b. Additional information that you have requested from us for the purpose of the audit; and 14 of 189 Rehmann Robson Page 3 of 6 c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 24. All transactions have been recorded in the accounting records and are reflected in the financial statements. 25. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 26. We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. Others where the fraud could have a material effect on the financial statements. 27. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, vendors, regulators, or others. 28. We hove disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements and we have not consulted legal counsel concerning litigation or claims. 29. We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. 30. There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. 31. The government has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 32. We have disclosed to you all guarantees, whether written or oral, under which the government is contingently liable. 33. We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. 34. There are no: a. Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. b. Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB -62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AiCPA Pronouncements. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB -62. 35. The government has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you. 36. We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 37. We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB -62. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. 15 of 189 Rehmann Robson Page 4 of 6 Supplementary information in Relation to the Financial Statements as a Whole 38. With respect to the supplementary information accompanying the financial statements: a. We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. b. We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. c. The methods of measurement or presentation have not changed from those used in the prior period. d. We believe the significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. Required Supplementary Information 39. With respect to the required supplementary information accompanying the financial statements: a. We acknowledge our responsibility for the presentation of the required supplementary information in accordance with accounting principles generally accepted in the United States of America. b. We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with accounting principles generally accepted in the United States of America. c. The methods of measurement or presentation have not changed from those used in the prior period. d. We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. CHAPTER 10.550, RULES OF THE AUDITOR GENERAL 40. With respect to state projects, we represent the following to you: a. We are responsible for understanding and complying with and have complied with the requirements of Chapter 10.550, Rules of the Auditor General. b. We are responsible for the preparation and presentation of the schedule of expenditures of state projects in accordance with Chapter 10.550, Rules of the Auditor General. c. We believe the schedule of expenditures of state projects, including its form and content, is fairly presented in accordance with Chapter 10.550, Rules of the Auditor General. d. The methods of measurement or presentation have not changed from those used in the prior period. e. We believe the significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of state projects, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances. f. We are responsible for including the auditor's report on the schedule of expenditures of state projects in any document that contains the schedule and that indicates that the auditor has reported on such information. g. When the schedule of expenditures of state projects is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the schedule of expenditures of state projects no later than the date of issuance by the entity of the schedule of expenditures of state projects and the auditor's report thereon. 16 of 189 Rehmann Robson Page 5 of b h. We have, in accordance with Chapter 10.550, Rules of the Auditor General, identified in the schedule of expenditures of state projects, expenditures made during the audit period for all awards provided by state agencies in the form of grants, state cost -reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, food commodities, direct appropriations, and other assistance. i. We are responsible for complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our state programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major state program; and we have complied, in all material respects, with these requirements. j. We have provided to you our interpretations of any compliance requirements that have varying interpretations. k. We are responsible for establishing and maintaining effective internal control over compliance requirements applicable to state programs that provide reasonable assurance that we are managing our state projects in compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a material effect on our state programs. Also, no changes have been made in the internal control system to the date of this letter that might significantly affect internal control, including any corrective action taken with regard to significant deficiencies, including material weaknesses, reported in the schedule of findings and questioned costs. L We have made available to you all contracts and grant agreements (including amendments, if any) and any other correspondence with state agencies or pass-through entities relating to state programs. m. We have received no requests from a state agency to audit one or more specific programs as a major program. n. We have identified and disclosed to you all amounts questioned and any known noncompliance with the requirements of state projects, including the results of other audits or program reviews. We also know of no instances of noncompliance occurring subsequent to the end of the period audited. o. We have charged costs to state projects in accordance with applicable cost principles, including amounts claimed or used for matching determined in accordance with relevant guidelines in Chapter 10.550, Rules of the Auditor General. p. We have made available to you all documentation related to the compliance requirements, including information related to state program financial reports and claims for advances and reimbursements. q. State program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared (and are prepared on a basis consistent with the schedule of expenditures of state projects). r. The copies of state program financial reports provided to you are true copies of the reports submitted, or electronically transmitted, to the respective state agency or pass-through entity, as applicable. s. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by Chapter 10.550, Rules of the Auditor General, and we have provided you with all information on the status of the follow-up on prior audit findings by state awarding agencies and pass-through entities, including all management decisions. t. We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor's report. 17 of 189 Rehmann Robson Page 6 of 6 u. We are responsible for and have accurately completed the appropriate sections of the Data Collection Form as required by Chapter 10.550, Rules of the Auditor General, and we are responsible for preparing and implementing a correction action plan for each audit finding. v. We have disclosed all contracts or other agreements with service organizations and disclosed to you all communications from these service organizations relating to noncompliance at the organizations. w. We have reviewed, approved, and taken responsibility for the financial statements and related notes. x. We have disclosed to you the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end of the reporting period that affect noncompliance during the reporting period. Joe Griffin, City Manager Kenneth Killgore, AdministrativeSer ( es Director 18 of 189 Regular City Council & CRA Meeting March 14, 2018 Page Two 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 18.031 A. Proclamation — March for Meals Campaign 2018 — Karen Dieal, President and CEO of the Senior Resource Center Mayor Hill read and presented the proclamation to Shawna Callaghan and Virginia Skov. 18.032 B. Proclamation — Kick Butts Dav 2018 -- Genevieve Presti and Kavla Hershberaer, Students Workinq Aqainst Tobacco Leaders Mayor Hill read and presented the proclamation to Genevieve Presti and Kayla Hershberger. Brief Announcements 3/16/18 — 3/18/18 ShrimpFest & Craft Beer Hullabaloo — Riverview Park 3/23/18 — Chamber Concert — SRHS Jazz Ensemble & Steel Drum Band — 5:30 to 8:00 pm 3/24/18 — Sebastian River Art Club Show — Riverview Park — 10 am to 4 pm Vice Mayor Kinchen announced the upcoming events. 7. Recess Citv Council Meeting and Convene as Communitv Redevelopment Aaencv A. Chairman Hill called the CRA meeting to order at 6:17 p.m. All members were present. B. Motion by Mr. Dodd and SECOND by Vice Chairperson Kinchen to approve the January 24, 2018 CRA meeting minutes passed with a voice vote of 5-0. C. Consider Facade Sian and Landscape Proqram Grant (Transmittal, Summary, Application) i. Adam Preuss Appraisal Services, Inc., 936 U.S. Highway 1 The Community Development Director recommended approval. MOTION by Vice Chairperson Kinchen and SECOND by Mr. McPartlan to approve the Facade, Sign and Landscape Program grant award to Adam Prueuss Appraisal Service. ROLL CALL: Vice Chairperson Kinchen — aye Mr. Dodd — aye Mr. lovino — aye Mr. McPartlan -- aye Chairman Hill — aye Motion carried 5-0. D. Chairman Hill adjourned the CRA meeting at 6:18 p.m. 8. Adjourn Communitv Redevelopment Aqencv Meetinq and Reconvene as Citv Council The City Council reconvened at 6:18 p.m. and all members were present. 19 of 189 UffOF HOME OF PELICAN ISLAND COMMUNITY REDEVELOPMENT AGENCY AGENDA TRANSMITTAL CRA MEETING DATE: 28 March 2018 AGENDA ITEM TITLE: Annual Sebastian CRA Report RECOMMENDATION: Accept the Annual Sebastian CRA Report. BACKGROUND: Florida Statutes require the Community Redevelopment Agency to file a report of activities to the primary government by 31 March of each year and publish in the newspaper a notice of availability of the report. The annual Sebastian Community Redevelopment Agency report of activities for the fiscal year ending 30 September 2017 was jointly prepared by the Community Development Director and the Administrative Services Director. It is also scheduled to be reviewed by the City Council. Following acceptance by the City Council, the City Clerk will publish in the newspaper a notice of the Report's availability. IF AGENDA ITEM REOUIRES EXPENDITURE OF FUNDS: Total Cost: $250 for Newspaper Advertisement Amount Budgeted in Current FY: $1,500 for All Advertisements Amount of Appropriation Required: None Fund to Be Utilized for Appropriation: Community Redevelopment Fund Administrative Services Department Review: " 1 6= 3L ATTACHMENTS: Sebastian CRA Report City Manager Authorization: / Date: 22 March 2018 20 of 189 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Under Chapter 163.356(3)(C) c"' OF SE HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 21 of 189 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal List of Principal Officials ii History 1 Exhibit I - Sebastian CRA Boundary Accomplishments 3 FY 2417 Sebastian CRA Activities 3 Table I — CRA Activity Tax Increment Revenues 4 Exhibit II — Taxable Value in Redevelopment Area 5 Exhibit III — Operating Millage Rates in Redevelopment Area 6 Exhibit IV —Tax Increment Revenue 7 Financial Statements 8 Balance Sheet 9 Statement of Revenues, Expenditures, and Changes in Fund Balances 10 Budget and Actual 11 22 of 189 CRof SE!AST 00N HOME OF PELICAN ISLAND March 22, 2018 Sebastian Community Redevelopment Agency Board Chairman and Members City of Sebastian, Florida Dear Board Members: We are pleased to submit the Annual Activity Report of the Sebastian Community Redevelopment Agency for the fiscal year ended September 30, 2017. Section 163.356(8)(C), Florida Statutes, requires each CRA to file with its governing body, on or before March 31 each year, a report of its activities for the proceeding fiscal year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of such fiscal year. In addition to meeting this legal requirement, the report provides additional information concerning the benefits afforded by the agency to other jurisdictions and citizenry in general. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. We believe the data, as presented, is accurate in all material respects, and that all disclosures necessary to enable the reader to gain an understanding of the Sebastian CRA's operation and financial activity have been included. Respectfully submitted, Liza Leger Frazier, AICP Community Development Director/CRA Manager City of Sebastian '111 Kenneth W. Killgore Administrative Services Director City of Sebastian 23 of 189 LIST OF PRINCIPAL OFFICIALS September 30, 2017 Chairman Board Member Board Member Board Member Board Member Bob McPartlan Linda Kinchen Jim Hill Ed Dodd Andrea Coy 24 of 189 History of the Sebastian Communitv Redevelopment Agencv (Sebastian CRA) The Sebastian Community Redevelopment Agency (Sebastian CRA) was created in 1995 by the City of Sebastian City Council under Chapter 163, Part III of the Florida Statutes. The original Sebastian CRA includes an area generally bounded on the west by the FEC Railroad right-of-way, north by the City limits, on the east by the Indian River Lagoon, and south by the City limits east of the FEC Railroad right-of-way. The Sebastian CRA was established to ensure that the downtown and surrounding vicinity would develop with a coherent community vision, and to encourage reinvestment throughout the CRA. The area later was expanded in 2003 to include the Sebastian Boulevard "Triangle" area west of the FEC Railroad right-of-way, which includes industrial and commercial land use. The total Sebastian CRA area is 299 acres excluding road rights-of-way (Exhibit 1). The governing body of the Sebastian CRA is the Sebastian City Council. The CRA Board is comprised of five (5) members. Under the State Statutes and the City ordinances, the Sebastian CRA has substantial powers and authority within the Sebastian CRA area. These include the power to make and execute contracts, to acquire and dispose property, to approve development plans, to implement a program of voluntary or compulsory rehabilitation of buildings, to mortgage its property, to borrow and invest money, and to apply for and accept grants and contributions. The major funding source for the Sebastian CRA is tax increment revenue. Tax increment revenue is the increase in ad valorem tax attributed to the increase in the assessed property value over a set `base year" for the redevelopment area. The government jurisdictions remitting tax increment revenue to the Sebastian CRA are the City of Sebastian and the Indian River County Board of County Commissioners. After the establishment of the Sebastian CRA in 1995, the City established the Redevelopment Trust Fund and the base year for tax increment revenues as well as adopted the 1995 Community Redevelopment Plan. The boundary was later expanded to include the adjacent Sebastian Boulevard "Triangle" area in 2003, establishing a new base year for this area of the CRA. The redevelopment plan was also modified on behalf of the Sebastian CRA in 2003, unifying the 1995 Sebastian CRA boundary and the expansion area as one cohesive CRA. The Master Plan was again updated in 2010, presenting conceptual district recommendations, potential policy amendments, and capital improvements intended to meet the City's redevelopment goals. 1 25 of 189 EXHIBIT 1 --- SEBASTIAN CRA BOUNDARY MAP (N b mm-, l i --'77F I f, Sebastian CRA Conceptual Districts, _ Oty of Sebashan CRA CZ/l s�,AN Rrk� Z+rd M�.tW�. FI[Int T ` 4 I 2 26 of 189 Accomplishments of the Sebastian Communitv Redevelopment Ap-encv (Sebastian CRA) Since the establishment of the original Sebastian CRA in 1995, numerous projects have been accomplished. Accomplishments are as follows: ❑ Provided annual funding support to festivities such as Riverfront Christmas decorations, Clam Bake festival, fine art festival, concert in the park, and Pelican Island celebration since the year 2000. a Completed Riverview Park Phase I, boat dock, landscaping, and shoreline stabilization project in 2001. ❑ Developed community redevelopment master plan in 2003. ❑ Completed Jackson Street extension, sidewalk, and street light project in 2004. ❑ Completed improvements to the Yacht Club. ❑ Completed construction on the Indian River Drive/Main Street project. ❑ Established a Fagade, Sign and Landscaping matching grant program. ❑ Received contribution from the Clambake Foundation and provided the balance of funding for the Flag Pole project, which enhanced the view at the western entrance to the CRA area. ❑ Designed billboard advertisements and rented billboards on Highway I-95. ❑ Contributed $20,000 to a film production about the story of Pelican Island. ❑ Constructed information boards at Riverview Park and at the Park at Indian River Drive/Main Street. ❑ Updated the CRA Master Plan in 2010. ❑ Completed construction on the Yacht Club finger pier project. ❑ Provided matching funds to the Stan Mayfield Grant that was used for the purchase of the Working Waterfront Properties. ❑ Executed lease with Crab E. Bills for a commercial retail fish market and a retail commercial limited food service "Eatery". ❑ Established a Sewer Connection Grant Program to encourage reduction of seepage into the Indian River Lagoon. ❑ Completed roadway improvements to the Presidential Streets. FY 2017 Sebastian CRA Activities The Sebastian CRA is treated as a special revenue fund of the City. An independent financial audit by an external CPA firm has been accomplished annually to be in compliance with Section 153.387(8), Florida Statutes. An annual budget is also adopted by the Sebastian CRA Board to be in compliance with Section 189.418(3). Major activities and accomplishments of the Sebastian CRA in 2017 included: ❑ Provided financial support for many events within the Riverfront District including: clam bake, concert in the park events and fine art festival. ❑ Provided funding for Holiday decorations. ❑ Continued funding grant programs that support public private projects including: Fagade, Sign and Landscape grants, and the Septic to Sewer assistance program (See TABLE 1). ❑ Made necessary repairs to the Working Waterfront properties including: historic building repairs and dock replacement. ❑ Completed repairs to the CavCorp boat parking property. 27 of 189 TABLE 1 - CRA Grant Activity October 1, 2016 — September 30, 2017 OWNER PROJECT PROJECT TYPE ADDRESS Teddy's Cleaning & Janitorial 916 U.S. Highway 1 Septic to Sewer Services O'quist Services, LLC 1413 N. Central Ave. Septic to Sewer Thomas Haynes 712 Cleveland St. Septic to Sewer Sebastian Center, Ltd 1627 U.S. Highway 1 Septic to Sewer Best Western Hotel 1655 U.S. Highway 1 Fa4ade, Sign & Landscape Tax Increment Revenue TOTAL AWARD PROJECT AMOUNT COST $20,583.94 $15,000 $33,910 $15,000 $22,386.62 $15,000 $102,792 $15,000 $64,479.73 $15,000 The tax increment revenue is determined annually as 95 percent of the difference between: (a) the amount of ad valorem taxes levied each year by each taxing authority contributing to the Sebastian CRA on taxable real property contained within the redevelopment area, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General Obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District and (b) the amount of ad valorem taxes which would have been generated by the rate at which the tax is levied each year by the taxing authority, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District upon the total of the assessed value of the taxable real property in the community redevelopment area as shown on the assessment roll used by each taxing authority prior to March 22, 1995, the effective date of the ordinance creating the Redevelopment Trust Fund. Indian River County Board of County Commissioners and the City of Sebastian currently make tax increment payments into the Sebastian CRA Trust Fund. 4 28 of 189 The initial implementation of the tax increment financing was for the Fiscal Year 2001 and its base year value was set at the taxable value for 1994. When the CRA area was expanded, the base year value for that expanded area was set at the taxable value for 2003. As a result, by Fiscal Year 2005, the total incremental value was $36,862,574. As compared to the Fiscal Year 2017 total incremental value of $50,313,349, the incremental value of the redevelopment area has increased by 36.5% since Fiscal Year 2005. The taxable values in redevelopment area from 2001 through 2017 are presented in Exhibit II below. Exhibit II m 0 D 0 N 0 2 Tax Increment Values 100.0 - - - -� 90.0 I 80.0 70.0 I 60.0 50.0 40.0 �- 30.0 — 20.0 — 10.0 — 200120p2200� v0' V015 2006 2001 2001 2001,2010 201120122013 2014 2015 2016 2011 Fiscal Year Source: City of Sebastian Administrative Services Department 5 29 of 189 Sebastian Community Redevelopement Agency Taxable Value in Redevelopment Area % Change in Taxable Base Year Incremental Incremental Fiscal Year Value Value Value Value 2001 $45,834,920 $34,959,870 $10,875,050 2002 58,263,740 34,959,870 23,303,870 114.29% 2003 58,844,190 34,959,870 23,884,320 2.49% 2004 66,307,980 34,959,870 31,348,110 31.25% 2005 78,424,554 41,561,980 36,862,574 17.59% 2006 89,418,550 41,561,980 47,856,570 29.82% 2007 134,755,060 41,561,980 93,193,080 94.73% 2008 129,700,130 41,561,980 88,138,150 -5.42% 2009 127,735,740 41,561,980 86,173,760 -2.23% 2010 111,909,020 41,561,980 70,347,040 -18.37% 2011 90,533,980 41,561,980 48,972,000 -30.39% 2012 83,558,060 41,561,980 41,996,080 -14.24% 2013 82,753,350 41,561,980 41,191,370 -1.92% 2014 82,598,780 41,561,980 41,036,800 -0.38% 2015 84,939,810 41,561,980 43,377,830 5.70% 2016 91,018,390 41,561,980 49,456,410 14.01% 2017 91,875,329 41,561,980 50,313,349 1.73% m 0 D 0 N 0 2 Tax Increment Values 100.0 - - - -� 90.0 I 80.0 70.0 I 60.0 50.0 40.0 �- 30.0 — 20.0 — 10.0 — 200120p2200� v0' V015 2006 2001 2001 2001,2010 201120122013 2014 2015 2016 2011 Fiscal Year Source: City of Sebastian Administrative Services Department 5 29 of 189 The City's millage has decreased from $5.00 per $1,000 in FY 2001 to $3.8000 per $1,000 in FY 2017. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.3602 per $1,000 in FY 2017. Rates from 2001 through 2017 are presented in Exhibit III below. Total Tax Increment Millage Rate 10.0000 - 9.0000 - �, 8.0000 - 7.0000 - - 6.0000 5.0000 - - - - - 4.0000 - - - - - 3.0000 - - - 5 2.0000 F' 1.0000 - 2pa�2p022pa3,Lp0 Zap ,Z�p62pp'l2Qp$2pp920�0�Q'��2�� 20'1320 ZQ'��Z�� ,Lp�1 Fiscal Year Source. City of Sebastian Administrative Services Department 6 30 of 189 Exhibit III Sebastian Community Redevelopement Agency Operating Millage Rates in Redevelopment Area Indian City River of Total Fiscal Year Coun Sebastian Millage 2001 4.1014 5.0000 9.1014 2002 4.0501 4.5904 8.6405 2003 3.8729 4.5904 8.4633 2004 3.8377 4.5904 8.4281 2005 3.6233 4.5904 8.2137 2006 3.5204 3.9325 7.4529 2007 3.1914 3.0519 6.2433 2008 3.0202 2.9917 6.0119 2009 3.0202 3.3456 6.3658 2010 3.0892 3.3456 6.4348 2011 3.0892 3.3041 6.3933 2012 3.0892 3.3041 6.3933 2013 3.0892 3.7166 6.8058 2014 3.2620 3.7166 6.9786 2015 3.3375 3.8556 7.1931 2016 3.3602 3.8556 7.2158 2017 3.3602 3.8000 7.1602 Total Tax Increment Millage Rate 10.0000 - 9.0000 - �, 8.0000 - 7.0000 - - 6.0000 5.0000 - - - - - 4.0000 - - - - - 3.0000 - - - 5 2.0000 F' 1.0000 - 2pa�2p022pa3,Lp0 Zap ,Z�p62pp'l2Qp$2pp920�0�Q'��2�� 20'1320 ZQ'��Z�� ,Lp�1 Fiscal Year Source. City of Sebastian Administrative Services Department 6 30 of 189 Based on the milIage rates and significant increases in taxable values, the tax increment revenue has risen dramatically. The total tax increment revenue in 2001 was $94,029. The tax increment revenue in 2017 has increased to $342,241. However, this is a 3 8. 1 % decrease from the highest year of 2007 when the total was $552,741. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2017 are presented in Exhibit IV below. Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0_� Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Indian City River of County Sebastian Total $42,373 $51,656 $94,029 89,664 101,625 191,289 87,877 104,157 192,034 114,289 136,705 250,994 126,886 160,753 287,639 160,051 178,786 338,837 282,546 270,195 552,741 252,885 250,499 503,384 251,236 273,888 525,124 206,450 223,585 430,035 143,720 153,900 297,620 123,248 131,821 255,069 120,886 145,437 266,323 127,169 144,891 272,060 137,535 158,885 296,420 157,874 181,150 339,024 160,610 181,631 342,241 Tax Increment Revenue Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 7 31 of 189 Financial Statements The Sebastian CRA is considered a blended component unit of the City and therefore it is included in the City's annual financial audit. In order to meet the requirement of Section 163.387(8), Florida Statutes, which requires the CRA to provide for annual audit of the redevelopment trust fund, the Sebastian CRA has been treated as a major fund of the City. The financial statements included herein are unaudited statements of the Sebastian CRA. Audited statements are included in the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ending September 30, 2017 and may be obtained in the City Clerk's office 1225 Main Street, Sebastian, Florida or online at lit ti):ll www/c itvofsebasti an. ori:. 32 of 189 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2017 Unaudited ASSETS Cash and cash equivalents $ 442,764 Investments 98,288 Total assets $ 541,052 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 304 Total liabilities 304 Fund balances: Restricted 540,748 Total fund balance 540,748 Total liabilities and fund balance $ 541,052 9 33 of 189 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2017 Unaudited REVENUES: Taxes: Property $ 342,241 Investment earnings 5,758 Other revenue 36,000 Total revenues 383,999 EXPENDITURES: Current: General government 2,067 Economic environment 69,741 Total expenditures 71,808 Excess (deficiency) of revenues over (under) expenditures 312,191 30 0 we I w w Q \MIRDSM"j-D&I Transfers out (229,496) Total other financing uses (229,496) Net changes in fund balance 82,695 Fund balance - beginning 458,053 Fund balance - ending $ 540,748 10 34 of 189 Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2017 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers in Transfers out Total other financing (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Budget Amounts Orihinal Final $ 343,707 $ 343,707 1,332 1,322 36,000 36,000 381,039 381,029 Actual Variance with Amounts on Final Budget - a Budgetary Positive Basis (Negative) $ 342,241 5,758 36,000 383,999 (1,466) 4,436 2,970 2,500 2,500 2,067 (433) 369,087 221,313 69,741 (151,572) 371,587 223,813 71,808 (152,005) 9,442 157,216 312,191 154,975 - 270,955 - (270,955) - (418,729) (229,496) 189,233 - (147,774) (229,496) (81,722) 9,442 9,442 82,695 73,253 458,053 458,053 $ 467,495 $ 467,495 I 458,053 - $ 540,748 $ 73,253 35 of 189 M� SEBAST.IAN HOME OF PELICAN IRAND COMMUNITY REDEVELOPMENT AGENCY AGENDA TRANSMITTAL Council Meeting Date: 28 March 2018 Agenda Item Title: Work Authorization CSA #1 — CRA Master Plan Update Recommendation: Approve Work Authorization for Redevelopment Management Associates (RMA) — CSA #1 CRA Master Plan Update. Background: The current CRA Master Plan was updated, and subsequently adopted in October 2010. Updates to CRA Master Plan's should occur every 5 — 7 years. The current CRA is set to sunset in 2033 and this update will address the need for completing the economic and redevelopment goals of the CRA. RMA is one of the City's CCNA approved Continuing Consultants for Planning Services. If Agenda Item Requires Exuenditure of Funds: Total Cost: $46,000.00 Amount Budgeted in Current FY: $50,000.00 Fund to Be Utilized: CRA /j Administrative Services Dep artment/CFO Review:,,l �dL-,.j . Attachments: 1. CSA # 1 2. RMA Scope of Services & Fee Schedule. City Manager Authorization: v/ Date: 20 March 2018 36 of 189 CITY OF SEBASTIAN, FLORIDA WORK AUTHORIZATION FORM CONSULTANT SERVICE AGREEMENT (CSA) REDEVELOPMENT MANAGEMENT ASSOCIATES, LLC (RMA) 2302 EAST ATLANTIC BLVD. POMPANO BEACH, FL 33062 Work Authorization No: CSA # 1 Project Identification: CRA MASTER PLAN UPDATE IT IS AGREED to undertake the following work in accordance with the provisions of the RMA, LLC MASTER AGREEMENT ENTITLED CONTINUING PROFESSIONAL PLANNING AND LANDSCAPE ARCHITECT CONSULTING SERVICES Dated JANUARY 24, 201$. Description of Assignment: CRA MASTER PLAN UPDATE SCOPE OF SERVICES ATTACHED. Basis of Compensation/Period of Services: The above referenced Professional Planning Services for CSA # I will be performed for a fee not to exceed the amount of $46,000.00. AGREED: PLANNING CONSULTANT: CITY OF SEBASTIAN: Date: Date: Name Joseph Griffin, City Manager Attest: Jeanette Williams, MMC, City Clerk Approved as to Form and Content for Reliance by the City of Sebastian Only: James D. Stokes, City Attorney 37 of 189 REINVENTING YOUR CITY March 5, 2018 SCOPE OF SERVICES City of Sebastian ("Client") C/O Lisa Leger Frazier, Community Development Director/CRA Manager 1225 Main Street Sebastian, FL 32958 Contact: 772.388.8228 Email: Ifrazier@cityofsebastian.org And Redevelopment Management Associates, LLC (RMA)("Consultant") C/O Chris Brown, Principal 2302 East Atlantic Blvd. Pompano Beach, FL 33062 Contact: 954.695.0754 Email: Chris@rma.us.com RE: CRA MASTER PLAN UPDATE Dear Ms. Frazier: Redevelopment Management Associates, LLC (RMA) ("Consultant") is pleased to provide this Scope of Services to the City of Sebastian ("Client") for consulting services related to the project referred to as the CRA MASTER PLAN UPDATE. Background In January 2018, Consultant was contracted to assist the Client with consulting services under the Continuing Professional Planning and Landscape Architect Consulting Services RFQ, on an as needed basis as defined in specific Work Orders. The initial request from the Client is for the Consultant to provide a scope of services for the CRA Master Plan Update. RMA's principals and team members have successfully guided the transformation of numerous cities and targeted areas by understanding and applying the steps required to evaluate/assess an area: identify leaders, work with the leaders and community to define a vision, create a plan and actually implement the plan - helping to build better communities. Please review the Scope of Services to confirm the tasks meet your expectations. SCOPE OF SERVICES 1. Background and Existing Conditions............................................................ $7,500 DELRAY BEACH I POMPANO BEACH 1 954.695.0754 ) WWW.RMA.US.COM 38 of 189 = 12 1.1. Consultant shall review the Sebastian CRA Redevelopment Plan as a baseline for the proposed plan amendments, including an evaluation of past and proposed capital projects and CRA programs in terms of impact and alignment with CRA goals and priorities; 1.2. Meetings: One (1) kickoff meeting and site visit with CRA/City staff. Deliverable: Evaluation and Schedule Market Assessment................................................................................... $10,500 2.1. Update relevant market and demographic data for the area and project future market demand based on recent studies; 2.2. Estimate market demand and potential for new commercial and residential investment within the CRA area. 2.3. Provide Draft Market Analysis via email for Comprehensive Staff Review and consolidated revisions (all applicable departments). Consultant shall provide a maximum of two (2) sets of revisions to the Draft Market Analysis based on Client feedback. Deliverable: Market Analysis 3. Public Input..................--.................................................------.....------ $8,000 3.1. Conduct one (1) 4 -hour open house/town hall public input session. 3.2. Conduct six (6) ane -on -one stakeholder meetings with key stakeholders, to be agreed upon with the Client; Deliverable: Summary of Public Input 4. Draft CRA Plan Update.................................................................................................................. $12,000 4.1. In compliance with F.S. Chapter 163, Part III requirements, draft updated plan to include, and recommendations for, general administration; goals and objectives; updated short and long-term projects and timelines; financing strategies; and recommended strategies for implementation. 4.2. Comprehensive Staff Review and consolidated revisions (all applicable departments) - one (1) meeting with CRA/City staff. Consultant shall provide a maximum of two (2) sets of revisions to the Draft CRA Plan based on Client feedback. Deliverable: Draft Redevelopment Pian 5. CRA Plan Adoption........................................................................................................................... $8,000 5.1. Assist the Planning Division in review and determination of consistency with the City's Comprehensive Plan (up to one (1) meeting with LPA) 5.2. CRA Board and City Council Approval (One (1) meeting) Deliverable: Final Presentation Compensation: The fee for the scope of services shall be a lump sum fee, for each task, to be paid monthly based on percentage complete. Lump sum, not to exceed........................................................................................... $46,000 Task l: Background and Existing Conditions ........................................ $7,500 Task 2: Market Assessment ........................................ .$10,500 ................................................ DELRAY BEACH ( POMPANO BEACH 1 954.695.07541 WWW.RMA.US.COM 39 of 189 Page 13 Task3: Public Input ....................................................................................................... $8,000 Task 4: Draft CRA Plan Update ........................... $12,000 ...................................................... Task 5: CRA Plan Adoption.......................................................................................... $8,000 Additional Services: Additional services not included above will be engaged pursuant to the Non - Exclusive Agreement for Professional Planning and Landscape Architect Consulting Services dated January 25, 2018, with mutual discussion and agreement between Consultant and Client; and approval by Client. Reimbursable Expenses: Costs considered reimbursable include all third -party design services requested by the Client, renderings, any printed materials or duplicate copies of presentation materials and reports in addition to the original. Marketing for any public meetings will be completed by the Client or will be submitted as a reimbursable expense by the Consultant. Schedule: This Scope of Services will become effective upon execution and may be terminated by either party at any time with written notice. Client to provide one ( 1) signed and fully executed copy to Consultant the Scope of Services will be completed within the timeframe agreed to by both parties during Task 1. We look forward to working with the City of Sebastian on this project. AGREED TO AND APPROVED BY: Ki m-B6e;errr� Date r`Frincipal, RMA Lisa Leger Frazier Date Community Development Director/CRA Manager City of Sebastian DELRAY BEACH I POMPANO BEACH j 954.695.0754 1 WWW.RMA.US.COM 40 of 189 M LX SE13ASTIAN HOME OF PELICAN ISLAND COMMUNITY REDEVELOPMENT AGENCY AGENDA TRANSMITTAL Council Meetine Date: 28 March 2018 Agenda Item Title: 1215 Indian River Drive Acquisition Recommendation: Consider, Discuss, and Direct Staff on property possibilities. Background: On 15 March 2018, at Council direction, the City Manager `closed' on the property at 1215 Indian River Drive. That afternoon, City Staff worked on securing the buildings and increasing Police presence in the area. Staff requests direction on short, and long-term, possibilities Council envisions for the property so that a more detailed plan may be presented at a later Council meeting. If Agenda Item Requires Expenditure of Funds: N/A (/j Administrative Services Department/CFO Review: -4 l �—�nJ . l City Manager Authorization: Date: 21 March 20I8 41 of 189 LM OF SEAT" HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL REGULAR MEETING & COMMUNITY REDEVELOPMENT AGENCY MINUTES WEDNESDAY, MARCH 14, 2018 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Hill called the regular meeting to order at 6.00 p.m. 2. Father Dave Newhart of St. Elizabeth's Episcopal Church gave the invocation. 3. Vice Mayor Kinchen led the Pledge of Allegiance. 4. ROLL CALL Mayor Jim Hill Vice Mayor Linda Kinchen Council Member Ed Dodd Council Member Albert lovino Council Member Bob McPartlan Citv Staff Present City Manager Joe Griffin City Attorney James Stokes City Clerk Jeanette Williams Community Development Director Lisa Frazier Building Official Wayne Eseltine Airport Director Scott Baker Administrative Services Director Ken Killgore Procurement Manager Randy Moyer Police Chief Michelle Morris 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members There was no objection to Mayor Hill's request to add a Work Authorization for Consultant Services Utilizing the Sebastian Inlet District Cooperative Agreement for Shoreline Improvements at the Working Water as Item #9H of the Consent Agenda. Council Member lovino requested to table Items #11A and #11 B. In regard to Item #11A regarding medical marijuana, he agreed with Mayor Hill's suggestion to wait until the public hearing section to give the City Attorney direction. Council Member lovino noted Indian River County Firefighter Dave Johnson had recently been promoted to Fire Marshal which may change fire services with the County and requested additional discussion before moving forward with Item #11 B. It was the consensus of Council to address the ordinance under public hearings. 42 of 189 Regular City Council & CRA Meeting March 14, 2018 Page Two 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading, 18.031 A. Proclamation — March for Meals Camaaian 2018 — Karen Dieal, President and CEO of the Senior Resource Center Mayor Hill read and presented the proclamation to Shawna Callaghan and Virginia Skov. 18.032 B. Proclamation — Kick Butts Dav 2018 — Genevieve Presti and Kavla Hershberger, Students Working Against Tobacco Leaders Mayor Hill read and presented the proclamation to Genevieve Presti and Kayla Hershberger. Brief Announcements 3/96/18 — 3/18/18 ShrimpFest & Craft Beer Hullabaloo — Riverview Park 3/23/18 — Chamber Concert — SRHS Jazz Ensemble & Steel Drum Band — 5:30 to 8:00 pm 3/24/18 — Sebastian River Art Club Show — Riverview Park — 10 am to 4 pm Vice Mayor Kinchen announced the upcoming events. 7. Recess Citv Council Meetinq and Convene as Communitv Redevelopment Aqencv A. Chairman Hill called the CRA meeting to order at 6:17 p.m. All members were present. B. Motion by Mr. Dodd and SECOND by Vice Chairperson Kinchen to approve the January 24, 2018 CRA meeting minutes passed with a voice vote of 5-0. C. Consider Facade Sian and Landscape Proaram Grant (Transmittal, Summary, Application) i. Adam Preuss Appraisal Services, Inc., 936 U.S. Highway 1 The Community Development Director recommended approval. MOTION by Vice Chairperson Kinchen and SECOND by Mr. McPartlan to approve the Fagade, Sign and Landscape Program grant award to Adam Prueuss Appraisal Service. ROLL CALL: Vice Chairperson Kinchen — aye Mr. Dodd — aye Mr, lovino —aye Mr. McPartlan — aye Chairman Hill — aye Motion carried 5-0. D. Chairman Hill adjourned the CRA meeting at 6:18 p.m. 8. Adiourn Communitv Redevelopment Aqencv Meetinq and Reconvene as City Council The City Council reconvened at 6:18 p.m. and all members were present. 43 of 18� Regular City Council & CRA Meeting March 14, 2018 Page Three 9. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. if a member of the public wishes to provide input on a consent agenda item, he/she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. A. Approval of Minutes — February 14, 2018 Regular Meeting 18.033 B. Resolution No R-18-08 - Accepting the 1ST Quarter Financial Report and Adopting Necessary Amendments to the FY17118 Annual Budget (Transmittal, R-18-08, Report) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2017 AND ENDING SEPTEMBER 30, 2018 AS PROVIDED FOR IN EXHIBIT "A"; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. 18.034 C. Approve Street Closings for Earth Day and Waste Management's Shred -it Events on April 21, 2018 (Transmittal, Map) 18.035 D. Approve Expenditure of Sebastian Police Department Forfeiture Funds for the DARE Program in Accordance with FS 932.7055 (Transmittal, Invoice, Letter, FS932.7055) 18.036 E. Approve Alcoholic Beverages at Community Center for Yates Event on March 24, 2018 from 3:30 pm to 9:30 pm - DOB Verified (Transmittal, Application, Receipt) 18.037 F. Approve Alcoholic Beverages at Yacht Club for Jones Event on April 7, 2018 from 2:00 pm to 6:00 pm - DOB Verified (Transmittal, Application, Receipt) 18.038 G. Approve Alcoholic Beverages at Community Center for Ruiz Event on April 7, 2018 from 4:00 pm to 10:00 pm - DOB Verified (Transmittal, Application, Receipt) 18.024 Added H. Approve Work Authorization for Consultant Services Utilizing the Cooperative Agreement with Sebastian Inlet District (Transmittal, Agreement, Scope, Fee, Agreement) Vice Mayor Kinchen remarked that she spoke to the City Manager regarding the rate discrepancies in Items #E and F. Council Member Dodd asked to pull item #A. MOTION by Council Member McPartlan and SECOND by Vice Mayor Kinchen to approve Items #B-H of the consent agenda. ROLL CALL: Council Member Dodd - aye Council Member lovino — aye Council Member McPartlan — aye Mayor Hill — aye Vice Mayor Kinchen - aye Motion carried 5-0. 44 of 189 Regular City Council & CRA Meeting March 14, 2018 Page Four Item #A Council Member Dodd asked that the 80% be changed to 8% on the last page of the minutes under his matters. MOTION by Council Member Dodd and SECOND by Council Member McPartlan to approved Item #A of the consent agenda passed with a voice vote of 5-0. 10. 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. 18.039 A. Natural Resources Board (Transmittal, Application, Ad, List) i. Interview, Unless Waived, Submit Nominations for One Regular Member — Term to expire 7/1/2019 It was the consensus of City Council to appoint Jason Hoffman to the regular member position with a term to expire July 1, 2019. 11. PUBLIC HEARINGS 18.007 A. Second Reading and Public Hearing of Ordinance No. 0-18-01 Relatinq to Medical Mariivana (Transmittal. 0-17-01. 0-18-01. Feb 14 Transmittal, Statement. Mab) AN ORDINANCE OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, RELATING TO MEDICAL MARIJUANA TREATMENT CENTERS; RESCINDING ORDINANCE 0-17-01; AMENDING THE LAND DEVELOPMENT CODE ARTICLE XXII (LANGUAGE AND DEFINITIONS); AMENDING ARTICLE V (ZONING DISTRICT REGULATIONS); PROVIDING FOR SEVERABILITY, CONFLICT, CODIFICATION, AND AN EFFECTIVE DATE. (PJ Ad 2125118) Mayor Hill opened the public hearing at 6:21 p.m. and the City Attorney read the title of Ordinance No. 0-18-01. Council Member Dodd said he hoped Council would continue to authorize medical marijuana. MOTION by Mayor Hill and SECOND by Vice Mayor Kinchen to table Ordinance No. 0-18- 01 for 90 days and direct the City Attorney to bring back an ordinance similar to the Town of Wellington that would fit the needs of the citizens of Sebastian. Jacqueline Lapos asked if there would be as many facilities as the dollar stores. The City Attorney advised the first reading of this ordinance created a stay; if someone applies they could not move forward until the proper regulations are in place. Doris Kilbane, Sebastian, asked why the marijuana could not be purchased at a pharmacy. Mayor Hili explained it is prevented by state law. Damien Gilliams asked for a copy of the Wellington ordinance; noted a lot of people can use this and asked that it be moved along. 45 of 189 Regular City Council & CRA Meeting March 14, 2018 Page Five ROLL. CALL: Council Member McPartlan — aye Mayor Hill — aye Vice Mayor Kinchen - aye Council Member Dodd — aye Council Member lovino — aye Motion carried 5-0. 18.028 B. Second Reading and Public Hearing of Ordinance No. 0-18-02 Fire Prevention and Protection (Transmittal. 0-18-02, Code Chapter 42) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING, REVISING AND UPDATING CHAPTER 42 OF THE CODE OF ORDINANCES RELATING TO FIRE PREVENTION AND PROTECTION; PROVIDING FOR SEVERABILITY, CONFLICTS, AND EFFECTIVE DATE. (PJ Ad 2128118) Mayor Hill opened the public hearing at 6:31 p.m. and the City Attorney read the title of Ordinance No. 0-18-02. The City Manager said staff is behind the ordinance, he will designate the fire marshal, the County will continue to permit special events and he recommended approval. Jason Brown, Indian River County Administrator, thanked Council for the change from first reading, asked Council to table the ordinance until they collaborated. He said the fire district was unified in 1984 with the addition of life support services added in the nineties and it was important to hold all of the services together. He asked for time to coordinate the fire inspections more closely with the City's Building Department. Dylan Reingold, Indian River County Attorney, introduced himself. Todd Smith, licensed structural engineer, said the ordinance is well written and a big plus for the City. He said there was a lot of conversation with the County Fire Department six months ago to streamline the process but they haven't implemented what was discussed such as adding more staff. Robert Rody, licensed architect, said he supported the ordinance, it would streamline the process. Mickey Capp, Capp Custom Builders, said he and his wife take a lot of pride in working with every department in the City and the County but for the last 6 or 8 years the Fire Department has been spiraling down. Recently he was doing $1 M renovation on a property and the jack hammer set off the smoke detector. The Fire Department shut the project down causing him to incur $100,000 in expenses and two months of lost income. The building was permitted, inspected and approved 13 years ago by the Fire Department. Mr. Capp said he has worked with Sebastian's Building Official for 14 years who knows the code very well and is the right man for the community. Robert Boden, Titan General Contractors, said he would like to proceed with the ordinance and move forward as a community, fire safety is 10% of the process but is taking 90% of the time. 46 of 18� Regular City Council & CRA Meeting March 14, 2018 Page Six 6:48 pm Jose De La Hoz, De La Hoz Builders, said the day-by-day delay is money and recently one of his customers was thinking twice about investing in the town. It takes weeks for a County inspection, then even longer for a correction. He appreciated the City's time to do this so they aren't losing money. Mayor Hill said this isn't Sebastian against the County or the Fire Department in any way, shape or form; this is delivering service to the customers; and this would not impact the City's budget. Council Member Dodd pointed out there would be a following item to hire a professional company for the difficult inspections and assist the Building Official; it is a financial decision for the City and the contractors. He would like to see that whoever does the fire re -inspections has the appropriate fire expertise. He supported the ordinance. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve Ordinance 0-18-02. Council Member lovino said he is not opposed to the ordinance but to provide the best possible service, there should be the best people to do that. He is a firefighter and didn't feel the 200 hour class brought about the expertise needed to affect the best inspector. There should be someone who has had experience with fighting fires or gone through a building after a fire. Vice Mayor Kinchen said they needed to streamline the process and although the County hired someone last week they don't know how long it will take him to get up to speed. She was in favor of the ordinance. ROLL CALL: Mayor Hill — aye Vice Mayor Kinchen - aye Council Member Dodd — aye Council Member lovino — aye Council Member McPartlan — aye Motion carried 5-0. 18.030 C. Second Readina and Public Hearina Ordinance No. 0-18-03 -- Petition for Voluntary Annexation — Soirit of Sebastian (Transmittal. 0-18-03. Staff Analvsis, Attachment A. Survey) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PROVIDING FOR THE VOLUNTARY ANNEXATION FOR LAND CONSISTING OF 182.87 ACRES, MORE OR LESS, LOCATED SOUTH OF VACANT "INDUSTRIAL -ZONED" LAND, WEST OF THE FEC RAILROAD AND OLD DIXIE HIGHWAY, AND NORTH AND EAST OF SEBASTIAN HIGHLANDS AND SOUTH MOON UNDER RESIDENTIAL SUBDIVISIONS; PROVIDING FOR THE EXTENSION OF THE CORPORATE LIMITS AND BOUNDARIES THEREOF; PROVIDING FOR INTERIM LAND USE AND ZONING CLASSIFICATION; PROVIDING FOR CONFLICT AND SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. (PJ Ad 2125118) Mayor Hill opened the public hearing at 6:53 p.m. and the City Attorney read the title of Ordinance No. 0-18-03. The City Manager said this was a voluntary annexation requiring the public hearing and staff recommended approval. 47 of 185 Regular City Council & CRA Meeting March 14, 2018 Page Seven Mayor Hili said there are concerns on social media and within the community regarding the addition of 700 homes. He clarified with the Community Development Director that the current County zoning allows for 6 units per acre, providing for 1,044 units. The property owner is asking to develop about 690 units which is a reduction of about 350 homes. He cited the benefits noted in staff's report found on pages 134 and 135 of the agenda packet. Public Input John Norris, Paddock Street said he was not against the annexation but the density. He asked that there be more discussion about the density. Ray Fries, 171 Del Monte, said he had a lot of questions regarding the development: will it be on City water and sewer; will there be improvements on Del Monte; where will the construction entrance be over the next 10-14 years; who will be responsible for the bridge over the canal at Del Monte. Mayor Hill said each of his concerns would be addressed through the process. Dr. Patricia Apazulu asked if there have been any impact studies for this area. Mayor Hili assured her prior to the development of the property, all of the studies must be done. Robert Warner said if the proposed duplexes were counted as two, there will be 830 units. He noted construction has already begun. Damien Gilliams said the annexation is not good for the City; the financial impact, the density, and transportation should be studied by an independent committee. 7: 1 8 pm Charles Mauti, 438 George Blvd., said he isn't against the annexation but they should look at what they are proposing. Cindy Geesy, Laurel Reserve resident, said they will be greatly impacted by the ingress and egress. She asked what the additional taxes benefit would be versus the services that will be provided; will Section 8 housing be allowed; given the train noise, what will the units sell for; will there be height restrictions; and will it affect any preserve area. Ben Hocker said the property could be annexed and then rezoned to agriculture then the City wouldn't see any benefit. The City Manager summarized that staff recommended approval. Mayor Hill closed the hearing at 7:24 p.m. Mayor Hill said there will be less traffic and impact on the roads, the developer will have to improve the property and the City will have control through the process. He supported the annexation. Council Member Dodd thanked all the residents that came to speak. The ordinance makes that piece of land part of the City and the interim land use shall be consistent with the provisions of state law. The owner has indicated that the property will probably be a residential planned unit development requiring traffic and impact studies. They will have to present a preliminary plat showing lot lines, access points and what they will have to mitigate. 48 of 189 Regular City Council & CRA Meeting March 14, 2018 Page Eight He noted that he has sat on the Planning and Zoning Commission for 12 years and he could not think of a single instance where the citizens weren't represented. He assured the audience that the studies will be completed and their concerns would be addressed. MOTION by Mayor Hill and SECOND by Council Member McPartlan to approve Ordinance No. 0-18-03. ROLL CALL: Vice Mayor Kinchen - aye Council Member Dodd — aye Council Member lovino — aye Council Member McPartlan — aye Mayor Hill — aye Motion carried 5-0. Mayor Hill called for a recess at 7:31 p.m. Upon return at 7:41 p.m., all Council Members were present. 12. UNFINISHED BUSINESS 18.018 A. Terminate the Agreement for Professional Engineerinq Services Between the City of Sebastian and Dredgina and Marine Consultants (DMC) (Transmittal, Agreement, CSA#1) The City Manager reported that he requested the company to stop work and asked Council to terminate the contract. He said the project was to determine a long term seawall solution and in the near future, he would like to discuss the City's overall stormwater future and funding sources. MOTION by Council Member Dodd and SECOND by Council Member McPartlan to cancel the contract with DMC. Damien Gilliams noted the City did not ask for any budget appropriations during the last legislative session. ROLL CALL: Council Member Dodd — aye Council Member lovino — aye Council Member McPartlan — aye Mayor Hill — aye Vice Mayor Kinchen - aye Motion carried 5-0. 18.009 B. Review and Advise on City Manager Interview Process (Transmittal, Solicitation, Report, Charter Sec, 2.12, R-15-10) The City Manager reported the vacancy announcement closed on March 2, the consultant has received 67 applicants, Council will receive a report on March 28, and the interviews would be held the following week. He said he planned a Council workshop for April 4 at 2:00 p.m. to conduct individual interviews and asked for direction on how to conduct the public workshop interviews. He then planned to hold a special meeting at 5:00 p.m. to select the manager. He asked for approval of the schedule as presented. The City Attorney advised that public input could be waived during the workshop by Council action. Regular City Council & CRA Meeting March 14, 2018 Page Nine MOTION by Council Member Dodd and SECOND by Vice Mayor Kinchen to suspend the standard rules and not have public input at the 2:00 p.m. Council workshop. ROLL CALL: Council Member lovino — aye Council Member McPartlan — aye Mayor Hill — aye Vice Mayor Kinchen - aye Council Member Dodd — aye Motion carried 5-0. If a resident has a question for one of the candidates, it was the consensus of Council to receive those questions prior to the workshop. Council Member Dodd asked if they would like to think about the interviews overnight and have the selection meeting on April 5`h. It was the consensus of Council to try to make a selection at the April 41" special meeting at 5:00 p.m. and use April 5"' if they couldn't come to a decision. 13. PUBLIC INPUT New information or requests to City Council not otherwise an the prepared agenda Cindy Geesey thanked Council for supporting her Rest, Relaxation and Romance Program for the military members. Damien Gilliams asked what page the Town of Wellington's ordinance was in the agenda packet. Mayor Hill advised a synopsis was on page 109. Mr. Gilliams responded it was a newspaper article and Mayor Hill called for a recess at 8:04 p.m. to have him escorted out of the meeting. The meeting reconvened at 8:05 p.m. and all members were present. 14. NEW BUSINESS 18.028 A. Contingent to the Aooroval of 0-18-02. Authorize the Citv Manager to Execute an Agreement with SAFEbuilt Florida to Provide Insaection and Plan Review Services for the Citv Fire Marshal (Transmittal. Agreement. Estimate) The City Manager explained this was a follow-up to Council's approval of Ordinance No. 0- 18-02, announced the Building Official, Wayne Eseltine would serve as the City's Fire Marshal and recommended approval. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve the agreement with SAFEbuilt to provide inspection and plan review services. Council Member lovino said he was concerned that they would not be using someone with fire -fighting history and asked for time to research SAFEbuilt's history. Mark Ogles, SAFEbuilt Florida, said they have 500 employees, five offices in Florida, and Bob Doland is currently providing these services for the University of Florida and Orange County. ROLL CALL: Council Member McPartlan — aye Mayor Hill — aye Vice Mayor Kinchen — aye Council Member Dodd — aye Council Member lovino — nay Motion carried 4-1. 50 of 189 Regular City Council & CRA Meeting March 14, 2418 Page Ten 18.028 B. Resolution No. R-18-06 — Amendinq the Buildinq Permit Fee Schedule to Provide for Fire Safetv Inspection Fees, Amendina R-12-20 (Transmittal. R-12-20, R-18-06) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING BUILDING PERMIT FEE SCHEDULE AS NEEDED PURSUANT TO CITY CODE SECTION 26-81; PROVIDING FOR FIRE SAFETY INSPECTION FEES PURSUANT TO SECTION 42-28 PROVIDING FOR CONFLICTS AND EFFECTIVE DATE. The City Attorney read the title of Resolution No. R-18-06. There were no questions from City Council. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve Resolution No. R-18-06. ROLL CALL: Mayor Hill — aye Vice Mayor Kinchen — aye Council Member Dodd — aye Council Member lovino — aye Council Member McPartlan — aye Motion carried 5-0. 18.040 C. Approve Sinale Source Request for Purchase of Twentv (20) XL -185P Portable Radios for the Sebastian Police Department (Transmittal. Quote. Letter, Certificate) The Police Chief explained this is the first step to change out their radios in increments until they are completed in year 2020. MOTION by Vice Mayor Kinchen and SECOND by Council Member McPartlan to approve the purchase of 20 radios for the Sebastian Police Department. ROLL CALL: Vice Mayor Kinchen — aye Council Member lovino — aye Mayor Hill — aye Motion carried 5-0. 15. CITY ATTORNEY MATTERS Council Member Dodd — aye Council Member McPartlan — aye The City Attorney advised that with the scheduled closing on the Sullivan property tomorrow, they would see a general warranty deed executed as opposed to a statutory deed that was discussed at some length during the approval process. The City Manager reported that once the transaction is complete, he will ask the Chief to patrol the area and instruct the Facilities Manager to secure the building. At the March 28 meeting he will supply some options to consider regarding the building. 16. CITY MANAGER MATTERS The City Manager reconfirmed that he named the Building Official, Wayne Eseltine as the City's Fire Marshal. 17. CITY CLERK MATTERS — None 51 of 1$Fj Regular City Council & CRA Meeting March 14, 2018 Page Eleven 18. CITY COUNCIL MATTERS A. Council Member McPartlan Council Member McPartlan thanked the Mayor for reading the CASTLE proclamation at yesterday's ceremony and the staff for setting up the Memory Field at Riverview Park. B. Mayor Hill — None C. Vice Mayor Kinchen — None D. Council Member Dodd Council Member Dodd said the recent internet news article posing the question, "Does Sebastian need more parks or bars?" indicates someone from south Florida will tell Sebastian how to do maintain their parks which isn't true. He explained the City has retained the Treasure Coast Regional Planning Council to produce a document based on input from the City that identifies the long-term plan for the park system to include an inventory of the parks with equipment and future needs. He said it is a reputable organization that provides reputable services to municipalities. He asked to be excused from the March 28 City Council meeting. E. Council Member lovino - None 19. Being no further business, Mayor Hill adjourned the Regular City Council meeting at 8:19 p.m. Approved at the March 28, 2018 Regular City Council meeting. Mayor Jim Hill ATTEST.• Jeanette Williams, MMC — City Clerk 52 of 1$ll CnY J SM�UIAN HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL COUNCIL MEETING DATE: 28 March 2018 AGENDA ITEM TITLE: Rehmann Robson Extension Agreement. RECOMMENDATION: Authorize the City Manager to execute an extension agreement with Rehmann Robson. BACKGROUND: Florida Statutes 218.39 requires the City to have an annual financial audit, the Comprehensive Annual Financial Report (CAFR). In 2011, the independent auditing firm of Rehmann Robson (Rehmann) was competitively selected to perform the City's audit for a five year period. In 2016, Rehmann was granted a two year extension that covered their work through the 2017 audit. The base fee for the last two years has been unchanged at $38,000. When a "Single Audit" was/is required, Rehmann charged $3,500. The City CFO determined the `Single Audit' charge was a "very reasonable" amount. Staff recommends that the City continue using Rehmann for `Single Audits' and CAFRs. Rehmann was particularly exceptional this past year and demonstrated their commitment to work closely with Staff to complete the CAFR and `Single Audit' within our deadlines. They have agreed to continue for an additional two years with a fee increase to $39,100, base fee, and $4,500 when a "Single Audit" is required. FS 218.391 sets procedures for selecting auditors, including a provision that renewals may be accomplished without the use of auditor selection procedures. Staff recommends Rehmann continue as the City's audit provider. IF AGENDA ITEM REOUIRES EXPENDITURE OF FUNDS: Total Cost: $39,100 for each Audit, plus $4,500 for each "Single Audit" when required. Amount of Additional Appropriation Required: None. Fund to Be Utilized for Appropriation: General Fund and Enterprise Funds Administrative Services Department/CFO Review. c�JL--,3 I ATTACHMENTS: 1. Rehmann Robson Engagement Letter. 2. FS 218.391 City Manager Authorization: Date: 22 March 2018 53 of 189 VRehmann Rehmann Robson 5070 North Highway A1A, Suite 250 Vero Beach, FL 32963 Ph: 772.234.8484 Fx: 772.234.8488 rehmann.com March 22, 2018 The Honorable Mayor and Members of the City Council City of Sebastian, Florida 1225 Main Street Sebastian, Florida 32958 Enclosed is the engagement letter for the City of Sebastian, Florida for the year ended September 30, 2018. Government Auditing Standards (as amended) require that we communicate, during the planning stage of an audit, certain information to the City Council. This information includes the auditors' responsibilities in a financial statement audit, including our responsibilities for testing and reporting on compliance with laws and regulations and internal control over financial reporting. The engagement letter includes the items which must be communicated to the City Council. Therefore, please make copies of the attached engagement letter and forward the copies to City Council. Please sign and return the enclosed copy of the attached engagement letter to us at your earliest convenience. Sincerely, Enclosures WIL-� LLC Rehmann is an independent member of Nexia International. ONexia 54 of 189 ' K, R,ehmann March 22, 2018 The Honorable Mayor and Members of the City Council City of Sebastian, Florida 1225 Main Street Sebastian, Florida 32958 Rebmann Robson 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Ph: 772.234.8484 Fx: 772.234.8488 rehmann.com We are pleased to confirm our understanding of the services we are to provide City of Sebastian, Florida (the "City") for the year ended September 30, 2018. We will audit the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the City as of and for the year ended September 30, 2018. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI) such as management's discussion and analysis (MDftA), to supplement the City's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management's Discussion and Analysis 2. Schedules of Required by GASB 67 and 68 - Pension Plan 3. Schedules of Funding Progress and Employer Contributions - OPEB Plan We have also been engaged to report on supplementary information other than RSI, such as combining and individual fund financial statements, that accompanies the City's basic financial statements. We will subject the supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole. The following other information accompanying the basic financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will disclaim an opinion: 1. Introductory section of the Comprehensive Annual Financial Report 2. Statistical section of the Comprehensive Annual Financial Report Rehmann is an independent member of Nma in6ernarlOnai. * Noxia 55 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 2 Audit Objectives The objective of our audit is the expression of opinions as to whether the City's basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the basic financial statements taken as a whole. Our audit of the City's financial statements does not relieve management or those charged with governance of their responsibilities. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the City and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the City's financial statements. Our report will be addressed to the City Council. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis -of -matter or other -matter paragraphs to our report. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with management in advance. If circumstances occur and come to our attention related to the condition of the City's records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, or we become aware that information provided by the City is incorrect, incomplete, or otherwise unsatisfactory which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The reports on internal control and compliance will each include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance, and the result of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the City is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. The concept of materiality is inherent in the work of an independent auditor. An independent auditor places greater emphasis on those items that have, on a relative basis, more importance to the financial statements and greater possibilities of material error than with those items of lesser importance or those in which the possibility of material error is remote. For this purpose, materiality has been defined as "the magnitude of an omission or misstatement of accounting and financial reporting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement." 56 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 3 Audit Procedures and Our Responsibilities—General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We may request written representations from the City's attorneys as part of the engagement, and they may bill the City for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from management about the financial statements and related matters. We have advised the City of the limitations of our audit regarding the detection of fraud and the possible effect on the financial statements (including misappropriation of cash or other assets). We can, as a separate engagement, perform extended procedures specifically designed to potentially detect defalcations. Management acknowledges that the City has not engaged us to do so and does not wish to do so at this time. Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will assist with the preparation of the City's financial statements and related notes. Management will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and that management has reviewed and approved the financial statements and related notes prior to their issuance and has accepted responsibility for them. Management agrees to assume all management responsibilities for any nonaudit services we provide; oversee the services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, and/or experience to oversee any nonaudit services we provide; evaluate the adequacy and results of these or other nonattest services provided by our Firm; and understand and accept responsibility for the results of such services. 57 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 4 We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Audit Procedures - Internal Controls Our audit will include obtaining an understanding of the City and its business environment, including internal control over financial reporting, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing and extent of further audit procedures that are appropriate in the circumstances. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control, or to identify significant deficiencies or material weaknesses in internal control, or to express an opinion on the effectiveness of internal control over financial reporting. However, during the audit, we will communicate to the appropriate level of management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. These matters refer to significant matters related to the financial statement audit that are, in our professional judgment, relevant to the responsibilities of those charged with governance in overseeing the City's financial reporting process. When applicable, we are responsible for communicating certain matters required by laws or regulations, or by additional requirements that may be applicable to this engagement. Auditing standards generally accepted in the United States of America do not require the independent auditor to design or perform procedures for the purpose of identifying other matters to communicate with those charged with governance. Management is responsible for assessing the implications of and correcting any internal control -related matters brought to the City's attention by us. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Management Responsibilities Management is solely and completely responsible for designing, implementing, and maintaining effective internal control over financial reporting, including ongoing monitoring activities; to help ensure that appropriate goals and objectives are met; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with an acceptable financial reporting framework. Management is responsible for determining, and has determined, that the applicable and appropriate financial reporting framework to be used in the preparation of the City's financial statements is accounting principles generally accepted in the United States of America (GAAP). Management is also solely and completely responsible for making all financial records and related information available to us and for ensuring that financial information is reliable and properly recorded. Management is also responsible for providing us with (1) access to all information of which management 58 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 5 is aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request from management for the purpose of the audit, and (3) unrestricted access to persons within the City from whom we determine it necessary to obtain audit evidence. Management's responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. We understand that management will provide us with such information required for our audit, including a reasonably adjusted trial balance, and that management is responsible for the accuracy and completeness of that information. Assistance provided by our Firm in the preparation of a reasonably adjusted trial balance is considered an additional billable service. We will advise management (and the City Council, as necessary) about appropriate accounting principles and their application and may assist in the preparation of the City's financial statements, but the responsibility for the financial statements remains with management with oversight by those charged with governance. As part of our engagement, we may propose standard, adjusting, or correcting journal entries to the City's financial statements. Management is responsible for reviewing the entries, understanding the nature of any proposed entries and the impact they have on the financial statements, and the implications of such entries on the City's internal control over financial reporting. Further, the City is responsible for designating a qualified management -level individual to be responsible and accountable for overseeing these services. Management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Management's responsibilities include informing us of its knowledge of any allegations of fraud, suspected fraud, or illegal acts affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, management is responsible for identifying and ensuring that the City complies with applicable Laws, regulations, contracts, agreements and grants and for taking timely and appropriate steps to remedy any fraud, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for the preparation of the supplementary information that is presented fairly in relation to the basic financial statements. Management agrees to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. Management also agrees to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Management's responsibilities include acknowledging to us in the representation letter that (1) management is responsible for presentation of the supplementary information in accordance with GAAP; (2) that management believes the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) that the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) management has disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. 59 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 6 Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. Management is also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as management's planned corrective actions for the report, and for the timing and format for providing that information. During the course of our engagement, we will request information and explanations from management regarding the City's operations, internal control over financial reporting, various matters concerning fraud risk, future plans, specific transactions, and accounting systems and procedures. At the conclusion of our engagement, we will require, as a precondition to the issuance of our report, that management provide certain representations in a written management representation letter. Fees Our fee for the audit services for the year ended September 30, 2018 will be charged at rates commensurate with the value of our professional services rendered and are not expected to exceed $39,100. A separate fee of $4,500 will be added if a single audit is required. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. This fee is based on the assumption that unexpected circumstances will not be encountered during the audit. This fee is based on anticipated cooperation from the City's personnel, continued readiness and proactive assistance on their part in providing us with complete and accurate information (whether financial or nonfinancial in nature) considered necessary by us to form an appropriate opinion, and the assumption that unexpected circumstances will not be encountered during the audit. Such circumstances include, but are not necessarily limited to significant addition or deletion of funds, component units or related entities and first-time application of significant new professional accounting or auditing pronouncements. In addition, the fee above assumes management will analyze and maintain appropriate support for significant valuation assertions embodied in the financial statements including the valuation of investment securities, the actuarial methods and assumptions used to calculate the net pension and other postemployment benefits liabilities, impairment of capital assets including those held for sale, the valuation of inventories and land held for resale, allowances for uncollectible receivables, and the estimate for incurred -but -not -reported self insurance claims. If significant additional time is necessary, we will discuss the related circumstances with management and arrive at a new fee estimate, which may or may not occur before we incur the additional time. In these circumstances, we may also issue a change order form (an attached example is provided.) Engagement Administration, and Other Management shall discuss any independence matters with Rehmann that, in management's judgment, could bear upon Rehmann's independence. We will provide copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. 60 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 7 The audit documentation for this engagement is the property of Rehmann and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a cognizant or grantor agency for audit or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify management of any such request. If requested, access to such audit documentation will be provided under the supervision of Rehmann personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the cognizant agency, oversight agency for audit, or pass-through City. if we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to destroying the audit documentation. Our audit engagement and responsibility as auditors ends on delivery of our audit report. Any follow-up services that might be required will be part of a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. Government Auditing Standards require that we provide the City with a copy of our most recent external peer review report and any subsequent peer review reports received during the period of the contract. Our 2017 peer review report accompanies this letter. This engagement letter and the attached Rehmann Audit Engagement Letter Terms and Conditions reflect the entire understanding between us relating to the audit services covered by this agreement. This agreement may not be amended or varied except by a written document signed by both parties. it replaces and supersedes any previous proposals, correspondence, and understandings, whether written or oral. The agreements of the City and Rehmann contained in this document shall survive the completion or termination of this engagement. If any term hereof is found unenforceable or invalid, this shall not affect the other terms hereof, all of which shall continue in effect as if the stricken term had not been included. We appreciate the opportunity to be of service to the City and believe the arrangements outlined above and in the attached Rehmann Audit Engagement Letter Terms and Conditions accurately summarize the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement, please sign the enclosed copy of this document and return it to us. �4L4_1t- LLL Robert R. Harris, CPA, CFF Principal Executive responsible for coordinating and administering client services P. Ross Cotherman, CPA Principal Executive responsible for supervising the engagement and signing our report 61 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 8 ACKNOWLEDGED AND ACCEPTED: This letter correctly sets forth the understanding of City of Sebastian, Florida. Officer Signature Printed Name Title Date 62 of 189 Rehmann Audit Engagement Letter and Conditions ADDITIONAL SERVICES - The City may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with management regarding the scope of the additional services and the estimated separate fees. We also may issue a change order form (an attached example is provided), or a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our attest services will continue to be governed by the terms of this engagement letter. CODE OF CONDUCT - Management is responsible for identifying any violations by employees of the City's code of conduct. CHANGES IN STANDARDS, LAWS AND REGULATIONS - We perform services for the City based on present professional standards, laws and regulations. While we may on occasion be able to communicate with management with respect to changes in professional standards, laws and regulations, as a general principle we cannot undertake with clients to advise them of every change that may occur. The City can always obtain reassurance in this regard by contacting us for an updated review of the City's situation. MANAGEMENT'S REPRESENTATIONS - The procedures we will perform in our engagement and the conclusions we reach as a basis for our report will be heavily influenced by the written and oral representations that we receive from management. Accordingly, false, misleading, incomplete or omitted representations could cause us to expend unnecessary efforts or could cause material error or a fraud to go undetected by our procedures. In view of the foregoing, the City agrees that we shall not be responsible for any material misstatements in the City's financial statements that we may fail to detect as a result of false, inaccurate, incomplete, or misleading representations that are made to us by management. In addition, the City further agrees to indemnify and hold us harmless for any liability and all reasonable costs, including legal fees, that we may incur as a result of the services performed under this engagement in the event there are false or misleading representations made to us by any member of the City's management. CLIENT ASSISTANCE - We understand that the City's employees will prepare all cash, accounts receivable, and other confirmations we request and will locate and refile any documents selected by us for testing. In addition, management will provide us with copies of alt minutes and other documents that we believe may have a bearing on our evaluation of the City's financial affairs. WORK SPACE - The City shall provide reasonable work space for Rehmann personnel at audit work sites, as well as occasional clerical support services. The City understands that Rehmann's performance is dependent on the City's timely and effective satisfaction of its own activities and responsibilities in connection with this engagement, as well as timely decisions and approvals by City personnel. ACCURACY AND COMPLETENESS OF INFORMATION - Management agrees to ensure that all information provided to us is accurate and complete in all material respects, contains no material omissions and is updated on a prompt and continuous basis. In addition, management will also be responsible for obtaining all third -party consents, if any, required to enable Rehmann to access and use any third -party products necessary to our performance. EMAIL - The City acknowledges that (a) Rehmann, the City and others, if any, participating in this engagement may correspond or convey documentation via Internet a -mail unless the City expressly requests otherwise, (b) no party has control over the performance, reliability, availability, or security of Internet e-mail, and (c) Rehmann shall not be liable for any loss, damage, expense, harm or inconvenience resulting from the toss, delay, interception, corruption, or alteration of any Internet a -mail due to any reason beyond Rehmann's reasonable control. OFFERS OF EMPLOYMENT - Professional standards require us to be independent with respect to the City in the performance of our services. Any discussions that management has with personnel of our Firm regarding employment could pose a threat to our independence. Therefore, we request that management inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence. Neither party shall, during the term of this engagement letter and for one (1) year after its termination, solicit for hire as an employee, consultant or otherwise any of the other party's personnel without such other party's express written consent. If the City desires to offer employment to a Rebmann associate and the associate is hired in any capacity by the City, a market-driven compensation placement fee may apply. ADDITIONAL FEES AND BILLING POLICIES - It must be understood that the nature of our engagement requires us to exercise our independent professional judgment with respect to various auditing, accounting and related issues. In reaching our conclusions, we must retain the right to judge the nature and scope of the work required in order to conform to professional standards, as well as the work we deem necessary to enable us to reach the conclusions and form the opinions required of us. If our judgment as to the scope of the work required causes us to reassess our estimate of fees for this engagement, we will so advise the City. We reserve the right to refrain from performing additional work (and thereby incurring additional time charges) unless and until the City has confirmed its understanding of, and agreement to, any additional estimated charges. Our fee estimate is based upon our discussions with management, in which management has disclosed no unusual problems or issues which would require us to conduct an audit of unusual scope or otherwise expend time and effort in excess of that normally anticipated in an engagement of this type. The estimate also assumes that we will have the full cooperation of City personnel, as required, and that there is a reasonable continuity of City personnel familiar with the matters to which our engagement relates. In addition, our fee is based on the experience level of our personnel, at their respective standard hourly rates, performing certain audit procedures at certain timeframes. If we are caused to vary from that planning formula, additional fees will need to be charged to allow for more experienced personnel performing the work, reallocation of our client priority, overtime, etc. Further, management will provide us with the schedules and records that we request (which ordinarily are detailed in a request list in advance of our fieldwork) and that all such schedules and records will be provided to us timely in accordance with the scheduled fieldwork dates, to be mutually agreed upon. If the requested schedules and records are not provided to us in accordance with the scheduled dates and we are unable to continue our work, we will resume our work as soon as the schedules and records are provided to us and our professionals assigned to the engagement again become available. As a result of well-publicized events, global economic convergence, and the continued evolution of the accounting profession, accounting and auditing standard setters and regulators are continually evaluating the need for changes that may affect the City. Such changes may result in changes in financial reporting and expanding the nature, timing and scope of activities we are required to perform to provide the services discussed in this letter. Proposed changes and shortened deadlines could result in a reduction of the level of assistance and preparedness the City is able to provide. We expect that our clients may continue to look to us to assist them with these changes. To the extent any changes require us to increase the time required to provide the services described in this letter or to complete new tasks required by such changes, we reserve the right to adjust our fees appropriately. We will endeavor to advise the City of anticipated changes to our fees on a timely basis. In accordance with our Firm pol€cies, work may be suspended if the City's account becomes 30 days or more overdue and will not be resumed until the account is paid in full or we have a definitive payment agreement approved by our Firm administrator in Saginaw, Michigan. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed even if we have not issued our report. The City will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Our terms and conditions impose a late charge of 1.5% per month, which is an annual percentage rate of 18%. Balances not paid within 30 63 of 189 Rehmann Audit Engagement Letter and Conditions days of the receipt of invoice are past due and a late charge of 1.5% will be applied to the entire past due amount. CLAIMS - Because there are inherent difficulties in recalling or preserving information as the period after an engagement increases, the City agrees that, notwithstanding the statute of limitations of any particular State or U.S. Territory, any claim based on the audit engagement must be filed within 12 months after performance of our service, unless management has previously provided us with a written notice of a specific defect in our services that forms the basis of the claim. TERMINATION OF SERVICES - We reserve the right to suspend or terminate services for reasonable cause such as failure to pay our invoices on a timely basis or failure to provide adequate information in response to our inquiries necessary for successful performance of our audit services. Our engagement will be deemed to be completed upon written notification of termination, even if we have not completed the audit and issued our signed auditors' report. The City is obligated to compensate us for the time expended to that point and to reimburse us for all out-of-pocket expenditures through the date of termination. We acknowledge the City's right to terminate our services at any time, and the City acknowtedges our right to withdraw at any time, including, but not limited to, for example, instances where, in our judgment, (a) the conditions in the first paragraph of the Audit Objectives section of this letter exist, (b) our independence has been impaired, (c) we can no longer rely on the integrity of management, (d) management (or the Audit Committee, if applicable) fails to reasonably support our efforts to perform the engagement in accordance with what we believe is necessary to comply with professional standards, or (e) a lack of professionalism exhibited by management demonstrates a lack of respect for our personnel such as that evidenced in inappropriate or threatening language/emails, subject in either case to our right to payment for charges incurred to the date of termination or resignation. In the event that we determine to resign, and the City seeks damages allegedly resulting from such resignation, our maximum liability to the City in the event we are held liable because of such resignation shall be limited to the fees actually paid to us for current year audit work performed up to the date of resignation. REPRODUCTION OF FINANCIAL STATEMENTS - If the City voluntarily intends to publish or otherwise reproduce its financial statements concurrently with the original issuance thereon of our audit report and/or make reference to our Firm name, such as for inclusion in an annual report (such as, for example, in a CAFR), prospectus or similar document, the City agrees to provide us with printer's proofs, drafts, or masters for our review and approval before printing. The City also agrees to provide us with a copy of the final reproduced material for our approval before it is distributed. Fees, if any, for issuance or inclusion of our audit report and/or any other reference to our Firm in such other document, will be based on our standard hourly rates. If the City decides to include, publish or otherwise reproduce the financial statements and our report thereon at a date subsequent to their original issuance, such as for inclusion in a Preliminary or Official Statement in connection with a sate of bonds or notes, or other securities, or in a prospectus or similar offering or other document (hereinafter referred to as the "document"), our Firm is presumed not to be associated with such document, and we have no obligation to perform any procedures with respect to such document. In these circumstances, the City agrees to include in the document a statement that we have not been engaged to perform and have not performed, since the date of our report being reproduced, any procedures on the financial statements contained in such document or on the unaudited financial or other information contained in the document, or on the document itself. If, however, management or the City's agent (such as an underwriter, bond counsel, financial advisor, etc.) requests our involvement, such as engaging us to prepare a written acknowledgement (sometimes referred to as a "consent" or "agree to include") letter prior to including our audit report in such a document, or engaging us to assist in preparing or reviewing financial or other information contained in such document, our Firm then becomes associated with the document and in accordance with professional standards, we will be required to perform certain limited procedures with respect to this or other unaudited information contained in the document. Fees for reissuance or inclusion of our audit report in such a document wit/ be based an our standard hourly rates. If the City wishes to make reference in such a document to our Firm's role in connection with the purpose of the document, the caption "Independent Auditors" may be used to title or label that section of the document. In accordance with professional standards, the caption "Experts" should not be used, nor should our Firm be referred to as "experts" anywhere in the document. With regard to electronic dissemination of audited financial statements, including financial statements published electronically on the City's Internet Web site, the City understands that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. INFORMAL ADVICE • As part of our engagement we may provide advice on operating, internal control over financial reporting and other matters that come to our attention. Informal advice is not considered to be a consulting service unless we have entered into a separate engagement. THIRD PARTY PROCEEDINGS - As a result of our prior or future services to the City, we might be requested or subpoenaed to provide information or documents to management or a third party in a legal, administrative, mediation, or arbitration or similar proceeding in which we are not a parry. If this occurs, our efforts in complying with such requests will be billable to the City as a separate engagement. We shall be entitled to compensation for our time at our standard hourly rates and reasonable reimbursement for our expenses (including our legal fees) in complying with this request. For all such requests, we will observe the confidentiality requirements of our profession and will notify management promptly of the request. This paragraph will survive the termination of this agreement for any reason, and will be binding upon successors to the City. PEER REVIEW - Our Firm, as wet/ as other major accounting firms, participates in a "peer review" program covering our audit and accounting practices. This program requires that once every three years we subject our quality assurance practices to an examination by another accounting firm. As part of the process, the other firm will review a sample of our work. It is possible that the work we perform for the City may be selected by the other firm for their review. If it is, the other firm is bound by professional standards to keep all information confidential. If management objects to having the work we perform for the City reviewed by our peer reviewer, please notify us in writing. PROMOTIONAL MATERIALS - The City consents to Rehmann's use of your City name and a factual description of the services to be performed by Rehmann under this agreement in Rehmann's advertising and promotional materials and other proposal opportunities. MEDIATION - If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to binding arbitration or litigation. Costs of any mediation proceeding shalt be shared equally by all parties. GOVERNING LAW - This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, without regard to the principles of conflicts of taw thereof. 64 of 189 PA -4d Rh man n ess wrsered. EXAMPLE CHANGE ORDER Client: City of Sebastian, Florida (the "City") Date: Project Description (and estimated completion date, if appropriate): Estimated Additional Fees: S We believe it is our responsibility to exceed the City's expectations. This Change Order is being prepared because performance by us of the above project and/or additional service efforts was not anticipated in our original Agreement dated March 22, 2018. The estimated fees for the above project have been mutually agreed upon by the City and Rehmann. It is our goal to ensure that the City is never surprised by the price for any Rehmann service and, therefore, we have adopted the Change Order Policy. The estimated additional amount above is due and payable upon completion of the project described. If management agrees with the above project description and the estimated fee amount, please authorize and date the Change Order below. A copy is enclosed for the City's records. Thank you for letting us serve the City. Agreed to and accepted: Officer Signature Printed Name Title Date 65 of 189 Clifton LarsonAllen LLP epli, CLAconnect.com Clifton LarsonAllen REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL To the Principals of Rehmann Robson LLC The National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Rehmann Robson LLC, a member of Rehmann, LLC (the Firm) applicable to engagements not subject to PCAOS permanent inspection in effect for the year ended March 31, 2017. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the standards may be found at www.aicna.orplprsummarv. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The Firm is responsible for designing a system of quality control and complying with it to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The Firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the Firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards (including compliance audits under the Single Audit Act), audits of employee benefit plans, an audit performed under the Federal Deposit Insurance Corporation Improvement Act (FDICIA) and examinations of service organizations (SOC 1 and SOC 2 engagements). As a part of our peer review, we considered reviews by regulatory entities as communicated by the Firm in determining the nature and extent of our procedures. A member a^ Nexia International 66 of 189 Rehmann Robson LLC Page 2 Opinion In our opinion, the system of quality control for the accounting and auditing practice of Rehmann Robson LLC applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended March 31, 2017, has been suitably designed and complied with to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Rehmann Robson LLC has received a peer review rating of pass. LLQ CliftonLarsonAllen LLP Minneapolis, Minnesota September 15, 2017 67 of 189 March 22, 2018 The Honorable Mayor and Members of the City Council City of Sebastian, Florida 1225 Main Street Sebastian, Florida 32958 Enclosed is the engagement letter for the City of Sebastian, Florida for the year ended September 30, 2019. Government Auditing Standards (as amended) require that we communicate, during the planning stage of an audit, certain information to the City Council. This information includes the auditors' responsibilities in a financial statement audit, including our responsibilities for testing and reporting on compliance with laws and regulations and internal control over financial reporting. The engagement Letter includes the items which must be communicated to the City Council. Therefore, please make copies of the attached engagement letter and forward the copies to City Council. Please sign and return the enclosed copy of the attached engagement letter to us at your earliest convenience. Sincerely, �-]r4a.� LLC Enclosures Rehman is an independent member of Nexia fntemational. ONexio 68 of 189 Robson Nehmann 5070NoRebmann 5070 rCh Highway A1A, Suite 250 Vero Beach, FL 32963 Ph: 772.234.8484 Fx: 772.234.8488 rehmann.com March 22, 2018 The Honorable Mayor and Members of the City Council City of Sebastian, Florida 1225 Main Street Sebastian, Florida 32958 Enclosed is the engagement letter for the City of Sebastian, Florida for the year ended September 30, 2019. Government Auditing Standards (as amended) require that we communicate, during the planning stage of an audit, certain information to the City Council. This information includes the auditors' responsibilities in a financial statement audit, including our responsibilities for testing and reporting on compliance with laws and regulations and internal control over financial reporting. The engagement Letter includes the items which must be communicated to the City Council. Therefore, please make copies of the attached engagement letter and forward the copies to City Council. Please sign and return the enclosed copy of the attached engagement letter to us at your earliest convenience. Sincerely, �-]r4a.� LLC Enclosures Rehman is an independent member of Nexia fntemational. ONexio 68 of 189 KRebmann Rehmann Robson 5070 North Highway A1A, Suite 250 Vero Beach, FL 32963 Ph: 772.234.8484 Fx: 772.234.8488 rehmann.com March 22, 2018 The Honorable Mayor and Members of the City Council City of Sebastian, Florida 1225 Main Street Sebastian, Florida 32958 We are pleased to confirm our understanding of the services we are to provide City of Sebastian, Florida (the "City") for the year ended September 30, 2099. We will audit the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the City as of and for the year ended September 30, 2019. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI) such as management's discussion and analysis (MDFtA), to supplement the City's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on- the information because the Limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: Management's Discussion and Analysis Schedules of Required by GASB 67 and 68 - Pension Plan Schedules of Funding Progress and Employer Contributions - OPEB Plan We have also been engaged to report on supplementary information other than RSI, such as combining and individual fund financial statements, that accompanies the City's basic financial statements. We will subject the supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole. The following other information accompanying the basic financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will disclaim an opinion: Introductory section of the Comprehensive Annual Financial Report Statistical section of the Comprehensive Annual Financial Report Rebmann is an independent member of Nexia tnterrtational. ONexia 69 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 2 Audit Objectives The objective of our audit is the expression of opinions as to whether the City's basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the basic financial statements taken as a whole. Our audit of the City's financial statements does not relieve management or those charged with governance of their responsibilities. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the City and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the City's financial statements. Our report will be addressed to the City Council. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis -of -matter or other -matter paragraphs to our report. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with management in advance. If circumstances occur and come to our attention related to the condition of the City's records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, or we become aware that information provided by the City is incorrect, incomplete, or otherwise unsatisfactory which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The reports on internal control and compliance will each include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance, and the result of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the City is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. The concept of materiality is inherent in the work of an independent auditor. An independent auditor places greater emphasis on those items that have, on a relative basis, more importance to the financial statements and greater possibilities of material error than with those items of lesser importance or those in which the possibility of material error is remote. For this purpose, materiality has been defined as "the magnitude of an omission or misstatement of accounting and financial reporting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement." 70 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 3 Audit Procedures and Our Responsibilities—General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We may request written representations from the City's attorneys as part of the engagement, and they may bill the City for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from management about the financial statements and related matters. We have advised the City of the limitations of our audit regarding the detection of fraud and the possible effect on the financial statements (including misappropriation of cash or other assets). We can, as a separate engagement, perform extended procedures specifically designed to potentially detect defalcations. Management acknowledges that the City has not engaged us to do so and does not wish to do so at this time. Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will assist with the preparation of the City's financial statements and related notes. Management will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and that management has reviewed and approved the financial statements and related notes prior to their issuance and has accepted responsibility for them. Management agrees to assume all management responsibilities for any nonaudit services we provide; oversee the services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, and/or experience to oversee any nonaudit services we provide; evaluate the adequacy and results of these or other nonattest services provided by our Firm; and understand and accept responsibility for the results of such services. 71 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 4 We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Audit Procedures - Internal Controls Our audit will include obtaining an understanding of the City and its business environment, including internal control over financial reporting, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing and extent of further audit procedures that are appropriate in the circumstances. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control, or to identify significant deficiencies or material weaknesses in internal control, or to express an opinion on the effectiveness of internal control over financial reporting. However, during the audit, we will communicate to the appropriate level of management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. These matters refer to significant matters related to the financial statement audit that are, in our professional judgment, relevant to the responsibilities of those charged with governance in overseeing the City's financial reporting process. When applicable, we are responsible for communicating certain matters required by laws or regulations, or by additional requirements that may be applicable to this engagement. Auditing standards generally accepted in the United States of America do not require the independent auditor to design or perform procedures for the purpose of identifying other matters to communicate with those charged with governance. Management is responsible for assessing the implications of and correcting any internal control -related matters brought to the City's attention by us. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Management Responsibilities Management is solely and completely responsible for designing, implementing, and maintaining effective internal control over financial reporting, including ongoing monitoring activities; to help ensure that appropriate goals and objectives are met; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with an acceptable financial reporting framework. Management is responsible for determining, and has determined, that the applicable and appropriate financial reporting framework to be used in the preparation of the City's financial statements is accounting principles generally accepted in the United States of America (GAAP). Management is also solely and completely responsible for making all financial records and related information available to us and for ensuring that financial information is reliable and properly recorded. Management is also responsible for providing us with (1) access to all information of which management 72 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 5 is aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request from management for the purpose of the audit, and (3) unrestricted access to persons within the City from whom we determine it necessary to obtain audit evidence. Management's responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. We understand that management will provide us with such information required for our audit, including a reasonably adjusted trial balance, and that management is responsible for the accuracy and completeness of that information. Assistance provided by our Firm in the preparation of a reasonably adjusted trial balance is considered an additional billable service. We will advise management (and the City Council, as necessary) about appropriate accounting principles and their application and may assist in the preparation of the City's financial statements, but the responsibility for the financial statements remains with management with oversight by those charged with governance. As part of our engagement, we may propose standard, adjusting, or correcting journal entries to the City's financial statements. Management is responsible for reviewing the entries, understanding the nature of any proposed entries and the impact they have on the financial statements, and the implications of such entries on the City's internal control over financial reporting, Further, the City is responsible for designating a qualified management -level individual to be responsible and accountable for overseeing these services. Management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Management's responsibilities include informing us of its knowledge of any allegations of fraud, suspected fraud, or illegal acts affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, management is responsible for identifying and ensuring that the City complies with applicable laws, regulations, contracts, agreements and grants and for taking timely and appropriate steps to remedy any fraud, violations of contracts or grant agreements, or abuse that we may report. Management is responsible for the preparation of the supplementary information that is presented fairly in relation to the basic financial statements. Management agrees to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. Management also agrees to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Management's responsibilities include acknowledging to us in the representation letter that (1) management is responsible for presentation of the supplementary information in accordance with GAAP; (2) that management believes the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) that the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) management has disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. 73 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 6 Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. Management is also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as management's planned corrective actions for the report, and for the timing and format for providing that information. During the course of our engagement, we will request information and explanations from management regarding the City's operations, internal control over financial reporting, various matters concerning fraud risk, future plans, specific transactions, and accounting systems and procedures. At the conclusion of our engagement, we will require, as a precondition to the issuance of our report, that management provide certain representations in a written management representation letter. Fees Our fee for the audit services for the year ended September 30, 2018 will be charged at rates commensurate with the value of our professional services rendered and are not expected to exceed $39,100. A separate fee of $4,500 will be added if a single audit is required. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. This fee is based on the assumption that unexpected circumstances will not be encountered during the audit. This fee is based on anticipated cooperation from the City's personnel, continued readiness and proactive assistance on their part in providing us with complete and accurate information (whether financial or nonfinancial in nature) considered necessary by us to form an appropriate opinion, and the assumption that unexpected circumstances will not be encountered during the audit. Such circumstances include, but are not necessarily limited to significant addition or deletion of funds, component units or related entities and first-time application of significant new professional accounting or auditing pronouncements. In addition, the fee above assumes management will analyze and maintain appropriate support for significant valuation assertions embodied in the financial statements including the valuation of investment securities, the actuarial methods and assumptions used to calculate the net pension and other postemployment benefits liabilities, impairment of capital assets including those held for sale, the valuation of inventories and land held for resale, allowances for uncollectible receivables, and the estimate for incurred -but -not -reported self insurance claims. If significant additional time is necessary, we will discuss the related circumstances with management and arrive at a new fee estimate, which may or may not occur before we incur the additional time. In these circumstances, we may also issue a change order form (an attached example is provided.) Engagement Administration, and Other Management shall discuss any independence matters with Rehmann that, in management's judgment, could bear upon Rehmann's independence. We will provide copies of our reports to the City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. 74 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 7 The audit documentation for this engagement is the property of Rehmann and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a cognizant or grantor agency for audit or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify management of any such request. if requested, access to such audit documentation will be provided under the supervision of Rehmann personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the cognizant agency, oversight agency for audit, or pass-through City. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to destroying the audit documentation. Our audit engagement and responsibility as auditors ends on delivery of our audit report. Any follow-up services that might be required will be part of a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. Government Auditing Standards require that we provide the City with a copy of our most recent external peer review report and any subsequent peer review reports received during the period of the contract. Our 2017 peer review report accompanies this letter. This engagement letter and the attached Rehmann Audit Engagement Letter Terms and Conditions reflect the entire understanding between us relating to the audit services covered by this agreement. This agreement may not be amended or varied except by a written document signed by both parties. It replaces and supersedes any previous proposals, correspondence, and understandings, whether written or oral. The agreements of the City and Rehmann contained in this document shall survive the completion or termination of this engagement. If any term hereof is found unenforceable or invalid, this shall not affect the other terms hereof, all of which shall continue in effect as if the stricken term had not been included. We appreciate the opportunity to be of service to the City and believe the arrangements outlined above and in the attached Rehmann Audit Engagement Letter Terms and Conditions accurately summarize the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement, please sign the enclosed copy of this document and return it to us. Robert R. Harris, CPA, CFF Principal Executive responsible for coordinating and administering client services LLC P. Ross Cotherman, CPA Principal Executive responsible for supervising the engagement and signing our report 75 of 189 The Honorable Mayor and Members of the City Council City of Sebastian, Florida March 22, 2018 Page 8 ACKNOWLEDGED AND ACCEPTED: This letter correctly sets forth the understanding of City of Sebastian, Florida. Officer Signature Printed Name Title Date 76 of 189 Rehmann Audit Engagement Letter and Conditions ADDITIONAL SERVICES - The City may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with management regarding the scope of the additional services and the estimated separate fees. We also may issue a change order form (an attached example is provided), or a separate engagement letter covering the additional services. In the absence of anyother written communication from us documenting such additional services, our attest services will continue to be governed by the terms of this engagement letter. CODE OF CONDUCT - Management is responsible for identifying any violations by employees of the City's code of conduct. CHANGES IN STANDARDS, LAWS AND REGULATIONS - We perform services for the City based on present professional standards, laws and regulations. While we may on occasion be able to communicate with management with respect to changes in professional standards, laws and regulations, as a general principle we cannot undertake with clients to advise them of every change that may occur. The City can always obtain reassurance in this regard by contacting us for an updated review of the City's situation. MANAGEMENT'S REPRESENTATIONS - The procedures we will perform in our engagement and the conclusions we reach as a basis for our report will be heavily influenced by the written and oral representations that we receive from management. Accordingly, false, misleading, incomplete or omitted representations could cause us to expend unnecessary efforts or could cause material error or a fraud to go undetected by our procedures. In view of the foregoing, the City agrees that we shall not be responsible for any material misstatements in the City's financial statements that we may fail to detect as a result of false, inaccurate, incomplete, or misleading representations that are made to us by management. In addition, the City further agrees to indemnify and hold us harmless for any liability and all reasonable costs, including legal fees, that we may incur as a result of the services performed under this engagement in the event there are false or misleading representations made to us by any member of the City's management. CLIENT ASSISTANCE - We understand that the City's employees wilt prepare all cash, accounts receivable, and other confirmations we request and will locate and refile any documents selected by us for testing. In addition, management will provide us with copies of all minutes and other documents that we believe may have a bearing on our evaluation of the City's financial affairs. WORK SPACE - The City shall provide reasonable work space for Rehmann personnel at audit work sites, as well as occasional clerical support services. The City understands that Rehmann's performance is dependent on the City's timely and effective satisfaction of its own activities and responsibilities in connection with this engagement, as well as timely decisions and approvals by City personnel. ACCURACY AND COMPLETENESS OF INFORMATION - Management agrees to ensure that aR information provided to us is accurate and complete in all material respects, contains no material omissions and is updated on a prompt and continuous basis. In addition, management will also be responsible for obtaining all third -party consents, if any, required to enable Rehmann to access and use any third -party products necessary to our performance. EMAIL - The City acknowledges that (a) Rehmann, the City and others, if any, participating in this engagement may correspond or convey documentation via Internet e-mail unless the City expressly requests otherwise, (b) no party has control over the performance, reliability, availability, or security of Internet e-mail, and (c) Rehmann shall not be liable for any loss, damage, expense, harm or inconvenience resulting from the loss, delay, interception, corruption, or alteration of any Internet e-mail due to any reason beyond Rehmann's reasonable control. OFFERS OF EMPLOYMENT - Professional standards require us to be independent with respect to the City in the performance of our services. Any discussions that management has with personnel of our Firm regarding employment could pose a threat to our independence. Therefore, we request that management inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence. Neither party shall, during the term of this engagement letter and for one (1) year after its termination, solicit for hire as an employee, consultant or otherwise any of the other party's personnel without such other party's express written consent. If the City desires to offer employment to a Rehmann associate and the associate is hired in any capacity by the City, a market-driven compensation placement fee may apply. ADDITIONAL FEES AND BILLING POLICIES - It must be understood that the nature of our engagement requires us to exercise our independent professional judgment with respect to various auditing, accounting and related issues, In reaching our conclusions, we must retain the right to judge the nature and scope or the work required in order to conform to professional standards, as well as the work we deem necessary to enable us to reach the conclusions and form the opinions required of us. If our judgment as to the scope of the work required causes us to reassess our estimate of fees for this engagement, we will so advise the City. We reserve the right to refrain from performing additional work (and thereby incurring additional time charges) unless and until the City has confirmed its understanding of, and agreement to, any additional estimated charges. Our fee estimate is based upon our discussions with management, in which management has disclosed no unusual problems or issues which would require us to conduct an audit of unusual scope or otherwise expend time and effort in excess of that normally anticipated in an engagement of this type. The estimate also assumes that we will have the full cooperation of City personnel, as required, and that there is a reasonable continuity of City personnel familiar with the matters to which our engagement relates. In addition, our fee is based on the experience level of our personnel, at their respective standard hourly rates, performing certain audit procedures at certain timeframes. if we are caused to vary from that planning formula, additional fees will need to be charged to allow for more experienced personnel performing the work, reallocation of our client priority, overtime, etc. Further, management will provide us with the schedules and records that we request (which ordinarily are detailed in a request list in advance of our fieldwork) and that all such schedules and records will be provided to us timely in accordance with the scheduled fieldwork dates, to be mutually agreed upon. If the requested schedules and records are not provided to us in accordance with the scheduled dates and we are unable to continue our work, we will resume our work as soon as the schedules and records are provided to us and our professionals assigned to the engagement again become available. As a result of well-publicized events, global economic convergence, and the continued evolution of the accounting profession, accounting and auditing standard setters and regulators are continually evaluating the need for changes that may affect the City, Such changes may result in changes in financial reporting and expanding the nature, timing and scope of activities we are required to perform to provide the services discussed in this letter. Proposed changes and shortened deadlines could result in a reduction of the level of assistance and preparedness the City is able to provide. We expect that our clients may continue to took to us to assist them with these changes. To the extent any changes require us to increase the time required to provide the services described in this letter or to complete new tasks required by such changes, we reserve the right to adjust our fees appropriately. We will endeavor to advise the City of anticipated changes to our fees on a timely basis, In accordance with our Firm policies, work may be suspended if the City's account becomes 30 days or more overdue and will not be resumed until the account is paid in full or we have a definitive payment agreement approved by our Firm administrator in Saginaw, Michigan. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed even if we have not issued our report. The City will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Our terms and conditions impose a late charge of 1.5% per month, which is an annual percentage rate of 18%. Balances not paid within 30 77 of 189 Rehmann Audit Engagement Letter and Conditions days of the receipt of invoice are past due and a late charge of 1.5% will be applied to the entire past due amount. CLAIMS - Because there are inherent difficulties in recalling or preserving information as the period after an engagement increases, the City agrees that, notwithstanding the statute of limitations of any particular State or U.S. Territory, any claim based on the audit engagement must be filed within 12 months after performance of our service, unless management has previously provided us with a written notice of a specific defect in our services that forms the basis of the claim. TERMINATION OF SERVICES - We reserve the right to suspend or terminate services for reasonable cause such as failure to pay our invoices on a timeiy basis or failure to provide adequate information in response to our inquiries necessary for successful performance of our audit services. Our engagement will be deemed to be completed upon written notification of termination, even if we have not completed the audit and issued our signed auditors' report. The City is obligated to compensate us for the time expended to that point and to reimburse us for at[ out-of-pocket expenditures through the date of termination. We acknowledge the City's right to terminate our services at any time, and the City acknowledges our right to withdraw at any time, including, but not limited to, for example, instances where, in our judgment, (a) the conditions in the first paragraph of the Audit Objectives section of this letter exist, (b) our independence has been impaired, (c) we can no longer rely on the integrity of management, (d) management (or the Audit Committee, if applicable) fails to reasonably support our efforts to perform the engagement in accordance with what we believe is necessary to comply with professional standards, or (e) a lack of professionalism exhibited by management demonstrates a tack of respect for our personnel such as that evidenced in inappropriate or threatening languagelemails, subject in either case to our right to payment for charges incurred to the date of termination or resignation. In the event that we determine to resign, and the City seeks damages allegedly resulting from such resignation, our maximum liability to the City in the event we are held liable because of such resignation shall be Limited to the fees actually paid to us for current year audit work performed up to the date of resignation. REPRODUCTION OF FINANCIAL STATEMENTS - If the City voluntarily intends to publish or otherwise reproduce its financial statements concurrently with the original issuance thereon of our audit report and/or make reference to our Firm name, such as for inclusion in an annual report (such as, for example, in a CAFR), prospectus or similar document, the City agrees to provide us with printer's proofs, drafts, or masters for our review and approval before printing. The City also agrees to provide us with a copy of the final reproduced material for our approval before it is distributed. Fees, if any, for issuance or inclusion of our audit report and/or any other reference to our Firm in such other document, will be based on our standard hourly rates. If the City decides to include, publish or otherwise reproduce the financial statements and our report thereon at a date subsequent to their original issuance, such as for inclusion in a Preliminary or Official Statement in connection with a sale of bonds or notes, or other securities, or in a prospectus or similar offering or other document (hereinafter referred to as the "document"), our Firm is presumed not to be associated with such document, and we have no obligation to perform any procedures with respect to such document. In these circumstances, the City agrees to include in the document a statement that we have not been engaged to perform and have not performed, since the date of our report being reproduced, any procedures on the financial statements contained in such document or on the unaudited financial or other information contained in the document, or on the document itself. If, however, management or the City's agent (such as an underwriter, bond counsel, financial advisor, etc.) requests our involvement, such as engaging us to prepare a written acknowledgement (sometimes referred to as a "consent" or "agree to include") letter prior to including our audit report in such a document, or engaging us to assist in preparing or reviewing financial or other information contained in such document, our Firm then becomes associated with the document and in accordance with professional standards, we will be required to perform certain limited procedures with respect to this or other unaudited Information contained in the document. Fees for reissuance or inclusion of our audit report in such a document wilt be based on our standard hourly rates. if the City wishes to make reference in such a document to our Firm's role in connection with the purpose of the document, the caption "Independent Auditors" may be used to title or label that section of the document. In accordance with professional standards, the caption "Experts" should not be used, nor should our Firm be referred to as "experts" anywhere in the document. With regard to electronic dissemination of audited financial statements, Including financial statements published electronically on the City's Internet Web site, the City understands that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. INFORMAL ADVICE - As part of our engagement we may provide advice on operating, internal control over financial reporting and other matters that come to our attention. Informal advice is not considered to be a consulting service unless we have entered into a separate engagement. THIRD PARTY PROCEEDINGS - As a result of our prior or future services to the City, we might be requested or subpoenaed to provide information or documents to management or a third party in a legal, administrative, mediation, or arbitration or similar proceeding in which we are not a party. If this occurs, our efforts in complying with such requests will be billable to the City as a separate engagement. We shall be entitled to compensation for our time at our standard hourly rates and reasonable reimbursement for our expenses (including our legal fees) in complying with this request. For all such requests, we will observe the confidentiality requirements of our profession and will notify management promptly of the request. This paragraph will survive the termination of this agreement for any reason, and wilt be binding upon successors to the City. PEER REVIEW - Our Firm, as well as other major accounting firms, participates in a "peer review" program covering our audit and accounting practices. This program requires that once every three years we subject our quality assurance practices to an examination by another accounting firm. As part of the process, the other firm will review a sample of our work. It is possible that the work we perform for the City may be selected by the other firm for their review. If it is, the other firm is bound by professional standards to keep all information confidential. If management objects to having the work we perform for the City reviewed by our peer reviewer, please notify us in writing. PROMOTIONAL MATERIALS - The City consents to Rehmann's use of your City name and a factual description of the services to be performed by Rehmann under this agreement in Rehmann's advertising and promotional materials and other proposal opportunities. MEDIATION - If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to binding arbitration or litigation. Costs of any mediation proceeding shall be shared equally by all parties. GOVERNING LAW -This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, without regard to the principles of confLicts of law thereof. 78 of 189 KI; h man n ess wisdom+ delivered. EXAMPLE CHANGE ORDER Client: City of Sebastian, Florida (the "City") Date: Project Description (and estimated completion date, if appropriate): Estimated Additional Fees: $ We believe it is our responsibility to exceed the City's expectations. This Change Order is being prepared because performance by us of the above project and/or additional service efforts was not anticipated in our original Agreement dated March 22, 2018. The estimated fees for the above project have been mutual[y agreed upon by the City and Rehmann. It is our goal to ensure that the City is never surprised by the price for any Rehmann service and, therefore, we have adopted the Change Order Policy. The estimated additional amount above is due and payable upon completion of the project described. If management agrees with the above project description and the estimated fee amount, please authorize and date the Change Order below. A copy is enclosed for the City's records. Thank you for Letting us serve the City. Agreed to and accepted: Officer Signature Printed Name Title Date 79 of 189 CliftonLarsonAllen LLP CLAconnect.com Clifton LarsonAllen REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL To the Principals of Rehmann Robson LLC The National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Rehmann Robson LLC, a member of Rehmann, LLC (the Firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended March 31, 2017. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the standards may be found at www.aicna.oro/orsummarv. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The Firm is responsible for designing a system of quality control and complying with it to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The Firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the Firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards (including compliance audits under the Single Audit Act), audits of employee benefit plans, an audit performed under the Federal Deposit Insurance Corporation Improvement Act (FDICIA) and examinations of service organizations (SOC 1 and SOC 2 engagements). As a part of our peer review, we considered reviews by regulatory entities as communicated by the Firm in determining the nature and extent of our procedures. A member of Nexia International EiliioJsFi2�. Rehmann Robson LLC Page 2 Opinion In our opinion, the system of quality control for the accounting and auditing practice of Rehmann Robson LLC applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended March 31, 2017, has been suitably designed and complied with to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Rehmann Robson LLC has received a peer review rating of pass. zz-� CliftonLarsonAllen LLP Minneapolis, Minnesota September 15, 2017 81 of 189 3122/2018 The 2017 Florida Statutes Statutes & Constitution :View Statutes : Online Sunshine Select Year: 2017 • Go Title XIV Chapter 218 View Entire TAXATION AND FINANCIAL MATTERS PERTAINING TO POLITICAL Chapter FINANCE SUBDIVISIONS 218.391 Auditor selection procedures.— (1) Each local governmental entity, district school board, charter school, or charter technical career center, prior to entering into a written contract pursuant to subsection (7), except as provided in subsection (8), shall use auditor selection procedures when selecting an auditor to conduct the annual financial audit required in s. 218.39. (2) The governing body of a charter county, municipality, special district, district school board, charter school, or charter technical career center shall establish an audit committee. Each noncharter county shall establish an audit committee that, at a minimum, shall consist of each of the county officers elected pursuant to s. 1(d), Art. VIII of the State Constitution, or a designee, and one member of the board of county commissioners or its designee. The primary purpose of the audit committee is to assist the governing body in selecting an auditor to conduct the annual financial audit required in s. 218.39; however, the audit committee may serve other audit oversight purposes as determined by the entity's governing body. The public shall not be excluded from the proceedings under this section. (3) The audit committee shall: (a) Establish factors to use for the evaluation of audit services to be provided by a certified public accounting firm duly licensed under chapter 473 and qualified to conduct audits in accordance with government auditing standards as adopted by the Florida Board of Accountancy. Such factors shall include, but are not limited to, ability of personnel, experience, ability to furnish the required services, and such other factors as may be determined by the committee to be applicable to its particular requirements. (b) Publicly announce requests for proposals. Public announcements must include, at a minimum, a brief description of the audit and indicate flow interested firms can apply for consideration. (c) Provide interested firms with a request for proposal. The request for proposal shall include information on how proposals are to be evaluated and such other information the committee determines is necessary for the firm to prepare a proposal. (d) Evaluate proposals provided by qualified firms. If compensation is one of the factors established pursuant to paragraph (a), it shall not be the sole or predominant factor used to evaluate proposals. (e) Rank and recommend in order of preference no fewer than three firms deemed to be the most highly qualified to perform the required services after considering the factors established pursuant to paragraph (a). If fewer than three firms respond to the request for proposal, the committee shall recommend such firms as it deems to be the most highly qualified. (4) The governing body shall inquire of qualified firms as to the basis of compensation, select one of the firms recommended by the audit committee, and negotiate a contract, using one of the following methods: (a) If compensation is not one of the factors established pursuant to paragraph (3)(a) and not used to evaluate firms pursuant to paragraph (3)(e), the governing body shall negotiate a contract with the firm ranked first. If the governing body is unable to negotiate a satisfactory contract with that firm, negotiations with that firm shall be formally terminated, and the governing body shall then undertake negotiations with the second -ranked firm. Failing accord with the second -ranked firm, negotiations shall then be terminated with that firm and undertaken with the third -ranked firm. Negotiations with the other ranked firms shalt be undertaken in the sawn0arig, The http:/lwww.leg.state.Fl.uslstatuteslindex.cfm?App_mode=Display_Statute&URL=0200-029910218/Sections/0218.391.htmi 112 3/22/2018 Statutes & Constitution :View Statutes : Online Sunshine governing body, in negotiating with firms, may reopen formal negotiations with any one of the three top-ranked firms, but it may not negotiate with more than one firm at a time. (b) If compensation is one of the factors established pursuant to paragraph (3)(a) and used in the evaluation of proposals pursuant to paragraph (3)(d), the governing body shall select the highest -ranked qualified firm or must document in its public records the reason for not selecting the highest -ranked qualified firm. (c) The governing body may select a firm recommended by the audit committee and negotiate a contract with one of the recommended firms using an appropriate alternative negotiation method for which compensation is not the sole or predominant factor used to select the firm. (d) in negotiations with firms under this section, the governing body may allow a designee to conduct negotiations on its behalf. (5) The method used by the governing body to select a firm recommended by the audit committee and negotiate a contract with such firm must ensure that the agreed-upon compensation is reasonable to satisfy the requirements of s. 218.39 and the needs of the governing body. (6) If the governing body is unable to negotiate a satisfactory contract with any of the recommended firms, the committee shall recommend additional firms, and negotiations shall continue in accordance with this section until an agreement is reached. (7) Every procurement of audit services shall be evidenced by a written contract embodying all provisions and conditions of the procurement of such services. For purposes of this section, an engagement letter signed and executed by both parties shall constitute a written contract. The written contract shall, at a minimum, include the following: (a) A provision specifying the services to be provided and fees or other compensation for such services. (b) A provision requiring that invoices for fees or other compensation be submitted in sufficient detail to demonstrate compliance with the terms of the contract. (c) A provision specifying the contract period, including renewals, and conditions under which the contract may be terminated or renewed. (8) Written contracts entered into pursuant to subsection (7) may be renewed. Such renewals may be done without the use of the auditor selection procedures provided in this section. Renewal of a contract shall be in writing. History.—s. 65, ch. 2001-266; s. 1, ch. 2005-32. Copyright 0 9995-2018 The Florida Legislature • Privacv Statement • Contact Us 83 of 189 http://www.leg.state.D.usistatutes/index.ctm?App_mode=Display_Statute&URL=0200-0299/02181Sections/0218.391,html 212 on OF 5� AN HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL COUNCIL MEETING DATE: AGENDA ITEM TITLE: RECOMMENDATION: 28 March 2018 Sebastian CRA Report Accept the Annual Sebastian CRA Report. BACKGROUND: Florida Statutes require the Community Redevelopment Agency to file a report of activities to the primary government by 31 March of each year and publish in the newspaper a notice of availability of the report. The annual Sebastian Community Redevelopment Agency report of activities for the fiscal year ending 30 September 2017 was jointly prepared by the Community Development Director and Administrative Services Director and is also scheduled to be reviewed by the Community Redevelopment Agency on 28 March 2018. Following acceptance by the City Council, the City Clerk will publish in the newspaper a notice of the Report's availability. IF AGENDA ITEM REOUIRES EXPENDITURE OF FUNDS: Total Cost: $250 for Newspaper Advertisement Amount Budgeted in Current FY: $1,500 for All Advertisements Amount of Appropriation Required: None Fund to Be Utilized for Appropriation: Community Redevelopment Fund Administrative Services Department Review./1 ATTACHMENTS: City Manager Authorization: Date: 22 March 2018 Sebastian CRA Report 50=090515;. SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT Under Chapter 163.356(3)(C) M *A SE AST v -A. HOME OF PELICAN ISLAND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 1.225 MAIN STREET SEBASTIAN, FLORIDA 32958 85 of 189 SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY ANNUAL REPORT TABLE OF CONTENTS Letter of Transmittal i List of Principal Officials History 1 Exhibit I - Sebastian CRA Boundary Accomplishments 3 FY 2017 Sebastian CRA Activities 3 Table 1 — CRA Activity Tax Increment Revenues 4 Exhibit II — Taxable Value in Redevelopment Area 5 Exhibit III — Operating Millage Rates in Redevelopment Area 6 Exhibit IV — Tax Increment Revenue 7 Financial Statements S Balance Sheet 9 Statement of Revenues, Expenditures, and Changes in Fund Balances to Budget and Actual 11 MY OF HOME OF PELICAN ISLAND March 22, 2018 Sebastian Community Redevelopment Agency Board Chairman and Members City of Sebastian, Florida Dear Board Members: We are pleased to submit the Annual Activity Report of the Sebastian Community Redevelopment Agency for the fiscal year ended September 30, 2017. Section 163.356(8)(C), Florida Statutes, requires each CRA to file with its governing body, on or before March 31 each year, a report of its activities for the proceeding fiscal year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of such fiscal year. In addition to meeting this legal requirement, the report provides additional information concerning the benefits afforded by the agency to other jurisdictions and citizenry in general. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. We believe the data, as presented, is accurate in all material respects, and that all disclosures necessary to enable the reader to gain an understanding of the Sebastian CRA's operation and financial activity have been included. Respectfully submitted, Liza Leger Frazier, AICD Community Development Director/CRA Manager City of Sebastian Kenneth W. Killgore Administrative Services Director City of Sebastian • :! LIST OF PRINCIPAL OFFICIALS September 34, 2417 Chairman Board Member Board Member Board Member Board Member Bob McPartlan Linda Kinchen Jim Hill Ed Dodd Andrea Coy History of the Sebastian Communitv Redevelopment A2enev (Sebastian CRA) The Sebastian Community Redevelopment Agency (Sebastian CRA) was created in 1995 by the City of Sebastian City Council under Chapter 163, Part III of the Florida Statutes. The original Sebastian CRA includes an area generally bounded on the west by the FEC Railroad right-of-way, north by the City limits, on the east by the Indian River Lagoon, and south by the City limits east of the FEC Railroad right-of-way. The Sebastian CRA was established to ensure that the downtown and surrounding vicinity would develop with a coherent community vision, and to encourage reinvestment throughout the CRA. The area later was expanded in 2003 to include the Sebastian Boulevard "Triangle" area west of the FEC Railroad right-of-way, which includes industrial and commercial land use. The total Sebastian CRA area is 299 acres excluding road rights-of-way (Exhibit 1). The governing body of the Sebastian CRA is the Sebastian City Council. The CRA Board is comprised of five (5) members. Under the State Statutes and the City ordinances, the Sebastian CRA has substantial powers and authority within the Sebastian CRA area. These include the power to make and execute contracts, to acquire and dispose property, to approve development plans, to implement a program of voluntary or compulsory rehabilitation of buildings, to mortgage its property, to borrow and invest money, and to apply for and accept grants and contributions. The major funding source for the Sebastian CRA is tax increment revenue. Tax increment revenue is the increase in ad valorem tax attributed to the increase in the assessed property value over a set `base year" for the redevelopment area. The government jurisdictions remitting tax increment revenue to the Sebastian CRA are the City of Sebastian and the Indian River County Board of County Commissioners. After the establishment of the Sebastian CRA in 1995, the City established the Redevelopment Trust Fund and the base year for tax increment revenues as well as adopted the 1995 Community Redevelopment Plan. The boundary was later expanded to include the adjacent Sebastian Boulevard "Triangle" area in 2003, establishing a new base year for this area of the CRA. The redevelopment plan was also modified on behalf of the Sebastian CRA in 2003, unifying the 1995 Sebastian CRA boundary and the expansion area as one cohesive CRA. The Master Plan was again updated in 2010, presenting conceptual district recommendations, potential policy amendments, and capital improvements intended to meet the City's redevelopment goals. 1 89 of 189 EXHIBIT I - SEBASTIAN CRA BOUNDARY MAP J. SCb..:;t!-an (-'P.\ Conceptual Di-iincis V 1. ]t` -it Schaslian CRA 2 90 of 189 Accomplishments of the Sebastian Communitv Redevelopment Aeenev (Sebastian CRA) Since the establishment of the original Sebastian CRA in 1995, numerous projects have been accomplished. Accomplishments are as follows: ❑ Provided annual funding support to festivities such as Riverfront Christmas decorations, Clam Bake festival, fine art festival, concert in the park, and Pelican Island celebration since the year 2000. ❑ Completed Riverview Park Phase I, boat dock, landscaping, and shoreline stabilization project in 2001. ❑ Developed community redevelopment master plan in 2003. ❑ Completed Jackson Street extension, sidewalk, and street light project in 2004. ❑ Completed improvements to the Yacht Club. ❑ Completed construction on the Indian River Drive/Main Street project. ❑ Established a Fagade, Sign and Landscaping matching grant program. ❑ Received contribution from the Clambake Foundation and provided the balance of funding for the Flag Pole project, which enhanced the view at the western entrance to the CRA area. ❑ Designed billboard advertisements and rented billboards on Highway 1-95. Li Contributed $20,000 to a film production about the story of Pelican Island. ❑ Constructed information boards at Riverview Park and at the Park at Indian River Drive/Main Street. ❑ Updated the CRA Master Plan in 2010. ❑ Completed construction on the Yacht Club finger pier project. ❑ Provided matching funds to the Stan Mayfield Grant that was used for the purchase of the Working Waterfront Properties. ❑ Executed lease with Crab E. Bills for a commercial retail fish market and a retail commercial limited food service "Eatery". ❑ Established a Sewer Connection Grant Program to encourage reduction of seepage into the Indian River Lagoon. ❑ Completed roadway improvements to the Presidential Streets. FY 2017 Sebastian CRA Activities The Sebastian CRA is treated as a special revenue fund of the City. An independent financial audit by an external CPA firm has been accomplished annually to be in compliance with Section 163.387(8), Florida Statutes. An annual budget is also adopted by the Sebastian CRA Board to be in compliance with Section 189.418(3). Major activities and accomplishments of the Sebastian CRA in 2017 included: ❑ Provided financial support for many events within the Riverfront District including: clam bake, concert in the park events and fine art festival. ❑ Provided funding for Holiday decorations. ❑ Continued funding grant programs that support public private projects including: Fagade, Sign and Landscape grants, and the Septic to Sewer assistance program (See TABLE 1). ❑ Made necessary repairs to the Working Waterfront properties including: historic building repairs and dock replacement. ❑ Completed repairs to the CavCorp boat parking property. 3 91 of 189 OWNER Teddy's Claaning & Janitorial Services O'quist Services, LLC Thomas Haynes Sebastian Center, ltd Best Western Hotel Tax Increment Revenue TABLE 1 - CRA Grant Activity _October 1, 2016 — September 30, 2017 PROJECT PROJECT TYPE TOTAL ADDRESS PROJECT COST 1413 N. Central Ave. 712 l l?w'i3nC! 5' 1527 U.S. Highway 1 F -; S5 lJ 5 N; Jh-,t, a, I Septic to Sewer Sent _ to 3 --- �."eF Septic to Sewer za ra ,'e 3i_r� 5C1� AWARD AMOUNT $33,910 $15,000 322.335.62 $15,000 $102,792 $1S,00o Sb -1.-17:1.73 S15,C&:1 3 The tax increment revenue is determined annually as 95 percent of the difference between: (a) the amount of ad valorem taxes levied each year by each taxing authority contributing to the Sebastian CRA on taxable real property contained within the redevelopment area, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General Obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District and (b) the amount of ad valorem taxes which would have been generated by the rate at which the tax is levied each year by the taxing authority, exclusive of the following entities: Florida Inland Navigation District Indian River County Mosquito Control District Indian River County Hospital Maintenance District School District, and associated General Obligation Debt funded by ad valorem taxes Indian River County Land Acquisition Bond General obligation Debt Emergency Services Dependent Taxing District St. Johns River Water Management District Sebastian Inlet Taxing District upon the total of the assessed value of the taxable real property in the community redevelopment area as shown on the assessment roll used by each taxing authority prior to March 22, 1995, the effective date of the ordinance creating the Redevelopment Trust Fund. Indian River County Board of County Commissioners and the City of Sebastian currently make tax increment payments into the Sebastian CRA Trust Fund. 4 92 of 189 The initial implementation of the tax increment financing was for the Fiscal Year 2001 and its base year value was set at the taxable value for 1994. When the CRA area was expanded, the base year value for that expanded area was set at the taxable value for 2003. As a result, by Fiscal Year 2005, the total incremental value was $36,862,574. As compared to the Fiscal Year 2017 total incremental value of $50,313,349, the incremental value of the redevelopment area has increased by 36.5% since Fiscal Year 2005. The taxable values in redevelopment area from 2001 through 2017 are presented in Exhibit II below. Exhibit II Tax Increment Values 100.0 12 90.0 R 80.0 — o° 70.0 c 60.0 FA 50.0 — c 40 A 30.0 — — — - 20.0- 10.0 — — — — — — — — - Tr 0.0 T -T- -T-1 '4'301'407 -vol 7-00, 2005 2006 Zdp 120p8 ZOp9 2 010 2011 201 2013 2014 2015 2016 201 Fiscal Year Source: City of Sebastian Administrative Services Department 93 of 189 Sebastian Community Redevelopement Agency Taxable Value in Redevelopment Area % Change in Taxable Base Year Incremental Incremental Fiscal Year Value Value Value Value 2001 $45,834,920 $34,959,870 $10,875,050 2002 58,263,740 34,959,870 23,303,870 114.29% 2003 58,844,190 34,959,870 23,884,320 2.49% 2004 66,307,980 34,959,870 31,348,110 31.25% 2005 78,424,554 41,561,980 36,862,574 17.59% 2006 89,418,550 41,561,980 47,856,570 29.82% 2007 134,755,060 41,561,980 93,193,080 94.73% 2008 129,700,130 41,561,980 88,138,150 -5.42% 2009 127,735,740 41,561,980 86,173,760 -2.23% 2010 11I,909,020 41,561,980 70,347,040 -18.37% 2011 90,533,980 41,561,980 48,972,000 -30.39% 2012 83,558,060 41,561,980 41,996,080 -14.24% 2013 82,753,350 41,561,980 41,191,370 -1.92% 2014 82,598,780 41,561,980 41,036,800 -0.38% 2015 84,939,810 41,561,980 43,377,830 5.70% 2016 91,018,390 41,561,980 49,456,410 14.01% 2017 91,875,329 41,561,980 50,313,349 1.73% Tax Increment Values 100.0 12 90.0 R 80.0 — o° 70.0 c 60.0 FA 50.0 — c 40 A 30.0 — — — - 20.0- 10.0 — — — — — — — — - Tr 0.0 T -T- -T-1 '4'301'407 -vol 7-00, 2005 2006 Zdp 120p8 ZOp9 2 010 2011 201 2013 2014 2015 2016 201 Fiscal Year Source: City of Sebastian Administrative Services Department 93 of 189 The City's millage has decreased from $5.00 per $1,000 in FY 2001 to $3.8000 per $1,000 in FY 2017. The millage for Indian River County has been decreased from $4.1014 per $1,000 in FY 2001 to $3.3602 per $1,000 in FY 2017. Rates from 2001 through 2017 are presented in Exhibit III below. Exhibit III Sebastian Community Redevelopement Agency Operating Millage Rates in Redevelopment Area Total Tax Increment Millage Rate 10.0000 9.0000 8.0000 - - --- o, 7.0000 - - - - - 2 6.0000 - - - - - - - -50000�-4.0000 - - - - - ii 3.0000 - - - - TU111111110K 0 2.0000---- �- 1.0000 - - - --r . . 2bp1�tip22�p3,�QpD.�gp52flp6,�Op'I2�p 20p9���0,�a�1Za�2,�p� 2p�b���6,��� 20�"i Fiscal Year Source: City of Sebastian Administrative Services Department 6 94 of 189 Indian City River of Total Fiscal Year Coun Sebastian Millage 2001 4.1014 5.0000 9.1014 2002 4.0501 4.5904 8.6405 2003 3.8729 4.5904 8.4633 2004 3.8377 4.5904 8.4281 2005 3.6233 4.5904 8.2137 2006 3.5204 3.9325 7.4529 2007 3.1914 3.0519 6.2433 2008 3.0202 29917 6.0119 2009 3.0202 3.3456 6.3658 2010 3.0892 3.3456 6.4348 2011 3.0892 3.3041 6.3933 2012 3.0892 3.3041 6.3933 2013 3.0892 3.7166 6.8058 2014 3.2620 3.7166 6.9786 2015 3.3375 3.8556 7.1931 2016 3.3602 3.8556 7.2158 2017 3.3602 3.8000 7.1602 Total Tax Increment Millage Rate 10.0000 9.0000 8.0000 - - --- o, 7.0000 - - - - - 2 6.0000 - - - - - - - -50000�-4.0000 - - - - - ii 3.0000 - - - - TU111111110K 0 2.0000---- �- 1.0000 - - - --r . . 2bp1�tip22�p3,�QpD.�gp52flp6,�Op'I2�p 20p9���0,�a�1Za�2,�p� 2p�b���6,��� 20�"i Fiscal Year Source: City of Sebastian Administrative Services Department 6 94 of 189 Based on the miliage rates and significant increases in taxable values, the tax increment revenue has risen dramatically. The total tax increment revenue in 2001 was $94,029. The tax increment revenue in 2017 has increased to $342,241. However, this is a 38.1 % decrease from the highest year of 2007 when the total was $552,741. The tax increment revenues for the redevelopment area for the Fiscal Year 2001 through 2017 are presented in Exhibit IV below. Exhibit IV Sebastian Community Redevelopement Agency Tax Increment Revenue Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 - '- $�oo,00� I� h� _ . �Qp12�p2��p3,�flpb,��p� 2ap6,��p1 �4�6 �Op9 �a�a 2Q�12��2Za�� 2��4 2��5 �4�6 2�1� Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 7 95 of 189 Indian City River of Fiscal Year Coun Sebastian Total 2001 $42,373 $51,656 $94,029 2002 89,664 101,625 191,289 2003 87,877 104,157 192,034 2004 114,289 136,705 250,994 2005 126,886 160,753 287,639 2006 160,051 178,786 338,837 2007 282,546 270,195 552,741 2008 252,885 250,499 503,384 2009 251,236 273,888 525,I24 2010 206,450 223,585 430,035 2011 143,720 153,900 297,620 2012 123,248 131,821 255,069 2013 120,886 145,437 266,323 2014 127,169 144,891 272,060 2015 137,535 158,885 296,420 2016 157,874 181,150 339,024 2017 160,610 181,631 342,241 Tax Increment Revenue $600,000 $500,000 $400,000 $300,000 $200,000 - '- $�oo,00� I� h� _ . �Qp12�p2��p3,�flpb,��p� 2ap6,��p1 �4�6 �Op9 �a�a 2Q�12��2Za�� 2��4 2��5 �4�6 2�1� Fiscal Year (1) The revenues include the triangle area, which was added in the redevelopment area in 2003. Source: City of Sebastian Administrative Services Department 7 95 of 189 Financial Statements The Sebastian CRA is considered a blended component unit of the City and therefore it is included in the City's annual financial audit. In order to meet the requirement of Section 163.387(8), Florida Statutes, which requires the CRA to provide for annual audit of the redevelopment trust fund, the Sebastian CRA has been treated as a major fund of the City. The financial statements included herein are unaudited statements of the Sebastian CRA. Audited statements are included in the City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ending September 30, 2017 and may be obtained in the City Clerk's office I225 Main Street, Sebastian, Florida or online at ht[ l: w1 k� 4 citNo sc',basziaii. 1r 96 of 189 Sebastian Community Redevelopment Agency, Florida Balance Sheet September 30, 2017 Unaudited ASSETS Cash and cash equivalents $ 442,764 Investments 98,288 Total assets $ 541,052 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 304 Total liabilities 304 Fund balances: Restricted 540,748 Total fund balance 540,748 Total liabilities and fund balance $ 541,052 97 of 189 Sebastian Community Redevelopment Agency, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended September 30, 2017 Unaudited REVENUES: (229,496) Taxes: (229,496) Property $ 342,241 Investment earnings 5,758 Other revenue 36,000 Total revenues 383,999 EXPENDITURES: Current: General government 2,067 Economic environment 69,741 Total expenditures 71,808 Excess (deficiency) of revenues over (under) expenditures 312,191 OTHER FINANCING USES: Transfers out (229,496) Total other financing uses (229,496) Net changes in fund balance 82,695 Fund balance - beginning 458,053 Fund balance - ending $ 540,748 10 I :• Sebastian Community Redevelopment Agency, Florida Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended September 30, 2017 Unaudited REVENUES: Taxes: Property Investment earnings Other revenue Total revenues EXPENDITURES: Current: General government Economic environment Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES Transfers in Transfers out Total other financing (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Budget Amounts Original Final $ 343,707 $ 343,707 1,332 1,322 36,000 36,000 381,039 381,029 Actual Variance with Amounts on Final Budget - a Budgetary Positive Basis (Negative) $ 342,241 5,758 36,000 383,999 (1,466) 4,436 2,970 2,500 2,500 2,067 (433) 369,087 221,313 69,741 (151,572) 371,587 223,813 71,808 (152,005) 9,442 157,216 312,191 154,975 - 270,955 - (270,955) - (418,729) (229,496) 189,233 - (147,774) (229,496) (81,722) 9,442 9,442 82,695 73,253 458,053 458,053 $ 467,495 $ 467,495 I1 458,053 - $ 540,748 $ 73,253 99 of 189 ��(3ASTIAN HOME OF PELICAN ISLAND Council Meeting Date: Agenda Item Title: Recommendation: OFFICE OF THE CITY ATTORNEY 28 March 2018 Letter to Federal Legislators Regarding Sober Homes. Authorize Mayor to Sign & Deliver Letters as written. Background: As we are all aware, the opioid crisis in this country is expanding on a daily basis and, this coupled with other forms of alcohol and substance abuse, has led to a proliferation of "recovery residences" in which groups of unrelated adults reside in commune, ostensibly under the theory that they are seeking treatment and turning their lives around. A problem which has arisen is that the federal government has intervened, asserting provisions of the Fair Housing Act, in conjunction with the Americans With Disabilities Act and the Civil Rights Act. This has impinged upon local governments' ability to regulate these recovery residences without the potential of suffering federal liability. Even the supposed safe harbor which federal regulations seem to provide, leave local government unsure of how to proceed. For example, regulations state that local government can have provisions in place to avoid "grouping" of recovery residences, but it remains unclear as to how that is defined or how it will be enforced. Local governments from throughout the Treasure Coast have decided to take this matter to our federal legislators. A template letter was provided, which has been adjusted and cleaned -up so as to be a meaningful correspondence from our City to them as our federal legislators. It is requested that authorization to execute and deliver these letters be granted, so as to let our federal officials know that their local government counterparts need some guidance on how to address this important issue which has such potential to impact our local community. Attachments: (1) Letter to Senator Marco Rubio (2) Letter to Senator Bill Nelson (3) Letter to Congressman Bill Posey (4) Letter to Congressman Brian Mast Ja s D. Stokes City Attorney 100 of 189 cmc* SEBASTIAN _ " HOME OF PELICAN ISLAND 1725 MAIN STREET • SEBASTIAN, FLORIDA 32568 TELFPHaNE: (772) 589-5330 • FAX: (772) 589-5570 www.cityofsebastian.org 28 March 2018 Honorable Marco Rubio United States Senate 284 Russell Senate Office Building Washington DC, 20510 Re: Addiction Recovery Residences Dear Senator Rubio: We proudly represent the nearly 25,000 residents of the City of Sebastian, as well as the thousands of visitors and vacationers who enjoy our lovely seaside community located on Florida's Treasure Coast. As you know, the Treasure Coast has a cumulative population of nearly 650,000 people living in Indian River, Martin, Okeechobee, and St. Lucie Counties. As the elected leaders of the City of Sebastian, we join officials from our neighboring communities in addressing the opioid crisis and the issue of recovery residences. The Centers for Disease Control and Prevention (CDC) has reported that more than 11 million people abused prescription opioids in 2016, with nearly 43,000 deaths attributed to such abuse. This crisis not only has tragic human costs, but imposes a staggering financial burden to local taxpayers. It is therefore appreciated that President Trump has directed the Department of Health and Human Services to declare the opioid crisis a public health emergency. It is well established that recovery residences provide a necessary, often -tunes life- saving, service to many who are addicted to opioids; and we wish to support those individuals seeking to recover from their addiction and integrate back into the social fabric of our communities. However, with the proliferation of recovery residences, local governments in the Treasure Coast have been faced with new and uncharted challenges. Specifically, implementing and enforcing otherwise neutral and equitable zoning regulations, in light of the "special status" given to recovery residences through the Fair Housing Act. This situation is exacerbated by the fact that not all recovery residences are run by altruistic individuals, or occupied by those genuinely seeking recovery. In 2016, the Department of Housing and Urban Development and the Department of Justice produced a Joint Statement addressing State and Local Land Use Laws and Practices, and the Application of the Fair Housing Act. This Joint Statement, however, is inadequate in a number of areas of concern to local government. For example, while the Joint Statement acknowledges that the Fair Housing Act does not prevent local government from taking into account concerns regarding over -concentration of recovery residences, it does not provide sufficient guidance as to the parameters of allowable regulation. 101 of 189 Honorable Marco Rubio Re: Addiction Recovery Residences 28 March 2018 Page 2 of 2 The Joint Statement goes on to note that "lb]ecause an across-the-board spacing requirement may discriminate against persons with disabilities in some residential areas, any standards that state or local governments adopt should evaluate the location of group homes for persons with disabilities on a case-by-case basis." Without some safe harbor, this places local governments in an untenable situation; requiring a subjective determination to be made in an area where an unintended disparate impact can result in liability for alleged discrimination. We would welcome the opportunity to discuss this matter with you further so that we can relay our concerns, and those of our communities, to HUD and the DOJ. We would genuinely appreciate further clarification as to any restrictions being imposed upon local government, and we would like the opportunity to suggest some options which can accomplish the objectives of HUD and the DOJ, while not exposing local government to undeserved liability. We thank you for your attention to this very important matter. Respectfully, MAYOR JIM HILL on behalf of the City Council City of Sebastian, Florida ATTEST: JEANETI`E WILLIANS, MMC City Clerk cc: (delivered electronically) County Commission, Indian River County City Council, City of Vero Beach City Council, City of FeIIsmere Town Council, Town of Indian River Shores Town Council, Town of Orchid County Commission, St. Lucie County City Council, City of Port St. Lucie City Commission, City of Fort Pierce Mayor & Aldermen, St. Lucie Village County Commission, Martin County City Commission, City of Stuart Town Council, Town of Ocean Breeze Town Commission, Town of Sewall's Point Town Commission, Town of Jupiter Island ViIIage Council, Village of Indiantown County Commission, Okeechobee County City Council, City of Okeechobee 102 of 189 Lm OF SETV HOME OF PELICAN ISLAND 1125 MAIN STREET • SEBASTIAN, FLORIDA 32568 TELEPHONE: (772) 589-5330 • FAx: (772) 589-5570 www.cityofsebastian.org 28 March 2018 Honorable Bill Posey United States House of Representatives 2150 Rayburn House Office Building Washington, DC 20515 Re: Addiction Recovery Residences Dear Congressman Posey: We proudly represent the nearly 25,000 residents of the City of Sebastian, as well as the thousands of visitors and vacationers who enjoy our lovely seaside community located on Florida's Treasure Coast. As you know, the Treasure Coast has a cumulative population of nearly 650,000 people living in Indian River, Martin, Okeechobee, and St. Lucie Counties. As the elected leaders of the City of Sebastian, we join officials from our neighboring communities in addressing the opioid crisis and the issue of recovery residences. The Centers for Disease Control and Prevention (CDC) has reported that more than 11 million people abused prescription opioids in 2016, with nearly 43,000 deaths attributed to such abuse. This crisis not only has tragic human costs, but imposes a staggering financial burden to local taxpayers. It is therefore appreciated that President Trump has directed the Department of Health and Human Services to declare the opioid crisis a public health emergency. It is well established that recovery residences provide a necessary, often-times life-saving, service to many who are addicted to opioids; and we wish to support those individuals seeking to recover from their addiction and integrate back into the social fabric of our communities. However, with the proliferation of recovery residences, local governments in the Treasure Coast have been faced with new and uncharted challenges. Specifically, implementing and enforcing otherwise neutral and equitable zoning regulations, in light of the "special status' given to recovery residences through the Fair Housing Act. This situation is exacerbated by the fact that not all recovery residences are run by altruistic individuals, or occupied by those genuinely seeking recovery. In 2016, the Department of Housing and Urban Development and the Department of Justice produced a Joint Statement addressing State and Local Land Use Laws and Practices, and the Application of the Fair Housing Act. This Joint Statement, however, is inadequate in a number of areas of concern to local government. For example, while the joint Statement acknowledges that the Fair Housing Act does not prevent local government from taking into account concerns regarding over -concentration of recovery residences, it does not provide sufficient guidance as to the parameters of allowable regulation. 103 of 189 Honorable Bill Posey Re: Addiction Recovery Residences 28 March 2018 Page 2 of 2 The Joint Statement goes on to note that "[b]ecause an across-the-board spacing requirement may discriminate against persons with disabilities in some residential areas, any standards that state or local governments adopt should evaluate the location of group homes for persons with disabilities on a case-by-case basis." Without some safe harbor, this places Iocal governments in an untenable situation, requiring a subjective determination to be made in an area where an unintended disparate impact can result in liability for alleged discrimination. We would welcome the opportunity to discuss this matter with you further so that we can relay our concerns, and those of our communities, to HUD and the DOJ. We would genuinely appreciate further clarification as to any restrictions being imposed upon local government, and we would like the opportunity to suggest some options which can accomplish the objectives of HUD and the DOJ, while not exposing local government to undeserved liability. We thank you for your attention to this very important matter. Respectfully, MAYOR JIM HILL on behalf of the City Council City of Sebastian, Florida ATTEST: JEANETTE WILLIANS, MMC City Clerk cc: (delivered electronically) County Commission, Indian River County City Council, City of Vero Beach City Council, City of Fel smere Town Council, Town of Indian River Shores Town Council, Town of Orchid County Commission, St. Lucie County City Council, City of Port St. Lucie City Commission, City of Fort Pierce Mayor & Aldermen, St. Lucie Village County Commission, Martin County City Commission, City of Stuart Town Council, Town of Ocean Breeze Town Commission, Town of Sewall's Point Town Commission, Town of Jupiter Island Village Council, Village of Indiantown County Commission, Okeechobee County City Council, City of Okeechobee 104 of 189 L nOF SE�" HOME OF PELICAN ISLAND 1125 MAW STREET • SEBASTIAN. FLORIDA 32568 TELEPHONE: (772) 589-5330 • FAX: (772) 589.5570 www.cityofsebastian.org 28 March 2018 Honorable Brian Mast United States House of Representatives 2182 Rayburn House Office Building Washington, DC 20515 Re: Addiction Recovery Residences Dear Congressman Mast: We proudly represent the nearly 25,000 residents of the City of Sebastian, as well as the thousands of visitors and vacationers who enjoy our lovely seaside community located on Florida's Treasure Coast. As you know, the Treasure Coast has a cumulative population of nearly 650,000 people living in Indian River, Martin, Okeechobee, and St. Lucie Counties. As the elected leaders of the City of Sebastian, we john officials from our neighboring communities in addressing the opioid crisis and the issue of recovery residences. The Centers for Disease Control and Prevention (CDC) has reported that more than 11 million people abused prescription opioids in 2016, with nearly 43,000 deaths attributed to such abuse. This crisis not only has tragic human costs, but imposes a staggering financial burden to local taxpayers. It is therefore appreciated that President Trump has directed the Department of Health and Human Services to declare the opioid crisis a public health emergency. It is well established that recovery residences provide a necessary, often-times life-saving, service to many who are addicted to opioids; and we wish to support those individuals seeking to recover from their addiction and integrate back into the social fabric of our communities. However, with the proliferation of recovery residences, local governments in the Treasure Coast have been faced with new and uncharted challenges. Specifically, implementing and enforcing otherwise neutral and equitable zoning regulations, in light of the "special status" given to recovery residences through the Fair Housing Act. This situation is exacerbated by the fact that not all recovery residences are run by altruistic individuals, or occupied by those genuinely seeking recovery. In 2016, the Department of Housing and Urban Development and the Department of Justice produced a Joint Statement addressing State and Local Land Use Laws and Practices, and the Application of the Fair Housing Act. This Joint Statement, however, is inadequate in a number of areas of concern to local government. For example, while the Joint Statement acknowledges that the Fair Housing Act does not prevent local government from taking into account concerns regarding over -concentration of recovery residences, it does not provide sufficient guidance as to the parameters of allowable regulation. 105 of 189 Honorable Brian Mast Re: Addiction Recovery Residences 28 March 2018 Page 2 of 2 The Joint Statement goes on to note that "[b]ecause an across-the-board spacing requirement may discriminate against persons with disabilities in some residential areas, any standards that state or local governments adopt should evaluate the location of group homes for persons with disabilities on a case-by-case basis." Without some safe harbor, this places local governments in an untenable situation; requiring a subjective determination to be made in an area where an unintended disparate impact can result in liability for alleged discrimination. We would welcome the opportunity to discuss this matter with you further so that we can relay our concerns, and those of our communities, to HUD and the DOJ. We would genuinely appreciate further clarification as to any restrictions being imposed upon local government, and we would like the opportunity to suggest some options which can accomplish the objectives of HUD and the DOJ, while not exposing local government to undeserved liability. We thank you for your attention to this very important matter. Respectfully, MAYOR JIM HILL on behalf of the City Council City of Sebastian, Florida /: U11 ON" JEANETTE WILLIANS, MMC City Clerk cc: (delivered electronically) County Commission, Indian River County City Council, City of Vero Beach City Council, City of Felismere Town Council, Town of Indian River Shores Town Council, Town of Orchid County Commission, St. Lucie County City Council, City of Port St. Lucie City Commission, City of Fort Pierce Mayor & Aldermen, St. Lucie Village County Commission, Martin County City Commission, City of Stuart Town Council, Town of Ocean Breeze Town Commission, Town of Sewall's Point Town Commission, Town of Jupiter Island Village Council, Village of Indiantown County Commission, Okeechobee County City Council, City of Okeechobee 106 of 189 OR Llf SEBASTIAN ;icg�w� HOME OF PELICAN ISLAND 1125 MAIN STREET . SEBASTIAN. FLORIDA 32568 TELEPHONE: (772) 589-5330 • FAX: (772) 589-5570 www.cityofsebastian.org 28 March 2018 Honorable Bill Nelson United States Senate 716 Hart Senate Office Building Washington, DC 20510 Re: Addiction Recovery Residences Dear Senator Nelson: We proudly represent the nearly 25,000 residents of the City of Sebastian, as well as the thousands of visitors and vacationers who enjoy our lovely seaside community located on Florida's Treasure Coast. As you know, the Treasure Coast has a cumulative population of nearly 650,000 people living in Indian River, Martin, Okeechobee, and St. Lucie Counties. As the elected leaders of the City of Sebastian, we join officials from our neighboring communities in addressing the opioid crisis and the issue of recovery residences. The Centers for Disease Control and Prevention (CDC) has reported that more than 11 million people abused prescription opioids in 2016, with nearly 43,000 deaths attributed to such abuse. This crisis not only has tragic human costs, but imposes a staggering financial burden to local taxpayers. It is therefore appreciated that President Trump has directed the Department of Health and Human Services to declare the opioid crisis a public health emergency. It is well established that recovery residences provide a necessary, often-times life-saving, service to many who are addicted to opioids; and we wish to support those individuals seeking to recover from their addiction and integrate back into the social fabric of our communities. However, with the proliferation of recovery residences, local governments in the Treasure Coast have been faced with new and uncharted challenges. Specifically, implementing and enforcing otherwise neutral and equitable zoning regulations, in light of the "special status" given to recovery residences through the Fair Housing Act. This situation is exacerbated by the fact that not all recovery residences are run by altruistic individuals, or occupied by those genuinely seeking recovery. In 2016, the Department of Housing and Urban Development and the Department of Justice produced a Joint Statement addressing State and Local Land Use Laws and Practices, and the Application of the Fair Housing Act. This Joint Statement, however, is inadequate in a number of areas of concern to local government. For example, while the Joint Statement acknowledges that the Fair Housing Act does not prevent local government from taking into account concerns regarding over -concentration of recovery residences, it does not provide sufficient guidance as to the parameters of allowable regulation. 107 of 189 Honorable Bill Nelson Re: Addiction Recovery Residences 28 March 2018 Page 2 of 2 The Joint Statement goes on to note that "[bjecause an across-the-board spacing requirement may discriminate against persons with disabilities in some residential areas, any standards that state or local governments adopt should evaluate the location of group homes for persons with disabilities on a case-by-case basis." Without some safe harbor, this places local governments in an untenable situation; requiring a subjective determination to be made in an area where an unintended disparate impact can result in liability for alleged discrimination. We would welcome the opportunity to discuss this matter with you further so that we can relay our concerns, and those of our communities, to HUD and the DOJ. We would genuinely appreciate further clarification as to any restrictions being imposed upon local government, and we would like the opportunity to suggest some options which can accomplish the objectives of HUD and the DOJ, while not exposing local government to undeserved liability. We thank you for your attention to this very important matter. Respectfully, MAYOR JIM HILL on behalf of the City Council City of Sebastian, Florida ATTEST: JEANETTE WILLIANS, MMC City Clerk cc: (delivered electrottically) County Commission, Indian [fiver County City Council, City of Vero Beach City Council, City of Fellsmere Town Council, Town of Indian River Shores Town Council, Town of Orchid County Commission, St. Lucie County City Council, City of Port St. Lucie City Commission, City of Fort Pierce Mayor & Aldermen, St. Lucie Village County Commission, Martin County City Commission, City of Stuart Town Council, Town of Ocean Breeze Town Commission, Town of Sewall's Point Town Commission, Town of Jupiter Island Village Council, Village of Indiantown County Commission, Okeechobee County City Council, City of Okeechobee IFISIMF: LM Of SEBASTIAN NOME OF PELICAN ISLAND COMMUNITY REDEVELOPMENT AGENCY AGENDA TRANSMITTAL Council Meeting Date: 28 March 2018 Aizenda Item Title: Resolution R -18 -07 ---Florida Inland Navigation District (FIND) Waterways Assistance Program Grant Request Recommendation: Rescind R-18-05; Approve R-18-07 Background: At the 14 February 2018 Council meeting, R-18-05 was approved which supported staff's request to apply for a 2018 FIND grant for the Working Waterfront. Subsequent to R -18-05's approval, additional information, and engineering estimates, was received changing the amount of funding required for the project, therefore, requiring a change provided for in R-18-05. Those changes require a `new' Resolution. The next phase of improvements at the Sebastian Working Waterfront consists of Shoreline Improvements and parking lot improvements. The primary concern for shoreline improvements is the safety and security of the building housing the fish market, eatery, and exhibit area. R-18-07 will enable Staff to apply for a FIND grant to assist in funding the shoreline stabilization project and the completion of parking lot improvements. If Agenda Item Requires Expenditure of Funds: Grant Project Amount: $400,000 City/CRA Share: $200,000 (FY18/19 Budget) Fund to Be Utilized: CRA Administrative Services Department/CFO Review: I Attachments: 1. R-18-05 2. R-18-07 City Manager Authorization: Date: 21 March 2018 109 of 189 CITY OF SEBASTIAN RESOLUTION NO. R-18-05 ATTACHMENT E-7 RESOLUTION FOR ASSISTANCE 2018 UNDER THE FLORIDA INLAND NAVIGATION DISTRICT WATERWAYS ASSISTANCE PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, INDIAN RIVER COUNTY, SUPPORTING THE CITY'S FIND GRANT APPLICATION SEEKING FUNDS TO MAKE IMPROVEMENTS TO THE WORKING WATERFRONT SHORELINE AND PARKING LOCATED AT FISHERMAN'S LANDING SEBASTIAN, PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sebastian is interested in carrying out the following described project for the enjoyment of the citizenry of the City of Sebastian, Indian River County and the State of Florida: Project Title: Working Waterfront Shoreline & Parking Improvement Total Estimated Cost: $ 270,000.00 Brief Description of Project: The site is located at 1532 and 1540 Indian River Drive in the City of Sebastian and consists of a historic Working Waterfront. The project will construct shoreline protection to protect the historic building along the Working Waterfront shoreline and also complete the Phase 2A portion of the project previously presented but not funded for stabilizing the public parking lot. The proposed shoreline protection project will extend over 200 linear feet along the shoreline of the Indian River Lagoon. Since the historic seawall no longer provides protection, the historic building is exposed to reoccurring impacts from storm water waves and water damage. The shoreline protection and stabilized public parking lot will provide the protective benefit to the Working Waterfront and the Indian River Lagoon. The project site is within the City's boundaries and within the City's submerged land lease. No land acquisition is required. In addition, the City has obtained the required permits from ACOE and FDEP for the construction of a linear seawall and the paving of the public parking lot. This project is considered the third phase of the Working Waterfront Improvements which has received past funding from FIND for Phase 1, 2 and 2A. AND, Florida Inland Navigation District financial assistance is required for the program mentioned above, NOW THEREFORE, be it resolved by the City of Sebastian that the project described above be authorized, AND, be it further resolved that said City of Sebastian, make application to the Florida Inland Navigation District in the amount of $135,000, which is 50% of the actual cost of the project on behalf of said City of Sebastian, 110 of 189 AND, be it further resolved by the City of Sebastian that it certifies to the following: 1. That it will accept the terms and conditions set forth in FIND Rule 6613-2 F.A.C. and which will be a part of the Project Agreement for any assistance awarded under the attached proposal. 2. That it is in complete accord with the attached proposal and that it will carry out the Program in the manner described in the proposal and any plans and specifications attached thereto unless prior approval for any change has been received from the District. 3. That it has the ability and intention to finance its share of the cost of the project and that the project will be operated and maintained at the expense of said City of Sebastian for public use. 4. That it will not discriminate against any person on the basis of race, color or national origin in the use of any property or facility acquired or developed pursuant to this proposal, and shall comply with the terms and intent of the Title VI of the Civil Rights Act of 1964, P. L. 88-352 (1964) and design and construct all facilities to comply fully with statutes relating to accessibility by persons with disabilities as well as other federal, state and local laws, rules and requirements. 5. That it will maintain adequate financial records on the proposed project to substantiate claims for reimbursement. 6. That it will make available to FIND if requested, a post -audit of expenses incurred on the project prior to, or in conjunction with, request for the final 10% of the funding agreed to by FIND. This is to certify that the foregoing is a true and correct copy of a resolution duly and legally adopted by the Sebastian City Council at a legal meeting held on this 14th day of February, 2018. CITY OR SEBASTIAN av�r/Jiimm Hill �a ATTEST: U1 Lamxj, q4��4t_te Williams, City Clerk Approved as to form and legality for reliance by the City of Sebastian only: Jami s D. Stokes, City Attorney 111 of 189 CITY OF SEBASTIAN RESOLUTION NO. R-18-07 ATTACHMENT E-7 RESOLUTION FOR ASSISTANCE 2018 UNDER THE FLORIDA INLAND NAVIGATION DISTRICT WATERWAYS ASSISTANCE PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, INDIAN RIVER COUNTY, SUPPORTING THE CITY'S FIND GRANT APPLICATION SEEKING FUNDS TO MAKE IMPROVEMENTS TO THE WORKING WATERFRONT SHORELINE AND PARKING LOCATED AT FISHERMAN'S LANDING SEBASTIAN, PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sebastian is interested in carrying out the following described project for the enjoyment of the citizenry of the City of Sebastian, Indian River County and the State of Florida: Project Title: Working Waterfront Shoreline & Parking Improvement Total Estimated Cost: $ 400,000.00 Brief Description of Project: The site is located at 1532 and 1540 Indian River Drive in the City of Sebastian and consists of a historic Working Waterfront. The project will construct shoreline protection to protect the historic building along the Working Waterfront shoreline and also complete the Phase 2A portion of the project previously presented but not funded for stabilizing the public parking lot. The proposed shoreline protection project will extend over 200 linear feet along the shoreline of the Indian River Lagoon. Since the historic seawall no longer provides protection, the historic building is exposed to reoccurring impacts from storm water waves and water damage. The shoreline protection and stabilized public parking lot will provide the protective benefit to the Working Waterfront and the Indian River Lagoon. The project site is within the City's boundaries and within the City's submerged land lease. No land acquisition is required. In addition, the City has obtained the required permits from ACOE and FDEP for the construction of a linear seawall and the paving of the public parking lot. This project is considered the third phase of the Working Waterfront Improvements which has received past funding from FIND for Phase 1, 2 and 2A. AND, Florida Inland Navigation District financial assistance is required for the program mentioned above, NOW THEREFORE, be it resolved by the City of Sebastian that the project described above be authorized, AND, be it further resolved that said City of Sebastian, make application to the Florida Inland Navigation District in the amount of $200,000, which is 50% of the actual cost of the project on behalf of said City of Sebastian, 112 of 189 AND, be it further resolved by the City of Sebastian that it certifies to the following: 1. That it will accept the terms and conditions set forth in FIND Rule 6613-2 F.A.C. and which will be a part of the Project Agreement for any assistance awarded under the attached proposal. 2. That it is in complete accord with the attached proposal and that it will carry out the Program in the manner described in the proposal and any plans and specifications attached thereto unless prior approval for any change has been received from the District. 3. That it has the ability and intention to finance its share of the cost of the project and that the project will be operated and maintained at the expense of said City of Sebastian for public use. 4. That it will not discriminate against any person on the basis of race, color or national origin in the use of any property or facility acquired or developed pursuant to this proposal, and shall comply with the terms and intent of the Title VI of the Civil Rights Act of 1964, P. L. 88-352 (1964) and design and construct all facilities to comply fully with statutes relating to accessibility by persons with disabilities as well as other federal, state and local laws, rules and requirements. 5. That it will maintain adequate financial records on the proposed project to substantiate claims for reimbursement. 6. That it will make available to FIND if requested, a post -audit of expenses incurred on the project prior to, or in conjunction with, request for the final 10% of the funding agreed to by FIND. This is to certify that the foregoing is a true and correct copy of a resolution duly and legally adopted by the Sebastian City Council at a legal meeting held on this 28th day of March, 2018. CITY OF SEBASTIAN Mayor Jim Hill ATTEST: Jeanette Williams, City Clerk Approved as to form and legality for reliance by the City of Sebastian only: James D. Stokes, City Attorney 113 of 189 Cfr L SERAST'1 HOME of PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL Council Meeting Date: 28 March 2018 Agenda Item Title: Security Cameras and Gate Access; Sebastian Airport Recommendation: Authorize City Manager to execute an Agreement with ADS Security for purchase and installation of Security Cameras and Video Monitoring/Recording equipment at the Sebastian Municipal Airport (SMA). Backizround: On 1 February 2018 the City of Sebastian published Bid #18- 01 for the purchase and installation of new security cameras and video recording and monitoring equipment at SMA. Also included in the bid is the installation of access point card readers at two airport gates. Two well qualified businesses responded to the bid, with ADS Security from West Melbourne, FL being the low bidder. This security camera and recording system replaces SMA's underperforming security camera system with reliable equipment featuring modem high definition technology. Funding for the project was approved by Council on 10 January 2018 via R-18-01. That Resolution accepted the FDOT Joint Participation Agreement (442856-1-94-01) providing for 80% state funding at $64,000 with 20% City/Airport funding at $16,000; Total $80,000. The ADS bid is $76,628. Agenda Item Requires the following Previousiv Amwoved Funds: FDOT JPA Grant 80% $64,000 Airport Match 20% $16,000 DST Project Cost: $76,628 1 t Administrative Services Department/CFO Review: Attachments: 1. R-18-01 2. Bid 18-01 with ADS Work Services Agreement 3. Bid Tabulation City Manager Authorization: ' Date: 20 March 2018 114 of 189 RESOLUTION NO. R-18-01 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A JOINT PARTICIPATION AGREEMENT (JPA) WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION (FDOT) TO FUND THE COST OF REPLACEMENT SECURITY CAMERAS, RECORDING EQUIPMENT, VIDEO MONITORING SOFTWARE AND ADDED GATE ACCESS AT SEBASTIAN MUNICIPAL AIRPORT; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. Whereas, Security cameras and recording equipment at Sebastian Municipal Airport are outdated, broken and/or exhibit unusable video quality, and Whereas, the City of Sebastian recognizes the importance and need to have a reliably functioning, and useable security system in place at Sebastian Municipal Airport, NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SEBASTIAN, as follows: Sectionl. AUTHORIZATION. The City Manager is hereby authorized to execute a Joint Participation Agreement (JPA) with FDOT (reference Project No. 442856-1-94-01) on behalf of the City, and is attached hereto. Section 2. CONFLICTS. All resolutions or parts of resolutions in conflict are hereby repealed. Section 3. EFFECTIVE DATE. This resolution shalt take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Council Member Dodd The motion was seconded by Council Member McPartlan and, upon put to a vote, the vote was as follows: Mayor Jim Hill a y e Vice Mayor Linda Kinchen a y e Councilmember Ed Dodd aye Councilmember Albert lovino aye Councilmember Bob McPartlan aye 115 of 189 The Mayor thereupon declared this resolution duly passed and adopted this 10th day of January 2018. ATTEST: 4jn'e ms, City Clerk CITY OFf SEWf?TIAN, FLORIDA Approved as to form and legality for reliance by the City of Sebastian only: Cynthia V. Hall, Interim City Attorney 116 of 189 C111 OF HOME OF PELICAN ISLAND Bid 15-01 SEBASTIAN MUNAC.APAL, AIRPORT SECURITY CAMERAS Prepared by: Scott Baker, Airport Director 1225 Main Street Sebastian, FL 32958 sbaker(r),cityofsebastian.ot4 117 of 189 cm' Of SERA_'S HOME OF PELICAN ISLAND IMPORTANT NOTICE Check List For All Required Documents To Be Included In Bid No_ 18-01 Bid Name: �] 0 t i . ` 13't!.' li i C ► P.fq.) % } ,•} T� Executed Form City Staff Submitted Confirmation V - 1) Signed laid Proposal Foran 2) Proof of Contractor's License Signed Drug Free Workplace Form 4) Signed Public Entity Crime Form 5) Bid Bored, if required t 1j 6) Signed Services Agreement ? ✓ - 7) Insurance Certifeate 8) Addendum(s) sioied, if applicable. _ The submittal uackap-e should be in order of this checklist. Any bids received NOT described as above in items 1-8 will be considered incomplete and the bid will be disqualified.. _ 4 Signed: d Date: 118 of 189 Bid 18-01 NOTICE OF INVITATION TO BID SEALED BIDS FOR AIRPORT SECURITY CAMERAS WILL BE ACCEPTED BY THE CITY OF SEBASTIAN,1225 MAIN STREET, SEBASTIAN, FLORIDA 32958, UNTIL 2:00 PM ON THURSDAY, FEBRUARY 15.2018. BID ENVELOPES ARE TO BE MARKED AS FOLLOWS: BID NAME: 18-01 SEBASTIAN MUNICIPAL AIRPORT SECURITY CAMERAS BID OPENING: 2:00 PM ON THURSDAY FEBRUARY 15, 2018 'rhe City of Sebastian is seeking bids from licensed contractors to provide materials and installation services for the Sebastian Municipal Airport Security Camera Systern Upgrade. The Contractor shall be able to be properly licensed in the City of Sebastian and shall provide proof of insurance to conduct its business, with all Iicenses, permits, & certificates as may be required by all local, State of Florida, and Federal Agencies. The Contractor shall submit a current license from the State of Florida and must be capable of obtaining the appropriate licenses and certificates to perform the project in the City of Sebastian. A bid bond is required in an amount not less than 5% of the base bid amount as well as performance and payment bonds on any resulting contract. Bid details and documents are available from w-%vv.demandstar.com or by contacting .Terni Tarbeli at jtarbell rr cityofsebastian.org. All items bid shall conform to the Hid Documents unless specifically approved in advance in writing by the City. Any person or affiliate who has been placed on the convicted vendor list following conviction for a public entity crime may not Submit a bill as proscribed by Section 287.133, F.S. Any bids received without the s_ianed Bid Proposal, signed Drug Free Workplace I orrn, signed Public l;ntity Crime Dorm, signed Bid Bond, if applicable, signed Service Agreement, signed Addendrnn{s} if applicable, Proof of Contractor's license, and signed Check List will be considered incomplete and bid will be disqualilied. There is a mandatory pre -hid conference scheduled at Time: 11:00 AM, on Thursday February 1, 2018, at Sebastian City Hall, Sebastian City Council Chambers, 1225 Main Street, Sebastian, F1. 32958. Questions concerning this bid should be directed to Scott Baker at sbaker(i�cityofsebastian.org. Bids duly submitted will be publicly Opened and read aloud at the date and time specified above in City Hrill. The City rescrves the right to reject any and all bids, or to accept any bid or portion thereof deemed to be in the best interest of the City, and to waive any non -substantial irregularities. The winning hrider will be the lowest responsible and responsive bidder. By: Joe tirilliii. City Manager 119 of 189 CITY OF SEBASTIAN INSTRUCTIONS FOR BIDDERS PRE-BID CONFERENCE A mandatory pre-bid conference will be held at the City of Sebastian City Ilall, 1225 Main Street, Sebastian, Florida 32958 at the time and date specified in the Notice of Invitation to Bid. All prospective bidders are encouraged to entail the contact on any questions. REQUIRED COPIES & ONE ORIGINAL One signed original and two (2) sets of copies shall be submitted on the signed Bid Proposal Price Form provided, including any other forms, proofs, and documents as required. SEALED BIDS Bids shall be enclosed in a sealed envelope which shall show (lower left corner) the name of the Bid, andthe date and tune of opening. The envelope shall also show the name and address of the Bidder. The Bid shall be submitted as stipulated in the Notice of Invitation to Bid. 4. BIDS NOT CONSIDERED Bids not considered are Late Bids, telegraphed, emailed or Faxed Bids and bids which do not conform to the instructions contained in the Notice of Invitation to Bid. Bids may be withdrawn by fax or telegraph provided that such notices are received prior to the date and time specified in the invitation. BID OPENING Bidders are welcome to attend the bid opening; however, attendance is not mandatory. Opening of the Bids will commence at the date and time specified in the Notice of Invitation to Bid, and publicly read aloud, providing one or more Bidders are in attendance. The Purchasing Agent or his designee shall be present at all Bid openings. 6. BID EXAMINATION Bid summary sheet may be examined during nonnal working hours, ten (10) days after bid opening, by appointment only, by contacting the City Clerk's office at 772-589-5330. 7. REOUIRED INFORMATION Bidders shall follow all instructions and provide ail information requested on the Bid Proposal Price Foran. Bidders wishing to qualify all or any portion of the bid shall provide a hand printed or typed explanation on the bid or separate attachment to be submitted with the bid. BIDDER QUALIFICATION OUESTIONNAlltE Responsive and Responsible Bidders shall include the completed Bidder Qualification Questionnaire with the submitted bid proposal. The submitted Bidder Qualification Questionnaire will be reviewed by the City, if the bidder is the lowest bidder for this project. ACCEPTABLE BIDS Bid proposals shall be typewritten or filled in with ink. Any erasures or corrections must be initialed by the bidder in ink. It1. NEW EQUIPMENT AND MATEMALS Prices shown on the bids shall be price~ for new CLIttilpntcttt Lind materials, ilnd the successful bidder shall warrant Silage tont period ol'not less than one (1) ycnr from the installation date, or as otherwise; stated. H. . SALES TAX Although the t"it.y ol'Sebastian is exempt from federal and and I Esc taxes. Contraciorl; ()I - 120 )r 120 of 189 Vendors doing business with the City are not exempted from paying said taxes to their supplier for goods or services purchased to fulfill the contractual obligations with the City, nor shall any Contractor or Vendor be authorized to use the City's Tax Exemption Number in securing such materials. 12. CONFLICT OF INTEREST Contract Award is subject to provisions of State Statutes and City Ordinances. All Bidders must disclose with their bid the name of any officer, director, or agent who is also an employee of the City of Sebastian; further, all Bidders must disclose the name of any City employee who owns, directly or indirectly, an interest of ten percent (10%) or more in the Bidder's firm or any of its branches. Should the successful Bidder permanently or temporarily hire any City employee who is, or has been, directly involved with the Bidder prior to or during performance of the resulting contract, the Agreement shall be subject to immediate termination by the City. 13. LICENSING, CERTIFICATION. AND/OR REGISTRATION Contractors must show their current occupational license, as well as any licenses required by Chapter 489, F.S., Section 62C-20 (F.A.C.), and/or by the US FPA, Fl. DEP or the FL Department of Agriculture and Community Affairs. All licenses shall be up to date. Contractors must show their current Contractors license. Prior to start of work, if the Bidder is a State Certified General Contractor, the Bidder must be registered with the City of Sebastian; if the Bidder is a State Registered General Contractor, then the Bidder must hold a Competency Card with the City. in any event, the Contractor shall contact the Administrative Assistant at the Building Department 772-589-5537 and insure compliance with all City ordinances, rules and regulations, including Building Permits if required. Lack of knowledge by the Bidder shall in no way be a cause for relief from responsibility. Failure to comply with the above may result in the rejection of the Bid. One Original and two (2) copies of any license or certification as required shall be submitted with the bidding documents. A certificate or letter showing compliance with the City's Contract Licensing requirements must be obtained from the City's Building Department, and is required on this project prior to execution of a contract, and shall be submitted to the Purchasing & Contract Administiator with any paymentlperloniiance bonds which may be required. In essence, this authorizes you to perform work in the City of Sebastian. Any Sub-Contractor(s) must also he certil led. 14. CORRECTIONS. CANCELLATION, & WITHDRAWAL A. Bidders may be asked to provide further information aper bid opening to determine (lie responsibility ofthe vendor. B. Waiver of Technicality: Information shall not be considered after the bid opening if it has been specifically requested to be provided with tiie bid and becomes a matter of responsiveness. The bid shall he considered responsive if it substantially conforms to the requirements of the invitation to Bid. The City may waive any informality. technicality, or irregularity on any bid. A minor or non -substantive lack of conformity may be considered a technicality or irregularity which may be waived by the City. C. Mathematical Errors: terrors in extension of unit prices or in mathematical calculations may be corrected. in cases of error;. in madiematical computations, (lie unit prices shalt not be changed. 1). C.ancellnrion or Postponement: I'IZe Purchasing & Contract Administrator may cancel or postpone (lie bid openin; or cancel thy. Invita(ion to Bid in its entirety. 121 of 189 E. Withdrawal: Prior to any published bid opening date and time, a bidder may withdraw his or her bid in writing. An email is pernilled for this purpose, provided a confirming telephone call is made. 1�. Amendments: Prior to any published bid opening date and time, a bidder may amend the bid provided that it is in writing, in a settled envelope, and identified. Is, AVAILABILITY OF FUNDS The obligations of the City of Sebastian tinder this award are subject to the availability of funds lawfully appropriated for its purpose by the City Council of the City of Sebastian. 16. PUBLIC ENTITY CRIMES Any person or firm submitting a bid in response to this invitation must execute the attached SWORN STATEMENT UNDER SECTION 287.133, FLORIDA STATUTES, PUBLIC ENTITY CRIMES. including proper check(s) in the space(s) provided, and enclose it with said bid. 17. DRUG-FREE WORKPLACE The Drug -Free Workplace form, as attached hereto, shall be submitted with the bidding documents. 18. BID GUARANTEE Tile Bidder warrants that the unit prices, terms, and conditions quoted in the bid will be firm for acceptance for a period of not less than sixty (60) days from the bid opening date. Such prices will remain finn For the period of performance of resulting purchase orders or contracts which are to be performed, 19. BID BOND (Required) A Bid Bond equal to five percent (5%) of the bid amount shall be required oil this project, and must be submitted along with one original and two (2) copies of the Bid, failure to do so will automatically disqualify the [aid, Unsuccessful bidders shall be entitled to a return of surety after final award of bid. A successful bidder shall forfeit the amount of its security upon failure on his part to execute an agreement within ten (10) days after receipt of a proposed agreement from the City unless the time for executing the agreement.is extended by the City. �0. PAYMENT AND PERFORMANCE BONDS (Required) A Payment and Performance Bond equal to one hundred percent (100%) of the Agreement price shall be required on this project, and shall be provided by the successful bidder at the stipulated time of the execution of the agreement, failure to do so shall cause said bidder to he in default and forfeit his laid Bond in its entirety. (Sample Forms are provided for information purposes.) NOTE- DID BOND AND PAYMENT AND PERFORMANCE BOND REQUIREMENTS: The bond(s) shall be provided by a surety company authorized to do business in the State of Florida, and approved by the City. Lt lieu of a bond(s) the contractor may furnish as security in favor ol'the City a certified check, a cashes check or an irrevocable letter of credit. The check or letter of credit shall be drawn on or issued by a bank authorized to do business in the State of Florida, The form of (lie check or letter of credit must he approved by the City. Attorneys--in-fact who sign Bonds must file wilh each hond El Certified and effective dated copy of their Power - of Attorney. Surety companies executing Bonds must appear on Clic Treasut:V Department's most Current list (Circular 570 as amended), and be authorized to transact huSInCSS in tile state of Flnrida- 1- tAQUIDATED DAMA€rES I'ht: City shall he entitled ter liquidated danratres in Ifle aaiouut of, three hundred Dollars 00110.00) per day for every slay (fart tilt'. Contractor is lar€i. in Completing each task ivorlt 122 of 189 order as stipulated in the agreement, and bidding documents. Said damages shall be deducted by the City from monies due Contractor. 22. INSURANCE All bidders shall submit evidence of insurance as follows; Auto Liability, Workers Compensation, and General Liability. Cost for all insurance shall be born by the bidder. All insurance shall be acceptable to the City in its sole discretion. 23. BID AWARD The contract/agreement will be awarded to the lowest responsive and responsible Bidder whose bid, conforming to the specifications and Instructions for Bidders will be most advantageous to the City in consideration of price, time of performance, and other factors as determined by the City. The Purchasing Agent shall issue a notice of award, if any, to successful bidders. 24. REJECTION OF BIDS The City reserves the right to reject any and all Bids, to waive any and all informalities not involving price, time, or clianges in the work, and to negotiate contract terms with the successful Bidder, and tile, right to disregard all non -conforming, non-responsive, imbalanced, or conditional Bids. More than one Bid from an individual, firm or association under same or different names, will not be considered. Any or all Bids will be rejected if there is reason to believe that collusion exists among; the Bidders, and no participants in such collusion will be considered in future proposals for the same work. 25. REFERENCES A list of References is required, but is not required to be submitted with the Bid proposal. A list of References must be included with at least three references of similar type of work. 26. LIST OF SUB -CONTRACTORS A list of Sub -Contractors is required, but is not required to be submitted with the Bid proposal. However, all Sub -Contractors must be approved by the City, prior to any Contract Award. 27. CO-OPERATIVE PURCHASING It is the intent of the Notice of Invitation to Bid to secure goods or services to be used by the City of Sebastian. However, by virtue of bidding, the Bidder accepts the right of other Government Entities to "piggyback" purchase fi-om this proposal by mutual consent. Any such purchase shall be separate and apart from the City of Sebastian, and said City assumes no liability for such action. 29. DISCRIMINATION The Bidder/Contractor shall not practice or condone: personnel or supplier discrimination of any nature whatsoever, in any manner proscribed by federal or State of Florida laws and regulations. 29. PURCHASING CARD PROGRAM The City of Sebastian has implemented a purchasing card program through Bank of America, using the Visa network. Vendors may receive payment through the purchasing; card program for goods and services provided to the City in the same manner as other Visa purchases. Accordingly. Vendors that wish to accept payments in this manner must indicate that they have the ability to accept Visa or those they will take whatever steps are necessary to accept Visa beiure the start of the contract. The City of Sebz1sLiall reserves the richt to revise and/or cancel this program at :trey lime, and assuntes no liability for such action. PUBLIC RECORDS l'lorida law provides that municipal records shall at all tunes be open for personal inspection by any person. Section 119.01 1'.S., I'he I'ublic Records Law. hili rniation and materials received by the City in connection with all Bidder's responses shall be d.enicd to lie public records s lhlect to public inspection upon award. recommendation for awani. .w 10 days agger the bid ot,vnin'. 123 of 189 whichever occurs first. However; certain exemptions to the public records law are statutorily provided for in Section 119.07, F.S. Therefore, if the Bidder believes any of the information contained in his or her response is exempt from the Public Records Law, and then the Bidder must in his or her response specifically identify the material which is deemed to be exempt and cite the legal authority for the exemption, otherwise, the City will treat all materials received as public records. 124 of 189 Airport Security Specifications Rid Due. No later Than 2.00 P.M. on February 15. 2018 Bid Opening; Beginning at 2.00 P.M. on February 1 S. 2018 BID PROPOSAL PRICE FORM The undersigned having become thoroughly familiar with all of the Bidding Documents incorporated herein and having attended a Pre -Bid Conference / Meeting, hereby proposes to perform everything required to be performed in strict conformity with the requirements of these documents, meeting or exceeding the specifications as set forth herein for the price(s) quoted below. The price(s) quoted is (are) inclusive of any Addenda which may have been issued prior to this submittal. By the signature below, the Vendor agrees that this Bid Proposal is made without any other understanding, agreement, or connection with any person, corporation, or firm submitting a bid for the same purpose and that the bid is in all respects fair and without collusion or fraud. If awarded any work tinder this bid proposal, the Vendor agrees to enter into said agreement within ten (10) consecutive calendar days notice by the City, and agrees to all the terms and conditions of all documents stated herein with the City of Sebastian for the below stipulated price which shall remain firm for sixty (60) days following bid opening date. The City shall be entitled to liquidated damages in the amount of three hundred Dollars ($300.00) per day for every day that the Contractor is late in completing the task work order as stipulated in the agreement, and bidding documents. Said damages shall be deducted by the City from monies due Contractor. See Attached Separate Bid Form Name o inn (Please Type or Print): Fi stn's. Address: Lt-"?; '7 �' 1G -��i _ L`1-6�'� I'clephone Vutnber(s): ! ax Numher(s): Jr , Dame nand 'rule of Aulhoriced Repr6sentative (Please Type or Print) 5ve late Signed I;nrall Address (es): 125 of 189 ADS Sec a n y 431.101 P=as tr to i�I�.c Suite Pt West R ie&bou rage, I =f., 32900, y p i�C 20000960 i U TATION Sebastian Airrp owl NAME 02, Airport dr ,ADDRESS Sebastian GSI 32958 722-228-7011 shaalcel•@c:ityca sebastian.org CiTy STATE ZIP TEL.EPHOME FAX E -Mail Address SY5TEM'rYl'F: —AL ARP/I ;, CAMERAS CARD ACCESS List of eciuinrment 7 180 degree IP super higtt resolution cameras 5 Gate intercom cameras 5 Gate overview cameras_ 18 Terabyte Server Media Converters for Fiber Optics to IP Cameras Brackets/Mounts/AccessorleslpArtslLabor 2 MaxiProx Readers for Gate 4 and 21 Run Cat.6 and/or Single strand Multi Mode Fiber at Gate 4 To Bunker IIIrti t� f�� a 6�� Summary $ 161,828.00 Monthly Maint. fp-p $83CIO 66 FO month Agntement r-JUl +rd Required Maint. Agreement. 1. Tax'slpermitsltrcnchingllifts not included Bob Erdman Security Consultant Phone#: 327-411N••'i� Quotations valid for thirty (30) days irroin date al:uve. 126 of 189 Sebastian Aimort S'ecurio Svecification Companv/Provider must be Prowatch Certified Full Maintenance Agreement for Syste n Internal Lease Option All camera Views including Cameras Mounted Remotely on Poles 1080p 1P Camera's for Gate Intercom and Overview Cameras 3MP imagers for all other Cameras True Wide Dynamic Range Windows 7 0S. 64 bit Platform Required ONVIF Conformant C -Mapping .Full Supports and de -interface of Panoramic and fisheye cameras Storage failure notification Dual Network Card 18 "1'erabyte Server Fiber conversions required Spectrum Software Compatible Including 90 Day farts and Labor Service Agreement with 45 Minute Guaranteed Service Response Time. %�y t�i►cr•�.�E�,�!"r r�rl�i+�� TOTAL 1111) PRECL S 7 6 `�� � ��I 1 Option for Annual Service: Agreement. Includin- fits is and Labor Per Month. 127 of 189 BIDDER OUALIFICATION QUESTIONNAIRE (This forst is not required to be included in the bid propmal submittal. However, prior to any Contract Award, such Bidder Qualification Questionnaire must be completed and submittedlaythe Bidder, and reviewed and approved by the City.) T Submitted by C t Z ID _--- — Naffic of Bidder General Contractor's i,icense R () An Individual (; -YA Partnership ( ) A Corporation Federal Identification 1? Principal Office Address: NOP, -f 00 22, (1) Flow many years has your organization been in business as a contractor under your present name? f (2) How many years experience in road and utility construction work has your organization had as a contractor? As a Subcontractor? (3) List below the requested information concerning projects your organization has completed in the last five (5) years for the type of work required in this project. (Use additional sheets if necessary). Include the type of work similar to the work included in this contract i.I'possible. Project Contract Required Actual NamelAddressfrel Title Amount Complet_ion..Date Cptu}�lptipp- DateofOwner IZ-K (4) have you ever Iailed to complete any work, awarded to you? Ifso, where told why? r) ---------- 0) l i❑< .1 '. -r or p'rirtr or of your .n i:atlir;tli;tn :vcr been an offic-:;- -r pariner iW ]lime Other nrvanlY.ahoi- lii..t lu complete a Umnsil-110iliz! COOH-m-l? It St7, Pulte naink: of In4i't idunl. tial a ol'other �'i ".IcllltltlfFr?. 111crQr6re. 128 of 189 (6) Has any offices or pivii5er ofyoltr ()rgillliMi011 ever failed to completc any construction contract handled ill Isis own name? Irso. state 11fline (Vindividilill, naille orowiler and retuion thea-efam. (7) oivc below any alformalivil which would hidicatc the sire and capacity of your organization, hiclildhig number -or employees, e(joiPluellt owned by your Up,31lizittion, etc., which arc available fOl- LitilWififfli On this Contract, Ix -eel l (3) What is your bonding capacity? Al (9) WlwL amount of your bonding capacity has been usM as of the [late of this bid? ?W j ([0) HOW elan yapplicaliolLs for perforinnilcamid payment bonds have you inade in the last three Q) yen]-,? I 10W many Of OJOS(', Fiji ptirifli(l JJS were 110t npproveV_ (12) 1 Inve atiy olahils; been ifled i-igainst yotrr surety hopid cumpany ill the last Avo (5) years? If so, describe the nature of [tic claims and give the nonic..; orlhe Surety conlPHIliez-, JaWs of oac-11 claim, irlentilyftig otulibers Wt-UMUll cNiol, itula ulk ot'evefl Claill), aild OfC,1C.11 F114111. (Use fIdditi011at Sheet, iflJeCCS.:;JVY.) 129 of 189 (13) 1lave your company been in dispures or litigations in the last five (5) years over construction projects which are completed or still pending lar completion? If so, describe the nature of the disputes or litigations and states the Owner's Name, Address, Telephone, and amount of disputes or litigations. (Use additional sheets if necessary.) I, the undersigned, do hereby declare that the foregoing statements are true and correct, all as of the date hereinafter set forth, and that those examining this document have my permission to contact any or all of those parties listed in this questionnaire, Incorrect or misleading statements in this questionnaire shall be grounds for a determination of non -responsibility with respect to such contractor. (SIGNATURE OF BIDDER) (TYPE OR PICINT COMPANY NAME) ----- (TYPE OR PRINT ADDRESS) J. , �.. 1 ,y fG3 y 130 of 189 -LiCli I bVrb, OF `ZIDA Ov gLISLNESS AW) PsR()V"r'1_FSGP, WAL RE'011JU tar ?A tR f i W E. ky I ELECTRICAL CONTRACTORS LICEENSING BOARD (850) 487-1395 yob TO 2601 BL/\IP, S NE ROAL 1ALLAHASSEE FL 32399-.0783 TI IOMPSON, IRA L ADVANCED DETECT ION SYSTEMS INC 1160 WACO BLVD SE PALM BAY F1_ 32909 Cci:gratulatiorls! With this license You become one of the nearly une million Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range, fraill architects to yacht brokers, from boxers to barbeque restaurants, and they keep Florida's economy strong. Lvery day we work to improve the way we do business ill order to serve you better. For infcrination about our services, please tog onto www.myfloridalicenso-c-orri. There you can find more information about Our divisions and the regulations that impact you, subscribe to department newsletters and learn more about the Department's initiatives. Our mission al the Depoffinent is; License Efficiently, Regulate Fairty. We constantly strive to serve you better so that you can sorve your customers. Rmnk YOU for dohig business in Florida, writ congraWkitiOlIS 011 your new license! STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULAVON EF20000867 ISSUED: 07/17/2016 GFRTALAHM SYSTEM CONTRACTOR I I I JOMPSON, RA L ADVANCED DETECTION SYSTEMS !NC 15 CIFIRTIFIED under the pru?Oalons of Qh.489 FS. Vx0rako iWe : AUG 31, 2(38 1, 077170002 w I OFTAGH 1-11--JRF RK,K SC01 1, (.;0VF__RN(JR KFN LAINSON, SECRETARY STATE Or: FLORIDA DEPARTMENT OF BUSINESS ANI) PROFESSIONAL REGULAFION ELF-urRICAL CIDNTRACTORS LICENSING BOARD 3" I'he A[ ARM .)YS TFM CON'l IW,'l N: I NA i ,d ,f oi I ION Sys'l nm:.;, 1i'jr" A UApplicant If) No: 100536-6152 Service Center No: 5 Expires: 31 -MAR -2018 MIHA` IFICAYE OF C,OOMP ..GAWGE THIS IS TO CERTIFY that the Aiann Service Company indicated below is included by Undeivvriters Laboratories Inc:. (UL) in its Product Directories as eligible to use the UL Listing Mark in connection with Certificated Alarm Systems. The only evidence of compliance with UL's requirements is the issuance of a UL Certificate for the Alarm System and the Certificate is current under UL's Certificate Verification Service. This Certificate does not apply in any way to the communication channel between the protected property and any facility that monitors signals from the protected property unless the use of a UL listed or Classified Alarm Transport Company is specified on the Certificate. Listed Service From: WEST MELBOURNE, FL. Alarm Service Company: (1611342-000) Service Center: (1611342-000) A D S SECURITY L P ADS SECURITY LP 4356 FORTUNE PL, SUITE A 4356 FORTUNE PL, SUITE A WEST MELBOURNE FL 32904 WEST MELBOURNE FL 32904 The Alarm Service Company Is Listed in the following Certificate Service Categories: File - Vol No. CCN Listina Cateqory BP8457-5 CVSG [Surglar Alarm Systems] Mercantile S3017-3 UUFX [Signal and Fire Alarm Equipment and Services] (Protective Signaling Services) Central Station ***THIS CERTIFICA,rE EXPIRES ON 31 -MAR -2018*** "LOOK FOR THL UL. ALARM SYSTEM CERTIFICATE" DRUG-FREE WORKPLACE FORM The undersigned Contractor, in accordance with Florida Statute 287.087 hereby certifies that 1s�"�.,�? 1'�/ �, does: Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition. 2. Inform employees about the dangers of drug abuse in the workplace, the business' policy of maintaining a drug free workplace, any available drug counseling, rehabilitation, employee assistance programs and the penalties that may be imposed upon employees for drug abuse violations. Give each employee engaged in providing the commodities or contractual services that are under bid a copy of the statement specified in Paragraph 1. 4. In the statement specified in Paragraph 1, notify, the employees that, as a condition of working on the commodities or contractual services that the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea of guilty or nolo contendere to any violation of Chapter 1893 or of any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction; Impose a sanction on, or require the satisfactory participation in a drug abuse assistance or rehabilitation program if such is available in the employee's community, by any employee who is so convicted. 6. MAe a food faith effort to continue to maintain a drug free workplace through implementation of Paragraph 1 through 5. As the person authorized to sign this statement, I certify that this firm complies fully with the above requirements. Date: �i (/Signature 133 of 189 SWORN STATEMENT UNDER ST CTIOT*l 287.133(3)(a), FLORIDA STATUTES, ON PUBLIC EN'T'ITY CRIMES THIS FORM MUST BE SIGNED IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS. This sworn statement is submitted with laid, Proposal or Agreement No. j `�, -" ,� for THE CITY OF SEBASTIAN. This sworn statement is submitted by f� ��- a;. ;� ; -�- q (name of entity submi#ting sworn statement) whose business addrress i C"-_ i"►_� i��r'_ ��fr.` f`tIi f7��,,ir.E'� t�ar;i applicable) its Federal Employer ldentificatron (FEIN) is -,ntity has no FEIN, include the Social Sectirity Nrtinber of the ...N.-- ..,_o _ _ statement: ) My naive -r r t _ _ ^ (please print name of individual signing) aid my relationship to the entity named above is I understand that it "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any othcr state or with the United States, including, but not limited to, any bid or Agreement for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of' the United States and involving antitrust; fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 5. 1 understand that "convicted" or "conviction" as defined in Paragraph 287.1.33(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after.liily I, 19$9, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or nolo contendere. G. l understand that an "affiliate" as defined in Paragraph 287.1;3(l )(a), Florida Statutes, means: (1) A predecessor or successor of person convicted of a public entity crime; or (2) An entity under the control of any natural person who is active in the management of tine entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, parniers, shareholders, employees, members, and agents who are active in tate inanageinent of an affiliate. The ownership by one person of' shares constituting it controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a point venture with a person who has been convicted of a public entity crime in Florida during the preceding; 36 mouths shall be considered an affiliate. I understand that a "person" ns defined in Paragraph 2$7.133([)(e), I lnriciz_5tati_:tes, means any natural person or C111itV or}�-ln'zed underthe haws of any state, or alt Ilie United Slates 4vith the lentil power to 0711ex into a binding Agreement and which bids or applies to bid on A.green:icnt5 Col. Ilie: provision of .,odds or services let by it public entity, or which otliciwise transacts or apllic°, to transrwt busiivs, with a JR1111 c entity. HIC terni "prrNonl" includes diwc ofliccrs, direc(ors. Wxcc;iltivcy, pa1-lner.s, shill-0iolders, omployces, members, janc] 11:1_nts «hu are active ill mallagellic-14 , :11) ciicity, 134 of 189 PUBLIC ENTITY CRIMES FORM Any person submitting a quote, bid, or proposal in response to this invitation or Agreement, must execute the enclosed form sworn statement under section 287,133(3)(a), FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES, including proper check(s), in the space(s) provided, and enclose it with his quote, bid, or proposal. If you are submitting a quote, bid or proposal on behalf oi' dealers or suppliers who will ship commodities and receive payment from the resulting Agreement, it is your responsibility to see that copy(ies) of the form are executed by them and are included with your quote, bid, or proposal. Corrections to the form will not be allowed after the quote, bid, or proposal opening time and date. Failure to complete this form in every detail and submit it with your quote, bid, or proposal may result in immediate disqualification of your bid or proposal. The 1989 Florida Legislature passed Senate Bill 458 creating Sections 287.132 - 133, Florida Statutes, effective July 1, 1989. Section 287.132(3)(d), Florida Statutes, requires the Florida Department of General Services to maintain and make available to other political entities a "convicted vendor" list consisting of persons and affiliates who are disqualified from public and purchasing process because they have been found guilty of a public entity crime. A public entity crime is described by Section 287.133, Florida Statutes, as a violation of any State or Federal law by a person with respect to and directly related to the transaction of business with any public entity in Florida or with an agency or political subdivision of any other state or with the United States, including, but not limited to, any hid or Agreement for goods or services to be provided to any public entity or with an agency or political subdivision and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. By law no public entity shall accept any bid from, award any Agreement to, or transact any business in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two (currently $10,000) with any person or affiliate on the convicted vendor list for a period of 36 months from the date that person or affiliate was placed on the convicted vendor list unless that person or affiliate has been removed from the list pursuant to Section 287.133(3)(1), Florida Statutes. Therefore. effective October 1. 1990, prior to entering into an Agreement (formal Agreement or purchase order) in excess of the threshold amount of $10,000 to provide goods or services to THE CITY OF SEBASTIAN, a person shall file a sworn statement with the Contract/Agreement officer or Purchasing Director, as applicable. The attached statement or affidavit will be the form to be utilized and must be properly signed in the presence of a notary public or other officer authorized to administer oaths and properly executed. THE INCLUSION OF THE SWORN STATEMENT OR AFFIDAVIT SHALL BE, SUBMITTED CONCURRENTLY WITH YOUR OUOTE OR BID DOCUMENTS. NON-, INCLUSION OF THIS DOCUMENT MAY NECESSITATE REJECTION OF YOUR OUOTE OR BID. 135 of 189 Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. (Please indicate which statement applies.) f,. 4 Neither the entity submitting this sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in management of the entity, nor any affiliate of the entity have been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of the officers, directors, executives, partners, shareholders, employees, members or agents who are active in management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989, AND (Please indicate which additional statement applies.) There has been a proceeding, concerning the conviction before a hearing officer of the State of Florida, Division of Administrative Hearings. "rhe final order entered by the hearing officer did not place the person or affiliate on the convicted vendor list. (Please attach a copy of the final order.) The person or affiliate was placed on the convicted vendor list. "There has been a subsequent proceeding before a hearing officer of the State of Florida, Division of Administrative Hearings. The final order entered by the hearing officer determined that it was in the public interest to remove the person or affiliate front the convicted vendor list. (Please attach a copy of the final order.) The person or affiliate has not been placed on the convicted vendor list. (Please describe any action taken by or pending with the Department-ofGe-ne 'ces.) f• --s a ire) --__ _-- Date: �2 /�f�' STAT); OF FLORIDA CUUN'Iy OFrZ The foregoing instrument was acknmvIed-ed before me this Z day of 2fl 18 by (title) on ehalf of (name of partnership), a partnership. Ile/she is personally known to me or has produced -- — as identification and did ( ) did not ( ) talo an olith - - Nance:_! My Commission lsxpires: Commission NtlEtnE.)et': °4KIM SERI-Zr=1N My COMMISSION# FF? 35157 CXPIRES ,luno P3,201 8 ('io0 'tl19J fIgfldaN©If3ry$Eirvlcaa;om 136 of 189 OLD REPUBLIC SURrrY COMPANY _ POWER OV N T tY NE r KNOW ALL NJ Ell BY THESL' PRl3SLNTS: That OLD REPUBLIC SURETY COMPANY, a Wisconsin stock insiminco enipolalion, does an'dw, constitute ulyd appoint: A. WARREN PIALLIPS, III, AL PHILLIPS, Jlt„ MARIA14 PALMER, OF BRF14TWO0I), TN its nun and lawful Altorrtcy(s)-iat-Fact, with full powerand authority, not exceeding $50,000,1100, fbr and an bahalfof Ilio compriny as surety, to etcccule and deliver and affix the seat of the company thereto (if a sent is required), Wauls, undcrhikhtgs, rccognizanccs or other mitten obligations in lite nature thereof, (other than buil txmd9, bink &isitory bonds, mortgage deticie:ncy b Ili, mortgage Suzrwnty h:nufs p2rtnteea' of inslallmart paM�,. and nate gu,rninly b nrdsr u311-inswu rce wwkcr. enmpoevlian tendo guanMeeing paynirnt oflxneMs. a,hn;:o: abatement conliacd !»ods, Ansa mumgemml hands, h inniom waste rLmsedWinrf hon! Lir hi -k IttirS t:.n,f,i, asfollorvs: ALL WRITTEN INSTRUME=NTS IN AN AMOUNT NOT TO EXCEUl THREE MU.1.10N D0U.ARS(S3,000,000)------------ —---------- FOR ANY SINGI.r OBLIGATIOm and to bind OLD 111:PUBLIC SURETY COMPANY thereby, and all of the acLq ors iid Attomeys-ht-Fact, pui5tluitt to ihc5e prClei:(S, are Iliftficd Alld COIllhll7ed. i his dutwucnl is red ta1W unlc_s p inlc,lan colol�.t b rckgrinrnd r,ad it nudli•r ,lulcJ. This appolnpnunt Is made under and by aulliorilyy of tete board of directors at a special meeting held an Fobramy 18, 1987., This Power of Altamcy is signed and senled by facsimile tender and by Ilia authority orthe following rrisehitiotis adopted by the board of ditctors of the OLD REPUBLIC SURF rY COMPANY on February 18, 1981 RESOLVED that, the pnsidcnl, any vice-president, or assistant vice president, in conjuiuxiolrwilh [be iWelnty or any nssislanl secretary, may appoint attomcys-in-112ot or agents with authority as defined or limited in the instrument evidencing the appointment in cagh case, ibr and on behalf of fhe company to cxceute and deliver and affix ilia seal of the company to bonds, lmdertaldligs, recognizances, and suretyship obligations of nil kinds; and said officers may remove any such attorney-in-fact or agent and revoke any Power of Attorney previomtly granted to such person. RESOI:VED FURTHER, lira( any bond, undertaking, rceogni7nnce, or suretyship obligation sbal l be valid and binding open Ilio Company (i) when sighed by the president, any vice president or assistant vice president, and ultcMed and settled (da seal'be rc(juirbd) by any sujbretaty or assistant secretory; at- (it) r(it) when signed by the president, any vice president or assistant vice president, secretary or assistant secrclary, laid countersigned and scaled (ifn seal be required) by a duty authorized ullaincy-in-lbct or ageril; or (iii) when duly executed and scaled (if n sent be required) by one orMale attomcys-in-fact or agents pursunnl to arld Ivithin lite linills of lite authot•Ity, evidimccd by ilio Powerof Attorney`issued by the company to a.obit person or persons. [U:SOLVED CURTHER, Ihat the signature o€any authorized officer and the seal of the company may bo affixed by facsimile to any Power ofAttomgy or ccrtilication thcreofauthorizing ilia execution and delivery of any bond, undertaking, rtxognizunce; or other suretyship obligations of tN4 company; and stair signalurr and soul When sa used shall have ilia sninc force and effect as !hough manually affixed IN WITNESS WHEREOF, OLD REPUBLIC SURETY COMPANY lens caused these presents to be signed by its proper officer, and its corporate seal to be affixed Us-_ 2Y-THday of. OCTOBER. 2017. OLD RE14111LIC SURETY COMPANY J. ev • ... / _ .460 p -444 SPATE OF WISCONSIN, COUNTY OF WAUKrSHA-SS �, '"` Preslrient On this . 271*171 -._ dry ur_O(1TOBER, 2017 personnlly rmne be@Ire me, Alan Ilavlic mrd Juno f tilterney to me known to bo lite individuals and officers oftlw OLD REPUBLIC Sl1RNTY COMPnNY who executed ilia nbave instrument, and they cacti acknuwledgcd ilia execution of tlrc-sanic, and being by me duly sworn, did severally dclwsc and say; that Way are.11re said officers of Ilio cotparalion nforesuid, and that Elio sent affixed to the above instrument is ilia seal of the corporation, Lind that said cotpnmto seal and their signatures as such officcis were duly atiixcd and subscribed to Ibo said instrument by the authority of the bueril ofdlrcelnrs of said corporation. t 41— �a;?r Nnlofy PIG My conmrissin:i expires: 9128/2018 CL [l'fIN1CA'1'F. (Explratlon of pdiary cemnlsslon done not lnunildale this Inst(ument) 1, the undersipncd, assistant scc:i-dary of the OI.D RIiPUBI.I(: SURE'T'Y COMPANY, n Wisconsin corporation; CE11:1, IFY that the foregding and attached Puwar orAlutmey rmtairs in full foreeand leas not txen ruvoke�el; and fortltennurc, that lite Resolutions rit Ilia board ofdircctbrs set foiIlt iu rho PnivuofMtornay, are now bt Grace, Sil:tied;mdsealetiatihoCltyufAtnoktiehk,WI Ihis day 91' • SVAL � r 115},yI3151 Scxl •r�fy l/ 13 mid No. --_-- -- _ — - -- t31 L) 130N U '1ite American Institute of Architects, A]A Document No. A310 (Febmary. 1970 Edition) KNOW ALL MEN BY THEISE PRESENTS, that w -c AUS Security as Principal hereinafter called the Principal, and Old Republic a corporation dulyorganized under the laws of the state of Wl — _ _ �as Surety, ltercinaRcr called the Surety tire held and finttly hnund unto Clly of Sebastian FL tis t7bllgCG, hL,t'ClntlflCi' called the Obliycc, in the sutra of Five par cent of bid Dollars ($ 5% ), for the pa)nnent of which sunt well and truly to be wade, the said Principal and the said Surety, bind ourselves. our heirs, executors, administrator, successors and assigns, jointly and severally, firmly by these presents. NHEPLEAS, the Principal has submitted a bid for Sebastian Municipal Airport Security Cameras NOW, THEREFORE, if the Obligec shall accept the bid of the Principal and the Principal Shell enter- into a Contrttct with (lie Obligee in accordance With the terns of sttcln hid, and give such bond or- bonds is may be specified in the bidding or Contract Documents with good and Sufficient surety fol• the faithful performance of such Contract and for the prompt payment of labor and inateripil furnished ill the prosecution thereof. or in the event of the failure of the Principal w enter such Contract and give such bond or fronds, if the Principal shall pay to the 0b1igCC tllz differetneC not to exceed the penalty hereof between the amount specified in said hid and such larger amount for %vilich the Obligee may in guod faith contract With another party to perforttt the Work covered by ,aid bid, then this obligation shall be null and void, otherwise (o remain in hill force tend effect. Signed and sealed this 2/15/20111 _ Il'itucs (-MSC: 21',9 (51991) . .--- day of ADS Security...- .- (Seal) 011 By:_ �� i`fitatet'fitlr Oki t 2public Surety ComR29y "Surety (Scat) 13 --- _ - - Atturncy-in-Eitel 138 of 189 WORK ORDER AND SERVICES AGREEMENT THIS AGREEMENT made this 101h day of JANUARY , 2098, by and between the CITY OF SEBASTIAN, a municipal corporation of the State of Florida, 9225 Main Street, Sebastian, Florida, 32958, ("City") and ADS SECURITY ("Contractor."), set forth that WHEREAS, the City desires to engage a Contractor who has special and unique competence in the sale and installation of a security camera, video recording and video monitoring software system suitable to the needs of Sebastian Municipal Airport; and WHEREAS, the Contractor represents that it has such competence and experience in providing these services; and WHEREAS, the City in reliance on such representation has selected the Contractor in accordance with the requirements of law; and WHEREAS, the City and the Contractor desire to reduce to writing their understanding and agreements on such; IT IS, THEREFORE, AGREED as follows: 1. TERM. This Agreement shall commence on the day it is executed by both parties and the term of the Agreement shall extend until the Project is complete. 2. AGREEMENT DOCUMENTS. The Agreement Documents (also called CONTRACT DOCUMENTS) consist of this Agreement, Supplemental Agreement(s), Specifications, Change Orders, Addenda if any, any other documents listed in the Agreement Documents, and written modifications issued after execution of this Agreement, if any. (a) Intent, The Specifications are an integrated part of the Contract Documents and as such will not stand alone if used independently. The Specifications establish minimum standards of quality for this Project. They do not purport to cover all details of performing the Work. The intent of the Agreement Documents is to set forth requirements of performance, type of equipment and structures, and standards of materials and construction, It is also intended to include all labor and materials, equipment, and transportation necessary for the proper execution of the Work, to require new material and equipment unless otherwise indicated, and to require complete performance of the Work in spite of omission of specific reference to any minor component part and to include all items necessary for the proper execution and completion of the Work by the Contractor. Performance by the Contractor shill be required only to the extent consistent with the Agreement Documents and reasonably inferable from them as being necessary to produce the intended results. 139 of 189 (b) Entire and Sole Agreement. Except as specifically stated herein, the Agreement Documents constitute the entire agreement between the parties and supersede all other agreements, representations, warranties, statements, promises, and understandings not specifically set forth in the Agreement Documents. Neither party has in any way relied, nor shall in any way rely, upon any oral or written agreements, representations, warranties, statements, promises or understandings not specifically set forth in the Agreement Documents. (c) Amendments. The parties may modify this Agreement at any time by written agreement. Neither the Agreement Documents nor any term thereof may be changed, waived, discharged or terminated orally, except by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. (d) Construing Terms. This Agreement shall not be construed against the party who drafted the same, as both parties have obtained experts of their choosing to review the legal and business adequacy of the same. 3. EMPLOYMENT OF CONTRACTOR. The City hereby agrees that it may engage the Contractor and the Contractor hereby agrees to perform professional services for the City by selling and properly installing security cameras, video monitors, monitoring software and licensing, fiber optic cable and connections, and gate access controllers which shall be erected at Sebastian Municipal Airport, Sebastian, Florida, more specifically described in Exhibit "A", which is attached hereto and incorporated herein by this reference. 4. SPECIFICATIONS AND RELATED DATA. The intent of the Specifications, Work Orders and other Contract Documents is that the Contractor furnishes all labor and materials, equipment, supervision and transportation necessary for the proper execution of the Work unless specifically noted otherwise. The Contractor shall do all the work described in the Specifications and other Contract Documents and all incidental work considered necessary to substantially complete the Work ready for use, occupancy, or operation in a manner acceptable to the City. Any discrepancies found between the Specifications and site conditions, or any errors or omissions in the Specifications, shall be immediately reported to the City. The City shall promptly determine the validity and seriousness of the claimed condition and correct any such error or omission in writing, or otherwise direct Contractor. Any work done by the Contractor after his discovery of such discrepancies, errors or omissions shall be done at the Contractor's risk. Any correction or errors or omissions in Specifications may be made by the City when such correction is necessary for the proper fulfillment of their intention as constrkied I)y City. Where said corrortion of errors or omissions, except as provided in thy: next paragraph helow, adds to the amount of work to ht, done by the Contractor, compensation for said additlunal work shall be negotintod be[ween th(. 2 140 of 189 parties and must be issued as a written change order before any such additional work is performed or no additional compensation shall be made. The fact that specific mention of any part of work is omitted in the Specifications, whether intentionally or otherwise, when the same usually and customarily required to complete fully such work as is specified herein, will not entitle the Contractor to consideration in the matter of any claim for extra compensation, but the said work must be installed or done the same as if called for by the Specifications. All work and material usual and necessary to make the Work complete in all its parts, whether or not they are indicated or mentioned in the Specifications, shall be furnished and executed the same as if they were called for by the Specifications. The Contractor will not be allowed to take advantage of any errors or omissions in the Plans and Specifications. The City will provide full information when errors or omissions are discovered. 5. COMPENSATION. The City will pay the Contractor the flat amount of $ for performance of the Work hereunder. Claims. Claims arising from changes or revisions made by the Contractor at the City's request shall be presented to the City before work starts on the changes or revisions. If the Contractor deems that extra compensation is due for work not covered herein, or in Supplemental Agreement, the Contractor shall notify the City in writing of its intention to make claim for extra compensation before work begins on which the claim is based. If such notification is not given and the City is not afforded by the Contractor a method acceptable to the City for keeping strict account of actual cost, then the Contractor hereby waives its request for such extra compensation. The City is not obligated to pay the Contractor if the City is not notified as described above. The Contractor may refuse to perform additional work requested by the City until an appropriate agreement is executed by the parties. Such notice by the Contractor and the fact that the City has kept account of the costs as aforesaid shall not in any way be construed as proving the validity of the claim. 6. RELEASES. When it is determined, as a result of a joint inspection of the Work by the Contractor, City, and Project Manager that the Work has been completed in accordance with the terms of the Contract Documents, the Project Manager shall certify completion of the Work to the City. At that time, the Contractor may submit the Contractor's final request for payment. Prior to final payment, the Contractor shall execute and deliver to the City a Contractor's Affidavit and Release of Claim for all claims against the City arising under or by virtue of the work order. Also, each request for payment must have a Claimant's Sworn Statement of Account, executud by the supplier or subcontractor, attached from each supplier or subcontractor who has notified the City of his right to file a Claim (Notice to City) or who is listed in the Contractor's Affidavit and Release of Claim as an unpaid potential Claimant. 9 141 of 189 7. PROJECT SCHEDULES. The Contractor shall perform the services outlined under Paragraph 3 of this Agreement in a timely manner consistent with the assignment schedules as mutually agreed upon by the City and the Contractor. No extension of time shall be valid unless given in writing by the City. No monetary compensation shall be given for such delay. A delay beyond the Contractor's control occasioned by an "Act of God" may entitle the Contractor to an extension of time in which to complete the Work as determined by the City provided, however, the Contractor shall immediately give written notice to the City of the cause of such delay. "Rain day" extensions shall be granted upon written request of the Contractor to the City's Project Manager when said Project Manager determines that weather conditions make it counterproductive to work on said days. "Rain day" requests must be submitted at the end of each work week or be waived, and the cumulative "rain day" extensions granted shall be processed as a Change Order with each pay submittal. The City shall have the authority to suspend the Work wholly or in part, for such periods as may be deemed necessary and for whatever cause, by serving written notice of suspension to the Contractor. In the event that the Project Manager shall become aware of any condition which may be cause for suspension of the Work, the Project Manager shall immediately advise the City of such condition. The Contractor shall not suspend operations under the provisions of this Paragraph without the City's permission. In the event that the City suspends the Work, the Contractor shall be granted an extension of time to complete the Work for as many calendar days as the Work was suspended; except, however, that the Contractor will not be granted an extension of time to complete the Work if the suspension was caused by a fault of the Contractor. 8. TERMINATION OF CONTRACT WITHOUT CAUSE. This Agreement may be terminated by the City without cause provided at least five (5) days written notice of such termination shall be given to the Contractor. In the event the City without cause abandons, terminates or suspends this Agreement for greater than thirty clays, the Contractor shall be compensated for services rendered up to the time of such termination on a quantum mere€t basis and any work done by the Contractor shall remain the property of the City. 9. CITY'S PROJECT MANAGER. City shall designate a Project Manager. All work done shall be subject to the review of the Project Manager and City. Any and all technical questions which may arise as to the quality and acceptability of materials fern€shed, work performed, or work to be performed, interpretation of Specifications and all technical questions as to the acceptable fulfillment of the Contract on the part of the Contractor shall be referred to the Project Manager who will resolve such questions. All materials and each {part or detail of the Work shall be sulajort nt all times to construction review by the Prujera Manager and tho 0ity. Such r,nns:ructicm review mtly includo shop Inspection, and any I1 142 of 189 material furnished under the Specifications is subject to such inspection. The Project Manager and the City shall be allowed access to all parts of the Work and shall be furnished with such information and assistance by the Contractor as is required to make a complete and detailed review. The City shall not be responsible for the acts or omissions of the Contractor. 10. CONTRACTOR'S DUTY. Contractor shall supervise and direct the Work, using Contractor's best skill and attention, Contractor shall be solely responsible for and have control over construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work under this Contract, unless the Contract Documents give other specific instructions concerning these matters. Unless otherwise provided in the Contract Documents, Contractor shall provide and pay for building permits (if required), labor, materials, equipment, tools, construction equipment and machinery, utilities, transportation, and other facilities and services necessary for the proper execution and completion of the Work, whether temporary or permanent and whether or not incorporated or to be Incorporated in the Work. Unless otherwise provided in the Contract Documents, Contractor shall pay all sales, use and other similar taxes. Contractor currently holds and shall maintain at all times during the term of this Contract all required federal, state and local licenses necessary to perform the Work required under the Contract Documents. 11. PERSONNEL. The Contractor represents that it will secure at its own expense all personnel and sub - Contractors required for services which are necessary as described under Exhibit "A" of this Agreement. All services described under Exhibit "A" of this Agreement shall be performed by the Contractor or sub - Contractor and all persons engaged in work under the Agreement shall be qualified to perform such services and authorized under federal, state and local laws to perform such services. Personnel who perform services under this Agreement shall not be employees of the City. All workmen must have sufficient knowledge, skill and experience to perform properly the work assigned to them. Any foreman or workman employed by the Contractor or subcontractors who, in the opinion of the City does not perform his work in a skillful manner, or appears to be incompetent or to act in a disorderly or intemperate manner shall, at the written reauest of the City, be discharged immediately and shall riot be employed again in any portion of the Work without the approval of the City. The Contractor shall at all times be responsible for the conduct and discipline of his employees aridlor any subcontractor or persons employed by subcontractors. 12. PROTECTION OF PERSONS AND PROPERTY. 'I he Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work in 5 143 of 189 accordance with the U.S. Department of Labor Occupational Safety and Health Act and the laws of the State of Florida. This Contract requires that the Contractor and any and all subcontractors hired by the Contractor comply with all relevant standards of the Occupational Safety and Health Act. Failure to comply with the Act constitutes a failure to perform. The Contractor agrees to reimburse the City for any fines and/or court costs arising from penalties charged to the City for violations of OSHA committed by the Contractor or any and all subcontractors. The Contractor shall take all reasonable precautions for the safety of, and shall provide all reasonable protection to prevent damage, injury or loss to, all employees on the Work and all other persons who may be affected thereby; all the work materials and equipment to be incorporated therein, whether in storage on or off the project site, under the care, custody or control of the Contractor or any of his subcontractors; and other property on the project site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures and utilities not designated for removal, relocation or replacement in the course of construction. The Contractor shall perform any work and shall furnish and install materials and equipment necessary during an emergency endangering life or property. In all cases, he shall notify the Project Manager and City of the emergency as soon as practicable, but he shall not wait for instructions before proceeding to properly protect both life and property. The Contractor shall be held fully responsible for such safety and protection until final written acceptance of the Work. 13. CONTRACTOR'S RESPONSIBILITY FOR WORK. Until acceptance of the Work by the City, it shall be under the charge and care of the Contractor, and he shall take every necessary precaution against injury or damage to the Work by the action of the elements or from any other cause whatsoever, whether arising from the execution or from the non -execution of the Work. The Contractor shall rebuild, repair, restore and make good, without additional compensation, all injury or damage to any portion of the Work occasioned by any cause, other than the sole and active negligence of the City, before its completion and acceptance. Materials and equipment shall be stored so as to incur the preservation of their quality and fitness for the Work. When considered necessary, they shall be placed on wooden platforms or other hard clean surfaces, and not on the ground, and/or they shall be placed under cover. Stored materials and equipment shall be located so as to facilitate prompt inspection. 14. CLEANING UP. 'rhe Contractor shall at all times keep the premises free Froin accumulation of waste niaterials or rubbish caused by his employees or work. At the completion of the Work, he shall remove all his n ihbish, lools, scaffolding and surplus materials and shall leave his work "broom clean" or its equivalent, unless more exactly sp(xfied, and shall insure that all dehris and otlu>i unsightly objects are 6 144 of 189 removed and disposed of in a satisfactory manner. At no additional expense to the City, the Contractor will restore to their original conditions or better, as nearly as practicable, those portions of the site not designated for alteration and all such property, structure, utilities, landscaping, etc., disturbed or damaged during the prosecution of the Work. Final payment will be withheld until such clean up and repairs are completed The Work will be considered complete only after all debris and unused material due to or connected with the Work have been removed and the surrounding area left in a condition satisfactory to the City. In the event the City finds that the Contractor has not complied in keeping the job site clean, the City may, after twenty-four (24) hours written notice to the Contractor to correct the situation, elect to have the job site cleaned by an independent labor force. The cost of cleaning by said independent labor force shall be deducted from moneys due the Contractor. 15. SUBCONTRACTS AND ASSIGNABILITY. The Contractor shall not assign any interest in the work orders or this Agreement and shall not transfer any interest in the same without the prior written consent of the City. Any sub -contracts or other work which is performed by persons or firms other than the Contractor under this Agreement or any work orders shall have prior written approval of the City Manager. Any subcontracts or outside associates or Contractors required by the Contractor in connection with services covered by this Agreement or any work orders must be specifically approved by the City Manager. 16. INDEMNIFICATION. The Contractor shall indemnify and save harmless the City, its agents, subcontractors, servants, and employees from and against claims, liability, losses, or causes of action to the extent arising from any misconduct, negligent act, or omission of the Contractor, its agents, servants or employees in the performance of services under this contract. 17. COMPLIANCE WITH LAW. The Contractor expressly agrees to comply with all known laws and regulations relating to providing services under this Agreement. The failure of the Contractor to adhere to any known law or regulation pertaining to furnishing services under this Agreement shall constitute a material breach of this Agreement. 18. WAIVER. The waiver by the City of any of the Contractor's obligations or duties under this Agreement shafl riot constitute a waiver of any other obligation or duty of the Contractor under this Agreement. 19. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Florida and venue for any action }pursuant to the Agrooment DOCUnlents shall be in Indian River County, Florida. The parties hereto expressly waive trial by jury in any action to enforce or otherwise resolve any dispute 145 of 189 arising hereunder.. 20. CONSTRUING PROVISIONS. This Agreement shall not be construed against the party who drafted the same, as both parties have obtained experts of their choosing to review the legal and business adequacy of the same. 21. INSURANCE. The Contractor agrees to carry insurance, of the types and subject to the limits as set forth below and maintain said insurance during the life of this agreement: (a) Workers' Compensation - Contractor shall purchase workers' compensation insurance as required bylaw. (b) Commercial General Liability - Contractor shall purchase Commercial General Liability insurance with a combined single limit of at least $1,000,000. (c) Commercial Auto Liabilitv - Contractor shall purchase Commercial Auto Liability insurance with a combined single limit of at least $1,000,000. Further, Contractor shall maintain such insurance as is reasonably required to satisfy its obligations for the Work paid for by the City but not yet accepted. The insurance company selected shall be A+ or better per the Best's Key Rating Guide. The Contractor and the insurance company(s) shall agree to furnish the City thirty (30) days written notice of their intent to cancel or terminate said insurance. It is the full responsibility of the contractor to insure that all sub -contractors have full insurance coverage as stated above. The Contractor shall not commence the Work under this contract until he has obtained all the insurance required under this paragraph and certificates of such insurance have been submitted to the City, nor shall the Contractor allow any subcontractor to commence work on his subcontract until all insurance required has been so obtained and approved by the City. The Contractor shall carry and maintain until acceptance of the Work, insurance as specified herein and in such form as shall protect hirci and any subcontractor performing work under this Contract, or the City, from all claims and liability for damages for bodily injury, including accidental death, under this Contract, whether by himself or by any subcontractor or by any one directly or indirectly employed by either of them. The Contractor shall furnish to the City certificates of insurance in duplicate showing proof of insurance, naming the City as an additional insured party, prior to the start of construction as provided in the Contract. 22, GUARANTEE. The Contractor shall warrant all equipment furnished and work performed by him for a period of one (1) year for Darts and labor, and three (3) years extended warranty on parts from the (late of final writtt,n acceptance of the Work by City. All egmpment and niatorial wsirr:inties or guarantees shrill i3 146 of 189 be drawn in favor of the City and the originals thereof furnished to the City for review and acceptance prior to final payment. Such guarantee shall in no way limit or relieve the Contractor of liability from subsequent claims of beach of contract due to substandard materials or workmanship, nor shall such warranty period shorten the statute of limitations for bringing a breach of contract or other action based upon any such deficiencies. Any materials, equipment or work which do not satisfactorily meet the Specifications may be condemned by the City by giving a written notice to the Contractor. All condemned materials, equipment or work shall be promptly taken out and replaced. Any defective work whether the result of poor workmanship, use of defective materials, damaged through carelessness or from other cause shall be removed within ten (10) days after written notice is given by the City, and the work shall be re -executed by the Contractor. The fact that the City may have previously overlooked such defective work shall not constitute an acceptance of any part of it. Should the Contractor fail to remove rejected work or materials within ten (10) days after written notice to do so, the City may remove them and may store the materials and equipment. The making of the final payment by the City to the Contractor shall not relieve the Contractor of responsibility for faulty materials or workmanship. The City shall promptly give notice of faulty materials and workmanship and the Contractor shall promptly replace any such defects discovered within two (2) years from the date of final written acceptance of the Work by the City. 23. PUBLIC RECORDS FORM Contract Name: SEBASTIAN MUNICIPAL AIRPORT CAMERA SECURITY SYSTEM UPGRADE Project Description: REPLACE SECURITY CAMERAS. RECORDERS, VIDEO MONITORING, SOFTWARE AT SEBASTIAN MUNICIPAL AIRPORT AND AIRPORT ADMINISTRAION BUILDING: AND ADD NEW GATE ACCESS CARD READER CONTROLLERS FOR GATE 4 AND 21. In accordance with (lie requirements of Chapter 119 Florida statutes, as amended, the contract between the City of Sebastian and the Contractor shall require the contractor to: a) Comply with the public records law of the State of Florida, as the same may be amended from time to time. b) Keep and maintain public records that ordinarily and necessarily would be required by the City in order to perform services, and C) Provide the public with access to public records on the same terms and conditions that the City would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law, and e) Meet all Mquirements of retaining public., records acid transfer, at no cost, to the City all public records in possession of the contractor upon termination of the contact and destroy rrny drrplicatC! of rhlic records that art, exonipl or confidential and exempt from public records disclosure requirements. All D 147 of 189 records stored electronically must be_.provld_d to the City in a format that is compatible with the information technology systems of the U Authorized Signature: -�•' .-: pate; Print .%�*.rte / rr�,Title: L)1xf f �r Company/Firm: r IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed, the day and year First above written. ATTEST (SEAL); Jeanette Williams, MMC City Clerk Approved as to form and legality for reliance by the City of Sebastian only: Cynthia v. Hall, Interim City Attorney ------------------------CONTRACTOR----- Signed, sealed and delivered in the presence of: THE CITY OF SEBASTIAN By: Joseph Griffin City Manager Contractor Name:_- g _. -.. Name: tVartle: Trtle: 148 of 189 DRBA CERTIFICATE OF LIABILITY INSURANCE I °AT8iti20 � ' THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder in Ileu of such endorsoment(s). CONIACT PRODUCER (615) 369.1500 VAME: Barbara Drelbelbis CIC Brown & Brown of Tennessee, Inc. c"Em, Extl:(615) 369-1518 FAX, No): {615) 385-8360 6 Cadillac Drive, Suite 200 ADDRESS: bdreibelbis(ftlatennessee.com Brentwood, TN 37027 PRODUCER CUST._QJER ID t11ADSSECU-03 INSURER(S) AFFORDING COVERAGE _ _ _ _ NAIC_ N INSURED ADS Security L.P. - INSURERA:Scottsdale Insurance Compare _ — 141297 3001 Armory Dr #100 NSURER a:Harleysville Preferred Insurance Company 35696 Nashville, TN 37204- INSURERc:Bridgefleld Casualty Insurance Company 10335 INSURER D: INSURER E: INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE -- - �ADDGgFJbR lN I POLICY NUMBER GENERAL LIABILITY 1 POLICY EFF I PMIDOy, Y I lMM1DD/YYYY) IMMIUD7YYYY1 ' �AFIA _ LIMITS T - EACH OCCURRENCE I$ 1,000,00M .— n I A XTO GENERAL LIABILITY NCS0001128 s1u2D17 8111201$ a�ETa 11i:RTE� .._t F AGM (Ea oeeureact) __. _ I S 100 90 idhle'RCIAL l i CLAIMS -MADE I^ I OCCUR I MEDEXP(Arryonepersan} S Exclude F_x Errors&Omissions I I PERSONAL IL ADV INJURY S - 1,000,000 I X ``Contract. Liability j GENERALAGGREGATE _ S 2,000,000 GENL AGGREGATE LIMIT APPLIES PER: --i I ;PRODUCTS - COMPIOP AGG --- -- -_ S - 2,000,000 1.'g POLICY PF F.... i LOC L.. AUTOMOBILE LIABILITY I I I COMBINED SINGLE LIMIT S 1,000,000 B k X ANY AUTO �BAOOOD0084977T 8/112017 8/1/2018 (Ea ocdaant}_ BODILY INJURY (Per person) S r- Al L OWNER AUTOS I BOD LY INJURY (Per accidony�.S.... — — . L SCHELNJLEDAUTOS, j PROPERTY OA'JIAGf Y I S — HIRED AUTOS I l 4 (Pet accoanl) _ j h0!.•OWNcD AUTOS -- — I I I S UMBRELLA LIAO( r)CCL'R D,o EACHOCCURREt:cE $15,0000 _ _ _ . _ I E%CESSLIAB I:IAIA!S-MAOe A X N NXS0003299 $r112D17 I $x112018 AGGREGATE s 15.000,000 �--- — – -- -- – OEDUCTIBLE l s �� 4E:ENTIO!i 5 I S WORKERS COMPENSATION I LIABILITY X0196394090100 'AIC TATU- OTH• ; X ,&,TuTi I ER _ _ AND EMPLOYERS' C ANY PROPRIFTO4MARTNFAIEXFCUTIVE YIN + 8/112017 81i/201$ I EL EACH ACCIDENT S 1,000,000 _ _. __- OFF:CFROEMEER EXCA UDEO1 � I N I A (Mandalory in Nil) I E.1. DISr-ASE • EA EMPLOYFq $ 1,000,000 - .—.--- — - uzes,descibeurWor DESCRIPTION OF OPI•RATIONS below T 1,OD0,000 L.L DISEASE - POLICY LIMIT S I B ,Automobile Liability (KY & MS) BA00000091\16791 I 8/112017 811/2018 Combined Singlo Llmlt 1,000,000 B Automobile Liability (FL) BA00000092766Z 811/2017 I 81112018 'Combined Single Limit 1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, V more space ie required) See attached page. M CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ADS Security ACCORDANCE WITH T}IF POLICY PROVISIONS. 3001 Armory Drive Ste 100 Nashville, TN 37204- AIIiHQR1ZED REPRESEN rA 11VF LP 1988-2009 ACORD CORPORATION, All rights ro:,(ovori. AGORI I 2!i (2H09109) +tut A,' ORD mime anti lope are rcylstered marks of ACORD 149 of 189 rn 00 0 0 CITY OF SEBASTIAN BID TABULATION Bid 18-01 Sebastian Municipal Airport Security Cameras Sid Open: Thursday, February 15, 2018 CONTRACTOR Atlantic Smart Technologies, Vero Beach, FL 80,934.09 r2 ADS Security, West Melbourne, FL 76,628.00 13 4 5 6 7 8 9 10 CID CF SE ST��V HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL Council Meeting Date: 28 March 2018 Agenda Item Title: Stormwater Utility Fee Recommendation: Set Date for Public Hearing — Stormwater Utility Fee Backeround: On 14 March 18, Council directed the termination of the `Earth Embankment Design' project with DMC. With that termination, and the conclusion that the Southern Canal System is an integral part of the City's Stormwater System, a closer analysis of future Stormwater funding requirements was begun. Below is a list of `near term' City Stormwater requirements and engineering estimates: 1. Elkcam, George, Schumann seawall repair/replace: $16,000,000 2. Stonecrop Culvert: S1,186,137 3. Ocean Cove $377,480 4. Day Drive $241,000 5. Schumann Pipe Lining $200,000 6. Pelican Island Place $475,000 7. Maintenance additions (5 + 1 Engineering Tech) $300,000/yr Those numbers total almost $19M. Considering a multi-year phasing of projects and possible grant awards, the total could be an additional $1.0M yearly obligation to the Stormwater Utility Fund. In addition, consider that the above projects are identifiable at this time. The City's infrastructure is aging, therefore, new projects could easily be added that are not readily apparent today. The solution to a possible funding crisis with the Stormwater Utility is to raise the fee. The current fee has been in place since 2012, well before the current Stormwater issues have manifest themselves. The Manager's recommendation is to double the current fee. Contingent upon Council direction, the process to increase the Stormwater Utility Fee is to conduct a Public Hearing after notice of said meeting is sent to every residential, and commercial, unit within the City of Sebastian. That hearing would be scheduled for 9 May 2018. Administrative Services Department/CFO Review: CAf Attachments: 1. Hoyle/Tanner Seawall Assessment 2. Stormwater Master Plan Drainage Map — 2013 City Manager Authorization: % Date: 20 March 2018 151 of 189 THE CITY OF SEBASTIAN SEAWALL ASSESSMENT 0n`F SEBI STIA HOME OF PELICAN ISLAND AUGUST 26, 2015 HOYLE, TANNER, & ASSOCIATES 95 E. Mitchell Hammock Road Suite 200 Oviedo, FL 32765 152 of 189 THE CITY OF SEBASTIAN SEAWALL ASSESSMENT TABLE OF CONTENTS Introduction Background Information and Terminology Preliminary Assessment Field Assessment Agency Coordination Conclusions — Remedial Options Appendix A: Property Spreadsheets Appendix B: Geotechnical Report Appendix C: Canal Typical Sections Survey Appendix D: Surveys of Joy Haven Homes 1 1 5 5 9 9 11 40 58 62 153 of 189 Introduction The City of Sebastian (City) engaged Hoyle, Tanner & Associates, Inc. (Hoyle, Tanner) to perform a preliminary assessment of seawalls of nearly 7 linear miles of canal and waterway along the South Collier and George Street Canals and the Schumann and Elkham Waterways. Visual observations were performed in June 2015. Over the length of canal observed, approximately 61,000 linear feet of seawalls and sloped banks were assessed to determine the materials utilized for construction and their current condition. It was observed that about 38% of the assessed banks did not have a seawall. However, of the existing seawalls, there were 8 different materials utilized for earth retention. The most common materials observed were concrete caps with transite walls or metal caps with metal walls. The other materials observed were wood, vinyl, and rip rap bags placed at the waterline. Many of the seawalls were supplemented by earthen berms located at the toe, or bottom, of the wall. It was also observed that, in general, property parcels with heavy vegetation surrounding the wall had seawalls that were in good condition. Overall, the majority of the seawalls appeared to be in a condition rating of "Fair" or better. The goals of the seawall assessment were: 1. To tabulate parcel information and property owners 2. To assess and document the existing materials and conditions of the seawalls 3. To coordinate with applicable local, state and federal agencies regarding environmental impacts 4. To provide conceptual repair and/or stabilization options and recommendations 5. To prepare conceptual estimates of probable construction costs and timeframes for action Following is a detailed assessment of the seawall and sloped banks including property parcel information, environmental agency coordination, condition ratings, soils evaluation, survey validations, and recommendations for remediation of observed deficiencies. Background Information and Terminology For the purpose of this study, the definition of a seawall is a structure that provides shoreline protection against erosion and retains soil. The following additional terminology is defined below in order to assist in the understanding of this study. • Cap: Box structure which ties seawall together at the top. • Concrete/Metal: Refers to a seawall that has a concrete cap and metal wall. • Concrete/Transite: Refers to a seawall that has a concrete cap and a transite wall. • Conerete[Vinyl: Refers to a seawall that has a concrete cap and vinyl wall. • Earth Berm: Ground or soil which supports toe of the wall at the bottom. • Erosion: The process in which soil from behind the seawall is worn away. 154 of 189 • Metal/Metal: Refers to a seawall that has a metal cap and metal wall. • Rip -Rap: Large sized stone or bags placed at the toe of the wall to stabilize its position and reduce erosion. • Transite: Cement -based material that contains either asbestos or crystalline silica. • Weep Holes: Drilled holes in seawall above the water line to facilitate drainage and equalization of water pressure on both sides of the wall. • Wood/Metal: Refers to a seawall that has a wooden cap and metal wall. The following explanations are types of failures that were observed during this study. • Cracking: Defined as visible cracks (hairline or otherwise) appearing on either the wall itself and/or the cap. Cracking is further categorized as being either minor or major. See Figures I and 2. Figure 1: Major Cracking 2 155 of 189 'A t 1?RAN A L Figure 2: Minor Cracking in Cap • Joint Separation: Defined as a gap or separation of 2 segments of seawall disconnecting either the walls and/or the caps. See Figure 3. Figure 3: Joint Separation 3 156 of 189 • Tie Back or Seawall Cap Failure (Tipping): Defined as when the tie back rod and/or cap loses its ability to keep the seawall vertically aligned, thereby, causing the top of the seawall to tilt forward. See Figure 4. - 7 Figure 4: Tipping • Toe and Berm Failure: Defined as when the toe, or bottom, of the seawall bulges. This is usually caused by a lack of toe embedment or loss of supporting berms and can lead to cap rotation and cracking. See Figure 5. Figure 5: Toe and Berm Failure N 157 of 189 Preliminary Assessment Per the Scope of Services agreed upon by the City and Hoyle, Tanner, the preliminary assessment consisted of obtaining property parcel information and preparing a spreadsheet which documented property owners along the canal/waterway. Parcel and property owner information was obtained through the Indian River County's Property Appraiser's website. Data identifying parcel number, property owner, address, and length of property bordering the waterway was tabulated into a Microsoft Excel spreadsheet. See Appendix A for detailed property spreadsheets. Field Assessment a. On -Site Assessment The seawall system, which refers to the existing seawall and sloped banks, was evaluated for each parcel. Seawall materials for the various walls were noted and summarized in Table 1 which provides the percent breakdown of seawall materials that were observed. Figure 6, shown below, illustrates these percentages. As shown, Concrete/Transite and Metal/Metal seawalls were most commonly found. However, some lots utilized wood, ConcreteNinyl, and even Rip Rap bags placed at the waterline. Seawall materials were fairly consistent for each street or long stretch of canal and did not change frequently from one house to the next. Table 1: Breakdown of Seawall Material Type of Material Used Percentage No Seawall (Only Earth Berm) 37.54% Concrete/Transite 30.29% Metal/MetaI 27.81% Concrete/Metal 2.16% Rip Rap Bags at Waterline 1.68% f ConcreteNinyl 0.26% Wood Seawall 0.13% Wood Pilings 0.13% Wood/Metal 0.13% k, 158 of 189 27.31'', 1. L:J 30.29°•,, 7. ,� 11 Y NO sea'Nall ■ ConcretzJTraniite V McOI/Metal ih concrete/metal ■ Rip Rip ria,vs Concrete/Viny. ■ W1)!:;u 1-- Ivjali K'Nood Pilingi ■ Wood/Metal Figure 6: Seawall Materials Seawall segments were assigned an overall condition rating of either good, satisfactory, fair, poor, or failing. Table 2 below summarizes the results of each seawall material and their respective condition ratings. Table 3 identifies the percentage of lots evaluated based on the condition rating and recommends a time frame for remedial action. It was observed that a small percentage of lots (less than 3%) will require a restorative action within 0-2 years of the date of assessment (See Table 4). Please note that at least two homes within Table 4 are believed to have seawalls located on private property and would not be the responsibility of the City to provide restorative action. These lots may also need immediate stabilization as a severe environmental event, such as a hurricane, may result in damage to or a loss of property for the property owner. In addition, approximately 5% of the lots assessed will require action within a 2-4 year time frame. Thus, among the 602 parcels evaluated, nearly 92% received an overall condition rating of "Fair" or better and do not require immediate attention. This is further illustrated in Figure 7. Table 2: Breakdown of Seawall Material and Respective Condition Ratings Material Percent of Failing Poor Fair Satisfactory Good Linear Footage No Seawall* 37.54% - - - - - Concrete/Transite 30.29% 3.63% 7.11% 67.64% 16.84% 4.77% Metal/Metal 27.81% 0.47% 0.47% 4.16% 36.59% 58.31% + Concrete/Metal 2.16% 24.06% 12.03% 45.86% 18.05% 0% j Rip Rap Bags* 1.68% - - - - - Concrete/Vinyl 0.26% 0% 0% 0% 100% 0% C Wood Seawall* 0.13% - - - - - Wood Pilings 0.13% 0% 0% 0% 100% 0% Wood/Metal 0.13% 0% 0% 100% 0% 0% *Note: Dashes (-) indicate that no rating was given for those observed lots on 159 of 189 Table 3: Overall Condition Ratings of Seawalls Rating Percentage Remedial Action Needed Failing 2.96% 0-2 years Poor 4.94% 2-4 years Fair 37.78% 4-10 years Satisfactory 27.16% 10-15 years Good 27.16% 15-20 years ,. 3 7.73' F-iding ■ Poor ■ Fair *- Satisfactory ■ Goad Figure 7: Overall Condition Ratings *Through the City's investigation/research it is believed that the seawalls associated with these homes are on private property and have a 20' drainage easement granted to the City along the back of the homeowners property. 7 160 of 189 Table 4: Parcels Listed as "Failing" Parcel Number Address Lot Dimension Rating 31382500001363000008.0 243 Joy Haven Drive 80 ft. 1 31382500001363000038.0 443 Joy Haven Drive 80 ft. 1 31382400001299000004.0 1119 George Street 160 ft. 2 31382400001299000007.0 1137 George Street 80 ft. 2 31382400001299000015.0 1179 George Street 80 ft. 2 31382400001299000033.0 1261 George Street 80 ft. 2 31391800002417000013.0 862 Schumann Drive 100 ft. 2 31391800002417000014.0 868 Schumann Drive 100 ft. 2 31391800002417000015.0 874 Schumann Drive 96.24 ft. 2 31391800002417000005.0 Confidential (Bailey Drive) 116.8 ft. 2 31391800002417000006.0 807 Bailey Drive 50 ft. 2 31391800002417000008.0 819 Bailey Drive 50.32 ft. 2 Note: Lots given a rating of 1 or 2 out of 10 were considered "Failing" *Through the City's investigation/research it is believed that the seawalls associated with these homes are on private property and have a 20' drainage easement granted to the City along the back of the homeowners property. 7 160 of 189 Information gathered through the Indian River County's Property Appraiser's website shows that the seawalls were installed sometime between 1985 and 1990, making the seawalls 25-30 years old at the time of assessment. Research shows that concrete seawalls have a typical lifetime of 30+ years, if properly maintained. Similarly, metal seawalls have an average lifetime of 25+ years. Vinyl or plastic seawalls are relatively new and economical with a service life of 50+ years, making vinyl a viable option for seawall replacement. The North Collier Canal's seawall system was replaced in 20I 1 with vinyl. Regular seawall maintenance is a key factor in maximizing the service Iife of a seawall. Waterfront property owners should follow these guidelines in order to prolong the useful life of a seawall and, thereby, minimize repairs needed. • Refrain from placing anything but grass for at least 6 feet behind the cap. Stones or mulch allow water to drain more readily behind the wall, reducing hydrostatic pressure. • Avoid the placement of large trees adjacent to the seawalls as the root systems can cause damage to the earth backfill or seawall itself. • Sprinkler heads should be located a minimum of 6 feet behind the cap to minimize water intrusion behind the wall, particularly from failed or leaking heads which can cause localized failures. • Avoid the use of heavy equipment traveling along the seawall perimeter in order to reduce pressure on the seawall, • When using a boat, obey all posted speed signage to avoid damage which can be caused by excessive wakes. b. Soils Evaluation A soils investigation was completed at three separate locations within the waterway. Each location was probed to a depth of 15 feet below the bottom of the canal, Water elevations were also taken at each location. It was determined that the top 24" of soil will be classified as unsuitable material for backfill either with sloped banks or seawall construction. Materials suitable for use in the construction of sloped banks and seawalls were encountered between a depth of two and ten feet below the bottom of the canal system. This amount of available material will be adequate for the construction of sloped banks and/or new seawall construction. For the sloped banks option, it may be necessary to construct a clean fill "cap" of approximately one foot over the dredged material for stability and potential odor suppression. See Appendix B for the Geotechnical Report. c. Survey Validation Surveys were taken at 3 locations on July 24, 2015. The first location was on the George Street Canal at 931 George Street and 748 Holden Avenue. The second location was on the Schumann Waterway at 146 Mabry Street and 133 Admiral Circle. The final location that was surveyed was on the Elkham Waterway at 432 Concha Drive and 325 Joy Haven Drive. See Appendix C for detailed cross-sections of survey data. 161 of 189 Agency Coordination Hoyle, Tanner met with the St. John's River Water Management District (SJRWMD) on August 4, 2015 to discuss potential environmental impacts and permitting requirements associated with the seawall recommendations listed below. Discussions with the St. Johns River Water Management Staff indicated there are possible funding opportunities available to the City at a 50/50 match but would need to be programmed in advance by the Staff for consideration. The earliest consideration for funding opportunities would be the 2016 funding year. Conclusion - Remedial Options Prior to beginning any action, we recommend a detailed survey be accomplished for the waterway system to determine the location of each seawall and whether the seawalls are on City or private property. Research has shown that the seawalls for at least three homes on Joy Haven Drive, and possibly more, lie on private property and would be the responsibility of the property owner to provide repair and/or maintenance to their seawalls. Based on our evaluation of the existing waterway system, the condition of the seawalls, and the existing seawall materials, three separate options are being presented for remedial action. Option 1: A new seawall will be built in front of the existing seawall. The new seawall will be constructed using a concrete cap and vinyl sheet piling. Vinyl is both cost effective and has a service life of 50+ years. The estimated cost for this option is $425.00 per linear foot (LF). This option will not require permitting from the Department of Environmental Protection (DEP). Discussions with the SJRWMD indicated that a permitting exemption under F.A.C. 62-330-051 would be available if the new wall were constructed within close proximity of the existing wall, usually within two feet. Option 2: The existing seawall will be removed and replaced with a new seawall. The new seawall will be constructed using a concrete cap and vinyl sheet piling. The estimated cost for this option is $500.00/LF, however existing Concrete/Transite seawalls will require an additional $300.00/LF for asbestos removal and disposal. This option will require permitting through DEP for the removal of existing Concrete/Transite seawalls. Discussions with the SJRWMD indicated that an exemption for permitting would be available if the new wall were constructed within close proximity, usually within two feet, of the initial wall location. Option 3: The soil will be dredged and refilled over top of the existing seawall. The estimated cost for this option is $400.00/LF and would include dredging of the existing canal, disposal of unsuitable materials from the dredging, clean backfill, and landscaping. This option will not require permitting from DEP. Initial discussions with the SJRWMD indicate that wetlands permitting will be required for this option but the level of mitigation would need to be negotiated. Dredging of the canal system would require permitting as well. Costs associated with mitigation are not included in the unit costs per linear foot due to the unknown level of the mitigation effort. Some mitigation options could include removing nuisance vegetation, such as Brazilian pepper, and replanting mangroves. 9 162 of 189 Table 5: Estimated Cost Projections for each Option by Year of Suggested Completion Year Option 1 2 3 2017 $456,178.00* $738,688.00* $429,344.00* 2019 $662,230.75* $1,151,305.00* $623,276.00* 2025 $5,922,064.75 $10,411,249.00 $5,573,708.00 2030 $4,187,469.75 $5,811,927.00 $3,941,148.00 2035 $4,610,829.25 $5,689,879.00 $4,339,604.00 Total Cost $15,838,722.50 $23,803048.00 $14,907,080.00 Cost projections listed in Table 5 are based on the City evaluating the entire Canal Waterway system as a whole. Individual parcels' seawall repairs and replacements may be the responsibility of the property owner (See Appendix A for estimated costs associated with each property). *The City contracted a licensed surveyor to verify the property lines for three residents along the Elkcam Waterway adjacent to Joy Haven Drive. The professional survey identifies the seawalls at the three properties of 197, 219, and 243 Joy Haven Drive to be on private property and not within the City Elkcam waterway. See Appendix D for detailed survey data. 163 of 189 -DAVIS ST. BAFFLE BOX l G' INDIAN RIVER DR. STORM North ..I \ .,s.. DRAINAGE Iu.Ts. IMPROVEMENT #......,.. A - $2 MILLION aY` TWIN DITCHES LEGEND PROJECT ` COLLIER CANAL � ? ? EX. DRAINAGE SYSTEM v�o HARDY DAM II/ e-$1ooK __ PIPEIBAFFLE BOX V N. 512 ,i IMPROVEMENT I II ■ y DRAINAGE DETENTION I� 1,769 ACRES y , DRAINAGE IMPROVE ST. BASINI F , - MENT r I - ANNUAL MAINTENANCE - „ -.... 1 F - REPLACE CMP $200K G - QUARTER ROUNDS $250K H - BACKYARD DITCHES $1 MILLION V l I I l r Q - SEAWALL $1.5 MILLION � �1 ,m_ I I 1 E f DRAINAGE PIPE S. CR 512 4 P $100K l L 4,583 ACRES I I' RAINAGE PIP BLOSSOM � "` O - TWIN 48" DITCH PIPING -'I ° I ;J ��, \ $100K ; I MILLION }, D - $1 MILLION y, ; t ; DR }' ... ! � N - 3i - AINAGE C BASIN f i ?49 M .$250K STORM ,,.4 �._ <.� WATER _ \� ,r �, PARK�I Il j ' ` } DRAINAGE PIPING i� ' SCHUMANN f L-$500K r` /a II I'- PIPE P S if ` � _ CI I : STONECRO � ;.. ,, DREDGE SIN PIPI j I LLION j f i = J- $500K 1. 1 �}'� 1 k, 1 j`1111 ti I r - STONECROP PIPES & DITCH f ..�I 1 P�.. I II II OCEAi w.. s . CANAL �._ _ !i \ FUTURE i i ! BASIN I i WINKLE BASF I - $300K PERI j I - L Li III CLf 2013 - STORMWATER MASTER PLAN �� ri NEEL-SCHAFFER DRAINAGE MAP Solutions you can build upon SEBASTIAN, FLORIDA HOME OF PELICAN ISLAND L,n If SEBAST11 HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL Council Meeting Date: 28 March 2018 Aaenda Item Title: National Aperture Airport Lease Addendum Recommendation; Authorize City Manager to execute a Lease Addendum with National Aperture allowing an extension of its original Airport Lease terms on a month-to-month basis. Background: National Aperture is a valued tenant at the Sebastian Municipal Airport. They currently lease two `wings' of the Airport Administration/Terminal Building. Their Airport Lease ends 1 September 2018. The owner of National Aperture recently disclosed that, as part of their growing business and expanding product line, the company has started the planning process to build a new manufacturing facility away from the vibrations present at Sebastian Municipal Airport caused by aircraft and machinery. Their requirements also include tate installation of specialized environmental equipment to maintain a laboratory air quality setting. The airport is unable to meet their requirements. National Aperture is requesting a Lease Addendum to allow for month-to-month extensions of the lease terms until such time as the company is ready to move into its new facility. This Agenda Item Requires No Expenditure Of funds.. Administrative Services Department/CFO Review: "V Attachments: 1. Existing National Aperture Airport Lease 2. Lease Addendum City Manager Authorization: r Date: 20 March 2018 165 of 189 1 1 MUNICIPAL AIRPORT AIRPORT LEASE THIS LEASE, made and entered into this 11`h day of July, 2013, by and between the CITY OF SEBASTIAN, a municipal corporation existing under the laws of the State of Florida, (hereinafter referred to as the "Landlord"), and National Aperture, Inc. (hereinafter referred to as "Tenant"). The Landlord and the Tenant are sometimes collectively referred to herein as the "parties". This document contains nineteen (19) pages, plus Schedule "A". WITNESSETH: WHEREAS, the Landlord is the owner of certain property located in the County of Indian River County, Florida; and WHEREAS, the certain property is being used for the operation of the Sebastian Municipal Airport (hereinafter referred to as the "Airport"); and WHEREAS, the certain property is also available for use for those activities consistent with or in support of aviation activity; and WHEREAS, the Landlord has agreed to lease such property to the Tenant subject to certain terms and conditions consistent with, or in support of, the current aviation use of such property; and Page 1 of 19 166 of 189 WHEREAS, the Tenant desires to lease the said property from the Landlord, and to that end and in consideration of the premises, and the covenants, terms and conditions to be performed as set forth hereinafter; and NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: I. RECITALS. The stated recitals are hereby incorporated by reference in this Lease Agreement. 2. LEASED PREMISES. Subject to the terms and conditions set forth hereinafter, and in accordance with the Principal Guiding Documents for Sebastian Municipal Airport (to include future amendments, changes, and deletions), the Landlord hereby leases to the Tenant and the Tenant hereby rents from the Landlord that portion of the real property of the Landlord which is described more particularly on Schedule "A" affixed hereto and made a part hereof by reference (hereafter referred to as the "leased premises A"). In the event that any portion of the Leased Premises .A is needed for actual improvements to the Airport, any portion thereof rendered unusable to Tenant shall be released from this lease and the rental payments adjusted accordingly. Pending approval of the underlying lease by the City Council of the City Of Sebastian, it is understood that Tenant shall have access to the leased premises on July I1, 2013 for the purposes of configuration and `move -in' functions. It is understood that Tenant's start date for rent payments on the leased premises is September 1, 2013. Tenant agrees to `hold harmless' the City Of Sebastian for any/all claims, liability, and damages resulting from activities by Tenant. 3. TERM OF LEASE. The term of this Lease shall be for a period of FIVE (5) years commencing September 1, 2013, and will end on the fifth (511`) anniversary of such date. The Tenant shall have the option to automatically extend the lease for a period of THREE (3) years with agreement by the City of Sebastian that Tenant is in compliance with all Conditions, Covenants, and Restrictions as contained in this Lease. Notice of intent to exercise said option by Tenant must be received by Landlord, in writing, no later than six (6) months prior to the expiration of the underlying lease. As Pagc 2 of 19 167 of 189 stated in paragraph 2, Tenant shall have authorization to move into the leased space on July 11, 2013, however, any lease charges will begin to run on September 1, 2013. Other lease provisions will apply for the period July 11, 2013 through August 30, 2013 including provisions for utility charges and hold harmless provisions. 4. RENT. The parties agree that the rent, payable by the Tenant, during the term of this Lease shall be as follows: (a) For the leased premises "A": approximately 2300 sq ft @ $8.501year. Total: $19,550 per year payable in quarterly installments on September 1, December 1, March 1, and June I of every year the Lease shall be in effect. The parties recognize that the purchasing power of the United States dollar is evidenced by the United States Department of Labor, Bureau of Labor Statistics, Index of Consumer Prices. In January, 2014, the Landlord will compare the most recent price index with the base price index for 2013, and the yearly rent amount shall be adjusted based upon changes in the price index, if appropriate, on September 1, 2014. Another such adjustment shall be undertaken for September 1, 2015, and every year thereafter until the expiration date of the lease, including the option period if applicable. In no event, however, shall the yearly rent decrease below the sum of$19,550. (b) Time of the essence. The Tenant agrees promptly to perform, comply with and abide by this Lease, and agrees that timely payment is of the very nature and essence hereof. In the event that any rental payment due hereunder shall not be paid within five days of when due, Tenant shall pay Landlord a late payment fee of 5% of the amount of such late Rental Payment. This charge shall be considered additional rent and not interest. (c) Default in rent. If any of said sums of money herein, required to be paid by the Tenant to the Landlord, shall remain unpaid ten (10) days after written demand by Landlord, then the Landlord shall have the options and privileges as follows: Page ] or 19 168 of 189 (1) Total acceleration. To accelerate the maturity of the rent installments for the balance of the term. This option shall be exercised by an instrument in writing signed by the Landlord, or its agent(s), and transmitted to the Tenant notifying him of the intention of the Landlord to declare all unmatured rent installments presently due and payable. (2) Partial acceleration. In lieu of the option in sub -paragraph (1) above, the Landlord may, in like manner, declare as presently due and payable the unpaid rent installments for such a period of years as may be fixed in the Landlord's said notice to the Tenant. The exercise of this option shall not be construed as a splitting of a cause of action, nor shall it alter or affect the obligations of the Tenant to pay rent under the terms of this Lease for the period unaffected by said notice. (3) Other remedies. In addition to the option herein granted above, the Landlord may exercise any and all other options available to it hereunder or under law, which options may be exercised concurrently or separately with the exercise of the above options. (d) Default in provisions. if the Tenant shall default in the performance of any other term of this Lease (except the payment of rent), the Landlord, or its agent or employee, shall send to the Tenant a written notice of default, specifying the nature of the default, and the Tenant shall, within thirty (30) days after the date of said notice, cure and remedy said default, whereupon this Lease shall continue as before. If the Tenant shall fail to cure and remedy such default within said time, the Landlord shall have the right to declare, by written notice to the Tenant, that the Lease is in default, and to use all remedies available to the Landlord hereunder or under law, including, but not limited to, those remedies, procedures and rights specified in the other paragraphs of this Lease. Notwithstanding the above provisions, Tenant shall have one (l) fifteen (15) day period per year to Page4 of 19 169 of 189 cure any payment defaults after Tenant has received non-payment notice from Landlord. (e) In addition to the rental amount, the Tenant shall pay Florida sales tax, if applicable. (f} The above rental for the leased premises shall be payable in advance, in quarterly installments, commencing on September, 2013. Rental payments for leased premises as described in Section 3 will then be due on a like day of every quarter (December 1, March 1, June 1) thereafter during the term of this Lease. 5. IMPROVEMENTS TO THE PREMISES. The Landlord acknowledges that the Tenant is leasing the premises for the primary purpose of the operation of Tenant's manufacturing business. In order to utilize the leased premises for this purpose, it may be necessary to use improvements previously constructed upon the leased premises. Tenant acknowledges that these improvements are owned by Landlord. (a) The Tenant shall have the right to use the leased premises for any lawful purpose described in Section 6 hereof and shall have the right to construct improvements upon the leased premises, provided any such improvements do not in any way curtail the use of the airport facilities in their usual operations and provided further that any such improvements are approved, in writing, by the City of Sebastian prior to commencement of any construction. The Tenant covenants and agrees that all such construction shall be in accordance with the local and state codes, regulations and requirements as well as in accordance with all requirements of the Federal Aviation Administration (FAA) and the Florida Department of Transportation (FDOT). The Landlord agrees that any approval for said improvements will not be unreasonably withheld by the City of Sebastian. Page 5 of 19 170 of 189 (b) Tl7e Te -"0171 any shall in anY claims, dentnify, defend any Such i rover ,damages or , and hold the L m s (C) All i ments. !lens the out °f the Landlord ord harnt/ess car Placed on the lents and fixtures of e construction °l Can be remov aced premise very kind no tette ed without s, excluding Tenants, w or her or earliereafter erected to a'nage to the h s the ret inti a trade ordi �r}pertY of the Landlord of this Lease�Ponti�s' shall, at the end that sol ear and d and shall b at reason nd of the e Ownersh; darn, by the a leis in good ' be and beco execute an P ut the Landlor elements exec condition and fie necess Y and all d d, the Tenant Pted. In order repair, ary to Perfect ocuments shall, at t° confirm improve ec, title to of transfe Landlords free and ntents shall, upon said iproveme r which Land request, clear of the tereti nts Th 7- lord d The en eems b -fielute shall be define ncumbrances, liens,on of this Lease Evan, agrees that all 'ncaPab eh.Ysically anne ed s an article which d title defects o fey reason, be or w an realty, be of bejng removed Ixed to the a Chattel, but Y kind A comes without realty !"bleb, the Tenant at the c Pan and parcel of it or or functioY the Tenant and Y anY re on, Shall h P ration ° the to Non�ir tore nal damage to as f x may rento all continue ontin r"t °r earl' Personalty the Of any Cove ant Personalty, to be Owned 6veTen terin'nation oftI L Wned by shall t or co Piov;ded ant and, ase, remain edition the Te , at its Landlord °n the /ease of this Lease nant is not the °Ption� APY dan a front any such defauretnises until the therwise all such in default 8e t0 the It have danta Proper, expel such Personalty shall ed Premises caul been ascertained and off eyed by the leased 6 USC OF L all be repaired b ed by Tenant the remova j by nt penated. hazard andmrses will be co�dS�D P�MISES forthwith at enant'of that, in acted ;n The Tenant Want s cOnnection Ji such th the arca maMer as to c©b'rCes that no use ll of the leased Premises 12 a nuisanceo or 'a rho 1 a enant will PaRe6ofr9 1?1 of 189 observe and comply with all applicable laws, ordinances, orders and regulations prescribed by lawful authorities having jurisdiction over the leased premises. Tenant will abide by the Principal Guiding Documents for Sebastian Municipal Airport (to include future amendments, changes, and deletions). Tenant agrees that the leased premises shall be used by the Tenant for the purpose of the operation of Aperture Manufacturing and any reasonably related business. No other use may be conducted by the Tenant without the express written consent of the Landlord. Such consent may be withheld by the Landlord for any reason. All aeronautical businesses and activities must be certified and licensed by appropriate agencies, including the FAA, in the appropriate categories of their specific operation. 7. REPAIRS AND ALTERATIONS. The Landlord shall not be obligated to maintain or repair the interior of the leased premises or any improvements located therein or any part thereof during the lease teen or any renewal thereof. The Tenant agrees, at its sole cost and expense, to maintain all of the interior of the leased premises. The Tenant shall keep the leased premises in a good state of maintenance and repair and keep the leased premises in a clean, neat and orderly condition in accordance with local ordinances, including but not limited to, the Sebastian Land Development Code and all other community standards ordinances. it is an express condition of this Lease that the leased premises are kept in an attractive manner at all times. Upon obtaining the prior written consent of the Landlord, which consent may be withheld for any reason, the Tenant, at its sole cost and expense, may erect such additional improvements on the leased premises as it deems appropriate and may make such alterations or major renovations to the existing improvements as it deems appropriate, provided, however, that such alterations or renovations shall not disturb the structural integrity of such existing improvements, and provided that the alterations or renovations shall comply with all applicable governmental regulations. The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of or in any way connected with such additions or renovations. S. UTILITIES. The Tenant shall be responsible for all costs of electricity, lights, water, sewer, heat, phone, TV, internet, or any other utility or service consumed in Pap 7of19 172 of 189 connection with the leased premises. Relating to leased premises `A', utility charges shall be assessed to Tenant by Landlord on a prorated basis according to the Tenant square foot usage. It is understood that the Landlord shall have no liability for the failure to procure, or the interruption of; any such services or utilities. 9. SIGNS. The Tenant shall have the right to erect and maintain such sign or signs on the premises as may be permitted by applicable law; provided, however, the Landlord must approve any such signs in writing prior to erection. The Landlord may impose any reasonable restrictions as, in the sole discretion of the Landlord, are deemed necessary. 10. TAXES. The Tenant shall pay during the Lease term all ad valorem taxes, assessments or any other governmental charge levied or assessed against the leased premises (including the Tenant's leasehold by the appropriate governmental authorities), together with all ad valorem taxes assessment or other governmental charge levied against any stock of merchandise, furniture, furnishings, equipment and other property Iocated in, or upon the leased premises. All shall be paid by the Tenant on a timely basis and receipts therefore shall be provided to the Landlord upon request. 11. LIABILITY INSURANCE. The Tenant shall provide and keep in force, at its own expense, during the term of this Lease, comprehensive public liability insurance coverage with respect to the contents of the leased premises. Landlord shall insure the buildings occupied by Tenant. The insurance coverage to be maintained by the Tenant shall contain limits of- (a) f (a) Bodily Injury and Property Damage - $1,000,000 Combined Single Limits (b) Products and Completed Operations Liability (if applicable) — $1,000,000 Combined Single Limit. (c) Aircraft Liability — $1,000,000 Bodily Injury and Property Damage Combined Single Limit. (d) Insurance in the full replacement value of all Personal Property, Equipment, and Trade Fixtures on the Leased Premises. (e) Ground and Hangar Keeper's Liability (if applicable) — adequate coverage for any single aircraft in storage or care and a limit covering the total value of those aircraft but not less than $100,000 for damage to any one (1) aircraft and $500,000 per each occurrence. (t) Chemical Liability Insurance (if applicable) — minimum of $400,000 Combined Single Limit. Pate R of 19 173 of 189 (g) For aircraft Fueling Operations (if applicable)— a Comprehensive Aircraft Liability policy indicating that the coverage includes owner's fuel ing/defuel ing operations with fueling equipment owned and/or operated by the Tenant. The minimum shall be $1,000,000 Combined Single Limit for Bodily Injury and Property Damage, (h) Automobile Liability Insurance: (1) Each service provider operating one or more motor vehicles on the City's premises in the performance of their work shall purchase and maintain Automobile Liability Insurance with policy limits of not less than $300,000 Combined Single Limit. (2) Service Providers having unescorted access to the AOA at the Sebastian Municipal Airport shall purchase and maintain Automobile Liability Insurance with policy limits of not less than 51,000,000 Combined Single Limit. (a) Builder's Risk (if applicable) during any construction on a leased site, the service provider shall furnish Builder's Risk Insurance insuring the contract price, with the City listed as the named insured. Any deductibles under the builder's risk policy shall be the responsibility of the service provider. (b) Workers' Compensation Insurance: as required by Florida Statutes. Tenant agrees that, should there be an expansion of the use or occupancy beyond the primary use set forth herein, Landlord may alter the minimum amounts stated in the preceding section during the term of this Lease by addendum or change in the Principal Guiding Documents for Sebastian Municipal Airport (to include future amendments, changes, and deletions). Landlord will give written notice of any such change to Tenant, and such changes will take effect immediately. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. The Tenant shall supply the Landlord with a certificate of such insurance with evidence of the payment of the premium thereon. All policies described in this paragraph/section she contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. 12. PROPERTY, FIRE AND EXTENDED COVERAGE INSURANCE. The Tenant shall, at its sole cost and expense, procure and keep in effect such standard policies of property casualty, fire and extended coverage insurance as the Landlord deems necessary and appropriate and in accordance with the provisions in Section 11. Upon Page 9 of 19 174 of 189 request, the Tenant shall provide to the Landlord a certificate of such insurance with evidence of the payment of the premium therefore. The Landlord shall have no obligation to keep the leased premises contents insured nor shall the Landlord have any obligation to insure any personal property used in connection with the leased premises. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida. All policies described in this Paragraph shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. In the event that the Tenant's use and occupancy of the premises causes any increase in the premium for any property casualty or fire insurance maintained by Landlord on the Leased Premises or any portion thereof, Tenant shall reimburse Landlord for the amount of said increase within thirty days of notice of the same. 13. DAMAGE OR DESTRUCTION OF IMPROVEMENTS BY FIRE OR OTHER CASUALTY. In the event the leased premises are destroyed or damaged by fire or other casualty, the Tenant, at its option, agrees that it will cause said premises and/or other improvements to be replaced or said damage to be repaired as rapidly as practicable. The Landlord may abate the Tenant's rent for the period of time more than 80% of the leased premises, if any, is unusable. In the event the Tenant elects to repair and/or replace the leased premises, the Landlord shall have no claims against any insurance proceeds paid to the Tenant on account of such damage and/or destruction nor shall the Landlord have any responsibility or obligation to make any expenditures toward the repair and/or replacement of the building and other improvements on the leased premises. (a) If the Tenant, under its option, elects not to repair the leased premises, the Landlord shall have two options: (1) To continue to Lease; if the Landlord elects to continue the Lease, the Landlord shall be entitled to any of the insurance proceeds on account of such damage and/or destruction, such proceeds to be the sole property of the Landlord, or Page 10 of 19 175 of 189 (2) To cancel the Lease; if the Landlord elects to cancel the Lease, the Landlord shall be entitled to that portion of the insurance proceeds paid as a result of such damage and/or destruction to the building and other improvements on the leased premises, the Tenant shall be entitled to the remainder, if any, of the insurance proceeds. (b) In the event the Tenant, under its option, elects not to repair and/or replace the leased premises, the Tenant shall, at its sole expense, remove all remaining portions of the leased premises. 14. INDEMNIFICATION. The Tenant agrees hereby to defend, indemnify and save the Landlord harmless from any and all actions, demands, liabilities, claims, losses or litigation arising out of or connected with the Tenant's occupanev or use of the leased premises and the use of the leased premises by tenant's agents, employees, and invitees, including all attorney's fees incurred by the Landlord in defending any such claims. This Paragraph shall survive the termination or cancellation of the Lease. 15. ENVIRONMENTAL MATTERS. The Tenant hereby agrees to indemnify, defend and hold the Landlord harmless from and against any and all claims, lawsuits. losses, liabilities, damages, and expenses (including, without limitation, clean-up costs and reasonable attorney's fees) resulting directly or indirectly from, out of or by reason of any hazardous or toxic materials, substances, pollutants, contaminants, petroleum products, hydrocarbons or wastes being located on the property and being caused by the Tenant, sub= Tenants, agents, assigns, or users of leased premises or fuel farm. The presence of said substance or materials on the leased premises, or fuel farm, shall raise the presumption that Tenant is the cause of such presence. Section 15 shall survive the termination, or cancellation, of the Lease. 16. PREVENTION OF USE OF THE PREMISES. If, after the effective date of this Lease, the Tenant is materially precluded or prevented from using the leased premises for those primary purposes identified in Section 6 of this Lease, by reason of any zoning law, ordinance or regulation of any authority having jurisdiction over the leased premises including the Principal Guiding Documents referenced in Paragraph 2 and such P;i,,,e ! 1 of 19 176 of 189 prohibition shall continue for a period in excess of thirty (30) consecutive days, the Landlord shall allow the Tenant to terminate this Lease. Tenant shall provide Landlord With a thirty (30) day Notice of its intent to so terminate with specific grounds on which Tenant asserts it has the right to terminate. Any Tenant prepaid rents shall be abated to the Tenant. 17. AIRPORT USE FEES. Landing, tie down, or any other type of use of airport fees being charged by Tenant are specifically prohibited by this Agreement as the use of the Airport is for the general public. Nothing in this Lease shall act to prohibit the Landlord from charging such fees as it deems necessary or desirous. 18. GOVERNMENT SEIZURE. In the evcnt the United Stares Government, or any agency or subdivision thereof, at any time during the term of this Lease takes over the operation or use of the airfield and/or Airport which results in the Tenant being unable to operate under the terms of the Lease, then the Lease may be extended upon mutual agreement of the Tenant and the Landlord for an additional period equal to the time the Tenant has been deprived of the value of this Lease. If the duration of the seizure exceeds ninety (90) consecutive days, the Landlord, at the Landlord's sole discretion, may terminate this Lease. Any Tenant prepaid rents shall be abated to the Tenant. 19. EMINENT DOMAIN. If all or any part of the leased premises shall be taken under a power of eminent domain, the compensation or proceeds awarded for the taking of the leased premises shall belong to the Landlord. If the taking is to such an extent that it is impracticable for the Tenant to continue the operation of its business on the Ieased premises, the Lease, at the option of the Landlord, may be ternvnated. Nothing herein shall prevent the Landlord and/or the Tenant from seeking any and all damages sustained from the condemning authority by reason of the exercise of the power of eminent domain. 20. DEFAULT BY TENANT. As used in this Lease, the term, "event of default", shall mean any of the following: (a) The failure of the Tenant to fulfill any duty or obligation imposed on the Tenant by the Lease post expiration of the applicable period to cure; Psge 12 of 19 177 of 189 (b) The appointment of a receiver or the entry of an order declaring the Tenant bankrupt or the assignment by the Tenant for the benefit of creditors or the participation by the Tenant in any other insolvency proceeding; (c) The Tenant's failure to pay any consideration, to the Landlord, required by this Lease; (d) The taking of the leasehold interest of the Tenant hereunder pursuant to an execution on a judgment; (e) The Tenants abandonment of any substantial portion of the leased premises. "Abandonment" shall be determined by the Landlord; (f) The Tenant or any guarantor of Tenant's obligations hereunder, filing a petition for bankruptcy or being adjudged bankrupt, insolvent, under any applicable federal or state bankruptcy or insolvency law, or admit that it cannot meet its financial obligations as they become due, or a receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or any Tenant's obligations hereunder; (g) The Tenant or any guarantor of the Tenant's obligations hereunder shall make a transfer in fraud of creditors or shall make an assignment for the benefit of creditors; (h) The Tenant shall do or permit to be done any act which results in a lien being filed against the leased premises or the property which is not released of record within thirty (30) days of the date it is initially recorded in the Public Records of Indian River County. Each party covenants and agrees that it has no power to incur any indebtedness giving a right to a lien of any kind or character upon the right, title and interest of the other party in and to the property covered by this Lease, and that no third person shall ever be entitled to any lien, directly or indirectly, derived through or under the other party, or its agents or servants, or on account of any act of omission of said other party. All persons contracting with the Tenant or furnishing materials or labor to said Tenant, or to its agents or servants, as Page 13 of 14 178 of 189 Well as all person Lease. Should any such shall ch be Ten kv na Spent or by 61in� al)en be fled the Tenant by this provisi Upon all not be bond, orant shall di on of this Pon a lab deemed t Otherwise, schate orer o be the as 'rntitted y la the sa e allythe Landlo dstow)ng labor upon t agent ol'the Land b w. Th ny subsequent s estate un he leased lord so as e revisions eyisi der the t° Prent)ses confer �i) T Provisions °f the Flo he liguidatio ons U�erep f ' a ntechan)c's lien G) the n, terminatio)t, death or . 7e nda Statutes or Want fail d)ss b ' s tO continuously for more than one olution o fthe Y conduct a, hundred Tenant; (k) PheUsinL'sTfor which the leased d carry o, twenh' (l20) c U ot'this Want shall be . PremisCs are )n good fait consecutive Pon the happe Lease, other )n default or leased> h the type of this LeaseWing of d tan those any Other to rr Provided, ho and expel any T� vent °fdefault+}sPecifiedin subparts � provision or coy to Perfornm any ve► er that before t ant therefrom the Landlord ma a through I above errant notice of y cOndition i se of y, at such eye mpose�exerci such Out re ud)ce to its oP"On, tct7nixmate hot, the date nt ofdefault to herein upon the Poon for fail ure any other remedy; default notice is se the Tenant Tenant+ the to Pay rent ten > unless such default nt by the ' which there Landlord shall or failure dela X10) days, from the is the failur�dlord, within Which shall have tl)i give tivritten to ch rty by Payin date g allnotice Pay rent to reme (30) days, Pert 21 • IDENT rent due is sent by the Land/orw�ch case the Ten r correct such to have ofany act puY OF IN7- ST � `v;thin which to ant shall have me h the su d Principal and affect Of creattn ant o the prot'isr. 77te execution of y such them shall gent or °Fa ween the L ons c°fshall n this Lease be and re pnershi andlord of be Or the 22• ma)n Only th Por of a .%oi and the Ten deemed or `ons N nt ant the trued consent OTICFs Dat °flandlord and venture and the rel rclat)onship of exercised d esignati n� and AN REPpR dl tenant. alio ° de nshi or n between nd P b Y a parry under the pros request to be Any notice, report, statement E cen )sions of this Leve sh d any options or el', app,.O,I, all be effective only wt)on to be hen ,made Pa8c 140p19 1 ?9 Of 189 in writing and delivered (or mailed by registered or certified mail with postage prepaid) to the other party at the address given below: Landlord: City of Sebastian Attn: City Manager 1225 Main Street Sebastian, FL 32958 Tenant: George Mauro National Aperture, Inc. 208 Airport Drive East Sebastian, FL 32958 Copy: John F. Griffin, Jr. Esq. 109 Ponemah Road, #5 Amherst, NH 03031 it;rifnf 7.rifflaw.com provided, however, that either party may designate a different representative or address from time to time by giving to the other party nonce in writing of the change. Rental payments to the Landlord shall be made by the Tenant at an address to be furnished to the Tenant. 23. RIGHT TO INSPECT. The Landlord may enter the [eased premises upon reasonable notice: (a) To inspect or protect the leased premises or any improvement to a property location thereon; (b) To determine whether the Tenant is complying with the applicable laws, orders or regulations of any lawful authority having jurisdiction over the Ieased premises or any business conducted therein; or (c) To exhibit the leased premises to any prospective purchaser or tenant during the final sixty (60) days of the lease term, or at any time after either party has notified the other that the Lease will be terminated for any reason. No authorized entry by the Landlord shall constitute an eviction of the Tenant or a deprivation of its rights or alter the obligation of the Landlord or create any right in the Landlord adverse to the interest of the Tenant hereunder. Page 15 of 19 180 of 189 24. OWNERSHIP OF TRADE FIXTURES, SIGNS AND PERSONAL PROPERTY. At the expiration of the Lease, any and all trade fixtures, signs and personal property, used by the Tenant in the operation of its business, on the leased premises shall remain the Tenant's sole property and the Tenant shall have the right to remove the same provided any damages in removal are repaired by the Tenant at Tenant's sole cost. In case of breach of this Lease by the Tenant, or the termination of the Lease, or any extension hereunder, that may be granted, the Tenant agrees to immediately surrender possession of said facilities, and all the buildings, edifices, etc. that are constructed by or on behalf of Tenant. The facilities, buildings, edifices, etc. shall then become the property of the Landlord. 25. HEIGHTMAZARD RESTRICTIONS, The Tenant expressly agrees for itself, its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions on the leased premises to such a height so as to comply with all Federal Aviation Regulations, State laws and local ordinances, rules and regulations now existing and hereinafter promulgated. The Tenant expressly agrees for itself, its successors and assigns, to prevent any use of the leased premises which would interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an airport hazard. The Tenant covenants and acknowledges that the use of the leased premises as proposed by the Tenant does not interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an Airport hazard. The Landlord reserves unto itself, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the leased premises, together with the right to cause in such airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation or flight in the airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport. 26. NONDISCRIMINATION_ The Tenant for itself, its personal representatives, successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (i) no person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be Page l6 of 19 181 of 189 excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Tenant's facilities; (ii) that in the construction of any improvements on, over or under the leased premises and the furnishing of services thereon, no person on the grounds of religion, gender, marital status, race, color, age, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; (iii) that the Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. In the event of the breach of any of the above non- discrimination covenants, the Landlord shall promptly notify the Tenant, in writing, of such breach and the Tenant shall immediately commence curative action. Such action by the Tenant shall be diligently pursued to its conclusion, and if the Tenant shall then fail to commence or diligently pursue action to cure said breach, the Landlord shall then have the right to terminate this Lease and to re-enter and repossess said land and improvements thereon. 27. ENTIRE AGREEMENf. This Lease contains all of the understandings by and between the parties hereto relative to the leasing of the premises herein described, and all prior or contemporaneous agreements relative thereto have been merged herein or are voided by this instrument, which may be amended, modified, altered, changed, revoked or rescinded in whole or in part only by an instrument in writing signed by each of the parties hereto. 28. ASSIGNMENT AND SUBLETTING. The Tenant shall not assign this Lease or sublet the leased premises or any portion thereof or otherwise transfer any right or interest hereunder without the prior written consent of the Landlord, which shall not be unreasonably withheld. If the Landlord consents, in writing, to the assignment, subletting or other transfer of any right or interest hereunder by the Tenant, such approval shall be limited to the particular instance specified in the written consent and the Tenant shall not be relieved of any duty, obligation or liability under the provisions of its Lease. Pige 17 of 19 182 of 189 29. BINDING EFFECT. The terms and provisions of this Lease shall be binding on the parties hereto and their respective heirs, successors, assigns and personal representatives, and the terms of any Addendum attached hereto are incorporated herein. 30. APPLICABLE LAWNENUE. In the event of litigation arising out of this writing, venue shall be in Indian River County, Florida and the terms of this Lease shall be construed and enforced according to the laws of the State of Florida except to the extent provided by Federal law. 31. ATTORNEYS FEES. In any action arising out of the enforcement of this writing, the prevailing party shall be entitled to an award of reasonable attorney fees and costs, both at trial and all appellate levels, based upon the prevailing rates of private attorneys in Indian River County, Florida. 32. RECORDING. In no event shall the Lease or a copy thereof be recorded in the Public Records of Indian River County, Florida. 33. MISCELLANEOUS. All delinquent payments to the Landlord shall bear interest at the rate of 5% per year from date the payments are due to the date of payment. Said interest shall be calculated on a daily basis and shall be due and payable when billed. The Tenant acknowledges that the Landlord is required by law to operate under an Airport Master Plan and the Tenant covenants that he will use the ]eased premises consistent with the Airport Master flan. The Tenant shall not allow its occupancy or use of the lease premises to constitute or become a pubic or private nuisance, 34. CONTENGENCIES. The provisions in this lease are contingent on the Landlord providing the installation of Hi -Speed internet to service the airport administration building. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. rage l3 of 19 183 of 189 ATTEST: Sally Maio, ity Clerk (sea]) Approved as to Form and Legality for Reliance by the City of Sebastian only: Robert A. Ginsburg, Ci Attorney National Aperture, Inc. $Y � �,r— fiearge Mauro, President Corporate Office: 16 Northwestem Drive SALEM, NI -1 03079-4810 CITY QF SEB STIAN A Municipal or By4 At i r, City Manager Corporate Seal: Page 19 of 19 -* • 0 z Schedule "A" Lease Agreement between the City Of Sebastian and National Aperture, Inc. 'j-" �� /! :J(.)� 1. Leased premises shall include awing' at the Sebastian Municipal Airport Administration Building currently known as the "Engineering Wing." This space is approximately 2340 square feet, more or less. 2. Premises are furnished. 3. Utility charges shall be prorated according to square foot usage. 4. Common Area Maintenance (CAM) shall be at no charge to the Tenant. 5. Lobby/reception area shall be considered a common/shared space with other building tenants. b. Tenant shall have use of a locked Conference Room/Library adjacent to the lobby of the administration building with appropriate notice to the Landlord. 7. Tenant shall have use of conference facilities in the "Emergency Operations Center" (EO C) Wing of the Airport Administration Building with appropriate notice to the Landlord. 185 of 189 00 0) 0 00 .�,... ,o ... �•� 1 1' •°' I ° • ate' ! � ao.. t ----------- --- ------- -- F g 1NORME44 Ile _ �'L�. — � fry r r1 ° •- ��. ,,..�. •�_ T -�T-' r - — to ----- � � � ._ � fir-' _'-'---._ --._..�.-'-.-.__ _— �— FLOOR PLAN EENiZ ii _� / NORTH f x 4PT104�n! poRCN AT A=7 =lP R A-1 – _ 1'ti1�RG _NCV IxAN MOEYEYR +ijrg�t'. —. AIRPORT LEASE ADDENDUM The following is a Lease Addendum between the City of Sebastian and National Aperture, Inc. Whereas the existing Airport Lease between the parties ends September 1, 2018, and Whereas National Aperture wishes to continue renting its currently occupied office spaces until such time as they are ready to move into its new facilities under construction, The parties agree to an extension to that Airport Lease dated July 11, 2013 on a month- to-month basis, maintaining all of the ten -ns and conditions outlined in the original lease. National Aperture, Inc. agrees to provide monthly updates to the Airport Director as to its forecasted move -out date, and allows the City to show their current office spaces to prospective future tenants. Showings of National Aperture office space will take place only when National Aperture representatives are present and will be coordinated ahead of time so as to not to disrupt National Aperture business operations. IN WITNESS WHEREOF, the parties hereto have set their hands and seals as follows: City of Sebastian ATTEST: A Municipal Corporation By: Joe Griffin, City Manager Jeanette Williams, City Clerk seal Approved as to Form and Legality for Reliance by the City of Sebastian only: By: Date: James Stokes, City Attorney National Aperture, Inc. 187 of 189 111 Y SES? -N HOME OF PELICAN ISIANDCITY COUNCIL AGENDA TRANSMITTAL COUNCIL MEETING DATE: 28 March 2018 AGENDA ITEM TITLE: Selection of Grand Marshal for 4`h of July Parade RECOMMENDATION: Direct process for selection of Grand Marshall of 4"' of July Parade. BACKGROUND: On 29 December 2017, Staff met with the Lions CIub to discuss the upcoming 4`h of July 2018 Freedom Festival. The Lions Club has traditionally spearheaded the 4th of July festivities in Riverview Park and the Parade. The City of Sebastian has been responsible for the pyrotechnics show and the skydiving exhibition. During this meeting, it was agreed that the City would take over the administration of the Parade, including the logistics of same. Utilizing City resources, the City Staff's goal is to conduct an organized and orderly parade. Since the City now administers the Parade, the selection of the Parade's Grand Marshal is the City's responsibility. Staff requests Council direction on the Grand Marshall selection process. Selection possibilities could include 1) a citizen who is very involved with the Community, 2) a distinguished local Veteran, or 3) the City's employee of the year. Staff would make an appropriate recommendation for Council consideration. In addition, in previous years, the Lions Club has selected a small group of Judges to vote for the best floats in the parade. Staff feels this is not in the `participation' spirit of the parade and therefore asks to omit this competition from the Parade process. IF AGENDA ITEM REOUIRES EXPENDITURE �OF FUNDS: N/A 1 /J Administrative Services Department/CFO Review: I C�' W . 1 63tr ATTACHMENTS: 1. Order of Parade; Veterans Advisory Committee City Manager Authorization: Date: 20 March 2018 W -3-3m 4"' of July Order of Parade 1. Military Honor Guard — Local Group The Honor Guard is the escort for the... 2. Grand Marshal All veterans groups fall -in behind the Grand Marshal 3. VFW Post 10210 — VFW federally chartered in 1899 4, American Legion Post 189 —American Legion federally chartered in 1919 5. Veteran's Council of Indian River County — incorporated 2011 6. Any other legitimate veteran's organization 7, Sebastian Police Department (if participating) 8. Sheriff's Department 9. City Council 10. Sharks HS Marching Band REMEMBER... THIS PARADE IS SPONSORED BY THE CITY OF SEBASTIAN If there is a conflict... Sebastian comes first. 189 of 189