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HomeMy WebLinkAbout08-24-2022 CC MinutesMix EBASTIA HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL REGULAR MEETING MINUTES WEDNESDAY, AUGUST 24, 2022 — 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Hill called the regular meeting to order at 6:00 p.m. 2. A moment of silence was held. 3. Council Member Nunn led the Pledge of Allegiance. 4. ROLL CALL Mayor Jim Hill Vice Mayor Fred Jones Council Member Ed Dodd Council Member Bob McPartlan Council Member Chris Nunn Staff Present: City Manager Paul Carlisle City Attorney Manny Anon, Jr. City Clerk Jeanette Williams Administrative Services Director/CFO Ken Killgore Asst. Administrative Services Director Cindy Watson Community Development Director Lisa Frazier Community Development Manager Dom Bosworth Leisure Services Director Brian Benton Airport Manager Jeff Sabo Deputy Police Chief Greg Witt 5. AGENDA MODIFICATIONS Council Member McPartlan asked to move up his item to allow the County Administrator and County Attorney, who were present in the audience, to have an opportunity to speak on their concerns or ideas regarding the Graves Brothers Annexation. Mayor Hill noted the City's staff has been in contact with the County staff and if they were to come forward he suggested that Fellsmere, Indian River Shores, and Vero Beach should also afforded the opportunity. He asked Council Member McPartlan if he felt their concerns were not being relayed to them. Regular City Council Meeting August 24, 2022 Page 2 Council Member McPartlan said he would like the public to hear the County's concerns. Mayor Hill said it was important to leave the annexation agreement development to staff who will continue to meet and develop the agreement. Council Member Dodd said there was also an item under the City Attorney matters related to the annexation and there should be more in depth discussion about the overall process. He said he would like to see a list of items that the County considers important to see if they should be on his list he plans to give the City Attorney for the first draft of the annexation agreement. "alej Wa8ram Lei ..,5• • 22.130 A. Proclamation — Suicide Prevention Awareness Month — Seotember 2022 Mayor Hill read and presented the proclamation to Milo Thornton, Board Director of the New Horizons Treatment Facility of the Treasure Coast and Okeechobee. 22.131 B. Presentation by Gehring Grouo. Citv Insurance Consultants: Emolovee Health. Dental. Vision Insurance for FY22/23 Marc Rodriquez, Gehring Group Senior Analyst, presented a PowerPoint outlining the October Iat renewal with the insurance carriers for the employee's health, dental and vision plan. (See attached) BriefAnnouncements: Sunday, September 11, 2022, 8:30 am - Patriot Day Ceremony— Veterans Memorial in Riverview Park Next Council Meeting has been rescheduled to Tuesday, September 13, 2022 Vice Mayor Jones announced the upcoming event and the rescheduling of the next Council meeting. 7. PUBLIC INPUT - None 8. CONSENT AGENDA A. Approval of Minutes — July 27, 2022 Regular City Council Meeting 22.131 B. Formal Approval of Employee Group Health, Dental and Vision Insurance Policies for the Year Beginning October 1, 2022 (Transmittal, Summary, PPT) 22.132 C. Resolution No. R-22-12 — Authorizing the City Manager to Execute the Community Aesthetic Feature Agreement with the State of Florida Department of Transportation for the Installation of Two Standalone Local Identification Regular City Council Meeting August 24, 2022 Page 3 Markers in the Medians of U.S. Highway 1 (Transmittal, R-22-12, Agreement, Email) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING EXECUTION OF A COMMUNITY AESTHETIC FEATURE AGREEMENT WITH THE STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TO ACCOMMODATE LOCAL IDENTIFICATION SIGNAGE IN THE MEDIAN AT THE NORTHERN AND SOUTHERN CITY LIMIT BOUNDARIES OF U.S. HIGHWAY 1; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; PROVIDING FOR AN EFFECTIVE DATE. 22.133 D. Resolution No. R-22-20 — Vacating Certain Easements Over Lots 3 and 4, Block 194, Sebastian Highlands Unit 8, 1040 Carnation Drive (Transmittal, R-22-20, Map, Report, Approvals, Survey) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, VACATING CERTAIN EASEMENTS OVER LOTS 3 AND 4, BLOCK 194, SEBASTIAN HIGHLANDS UNIT 8; PROVIDING FOR CONFLICTS HEREWITH; PROVIDING FOR RECORDING; PROVIDING FOR SCRIVENER'S ERRORS; PROVIDING FOR AN EFFECTIVE DATE. 22.134 E. Authorize a Lease Extension to Rigaud Accounting, Inc. for Office Space Inside the Sebastian Municipal Airport Terminal Building with the Option to Extend the Lease for One Additional Year and Authorize the City Manager to Execute the Appropriate Documents (Transmittal, Notification) 22.135 F. Authorize the Purchase and Installation of Four HVAC Units from Jimmy's A/C and Refrigeration to Replace Four Units at the Sebastian Municipal Airport Administration Building in the Amount of $23,480.00 (Transmittal, Quotes) 22.136 G. Authorize the City Manager to Enter into a Three -Year Agreement with Xtreme FX, LLC for the City's Fireworks Display in the Amount of $28,000 per Event (Transmittal, Proposal, Agreement) 22.137 H. Approve a Contract Amendment between the Rotary Club of Sebastian and the City to Change the Name of the "ShrimpFest & Craft Brew Hullabaloo" to the "River Days & Craft Brew Hullabaloo" (Transmittal, Amendment) 22.138 I. Approve Alcoholic Beverages for the Vargas Family Event at the Community Center on October 1, 2022 from 5:00 p.m. to 10:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) 22.139 J. Approve Alcoholic Beverages for the Luna Family Event at the Community Center on October 8, 2022 from 4:00 p.m. to 10:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) Regular City Council Meeting August 24, 2022 Page 4 22.140 K. Approve Alcoholic Beverages for the Strawter Family Event at the Community Center on December 17, 2022 from 4:00 p.m. to 11:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) 22.141 L. Approve Wreaths Across America Special Event at the Sebastian Municipal Cemetery and Veterans' Memorial Park on December 17, 2022 (Transmittal, Application) Council Member Dodd asked to pull Items A and H. Vice Mayor Jones asked to pull Item E. MOTION by Council Member McPartlan and SECOND by Council Member Nunn to approve Consent Agenda Items 8B, C, D, F, G, I, J, K, and L. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill - aye Motion carried. 5-0 Item A - Ant roval of Minutes — July 27. 2022 Regular Citv Council Meeting Council Member Dodd asked to change the first sentence of the fourth paragraph on page three to "Council Member McPartlan suggested that the Geaneil Cram Administrator might come to do a presentation on what has been agreed upon or the problem areas." MOTION by Council Member Dodd and SECOND by Council Member McPartlan to approve the minutes pending his requested change, passed with a unanimous voice vote. (5-0) Item E - Lease Extension for Rigmd Accounting. Inc Vice Mayor Jones asked what happened to the lease term from November 30, 2021 to the current date. The City Manager explained that Rigaud Accounting did receive a rate increase but the extension document was not executed. MOTION by Vice Mayor Jones and SECOND by Council Member Nunn to approve a lease extension to Rigaud Accounting, Inc. for office space with the option to extend the lease for one additional year passed with a unanimous voice vote. (5-0) Item H - River Days & Craft Brew Hullabaloo Council Member Dodd asked if the first enumeration point of the agreement should be amended to read a later time instead of ending in year 2023. The City Manager explained he didn't have any problem extending the period but he did not have any discussion with the Rotary Club regarding the time frame; it could be addressed at a later time. Regular City Council Meeting August 24, 2022 Page 5 MOTION by Council Member Dodd and SECOND by Vice Mayor Jones to approve an amendment between the Rotary Club of Sebastian and the City to change the name of the "ShrimpFest & Craft Brew Hullabaloo" to the "River Days & Craft Brew Hullabaloo" passed with a unanimous voice vote. (5-0) 9. COMMITTEE REPORTS & APPOINTMENTS Council Member Nunn said at the Affordable Housing Committee meeting held earlier in the day, they held a roundtable discussion on what initiatives are happening to advance affordable and attainable housing. He said he anticipated further discussions as the environment changes. He reminded everyone that the median income for a family of four was $65,000 in Indian River County, which will enable first time home buyers or those needing emergency home repairs eligible for the SHIP Program. He invited those seeking additional information to call him. 10. PUBLIC HEARINGS 22.142 A. Ouasi-Judicial Public Hearine - Resolution No. R-22-16. Preliminary Plat for a 3- Lot Residential Subdivision to be Known as Tema Estates (Transmittal. R-22-16. Plat + Survev. Report. Anofication. Minutes) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, APPROVING THE PRELIMINARY PLAT FOR A PROJECT KNOWN AS TERRA ESTATES, A 3-LOT RESIDENTIAL SUBDIVISION CONSISTING OF 8.8 ACRES LOCATED ON THE WEST SIDE OF LACONIA STREET, SOUTH OF GLADIOLA AVENUE AND ADJACENT TO THE CITY'S DRAINAGE RIGHT-OF- WAY; PROVIDING FOR CONFLICTS HEREWITH; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Hill opened the public hearing and the City Attorney read the title to Resolution No. R-22-16. The City Clerk swore in those who were to provide testimony. Wesley Mills, P.E., Mills, Short and Associates, said he was representing the applicant who plans to subdivide the property into three single family lots. They plan to extend the road off Laconia, install a water line, and a dry retention swale that will capture runoff from the road to release treated water to the City's canal that will have an access easement. The Community Development Manager said this was a preliminary plat for a three lot subdivision; the first step would be that the applicant will come in with a subdivision construction application and then Council will see a final plat. She asked that the staff report, easements and documents be entered into the record. She stated the Comprehensive Plan and Land Development Code requirements have been met. This was previously known as Turtle Grove with 37 lots but it was never built. Regular City Council Meeting August 24, 2022 Page 6 There was a subsequent property owner that bought the property for investment purposes and they divided the property into two nine acre parcels. The City requires the applicant to have access through the easement along Laconia Street to the northern nine acre parcel. These parcels will have a private drive with a left in only and a left out only. The property is adjacent to a 40 foot wide drainage unit to which the City will have access to for maintenance. She reported the applicant will relocate the tortoises on the property; and an inter -local school agreement will be completed before land clearing begins. The Community Development Manager said the Planning and Zoning Commission did add the requirement of additional signage, if the City Engineer felt it was appropriate. Once sewer was available they will have to connect immediately and that requirement will carry forward to any subsequent owners. The commission recommended approval with the five conditions noted in the resolution. In response to Mayor Hill, the Community Development Manager noted the conservation easement on the southeast side was not conducive to be built upon and the building height would be the same as the Highlands. Council Member Nunn asked how far down will the driveway be. The Community Development Manager said it would be approximately I50 feet. Council Member Nunn said he foresees people driving down the wrong way to the entrance. He asked if the City has looked into the possibility of widening Laconia. The City Manager explained the easement is privately owned and it would depend on what happens to the south in the future. Their bigger challenge is to keep it safe for the three homes that might be built. The Community Development Manager offered that when the construction drawings come in, raised curbing could be required to prevent traveling the wrong way down Laconia. Council Member Dodd asked that the requirement of connecting to the sewer system as "soon as possible' be changed to `within one year of becoming available." Vice Mayor Jones asked how many feet south of Gladiola will be widened. The Community Development Management said there wouldn't be any widening; vehicles will have to go to Concha and head south. Mayor Hill said it was an awkward situation but it's been there for years. Vice Mayor Jones said he has used that for many years and if someone came up, he would just pull over but when there are more homes people will have to be cognizant of that. No one spoke in favor or opposed to the preliminary plat. Mr. Mills said he understood that traffic was a concern because of the awkward existing street but it was a resident subdividing his property so his son could also have a house on the property. MOTION by Council Member Dodd and SECOND by Council Member McPartlan to approve Resolution No. R-22-16 with the five conditions to include that the fifth Regular City Council Meeting August 24, 2022 Page 7 condition be modified to require the hook up to sanitary sewer within a year of it becoming available. Roll call: Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill - aye Vice Mayor Jones - aye Motion carried. 5-0 11. UNFINISHED BUSINESS 22.028 A. Presentation of Recommended FY 2022-23 Buduet and Camital Proeram !Transmittal. PPT. Draft Budeet Available at: httos://www.citvofsebastian.org/Amhivc.as2l?A2I2=1351 The City Manager said there have been some staffing changes that he has recommended since they last reviewed the budget. The Chief Financial Officer briefed the City Council on the general fund budget, property values, millage rate, enterprise funds and the capital improvement program. (See PowerPoint presentation attached.) He noted that the public would be able to comment at the September hearings. Mayor Hill said he has received his TRIM notice and noted almost all agencies have same millage rate as last year which will be a substantial increase. His increase would be about $3.00 a month and it will provide the same level of services that the citizens need. He thanked the Chief Financial Officer for getting the budget done. Council Member Dodd said the Chief Financial Officer did a good job but there were still some things that they needed to deal with such as the labor agreement and he didn't believe it was the year to hire an assistant city manager. He asked to discuss the position. The City Manager said he was getting pulled in a lot of different directions, the position is something that is needed but they could look at it in another year. Council Member Dodd said he has asked the Chief Financial Officer for information on the reserve accounts as there are unfunded allocated funds that the reserves will have to cover. If the wrong ten people decide to quit this year, there will be a dramatic decrease in the reserves to cover those payouts. He asked if this was the year to fund the executive level position. Mayor Hill said if the budget was balanced with the position, he was comfortable funding that position. Regular City Council Meeting August 24, 2022 Page 8 Council Member McPartlan said his concern was that this is the Chief Financial Officer's last go around and he would like to see an assistant human resources director rather than an assistant city manager to learn the ropes before he leaves. Vice Mayor Jones said while it is in the budget now, all employees are pulling triple duty and maybe it is something they should hold off on for now and look further down the road. Council Member Nunn said it was probably not the right year; he does feel the position is needed because of the number of projects that are going on. He said it sounded like it was the consensus to put this off for a year, he couldn't argue with the consensus. Council Member McPartlan asked if the concrete truck was a need or a want. The City Manager said right now an order of concrete takes two and half months to come in; the truck will allow the concrete to be mixed in the truck. He said the price has gone up and an amount that is available for purchase is limited which is hindering the completion of the projects. Council Member Nunn said he has heard of delays in completing the driveways. Savings would be realized through staff completing the driveways, the projects would be completed faster and safety concerns would be alleviated. He recommended keeping the truck in the budget. The City Manager advised the truck would be funded through DST funding as opposed to ad valorem. Council Member McPartlan asked about the police armored vehicle. The City Manager explained the existing vehicle is in the shop. The vehicle helps to protect the officers as they respond to events. Council Member McPartlan asked if the pothole and concrete truck were something that would be used every day. The City Manager explained that none of the equipment goes out every day but they are what is needed for projects to go forward. Council Member Dodd said hopefully there would be some street work completed and the trucks would help the projects go forward. He also said if the armored vehicle saves one police officer's life it is worth it. Council Member Nunn and Vice Mayor Jones thanked the Chief Financial Officer for his presentation. Mayor Hill noted he had one item to scratch. 12. NEW BUSINESS 22.143 A. First Readine Ordinance No. 0-22-01 — Proposing an Amendment to Code of Ordinances Chanter 34 — Cemeteries: Snecifically Amending Sec. 34-11. 34-23. 34-26. and 34-59: and Creating Sec. 34-60 — Set Public Hearin For Sentember 13.2022 (Transmittal. 0-22-01) Regular City Council Meeting August 24, 2022 Page 9 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PERTAINING TO THE CITY OF SEBASTIAN CODE OF ORDINANCES CHAPTER 34 CEMETERIES; AMENDING SEC. 34-I1 THE ESTABLISHMENT OF INTERMENT FEES; AMENDING SEC. 34-23 ESTABLISHING INTERMENTS TIME FRAMES; AMENDING SEC. 34-26 AMENDING THE PROCEDURE FOR RULE VIOLATIONS; CREATING SEC. 34-59 TO ENSURE MARKERS ARE RELOCATED AFTER FUNERAL SERVICES; CREATING SEC. 34-60 PROHIBITING ABOVE GROUND VAULTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title to Ordinance No. 0-22-01. The City Manager advised this ordinance would consolidate the sale of an interment site to one fee and provide that staff would not have to work during Thanksgiving or Christmas to open a gravesite. MOTION by Vice Mayor Jones and SECOND by Council Member McPartlan to pass Ordinance No. 0-22-01 on first reading and set the public hearing for September 12, 2022. There was no public input Roll call: Council Member MCPartlan - aye Council Member Nunn - aye Mayor Hill - aye Vice Mayor Jones - aye Council Member Dodd - aye Motion carried. 5-0 22.144 B. First Reading Ordinance No. 0-22-14 - Petition for Voluntary Annexation — Man Caves (Self Storage) at Sebastian — Set Public Hearing for November 21. 2022 (Transmittal. 0-22-14. Ex. 1. Attachment) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PROVIDING FOR THE VOLUNTARY ANNEXATION FOR LAND CONSISTING OF 4.56 ACRES, MORE OR LESS, LOCATED SOUTH AND EAST OF VACANT PROPERTY, WEST OF OLD DIXIE HWY AND FEC RIGHT OF WAY, AND NORTH OF MULTIPLE FAMILY RESIDENTIAL DEVELOPMENT; PROVIDING FOR THE EXTENSION OF THE CORPORATE LIMITS AND BOUNDARIES THEREOF; PROVIDING FOR PROPOSED LAND USE AND ZONING CLASSIFICATION; PROVIDING FOR SCRIVENER'S ERRORS; PROVIDING FOR CONFLICT AND SEVERABILI Y; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title to Ordinance No. 0-22-14. The City Manager said this was the first reading to see if Council would like to move forward with the annexing the property. He noted that the application states sewer was not available but that was incorrect. Regular City Council Meeting August 24, 2022 Page 10 Council Member Dodd asked if Exhibit 11 was a conceptual site plan. The Community Development Director said she believed the applicant provided the exhibit to demonstrate what they were conceptualizing. She noted the applicant was planning to request the future land use map (FLUM) and zoning to be compatible with surrounding uses. Council Member Dodd noted the property is a mess and if it comes into the City, he would like the applicant to know that the City expects it to be cleaned up. MOTION by Council Member Nunn and SECOND by Vice Mayor Jones to approve Ordinance No. 0-22-14 on first reading. Robert Votaw, 582 Breakwater Terrace, Co -manager of the Spirit of Sebastian Project, said he has concerns that asbestos was present in the house and there are gopher tortoises present. He asked at what point would the ingress and egress be improved to handle the heavy vehicle traffic that will be a result of the storage facility. He noted that the Spirit of Sebastian is in favor of the annexation. The Community Development Director said if Council does move forward with the annexation, the FLUM would be brought before the Planning and Zoning Commission for a recommendation to City Council, then come back to City Council for the second annexation reading, land use and rezoning. Any right-of-way improvements would come during the site development/design process after the land use has been changed. Roll call: Council Member Nunn - aye Mayor Hill - aye Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Motion carried. 5-0 22.027 C. Authorize the Revocation of the Selection of Ahrens Companies. Inc. as the Desian-Build Firm Chosen in Response to RFO 22-03 — Desien-Build Two Aimort Hantrars for the Location at 70 Airoort Drive West at the Sebastian Municinal Airnort (Transmittal. January 2022 Transmittal, Minutes Excemt. R- 21=24) The City Manager said the City has been in negotiations with the Ahrens Companies for some time but due to the rising costs of construction materials and labor, haven't been able to trim the project down to keep in budget. He stated staff is required to seek the authorization to revoke the award to the Ahrens Company. In an effort to minimize labor costs, he said they would be rebidding the project out for four hangars instead of two. MOTION by Council Member Nunn and SECOND by Council Member McPartlan to approve the revocation of the selection of the Ahrens Companies, Inc. to design -build two airport hangars passed with a unanimous voice vote. (5-0) The City Manager said the revocation would not have any effect on the grant. Regular City Council Meeting August 24, 2022 Page 11 22.145 D. $esolution No. R-22-21 —Authorize the FDOT Pul�jic Tnmsuortation Grant A¢eement to Desien the Rehabilitation of Runwav 05-23 at the Sebastian Municipal Airoort and Authorize the Citv Manager to Execute the ADDIOnriate Documents (Transmittal. PTGA. R-22-21) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC TRANSPORTATION GRANT AGREEMENT (PTGA) WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION FOR FUNDING THE DESIGN COST OF FM450930-1-94-01 "DESIGN RUNWAY 05-23 REHABILITATION" AT THE SEBASTIAN MUNICIPAL AIRPORT; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title to Resolution No. R-22-21 and the City Manager advised this was to receive a grant to rehabilitate Runway 05-23 which was reaching the end of its useful life. MOTION by Council Member Dodd and SECOND by Council Member Nunn to approve Resolution No. R-22-21. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill - aye Motion carried. 5-0 13. CITY ATTORNEY MATTERS 22.098 A. Advise Council that the City of Sebastian has retained Paul Gougelman of Weiss. Serota. Hellman. Cole & Bierman. P.L to assist in the Graves Brothers Annexation. The City Attorney advised that he hired outside counsel to assist with the Graves Brothers annexation. He said last Friday he had met with Paul Gougehnan to discuss the map issue which was followed up with a meeting with Mr. Bass and his attorney. Council Member Dodd said it was important that they were bringing in a land use attorney. He would like to give Mr. Gougelman an opportunity to work with Mr. Bass' attorney to draw up an annexation agreement before they move forward. He said the City Attorney plans to ask each Council Member what they would like to see in the agreement. He would like to see input from outside interested parties, stakeholders and the County Commission about issues and points they are interested in. He said he will use those things when he provides his input to the City Attorney. Regular City Council Meeting August 24, 2022 Page 12 Council Member Dodd said they may never satisfy some of the other organizations but they can try to put everything together. He said they had many open meetings in 2019 and we saw what happened if they try to be more patient they might alleviate the back end becoming a problem for the City. He said he wanted to make sure this happens and make the citizens and stakeholders as part of process. Mayor Hill said he agreed it should be done in the open, listen to everyone's concerns and make a decision that is best for Sebastian by moving forward by following the statutory requirements as the Council agreed to at the last meeting. Council Member Nunn said all of the important people are having the discussions that need to be had; the City does not need to slow down but continue the proper way in trying not to make any errors. Council Member McPartlan said this isn't the same annexation that came to them four years ago; it is a larger annexation that will increase the City 20%. It is best management to tap the breaks a little bit. He asked if they were going to put the annexation to a vote on September 13 or are they waiting. Council Member Dodd said he wanted to make sure they are providing ample opportunity to receive input from all of the entities before he provides input to the City Attorney for the annexation agreement. He said he would like to see documents outlining the points of interest that staff has been talking about. He said would support the annexation. Mayor Hill asked why they couldn't continue to move forward while they were waiting for the County's comments. It was the consensus of Council to have the City Manager requests the County's concerns in writing from the County administrator. The City Attorney advised that he has started to work on the annexation agreement. When they receive the County's letter, he asked that they give their concerns to him to include in the draft. Council Member Dodd asked the County Administrator, who was sitting in the audience, to forward their concerns to the City Manager as soon as possible. The City Manager said that he has heard that he shouldn't do anything until they have a draft annexation agreement and don't put the brakes on/move forward. For clarification, he asked if staff should move forward with the FLUM because it will be advertised tomorrow for review by the Planning and Zoning Commission. Mayor Hill said staff should move forward. Council Member Dodd and Council Member Nunn said they should delay the FLUM until the last meeting in September. Regular City Council Meeting August 24, 2022 Page 13 Council Member Dodd said the FLUM will show 1900 acres of mixed use that can be 10 to 12 units per acre but that is not true. The annexation agreement will be more specific because it will show what the owner feels is a valid amount of units per acre. It is important for people to understand what the documents mean when they go through. So if the Planning and Zoning Commission approves a FLUM that shows 10-12 units per acre that is adding fuel to the fire. They should mitigate problems that might happen in the future. Mayor Hill said it was inferred that that staff should not advertise the FLUM and hold off. Labor Negotiations The City Attorney reported that the Police Department has held an election and selected the International Union of Police Associations as their next bargaining agent; they will be at the table at the end of month to negotiate. He said he has heard from the hearing officer to go forward with the election for the general employees and the supervisors. Graves Brothers FLUM Mayor Hill asked if they delayed the FLUM, would that delay the date of the annexation. The City Manager said it would because the Department of Economic Opportunities would have 30 days to review the FLUM and then there is another 30 day time frame after it comes back so it would affect the annexation date. Mayor Hill confirmed it was Council's desire to hold off with the FLUM until there is a first draft of the annexation agreement. 14. CITY MANAGER MATTERS - None 15. CITY CLERK MATTERS — None A. Council Member Nunn said this week he received an email from a citizen regarding a Community Development District that the County is considering in the Liberty Park area which he found interesting that no one in the City had heard about the small local government being formed on Sebastian's borders. B. Council Member Dodd requested that Citizens Engagement Survey response be placed on a future agenda. The City Manager advised it would be on the next agenda. He thanked the Chief Financial Officer and advised him that he couldn't retire until he trains his replacement. C. Mayor Hill congratulated all of the winners of the primary election and said he appreciated all of the candidates who put their names in to run for office as it is a difficult task. Regular City Council Meeting August 24, 2022 Page 14 Mayor Hill announced that Council Member Dodd was awarded the Hometown Hero award at the recent Florida League of Cities Conference; and for the upcoming year, has been appointed to the Florida League of Cities Board of Directors which will ensure that Sebastian's voice will be heard throughout the State of Florida. He also announced that Council Member Dodd has been appointed president of the Treasure Coast League of Cities. D. Vice Mayor Jones - None E. Council Member McPartlan 22.098 i. Ask Indian River County to orovide input on items they would like to see in the Graves Brothers Annexation Ameement — This matter was addressed earlier in the meeting. Council Member McPartlan announced there would be a virtual and an in -person public meeting on the Florida Department of Transportation's Roadway Reconstruction and Widening Project of CR510 and CR512 on August 30 and 31. He invited the public to learn more about the project. He said he was contacted about a 91-year old Air Force veteran who had a water meter that ran rampantly. The County Administrator sent an employee out to the veteran's house to make sure the meter wasn't malfunctioning and provided an estimate for the next month's water bill. Additionally, Council Member McPartlan reported that the veteran was notified that his homeowner insurance was to increase. The Veterans Council of Indian River County planned to send someone out to see about replacing the veteran's roof which would significantly reduce his insurance. 17. Being no further business, Mayor Hill adjourned the Regular City Council meeting at 8:23 p.m. Approved at the September 13, 2022 Regular City Council Meeting ice Mayor Fred Jones ATTEST. 9aneae Williams, MMC— City Clerk Employee Benefits October 1, 2022 Renewal Presented By: 0GEHRING® GROU P A DIVISION OF RISK STRATEGIES Items for Discussion: Employee Benefits Program Summary 2. Industry Overview 3. 2022-2023 Renewal Process 4. Recommendation of Renewal 5. Questions Employee Benefit Program Summary • Medical Insurance — Currently with Florida Blue — High Deductible Health Plan (HDHP) o $1,500 Employee Only / $3,000 Family Deductible o $4,500 Employee Only / $9,000 Family Out of Pocket Max • City funded Health Reimbursement Account — City funds $2,500 for Employee Only / $5,000 for Family Coverage Dental and Vision Insurance — Currently with Humana • Life, Long Term Disability, and Employee Assistance Program — Currently with Lincoln Financial Group Industry Overview • ACA — Patient Centered Research Institute Fee $2.79 per member/year for 2022-23 Plan Year (was $2.66 last plan year) • 2022 Medical inflation at 7%-8% increase — Largely driven by expected hospital price inflation (Consolidation and mergers have given hospital systems greater bargaining power) — Growth of Medicare and Medicaid enrollment has put pressure on hospitals to replace lost income through higher rates for private payers — Greater medical utilization overall compared to the past 2 years (i.e. Elective surgeries) — Increased cost of goods and services — The high cost of specialty drugs remains a challenge • On a positive note, consumers have shifted more towards telemedicine and Urgent Care centers vs ER visits, saving health plans money 2022=2023 Renewal Process • Medical Insurance: — Florida Blue initially proposed 14% increase — Gehring Group negotiated to 5.0% increase with no plan changes • Dental Insurance: — Humana proposed 0% increase on Base and Buy -Up plans with no plan changes • Vision Insurance: — Last year Humana included a multi -year rate guarantee so no increase to rates through 10/1/23 • Life, Long Term Disability, and Employee Assistance Program — Last year Lincoln included a multi -year rate guarantee so no increase to rates through 10/1/23 2022=2023 Recommendation • Accept Florida Blue's medical renewal at 5% overall increase — The City currently has high claimants with ongoing chronic conditions. Changing carriers could cause a disruption in ongoing treatment. — The City switched from United Healthcare to Florida Blue in 2017. At the time, United Healthcare was proposing a 21.8% increase. Since switching to Florida Blue, the City's average increase has been 2.8% — During the 2021 calendar year, the plan realized an average network savings of 80.1% • Accept Humana's dental renewal at no increase guaranteed for 12 months • Previously approved rates for vision, life, long term disability and EAP lines of coverage remain in effect through 10/1/2023 Questions? City of Sebastian Employee Benefits Executive Cost Summary Effective Date: October 1, 2022 CURRENT FINAL RENEWAL GEHRING GROUP A RISK STRATEGIES COMPANY memtil IpO1 tmployer employee total Grlplpyer tKn Cmpmyee Employee Only 56 $575.61 $550.61 $25.00 $601.34 $576.34 96% $25.00 $0.00 Employee +Spouse 10 $1,369.96 $1,051.30 $318.66 $1,371.06 $1p42A0 76% $329.06 $5.20 Employee +Child(ren) 25 $1,105.17 $896.81 $208.36 $1,202.68 $962.16 80% $240.52 $16.08 Employee+ Family 19 $1,841.96 $1,347.66 $494.30 $1,924.30 $1,407.90 73% $516AD $11.05 Annual Premium 110 $1,302,723 $11onA75 $230,248 $1,368,172 $1,121,991 $246,181 Health Reimbursement Amount Total Employer Employee Total Employer Employee Employee Only 56 $2,501DW $2,500.00 $0.00 $2,500.00 $2,500A0 107% $0.00 $0.00 Employee + Spouse 10 $5,C00.00 $5,000A0 SO.DO $5,000.00 $5,000.00 300% $0.00 $0.00 Employee+ Child(rem) 25 $5,000.00 $5,000.00 $0.00 $5,000.00 $5,000.00 100% Saw $0.00 Employee + Family 19 $5,000.00 $5,000.00 $0.00 $5,000.00 $5,000A0 100% $0.00 $Ow Annual Funding 110 $410,000 $630,000 $0 $41DAN $410,000 $0 Dental - ease Plan Total Employer Employee Total Employer ER% Employee Employee Only 44 $32.22 $32.22 $0.00 $32.22 $32.22 100% $0.00 $0.00 Employee+Spouse 11 $65.04 $48.62 $16A2 $65.04 $48.62 75% $16.42 $0.00 Employee+ Chlld(ren) 21 $89.33 $60.77 $28.56 $89.33 $60.77 68% $29.56 $0.00 Employee + Family 18 $122.15 $77.19 $44.96 $122.15 $77.19 63% $44.96 $0.00 Annual Premium 94 $74,1193 $55,417 $19,076 $74,493 $55,417 $19,076 Dental - Buy Up Plan Total Employer Employee Total Employer ER% Employee Employee Only 6 $39.06 $32.22 $6.84 $39.06 $32.22 82% $6.84 $0.00 Employee + Spouse 9 $78.84 $48.62 $30.22 $78.84 $48.62 62% $30.22 $0.00 Employee+ Child(ren) 4 $109.29 $60.77 $47.52 $108.29 $60.77 56% $47.52 $0.00 Employee + Family 2 $148.07 $77.19 $70.88 $148.07 $77.19 52% $70.88 $0.00 Annual Premium 21 $20,079 $12,340 $7,738 $20,079 $12,340 $7,738 Vision Total Employer Employee Total Employer ER % Employee Employee 56 $3.78 $3.78 $0.00 $3.78 $3.78 100% $0.00 $0.00 Family 62 $11.30 $7.54 $3.76 $11.30 $7.54 67% $3.76 $0.00 Annual Premium 118 $10,947 $8,150 $2,797 $10,947 $8,150 $2,797 Basic Life and AD&D Total Employer Employee Total Employer ER% Employee Total Rate/$1,000 $0.238 $0,238 $0.000 $0.238 $0.238 100% $0.(X0 $0.000 Estimated Volume $1,978,500 $1,978,500 Annual Premium $5,651 $5,651 $0 $5,651 $5,651 $0 $Increase/(Decrease) N/A N/A N/A $0 $0 $0 %Increase/(Decrease) N/A N/A N/A 0.0% DUN; 0.0% Long Term Disability Total Employer Employee Total Employer ER% Employee Total Rate/$300 $0.317 $0.317 $0.000 $0.317 $0.317 300% $0.000 $0.00 Estimated Volume $411,894 $411,884 Annual Premium $15,668 $15,668 $0 $151668 $15,60 $0 $Inceease/(Decrease) N/A N/A N/A $0 $0 $0 %Increase/(Decrease) N/A N/A N/A 0.0% 0.0% 0.0% Employee Assistance Program Total Employer Employee Total Employer ER% Employee Rate PEPM 125 $1.32 $1.32 $0.00 $1.32 $1.32 100% $0.00 $0.00 Annual Premium 125 51.980 51.980 50 51.980 51.980 50 2023 Budget and Capital Program Recommended 2023 Budget and Capital Program Wednesday, August 24, 2022 Prepared By: Ken Killgore Administrative Services Director/CFO 1 2023 Budget and Capital Program o Summary of General Fund Budget. o Enterprise and Other Funds. • Capital Improvement Program • Property Values and Millage •Other Considerations. Draft FY2023 General Fund Budget Versus Amended FY2022 Budget 834,455 Personnel Costs 243,818 Operating Expenditures 75,861 Capital Spending (392,708) Transfers to Other Funds 761,426 Increase in Budget — 5.29% 3 Draft FY2023 General Fund Budget Personnel Up $834,455 o Health Insurance At a 5% Increase. o Personnel Cost at Current Pay Rates. (Includes Those Brought to Minimums) o Adding Eight Full-time Positions. o Adding One Part-time Position. o Deleting One -Part-time Position Draft FY2023 General Fund Budget Personnel Additions/Deletions o Eight Full-time Additions Assistant City Manager Human Resources Assistant Three Police Officers Construction Specialist Planner and GIS Technician o +One Part-time Mechanic o -One Part-time City Clerk Clerical Asst. 9 Draft FY2023 General Fund Budget Operating and Interfund Transfers o Operating Up $243,818 Due To: $107,272 in MIS for P/W Complex and Software to Counter Cyber Threats. $131,163 in P/W for Complex Electric and Rent. o Capital Up$75,861 From ParksEquipment. o $358,962 Decrease in Fund Transfers Due to 2022 Transfers for Yacht Club Seawall. n Draft FY2023 General Fund Budget Revenue Assumptions o Proposed Millage of 3.0043 is Necessary to Balance Revenue to Expenditures. Made Change for Starting Pays Based on the Compensation Study. Added Planner and GIS Technician. Removed CFO Retirement Payouts. Added Franchise and Utility Tax Revenues. Draft FY2023 Enterprise Funds: Golf Course o Revenues Have Been Good This Year and Budget Assumes This Will Continue. o Expenses Include $106,065 For City Services and $106,135 for Airport Rent. o $36,209 Payment on $700,000 Building Fund Loan and $35,000 on General Fund Loans. o Expecting Sixth Year on Golf Carts But Will Be Ordered in 2023 for Delivery in 2024. 0 Draft FY2023 Enterprise Funds: Airport o Property Rental Revenue Covering Operating Cost and Loan Payments to DST Fund. o Loans From Discretionary Sales Tax Fund: Hangar A $285,000 - $253,172 By 9/30/22. Hangar B $267,511 - $249,575 By 9/30/22. o Grant Matching From DST Fund: $579,273 in 2023 For Square Hangars and Half of Rehabilitation of Runway 05-23. $1,305,258 Over the Following Four Years For Rest of Runway 05-23, Taxiway Alpha Apron, Taxiway Golf, Shade Hangar and Runway 13-31. A Draft FY2023 Enterprise Funds: Building o Permit Revenue Continues at High Levels. o Covering Personnel and Operational Cost. o Adding Plans Examiner and Permitting Technician in Event They Can Be Hired. o Expecting $36,209 Principal and Interest Payment on Golf Course Loans: $700,000 Loan Will Be $553,963 By 9/30/22. $559,684 Loan To Be Paid After the $700,000. 10 Draft FY2023 Special Revenue Funds o American Rescue Plan Act Fund: Promised Funding Totally Received. Allocated to Gardenia Ditch, Schumann Drive, Concha Dam, Employee Retention Payments and Road Improvements. Must Be Obligated by December 31, 2024 and Totally Spent by December 31. 2026. Improvement Projects Need Plans and Permitting Which Require Some Time. 11 Draft FY2023 Special Revenue Funds o Local Option Gas Tax: Collections 3.03% Above Same Months of Last Year. Projecting 3.5% Annual Increases. Road Improvements Are Pending Update to Road Assessment Study. o Providing $250,000 Annually for Reconstruction. o Providing $600,000 Annually for Repaving. o Providing $75,000 Annually for Sidewalks. Will Make Final Payment of $122,174 on Bank Notes December 1, 2022. 12 Draft FY2023 Special Revenue Funds o Discretionary Sales Tax: Collections This Year Up 20.5%. Using 3.0%. Funding for: oMIS Infrastructure. oPolice Vehicles and Equipment. oRoads Division Heavy Equipment. oEmergency Generator & New A/C Units oStormwater Equipment/Infrastructure. oMatching Funds for FAA and MOT Grants. 13 Draft FY2023 Special Revenue Funds: o Riverfront CRA Fund: Operating Expenditures: oAudit Fees, Administration, Landscaping, Waterfront Renovations, Other Facility Maintenance, and Submerged Land Leases. oTravei and Education Cost, Legal Ads, State Fee, Association Dues and Landfill Fee. Special Events Kiosk Signs in 2023 and Riverfront Event Space in 2025. 14 Draft FY2023 Special Revenue Funds: o Recreation Impact Fee Fund: Unspecified Improvements ($5K per Zone). Swing/Bench Park at Harbor Lights is Scheduled for 22-23. Future Playground/Park Improvements: o23-24 Creative Playground. o24-25 Bryant Court Park. o25-26 Hardee Park and Schumann Park. o26-27 Community Center and Friendship Park. o27-28 Riverview Park. 15 Draft FY2023 Special Revenue Funds: o Stormwater Utility Fund: Added P/T Inspector. Cut 2 Maint. Workers. Capital Purchases and Projects: o Replacing Crew Truck. oAeration Fountain at Cownie Pond. oStonecrop Drainage Phase II and Canal Restoration with Grant and DST Fund Match. oTulip Road Crossing, Bayfront Road Crossing and Ocean Cove with DST Funding. oGardenia Ditch, Schumann Drive and Concha Dam with American Rescue Plan Funding. 16 Draft FY2023 Special Revenue Funds: o Law Enforcement Forfeiture Fund: Used Only for Unbudgeted Items. Specific Items Need City Council Approval. Current Balance is $52,692. o Parking In Lieu Of Fund: Current Balance is $87,466. Expecting $97,665 Year End 2022 Balance. 17 Draft FY2023 Trust Fund o Cemetery Trust Fund: of Sales on Operations and Maintenance: oAllocation for Grounds Improvements. oReplacement of Chain Link Fencing. oReplacement of Mower. of Sales Expendable on Expansions or Cost Incidental to Adding Future Sites: oFunds Columbarium Niches in FY 24-25. Looking at Market Rate Adjustment. 18 Draft FY2023 Debt Service o Stormwater Bank Note Final Payment by DST Fund Was Made in May 2022. o Paving Improvement Note Final Payment by Local Option Gas Tax Due 12/01/22. o 60 Month Lease Purchase of Police Camera System to Mature on May 2025. o 60 Month Lease Purchase of Required Police VxRail Security System Software to Mature in March 2025. 19 Capital Improvement Program o $55.1 Million Over 6 Years. o Largest Items for Next Fiscal Year: s $1,460,586 Stonecrop Drainage. • $11,500,000 Canal Restoration. $1,000,000 Square Hangars. $1,585,455 Runway 05-23 (1st of 2 Years). o $14,265,631 of $20.2 Million (70.5%) Next Year to be Funded by Grants. 20 Different Millages & Affecting Factors DR420 Rolled Equal to Same As Last Year Back Expense Last Year Millage 3.0043 2.6834 0.00% 2.8658 6.80% 3.0043 11.96% Tax Revenues $ 4,621,435 $ 4,680,267 $ 4,998,401 $ 5,239,967 Incremental Difference $ 58,832 $ 318,134 $ 241,566 Added Revenues $ 58,832 $ 376,966 $ 618,532 Factors Affectinq Added Revenues: From Additions $ 123,602 $ 132,004 $ 138,384 From Reassessments 474,077 506,301 530,770 From Millage Change (488,543) (210,855) - From DR422 Final Adjustment in 2022* (50,304) (50,484) (50,622) Added Revenues $ 58,832 $ 376,966 $ 618,532 * We budgeted Tax Revenues at $4,521,435 in 2022 based on the DR-420 Certified Tax Roll of $1,585,849,128, Tax Assessor issued the DR-422 Final Tax Roll for $1,584,816,281, a $1,032,847 reduction of (.15%). We may only receive $4,573,792 vs. the $4,621,435 in 2022, a $47,643 difference. This reduces 2022 by $47,643, plus the change due to the millage. 21 Property Values and Millage: Taxable Value Additions Dollar Value of Tax Roll Additions: 2022 47,981,095 2021 32,716,715 2016 25/763/700 2020 33,685,698 2015 25/492/245 2019 23/351/814 2014 19,914,805 2018 15/998/366 2013 9/435/090 2017 35,951,704 2012 7/462/986 Additions Yield in 2023: $123,602 at 2.6834, $132,004 at 2.8658 and $138,384 at 3.0043. 22 Property Values and Millage: 3.0043 in 2022 Versus 2.8658 and 3.0043 1. 03% On Homestead: 3.0043 2.8658 3.0043 ASSESSED VALUES $200,000 $206,000 $206,000 TAXABLE VALUES $150,000 $156,000 $156,000 TAXES $451 $447 $469 CHANGE ($4) $18 10% On Others: 3.0043 2.8658 3.0043 $200,000 $220,000 $220,000 $200,000 $220,000 $220,000 $601 $630 $661 $29 $60 ASSESSED VALUES $250,000 $257,500 $257,500 $250,000 $275,000 $275,000 TAXABLE VALUES $200,000 $207,500 $207,500 $250,000 $275,000 $275,000 TAXES $601 $595 $624 $751 $788 $826 CHANGE ($6) $23 $37 $75 ASSESSED VALUES $300,000 $309,000 $309,000 $300,000 $330,000 $330,000 TAXABLE VALUES $250,000 $259,000 $259,000 $300,000 $330,000 $330,000 TAXES $751 $742 $778 $901 $946 $991 CHANGE ($9) $27 $45 $90 23 Millage Setting 16 Year History At or Below Rolled -Back 11 Years - 68.8% of the Time 4.0000 - 3.8000 - 3.6000 3.4000 3.2000 3.0000 2.8000 2.6000 2.4000 2.2000 2.0000 2007 ❑Rolled -Back 3.0519 ■ Final 3.0519 (22% Lower Than 2015 and Just 2% Above 2020) 200E 2( 3.2121 3." 2.9917 , 3.5 09 646 456 10 03E 45( 2c 3.9 3.3 l (3.78 20 3.53.7 I 44( 551 2016 2i 3.6290 3.( 13.8556 3.F ll 70( 00( 201E 3.4931 3.400( 1019 2021 2022 2020 3.1514 2.9390 2.8090 3.0043 3.1514 2.9399 3.1514 3.0043 24 Other Considerations o Labor Agreements Not Yet Negotiated. (Only Adjusted Those Below Minimums.) o High Revenues and Budget Savings Have Increased General Fund Reserves the Last Few Years But Will This Continue? o 3.0043 Millage Is 11.96% Above the Rolled -Back Rate But Tax Bill Will Be Up: 3.6% to 4.0% on Homestead Properties. 10% for Others or Less If Assessed Values Increased Less Than 10% Maximum. 25