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Home My WebLink About09-13-2022 CC Minutesan1� SEBAS.T HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL REGULAR CITY COUNCIL MEETING AND FIRST PUBLIC HEARING ON THE MILLAGE AND BUDGET TUESDAY, SEPTEMBER 13, 2022 — 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA MINUTES 1. Vice Mayor Jones called the Regular Meeting to order at 6:00 p.m. 2. A moment of silence was held. 3. Vice Mayor Jones led the Pledge of Allegiance. 4. ROLL CALL Vice Mayor Fred Jones Council Member Ed Dodd Council Member Bob McPar lan Council Member Chris Nunn Absent: Mayor Jim Hill (excused) 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 Leisure Services Director Brian Benton Community Development Director Lisa Frazier Community Development Manager Dom Bosworth City Engineer/Public Works Director Karen Miller Airport Manager Jeff Sabo Police Lieutenant Rob Vafiades 5. PROCLAMATIONS. AWARDS. BRIEF ANNOUNCEMENTS A. Proclamation - Constitution Week - Sentember 17-23. 2022 - Rhonda Rigaud. Chanter Regent. Treasure Coast Societv of the Daughters of the American Revolution Council Member Dodd read and presented the proclamation to Ms. Rigaud. He invited the public to visit the Freedom Shrine displayed in the downstairs hallway. Regular City Council, I" Budget Hearing & BOA Meeting September 13, 2022 Page 2 B. Pediatric Cancer Awareness Month — Sentember 2022 — Yesica Jute Council Member Dodd read and presented the proclamation to Ms. Jute. C. Harmer Action Month — September 2022 - Sherry Sienfried and Maureen Pringle. Treasure Coast Food Bank Council Member Nunn read and presented the proclamation to Ms. Siegfried, Ms. Pringle, and Tristan Siegfried. D. Citizens Ennanement Survev - David Harrowood. Baldrine Grout). LLC Mr. Harrowood presented a PowerPoint presentation on the recently conducted survey. (See attached) BriefAnnouncements: Wednesday, September 14th — Sebastian River High School Homecoming Parade — Indian River Drive from Main Street to Riverview Park — 5: 30pm — 7: 00pm Sunday, September 18th — Sebastian Elks Lodge Community Fun Day —1: OOpm to 4: 00pm - Sebastian Police Department Community Outreach will be serving snowcones and popcorn. There will be activities, games, and prizes Vice Mayor Jones announced the upcoming events noting the Homecoming Parade would be at 6:00 p.m. instead of 5:30. 6. AGENDA MODIFICATIONS There was no objection to Council Member Nunn's request to add the approval of Council travel to the 2022-2023 Legislative Policy Committee meetings to the Consent Agenda. 7. PUBLIC HEARINGS A. Public Hearine and Second Readine Ordinance No. 0-22-07 — Petition for Voluntary Annexation — The Graves Brothers Comnanv (Transmittal. 0-22-07. Ex. la& lb) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PROVIDING FOR THE VOLUNTARY ANNEXATION FOR LAND CONSISTING OF 1984.22 ACRES, MORE OR LESS, LOCATED SOUTH OF COUNTY ROAD 510 ROW, WEST OF LANDS ADJACENT TO THE 74th AVE ROW, NORTH OF 69th STREET ROW, AND EAST OF 901h AVE ROW; PROVIDING FOR THE EXTENSION OF THE CORPORATE LIMITS AND BOUNDARIES THEREOF; PROVIDING FOR INTERIM LAND USE AND ZONING CLASSIFICATION; PROVIDING FOR Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 3 SCRIVENER'S ERRORS; PROVIDING FOR CONFLICT AND SEVERABE,ITY; AND PROVIDING FOR AN EFFECTIVE DATE. Vice Mayor Jones opened the public hearing and Council Member Nunn made a motion to table this item to December 14, which was seconded by Council Member Dodd. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member MCPaRIan - aye Council Member Nunn - aye Mayor Hill -absent Motion carried. 4-0 B. PUBLIC HEARING/ADOPTION OF TENTATIVE MILLAGE AND FY 2022/2023 BUDGET City Attorney Advises City Council on Procedure for Millaee/Budeet Hearing and Reads Titles of Resolutions No. R-22-22 on Tentative Millaee and R-22-23 on Tentative Budeet The City Attorney informed every one of the process to adopt the tentative millage and budget in accordance with F.S.200.065 and read the titles of Resolution Nos. R-22-22 and R-22-23. (See attached script) ii. City Manager Announcement that the Millaee of 2.9050 is 8,26% above the computed "Rolled -Back Rate" of 2.6834 and only sufficient to maintain current spending levels for General Fund without changes for wage increases and is recommended for Citv Council aooroval as the Tentative Millaee which is required to be adooted in accordance with State Statutes The City Manager asked Council to consider the adoption of a tentative 2.9050 millage rate which is 8.26% above the rolled -back rate which is a reduction of the first tentative millage rate of 3.0043 that was set in August. iii. Budeet Overview of Tentative Millaee. Tentative Budeet and Capital Improvement Proeram by CFO Ken Killeore (PPT) The CFO stated the Citizens Budget Review Committee met last night to review the changes made since the budget was first introduced to them in July. He presented a PowerPoint going over the City's planned general fund expenditures, the enterprise funds, the special revenue funds, trust funds, the debt obligations, and capital improvement funds. (See attached) Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 4 iv. Vice Mavor Jones ovens the Public Hearine on Tentative Millaee and Tentative Budeet There was no public input. V. Consider Resolution No. R-22-22 for Tentative Millaee for Calendar Year 2022 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 2.9050 MILLS FOR THE CALENDAR YEAR 2022; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Council Member Nunn and SECOND by Council Member MCParthm to approve Resolution No. R-22-22. Council Member Dodd asked how much the City has in reserves today. The CFO responded $6.6M with a $5M level is set aside for emergencies, hurricane recovery and staff buyouts. He explained that the financial policy describes that anything in excess of $5M should be available for replacing and repairing the City's facilities and for anything that might come up that isn't funded; as well as future projects such as the public works compound. He said the CAFR shows that $IM would be needed for everybody that is eligible to receive their payout amounts should those employees choose to leave the City. Council Member Dodd asked if an increase comes out of the union negotiations, would that too come out of the reserves. The CFO confirmed it would. Council Member Dodd said he asked in 2016, what was the minimum reserve that they have to keep before they begin raising taxes to rebuild the reserve. His concern is that they are talking about increasing the millage rate to 2.905 which doesn't give them any leeway to build on the reserve account. He asked if there was sanity in going with the 3.043 in an effort to cover those costs without negatively affecting the reserve account which already has a lot of stuff going against it. The CFO explained the City's adopted financial policy that speaks about when the reserve goes $3.5M the City should try to build into the next year's budget a mechanism to pay back 25% of that difference which would impact the following and future year's tax rate until the City had recovered from the deficit. He also explained that for the last three years, the revenues have come in higher than the expense levels which can be considered a built in cushion for the City's ongoing obligation. Regular City Council, I" Budget Hearing & BOA Meeting September 13, 2022 Page 5 Council Member Dodd said he doesn't want to increase the millage rate but only understand what they might be getting into. The CFO said the City does use the DST and direct impact fees to the extent there are improvements being made which frees up monies for repairs. He closed his remarks to say tonight was a tentative millage rate that can be changed at the next hearing but cannot go over the proposed millage of 3.0043 turned into the state in. Vice Mayor Jones said the millage rate at 2.9050 is sufficient from what he has seen and the conversations he has had. Roll call: Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Vice Mayor Jones - aye Mayor Hill - absent Motion carried. 4-0 vi. Consider Resolution No. R-22-23 for Fiscal Year 2022/2023 Tentative Budget A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2022 AND ENDING SEPTEMBER 30, 2023; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR PRINCIPAL AND INTEREST PAYMENTS ON INDEBTEDNESS OF THE CITY, IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING FUND, AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. There was no public input. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve Resolution No. R-22-23. Roll call: Council Member McPartlan - aye Council Member Nunn - aye Vice Mayor Jones - aye Council Member Dodd - aye Mayor Hill - absent Motion carried. 4-0 Regular City Council, V Budget Hearing & BOA Meeting September 13, 2022 Page 6 vii. Vice Mayor Jones announced the Final Public Hearing on Millage and Budget will be held on September 28, 2022 at 6:00 p.m. C. Public Hearing and First Reading Ordinance No. 0-22-06 — Pr000sing Amendments to Land Development Code Article V by Adding Zoning District Regulations for RM-10 Relating to Medium Densitv Multiole Familv, Residential Uses: Amending Article VI by Amending Conditional Use Criteria Relating to RM-10 Medium Densitv Multiole Familv Residential Uses: Amending Article XV Parking Recdvements Relating to Medium Densitv Multiole Familv Residential Uses. — Set Second Reading and Public Hearing for November 21. 2022 (Transmittal. 0-22-06) AMENDING THE LAND DEVELOPMENT CODE BY ADDING SECTION 54-2- 5.2.4A, NEW ZONING DISTRICT REGULATIONS FOR RM-10 RELATING TO MEDIUM DENSITY MULTIPLE FAMILY RESIDENTIAL USES; AMENDING LAND DEVELOPMENT CODE SECTION 54-2-6.4 BY AMENDING CONDITIONAL USE CRITERIA RELATING TO RM-10 MEDIUM DENSITY MULTIPLE FAMILY RESIDENTIAL USES; AMENDING SECTION 54-3-15.2 PARKING REQUIREMENTS RELATING TO MEDIUM DENSITY MULTIPLE FAMILY RESIDENTIAL USES; PROVIDING FOR SEVERABILITY AND REPEAL OF RESIDENTIAL USES; PROVIDING FOR SEVERABILH'Y AND REPEAL OF LAWS IN CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title to Ordinance No. 0-22-06. The City Manager said this code change would help with affordable housing. The Community Development Director said this was part of the updated comprehensive plan which calls for a new zoning district that provide a maximum density of 10 units per acre as well as a variation of housing. There was no public input. MOTION by Council Member MCPartlan and SECOND by Council Member Nunn to pass Ordinance No. 0-22-06 on first reading. Roll call: Council Member Nunn -aye Vice Mayor Jones -aye Council Member Dodd - aye Council Member MCPanlan - aye Mayor Hill -absent Motion carried. 4-0 D. Public Hearing and Second Reading Ordinance No. 0-22-01 — Proposing an Amendment to Code of Ordinances Chanter 34 — Cemeteries: Soecifically Amendine Sec. 34-11. 34-23. 34-26. and 34-59: and Creating Sec. 34-60 (Transmittal. 0-22-01) Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 7 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PERTAINING TO THE CITY OF SEBASTIAN CODE OF ORDINANCES CHAPTER 34 CEMETERIES; AMENDING SEC. 34-11 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 SEVERABH.rFY; 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 said this ordinance had not changed since the first reading in August but noted it did provide a provision that rates would be established by resolution and subject to change from time to time. He requested approval. MOTION by Council Member Dodd and SECOND by Council Member Nunn to approve Ordinance No. 0-22-01. There was no public input. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill -absent Motion carried. 4-0 E. Public Hearing — Consider Waste Management's Request to Increase to Residential Collection Rates (Transmittal. Article 12. Waste Management's Request, PPT) Vice Mayor Jones opened the public hearing at 6:57 p.m. The City Manager said that Waste Management has given the City a proposal to raise the rates 26.9%; however he would only recommend a 15% increase based on his calculations. He advised that the contract did entitle them to at least a 3% increase but the actual amount would be at the discretion of Council. He introduced Debbie Perez, Government Affairs Manager, who gave a PowerPoint presentation describing the extraordinary inflationary costs the company has been incurring for the past couple of years. (See attached) Ms. Perez said Waste Management wanted to be a continued partner and would appreciate any consideration. Council Member Nunn said he has received a lot of calls and messages that the residents are unhappy with the service and he could not give such an increase. He said he would like to hear from the other three Council Members. Regular City Council, V Budget Hearing & BOA Meeting September 13, 2022 Page 8 Vice Mayor Jones noted the increase was for the whole company, not just our area. He was happy with the number that staff recommends. Council Member Dodd said he appreciated the position that Waste Management is in; he would be in favor of the 15% until the new contract goes out to bid. Council Member McPartlan said spoke to Ms. Perez and Mr. DeLaCruz recently who described to him some of the complaints. For example, putting the trash can exactly back where it was set out, or the can fell over but the senior customers couldn't pick it back up. He said many people don't understand the things that the drivers will do for the customersincluding putting the can back on the side of a resident's house. He said he was okay with the increase. Public Input Bill Simmons, Drawdy Way, said approximately 2%2 % of the increase was to be for salaries and he asked what the City's employees would be receiving. MOTION by Council Member Dodd and SECOND by Council Member McPartlan to approve the City's recommendation of a 15% increase for Waste Management. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill - absent Motion carried. 4-0 Vice Mayor Jones called for a recess at 7:15 p.m. and upon return at 7:24 p.m., all members were present. 8. Vice Mayor Jones recessed the City Council meeting and convened the Board of Adjustment at 7:25 p.m. A. A motion was made by Mr. McPartlan and seconded by Mr. Nunn to approve the June 8, 2022 BOA meeting minutes. B. RONALD AND JANET ZOLL, IN REGARDS TO LOTS 13 AND 14, BLOCK 335, SEBASTIAN HIGHLANDS UNIT 13, LOCATED AT 1493 BEVAN DRIVE, IS REQUESTING A VARIANCE TO ALLOW THE ROOF MATERIALS OF AN ACCESSORY STRUCTURE THAT IS OVER 750 SF IN SIZE TO BE DIFFERENT THAN THE PRINCIPLE STRUCTURE WHEREAS THE LAND DEVELOPMENT CODE SEC. 54-2-7.5(c) (7) REQUIRES THE MATERIALS TO BE THE SAME. The City Attorney read the request by Mr. and Mrs. Zoll. Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 9 There were no ex parte communications to disclose by the board members. The City Clerk swore in those who would be providing testimony. Mr. Zoll stated the main house is 20 years old and it was time to replace the roof. He would like to replace it with a metal roof which will last longer and hold up better however he has a shingled garage that does not need to be replaced for another ten years. He said the garage is 26 feet away from the house, in the back, and blocked by trees; he is retired and on a fixed income consequently he is requesting a variance from the code requiring the roofs to match. He presented a petition signed by 13 of his neighbors indicating they didn't have a problem if the roofs didn't match. (See attached) The Community Development Manager asked that the staff report and board criteria requirements be entered into the record. She also disclosed that staff received a letter from one of his neighbors at 1491 Bevan Drive stating that she was okay if the roofs did not match. The Community Development Manager presented that Mr. ZoB is seeking a building permit to re -roof his house. In 2013 he went before the Planning and Zoning Commission to receive approval for his 26 fl x 30 R custom garage which required the roofs to be similar or matching to the house to prevent industrial looking buildings in the residential neighborhoods. She noted it is Mr. Zoll's choice to choose the metal roofing as opposed to asphalt shingles and come before the board for the variance. She went over the board criteria required to meet the variance and said staff was recommending denial. (See attached) Mr. McPartlan asked if the board could approve metal roof for the house and when the garage roof gives out, require it to match at that time. Mr. Dodd said if they approve this, there will be any number of residents to come forward especially since the insurance companies are forcing the replacement of a lot of roofs right now. There are considerations on both sides of this. The Community Development Manager said she wasn't sure if the board could put a covenant on the property by requiring the garage to be a metal roof in the future. The City Manager said the challenge becomes if Mr. Zoll was to sell the property, how the City would ensure the new owner will match the roofs. The City Attorney said he concurred with the Community Development Manager and the City Manager and noted the code requires that they must follow the criteria and he didn't see how they could enforce changing the roof material on a new property owner. In response to Mr. Nunn, the Community Development Manager said when permits come in for roofing a house there isn't any information on the application asking there is a Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 10 matching accessory structure. Staff had only caught this application because the custom garage went before Planning and Zoning Commission. Mr. Nunn said while there is a code that the accessory structure must match the main dwelling, but there isn't a code that if you re -roof your house, you must now re -roof the accessory structure. The challenge is that the City is aware of the accessory structure and in the future the disclosure of an accessory structure might be added to the building permit application. He stated that maybe it could be approved based on the fact there isn't a code saying that when re -roofing a house it has to match the accessory structure. The code deals with building a new accessory structure not with re -roofing the house. Vice Chairman Jones agreed, the code does speak to building the structure The City Manager said the intent of the code is that the accessory structure should match the ancillary structure. The Community Development Manager said the Cade provides that an accessory structure between 501 and 750 sq. ft. shall be compatible with the primary residence. In another case, there was an accessory structure that was just approved by the Planning and Zoning Commission with different materials with the condition that the applicant will paint the metal roof. Mr. Dodd said from what he is hearing that he was inclined to approve the variance. Mr. Nunn started to make a motion to approve. The Community Development Manager asked that a condition be that the metal roof be painted to match the garage roof. Mr. Zoll said it was his understanding that painted metal roofs have to be re -painted from time to time. He said that he would install a metal roof on the garage when it was needed. Mr. McPartlan noted that he didn't have a chance to speak to his wife about painting the metal roof. Mr. Nunn withdrew his motion. Gary Raymond said he supported Mr. Zoll's application. Mr. Nunn said this might be unenforceable or tough to enforce; they might have to go with the code. Kelly Dixon said there are lesser grades of metal that might be less expensive or a higher grade of shingles which might be a solution for the applicant. Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page I I Mr. Zoll said he would just like to get the metal roof; the detached garage has another ten years of life and when it goes, he will put a metal roof on it. He doesn't plan on moving. The Community Development Manager said staff recommended denial because it doesn't meet criteria; if it was approved staff recommended that the colors match. Vice Chairman Jones said he was concerned with difference in age with the roofs. MOTION by Mr. McPartlan and SECOND by Vice Chairman Jones to approve the variance at whatever color Mr. Zoll would like. Mr. Nunn said while you can put any kind of roof you want on your house but when you build an accessory structure, the code provides that it match. While it was not the friendly answer, he was concerned with the larger picture in making future decisions Mr. Dodd said while previously he was inclined to approve but upon reviewing the criteria with the Community Development Manager, he was probably going to vote no. Roll call: Mr. Dodd - nay Mr. McPartlan - aye Mr. Nunn - nay Vice Chairman Jones - aye Chairman Hill - absent Motion failed with a tie vote. 2-2 MOTION by Mr. Nunn and SECOND by Mr. Dodd to deny Mr. Zoll's request for a variance. Mr. Nunn said they were there to follow the code, there weren't any extenuating circumstances, and it was the right thing. Mr. McPartlan noted that Mr. Zoll could have just applied for the roofing permit. Roll call: Mr. McPartlan - nay Mr. Nunn - aye Vice Chairman Jones - aye Mr. Dodd - aye Chairman Hill - absent Motion carried. 3-1 9. Vice Chairman Jones adjourned the Board of Adjustment meeting and reconvened the City Council meeting at 8:07 p.m. 10. PUBLIC INPUT Terry McGinn said he believed in succession planning and there are some positions within staff that require education, skill and expertise that shouldn't be learned on-the-job Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 12 quickly such as the financial director, the city manager and city clerk. He said Council is being short sighted in not providing backup for the CFO and City Manager. He said with the upcoming election, they need to replace two out of the five council members to maintain the excellence they have been experiencing in the coming years. Vice Mayor Jones asked him to avoid his commentary on who should serve. Mr. McGinn said they should be committed to attending County and district meetings and be proactive in the support on what is happening in the County. Vice Mayor Jones advised that Council Members do attend those meetings. Mr. McGinn's final comment was that it was important that the public understood how the upcoming Community Development District (CDD) will impact the City. Vice Mayor Jones advised the CDD public hearing has been rescheduled to October 181h. Dr. Graham Cox said with regard to the Constitution Week Proclamation, he recommended that the public read the fascinating book First Principles: What America's Founders Learned from the Greeks and Romans and How That Shaped Our Country by Thomas E. Ricks. Dr. Cox commended the City for completing the quality of life survey and thanked Council for moving the annexation hearing to December. 11. CONSENTAGENDA A. Approval of Minutes — August 24, 2022 Regular City Council Meeting B. Approval of Minutes — August 26, 2022 Special City Council Meeting C. Resolution No. R-22-24 — Vacation of Easement Over Lots 44 & 63 as Shown on Replat Recorded in Plat Book 18, Page 2 - , 2625 Kelly Drive (Transmittal, R-22- 24, Site Map, Staff Report, Approvals, Application, Survey, Plat) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, VACATING EASEMENTS OVER LOTS 44 AND 63 AS SHOWN ON THE RECORDED PLAT FOR PARK PLACE PLAT 1 — REPLAT RECORDED IN PLAT BOOK 18, PAGE 2; PROVIDING FOR CONFLICTS HEREWITH; PROVIDING FOR RECORDING; PROVIDING FOR SCRIVENER'S ERRORS; PROVIDING FOR AN EFFECTIVE DATE. D. Authorize Council Attendance to the Low Impact Development Conference, October 21-22, 2022 in Rockledge, Florida (Transmittal, Event Prospectus) E. Approve the Purchase of One Mobile Concession Trailer for the Sebastian Police Department's Community Oriented Policing Endeavor (COPE) Unit from Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 13 Southwest Trailer Mfg., Inc. in the Amount of 32,694.95 (Transmittal, Bid Result, Quote) F. Approve the Purchase and Installation of the Toro Irrigation Computer Software and Related Parts for the Sebastian Municipal Golf Course Irrigation System — Expense to be Covered by the City's Insurance Carrier (Transmittal, Quote, Letter, Affidavit, Form) G. Approve the Second Amendment of the Airport Aviation Lease Agreement Dated February 10, 2021 between the City of Sebastian and Fishe Flying Corp., Inc. to Delete the Additional Rent of $261 per Month for Exclusive Use and Limited Improvements to the Aircraft Parking Apron in Front of Hangar "C" at the Sebastian Municipal Airport (Transmittal, Amendment) H. Approve Alcoholic Beverages for the Perez Family Event at the Community Center on September 17, 2022 from 3:00 p.m. to 7:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) 1. Approve Alcoholic Beverages for the Lloyd Family Event at the Community Center on September 24, 2022 from 4:00 p.m. to 9:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) J. Approve Alcoholic Beverages for the Espinoza Family Event at the Community Center on November 19, 2022 from 2:00 p.m. to 10:00 p.m. — Permittee DOB Verified (Transmittal, Application, Receipt) added K. Approve Council Travel to 2022-2023 Legislative Policy Committee Meetings (Transmittal) MOTION by Council Member McPartlan and SECOND by Council Member Nunn to approve Consent Agenda Items A-K. Roll call: Council Member Nunn - aye Vice Mayor Jones -aye Council Member Dodd - aye Council Member McPartlan - aye Mayor Hill - absent Motion carried. 4-0 12. COMMITTEE REPORTS & APPOINTMENTS - None 13. UNFINISHED BUSINESS -None 14. NEW BUSINESS Regular City Council, I" Budget Hearing & BOA Meeting September 13, 2022 Page 14 A. Resolution No. R-22-19 — Establishing New Cemetery Rates for In -Ground Lots. Cremains Lots. Columbarium Niches. Personnel Services. Corner Markers. Niche Vases. and Rings (Transmittal. R-22-19. R-08-27) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, REPEALING RESOLUTION NO. R-8-27, RELATING TO MUNICIPAL CEMETERY RATES; ESTABLISHING NEW CEMETERY RATES FOR IN - GROUND LOTS, CREMAINS LOTS, COLUMBARRIM NICHES, PERSONNEL SERVICES, CORNER MARKERS, AND NICHE VASES AND RINGS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILTTY; PROVIDING FOR SCRIVENER'S ERROR; AND PROVIDING FOR EFFECTIVE DATE. The City Attorney read the title to Resolution No. R-22-19. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve Resolution No. R-22-19. Vice Mayor Jones asked if the cost for a vase and ring should be noted at "at cost" instead of $139 so the City isn't held at the price of $139. The Leisure Services Director advised that was to let those interested know how much it would be. It would be revised to say "at market price." Council Member Nunn asked that the fee after 3:00 p.m. be clarified on the rate sheet. (page 212 of the agenda backup) There was no public input. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill -absent Motion carried. 4-0 B. Authorize the Revocation of the Selection of Ahrens Comoanies. Inc. as the Desim-Build Firm Chosen in Response to RFO 22-04 — Desian-Build Hangar "C" Office Improvements at Sebastian Municinal Aimort (Transmittal. R-21-28) The City Manager said the City received a grant for $35,000; the applicant was going to provide $35,000 for total of $70,000 to design the flight school and Hangar C but staff was not able to get the bid under $170,000 subsequently requiring the tenant to cover the additional costs. Staff was not comfortable requiring that of the tenant therefore staff was requesting the negotiations cease with the Ahrens Companies. Regular City Council, 1" Budget Hearing & BOA Meeting September 13, 2022 Page 15 MOTION by Council Member Dodd and SECOND by Council Member McPartlan to authorize the revocation the selection of Ahrens Companies, Inc. as the Design -Build Firm for Hangar C and office improvements at the Sebastian Municipal Airport. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn - aye Mayor Hill -absent Motion carried. 4-0 C. Resolution No. R-22-13 — FAA Almon Improvement Proiect Grant No. 3-12- 0145-020-2022 Reflectine Funds to Beein the Desimn Phase for the Rehabilitation of Runwav 5-23 and Authorize the Citv Manaeer to Execute the Aooroariate Documents (Transmittal. R-22-13. FAA Grant! A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT IMPROVEMENT PROJECT (AIP) GRANT AGREEMENT WITH THE FEDERAL AVIATION ADMINISTRATION FOR FUNDING THE DESIGN COST OF X26-SOG- 3-12-0145-020-2022 "DESIGN RUNWAY 05-23 REHABILITATION" AT THE SEBASTIAN MUNICIPAL AIRPORT; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Resolution No. R-22-13. MOTION by Council Member McPartlan and SECOND by Council Member Dodd to approve Resolution No. R-22-13. The City Manager noted it was a great opportunity to have the FAA cover 90% of the cost; the state cover 5%and the City pay $10,945 to rehabilitate the runway. Roll call: Council Member Dodd - aye Council Member McPartlan - aye Council Member Nunn -aye Vice Mayor Jones -aye Mayor Hill -absent Motion carried. 4-0 D. Authorize CSA #9 With Infrastructure Consultine and Eneneerine. Inc. to Provide Professional Eneineerine Services Relative to the Desian Rehabilitation of Runwav 5-23 at the Sebastian Municipal Aimort in the Amount of $218.893.00 (Transmittal. Agreement. Ex. A. PTGA Grant FAA Grant) The City Manager said the runway was beyond its useful life span. This first step was to design using the funds previously approved and then staff will go out to bid for construction. He asked for Council approval. Regular City Council, 1"Budget Hearing & BOA Meeting September 13, 2022 Page 16 MOTION by Council Member Nunn and SECOND by Council Member Dodd to approve CSA#9 with Infrastructure Consulting and Engineering, Inc. to design the rehabilitation of Runway 5-23. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member McPartlan - aye Council Member Norm -aye Mayor Hill - absent Motion carried. 4-0 15. CITY ATTORNEY MATTERS The City Attorney advised staff is moving forward with labor negotiations; the police have voted in International Union of Police Associations to begin negotiations on September 15 at 9:00 am then the Public Employees Relations Commission will approve the contract for the general employees and they will have an election to begin negotiations. 16. CITY MANAGER MATTERS - None 17. CITY CLERK MATTERS - None 18. CITY COUNCIL MATTERS A. Council M Council Member Dodd said at the Budget Advisory Review meeting it was referenced by a board member that there have been 17 years where the new millage rate for the next fiscal year was less than the millage rate for the prior fiscal year. It doesn't mean that they didn't increase taxes; it meant that the millage rate increased at a rate less than the previous year's millage rate. The interesting thing is the City has grown quite a bit and it was financed out of new construction. He said with regard to the citizen's survey, the City Manager has developed metrics on how the City staff is operating and with the results of the Citizens Engagement Survey he would like to sit down as a Council and develop a series of statements to go into the construction of a strategic plan. The mission statement drives the objective that Council wants and the City Manager drives those objectives into staff to accomplish those. He asked for a consensus if they should ask the City Manager to set that process up with members of the Chamber of Commerce and members of the citizenry to provide input. It was the consensus of Vice Mayor Jones, Council Member Nunn and Council Member McPartlan to set something up after the election. Regular City Council, I" Budget Hearing & BOA Meeting September 13, 2022 Page 17 Council Member Dodd asked if Council would like to discuss the proposed Community Development District (CDD) noting that Liberty Park will be the tipping point for Schumann Drive and Barber Street. He suggested they draft a response to the CDD attorney that the City would like to use some of the transportation impact funds to correct problems that are going to occur at Barber and Schumann. Vice Mayor Jones noted that Liberty Park was approved in 2008 and if they did a traffic impact study at that time, we need another one. It was the consensus of Council to have the City Manager contact the CDD attorney. Council Member Dodd thanked staff for their work on the annexation agreement. Staff is doing everything they can to protect the citizens and the owner of the property. B. Mayor Hill - Absent C. Vice Mayor Jones - None D. Council Member McPartlan Council Member McPartlan said recently he spoke about an elderly senior that the Veterans Council assisted with and he reported that in addition to helping her with her water bill and re -roofing her house, they installed grab bars for her safety in the bathroom. He encouraged those that might benefit from assistance to contact the Veterans Council. E. Council Member Nunn Council Member Nunn also reported that he worked with the Veterans Council to help a resident with two months of rent. The Council is there to help if needed. Council Member Nunn explained that discretionary sales tax (DST) funds are revenues received from people paying sales tax when they shop and the beauty of it is that tourists and visitors are contributing to the increased account as noted on page 33 of the agenda backup. 19. Being no further business, Vice Mayor Jones adjourned the Regular City Council meeting at 8:44 p.m. 4ATTE October 12, 2022 Regular City Council meeting. - , NCI-Uie_ i -ty J ette Williams, MMC—City Clerk CITY ATTORNEY'S SCRIPT FOR THE SEPTEMBER 13, 2022 ls` MILLAGE AND BUDGET HEARING Thank you Mr. Mayor, Vice Mayor & Council Members: This is the first of two (2) Millage and Budget Hearings. Tonight you are dealing with tentative millage and tentative budget. During the next Budget Hearing tentatively set for September 28, ZQ22, subject to Council approval, you will be considering the final millage rate and final budget. This Hearing is IAW Florida Statute 200.065 — Method of Fixing Millage. In Subsection (2) (c) which reads in part: "Prior to the conclusion of the hearing, the governing body of the taxing authority shall amend the tentative budget as it sees fit, adopt the amended tentative budget, re -compute its proposed millage rate and publicly announce the percent, if any, by which the re- computed proposed millage rate exceeds the rolled back rate computed pursuant to Subsection(]). That percent shall be characterized as the percentage increase in property taxes tentatively adopted by the governing body." Further, Subsection (2) (d) reads in part: "Within 15 days after the meeting adopting the tentative budget, the taxing authority shall advertise ... its intent to finally adopt a millage rate and budget " along with the final hearing date .... In no event may the millage rate adopted pursuant to this paragraph exceed the millage rate tentatively adopted pursuant to paragraph (c) ". Further, Subsection (2) (e) (1) indicates that in these Hearings: "The first substantive issue discussed shall be the percentage increase in millage over the rolled -back rate necessary to fund the budget, if any, and the specific purposes for which ad valorem tax revenues are being increased. During such discussion, the governing body shall hear comments regarding the proposed increase and explain the reasons for the proposed increase over the rolled -back rate. The general public shall be allowed to speak and to ask questions prior to adoption of any measures by the governing body. The governing body shall adopt its tentative or final millage rate prior to adopting its tentative or final budget." So while I am reading them together, the law requires that you must consider the millage rate first before the budget. So tonight you will be considering Resolutions No R=-22-22 & R-22-23 Read titles of two resolutions: R2T2 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 2.8658 MILLS FOR THE CALENDAR YEAR 2022; PROVIDING FOR CONFLICT, PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. R-22-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING ON OCTQBER I Z022=AND'1V�3I1VG SEPTEMBER $0, 2023; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, CAPITAL IMPROVEMENT FINDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING FUND, AS PROVIDED FOR IN ,SC IED:U. " :, "fit::';: ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR CONFLICT, PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. Nothing further Mr. Mayor! 2022 City of Sebastian Community Engagement Survey Objectives, Design Methods & Results 2022 City of Sebastian Community Engagement Survey Objectives & Survey Design Methods Survey Objectives 1. ID resident satisfaction overall quality of life in City of Sebastian 2. ID top factors that contribute to quality of life 3. ID new businesses to contribute quality of life 4. ID top investments to improve quality of life 5. ID top youth activities to improve quality of life 6. ID top methods residents seek information regarding the City of Sebastian news & events Survey Design • 12,000 plus city addresses • Included owners and renters • Addresses assigned random number • Sorted on random number • Mailed over 2,000 surveys • Confidential w/ no tracking to individual home address • Return envelope postage paid • Surveys returned City Hall • Surveys not opened by staff • We personally picked up surveys • 713 surveys returned • 95 percent confidence level How Would You Rate The Overall Quality of Life Within The City of Sebastian Only? (Do Not Consider Indian River County Sheriff, Fire Department, School District, Or Other County Services) 95.09% Resident Satisfaction Excellent Edit Response Response percent total 34.36% 245 60.73% 433 Fair 4.77% 34 Poor 0.14% 1 718 Responses Top 5 Factors That Contributed To Your Quality of Life Rating Within The City of Sebastian Parks Water Access City Location Public Safety Community Events Water Activities Cost of Living Environment Traffic Open Spaces City Services Walkability Healthcare Access Housing Shopping Fine Dinning Senior Services Economy Youth Services 7.8% 7.4% 5.6% 5.4% 2.8% 53.8% 50.3% 47.4% 45.1 % 39.0 % 32.2% 28.7% 25.8% 23.5% 17.1% 16.9% 14.8% 13.5% 70.9 % 718 Responses Top 5 Businesses / Establishments To Improve Quality of Life Within The City of Sebastian Indoor Dinning Entertainment Water Activities Hardware Sales Clothing / Department Stores Movie Theater Grocery Stores Coffee Shops Medical Services Eco Tourism Airport Services Take Out Food Banking Gas Stations Vehicle Repair Golf Dental Services Marine Repair Pharmacy 38.5% 35.0% 32.5 % 26.7% 21.9% 17.6% 15.7 % 15.1 % 13.2% 7 10.0% 7 8.1% -1 6.0% 4.6% 14.4% 2.4% 2.2% 47.7% 71.2% 62.9% 681 ResDonses Top 5 Investments City Should Focus On To Improve Quality of Life Within The City of Sebastian Drainage Improvement Roads 59.6% Parks 57.0% Police 46.5% Traffic Safety Sidewalks 29.5% Community Events 28.6% Streetlights 26.5 % Broadband 20.9% Events 18.4% Boat Trailer Parking 16.8% Boat Parking 12.2% Transportation - 10.5% 40.1 % 69.4% 695 ResDonses Top Methods You Receive Information About The City of Sebastian For News & Events City Website Facebook Blogs Newspaper Other 14.7% Electronic Message Board 5.9% COS TV - 4.5% 27.9 43.6 42.2 62.7 668 Responses How Would You Rate The Overall Quality of Life Within The City of Sebastian Only? (Do Not Consider Indian River County Sheriff, Fire Department, School District, Or Other County Services) 95.09% Resident Satisfaction Response Response percent total Excellent Edit 34.36% 245 Good 60.73% 433 Fair 4.77% 34 Poor 0.14% 1 Export Graph Statistics based on 713 respondent: 2023 Budget and Capital Program Recommended 2023 Tentative Budget and Capital Program Tuesday, September 13, 2022 Prepared By: Ken Killgore Administrative Services Director/CFO 2023 Budget and Capital Program o Summary of General Fund Budget. o Enterprise and Other Funds. o Capital Improvement Program o Property Values and Millage oOther Considerations. z Recommended FY2023 General Fund Budget Versus Amended FY2022 Budget $ 697,360 Personnel Costs 237,288 Operating Expenditures 45,861 Capital Spending (392,708) Transfers to Other Funds $ 587,801 Increase in Budget — 4.08% 3 Recommended FY2023 General Fund Budget Personnel Up $697,360 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 Zecommended FY2023 General Fund Budget Personnel Additions/Deletions o Seven Full-time Additions 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. 5 Recommended FY2023 General Fund Budget Operating and Interfund Transfers o Operating Up $237,288 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$45,861 From Parks Equipment. o $392,708 Decrease in Fund Transfers Due to 2022 Transfers for Yacht Club Seawall. N Recommended FY2023 General Fund Budget Revenue Assumptions o Proposed Millage of 2.9050 is Necessary to Balance Revenue to Expenditures. Change Has Been Made for Minimum Pay Based on the Compensation Study. Added Planner and GIS Technician. Removed Assistant City Manager. Added Franchise and Utility Tax Revenues. Recommended FY2023 Enterprise Funds: Golf Course Budget 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. Recommended FY2023 Enterprise Funds: Airport Budget 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. Recommended FY2023 Enterprise Funds: Building Fund Budget 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 Recommended FY2023 Budget 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 Recommended FY2023 Budget 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 11 2022. 12 Recommended FY2023 Budget 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 FDOT Grants. 13 Recommended FY2023 Budget Special Revenue Funds: o Riverfront CRA Fund: Operating Expenditures: oAudit Fees, Administration, Landscaping, Waterfront Renovations, Other Facility Maintenance, and Submerged Land Leases. oTravel 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 Recommended FY2023 Budget 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 Recommended FY2023 Budget 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 Recommended FY2023 Budget Special Revenue Funds: p:} 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 Recommended FY2023 Budget Trust Fund o Cemetery Trust Fund: of Sales on Operations and Maintenance: oAllocation for Grounds Improvements. oReplacement of Chain Link Fencing. oReplacement of Mower. Y2 of Sales Expendable on Expansions or Cost Incidental to Adding Future Sites: oFunds Columbarium Niches in FY 24-25. Looking at Market Rate Adjustment. Recommended FY2023 Budget 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 Recommended FY2023 to FY2028 Capital Improvement Program o $55.1 Million Over 6 Years. o Largest Items for Next Fiscal Year: * $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. Pill Different Millages & Affecting Factors DR420 Rolled Equal to Same As Last Year Back Expense Last Year Millage 3.0043 2.6834 0.00% $ 2.9050 6.26% 3.0043 11.96% Tax Revenues $ 4,621,435 $ 4,680,267 $ 5,066,772 $ 5,239,967 Incremental Difference $ 58,832 $ 386,505 $ 173,195 Added Revenues $ 58,832 $ 445,337 $ 618,532 Factors Affectinq Added Revenues: From Additions $ 123,602 $ 133,810 $ 138,384 From Reassessments 474,077 513,227 530,770 From Millage Change (488,543) (151,177) - From DR422 Final Adjustment in 2022* (50,304) (50,523) (50,622) Added Revenues $ 58,832 $ 445,337 $ 618,532 * We budgeted Tax Revenues at $4,621,435 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 202Z a $47,643 difference. This reduces 2022 by $47,643, plus the change due to the milloge. 21 Property Values and Millage: Taxable Value Additions Dollar Value of Tax Roll Additions: 2022 47/981/095 2021 32/716/715 2016 251763,700 2020 331685,698 2015 25,492,245 2019 23,351,814 2014 19/914/805 2018 151-9981366 2013 91435,090 2017 35/951/704 2012 7/462/986 Additions Yield in 2023: $123,602 at 2.6834, $133,810 at 2.9050 and $138,384 at 3.0043. 22 Property Values and Millage: 3.0043 in 2022 Versus 2.9050 and 3.0043 1. 03% On Homestead: 3.0043 2.9050 3.0043 ASSESSED VALUES $200,000 $206,000 $206,000 TAXABLE VALUES $150,000 $156,000 $156,000 TAXES $451 $460 $469 CHANGE $9 $18 10% On Others: 3.0043 2.9050 3.0043 $200,000 $220,000 $220,000 $200,000 $220,000 $220,000 $601 $639 $661 $38 $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 $603 $624 $751 $799 $826 CHANGE $2 $23 $48 $75 ASSESSED VALUES $300,000 $309,000 $309,000 TAXABLE VALUES $250,000 $259,000 $259,000 TAXES $751 $752 $778 CHANGE $1 $27 $300,000 $330,000 $330,000 $300,000 $330,000 $330,000 $901 $959 $991 $58 $90 23 5.0000 Millage Setting 11 Year History Rolled -Back 4 Years/Below 1 Years/Above 6 Years 4.5000 (At or Below Rolled -Bock 64.7% of the Time) 4.0000 3.5000 3.0000 - 2.5000 2.0000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Rolled -Back 3.0519 3.2121 3.3646 3.8038 3.9019 3.7311 3.5646 3.7398 3.5446 3.6290 3.6700 3.4939 3.1514 2.9399 2.8090 3.0043 2.6834 1Final 3.0519 2.9917 3.3456 3.3456 3.3041 3.3041 3.7166 3.7165 3.8556 3.8556 3.8000 3.4000 3.1514 2.9399 3.1514 3.0043 2.9050 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 2.9050 Millage Is 8.26% Above the Rolled -Back Rate But Tax Bill Will Be Up: Less Than 2% on Homestead Properties. About 6% for Others or Less If Assessed Value Increased Less Than 10% Maximum. 25 Petition Petition summary and Petition to allow a new metal roof installation on home without replacing shingle root on garage that is 26 fast from home background (separate lot and not needing replacement). Action petitioned for Ronald and Janet Zoll 1493 Bevan Dr. Sebastian Florida Printed Name Signature I Address Comment a 1i/ Ifl�it(/ ttilA/X/ 94RVV -/..,54- �va� u�azfi�i ...W4A,,,v,,-,.A-,4 'br � S.rj deal-�D„u Sfi !/ 14 bC-) 4 1546 36W D,P1ar I A 16 56A�WSs ! � 14rl !P-2aOrt� 7'7 _P a 13:ac . g-t3-2� 4-13�2 Inflation Impacts to Our Industry Tires: New & Retread Rubber peaked at *44 % 202o 6 month lag in price decrease Lubricants: Base Oils T 0 Carts - Shortage Of Resin: unit costs O 50% since 2020 Collection Vehicles: Containers & Steel demand higher Compactors: than supply, record�rtttt('� high prices and I`'`�`��'��,i�ll Hot rolled coil steel L:3 labor shortages 0-00 Collection Parts: / + 2 0 0 pt Labor and raw material OVER 2020: shortages, high transportation costs production throttled and labor shortages M CN +99� (— Y Diesel: WTI%ns SL"1 ovcreared refinery pacify vrealMr lovclioT en to g bw'vnemodn- +41X since Jan 2021 high demzrd+ Increased demand, increase in �-�--� LNG exports ;a Labor Supply: - 80K CDL drivers YOY +70K CDL job openings YTD Competition: o0 Amazon, Fed UPS last mile drivers do not require CDL Transport & Logistics ® Driver shortage;s, higher fuel cost supply chain disruptions CDL Drivers: 40%4- CDL training CL®SED M INFLATION INDICATORS • Inflation fell slightly in the beginning of the pandemic but then rebounded and rose quickly in the United States as well as in many other countries. • Widespread shortages early in the pandemic affected nearly all categories of consumer goods. • A hot housing market, component shortages and supply chain disruptions are some of the reasons inflation is likely to stay elevated. • Prices of new cars, trucks, appliances and computers continued their upward march because of a shortage of needed semiconductors. • Rising wages for workers amid a labor shortage are likely behind the steady increase in frontline labor costs. • Shipping capacity constraints also find their way into price increases as businesses pass on cost increases to consumers. • Gasoline experts see prices rising to $5 or more per gallon, and JPMorgan analysts are even forecasting a national average of $6.20 per gallon in August 2022. Inflation at a 40 Year High 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0 2.0% 1.0% 0.0% 2000 2005 2010 2015 2020 Inclusion, Equity & Diversity I Customers I Safety I Environment a KEY INDUSTRY INFLATION IMPACTS - FUEL • Inflation drivers include: 1) increase in LNG exports with US export 0 infrastructure at max 2) higher demand outside the power sector Natural Gas ' Natural gas prices have been racing higher on a combination of Wksupply concerns and rising demand • Natural gas is expected to keep rising with events such as the , Russia/Ukraine war pressuring the supply market Demand is up, supply is flat, and inventories are down. This is exacerbated by falling refinery capacity and geopolitical events adversely affecting supply Oil OPEC is gradually increasing oil production after limiting it due to a Diesel Fuel decreased demand for oil during the pandemic. Some capacity being converted to Renewable Diesel • National driver shortage continues to put pressure on labor and driving increase in rates Transport & CPI / Fuel Increase in fuel costs drive transportation rates. Industry general i Logistics guidelines indicate fuel makes up 5% of hauler cost Fort congestion, spot market rates, and equipment shortages also impacting costs Natural Gas Futures 1,00 a sa O60 sro 0,60 o.so 0.40 20 g 0a 20 0,10 $$0% ON + v'�ird.$X 4`�v"`ry s°.>s' vrlo°rsmi`+ ggzdsd`a*°`ha Crude Oil (VVTI) Futures vo ]40 2.10 1 so 150 1.20 o.so 060 0.00 TSB% Inclusion, Equity & Diversity I Customers I Safety I Environment o.oa n°;E n°n°a°t'ti ti ti�ti n'ti �7fi KEY INDUSTRY INFLATION IMPACTS - LABOR yyyyyy Labor shortages and turnover driving increase in wages lllllr Front line labor costs have almost doubled since 2020 and continue to increase j CDL Drivers / Labor Wages CDL federal drug database removed over 40,000 drivers from US roadways In general, labor ifAlrAlrAlr makes up 35% of collection costs. NEW REPORT: HIGHEST SHORTAGE OF TRUCK DRIVERS IN A DECADE UNIQUELY IMPACTS WASTE COLLECTION INDUSTRY Inclusion, Equity & Diversity I Customers I Safety I Environment 6 KEY INDUSTRY INFLATION IMPACTS - MAINTENANCE Mixed basket of Maintenance costs have increased approx. 29%- collection Maintenance commodities parts, labor, tires, lubricants, carts, containers and compactors, container maintenance parts, collection vehicles I O Tires - New & Natural / Synthetic Retread Rubber, Carbon Black Natural rubber peaked at a 44% increase for new tires over 2020 costs Natural rubber up year to date due to bad weather conditions in rubber producing nations. Carbon black up as it is a derivative of crude oil. • Base oils for lubricants have increased 60% in 2022 compared Group 2 & 2+ Base to 2020 Lubricants Oils, Additives prices for several base oil grades touch record highs • Transportation costs continue to rise affecting landed cost Natural Rubber $300 $250 $200 $1so $200 $so - 31 $o a°:N 4°rv°aa° �rvs ,a' 0ti �rv� 4ti ti ory ;sry Group It and II+Base Oil $ia - $12 $to $e $6 H $2 Ali 66% so Inclusion, Equity & Diversity I Customers I Safety I Environment 7 KEY INDUSTRY INFLATION IMPACTS - MAINTENANCE ® Resin IHDPE` Market linfluencers and Impact :az° o • Cart unit costs have increased over 40% compared to 2020 ° ao Carts HDPE Shortage of resin due to natural disasters • After dipping, resin prices are quickly climbing again due proliferating oil prices and supply pressure due to foreign wars " 1p • Hot rolled steel/coil prices peaked at an increased over 200% °a A109% reaching historic all-time highs o.°o - - Hot Rolled Steel Steel import tariffs still in lace n: ds°-+� v ago+'Peary a� '� a�o°'ac�Fa�� Containers & P P se �. m ye v �.�� `y �° e Compactors Steel manufacturers continue to throttle production while container suppliers seeing labor shortages Existing container maintenance costs are increasing with steel prices Hot -Rolled Coil Steel Following Covid-19 pandemic -related shutdowns last year, steel Ito demand has rebounded faster than mill output. This has led to tight too Collection Hot Rolled Steel supply and higher prices causing record -breaking highs 8o Vehicles Labor shortages shut down major supplier leading to low inventories and reduced built slots so On top of steel prices and shutdowns, global semiconductor shortage no impacting all vehicle production 20 �146% Collection Steel, Plastic Labor and raw material shortages continue to strain industry ° Parts Transportation costs continue to rise affecting landed cost n° �°+'�e r: itiY�e` � �'0 No Inclusion, Equity & Diversity I Customers I Safety I Environment, CDL AVAILABILITY - EXTERNAL CONTRIBUTING FACTORS �riri scirrauu tiva 19� tr The industry has seen a 40 % drop in CDL training due to CDL school closures. 20 % of truck schools are still closed, while those open graduate fewer students due to social distancing. The Commercial Vehicle Training Association (CVTA) shares the closure of these agencies and leaves many future drivers (up to 40,000) unable to obtain commercial learners permits and CDLs. Employers apprentice programs are creating training opportunities for internal and external talent. up DEMAND Demand for Drivers has tripled due to drastic changes in the economy caused by the pandemic such as increases in online shopping. Drivers for Amazon, FedEx, and UPS, local or last mile delivery do not require a CDL. This is reducing the number of CDL applications in every State, as workers who would typically get a CDL, are not. Many recruiting agencies will not support Driver roles given the shortage in the labor market. NE&M di iel66%iIH Federal unemployment subsidies (up to $400/wk) added to State unemployment insurance exceeds Drivers' pay in some locations. Federal stimulus increased unemployment benefits which has "couched" many drivers who discovered they could earn more by staying home rather than being on the road. (Bureau of Labor Statistics). Inclusion, Equity & Diversity I Customers I Safety I Environment 40,000 drivers were removed (-1 of driving tome) from January — September 2020 due to failed drug test results, most of which were from marijuana use. Recreational Marijuana is legal in 14 States and 4 territories in the US and Canada. Reduced commercial driver training and licensing due to the pandemic and the Drug & Alcohol Clearinghouse have resulted in nearly 200,000 fewer drivers as we enter 2021. (U.S. Xpress) WM's LABOR SHORTAGE MITIGATION EFFORTS Truck driver shortages: Driver requirements have become more stringent, and the driver workforce is aging, attracting fewer younger drivers. There is extreme competition in industry. SOLUTIONS: Waste Management focused on five main levers - Improve Compensation - Increase pay; offer sign -on and retention bonuses; employee referral bonuses and referral retention bonuses. Introduced free education for all employees - Streamline area hiring processes - Identify dedicated interviewers and Area Hiring Teams; provide candidates immediate feedback - Source candidates faster - Leverage a centralized advertising strategy; build targeted campaigns; hosted in -person hiring events with proper safety protocols - Re -open the Arizona and FL Training Centers - Train new drivers in person with the proper safety protocols - Improve On the Job Training - Increase connection and retention of new drivers to increase retention rate Inclusion, Equity & Diversity y 0% Ate V �° c7 � • C) a� is•1 1W7 •tee 100 o a 4 uu ® 0 0-�46 .0 9 0 0 Customers I Safety I Environment, 10 WASTE INDUSTRY INDICES 12-Month Rolling Average (US CP1s) • The current 12-month inflation rate is 7.0%. 12-Month Rolling Average (US CPIs) This is the highest rate of inflation since 1990 sx • Higher inflation could get the Federal Reserve to start raising short-term interest 6.5% . rates in late 2022, instead of waiting to 2023, as originally planned s.sx • All but one of the Fed decision makers have 4.5% — — — — — — — — " ""••' • • rates going higher in 2023. So late 2022 or early 2023 appears to be when the Fed —.—..—. ..•. -- — — ............ expects to start raising rates if current 3.5x _ ....................................................... .•••.•••••••• •••••••••""""""""'��_ ��•�� •�•••�� •••"�� trends continue 2sx • The lagging indices used to adjust rates annually do not reflect the significant cost impacts that we are experiencing and have 15x ....••' ..................... . been experiencing throughout 2021 0.5% Jan Feb Mar Apr May Jun Jul Aug S., Oa Nov Dec —2020 WST ......20M WST --2022 WST —2020 G&T ...... 2021 MT — 2022 G&T —2020 CPI-U ••.... 2021 CPI-U — — 2022 CM.0 Inclusion, Equity & Diversity I Customers I Safety I Environment n ADDRESSING INFLATION With new challenges facing us every day, ever to providing industry -best service to WM is as committed as our customers and the communities we call home. WM shares in the desire to secure the best environmental services at the best price and preserve that outstanding service over the length of an extended partnership. Whether it's adjusting the difference between CPI and PPI or implementing contract specific adjustments to account for these unforeseen costs, we look forward to addressing these unusual market conditions together. V. 7