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HomeMy WebLinkAbout08-29-2024 CC MinutesSEBASTIAN CINTINNI►1 C11100►iION 1911.1014 SEBASTIAN CITY COUNCIL & BOARD OF ADJUSTMENT MEETING AGENDA THURSDAY, AUGUST 29, 2024 — 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Dodd called for the extension of the August 28, 2024, Regular Meeting to order at 6:00 p.m. starting with item 13D. 2. Vice Mayor Dixon led the Pledge of Allegiance. 3. ROLL CALL Mayor Ed Dodd Vice Mayor Kelly Dixon Council Member Fred Jones Council Member Bob McPartlan Council Member Chris Nunn Staff Present: City Manager Brian Benton City Attorney Jennifer Cockcroft City Clerk Jeanette Williams Community Development Director Alix Bernard Community Development Manager Dorri Bosworth City Engineer/Special Projects Director Karen Miller Parks and Recreation Director Richard Blankenship Contracts/Procurement Manager Jessica Graham Public Works Director Lee Plourde Airport Manager Jeff Sabo Human Resources Director Cindy Watson Police Lieutenant Rob Vafiades 13 D. Consideration of Resolution No. R-24-42 Accentine the 3`d Ouarter Financial Report and Recoenizine Necessary Amendments and Adiustments to the FY 2023- 2024 Annual Budget The City Manager highlighted some of the amendments and adjustments discussed by the Finance Director in his presentation to the Budget and Advisory Committee. These items were recommended for approval by the Budget Review Advisory Committee. He said that on page 424, Exhibit A, the three expenses out of the R&R Account that needed Council approval and there were also adjustments that had previously approved by the Council and adjustments that had been authorized by him. Regular City Council & BOA Meeting Extension August 29, 2024 Page 2 Page 425 indicated the summary of General Fund Revenues and Expenses were in good shape. The unencumbered General Fund Balance is projected to be close to the $8 million which was projected in this fiscal year's budget. Page 426 detailed the Stormwater Fund and the three Enterprise Funds. The Airport Fund, Building Fund, and Stormwater Fund have amounts that are close to what was estimated for this fiscal year. The Golf Course Fund was running a little short on anticipated revenues because there was not as much funding carried forward from the last fiscal year. With regard to the Capital Projects Status, on Page 433 the City Manager indicated that staff is moving forward on a lot of projects and they have committed to showing advancement for each project with anticipated completion on several projects into fiscal year 2025. On page 434, the Quarterly Investment Report, the City Manager pointed out a discrepancy in the Interfund Loans Report. The October 1, 2023 balance for the General Fund Due from Golf Course should be $430,000, instead of $465,000. There was a $35,000 payment made from the General Fund on that loan in the last fiscal year. The City Manager also noted that if the recommended $80,000 is transferred this year that we had budgeted to continue paying down on that loan, then $80,000 paid this year would take the loan down to $350,000. One of the recommendations from the Budget Review Advisory Committee was to consider the elimination of the golf course debt to the general fund so the golf course could begin to increase their reserve fund for future needed projects and become sustainable going forward. In speaking with the Finance Director, the City Manager said there were no concerns with eliminating this loan because it was not a recorded loan on any documents. Mayor Dodd asked if there are any questions from Council. Council Member Nunn questioned eliminating the golf course loan because it would then put a $350,000 cost against the General Fund that would have been covered by the Golf Course Enterprise Fund. The City Manager explained that it was not really a cash adjustment even though it would be eliminating that debt. At the end of the day, the General Fund would not receive $430,000, but we are not depending on that money because it is not shown in the General Fund balance at the current time. Mayor Dodd pointed out that they are not being asked to approve the elimination of the golf course loan this evening, but it would certainly be appropriate to discuss during the budget discussion. He does not feel that forgiving the loan to the golf course is an adequate way to cure the deficit. Council Member Nunn agreed that the golf course loan is an appropriate item for a budget discussion. Regular City Council & BOA Meeting Extension August 29, 2024 Page 3 Mayor Dodd said the City is in good financial shape, but that means they have enough to withstand challenges such as hurricanes, and that is why they carry as much as they do in reserves. The reserves may provide future options for things like streets. MOTION for approval of Resolution No. R-24-42 by Council Member McPartlan. SECOND by Vice Mayor Dixon. Andrea Ring reminded the Council that FEMA does require the City to have a minimum reserve fund in order to qualify for future FEMA money. Resolution No. R-24-42 accepting the 3rd Quarter Financial Report and recognizing necessary amendments and adjustments to the FY 2023-2024 Annual Budget passed with a unanimous voice vote of 5-0. E. Consideration of Resolution No. R-24-38 and Authorization for the Citv Manaeer to Execute the FDOT Public Transportation Grant Agreement (PTGA) to Upgrade the Protective Netting for the Sebastian Municinal Aimort The Airport Director explained this grant was requested from FDOT to help address a problem with a remarkable number of golf balls from the Municipal Golf Course being hit near Hangar D, which has a tenant. There is a 30-foot net between the golf course and Hangar D, but it has not been adequate to catch all of the golf balls that come into the airport area. There is a risk of the flying golf balls causing injuries to people, as well as the potential for hitting aircraft. Through this grant the Airport will be able to seek contractors to increase the net another 20 feet, providing an industry standard of 50 feet of protection, as well as another 50-foot section of net to the north. Council Member Jones commented that these are some pretty bad golfers to being hitting that building from the tee box. Council Member Nunn said he was surprised the FAA has not had an issue with this and is glad this is being addressed before they take notice. MOTION by Council Member Nunn and SECOND by Vice Mayor Dixon to approve R- 24-38 executing a FDOT PTGA grant to upgrade the protective netting at the airport. Roll Call: Council Member Fred Jones aye Council Member Bob McPartlan aye Council Member Chris Nunn aye Mayor Ed Dodd aye Vice Mayor Kelly Dixon aye Motion carried 5-0. Regular City Council & BOA Meeting Extension August 29, 2024 Page 4 F. Annroval of Resolution No. R-24-39 and Authorization for the Citv Manager to Execute the FDOT Public Transportation Grant Agreement (PTGA) for Gate Security Svstems Rehabilitation at the Sebastian Municipal Airport The Airport Manager explained this is a FDOT grant for multiple gates that control access coming in and out of the airport. Every gate has one, if not two, cameras and a system that reads the employee and tenant badges to let them enter. These systems are outdoors in the weather and are showing their age. This grant will provide the funding and enable the airport to have a contractor come in and make this a more dependable system, possibly simplify the wiring using the fiber that controls all of this and sends the information to the MIS Department in a reliable manner. There was no public input. MOTION by Council Member Bob McPartlan and SECOND by Council Member Jones to approve Resolution No. R-24-39 to execute a FDOT PTGA grant to rehabilitate the security systems at the airport. Council Member Nunn commended the Airport Manager and staff for the work they put in to obtain grants to maintain and support the airport. Roll Call: Council Member Bob McPartlan aye Council Member Chris Nunn aye Mayor Ed Dodd aye Vice Mayor Kelly Dixon aye Council Member Fred Jones aye Motion carried 5-0. G. Consideration of a New Ground Lease for Blackbrook Group Limited, at 600 Aimort Drive West at Sebastian Municipal Airport The Airport Manager stated this lease is an opportunity for the airport to increase revenue. Staff is dividing the area across from the Public Works building on the north end of the airport into three separate parcels. The current airport tenant, Blackbrook Group Limited, would like to lease one of these parcels, and they intend to build two, possibly three, hangars, as long as the site plan will bear that out. Blackbrook Group Limited handles various charter flights; does aircraft management; and they would like to provide local aviation storage needs for aircraft owners. The Airport Manager explained that through negotiation he believes that they have reached a fair market value and an amount that would be approved if reviewed by the FAA making the lease 28 cents a square foot for this particular parcel for a value of $13,566 per year. Damien Gilliams pointed out that there was not an appraisal of the property to help determine what fair market value is. He also noted that this was a 30-year agreement. He Regular City Council & BOA Meeting Extension August 29, 2024 Page 5 recommended that Council deny the lease and bring it back up for consideration when they have an appraisal. Mayor Dodd asked about the FAA policy on the fair market value of property. The Airport Manager responded that the FAA has a set of criteria that is based on whatever the standing market is, and airports are allowed to make their own calculations. The mean price in the state of Florida right now is 30 cents a square foot for a ground lease like this and not being a city as large as Vero Beach or Orlando, the Airport Manager felt that 28 cents per square foot was fair. He further explained that the FAA will not approve leases on the front end, though they do have the right to review them and audit them after the fact. This rate is also based on the fact that this is currently just bare ground. This lease provides the tenant with access directly to the apron areas as well as the operational area of the airport, but anything that is built by the tenant on this parcel over this 30-year period will ultimately revert to City ownership. The airport priced the lease to allow for that fact that the tenant is making an investment into the airport. Council McPartlan noted that the lease is also set to increase by 3% every year. Vice Mayor Dixon asked if a 30-year lease is the standard. The Airport Manager said that this is the standard timeframe for an airport lease. The biggest change from standard leases was to offer two 10-year extensions to the tenant on the back end. Many airports have offered 30 years with a 10-year extension to make up for the amount of investment that is being made and to give tenants and investors time to recoup some of their investment. MOTION by Council Member Bob McPartlan to approve the Ground Lease for Blackbrook Group Limited and SECOND by Vice Mayor Dixon. Roll Call: Council Member Chris Nunn aye Mayor Ed Dodd aye Vice Mayor Kelly Dixon aye Council Member Fred Jones aye Council Member Bob McPartlan aye Motion carried 5-0. H. Consider Resolution No. R-24-41, Establishing the new Sebastian Stormwater Utilitv Fee as $14.00 Der Month per ERU Pursuant to Citv Code of Ordinances Section 102-125 The City Attorney read the title to Resolution No. R-24-41 and the City Manager explained that staff is asking for an increase in the Stormwater Utility Fee. The fee would be increased from $10 per month to $14 per month. The Master Plan recommended that we increase Stormwater revenue in this amount in order to expand, construct, and improve Regular City Council & BOA Meeting Extension August 29, 2024 Page 6 functionality of the system. This will not be enough to provide a large capital improvement to the system, but it will be enough for the City to increase maintenance staff and ensure the system will be sustainable in future years. He said the City has invested in equipment and now would like to invest in additional maintenance staff in order to have multiple crews out in the field working so response can be quicker in all of the areas that need attention and more proactive, not reactive, as challenges arise within the system. This fee increase sets up stormwater fund for sustainability within the operating account. Additional funding options would still be needed such as grants, for long term capital projects. Mayor Dodd asked about the specific recommendations within the Stormwater Master Plan on how funds from this fee increase would be used. The City Manager said the Stormwater Master Plan recommended increasing by staff by ten members while lowering the level of service in cleaning ditches. However, our Stormwater Department is committed to maintaining the level of service in cleaning ditches and even speeding up that process with the addition of five additional maintenance staff. The City Manager also noted that this year's proposed budget included the increase of five additional maintenance staff for the Stormwater Department which will also be discussed at the September 16th Budget Hearing. Council Member Dixon recalled discussing stormwater at the Budget Workshop with an increase of $8 but they decided on meeting in the middle with a $4 increase. The City Manager confirmed that an $8 to $10 increase was discussed and recommended by the Stormwater consultant, but a $4 increase would help get the Stormwater budget where it needs to be operationally and then it will be looked at on a year-to-year basis going forward. Mayor Dodd asked about the option of raising ad valorem taxes to hire new employees. The City Manager explained that all operations are funded by the Stormwater Utility fee and it was not subsidized by the General Fund. The option of raising ad valorem taxes has not been evaluated. The City Manager reminded Council that there were two public workshops on the Stormwater Master Plan. Once the public saw what stormwater actually does and that it is handled mostly by City staff, not subcontractors, the public was supportive of the need for additional funding for stormwater operations as well as seeking outside funding for the larger capital projects. Andrea Ring asked what an ERU was and if a vacant lot is an ERU. She stated that she owns a house and two vacant lots so she is concerned she will now be paying three times as much in stormwater fees. Regular City Council & BOA Meeting Extension August 29, 2024 Page 7 The City Manager explained that an ERU stands for an Equivalent Residential Unit and a vacant lot would not be considered an ERU. Damien Gilliams expressed concern that a lot of money has been spent on stormwater equipment already but there is not a long-term plan in place. He said he thought there should be more clarification on what this $4 increase was going to accomplish. Mayor Dodd let him know that the $4 increase in Stormwater fees is based on staffing, not the cost of the study. Mr. Gilliams also brought up problems with stormwater going into the lagoon. He said there are supposed to be filtration systems in place to stop the pollution of the lagoon, but he is unsure if the Stormwater Master Plan was addressing that. He said he opposed this $4 increase since he does not feel there is a plan in place to effectively use the funds. Mayor Dodd asked whether "out of control septic tanks" or "stormwater" were creating more pollution for the Indian River. The Public Works Director advised it was the septic tanks. Mayor Dodd admitted that there have previously been several plans and studies completed that were found to be insufficient. He pointed out that the current Stormwater Master Plan has an actual work layout schedule and it is a workable plan that includes a survey of the entire city. Mayor Dodd pointed out there was not much the City can do about FDOT in relation to pollution that is created by US Highway 1. He recommended that Mr. Gilliams contact FDOT or the State Attorney's Office if he has knowledge of them polluting the lagoon. The City Manager clarified that vacant parcels are charged a stormwater fee, but it is at a reduced rate that is 67% of the fee, and property owners could apply for additional reductions by contacting staff. C. N. Kirrie came forward to share his stormwater concerns. He asked if the City was still adhering to the 80% requirement for stormwater retention construction that was in the original stormwater ordinance. Council Member Nunn asked for the date of the document that Mr. Kirrie is referencing. Mr. Kirrie said it was from February of 2019 and he was concerned that a lot of money is being spent on items that are not actual construction of retention structures and the original objectives are being forgotten. He estimated that the City has collected at least $30 million dollars in Stormwater fees over the years and there are still outstanding problems. Mr. Kirrie has close to 15 acres with a substantial property tax bill already, and he has not been given proper credits for the stormwater structure on his property. He says his property does not impact the City at all. Regular City Council & BOA Meeting Extension August 29, 2024 Page 8 Mayor Dodd asked Mr. Kirrie to give the City Manager or stormwater staff his email address or his contact information so they can make sure he gets the proper credits that are available to him. Mr. Kirrie says he is also waiting for input from the City Attorney before he decides his next steps. He said he wasn't sure if he should even have to pay Stormwater fees at all because his property does not impact the City and he wants to hear from the City Attorney on that. Mayor Dodd and the City Manager assured Mr. Kirrie that staff would be getting back to him on these issues. He then proceeded to discuss that the increase of the fee which might not be challenged by most Sebastian residents, but for him it is worth challenging because of the amount of property and the substantial number of ERUs he has. The City Engineer/Special Projects Manager explained that Ordinance Number 01-16 states that no less than 80% of utility fees shall be used to fund capital improvement projects as delineated in the Stormwater Master Plan and this requirement was being met with all of the stormwater projects. Mayor Dodd said he was in support of the fee increase as it was enough for stormwater maintenance but not enough for making optimal long-term improvements. MOTION by Council Member Nunn and SECOND by Vice Mayor Dixon to pass Resolution No. R-24-41 establishing the new Sebastian Stormwater Utility Fee at $14.00 per month. Council Member McPartlan said the fee increase will reduce a lot of the stormwater problems in the City. Vice Mayor Dixon also mentioned that in regards to equipment purchases, the City has not been just buying random equipment but replacing the worn out equipment that was needed. Council Member Jones agreed that Sebastian has had some serious drainage problems for years and the people would like this to be addressed; this is part of taking care of our citizens. Roll Call: Mayor Ed Dodd aye Vice Mayor Kelly Dixon aye Council Member Fred Jones aye Council Member Bob McPartlan aye Council Member Chris Nunn aye Motion carried 5-0. Selection of Multiple Contractors for ITB 24-17 for Concrete Services and Approval to Issue and Execute Purchase Orders to Heaw Civil, Inc. and Universal Contractine & Construction, Inc. for Drivewav Swale Improvements Regular City Council & BOA Meeting Extension August 29, 2024 Page 9 The Contracts and Procurement Manager explained that this contract was needed to provide additional vendors for road work and driveways, as well as the work on the swales. This will help to keep our projects on schedule, making sure that the driveway work keeps going once it is started and so that the road paving work does not get pushed back either. Craig Wilson, representing the Palm Bay Concrete and Materials, assured the Council that he has been bringing as many crews down to Sebastian on a daily basis as had been requested by the City. He plans to purchase equipment to help with removing concrete if the contract is awarded to his company. He would like to continue working with the City. The City Manager stated that Palm Bay Concrete has been instrumental in this process. In regard to doing this job of fixing swales while paving the road, staff has notified every resident along these roadways through mailouts that this work is being done one time and it will be their responsibility for future maintenance of the swales and culverts on their property. MOTION by Council Member McPartlan and SECOND by Vice Mayor Dixon to approve ITB 24-17 for concrete services and driveway Swale improvement Heavy Civil, Inc. and Universal Contracting & Construction, Inc. Roll Call: Vice Mayor Kelly Dixon aye Council Member Fred Jones aye Council Member Bob McPartlan aye Council Member Chris Nunn aye Mayor Ed Dodd aye Motion carried 5-0. Annroval of CSA #12 for Schulke, Bittle and Stoddard. LLC for the Professional Engineering and Architectural Design Services for a Cemetery Administration and Storage Building in the Amount of $75.410 and Authorize the City Manager to Execute the Annronriate Documentation The Parks and Recreation Director said this contract was to design a new administrative maintenance facility at the cemetery. The old facility used to be an old pole barn and accessibility was an issue. The new facility will be appealing and provide the proper operational needs of the cemetery. Damien Gilliams expressed that this was a good price for the design and that Schulke is a good engineer for the project. Council Member Jones and Council Member Nunn agreed the old cemetery building needed to be replaced. Regular City Council & BOA Meeting Extension August 29, 2024 Page 10 MOTION by Council Member Nunn and SECOND by Vice Mayor Dixon to approve CSA #12 to have Schulke, Bittle and Stoddard, LLC to design a new cemetery administration and storage building Roll Call: Council Member Fred Jones aye Council Member Bob McPartlan aye Council Member Chris Nunn aye Mayor Ed Dodd aye Vice Mayor Kelly Dixon aye Motion carried 5-0. K. Charter Officers — Performance Reviews and Wage Increases The Human Resources Director reported that the Charter Officer evaluations were prepared, sent out, and returned, and it was now in the hands of the Council to vote on granting merit increases. Council Member McPartlan said he thought all of the Charter Officers did a wonderful job in the past year. He noted this was the Attorney's first year with the City; the City Clerk, as always, was fantastic; and that the City Manager also did a phenomenal job. He noted that all of the evaluations are part of the public record. He felt he has had high expectations and the Charter Offices have risen to meet those expectations. He agreed with a 3% raise. Council Member Jones agreed that the Charter Officers have done a great job. He had conversations with all of them and made a chronological evaluation that is on the record. He said he supported a 3% raise. Vice Mayor Dixon agreed with all of the positive sentiments. She praised the officers for their accessibility and their helpfulness in answering questions and was definitely in support of the 3% raise. Mayor Dodd also expressed satisfaction with the Charter Officers, particularly the City Manager and his staff who are his direct reports; and the team of people that he has in place to really get the job done. Mayor Dodd asked if the 3% was based on the union contract. The Human Resources Director responded that the union contract will be providing a 5% raise. Mayor Dodd said he was of the opinion that they should receive the same raise as the staff does through the union contract process which would be a 5% raise effective on October 1, 2024. Council Member Nunn agreed with all of the positive evaluations for the Charter Officers and he also believed that 5% would be appropriate. Regular City Council & BOA Meeting Extension August 29, 2024 Page 11 Andrea Ring expressed that the City Manager deserves more praise than the Council can give him right now. She says he has done a fantastic job getting the city back on track. She expressed appreciation for the other Charter Officers as well. Council Member Nunn affirmed that Mayor Dodd was correct in praising the City staff that are also doing an excellent job. MOTION by Council Member Nunn with a SECOND by Vice Mayor Dixon to provide a 5% increase for the Charter Officers beginning October 1, 2024 carried with a unanimous voice vote of 5-0. fC!!i]MM� IZiT;i�i�17uT/11�Y�1 The City Attorney said she did not have any matters for this evening, but she will have one to two agenda items for the next meeting. 15. CITY MANAGER MATTERS The City Manager recognized City staff for their hard work and especially for staying to the end of these long City Council meetings. He also explained that a public view camera has been put out at Riverview Park at the Twin Piers. The view from this camera will be placed on the website and provide a view of the lagoon for public viewing. This will be shared and highlighted in our social media and in our digital newsletter. It is a peaceful view of the lagoon and it shows a good view of the sunrise in the morning. It can be found by going to the homepage of the website and clicking on Services and then Community View. This is the first public view camera and more are planned. He reported that the City has officially closed on the StillDragon property and received the funds. The property has been turned over to StillDragon as of August 28, 2024. He said tomorrow, he has a meeting with Habitat for Humanity to discuss a potential contract between the City and Habitat. When the full agreement has been reached, that contract will be brought before the Council as a resolution to provide options for affordable housing. 16. CITY CLERK MATTERS The City Clerk introduced Ann Thomas, the new administrative assistant in the Clerk's Office who started last week. Ann has been a self-employed transcriptionist for 16 years, typing medical reports, legal hearings, and business presentations. Previously, she taught elementary school, worked as an administrative assistant for a large accounting firm, and has been the office manager for a small business. She attended Wesleyan College in Macon, Georgia and studied law at Southern Methodist University in Dallas, Texas. Regular City Council & BOA Meeting Extension August 29, 2024 Page 12 17. CITY COUNCIL MATTERS A. Council Member Jones noted that for the first time ever, his wife was not able to attend the City Council meeting because of the challenges being faced by his family right now. It meant a lot that so many are praying and calling to see how they are doing. He said those things have really made a difference and expressed his gratitude to all staff and to everyone in Sebastian that has been a help and encouragement during this tough time for them. B. Council Member McPartlan stated that a lot of things can be alleged from a microphone, but he encouraged everyone to Google for the source of the information to get answers. C. Council Member Nunn — None D. Vice Mayor Dixon said she has had some citizens ask questions about the vote last night regarding the developer's agreement. She asked for the City Manager to clarify about the box culverts because people were confused about that. The City Manager responded that staff has not been able to discuss that issue earlier in the day, but he would mention that based on the engineering, the pipe design was sufficient. It is a maintenance preference on behalf of the City to have box culverts. Last night, based on the direction given by City Council, the developer's agreement was approved. Staff will be meeting to discuss whether or not we think it is important and a benefit to the City to have those box culverts installed. We will ask the applicant to provide cost estimates for the pipe and compare it to the cost estimates for the box culverts. The difference between those two estimates is where the City will come in. This issue will have to be brought before the Council again because it will be an amount that exceeds the threshold for him to give approval. Mayor Dodd asked if the approval of the developer's agreement last night included their agreement to the $100,000 charge if box culverts are installed. The City Manager confirmed that is correct, but the $100,000 is still not a budgeted item so it will have to be brought before Council again in order for the funds to be allocated. Council has given the City permission to spend the money, but it is not currently in the budget. Mayor Dodd also apologized last night for any time he was reacting too much to people. He said he recently had some people calling him a Communist and it can be hard not to react. He also explained that he reacted to the specific speaker this evening when he began to make statements that were not truthful. He acknowledged it was not appropriate for him to interrupt citizens while they were talking. He apologized and assured the Council he will try not to react like that again. 18. Being no further business, Mayor Dodd adjourned the Extended Council Meeting at 7:29 p.m. Regular City Council & BOA Meeting Extension August 29, 2024 Page 13 Approved at the October 16, 2024 Regular City Council Meeting. Mayoor Ed Dodd ATTEST.• nette Williams, Ciry Clerk