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HomeMy WebLinkAbout01132010CITY OF HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL AGENDA (revised to add proclamation) REGULAR MEETING WEDNESDAY, JANUARY 13, 2010 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA ITEMS MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK 1225 MAIN STREET, SEBASTIAN, FLORIDA OR ON THE CITY WEBSITE Procedures for Public Input are Attached to the Back of the Agenda 1. CALL TO ORDER 2. INVOCATION Pastor Seth Goldsmith, Coastal Community Church 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 10.001 A. Certificate of Appreciation to Hank Buchanan for Planning and Zoning Commission Service 10.002 B. Sebastian Clambake Foundation Beneficiary Presentations C. Proclamatjon Sebastian River Area Chamber of Commerce 10 Anniversary of Concerts in Riverview Park Brief Announcements 7. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he /she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. 1 -16 A. Approve Regular Meeting Minutes 12/9/09 17 -25 B. Approve Regular Meeting Minutes 12/16/09 09.125 C. Approve H D Construction Change Order #6 in the Amount of $28,447.25 for 27 -38 Airport Access Road East (Airport Transmittal, Change Order) 10.015 D. Authorize Mayor to Execute Submerged Lands Lease with Florida Department of 39 -54 Environmental Protection for Yacht Club Ramp and Piers (City Clerk Transmittal, Submerged Lands Lease w /Attachments) 8. COMMITTEE REPORTS APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 10.003 A. Construction Board 55 -66 (City Clerk Transmittal, Code, Applications, Ad) Interview Unless Waived, and Submit Nominations for the Vacant Regular Member, Plumber Position to Expire 9/30/2012 ii. Interview Unless Waived, and Submit Nominations for the Vacant Alternate Member, Contractor Position to Expire 9/30/2010 10.004 B. Police Pension Board of Trustees 67 -73 (City Clerk Transmittal, F.S.185, Memo, List) Appoint Fifth Member to the Board in Accordance with F.S.185 9. PUBLIC HEARINGS Procedures for public hearings: Mayor opens hearing Attomey reads ordinance or resolution Staff presentation Public Input Staff summation Mayor closes hearing Council action Anyone wishing to speak is asked to sign up before the meeting, when called, go to the podium and state his/her name for the record. 09.150 A. Second Reading and Adoption Hearing of Ordinance No. 0 -09 -14 Roseland 75 -88 Road Buffer (Growth Management Transmittal, 0- 09 -14, AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. (Press Joumal Ad 12/30/09) 09.048/10.005 B. Second and Adoption Hearing of Ordinance No. 0 -10 -01 Tax Abatement 89 95 Program (City Attorney Transmittal, 0- 10 -01) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, IMPLEMENTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM FOR THE CITY OF SEBASTIAN; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE AND SUNSET DATE. (Press Journal Ad 12/30/09) 10. UNFINISHED BUSINESS 09.156 A. Consider Release of Lien on 573 Michael Street Code Enforcement Case 97 -100 2005 -35822 (City Manager Transmittal, Notice, Calculation) 09.157/10.006 B. Resolution No. R -10 -01 Airport Park Funding (City Manager Transmittal, 101 104 Schematics) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, FUNDING THE DEVELOPMENT OF AN AIRPORT PARK THROUGH A GRANT FROM THE RECREATIONAL IMPACT FEE FUND; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. 10.007 C. Indian River County Firehouse #9 Land Swap Proposal (City Manager Transmittal, 105 107 Park Schematics) 2 11. PUBLIC INPUT Public input procedures are on the back of the agenda. A sheet is available on a table at the back of the chambers for people to sign prior to meetings. Signing is not mandatory and individuals who raise their hands will be recognized. If the Council fails to reach this item during a meeting, only those people who have signed prior to the meeting will have their item carried forward to the next regular meeting. 12. NEW BUSINESS 10.008 A. Natural Resources Board Presentation and Request for Consideration of Adoption of 109 Spoil Island in Cooperation w/ DEP (Board Transmittal) 10.009 B. Natural Resources Board Presentation and Request for Establishment of Letter Boxing 111 -116 Project (Board Transmittal, Information) 10.010 C. Approve 2010 Pelican Island Wildlife Festival at Riverview Park on March 13, 2010 117 -121 Consider Sale of Beer and Wine, Use of Old Beall's Parking Lot, and Use of 1 -95 Billboards for Advertisement Approve Closing of Sebastian Blvd. from just past Hess Station East to Indian River Dr. and Indian River Dr. from Coolidge St. South to Southern End of South Parking Area from 6 a.m. to 7 p.m. Approve Restricting North Half of Yacht Club Boat Ramp from 10 a.m. to 6 p.m. (Parks Transmittal, Letter) 10.011 D. Approve Staff Ranking and Authorize Negotiation and Execution of Agreement 123 -223 for Investment Advisory Services with PFM Asset Management (Administrative Services Transmittal, Minutes, Score Summary, RFQ Response) 10.012 E. Approve Staff's Ranking and Authorize Negotiation and Execution of Agreement 225 -258 for Financial Advisory Services with First Southwest Company (Administrative Services Transmittal, Minutes, Score Summary, RFQ Response) 09.072/10.013 F. Consider Deferral of Rent Under LoPresti Airport Lease (Airport Transmittal, Options) 259 -262 13. CITY ATTORNEY MATTERS 10.014 A. Report on Circuit Court Transmittal Case No: 2008 -2262 CA25 263 -268 Frank Romeo vs. City of Sebastian (Decision) 14. CITY MANAGER MATTERS 15. CITY CLERK MATTERS 16. CITY COUNCIL MATTERS A. Council Member Wolff B. Council Member Wright C. Mayor Gillmor D. Vice Mayor Hill E. Council Member Coy 17. ADJOURN (All meetings shall adjourn at 10:00 p.m. unless extended for up to one half hour by a majority vote of City Council) HEARING ASSISTANCE HEADPHONES ARE AVAILABLE IN THE COUNCIL CHAMBERS FOR ALL GOVERNMENT MEETINGS. All City Council Meetings are Aired Live on Comcast Channel 25. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (F. S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589 -5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. Upcoming meetings: January 27, 2010 Regular Meeting 6:30 pm February 10, 2010 Regular Meeting 6:30 pm February 24, 2010 Regular Meeting 6:30 pm March 10, 2010 Regular Meeting 6:30 pm March 24, 2010 Regular Meeting 6:30 pm 4 PROCEDURES FOR PUBLIC INPUT IN ACCORDANCE WITH RESOLUTION R -09 -45 Regular City Council Meetings Public input is ALLOWED under the headings: Consent Agenda Public Hearings Unfinished Business New Business Public Input Public input is NOT ALLOWED under the headings: Proclamations, Awards, Brief Announcements (except for individuals giving or accepting proclamations or awards); Committee Reports and Appointments (except for committee members giving reports and applicants being interviewed for committee appointments); City Council Matters Charter Officer Matters Council may, by majority vote, call upon an individual to provide input if desired. Workshops and Special Meetings. Public input is limited to the item on the agenda Time Limit Input on agenda items where public input is permitted on agendas is FIVE MINUTES, however, City Council may extend or terminate an individual's time by majority vote of Council members present. Input Directed to Chair Speakers shall address the City Council IMMEDIATELY PRIOR TO CITY COUNCIL DELIBERATION of the agenda item and ALL INPUT SHALL BE DIRECTED TO THE CHAIR, unless answering a question of a member of City Council or City staff. Individuals shall not address City Council after commencement of City Council deliberation on an agenda item after public input has concluded, provided, however, the Mayor and members of City Council may recall an individual to provide additional information or to answer questions. Certain Remarks Prohibited Personal, impertinent, and slanderous remarks, political campaigning and applauding are not permitted and may result in expulsion from the meeting. The Chair shall make determinations on such remarks, subject to the repeal provisions below. Appealing Decisions of Chair Any member of Council may appeal the decision of the Chair to the entire Council. A majority vote of City Council shall overrule any decision of the Chair. Public Input Heading on Agenda The heading on Regular Meeting agendas "Public Input" provides an opportunity for individuals to bring NEW INFORMATION OR REQUESTS TO CITY COUNCIL NOT OTHERWISE ON THE PREPARED AGENDA. Individuals are asked to attempt to resolve matters with staff prior to meetings. Individuals are asked to provide copies of material for Council one week prior to the meeting if they intend to refer to specific material. City Council will not debate an issue during Public Input but may by consensus direct a Charter Officer in regard to the item if necessary or place a requested item on a future agenda. 5 3. The Pledge of Allegiance was recited. 4. ROLL CALL City Council Present: Mayor Richard H. Gillmor Vice -Mayor Jim Hill Council Member Andrea Coy Council Member Eugene Wolff Council Member Don Wright None HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, DECEMBER 9, 2009 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Gillmor called the regular meeting to order at 6:30 p.m. 2. Father John Morrissey, St. Sebastian Catholic Church gave the invocation. Staff Present: City Manager, Al Minner City Attorney, Robert Ginsburg Deputy City Clerk, Jeanette Williams Records Program Manager, Donna Cyr Airport Director, Joseph Griffin Administrative Services Director, Debra Krueger Finance Director, Ken Killgore Growth Management Director, Rebecca Grohall Jerry Converse, Public Works Director Police Chief, Michelle Morris Police Captain, Mike Beyer MIS Systems Analyst, Rob Messersmith 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members Regular City Council Meeting December 9, 2009 Page Two 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 09.155 A. Employee of the 4 Quarter Douglas Buerger, Maintenance Worker II, 1 Public Works Division Mayor Gillmor read Mr. Buerger's accomplishments and presented him with a plaque and savings bond in recognition of his achievements. Brief Announcements None. Mr. Wolff removed Item C. Item C 7. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he /she should request a Council Member to remove the item for discussion prior to start of the 'meetif►g brrLy raising his/her hand to be recognized. 3 A. Approval Of Minutes 11/18/09 Regular Meeting Minutes 09.007 B. Resolution No. R -09 -45 City Council Meeting Procedures Repealing R -09 -05 13 19 (City Clerk Transmittal, R- 09 -45) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, REPEALING RESOLUTION NO. R- 09 -05; ESTABLISHING THE DATES AND TIMES FOR CITY COUNCIL MEETINGS AND WORKSHOPS; ADOPTING ROBERTS RULES OF ORDER; PROVIDING FOR PROCEDURES FOR AGENDA PREPARATION, AGENDA FORMAT, AGENDA MODIFICATIONS, PUBLIC INPUT, PUBLIC HEARINGS, AND VERBATIM TRANSCRIPTS; PROVIDING FOR REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. 09.034 C. Authorize Travel and Registration to Institute for Elected Municipal Officials, 21 -24 January 22 -24, 2010 in Gainesville, FL (City Clerk Transmittal, Info) MOTION by Mr. Hill and SECOND by Ms. Coy to approve consent agenda items A and B passed with a voice vote of 5 -0. Mr. Wolff said the travel expense for item C should be paid from individual Council Member's monthly $300 expense accounts. He said he did not dispute the registration fee but the allotted $750 for each member to travel is too much. Mr. Hill disagreed stating it is an important training course for newly elected officials, noted the hotel has the classroom facilities, and he would leave it as it is. 2 Regular City Council Meeting December 9, 2009 Page Three Ms. Coy agreed with Mr. Hill and said the expense account is to be used for travel up to 75 miles and this trip is beyond 75 miles. Mr. Wolff pointed out their monthly $300 does not have an accounting for it, no invoices are turned in, no one holds them accountable if they spend it or don't spend it. He suggested members taking the $300 pay their own way, noting everyone should spend taxpayer's money like it was their own money. MOTION by Mr. Hill and SECOND by Mayor Gillmor to approve item C, adding the expense covers mileage and wear and tear on the vehicles; and it is the travel policy of the City which could be changed. With Mayor Gillmor's second, he said the $750 expense seemed large; he thought the seminar was interesting when he attended and he asked the Deputy Clerk if his allotment was $129 a day when he went last January. The Deputy Clerk went over the travel expenses individually. Ms. Coy confirmed the mileage rate is based on the federal rate and to take the mileage out of the $300 expense account seemed unreasonable. Mr. Hill added that he appreciated the time it took members away from their families while working for the City. Mr. Wright said this was a seminar for newly elected officials, he planned to go, and he would travel Thursday night and return late Sunday so it would be a full weekend of his personal time. Result of the roll vote was: AYES: Hill, Coy, Gillmor, Wright NAYS: Wolff Passed 4 -1 Mayor Gillmor asked the Deputy Clerk to take care of the letter. Doo 8. COMMITTEE REPORTS APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. Ms. Coy said at the Indian River County Land Acquisition Committee earlier in the day, there was an almost unanimous vote to recommend to the County the purchase of the parcel on the south prong of the Sebastian River called the Russell property, located north of Marine Resources Council property who offered to manage the property. Ms. Coy asked Council if they would consider writing a letter of support to the County Commission to approve the purchase. MOTION by Ms. Coy and SECOND by Mr. Hill to send a letter of support signed by the Mayor passed with a voice vote of 5 -1. Regular City Council Meeting December 9, 2009 Page Four 09.004 A. Citizens Budget Review Advisory Committee 25 (City Clerk Transmittal, List, Press Release, Code, Applications) Formal Announcement of Five Council Appointees Each Council Member announced their appointments as follows: Council Member Coy Adrina Davis Mayor Gillmor Ed Herlihy Council Member Hill Jerry Klenck Council Member Wright Harry Marshall Council Member Wolff Brad White DRAFT ii. Interview, Unless Waived, and Submit Nominations for Two At -Large Members Mayor Gillmor said there were four applicants. Mr. Cardinale was not present. David DeVirgilio approached the podium and Mr. Wolff said he has noticed a recent phenomena that people who volunteer for these committees go on to select the future council by forming political action committees which dilutes the opinion rendered by the committee and jeopardizes one's face value. He asked Mr. DeVirgilio if he were nominated, would he plan to start a political action committee. Mr. DeVirgilio said he ran for office and was not affiliated with any political action committee and didn't plan to affiliate with any because independent thinking, and representing the whole City is something the City needs. Ms. Coy asked Mr. DeVirgilio if he ran again, and the realtors PAC offered him money, would he refuse. Mr. DeVirgilio said accepting funds didn't mean he would vote in their favor. Edward Kroah went over his extensive financial background. Ms. Coy nominated Ms. Vicars Mayor Gillmor nominated Mr. Kroah Mr. Wolff nominated Mr. DeVirgilio Roll call on the nominations was as follows: Ms. Coy Vicars Mr. Wolff DeVirgilio Mr. Wright Vicars Mayor Gillmor Vicars Mr. Hill Vicars Christine Vicars was appointed to the first position on the Citizens Budget Review Advisory Committee. 4 Regular City Council Meeting December 9, 2009 Page Five For the second position, Mr. Hill nominated Edward Kroah Mr. Wolff nominated Charles Cardinale. Roll call on the nominations was as follows: Mr. Wolff Cardinale Mr. Wright Kroah Mayor Gillmor Kroah Mr. Hill Kroah Ms. Coy Kroah 09.002 B. Parks Recreation Advisory Committee 49 80 (City Clerk Transmittal, Applications, List, Press Release) DRAFT Edward Kroah was appointed to the second position on the Citizens Budget Review Advisory Committee. Interview, Unless Waived, and Submit Nominations for One Regular Member Position to Expire 5/31/2010 The Mayor said there were six applicants. John Danise said he was in recreation for over 50 years. Mr. Wolff said Mr. Danise was a little bit modest as he has volunteered thousands of hours at Schumann Park giving free lessons to children. Dominic Durr and George Geiger were not present. Ms. Coy asked Jarad Pelletier if he was a senior this year; and what his plans were for next year. Mr. Pelletier said he was a senior and planned to attend the police academy in Miami. Ms. Coy asked him not to be upset if he was not moved up to the regular member position as she would like him to continue with his education. Daniel Turner and Jose David Reyes were not present. In response to the Mayor's call for nominations, Mr. Hill nominated Mr. Danise. There were no other nominations and Mr. Danise was appointed to the regular member on the Parks Recreation Committee. 09.157 ii. Airport Playground Recommendation (City Manager Transmittal, Ideas, 81 101 Overview, Locations, Velocity E -Mail, St. Pete Info, Equipment Info, FAA E -Mail) The City Manager said the Parks Recreation Committee has met and they recommend to Council the construction of an aircraft centric playground. JoAnn White, Chair of the Parks Recreation Committee, said they were given the same packet that Council has and they were in favor of the idea. Regular City Council Meeting December 9, 2009 Page Six DRAFT Mayor Gillmor asked where the playground will go. Ms. White said there were some parcels off Roseland Road. The City Manager directed Council to circle page 84. Mr. Wright said it would be right next to the green square, adjacent to the fence on Phillipson's property. Mayor Gillmor asked for the cost estimate. The City Manager said they wanted to include some of airplane rockers depicted in the packet but with in house construction and maintenance, he did not think it would be over $5,000.00. He suggested granting recreation impact fees to the Airport Enterprise Fund so it comes out of all of the recreation districts and have it be an Airport property (owned and operated by Airport staff). Mayor Gillmor asked if this was in a flight approach path. The City Manager said no, it cannot be in the RPZ (runway protection zone) in accordance with FAA regulations. Mayor Gillmor asked if the area could be developed. The City Manager said it could be, but it is irregular, doesn't have great frontage, and it wouldn't attract industrial development. Mayor Gillmor said he thought it was a good idea but suggested it be closer to the LoPresti hangar to go with their "First Saturday" monthly events. Mr. Wolff said that makes sense with the fuel pump there and the access from Main Street. He asked if there was any available property. The City Manager said there are a couple of good locations, between the Airport administration building and the airfield by the parking lot; or other side of Airport Drive East, between the Golf Course Hole #17 on the grassy field. He said the Airport Director prefers the spot between the administration building and the airfield. The Airport Director said there was talk about a year ago of putting in a concrete pad with picnic tables behind the administration building because people come there to watch the sky divers on the weekend. Mr. Hill said he was concerned with constructing a new park requiring maintenance and the west side would be more expensive than the spot by the administration building. Mr. Wright said this recommendation came from Scott Baker during one of the airport meetings and he asked Mr. Baker to speak on other locations. Public Input Scott Baker representing Velocity, The Airports Owners and Pilot Assoc., and being a resident flying enthusiast, said he was in favor of an Airport park on either side as long as people could get a closer view of the planes so it fuels imagination, promotes learning, science, mathematics, flying lessons, and responsibility. 6 Regular City Council Meeting December 9, 2009 Page Seven DRAFT Mr. Wolff asked if the business community could install a model plane or used plane that the older kids could use. Mr. Baker said that is a strong chance and perhaps Velocity or the other businesses could sponsor some of this equipment. Ms. Coy spoke of displaying something Navy at the site. The Airport Director said a couple years ago, he checked into getting surplus aircraft out of the bone yard and it could be pursued. Steve Philipson, About Kayaks, said using the resources that we have, including an About Kayaks contribution would be enjoyed by the community. Damien Gilliams, 1623 US Highway 1, asked if he understood correctly that there might be monies transferred from the recreation impact to the Airport as a grant. Mayor Gillmor said that was correct. Mr. Gilliams asked why the Airport's enterprise funds couldn't be used. Mayor Gillmor said a park wasn't budgeted. Mr. Gilliams said it was not appropriate to give zoned impact fee money to the Airport and suggested a fundraiser to let the Airport stand on its own or ask FDOT for grant money. Mr. Wolff said that is certainly food for thought since last Saturday's LoPresti event was such a success. Mr. Hill said this item is under reports and no action will be taken. Mr. Hill confirmed with the City Manager that the impact fee is collected from new homes for construction of new parks. He said maintenance is his biggest concern and he would not want to create something that needs to be maintained. He supported the project and moving it to the other side of the Airport. Mr. Wolff asked how much money there in the recreation impact fee fund. The City Manager said a little over $1 M. Mr. Wright said this project would benefit the entire community and recreational impact fee money could be used. Mayor Gillmor suggested getting an old F4 fighter or some space junk. Mr. Wright asked how to move this to an action item. The City Manager said he would come back with detailed budget information and the Airport Director would look into getting some military equipment. 7 Regular City Council Meeting December 9, 2009 Page Eight 09.053 C. Working Waterfront Committee 103 124 (City Clerk Transmittal, R- 09 -42, Applications) Interview, Unless Waived, and Submit Nominations for One Resident At -Large Member Vicky Christensen said she has been a commercial fisherman for 19 years and would be an asset to the committee. Mayor Gillmor said there will be an opening for a commercial fisherman and asked her if she would be interested in that position. Ms. Christensen said she would. There were no questions for David DeVirgilio. Greg Hepler 1291 Barber Street, said he has a local business and would like to serve as the citizen -at- large. Barbara Salmon, Sebastian, said she has stayed on top of the working waterfront project and would like to be a part of it. In response to Mayor Gillmor, she said she has been fishing all her life. Pete Sharman, 30 year resident, said Sebastian has a disappearing heritage and history, and if the waterfront project is done nicely, it would be a nice destination and be self- supporting. Mr. Hill nominated Ms.Salmon. Mr. Wolff nominated Ms. Christensen. Roll call on the nominations was as follows: Mayor Gillmor Salmon Mr. Hill- Salmon Ms. Coy Salmon Mr. Wolff- Christensen Mr. Wright Salmon DRAFT Ms. Salmon was appointed to the citizen -at -large position on the Working Waterfront Committee. Mayor Gillmor advised Ms. Christensen her application would be submitted for the fisherman position at the next meeting. The Mayor called for a recess at 7:43 p.m. and upon return at 7:57 p.m. all members were present. 9. PUBLIC HEARINGS None 10. UNFINISHED BUSINESS None 8 Regular City Council Meeting December 9, 2009 Page Nine 11. PUBLIC INPUT (Procedures on Back of Agenda) DRAFT Bruce Zingman, Sebastian Property Owners Association, thanked the City Council for having the Santa Parade. He also thanked staff and various other organizations that helped to make the parade happen. He said Santa will be back at the GFSWC clubhouse for the next two Saturdays from 2:00 to 4:00 p.m. Louise Kautenburg, Sebastian, said at the last meeting a citizen suggested getting the banks to register foreclosed houses so we would know which properties need their lawns mowed and she thought most probably don't understand how properties get in that situation. She explained that when a bank takes ownership they hire an asset manager who cuts the grass and repairs the house for the market. It is prior to foreclosure that the problems arise as the house can sit as much as 18 months before the bank takes possession. She suggested a temporary interim ordinance for abandoned houses which will slightly change the process for code violations. She said a notice is posted on the door, and sent to the last owner, when it is known for sure it is abandoned that is when the City maintains the grass until the fine is paid and every time a title company does a lien search the fines will get paid. She said sometimes some purchasers don't do their due diligence at Sheriff's sales. Ms. Kautenburg said that come spring there will be about 500 more homes that will be in deplorable conditions and she urged Council to act before we have a crisis. Mayor Gillmor said it is a good suggestion and asked the City Manager to look into. Damien Gilliams said the City should start the budget process early and convene the Citizens Budget Review Advisory Committee. He noted the budget amendment states the special functions at the park are requiring police overtime which should be paid by the organizations. Ms. Coy called for a point of order, stating this is more appropriate under the next item. Mayor Gillmor agreed and told Mr. Gilliams he could speak when it came up. Mr. Gilliams said he was glad that Ms. Coy brought that to his attention, said if Council is going to follow rules why did she get to rave on the Veterans of Foreign Wars at the last meeting when he was asked to sit down. Mayor Gillmor asked Mr. Gilliams to pick another subject. Mr. Gilliams asked for clarification and Mayor Gillmor asked him again to pick another subject. Mr. Gilliams then took his seat. Regular City Council Meeting December 9, 2009 Page Ten Joe Scozzari said the Council Member did take time to talk about her personal business which is not about City business. Mayor Gillmor asked him to pick another subject. Mr. Scozzari continued to say that any time a member does their personal agenda at a meeting it should be taken out of their pay. Mr. Hill called for a point of order. Mayor Gillmor directed him to leave the podium. Jim Sunnycalb, Sebastian, announced on Saturday from 10:00 a.m. to 8:00 p.m., his model train will be back in Riverview Park. In memory of Pete Harris, he displayed a model car he and his son made to go around the tree. 12. NEW BUSINESS DRAFT 09.042 A. Resolution No. R -09 -46 FY 2009 4 Quarter FY08 /09 Budget Amendment 125 157 (Administrative Services Transmittal, R- 09 -46, Memo, Reports, Schedule, Accomplishments) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING AN AMENDED BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009 AS PROVIDED FOR IN EXHIBIT "A PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Manager said he wanted to note the change of this item on agendas to be more frugal and not assume it would just pass. The City Attorney read the title of Resolution No. R- 09 -46. MOTION by Mayor Gillmor and SECOND by Mr. Hill to adopt of Resolution No. R- 09 -46. Mr. Wright stated they were amending a budget for a year that is already over and in effect they were amending a shortage, moving money around, and he asked for an explanation. The Finance Director explained the purpose of presenting the amendment is to provide information to the public and Council where things had issues they had to deal with. He also said if they didn't do an adjustment, it would look like we exceeded the appropriation which legally we are not allowed to do. Mr. Wright said he guessed we were $1,622,801 short last year. The City Manager said that was all funds. The Finance Director said the biggest part was debt service bonds which had insurance, but they lost their rating so we had to set aside more cash to protect the bond holders and we didn't have any option on it. In response to the Mayor, the Finance Director said we didn't expect to use the funds. Damien Gilliams, 1623 US Highway 1, said he was glad the Finance Director brought out the rate had dropped and if they drop any, further it will be in jeopardy. He said we overspent starting in 2010 and he is glad it is a listed item on the agenda so the public can discuss it. He said there was overtime in Police Dept. that was not allocated and we need to think about having the organizations making a profit pay at events for their police and reimburse the CRA fund for the Public Works employees. He asked the Finance Director to read all four quarterly amendments. 10 Regular City Council Meeting December 9, 2009 Page Eleven In response to Mayor Gillmor, the Deputy Clerk said the information is available on- line. Mr. Wolff said the amendment is well laid out, he liked the synopsis which is indicative of the current financial situation and he noted what was actually accomplished is incredible. He pointed out that two CDs that expired and he asked what happened to that money. The Finance Director said the money was let flow into cash as they did not want to take a chance with the SBA. Mr. Wolff asked if there were any possibilities down the road. The Finance Director said they would examine cash flow, maybe go longer term, but it is not advantageous to get in the market now. He added that they are looking at proposals for advisors right now. Mayor Gillmor asked the Finance Director if the interest rates will climb back up. The Finance Director said he could not tell any better than anyone else. The City Manager invited Council to contact him, the Finance Director or Administrative Services Director at any time they have a question, the quarterly report ties everything together and this report has some positives and some negatives. He said our expenses exceeded revenues by $491,000 because we kept estimating through the quarterly reports; said we still have stable reserve funds but we don't want to spend the cash because we have things to plan for. He noted some major revenue shortages included: the 1/2 sales tax, intergovernmental revenue, municipal sharing, increasing fuel issues and declining interest issues. He said the department heads are doing a good job, budgeting low to keep people accountable. One last comment he gave was, throughout the years the Police Divisions have been reduced to keep the Department more organized which have decreased the overtime expenses. He said we are doing more with less and managing the money wisely. Result of the roll call vote: AYES: All NAYS: None Passed 5 -0 09.156 B. Consider Release of Lien on 573 Michael Street Code Enforcement 159 162 Case 2005 -35822 (City Manager Transmittal, Notices, Calculations) The City Manager explained Mr. Linscott is a habitual code enforcement offender for junk and debris; this case came to a head in December 2005 when the Department issued a notice for junk and debris, the case was heard in February 2006 where he was advised to clean up the property or face a fine of $250.00 a day. The City Manager said the property was eventually cleaned and the lien was filed for the number of days the property was not in compliance. He said to this date there are no maintenance code violations but there is an expired construction permit to add on a garage and he requested that if it is Council's desire to waive any fees, that the waiver be held until the construction is permitted and taken care of. 11 Regular City Council Meeting December 9, 2009 Page Twelve DRAFT Steve Lulich, Attorney representing Mr. Linscott, said the record owners are Patricia and Michael Linscott (Patricia is Michael's mother who lives in Indiana). Mr. Lulich said they were here because of the defective process; his client has never received notice of these violations; the property was occupied from October 1996 until October 2006 by Lisa Wonder; he was not in town in 2005 -2006; he nor his mother pulled any construction permits; Ms. Wonder lived rent free for many months and the Linscotts evicted her in Sept. 2009; he took possession of the property 40 days ago; and he is willing to take care of the expired construction permit. Mr. Lulich distributed a final judgment of the eviction and a notarized statement that Patricia Linscott was not aware of the construction permit. The City Manager said Mr. Linscott did come to see him and let him know the code issues were Ms. Wonder's fault and the City did follow proper process with four signed notices. Mr. Lulich said his client is not contesting that at all. The City manager passed out the notices with signed return receipts for Council inspection. Mr. Lulich said the problem is the tenant signed and the owner never really received notice. He offered to have Mr. Linscott explain how he found out about the situation. Mr. Wolff asked what the circumstances were that allowed Mr. Linscott to be informed of the matter. Mr. Linscott replied on June 2 he and his mother tried to evict Ms. Wonder and her parents. At that time the parents informed him there were $60,000 worth of liens on the house. Mr. Wright asked if we had a copy of the expired building permit showing the name to who it was issued. The City Manager said it was signed by Michael Linscott and Monalisa Wonder on Feb. 26, 2001. Ms. Coy said it looked like both signatures could have been done by the same person. Mr. Lulich offered to have Mr. Linscott retrieve his driver's license from his vehicle to compare signatures. Mr. Hill noted the signature on the certified letter looks very similar to the building permit. Mr. Lulich said he had numerous conversations with Ms. Wonder, stating he had a hard time working with Ms. Wonder because she and Mr. Linscott had a child together she thought she owned the house. Mr. Hill pointed out that as an owner you have responsibilities to keep your property up to code. Mr. Lulich stated that is true but the owner was not properly notified, he had to evict Ms. Wonder to legally take back possession of the house. Mr. Hill asked the City Attorney that if the owner did not receive notice, how that legally binds the owner to the fees. The City Attorney asked who paid the taxes. Mr. Lulich said it was escrowed into the mortgage. The City Attorney asked who received the TRIM notice and he suggested putting this Regular City Council Meeting December 9, 2009 Page Thirteen matter off a week until it is determined who is listed on the Property Appraiser's record, noting if we complied with the notice provision Mr. Linscott has more of an equitable argument than a legal one; but if we didn't, he very well might have a legal argument. Mr. Lulich offered to give a memorandum of law on recently decided cases. The City Attorney said either we complied or didn't with notice requirements and once we find out, we can make a decision. The City Manager noted we did send notice by certified mail. Mr. Wright noted the Property Appraiser's record listing the property owner on circle page 162. The City Attorney requested time to review the material. The City Manager offered to table this until the January 9 meeting to take care of the Building Department issues which would give staff relief that the structure will get remedied. (1 regular meeting is January 13, 2010) MOTION by Mr. Hill and SECOND by Mayor Gillmor to table the matter until the January 13 meeting passed with a voice vote of 5 -0. 09.150 C. First Reading Ordinance No. 0 -09 -14 Roseland Road Buffer Set Public 163 172 Hearing for January 13, 2010 (Growth Management Transmittal, 0- 09 -14, draft minutes) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Ordinance No. 0- 09 -14. Mayor Gillmor said he was in favor of moving this forward with one change. MOTION by Mayor Gillmor and SECOND by Mr. Hill to pass Ordinance 0 -09 -14 with the addition of an item #4, the City reserves the right to replace and improve existing Airport business directory business signage. Mayor Gillmor added this is because Council has expressed that they want to change out the existing signs on Roseland Road and Main Street. Public DRAFT Bob Denton, Roseland Road, said he thought that was a good suggestion and until June he thought the buffer was in place since 2002. He said he was concerned that FAA communications do not represent what is in the ordinance and he read from some e -mails asking what is the meaning of "duration" in the correspondence. The City Manager said "all of it." (The audience was not privy to this correspondence.) Mr. Denton's time was up, MOTION by Mr. Wolff and SECOND by Ms. Coy to allow Mr. Denton to continue for three minutes passed without objection. 13 1 D' Regular City Council Meeting December 9, 2009 Page Fourteen Mr. Denton stated there is only a limited amount of buffer on Roseland Road indicated but there are unprotected areas north and south of the buffer that the FAA might want to protect and he asked the City Manager for an explanation of the area. Holly Dill, also representing James Linus, asked the Mayor to repeat his addition to the ordinance. She said she supported the ordinance with the Mayor's addition and hoped the buffer went all the way along the Airport property. Tim Glover, President, Friends of St. Sebastian River, said he was involved with City staff establishing the buffer and he thanked Council for their support. Steve Philipson, 25 Airport Drive West, said he was concerned with the portion where the buffer does not exist with his sign and he requested that his sign be allowed to stay and grandfathered in as an accepted buffer arrangement. David DeVirgilio, 113 Pelican Island, asked if the buffer is reinstalled, what is the cost to revegetate the whole berm. Mayor Gillmor said he thought the Australian pines were going to stay. The City Manager said the ordinance states to maintain buffer as is with language to remove exotics or dead material and there is requirement to refurbish the buffer. Mr. Wolff asked the City Attorney if it would it be fair to say buffer is really a strip of 50 foot vegetative matter. The City Attorney said the word buffer has a certain history, we are drafting the ordinance consisting of everybody's understanding of the past seven years, and we are using the term everybody understands in describing the strip. Ms. Coy said the intent also implies it is a transition area from industrial area to residential area and the vegetation is to help the transition. She said depending on who is interested in moving there would leave some room for negotiation as to what kind of buffer there should be installed by the City and the new tenant. Mr. Wolff asked the Growth Management Director if this is addressed in the Land Development Code. She said the code does require type A opaque buffer and that was the intent of #4 which was stricken by public input at the Planning and Zoning hearing. Mr. Wright said there is a plan to develop the other side of the property for industrial use, and he was concerned the wording would prevent high quality landscaping. The Growth Management Director said that was intent of staff in stricken #4, but they where here at Council's discretion. Mr. Wright said he was concerned because it is 40 acres open for future development, and he was curious if people want scrub or high quality landscaping which would enhance their property or enhance future tenants. Mr. Wright also noted there are existing signs and a swale that need to be maintained; he asked if there any language that would prevent us from improving the property. 14 Regular City Council Meeting December 9, 2009 Page Fifteen Mr. Hill said there were probably many that believe the native scrub is beautiful and the idea is to protect the native look, he thought the ordinance reads very well. Mr. Wolff said that leads to the Mayor's suggestion of adding #4 where signage can be improved, would the improvement be a lighted sign. He pointed out the Roseland neighbors want to preserve the historic, natural setting. Mayor Gilimor added that as beautiful as some of the landscapes are, they are privately maintained which is not cheap. Ms. Coy said in her dealing with the residents for the last five years, she knows they would prefer the native look, and she supported the Mayor's addition. Mayor Gilimor called for the question. Mr. Wolff asked if Mr. Denton's question was answered. The City Manager said the question was called but he would proceed at however Council would like him. The Mayor said two different issues were being discussed and tonight was to consider the ordinance. Result of the roll call vote: AYES: All NAYS: None Passed 5 -0 13. CITY ATTORNEY MATTERS None. 14. CITY MANAGER MATTERS None. 15. CITY CLERK MATTERS None. 16. CITY COUNCIL MATTERS A. Vice Mayor Hill none. B. Council Member Coy Ms. Coy wished the Jewish community a Happy Hanukkah. C. Council Member Wolff none. D. Council Member Wright DRAFT Mr. Wright said following up after the budget amendment, he would like to see the Citizens Budget Review Advisory Committee given year end statements; ask them to begin to review the next budget; and follow the activities during the year so they can be helpful to Council in making decisions. Regular City Council Meeting December 9, 2009 Page Sixteen E. Mayor Gillmor Richard H. Gillmor, Mayor ATTEST: Mayor Gillmor said they received an e-mail from Judith Bewersdorf who wanted to be considered for MPO CAC but the position was filled while still being advertised and he asked Council if she could serve as an alternate to the position. There was no objection from Council. 17. Being no further business, Mayor Gillmor adjourned the regular meeting at 9:26 p.m. Approved at the January 13, 2010 regular City Council meeting. Sally A. Maio, MMC City Clerk DRAFT 16 City Council Present: Mayor Richard H. Gillmor Vice -Mayor Jim Hill Council Member Andrea Coy Council Member Eugene Wolff Council Member Don Wright crry OF HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, DECEMBER 16, 2009 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Gillmor called the Regular Meeting to order at 6:30 p.m. 2. Invocation was given by Pastor Bill Brothers, First Baptist Church of Sebastian. 3. The Pledge of Allegiance was recited. 4. ROLL CALL Staff Present: City Manager, Al Minner City Attorney, Robert Ginsburg City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Airport Director, Joseph Griffin Growth Management Director, Rebecca Grohall Deputy Police Chief, Greg Witt Police Captain, Bob Lockhart Senior MIS Systems Analyst, Barbara Brooke -Reese 5. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members CRAFT Mayor Gillmor requested addition of appointment of Working Waterfront Commercial Fisherman position under Committee Reports Appointments. MOTION by Mr. Hill and SECOND by Ms. Coy for the addition of item 8B was approved with a voice vote of 5 -0. Regular City Council Meeting December 16, 2009 Page Two 6. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 09.002 A. Certificate of Appreciation to Council Member Don Wright for Parks Recreation Advisory Board Service 09.158 B. Certificate of Appreciation to Council Member Don Wright for MPO Citizens Advisory Committee Service as the City's Representative Mayor Gillmor read and presented both certificates to Council Member Wright. 09.004 C. Certificates of Appreciation to Charles Cardinale, and Joan Rivard for Citizens Budget Review Advisory Board Service Mr. Cardinale and Ms. Rivard were not present. Brief Announcements DRAFT Police Captain Bob Lockhart announced the 2 Sebastian Citizens Police Academy will be held starting January 14 2010 on Thursday nights at 6:30 p.m. until April 1 2010. He invited the public to pick up applications from the back table, contact Officer Steve Marcinik at 589 -8576, or download them from www.sebastianpd.org. Ms. Coy said Tax Collector Carol Jean Jordan has announced the Sebastian office is now open for driver's license business. 7. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he /she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. 1 A. Approval of Minutes 12/2/09 Economic Development Workshop Minutes 09.159 B. Resolution No. R -09 -48 PEA Bargaining Agreement (Administrative Services 9 -56 Transmittal, R- 09 -48, Agreement) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE BARGAINING UNIT OF THE COASTAL FLORIDA PUBLIC EMPLOYEES ASSOCIATION (CFPEA) AND THE CITY OF SEBASTIAN FOR THE PERIOD OCTOBER 1, 2009 THROUGH SEPTEMBER 30, 2010; PROVIDING FOR REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Mr. Hill and SECOND by Mr. Wright to approve consent agenda items A and B passed with a voice vote of 5 -0. 2 Regular City Council Meeting December 16, 2009 Page Three 8. COMMITTEE REPORTS APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 09.092 A. Planning and Zoning Commission 57 83 (City Clerk Transmittal, Applications, List, Ad) i. Interview, Unless Waived and Submit Nominations for One Vacant Regular Member Position, Term to Expire 11/2011 Applicant Dominic Durr said it would be a great pleasure to be on the Commission. No other applicants were present. Mr. Hill nominated Mr. Hepler to the regular member position and Mr. Durr to the alternate position. There were no other nominations. Mr. Hepler was appointed to the regular member position and Mr. Durr was appointed to the alternate position. Added B. Working Waterfront Commercial Fisherman 9. PUBLIC HEARINGS The Clerk said the advertisement had closed on December 14 and Ms. Christensen was the only applicant. Mayor Gillmor nominated Ms. Christensen. There were no other nominations. Ms. Christensen was appointed to the fisherman position on the Working Waterfront Committee. DRAFT 09.152 A. Second Reading, Public Hearing and Final Adoption of Ordinance No. 0 -09 -06 85-127 Petition for Voluntary Annexation by Bridgeton Real Fund 1, LP for a 5.9 Acre Parcel (GMD Transmittal, 0- 09 -06, Letter, Staff Report, Map, P Z Minutes, LDC, City's Comp Plan Policies) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, PROVIDING FOR THE VOLUNTARY ANNEXATION FOR LAND CONSISTING OF 5.90 ACRES, MORE OR LESS, LYING SOUTH OF VICKERS ROAD (A.K.A. 99 STREET) AND WEST OF THE F.E.C. RAILROAD; PROVIDING FOR INTERIM LAND USE AND ZONING CLASSIFICATION; PROVIDING FOR CONFLIT; PROVIDING FOR EFFECTIVE DATE. (Advertised 12/1/09, 12/8/09) The City Attorney explained there are three ordinances for consideration and he would like to follow the quasi judicial procedure for all three ordinances, he would read all three ordinances, take input, and then ask for separate votes on each ordinance. The City Attorney read Ordinance Nos. 0- 09 -06, 0- 09 -07, and 0 -09 -08 by title and the Mayor opened the hearing at 6:43 p.m. 3 Regular City Council Meeting December 16, 2009 Page Four There was no ex -parte communication to disclose by Council Members. The Clerk swore in all those who were to give factual testimony. John Malek, 2190 47 Terrace, Vero Beach, said he was here to clear up any questions Council may have, he started with the County about two years ago but they weren't able to accommodate him as all of the commercial space was not used up and they suggested annexing into the City, and he hoped Council would give favorable consideration of this. The Growth Management Director said this is a request for annexation of three parcels adjacent to industrial and they recommend that all three parcels be zoned industrial. Mr. Wright asked if the restrictive use covenant went back to the Planning and Zoning Commission (P Z). The Growth management Director said it did and was approved. She also said the covenant prohibited a number of less desirable uses: cement facilities, gasoline and petroleum sales, food sales, adult entertainment, boat manufacturing, sand mining, concrete production, and asphalt production. Public Input Beverly O'Neil, 9790 61 Place, Breezy Village Mobile Home Subdivision, said in summary she has no problem with storage sheds that will buffer her property but her concern is when she and Mr. Malek are both gone, the ordinance would allow a lot of uses that could be very detrimental to a residential area. She would like to see the covenant language say the land use should be for the storage sheds and it's accessory uses as suggested by the City Attorney which would allay her concerns. Mr. Wolff asked her for examples of objectionable use. Ms. O'Neil said trade and skilled services, wholesale trade services, and motor vehicle use. She said she wants to avoid having a view like the one north on 99 Street Mr. Malek said when he builds the facility it will have to be fenced and buffered according to code, he plans to keep the building area as far east as they can. He said it be up to an $8 M building and it will be a clean low -use facility. Mr. Wolff asked when he planned to start construction. Mr. Malek said he didn't have final site plans, but probably in another one to two years. The Growth Management Director summarized the request by recommending approval of Ordinance No. 0- 09 -06. MOTION by Mr. Hill and SECOND by Mr. Wright to approve Ordinance 0 -09 -06 for the Bridgeton Annexation. The City Attorney advised that acceptance of the restrictive covenants as approved by P Z should be included in the motion. Mr. Hill and Mr. Wright agreed to include the acceptance of the covenant in their motion. Result of the roll call: AYES: All NAYS: None Passed 5 -0 4 Regular City Council Meeting December 16, 2009 Page Five 09.152 B. Second Reading, Public Hearing and Final Adoption of Ordinance No. 0- 09 -07- 129 -142 Land Use Amendment for Bridgeton Real Fund 1, LP 5.9 Acre Parcel (GMD Transmittal 0- 09 -07, Application) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA APPROVING AN AMENDMENT TO THE COMPREHENSIVE PLAN WHICH AMENDS THE FUTURE LAND USE MAP TO DESIGNATE AN INITIAL LAND USE CLASSIFICATION OF INDUSTRIAL (IND) FOR ANNEXED LAND WITH A PRIOR COUNTY LAND USE DESIGNATION OF MEDIUM DENSITY RESIDENTIAL -2 (M -2) AND COMMERCIAL/INDUSTRIAL (C /I) FOR LAND CONSISTING OF 5.90 ACRES, MORE OR LESS, SITUATED SOUTH OF VICKERS ROAD (A.K.A. 99 STREET) AND WEST OF THE F.E.C. RAILROAD; AUTHORIZING FINDINGS AND ADMINISTRATIVE ACTIONS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR EFFECTIVE DATE. (Advertised 12/1/09) MOTION by Ms. Coy and SECOND by Mr. Hill to approve adoption of Ordinance No. 0 -09 -07 land use amendment. Result of the roll call: AYES: All NAYS: None Passed 5 -0 Result of the roll call: AYES: All NAYS: None Passed 5 -0 10. UNFINISHED BUSINESS None DR FT 09.152 C. Second Reading, QUASI- JUDICIAL Public Hearing and Final Adoption of 143 -156 Ordinance No. 0 -09 -08 Zoning Amendment for Bridgeton Real Fund 1, LP 5.9 Acre Parcel (GMD Transmittal, 0- 09 -08, Application) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, DESIGNATING AN INITIAL ZONING CLASSIFICATION OF INDUSTRIAL (IN) FOR ANNEXED LANDS WITH A PRIOR COUNTY ZONING DESIGNATION OF RESIDENTIAL MOBILE HOME. 8 UNITS PER ACRE (RMH -8) AND HEAVY COMMERCIAL (CH) FOR LAND CONSIDITING OF 5.90 ACRES, MORE OR LESS, SITUATED SOUTH OF VIKERS ROAD (A.K.A. 99 STREET) AND WEST OF THE F.E.C. RAILROAD; PROVIDING FOR REPEAL OF ORDINANCES OR PARTS OF ORDINANCE IN CONFLICT HEREWITH; PROVIIDNG FOR SEVERABILITY; AND PROVIDING FOR EFFECTIVE DATE. (Advertised 12/1/09) MOTION by Ms. Coy and SECOND by Mayor Gillmor to approve Ordinance 0 -09 -08 public hearing and final adoption of the zoning amendment. Regular City Council Meeting December 16, 2009 Page Six 11. PUBLIC INPUT (Procedures on Back of Agenda) Jim Sunnycalb, Sebastian, apologized that his trains were not at Riverview Park last weekend because of the rain, but to make up for it they would be there Christmas Eve from 4:00 p.m. to 8:00 p.m. and Santa's house would be open for visitors. Seth Goldsmith, Pastor, Coastal Community Church, said on Christmas Eve in Riverview Park there will be carolers at 6 p.m., he will read The Christmas Story from Luke Chapter 2, and there will be snacks, coffee, and hot cocoa. He said he talked to Santa Claus who will not be able to make it that night. 12 NEW BUSINESS DR4p 09.048 A. ECONOMIC DEVELOPMENT ISSUES Resolution No. R -09 47 Amended Economic Development Plan (City 157 -166 Manager Transmittal, R- 09 -47, Amended ED Plan) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, REPEALING R- 09 -11, ADOPTING AN AMENDED ECONOMIC DEVELOPMENT PLAN FOR THE CITY OF SEBASTIAN AND USING SUCH PLAN AS THE GROUNDWORK FOR A FINAL ECONOMIC DEVELOPMENT ELEMENT TO BE INCORPORATED INTO THE CITY OF SEBASTIAN COMPREHENSIVE PLAN AT A LATER DATE; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. The City Attorney read the title of Resolution No. R 09 47. MOTION by Mr. Wright and SECOND by Mr. Hill to approve Resolution No. R- 09 -47. There was no public input. Result of the roll call: AYES: All NAYS: None Passed 5 -0 167 ii. Costs for Developing Market Plan (EDO Transmittal) The City Manager said this is an information item for Council, staff planned to continue to work in -house on it, and he will take any direction from Council. Mayor Gillmor said it is a good idea not to spend money until we have a concrete item to market at the Airport. Ms. Coy suggested they tag onto the County, Indian River County Chamber, and Sebastian Chamber. 6 Regular City Council Meeting December 16, 2009 Page Seven 169 -175 Mr. Hill agreed that we should be working with those already aggressively marketing this community using the resources they have. Mr. Wright corrected Bill Fruth's name in the agenda material. He agreed that the Chambers should be utilized, and at a monthly meeting at the Airport, a few good ideas materialized. One idea was that Velocity and LoPresti have shows coming up with pilots and manufacturers at other airport's where we can attend and promote Sebastian. Ms. Coy and Mayor Gillmor thought that was a good idea. First Reading of Ordinance No. 0 -10 -01 Tax Abatement Program Set Public Hearing for 1/13/10 (City Manager Transmittal, 0- 10 -01) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, IMPLEMENTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM FOR THE CITY OF SEBASTIAN; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE AND SUNSET DATE. The City Attorney read the title of Ordinance No. 0 -10 -01 and advised this must be put into effect according to state law and is step two of the abatement process. He advised there is no extraneous material in this ordinance as there was in the first ordinance presented to Council. MOTION by Mayor Gillmor SECOND by Mr. Wright to pass Ordinance No. 0 -10 -01 on first reading. There was no public input. In response to Mr. Hill, the City Attorney confirmed this was as lean as possible and tracks State law. Result of the roll call: AYES: All NAYS: None Passed 5 -0. DRAFT iv. Tax Abatement Granting Procedure (City Manager Transmittal, Draft 177 203 Ordinance, IRC Draft Program) The City Manager said this is to keep the economic train rolling, get some feedback on the ranking procedure, and directed Council to circle page 193. Mayor Gillmor said he was concerned that the whole process seems lengthy and might be too much weight for the City of Sebastian noting that one or two companies a year might qualify for the abatement. Mr. Hill said his goal was to be competitive with neighboring communities. Regular City Council Meeting December 16, 2009 Page Eight Mr. Wright said the Indian River County draft was a duplicate of St. Lucie County with the exception of circle pages 193 and 203. He explained that this was designed for a county substantively larger than Sebastian and he tried to add up to a business that might reach an 18 point level and he could not imagine such a business in Sebastian. He said he would give the St. Lucie CRA district guidelines to the City Manager, and look for a procedure that will more closely fit Sebastian. Ms. Coy added Indian River County has far more commercial /industrial space, and agreed it has to be simple. Mayor Gillmor said he appreciated the comments, met with the Mayors and Mayor Sawnick wants to talk about a tax abatement for Vero so if we want to be in front we must do it right. 9. CITY ATTORNEY MATTERS none. 10. CITY MANAGER MATTERS The City Manager wished everyone a happy holiday. 11. CITY CLERK MATTERS none 12. CITY COUNCIL MATTERS A. Council Member Coy Ms. Coy donned a singing, wiggly elf hat and wished everyone a Happy Hanukkah and Merry Christmas. B. Council Member Wolff Mr. Wolff donned a Santa hat and wished everyone a Merry Christmas, Happy New Year and safe holiday. C. Council Member Wright Mr. Wright said the City Manager has worked long and hard on the conservation areas at the Airport and he would like to get the HCP approved to market it along with the Airport. He hoped everyone has a terrific Christmas and New Year. He asked everyone to pray for better economic times. D. Mayor Gillmor Mayor Gillmor wished everyone a great Christmas and Happy New Year and agreed with Mr. Wright to pray for better economic times. He also asked those with any spare money to remember the food banks. 8 Regular City Council Meeting December 16, 2009 Page Nine E. Vice Mayor Hill Mr. Hill wished everyone a Happy Holidays and blessed New Year. 13. Being no further business, Mayor Gillmor adjourned the regular meeting at 7:23 p.m. Approved at the January 13, 2010 Regular City Council Meeting. Richard H. Gillmor ATTEST: Sally A. Maio, City Clerk DRAF Subject: H D Construction Change Order 6 for Access Road East Ap ro d or Submittal by: i ii ii( Agenda No. oq, /Z5 Department Origin: Airport Director: F inance Director: City Clerk: S. Maio City Attorney: Date Submitted: For Agenda of: Municipal A' sort J. Griffin �_,,,4 0 A6/ K. Kill o re ryr g K R. A. Ginsburg January 5, 2010 January 13, 2010 "I, r r, City Manager Exhibit: Change Order 6 EXPENDITURE REQUIRED: $28,447.25 AMOUNT BUDGETED: $675,653 APPROPRIATION REQUIRED: -0- HOME OF PELICAN TSLAND SUMMARY In August 2009, Council approved funding for construction services of the Airport "Access Road East" project. H &D Construction was awarded that contract by Council in the amount of $468,456.60. Since that time: Change Order (hereinafter CO) 1 ($14,040.75) addressed changes in the St. Johns River WMD permit; CO 2 ($32,960), approved by Council on November 18, 2009, addressed paving of Taxilane E; CO 3 ($14,904) addressed FPL conduit installation; CO 4 ($4,089.40) addressed additions to golf course screening; and CO 5 (no expenditure) addressed a time extension due to IRC Utilities permit delay at the beginning of the project. After the aforementioned Change Orders, total contract amount is presently $534,450.75. After beginning the project, it became apparent that economies in the bid process would allow for street lighting. In an effort to increase safety /security of the area, while increasing the aesthetics of the finished project, airport staff has requested estimates from the contractor for the lighting installation. CO 6 reflects the electrical work necessary for this addition. Purchase of poles and fixtures will be in accordance with city purchasing requirements and will be outside the H &D contract, thereby allowing for sales tax saving by the city. The budgeted project amount for the project is $675,653 and, if approved, CO 6 would bring the new contract amount to $562,898.00. Therefore, approval of CO 6 would require no additional appropriation. RECOMMENDED ACTION Approve expenditure of $28,447.25 for H &D Construction Change Order 6. CHANGE ORDER 6 PURCHASE ORDER 6120 FDOT FN 407706- 1 -94 -01 AGREED: H &D Construction Co. Inc. Authorized Signature CITY OF SEBASTIAN: City Manager Project Manager Date: Date: HOME OF PEUCAN ISLAND CITY OF SEBASTIAN CHANGE ORDER City Attorney as to legal PROJECT NAME: Airport Drive East Extension PROJECT C -3502 CONTRACTOR: H &D Construction Co. Inc. PHONE 772 429 -1620 ADDRESS: 1404 S. 28th Street CONTRACT NAME: Sebastian Municipal Airport Fort Pierce, Fl 34947 Airport Drive East Extension CONTRACT DATE: August 13, 2009 By the signature affixed below, both the City and the Contractor agree to the changes as stipulated herein. Upon proper execution of this document, the Contractor is hereby notified to commence work. All changes stated below are hereby incorporated and made a part of the Contract identified above, and all the terms and conditions of said Contract are enjoined and in full force while executing the change(s) stipulated as follows: B Lighting R evised Specs 16010 -6 7 1. See attached spreadsheet "Change Order #6 (Electrical Li htin Installation 16120 -8 and Plans E -01 thru E -05. H &D Construction Co. Inc. Change Order 6 A) Contract Price Prior to this Change Order $534,450.75 Net Increase (Decrease) Resulting from this Change Order 28,447.25 New Contract Price Including this Change Order $562,898.00 B) Contract Time Prior to the Change Order (Number of Days) 166 days Net Increase (Decrease) Resulting from the Change Order (Number of Days) 0 days TOTAL (Number of Days) 166 days New Completion Date Including this Change Order Feb. 15, 2010 Approvals By City of Sebastian in accordance with Code Sec. 2 -10 (check one): X City Manager Authorization cumulative amount less than 15% of contract price or $15,000 single change order City Council Authorization cumulative amount exceeds 15% of contract price or $15,000 single change order (meeting date ATTEST: Finance Director as to budget Sally A. Maio, MMC, City Clerk 2 0 to 8. co a 8. 2 0 0 CO I 2 2 0 o 2 To cn 8. SJN3WI1000 NOIlONN!SNOO Ciala0ANOO 34 H co W Z w W OW cL 0 2 a w J f W N N mu tt x r i-nn-nwna+ MW^am-a[- �ivmManevfKm \04+� �wTial<4lkmiiw�\Wn.wt eTAn�4N4 3 3 n\nYOSI.W6 n yes �Tb g 0 9 0 9 8 8 0 8 O 9 8 Qo 5 5 00 y 8 g E 8 0 g 5 $R im g 1,11 go8y m tom Ei g AR m ij o 's g gz �S� 9! s b n o 5 s o oi" p 0, Hi e w z Og 8 �m 4 0 z 0h q i pz HHO gN F °n> p a —m_ N y F ii c. m D�p A H a g g ;m IP b m yy gm g s� fig£ a mm 0 m S g° j g o 'o pPm '5g g„,. pL gA" z�$ m y c°44 fo S g Y q yy %F., y �i a °m P `2 z c 9 ra tl gt5 F On m! o Ii y 3� i, 4 w 9 PR g RR ,,F, yg y fi P g a4 0 4 mq 2 2 V. zso m� m W 2 N AX F q Ai g 00 q, 1 s gg y y n z q 9 8 2 8 o 9 2 O Z v D 3g o8 8 g ciP off' 8 F 0 8 9 5 9 5 g 0 m m m z m o r z r o m �z I D A -7 v p m O cn z z� 4 8 8 [If g o afi CONFORMED CONSTRUCTION DOCUMENTS m31111000 _O m= _OANO0 E .E a \k )k )k 9 N. SM. ONLY INVITING CONTROLS AREA POLE LIONTS GATE NO. 3 CCONTRIX IFA GATE NO.1 CONTROLLER AND LNTNT OUS vi GTE ❑O Y i R:3e a X X qy 3N3 SOO H SPACE ONLY !PACE ONLY LINIT LIFT TRAMS N FLA EACH) 6 66 era 11.0. U*,_ trl M. r.r pe lY1eueN000-11- »ntcJw- cauwMUV -1. xm.+. s na my CONFORMED CONSTRUCTION DOCUMENTS a r a 1 GATE AREA LIGHT CONTROL WIRING S1N3161f1000 NOI10f1211SNO0 031612103N00 .VIII Nggi JO O co co w Z cc x 0 W Ow a Q :4 p S 9 o 4 a W J tt ti IOW Of +e x ..1.311,81111103 1p ufa313b t Vw+I.rwra an rrAn�nlu Item 16010 -1 Item 16010 -2 Item 16010 -3 Item 16010 -4 Item 16010 -5 New electrical service, complete. Includes excavation, service lateral, installation, power equipment rack structure, connections to lift station control panel, lift station power supply, gate system power supply, concrete foundation, circuit breakers, panel board, conduits, RGS conduits, conductors, TVSS unit, splice kits, concrete, stainless steel mounting hardware, connections, grounding, ground rods, exothermic welds, circuit identification, labor, power wiring and conduits, terminations, testing, backfill and etc. for a complete working system in place.- Price per lump sum New gate no. 1 electrical service, complete. Includes excavation, installation, power pedestal, concrete island, connections to gate operator, gate operator power wiring, gate operator control wiring, gate operator concrete foundation, disconnect switch, conduits, RGS conduits, conductors, photocell, light fixture pole, pole base, lamp, installation of Owner furnished light pole. light fixture, lamp(s), fuses, fuse holders, concrete bollards, junction boxes, key pad pedestal, detector loops, splice kits, concrete, rebar, stainless steel mounting hardware, sawcutting of pavement, pavement sealant, connections, grounding, ground rods, exothermic welds, circuit identification, labor, power control wiring and conduits, terminations, testing, backfill and etc. for a complete working system in place.- Price per lump sum New gate no. 2 electrical service, complete. Includes excavation, installation, power pedestal, concrete island, connections to gate operator, gate operator power wiring, gate operator control wiring, gate operator concrete foundation, disconnect switch, conduits, RGS conduits, conductors, photocell, light fixture pole pole- brie, lance installation of Owner furnished light pole, light fixture, lamp(s), fuses, fuse holders, concrete bollards, junction boxes, key pad pedestal, detector loops, splice kits, concrete, rebar, stainless steel mounting hardware, sawcutting of pavement, pavement sealant, connections, grounding, ground rods, exothermic welds, circuit identification, labor, power control wiring and conduits, terminations, testing, backfill and etc. for a complete working system in place.- Price per lump sum Install Owner furnished light pol luminaire mounting hardware. luminaire and lamp for pole with single luminaire. Furnish and install fuses. fuse holders and make all connections for a complete and operational. unit- Price per each :Install Owner furnished light pole. luminaire mounting, hardware luminaires and lamps for pole with two luminaires. Furnish and install fuses, fuse holders and make all connections for a complete and operational unit- Price per each Airport Drive East Extension Basic Electrical Requirements Sebastian Municipal Airport June 2009 16010 -6of7 ete. Item 160 0-6 Provide and install area liohtin Y control s stem com 1.Jpv.radp_panel board size and circuit breakers _pre revised plans- Price per lump sum END OF SECTION 16010 Airport Drive East Extension Basic Electrical Requirements Sebastian Municipal Airport June 2009 16010-7 of 7 PART 4 METHOD OF MEASUREMENT 4.1 GENERAL. Payment will be made at the contract unit price per linear feet for conductors installed in new conduits between the new service power and distribution equipment rack and the gate system power pedestal, the pad mounted transformer and lift station control panel, complete in place by the Contractor and accepted by the Owner's authorized representative. This price shall be full compensation for furnishing all materials, splice kits, connectors, terminations, ground rod connections, circuit identification, testing and for all preparation and installation of these materials. This pay item shall also include all mechanical and hand excavation, backfill, labor, equipment, tools, and all incidentals necessary to complete this item. Payment will be made under: Item 16120 -1 Item 16120 -2 Item 16120 -3 Item 16120 -4 Item 16120 -5 Item 16120 -6 Airport Drive East Extension Sebastian Municipal Airport #10, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing, identification, and etc. for a complete working system in place Price per Linear foot. #8, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing, identification, and etc. for a complete working system in place Price per Linear foot. #4, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing, identification, and etc. for a complete working system in place Price per Linear foot. #2, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing, identification, and etc. for a complete working system in place Price per Linear foot. #6, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing identification, and etc. for a complete working system in place Price bier Linear foot. #1 /0, 600V, XHHW Conductor installed in new conduit. Includes Installation, connections, conductors, labor, splice kits, testing. identification, and etc. for a complete working system in place Price per Linear foot END OF SECTION 16120 16120 -8of8 Conductors June 2009 m,ra SEBATiAN HOME OF PELICAN ISLAND City of Sebastian 1225 Main Street Sebastian, Florida 32958 Authorize Mayor to Execute FDEP Sovereign Submerged Lands Lease for Yach CI iers Cit �Ana 46 City Attorney Agenda No: C) 0 15 Department Origin: City Clerk cAAN- Date Submitted: 1/7/10 For Agenda of: 1/13/10 FDEP Cover Letter, Submerged Lands Lease SUMMARY STATEMENT FDEP has required us to obtain a sovereign submerged lands lease for the Yacht Club piers the same as we currently hold for the Main Street pier and the Twin Piers, due to a small anticipated repair that will slightly enlarge the pier. RECOMMENDED ACTION Authorize the Mayor to execute the sovereign submerged lands lease as requested by FDEP, and forward the executed lease to FDEP for final department execution, and later return to the City for recording in Indian River County. sa �QO AOTECTION December 31, 2009 City of Sebastian, Florida Attn.: Ms. Ginny Sieferd 1225 Main Street Sebastian, Florida 32958 BOT File No.: 310343953 Lessee: City of Sebastian, Florida Dear Ms. Sieferd: Enclosed is a lease instrument, which requires acceptance by Mr. Richard H. Gillmor by notarized signature as Mayor of the City of Sebastian, Florida (two witnesses required). Pursuant to Chapter 695, Florida Statutes, the names of the person executing the instrument, the two witnesses, and the notary public must be legibly printed or typewritten directly below that person's signature. Please execute and return the enclosed instrument/documents and any additional information requested within 30 days after receipt of this letter. Upon receipt and acceptance, we will transmit the lease instrument for final departmental execution. A fully executed instrument will be provided to you for recording in the county records where the facility is located. Your cooperation and assistance are appreciated. If you have any questions regarding this matter, please feel free to contact me at the letterhead address above (Mail Station No. 125) or at (850) 245 -2720. Sind ttie J. Scott Government Operations Consultant I Bureau of Public Land Administration Division of State Lands /pjs Enclosures (Fee Waived Lease Instrument) By federal express ground Florida Department of Environmental Protection Marjory Stoneman Douglas Budding 3900 Commonwealth Boulevard Tallahassee, Florida 32399 -3000 7l4ore Protection, Less Process" i' iw. clep.state. ft us Charlie Crist Governor Leff Kottkamp i. Governor Michael Vf. Scne Sec ctary CD `n c_- Tj ri3 (1) -1 -J Cr' CD "C) c� N CD C11 �4z This Instrument Prepared By: Pattie J. Scott Recurring Revenue Section Bureau of Public Land Administration 3900 Commonwealth Boulevard Mail Station No. 125 Tallahassee, Florida 32399 BOT No.: 310343953 PA No.: 31-285751-001 BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA SOVEREIGNTY SUBMERGED LANDS LEASE THIS LEASE is hereby issued by the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida, hereinafter referred to as the Lessor. WITNESSETH: That for and in consideration of payment of the annual lease fees hereinafter provided and the faithful and timely performance of and compliance with all terms and conditions stated herein, the Lessor does hereby lease to City of Sebastian, Florida, hereinafter referred to as the Lessee, the sovereignty lands described as follows: A parcel of sovereignty submerged land in Section 06 Township 31 South, Range 39 East, in the Indian River, Indian River County, containing 8,142 square feet, more or less, as is more particularly described and shown on Attachment A, dated December 16, 2009. TO HAVE THE USE OF the hereinabove described premises for a period of 5 years from January 15, 2009, the effective date of this lease. The terms and conditions on and for which this lease is granted are as follows: 1. USE OF PROPERTY: The Lessee is hereby authorized to construct and operate a 2 -slip docking facility with a concrete boat ramp and fishing pier exclusively to be used for fishing and mooring recreational vessels in conjunction with an upland yacht club, without fueling facilities, with a sewage pumpout facility if it meets the regulatory requirements of the State of Florida Department of Environmental Protection or local authority, whichever entity applies the more stringent criteria, and without liveaboards as defined in paragraph 29, as shown and conditioned in Attachment A, and the State of Florida Department of Environmental Protection, Exemption No. 31- 285751 -001, dated January 15, 2009, incorporated herein and made a part of this lease by reference. The construction of the structures described in Attachment A shall be completed within the initial term hereof or within the first 5 years of the initial term if the initial term is for a period greater than 5 years. The failure to complete the construction of all authorized structures within this time period shall constitute a material breach of the lease causing the lease to automatically terminate upon the expiration of the initial term or 5 years, whichever is sooner, without any right of renewal. All of the foregoing subject to the remaining conditions of this lease. [02 -29] 2. AGREEMENT TO EXTENT OF USE: This lease is given to the Lessee to use or occupy the leased premises only for those activities specified herein and as conditioned by the State of Florida Department of Environmental Protection, Environmental Resource Exemption Permit. The Lessee shall not change or add to the approved use of the leased premises as defined herein (e.g., from commercial to multi- family residential, from temporary mooring to rental of wet slips, from rental of wet slips to contractual agreement with third party for docking of cruise ships, from rental of recreational pleasure craft to rental or temporary mooring of charter /tour boats, from loading/offloading commercial to rental of wet slips, etc.), shall not change activities in any manner that may have an environmental impact that was not considered in the original authorization or regulatory permit, or shall not change the type of use of the riparian uplands without first obtaining a regulatory permit/modified permit, if applicable, and the Lessor's written authorization in the form of a modified lease,the payment of additional fees, if applicable. If at any time during the lease term this lease no longer satisfies the requirements of subparagraph 18- 21.011(1)(b)7., Florida Administrative Code, for a fee waived lease, the Lessee shall be required to pay an annual lease fee in accordance with Rule 18-21.011, Florida Administrative Code, and if applicable, remove any structures which may no longer qualify for authorization under this lease. 3. EXAMINATION OF LESSEE'S RECORDS: The Lessor is hereby specifically authorized and empowered to examine, for the term of this lease including any renewals, plus three (3) additional years, at all reasonable hours, the books, records, contracts, and other documents confirming and pertaining to the computation of annual lease payments as specified in paragraph two (2) above. 4. MAINTENANCE OF LESSEE'S RECORDS: The Lessee shall maintain separate accounting records for: (i) gross revenue derived directly from the use of the leased premises, (ii) the gross revenue derived indirectly from the use of the leased premises, and (iii) all other gross revenue derived from the Lessee's operations on the riparian upland property. The Lessee shall secure, maintain and keep all records for the term of this lease and any renewals plus three (3) additional years. This period shall be extended for an additional two (2) years upon request for examination of all records and accounts for lease verification purposes by the Lessor. 5. PROPERTY RIGHTS: The Lessee shall make no claim of title or interest to said lands hereinbefore described by reason of the occupancy or use thereof, and all title and interest to said land hereinbefore described is vested in the Lessor. The Lessee is prohibited from including, or making any claim that purports to include, said lands described or the Lessee's leasehold interest in said lands into any form of private ownership, including but not limited to any form of condominium or cooperative ownership. The Lessee is further prohibited from making any claim, including any advertisement, that said land, or the use thereof, may be purchased, sold, or re -sold. 6. INTEREST IN RIPARIAN UPLAND PROPERTY: During the term of this lease, the Lessee shall maintain a leasehold or fee simple title interest in the riparian upland property and if such interest is terminated, the lease may be terminated at the option of the Lessor. Prior to sale and/or termination of the Lessee's leasehold or fee simple title interest in the upland property, Lessee shall inform any potential buyer or transferee of the Lessee's upland property interest of the existence of this lease and all its terms and conditions and shall complete and execute any documents required by the Lessor to effect an assignment of this lease, if consented to by the Lessor. Failure to do so will not relieve the Lessee from responsibility for full compliance with the terms and conditions of this lease which include, but are not limited to, payment of all fees and/or penalty assessments incurred prior to such act. 7. ASSIGNMENT OF LEASE: This lease shall not be assigned or otherwise transferred without prior written consent of the Lessor or its duly authorized agent. Such assignment or other transfer shall be subject to the terms, conditions and provisions of management standards and applicable laws, rules and regulations in effect at that time. Any assignment or other transfer without prior written consent of the Lessor shall be null and void and without legal effect. 8. INDEMNIFICATION /INVESTIGATION OF ALL CLAIMS: The Lessee shall investigate all claims of every nature at its expense. Each party is responsible for all personal injury and property damage attributable to the negligent acts or omissions of that party and the officers, employees and agents thereof. Nothing herein shall be construed as an indemnity or a waiver of sovereign immunity enjoyed by any party hereto, as provided in Section 768.28, Florida Statutes, as amended from time to time, or any other law providing limitations on claims. 9. VENUE: Lessee waives venue as to any litigation arising from matters relating to this lease and any such litigation between Lessor and Lessee shall be initiated and maintained only in Leon County, Florida. Page 2 of 12 Pages Sovereignty Submerged Lands Lease No. 310343953 10. NOTICES /COMPLIANCE/TERMINATION: The Lessee binds itself; its successors and assigns, to abide by the provisions and conditions herein set forth, and said provisions and conditions shall be deemed covenants of the Lessee, its successors and assigns. In the event the Lessee fails or refuses to comply with the provisions and conditions herein set forth, or in the event the Lessee violates any of the provisions and conditions herein set forth, and the Lessee fails or refuses to comply with any of said provisions or conditions within twenty (20) days of receipt of the Lessor's notice to correct, this lease may be terminated by the Lessor upon thirty (30) days written notice to the Lessee. If canceled, all of the above described parcel of land shall revert to the Lessor. All costs and attorneys' fees incurred by the Lessor to enforce the provisions of this lease shall be paid by the Lessee. All notices required to be given to the Lessee by this lease or applicable law or administrative rules shall be sufficient if sent by U.S. Mail to the following address: City of Sebastian 1225 Main Street Sebastian, Florida 32958 The Lessee shall notify the Lessor by certified mail of any change to this address at least ten (10) days before the change is effective. 11. TAXES AND ASSESSMENTS: The Lessee shall assume all responsibility for liabilities that accrue to the subject property or to the improvements thereon, including any and all drainage or special assessments or taxes of every kind and description which are now or may be hereafter lawfully assessed and levied against the subject property during the effective period of this lease. 12. NUISANCES OR ILLEGAL OPERATIONS: The Lessee shall not permit the leased premises or any part thereof to be used or occupied for any purpose or business other than herein specified unless such proposed use and occupancy are consented to by the Lessor and the lease is modified accordingly, nor shall Lessee knowingly permit or suffer any nuisances or illegal operations of any kind on the leased premises. 13. MAINTENANCE OF FACILITY/RIGHT TO INSPECT: The Lessee shall maintain the leased premises in good condition, keeping the structures and equipment located thereon in a good state of repair in the interests of public health, safety and welfare. No dock or pier shall be constructed in any manner that would cause harm to wildlife. The leased premises shall be subject to inspection by the Lessor or its designated agent at any reasonable time. 14. NON DISCRIMINATION: The Lessee shall not discriminate against any individual because of that individual's race, color, religion, sex, national origin, age, handicap, or marital status with respect to any activity occunying within the area subject to this lease or upon lands adjacent to and used as an adjunct of the leased area. During the lease term, the Lessee shall post and maintain the placard furnished to the Lessee by the Lessor in a prominent and visible location on the leased premises or adjacent business office of the Lessee. It shall be the responsibility of the Lessee to post the placard in a manner which will provide protection from the elements, and, in the event that said placard becomes illegible at any time during the term of this lease (including any extensions thereof), to notify the Lessor in writing, so that a replacement may be provided. 15. ENFORCEMENT OF PROVISIONS: No failure, or successive failures, on the part of the Lessor to enforce any provision, nor any waiver or successive waivers on its part of any provision herein, shall operate as a discharge thereof or render the same inoperative or impair the right of the Lessor to enforce the same upon any renewal thereof or in the event of subsequent breach or breaches. 16. PERMISSION GRANTED: Upon expiration or cancellation of this lease all permission granted hereunder shall cease and terminate. 17. RENEWAL PROVISIONS: Renewal of this lease shall be at the sole option of the Lessor. Such renewal shall be subject to the terms, conditions and provisions of management standards and applicable laws, rules and regulations in effect at that time. In the event that Lessee is in full compliance with the terms of this lease, the Lessee may apply in writing for a renewal. Such application for renewal must be received by Lessor no sooner than 120 days and no later than 30 days prior to the expiration date of the original or current term hereof. The term of any renewal granted by the Lessor shall commence on the last day of the previous lease term. If the Lessee fails to timely apply for a renewal, or in the event the Lessor does not grant a renewal, the Lessee shall vacate the leased premises and remove all structures and equipment occupying and erected thereon at its expense. The obligation to remove all structures authorized herein upon termination of this lease shall constitute an affirmative covenant upon the riparian upland property more specifically described in Attachment B which shall run with the title to said riparian upland property, and shall be binding upon Lessee and Lessee's successors in title or successors in interest. Page 3 of 12 Pages Sovereignty Submerged Lands Lease No. 310343953 18. REMOVAL OF STRUCTURES /ADMINISTRATIVE FINES: If the Lessee does not remove said structures and equipment occupying and erected upon the leased premises after expiration or cancellation of this lease, such structures and equipment will be deemed forfeited to the Lessor, and the Lessor may authorize removal and may sell such forfeited structures and equipment after ten (10) days written notice by certified mail addressed to the Lessee at the address specified in Paragraph 8 or at such address on record as provided to the Lessor by the Lessee. However, such remedy shall be in addition to all other remedies available to the Lessor under applicable laws, rules and regulations including the right to compel removal of all structures and the right to impose administrative fines. 19. REMOVAL COSTS/LIEN ON RIPARIAN UPLAND PROPERTY: Any costs incurred by the Lessor in removal of any structures and equipment constructed or maintained on state lands shall be paid by Lessee and any unpaid costs and expenses shall constitute a lien upon the interest of the Lessee in the riparian upland property enforceable in summary proceedings as provided by law. 20. RECORDATION OF LEASE: The Lessee, at its own expense, shall record this fully executed lease in its entirety in the public records of the county within which the lease site is located within fourteen (14) days after receipt, and shall provide to the Lessor within ten (10) days following the recordation a copy of the recorded lease in its entirety which contains the O.R. Book and pages at which the lease is recorded. 21. RIPARIAN RIGHTS/FINAL ADJUDICATION: In the event that any part of any structure authorized hereunder is determined by a final adjudication issued by a court of competent jurisdiction to encroach on or interfere with adjacent riparian rights, Lessee agrees to either obtain written consent for the offending structure from the affected riparian owner or to remove the interference or encroachment within 60 days from the date of the adjudication. Failure to comply with this paragraph shall constitute a material breach of this lease agreement and shall be grounds for immediate termination of this lease agreement at the option of the Lessor. 22. AMENDMENTS/MODIFICATIONS: This lease is the entire and only agreement between the parties. Its provisions are not severable. Any amendment or modification to this lease must be in writing, must be accepted, acknowledged and executed by the Lessee and Lessor, and must comply with the rules and statutes in existence at the time of the execution of the modification or amendment. Notwithstanding the provisions of this paragraph, if mooring is authorized by this lease, the Lessee may install boatlifts within the leased premises without formal modification of the lease provided that (a) the Lessee obtains any state or local regulatory permit that may be required; and (b) the location or size of the lift does not increase the mooring capacity of the facility. 23. ADVERTISEMENT /SIGNS/NON -WATER DEPENDENT ACTIVITIES /ADDITIONAL ACTIVITIES /MINOR STRUCTURAL REPAIRS: No permanent or temporary signs directed to the boating public advertising the sale of alcoholic beverages shall be erected or placed within the leased premises. No restaurant or dining activities are to occur within the leased premises. The Lessee shall ensure that no permanent, temporary or floating structures, fences, docks, pilings or any structures whose use is not water dependent shall be erected or conducted over sovereignty submerged lands without prior written consent from the Lessor. No additional structures and/or activities including dredging, relocation/realignment or major repairs or renovations to authorized structures, shall be erected or conducted on or over sovereignty, submerged lands without prior written consent from the Lessor. Unless specifically authorized in writing by the Lessor, such activities or structures shall be considered unauthorized and a violation of Chapter 253, Florida Statutes, and shall subject the Lessee to administrative fines under Chapter 18 -14, Florida Administrative Code. This condition does not apply to minor structural repairs required to maintain the authorized strictures in a good state of repair in the interests of public health, safety or welfare; provided, however, that such activities shall not exceed the activities authorized by this agreement. 24. ACOE AUTHORIZATION: Prior to commencement of construction and/or activities authorized herein, the Lessee shall obtain the U.S. Army Corps of Engineers (ACOE) permit if it is required by the ACOE. Any modifications to the construction and/or activities authorized herein that may be required by the ACOE shall require consideration by and the prior written approval of the Lessor prior to the commencement of construction and/or any activities on sovereign, submerged lands. 25. COMPLIANCE WITH FLORIDA LAWS: On or in conjunction with the use of the leased premises, the Lessee shall at all times comply with all Florida Statutes and all administrative rules promulgated thereunder. Any unlawful activity which occurs on the leased premises or in conjunction with the use of the leased premises shall be grounds for the termination of this lease by the Lessor. Page 4 of 12 Pages Sovereignty Submerged Lands Lease No. 310343953 26. LIVEABOARDS: The term liveaboard" is defined as a vessel docked at the facility and inhabited by a person or persons for any five (5) consecutive days or a total of ten (10) days within a thirty (30) day period. If liveaboards are authorized by paragraph one (1) of this lease, in no event shall such "liveaboard" status exceed six (6) months within any twelve (12) month period, nor shall any such vessel constitute a legal or primary residence. 27. GAMBLING VESSELS: During the term of this lease and any renewals, extensions, modifications or assignments thereof, Lessee shall prohibit the operation of or entry onto the leased premises of gambling cruise ships, or vessels that are used principally for the purpose of gambling, when these vessels are engaged in "cruises to nowhere," where the ships leave and return to the state of Florida without an intervening stop within another state or foreign country or waters within the jurisdiction of another state or foreign country, and any watercraft used to carry passengers to and from such gambling cruise ships. 28. SPECIAL LEASE CONDITION: Within 30 days after each anniversary of the effective date of this lease, the Lessee shall submit annual certified fmancial records of income and expenses to the State of Florida Department of Environmental Protection, Division of State Lands, Bureau of Public Land Administration, 3900 Commonwealth Blvd, MS 130, Tallahassee, FL 32399. "Income" is defined in subsection 18- 21.003(31), Florida Administrative Code. The submitted financial records shall be certified by a certified public accountant. Page 5 of 12 Pages Sovereignty Submerged Lands Lease No. 310343953 WITNESSES: Original Signature (SEAL) Print/Type Name of Witness Original Signature Print/Type Name of Witness STATE OF FLORIDA COUNTY OF LEON APPROVED AS TO FORM AND LEGALITY: DEP Attorney WITNESSES: STATE OF COUNTY OF My Commission Expires: Page 6 of 12 Pages Sovereignty Submerged Land Lease No. 310343953 BY: BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA Jeffery M. Gentry, Operations and Management Consultant Manager, Bureau of Public Land Administration, Division of State Lands, State of Florida Department of Environmental Protection, as agent for and on behalf of the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida The foregoing instrument was acknowledged before me this day of 20 by Jeffery M. Gentry Operations and Management Consultant Manager, Bureau of Public Land Administration, Division of State Lands, State of Florida Department of Environmental Protection, as agent for and on behalf of the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida. He is personally known to me. Notary Public, State of Florida Printed, Typed or Stamped Name My Commission Expires: Commission/Serial No. "LESSOR" City of Sebastian, Florida (SEAL) BY: Original Signature Original Signature of Executing Authority Richard H. Gillmor Typed/Printed Name of Witness Typed/Printed Name of Executing Authority Mayor Original Signature Title of Executing Authority Typed/Printed Name of Witness "LESSEE" The foregoing instrument was acknowledged before me this day of 20 by Richard H. Gillmor as Mayor, for and on behalf of City of Sebastian, Florida. He is personally known to me or who has produced as identification. Notary Signature Notary Public, State of Commission/Serial No. Printed, Typed or Stamped Name C 2009 UapOueat 4nc. City of Sebastian, Florida, Indian River Drive North of CR 512, Sebastian, Florida 32958 Section 06, Township 31 South, Range 39 East, in the Indian River Quad No. 188 -C, Sebastian, Florida Attachment A Page 7 of 12 Pages SSLL No. 310343953 REPORT OF SURVEY: VICINITY MAP TYPE OF SURVEY: BOUNDARY TOPOGRAPHIC SURVEY THIS SURVEY PERFORMED BY: HOUSTON, SCHULKE, BITTLE STODDARD, INC. L.B. 66905 1717- INDIAN RIVER BLVD., SUITE: 101 VERO BEACH. FLORIDA 32960 PROFESSIONAL SURVEYOR MAPPER IN RESPONSIBLE CHARGE: STUART A. HOUSTON. P.L.S. #4490 THE EXPECTED USE OF THE LAND, AS CLASSIFIED IN THE MINIMUM TECHNICAL STANDARDS (61017 -6. FAC) 15 SUBURBAN. THE MINIMUM RELATIVE ACCURACY FOR THIS TYPE OF BOUNDARY SURVEY IS 1 FOOT IN 7,500. THE MEASUREMENT AND CALCULATION OF A CLOSED GEOMETRIC FIGURE WAS FOUND TO BE IN EXCESS OF THIS ACCURACY REQUIREMENT. THIS SURVEY MEETS ALL APPLICABLE REQUIREMENTS OF THE FLORIDA MINIMUM TECHNICAL STANDARDS AS CONTAINED IN 61617 -6, FAC. ELEVATIONS AND DIMENSIONS SHOWN HEREON ARE MEASURED IN FEET AND DECIMAL PARTS THEREOF. THE LAST DATE OF FIELD WORK WAS: 12/01/08 THIS IS A FIELD SURVEY THE BEARING BASE FOR THIS SURVEY IS A GRID BEARING OF N25•2726•W, ALONG THE EAST RIGHT OF WAY LINE OF INDIAN RIVER DRIVE. BASED ON O.E.P. CONTROL NETWORK MONUMENTS 88- 78 -A-05, AND 88- 78 -A-06, NAD 1983, FINAL ADJUSTMENT OF 1990, FOR FLORIDA EAST ZONE 901. STATIONING AND RIGHT OF WAY SHOWN HEREON IS BASED ON A ROUTE SURVEY PREPARED FOR THE CITY OF SEBASTLAN BY MASTELLER, MOLER REED, INC. PROJECT NUMBER 933984, DATED 2/15/93. THIS SURVEY DOES NOT CERTIFY TO THE EXISTENCE OR LOCATION OF ANY UNDERGROUND IMPROVEMENTS: UTILITIES, FOUNDATIONS, OR ENCROACHMENTS, EXCEPT AS SHOWN. NO INSTRUMENTS OF RECORD REGARDING EASEMENTS, RIGHT -OF -WAYS. OR OWNERSHIP WERE SUPPLIED TO THIS SURVEYOR, EXCEPT AS SHOWN. NO TITLE OPINION OR GUARANTEE IS EXPRESSED OR IMPLIED. UNLESS A COMPARISON IS SHOWN, PLAT VALUES AND MEASURED VALUES ARE THE SAME. UNLESS OTHERWISE INDICATED, FOUND MONUMENTATION. IS UNIDENTIFIED. THE PARCEL OF LAND SHOWN HEREON APPEARS TO BE IN FLOOD ZONE AE 8' VE 9' PER FLOOD PANEL MAP 12091C0077 G, DATED JUNE 30th., 1999. THE ELEVATIONS SHOWN HEREON ARE BASED ON THE NATIONAL GEODETIC VERTICAL DATUM (NGVD) OF 1929. THE BENCHMARK IS UNITED STATES COAST GEODETIC MONUMENT #5 -1969. ELEV. =5.20' LEGAL DESCRIPTION: A PARCEL OF SUBMERGED LAND LYING IN THE INDIAN RIVER IN SECTION 6, TOWNSHIP 31 SOUTH, RANGE 39 EAST, CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA. MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF BLOCK 2, EDGEWATER PARK SUBDIVISION, AS RECORDED IN PLAT BOOK 1, PAGE 23, INDIAN RIVER COUNTY, FLORIDA. THENCE RUN N 68 °19'15" E, A DISTANCE OF 80.17 FEET TO A POINT ON THE EAST RIGHT OF WAY OF INDIAN RIVER DRIVE. SAID POINT BEING THE EAST CORNER OF THE SEBASTIAN YACHT CLUB THENCE LEAVING SAID RIGHT OF WAY, RUN N 66 °28'35" E A DISTANCE OF 210.00 FEET, TO A POINT ON THE BULKHEAD LINE AS ESTABLISHED PER THE MAP OF THE CITY OF SEBASTIAN, RECORDED IN PLAT BOOK 5, PAGE 28, OF THE PUBLIC RECORDS OF INDIAN RIVER COUNTY, THENCE RUN S25 °22'26 "E, 46.92 FEET TO THE POINT OF BEGINNING. THENCE RUN N65 °30'56 "E, 191.55 FEET; THENCE RUN N65 38'43 "E, 157.03 FEET; THENCE RUN N24 °36'08"W, 12.15 FEET; THENCE RUN N64 °30'32 "E, 11.68 FEET; THENCE RUN S23 47'52 "E, 32.14 FEET; THENCE RUN S65 "13'53"W, 11.10 FEET; THENCE RUN N25 27'29 "W, 11.95 FEET; THENCE RUN S65 °38'42 "W, 131.68 FEET; THENCE RUN S24 29'10 "E, 10.00 FEET; THENCE RUN S65 °38'42"W, 25.00 FEET; THENCE RUN N24 29'10"W, 10.00 FEET; THENCE RUN S65 30'50"W, 50.95 FEET; THENCE RUN S24 29'10 "E, 10.00 FEET; THENCE RUN S65 "W, 25.00 FEET; THENCE RUN N24 29'10"W, 10.00 FEET; THENCE RUN S65 °30'50"W, 5.79 FEET; THENCE RUN S34 "41'10"W, 69.12 FEET; THENCE RUN S67 °30'21 "W, 8.00 FEET TO A POINT ON THE END OF A CONCRETE BOAT RAMP, THENCE RUN S23 °1719 "E, ALONG THE END OF SAID CONCRETE BOAT RAMP, 31.93 FEET; THENCE LEAVING SAID CONCRETE BOAT RAMP RUN N63 46'05 "E, 9.00 FEET; THENCE RUN S22 41'14 "E, 7.66 FEET; THENCE RUN S65 04'S0"W, 49.61 FEET TO A POINT ON SAID ESTABLISHED BULKHEAD LINE; THENCE RUN N25 °22'26' W ALONG SAID ESTABLISHED BULKHEAD LINE 82.72 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 8,142 SQ.FT. (0.19 ACRES) AND IS SUBJECT TO RESERVATIONS, RESTRICTIONS, AND EASEMENTS OF RECORD. PLAT OF SURVEY FOR: CITY OF SEBASTIAN/ SUBMERGED LAND LEASE m� SURVEYORS MA AC CSi/z /A.ibw: U NB THL6 Ins Rr[ S M re. Rai Aid, PIY :I]IB 11.00 RI IN "BNI 6�4:IN]I 3011°,. l01YIVM'/ C y lw 1 C law PO. II, IIH REILC IONS DESCRIPTION BY 117E B0I1/¢a01, roroc {NBc PROJECT. aaI DARK. RIaRDS DRAWN BR Ell[ CHECKED BI. SAn SCALE NA SHEET, ]O- THIS SURVEY IS NOT VALID WITHOUT THE SIONA TUNE 4.VD THE A0 RAISED SEAL OF THE ELORI14 LICENSED SUR 4'EI.OR NO MAPPER NAR/E BELOH: (4 t STUART A. HOUSTON, P.LSBN01 Attachment A Page 8 of 12 Pages SSLL No. 310343953 rb a s PlArq a'R 14019O 1; T 1 A j k Ed/ 0 Nd \o'��/g S y7 65\, fi x sk Q i �R S S A 'r' 6 7u 6 "a r Mf ffi �jP i g 1 4 1i 'lid t- g 1 ai \a 'Pik# CITY OF SEBASTIAN/ SUBMERGED LAND LEASE N L 4 D Romp YL.I/1�4PPFJypy�[ PR 1 LAND 57/IP� AP.S�R ,ll,IppL'RS Emw.Maw.i,,.N. LE BU Gil Me Rim 9M Rik RN I'm &NA FI.i4 EKO $:RTE JP. L`U 6a* ;1770 0 Id eRM: MR9 Attachment A Page 9 of 12 Pages SSLL No. 310343953 INLET DATE O RE, R EL AREA LEGAL R6V LFG,L OSLTiEnew ADO PROPOSED DOGE. REVISE LEGAL REVTSEr6RCQ.4 LwwBITS DESCRIPTION MAHN EIH CHFCEFURI, IJL -4 SCALE' 1,1011 THEFT: I OP ti c o m OT m y C m A Z m T to m O O z D T 0 0 z A c c z O m 01 0 0 rolisua .1 RiEikwirrioUr TJ/( si[..varURt ND THE f 7 Cl4.4. RXISELISEA L uF Ti4F,FI ORily LICCN_sC4lLAVrY(0.., A OMAPPERNA BELOW STUART A. HOUSTON y �v X7S 11 At '8 440 e4 4 f? A %?,(y 8 ht 6, ht g elL It .00'0913.9&& 9ZS Z.ZZoSZN `7 1 Attachment A `P 1; 15 10 of 12 Pages I SSLL No. 310343953 1z Attachment A Page 11 of 12 Pages SSLL No. 310343953 WARRANTY aeea 1FRON CORPORATIONS whose postoffier address Is hereinafter railed the grantee: C ATTE WAYNE L. ALLEN, ASST Signed, Seale and 'delivered in t th� h e presenep of: STATE OF Florida COUNT' OF Dade RANG° FORM A -a IPHOTGRTATI 77Hs Innninrcnt prcparcd by: ALBERT L. ROSEN Corporate Counsel :ltk/rrlu General Development Corporation 1111 South Bayshore Drive 23'7114 A. D. 19 77 by This arranty Deed It lade and executed the 9th day of May GENERAL DEVELOPMENT CORPORATION a corporation extattno under ills laws of Delaware and having Its principal place of 6s1neaa ai 1111 South Bayshore Drive, Miami, Florida 33131 hereinafter called the grantor, to CITY OF SEBASTIAN, a Florida Municipal Corporation O.x /.27 .[ncLu.c• 7 ��4f 8 sha hdn: ksJ rrmeMnl sad' nor aJ aranee d d.ho amcaa�h mism IndlviAMb, usd be .,v..Pm. d m.ym of cxPmetbm) Y1Vitnesselh: That the pmnlor, for and In consideration of the SUM of $10.00 and other valuable considerations. receipt whereof is hereby acknowledged, by These presents does grant, bargain, sell, alien, remise. release, convey and confirm unto the grantee, all that terrain land situate in Co Florida, bounded and described as follows: From the N.E. corner of Block 2, Edgewater Park Subdivision, Plat Book 1 at Page 23, Indian River County, Records, Run N.72 and parallel with the South Right—of —Way line of Cleveland Avenue, 00.14 feet to the East Right —of —Way line of S.R. No. 5 (U.S. Highway No. 1,) said point being the POINT OF BEGINNING: thence S.20 °45'E., 150 feet thence N.70 °45'E., 20 feet more or less to the West bank .of the Indian River; thence meandering Northerly along said West Bank 150 feet more or less to a point at Right Angles to the Point of Beginning; thence 5.70 °45'E., 20 feet more or less to the POINT OF BEGINNING. All of said land being in Government Lots 6 and 7, Section 6; Town— T ogether with a ll the tenements, hereditament, and appurtenances theroto 6eTong ng D P 6 TW wise appertaining. T ao{E Dave and to Hold, 11,0 soma in fee simple forever. fi itd the grantor hereby covenants with said grantee that it is lawfully seized of said land in fee simple; that it has good right and lawful authority to sell and convey said land; that it hereby fully war- rants the liar to said land and mill defend the same against 'ha lawful claims of all parsons whomsoever; and that said land is free of all enntm /rances In fitness 0, hereof t presents to twRPORATE'sEAGI grantor has caused these he executed in its name, and its corporate seal to he hereunto affixed, 5y its Pr of firers therru tto duly authorized, the clay and year first abm,e written. GENERAL DEVELOPMENT CORPORATION C.. C. CRUMP SR) VICE 1 HEREBY CERTIF.' that on .hit day, before me. an nflfcrr duly authorised In the Sum .ad COWRY aforesaid to Mhe .dn wled nest., 'mare „r er,w..r C. C. CRUMP and WAYNE L. ALLEN Vice wall hewn tome m lw tar Sr./ Preddea and Asst. Secretary sapreti.dy el the anparellpa'tshved Yrpinpr in the Northing dye#. and that they snwany mh.nnirdtW 'emoting the rase la the pse me of the submitting winwup,haly. ,5 .aporgy. uadrr miller y d,dr vetted In them ley Mid corporation Mod that the ad efl6rd thereto h the true temperate ud .1 via WITNESS say haw and anklet east in the County and Stale Ira dm.vid this 9th day of May 'C p .-I Y t-- Ang.�9 7 7'. W'safi�Gt�ii�3 ya NOTARY PUBLIC STATE Of FLORIDA AT LAPS! MY COMMIS5IO'1 IINKS iEb. r. BONDED THRU GENERAL INS. UtIUER1vt llip: Attachment A Page 12 of 12 Pages SSLL No. 310343953 ship 31 South, Range 39 East, and Containing 0.069 Acres together with all Riparian Rights thereunto appertaining. This Deed is executed subject to taxes assessed for the year 1977 and all subsequent years, to conditions, limitations and Restrictions of Record, and to the following express restriction to wit: That the subject land shall be used only for recreational purposes. MATE aF ��bR p I a DOG EV DEPT OF OF REVENUENDE ST'4�NP' T 4 DET 1 779 3 C O 0. ti �'105i.j K+ PAGE TWO OF TWO Subject: Fill Two Vacant Positions on the Construction Board Approv d f Submittal by: City Manager i( 1 Agenda No. /0 0 03 Q Department Origin: City Clerk City Attorney: jl For Agenda of: 1/13/10 Al '1'* Exhibits: applications, board member list, ad SEBASTIAN HOME OF PELICAN ISLAND CITY OF SEBASTIAN AGENDA TRANSMITTAL SUMMARY The following vacancies are on the Construction Board: Regular Member Plumber Position Term to Expire 9/30/2012 Alternate Member Contractor Position Term to Expire 9/30/2010 Code Sec. 26 -191 provides that "The City Construction Board shall be composed of seven members and, as far as practical, shall consist of two certified contractors (residential, building, general), one electrical contractor, one heating and ventilation contractor, one architect or engineer, one plumbing contractor, and one concerned citizen." The following individuals have indicated an interest in serving: Mark Redden Jose David Reyes RECOMMENDED ACTION 1) Interview unless waived, and submit nominations for the vacant regular member, plumber position to expire 9/30/2012. 2) Interview unless waived, and submit nominations for the vacant alternate member, contractor position to expire 9/30/2010. NAME: Y)n a, pc_ L (Z EOOE J HOME ADDRESS: 5 37 F''-r h,.) y A k) e. Dr~ et,eis4letn 1-t- 3 2 9 s V HOME PHONE:(7 ?2) v 1 -01H HOME FAX:(? -eI E -MAIL: 1174 /'ec'lat &n 0 Corncei S It a n of BUSINESS: 4r t`C t, geoici BUSINESS ADDRESS: C Pe PA w° I&kie_ OA e. bel si A/0 F. ?s8' BUSINESS PHONE: S 3Lj -030 3 BUSINESS FAX:5 /et E -MAIL: ,M a C redden ARE YOU A RESIDENT OF THE CITY OF SEBASTIAN? yes HOW LONG? 7 yet, ('`s DO YOU CURRENTLY HOLD ANY PUBLIC OFFICE? iLIO DO YOU PRESENTLY SERVE ON ANY OTHER CITY BOARD OR COMMITTEE? WHICH BOARDS /COMMITTEES? Ai 0 PLEASE CHECK THE BOARDS FOR WHICH YOU ARE INTERESTED IN SERVING IN ORDER OF PREFERENCE WITH FIRST CHOICE BEING #1: CHARTER REVIEW COMMITTEE (serves only 6 months every 5 years meets next in 2011) CITIZENS BUDGET REVIEW ADVISORY BOARD (temporary meets during summer) 1T =CONSTRUCTION BOARD (permanent board meets once a month)* HANDICAPPED SELF EVALUATION COMMITTEE (permanent board meets quarterly) ifr f PLANNING AND ZONING COMMISSION (permanent board meets twice a month)* POLICE RETIREMENT BOARD OF TRUSTEES (pennanent statutory board- meets quarterly)* o PARKS RECREATION ADVISORY COMMITTEE (permanent board meets once a month) NATURAL RESOURCES BOARD (permanent board meets once a month) o OTHER TEMPORARY COMMITTEE (if applicable) rri (WRITE IN COMMITTEE NAME) n Filing of financial disclosure is required following appointment CD u HOME OF PELICAN ISLAND APPLICATION TO SERVE ON CITY BOARD /COMMITTEE (Ali City Board and Committee Members Must be Residents of the City of Sebastian) trl s O APPLICABLE EDUCATION AND /OR EXPERIENCE: (a brief resume is required) c lvt 4 S tc -f c L -E i-1\; e_A (-'�c.: A l f c( (,frAc f cti have I ye C ©r 1': vC. (v,� ,C-/i c:tu L')( i e.l‘renC� 0 1- HOW WOULD YOUR EXPERIENCE BENEFIT THE BOARD YOU'RE APPLYING FOR? n Y (n 5r ouc; rv,,.) cicecof‘enGe P 1 rik1 /"J Ctb +14 j i..lifdl heiS AFIpee) my but/le- �it LIST ANY ADDITIONAL QUALIFICATIONS TO SERVE ON BOARD OR COMMITTEE: HAVE YOU EVER BEEN CONVICTED OF ANY FELONY IN THIS OR ANY STATE? iv HAVE YOU EVEN BEEN CONVICTED OF ANY MISDEMEANOR INVOLVING MORAL TURPITUDE IN THIS OR ANY STATE? WOULD YOU CONSIDER SERVING ON A BOARD OTHER THAN THE ONE(S) SELECTED ABOVE? 1 &5 I hereby certify that I am qualified to hold the position for which this application is made. Further, I hereby authorize the City of Sebastian to investigate the truthfulness of all information which I have provided in this application. I understand that any misrepresentation or omission of information requested in this application is cause for disqualification. I have been provided with, read and understand City of Sebastian Code of Ordinances Sections 2 -166 through 2 -173 (attached). Information relative to a specific board or committe ,e,is available if requ� ted. as identification. o ary Public, State of Florida Please retum to Office of the City Clerk, 12 \wp -fo rm\applicat.wpd rev. 7/2007 Applicant Signature Subscribed and swom to before me this day of CJ 1y) by yr I r If L Pdd ell who is personally known to me, or has produced LINDA C. TEAGUE t Notary Public State of Florida y VFREFOres ,267 OF Commission DD 622008 Bonded Through National Notary Assn 589 -5330 ao4, This ec.s5 rc.v NAME: 73-3, av L C HOME ADDRESS: L i 5S OGAC 5 -e e-k HOME PHONE: ']72- 5 (69,$tk 0 HOME FAX: E -MAIL: a,�'c eS Ms, IA efl ecn, (_Oi"1 BUSINESS: k IA er t j BUSINESS ADDRESS: 7 o r D \I 7 :4 j ‘t S 1 4.._e 00 ),,,i e s 9 e _..,(_1,-.. CA 33 (A-k‘ 2-- L BUSINESS PHONE: 5bk b 9- V13ea BUSINESS FAX: j ik O MAIL: A tv i, w,r ARE YOU A RESIDENT OF THE CITY OF SEBASTIAN? HOW LONG DO YOU CURRENTLY HOLD ANY PUBLIC OFFICE? ;0 DO YOU PRESENTLY SERVE ON ANY OTHER CITY BOARD OR COMMITTEE? WHICH BOARDS /COMMITTEES? PLEASE CHECK THE BOARDS FOR WHICH YOU ARE INTERESTED IN SERVING IN ORDER OF PREFERENCE WITH FIRST CHOICE BEING #1: CHARTER REVIEW COMMITTEE (serves only 6 months every 5 years meets next in 2011) CITIZENS BUDGET REVIEW ADVISORY BOARD (temporary meets during summer) "A, CONSTRUCTION BOARD (permanent board meets once a month)* HANDICAPPED SELF EVALUATION COMMITTEE (permanent board meets quarterly) I x PLANNING AND ZONING COMMISSION (permanent board meets twice a month)* POLICE RETIREMENT BOARD OF TRUSTEES (permanent statutory board- meets quarterly)* Z PARKS RECREATION ADVISORY COMMITTEE (permanent board meets once a month) NATURAL RESOURCES BOARD (permanent board meets once a month) OTHER TEMPORARY COMMITTEE (if applicable)' rwns,)or -,r ■o n ju5cr' (WRITE N COMMITTEE NAME) Filing of financial disclosure is required following appointment rnror HOME OF PELICAN ISLAND APPLICATION TO SERVE ON CITY BOARD /COMMITTEE APPLICABLE EDUCATION AND /OR EXPERIENCE: (a brief resume is required) HOW WOULD YOUR EXPERIENCE BENEFIT THE BOARD YOU'RE APPLYING FOR? �o■.J G t,,..1 o r g n.1-j a.r".• ?0 r D Tt o h v r a, CA. i-S 0 9.✓■ ak hR.j� N C GCn ka n 4\ \"�-e S: e :L. C. ac- M 0,.1Li e k,. �`�q^c. p c, CVL�, A.�ti_s 9-0 t'1Gr',i il, c rs LIST ANY ADDITIONAL QUALIFICATIONS TO SERVE ON BOARD OR COMMITTEE: •V�,t e, 7 I'4/� S e O r a zs. 0 S C.-( %-S V tJ t 7 HAVE YOU EVER BEEN CONVICTED OF ANY FELONY IN THIS OR ANY STATE? J c HAVE YOU EVEN BEEN CONVICTED OF ANY MISDEMEANOR INVOLVING MORAL TURPITUDE IN THIS OR ANY STATE? WOULD YOU CONSIDER SERVING ON A BOARD OTHER THAN THE ONE(S) SELECTED ABOVE? I hereby certify that I am qualified to hold the position for which this application is made. Further, 1 hereby authorize the City of Sebastian to investigate the truthfulness of all information which I have provided in this application. I understand that any misrepresentation or omission of information requested in this application is cause for disqualification. have been provided with, read and understand City of Sebastian Code of Ordinances Sections 2 -166 through 2 -173 (attached). Information relative to a specific board or committee is available if requested. swom to before me this C> day of lkL'^ .2009 by 1.-a who is personally known to me, or has produced as identification. /Z SI C i f OF(„ _p ate of Florida Please return to Office of the City Clerk, 1225 Main Street, Sebastian, FL 32958 (772) 589 -5330 \wp- form\applicat.wpd rev. 7/2007 n d Sally A. Maio 17 Commission DD595269 Expires October 5, 2010 sh Bonded Troy fain immense inn 999 +9iS7O19 Years of Experience: 17 Years W ith the Firm: 17 Registrations Certifications: Continuing Education: HIT Irtentide Alic are Trdiic Curd Fdr e, 2 FITT forte d Trdiic a tific im Professional Civic Activities: 14 i� GEE les Gap l >f Ffaid3 335 Cta p ft42+7te, Ffaid3 Lad (A s Gap M3cadlon Cbmuity may, fioid3 Sne+rg Micprg Barad Cit.rty CE to 2D n ixr, Ffaxe Slag Mp irrd Spey Irria2 R e Chxty ante 218 MILLER LEGG David Reyes, CST 111 93 icar gm ey gxci dist 11 Professional Experience: Mr. Reyes is an Associate of the firm with significant surveying aid mapping experience in Rorida induding consulting to Rorida Deportment of Traisportetion (FOOT) in multiple districts He has extensive private aid public sector project experience induding design, construction engineering inspection (CB), construction, gobal positioning systems (GPS), geographic information systems (GIS), right -of -war control, rigid -of -way mapping design surveys, aid many miscianeous spedfic-purpose surveys for FDOT. Mr. Reyes is also proficient with mmy softwae applications specificly used by the FDOT induding Microaation, GBDPAK, CAICE, 8 B, ERBP, CB$, aid Hector the Vector. Having performed fieldwork and eventually moving to m preparation and quality assuraicelquality control, Mr. Reyes has extensive knowledge of FDOT methods aid procedures In addition, Mr. Reyes has extensive knowledge of digtal terran modeling aid has prepaed numerous digtal terran modeling models used in roadway design aid for quantity cculations Relevant Project Experience: Publix at Orange Avenue and .bnkins Due diligence assistaice was provided to determine the viability of a new R iblix shopping center for this location. In addition to reseach of the status of proposed aid future residential developments in the vicinity, Miller Legg provided bounday and topographic surveying services for this 21.6+/- acre site aid the roadways immediately surrounding the site. Glades Cut -Off Road and Selvitz Road Intersection The intersection of Glades Cut -Off Road and %Ivitz Road is an intersection improvement project located in rural a Lucie County, Rorida In addition to widening the roadway to indude turn Imes, the project will add sidewalk and bicyde lanes Services being provided indude roadway design, associated drainage, traffic engineering analysis, traffic signal design to follow FDOT criteria mitigation analysis aid design, intersection improvements, sgnalizetion, pavement making utility adjustment, cost estimating, permitting and coordination with Rorida East Coast Railroad. The vaious agency interests for this project induded the South Rorida Water Management District, North Sint Lucie River Water Control District, Rorida last Coast Railroad, and Si nt Lucie County Engineering Florida Department of Transportation (FDOT) Florida Department of Transportation (FDOT) District 4 SR 5 /US 1 H illsboro Boulevard to SE 5th Street 3R Miller Legg provided landscape achitecture aid surveying services for this 3R project along a three -nlle segrient of SR 5/US 1 from Hillsboro Boulevad in Browad County north to 9=5th Greet in Palm Beach County. A design survey, including cross sections of the Hillsboro Canal aid US 1, a preliminay right -of -war map, as well as landscape achitecture design were provided. The firm waa a subconailtait to RJ Behar and Compaiy, Inc. Florida Department of Transportation (FDOT) District 4 SR 15 /Belle Glade 3R SR 17 to North of SR 80 For this four -mile segment of SR 15 from 9R 717 to north of SR 80 in Belle Glade, Miller Legg is providing both landscape architecture and surveying services induding roadway cross- sections, right -of -way, horizontal aid vertic project network control, topographic surveys and minor digital terran modeling. In addition to laidscge achitecture design, we ae also providing irrigation aid hadscape design, as well as construction services Miller Legg is a aibconsultant to ABDOM Transportation. Florida Department of Transportation (FDOT) District 4 SR 5/US 1 in Hobe Sound SUE Services- Subsurface Utility B)gneering (SUE) services provided include subsurface utility mapping (horizontal location) within the right -of -way of SR 5 (350 foot section). Utility conflicts were determined in the field by correlating desigt information to field findings Miller Legg performed utility test holes at identified conflict seas Utility inform ion induded elevation, size, material, depth aid ownership. Florida Department of Transportation (FDOT) District 4 SR 7 /US 441 /Glades Road Survey A six -mile control survey from Glades Road to Atlantic Avenue in Palm Beach County to re- establish and monument the historic baseline, monument the right -of -war, revise the right -of -war maps to show monuments, new plats aid right -of -way, aid record the plats Florida Department of Transportation (FDOT) District 4 SR 70 .bnkins Road to SR 5/US 1 SUE Services For this improvement project along SR 70 /.knkins Road to 92 5/US 1 in S. Lude County, Miller Legg has performed surveys induding historic baseline of survey and right -of -way linen seconday control points and establish vertical control network, cross- sections and Digta Terran Modeling (DTM) for 10 signalized intersections aid utility designations Florida Department of Transportation (FDOT) District 4 SR 70 Kings H ighway SUE Services For this improvement project along 92 70 /Kings Highway from ,bnkins Road to US 1 in St. Lude County, Miller Legg has performed underground utility designations for new signalization at ten intersections Specific survey services provided induded computing and establishing the historic baseline of survey aid right -of -way lines for the entire limits set seconday control points and established vertical control for all points as well as cross sections at every 500 feet were collected. Florida Department of Transportation (FOOT) District 4 SR 76 /Kanner Highway MP 14.7 to 23.5 For this rural section of roadway we of the Beeline Expressway in India) Ewer County, Miller Legg provided misoellaieous surveying services induding cross sections and recovery of the historic baseline. Florida Department of Transportation (FDOT) District 4 SR 76 /Kanner Highway MP 9.8 to 12.5 For this rural section of roadway we of the Beeline Express/my in India) River County, Miller Legg provided misoella)eous surveying services induding cross sections aid recovery of the historic baseline. Florida Department of Transportation (FDOT) District 4 SRAIA Roadway Improvement Boynton Beach Inlet /Lake W orth Road This project entaled milling aid resurfacing well as dranage improvements to alleviate roadway flooding on this five -mile segnent in Manaapan and South Palm Beach. Unavoidable maig impacts aid compensatory mitigation were associated with this project. Our responsibilities induded: surveying, landscape athitecture, aborist services, wetland delineation, environmental permitting, regulatory agency coordination and off -site mitigation design. Certified Arborist and landsrepe architecture services induded tree remora and protection, well as landscape design plans for the Town of South Palm Beach. A full design survey included topogaphy baseline signment, primary and 9econday globs positioning system (GPS) control, digts terran modeling, and bridge and dranage surveys, as well as post design construction services Environments services included mitigating mangove impacts with the creation of maigoves at Phipps Pak and the use of existing wetland mitigation credits from the FDOTs C -18 project. Miller Legg was a subconsultant to R.1 Beha and Company, Inc. Davie Surveying Services- Various surveys on a continuing basis for the Town of Davie, induding right -of -way, David Reyes, CSI" III topographic, as- built, and bounday surveys Florida Department of Transportation (FDOT) District 5 SR 35/US 301 Miller Legg provided GPSmonumentation for advanced right of -way surveying and mapping for SR 35/US 301. We were a sabconsultant to Lochrane Engineering Riverbend Park Phase One This 850 -acre Pam Beach County Regons Pak is located in the Town of .bpdter. Sbrvices provided include: wetland delineation, tree survey, environments resource permitting mitigation assessment aid design, infrastructure engneering and design, planning and survey. This project included extensive coordination with the USArmy Corps of Engineers, USRsh and Wildlife Service, Nations Maine Rsheries Service, US Environments Protection Agency, South Rorida Water Management District, Rorida Depatment of Environments Protection, and Palm Beach County Environments Resources Management. Traditions Golf Course Survey Miller Legg performed overall bounday and topogaphic surveys for this 175 are property in the Village of Boys Palm Bich, Ronda Lake boundaies were also located, and soundings were used to determine lake depths From the topogaphic surveys, Miller Legg developed a digta terran model which was used for eathwork calculations Environmental services provided for the property included a Riase 1 environments anent, as well as a wetland delineation survey. Services provided indude bounday survey, topogaphic survey, digts terran modeling, wetland delineation, and Phase 1 environments assessment. Lucero Drive Culvert Replacement Survey, engneering aid construction period servioeswere required for the replacement of the culvert song Lucero Drive. Miller Legg provided topographic and control surveying services, subsurface utility engneering, base mapping, preparation of conceptus civil engneering design. Project management responsibilities included coordination of our subconsultants for geotechnical engneering and structural desigi. The project induded coordination with the City of Fbrt a. Lucie, S uth Ronda Water Management District, and Ronda Department of Environmental for expedited construction to be allowed to take place to replace the culvert. And design, traffic control plans, permitting, and construction observation was performed in conjunction with the Verada Ditch Restoration Project construction. David Reyes, CST III Midway Road/Turnpike East to South 25th Street Surveying For Midway Road, also known as a. Lucie County Road 712, Miller Legg was on the survey team with Lochrane Enjneering, Inc., for this three-mile survey including right -of -way mapping, control, design and digtal terrain modeling surveys from the Florida Turnpike east to Sauth 25th areet. MEMBER NAME AND ADDRESS POSITION APPOINTMENT HISTORY CURRENT STATUS TERMS COMPL ETED Dithmar Bulla 1389 Roulette Street Sebastian, FL 32958 589 -4239 Electrical Contractor Position Appointed regular member 7/11/07 Term to expire 9/30/2010 Jean Carbano 433 Betty Avenue Sebastian, FL 32958 Jeanne4199 @aol.com 581 -1397 Regular Concerned Citizen Position Reappointed 9/14/05 Took Stuart Houston's Concemed Citizen Regular Position 5/26/04 Term to expire 9/30/2011 Vacant 5i n ee /2ooq Plumber Position Term to expire 9/30/2012 Chad Widup 1251 Schumann Drive Sebastian, FL 32958 cwidup @hotmail.com 589 -9821 Engineer or Architect Position Reappointed 8/26/09 Reappointed 9/27/06 Appointed 1/25/06 Term to expire 9/30/2012 Shawn Nosey 133 Cardinal Dr Sebastian, FL 32958 flacru @bellsouth.net 589 -2312 Regular Contractor Position Reappointed 8 /26/09 Took Lanning's position 9/27/06 Appointed Altemate 7/12/06 Term to expire 9/30/2012 Frank Dalessandro 130 Stony Point Drive Sebastian, FL 32958 Frankeed @bigfoot.com 508 -7140 HARV Contractor Reappointed 11/14/07 Took Mitchell's HARV Contractor Position 8/10/05 Term to expire 9/30/2010 CONSTRUCTION BOARD 3 -YEAR TERMS MEETS 2ND TUESDAY EACH MONTH 6:00 P.M. Jim Moms P. O. Box 780765 Sebastian, FL 32978 jwm13529 @aol.com 589 -3519 Regular Member Contractor Reappointed 8/26/09 Reappointed 9/27/06 Took Mr. Craw's unused Regular Member Contractor position 11/12/03 Term to expire 9/30/2012 Vacant 3 i n e_ e_ 1112.0014 Altemate Concerned Citizen Position Term to expire 9/30/2010 Vacant S j ilC et/2004, Alternate Contractor Position Term to expire 9/30/2010 BOARD SECRETARY Karen Park CTIYOF HOME OF PELICAN ISLAND PRESS RELEASE The City of Sebastian has the following volunteer board openings: Construction Board Regular Member Plumber Term to Expire 9/30/2012 Alternate Member Citizen Term to Expire 9/30/2010 Alternate Member Contractor Term to Expire 9/30/2010 Natural Resources Board Regular Member Term to Expire 7/2010 Alternate Member Term to Expire 7/2011 Alternate Member Term to Expire 7/2012 ALL MEMBERS MUST BE CITY OF SEBASTIAN RESIDENTS. IF COUNCIL FILLS A REGULAR MEMBER POSITION WITH AN ALTERNATE MEMBER, COUNCIL RESERVES THE RIGHT TO FILL THE ALTERNATE POSITION WITH REMAINING APPLICANTS. MEETING TIMES AND APPLICATIONS ARE AVAILABLE IN THE CITY CLERK'S OFFICE, CITY HALL, 1225 MAIN STREET, SEBASTIAN, BETWEEN THE HOURS OF 8:00 AM AND 4:30 PM OR ON WWW.CITYOFSEBASTIAN.ORG APPLICATIONS WILL BE ACCEPTED UNTIL FILLED. Subject: Fifth Member to the Pension Board of Trustees A pro for Submittal by: City Police Manager Agenda No. U CEO Department Origin: City Attorney: City Clerk: City C -rk For Agenda of: 1/13/10 in er xhibits: Memo, F.S.185.05(1)(a), board member list EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: HOME OF PELICAN ISLAND CITY OF SEBASTIAN AGENDA TRANSMITTAL SUMMARY In accordance with F.S.185.05(1)(a), the legislative body shall appoint the appoint the fifth member. RECOMMENDED ACTION Appoint Ms. Krueger as recommended by the Sebastian Police Officers Pension Board of Trustees. To: From: Date: Re: Honorable Mayor and Council Members Sergeant Denis Hovasse Sebastian Police Officers Pension Board of Trustees, Chairman December 16, 2009 Memorandum Appointment of 5 Member to the Police Pension Board of Trustees On December 15, 2009 at our required quarterly meeting, we have chosen to reappoint Debra Krueger, as the fifth member of the Police Pension Board of Trustees. In accordance with the Florida State Statute, Chapter 185.05 (a), we are respectfully requesting that City Council appoint her as the fifth member. Thank you for your consideration in this matter. 185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorneys fees. -For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (1) In each municipality described in s. 185.03 there is hereby created a board of trustees of the municipal police officers' retirement trust fund, which shall be solely responsible for administering the trust fund. Effective October 1, 1986, and thereafter: (a) The membership of the board of trustees for chapter plans shall consist of five members, two of whom, unless otherwise prohibited by law, shall be legal residents of the municipality, who shall be appointed by the legislative body of the municipality, and two of whom shall be police officers as defined in s. 185.02 who shall be elected by a majority of the active police officers who are members of such plan. With respect to any chapter plan or local law plan that, on January 1, 1997, allowed retired police officers to vote in such elections, retirees may continue to vote in such elections. The fifth member shall be chosen by a majority of the previous four members, and such person's name shall be submitted to the legislative body of the municipality. Upon receipt of the fifth person's name, the legislative body of the municipality shall, as a ministerial duty, appoint such person to the board of trustees as its I:ifih member. The fifth member shall have the same rights as each of the other four members appointed or elected as herein provided, shall serve as trustee for a period of 2 years, and may succeed himself or herself in office. Each resident member shall serve as trustee for a period of 2 years, unless sooner replaced by the legislative body at whose pleasure the member shall serve, and may succeed himself or herself as a trustee. Each police officer member shall serve as trustee for a period of 2 years, unless he or she sooner leaves the employment of the municipality as a police officer, whereupon the legislative body of the municipality shall choose a successor in the same manner as an original appointment. Each police officer may succeed himself or herself in office. (b) The membership of boards of trustees for local law plans shall be as follows: 1. If a municipality has a pension plan for police officers only, the provisions of paragraph (a) shall apply. 2. If a municipality has a pension plan for police officers and firefighters, the provisions of paragraph (a) shall apply, except that one member of the board shall be a police officer as defined in s. 185.02 and one member shall be a firefighter as defined in s. 175.032, respectively, elected by a majority of the active firefighters and police officers who are members of the plan. 3. Any board of trustees operating a local law plan on July 1, 1999, which is combined with a plan for general employees shall hold an election of the police officers, or police officers and firefighters if included, to determine whether a plan is to be established for police officers only, or for police officers and firefighters where included. Based on the election results, a new board shall be established as provided in subparagraph 1. or subparagraph 2., as appropriate. The municipality shall enact an ordinance to implement the new board by October 1, 1999. The newly established board shall take whatever action is necessary to determine the amount of assets which is attributable to police officers, or police officers and firefighters where included. Such assets shall include all employer, employee, and state contributions made by or on behalf of police officers, or police officers and firefighters where included, and any investment income derived from such contributions. All such moneys shall be transferred into the newly established retirement plan, as directed by the board. With respect to any board of trustees operating a local law plan on June 30, 1986, nothing in this paragraph shall permit the reduction of the membership percentage of police officers or police officers and firefighters. (c) Whenever the active police officer membership of a closed chapter plan or closed local taw plan as provided in s. 185.38 falls below 10, an active police officer member seat may be held by either a retired police officer or an active police officer member of the plan who is elected by the active and retired members of the plan. If there are no active or retired police officers remaining in the plan or capable of serving, the remaining board members may elect an individual to serve in the active police officer member seat. Upon receipt of such person's name, the legislative body of the municipality shall, as a ministerial duty, appoint such person to the board of trustees. This paragraph applies only to those plans that are closed to new members under s. 185.38(2), and does not apply to any other municipality having a chapter or local law plan. (d) If the chapter plan or local law plan with an active membership of 10 or more is closed to new members, the member seats may be held by either a retiree, as defined in s. 185.02, or an active police officer of the plan who has been elected by the active police officers. A closed plan means a plan that is closed to new members but continues to operate, pursuant to s. 185.38(2), for participants who elect to remain in the existing plan. This paragraph applies only to those plans that are closed to new members pursuant to s. 185.38(2) and does not apply to any other municipality that has a chapter plan or a local law plan. (2) The trustees shall by majority vote elect from its members a chair and a secretary. The secretary of the board shall keep a complete minute book of the actions, proceedings, or hearings of the board. The trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by Florida law. (3) The board of trustees shall meet at least quarterly each year. (4) Each board of trustees shall be a legal entity that shall have, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. (5) In any judicial proceeding or administrative proceeding under chapter 120 brought under or pursuant to the provisions of this chapter, the prevailing party shall be entitled to recover the costs thereof, together with reasonable attorney's fees. (6) The board of trustees may, upon written request by the retiree of the plan, or by a dependent, when authorized by the retiree or the retiree's beneficiary, authorize the plan administrator to withhold from the monthly retirement payment those funds that are necessary to pay for the benefits being received through the governmental entity from which the employee retired, to pay the certified bargaining agent of the governmental entity, and to make any payments for child support or alimony. (7) The provisions of this section may not be altered by a participating municipality operating a chapter or local law plan under this chapter. Richard Taracka Sebastian, FL 32958 Term to expire 10/2011 Appointed 10/24/2001 Harry Tanner Sebastian, FL 32958 Term to expire 10/2011 Appointed 9/23/2009 POLICE RETIREMENT BOARD OF TRUSTEES 2 -YEAR TERMS Two Members Appointed 12y City Council Two Members Appointed by Police Officers Officer Dan Acosta Detective Dennis Hovasse Term to Expire 10/11 Term to Expire 10/11 One Member Appointed ty Board and Confirmed L City Council Deb Krueger Term Expires 10/09 7y Subject: Second Reading and Hearing of Ordinance 0 -09 -14 Road Buffer Ap rov' for Submittal by: City Public Roseland Manager Agenda No. 0(4,150 Department Origin: City Manager: City Attorney: City Clerk: Growth Manageme O1 Date Submitted: January 6, 2010 For Agenda of: January 13, 2010 i //4 r i er Exhibits: Ordinance No. 0 -09 -14 (markup copy), Ordinance No. 0 -09 -14 (clean copy), LPA minutes of 11- 19 -09, City Council minutes of 12 -9 -09 EXPENDITURE REQUIRED: None AMOUNT BUDGETED: None APPROPRIATION REQUIRED: None C IYOF HOME OF PELICAN ISLAND SUMMARY Staff has been asked to prepare a draft ordinance to establish a buffer on city owned lands adjacent to Roseland Road. Amendments to the Land Development Code must first be reviewed by the Local Planning Agency (Planning and Zoning Commission) who shall hold a public hearing and make a recommendation to City Council. Next, City Council shall hold a public hearing on the proposed code amendment. Following the hearing, City Council shall act on the proposed change. In its deliberations, they shall consider the following criteria, per Section 54- 1- 2.7(b)3: a. Consistency with plan. Whether the proposal is consistent with the comprehensive plan. Identify any inconsistencies. b. Conformance with ordinances. Whether the proposal is in conformance with any applicable substantive requirements of the City of Sebastian Code of Ordinances. c. Changed conditions. Whether, and the extent to which, land use and development conditions have changed since the effective date of the existing regulations involved which are relevant to the amendment. d. Land use compatibility. Whether, and the extent to which, the proposal would result in any incompatible land uses, considering the type and location of uses involved. e. Adequate public facilities. Whether, and the extent to which, the proposal would result in demands on public facilities and services, exceeding the capacity of such facilities and services, existing or programmed, including transportation C 7 0 utilities, drainage, recreation, education, emergency services, and similar necessary facilities and services. f. Natural environment. Whether, and the extent to which, the proposal would result in significantly adverse impacts on the natural environment. g. Economic effects. Whether, and the extent to which, the proposal would adversely affect the property values in the area, or the general welfare. h. Orderly development. Whether the proposal would result in an orderly and local development pattern. Any negative effects on such pattern shall be identified. i. Public interest; enabling act. Whether the proposal would be in conflict with the public interest, and whether it is in harmony with the purpose and interest of this ordinance and its enabling legislation. j. Other matters. Other matters which City Council may deem appropriate. At their meeting of November 19, 2009, the Local Planning Agency reviewed the proposed amendment to the Land Development Code as set forth in Ordinance 0 -09- 14. They recommended approval but also recommended eliminating Sections (4) and (5) allowing for walls, fences and signs as permitted structures within the buffer. Their recommended changes appear in the ordinance in a strike through format. At their meeting of December 9, 2009, City Council approved Ordinance 0 -09 -14 on first reading with one change. An item (4) is to be added stating the City has the right to replace and improve existing airport business directory signage. Second reading and public hearing was set for January 13, 2010. Attached is the draft copy of Ordinance 0 -09 -14 showing all amendments to date. Deletions are in strike through format and new additions are underlined. A clean copy showing the proposed final ordinance is also attached. RECOMMENDED ACTION Hold public hearing. Approve Ordinance 0- 09 -14, as amended. 2 ORDINANCE NO. 0-09-14 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council finds it is in the public interest to provide a fifty (50) foot buffer for properties along Roseland Road that are owned by the City and/or the Sebastian Municipal Airport. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, as follows: Section 1. That the Code of Ordinances, City of Sebastian, Florida, is hereby amended to create a new section numbered 54 -3 -11.11 read as follows: Sec. 54 -3- 11.11. Roseland Road Buffer. (1) For city owned lands adjacent to Roseland Road, including the Sebastian Municipal Airport (SMA) and SMA leaseholds, a fifty (50) foot vegetative buffer is hereby established and created. (2) The buffer shall exist from the Roseland Road eastern right -of -way and extend fifty (50) feet eastward along the entire length of the property line of City or Sebastian Municipal Airport owned lands. (3) Existing vegetation within the Roseland Road Buffer shall remain unaltered, except to permit removal as regulated in Article XIV of the City's Land Development Code (Sec. 54- 3 -14). Vegetation removal may also be required for generally recognized traffic safety standards specified in the Manual of Uniform Traffic Control Devices, the Florida Department of Transportation Manuals and Indian River County Traffic Engineering standards. (1)Within thc buffer development shall not be permitted, except for landscaping, berms, fences, wall and signagc that comply with the City's Land Development Code. (5)Signage must comply with Article XVI of thc City's Land Development Code style utilized by Indian River County for Wimbrow Park, seven (7) foot four (1) inch, utilizing a crimped galvanized roof, stucco and lapboard finish, and six (6) in. high metallic letters; and DRAFT (b)Monument style signage utilized by the City to advertise the airport faeility and list airport tenants. (4) The City reserves the right to replace and improve existing airport business directory signage. Mayor Richard H. Gillmor Vice Mayor Jim Hill Councilmember Andrea B. Coy Councilmember Eugene Wolff Councilmember Don Wright CITY OF SEBASTIAN, FLORIDA 2DRAFT Section 2. CONFLICT. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 3. SEVERABILITY. In the event a court of competent jurisdiction shall hold or determine that any part of this Ordinance is invalid or unconstitutional, the remainder of the Ordinance shall not be affected and it shall be presumed that the City Council of the City of Sebastian did not intend to enact such invalid or unconstitutional provision. It shall further be assumed that the City Council would have enacted the remainder of this Ordinance without said invalid or unconstitutional provision, thereby causing said remainder to remain in full force and effect. Section 4. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its adoption by the City Council. The foregoing Ordinance was moved for adoption by Councilmember The motion was seconded by Councilmember and, upon being put to a vote, the vote was as follows: The Mayor thereupon declared this Ordinance duly passed and adopted this day of January, 2010. ATTEST: Sally A. Maio, MMC City Clerk By: Mayor Richard H. Gillmor Approved as to form and legality for Reliance by the City of Sebastian only: Robert A. Ginsburg, City Attorney El DRAFT op) ORDINANCE NO. 0 -09 -14 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council finds it is in the public interest to provide a fifty (50) foot buffer for properties along Roseland Road that are owned by the City and/or the Sebastian Municipal Airport. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, as follows: Section 1. That the Code of Ordinances, City of Sebastian, Florida, is hereby amended to create a new section numbered 54 -3 -11.11 read as follows: Sec. 54 -3- 11.11. Roseland Road Buffer. (1) For city owned lands adjacent to Roseland Road, including the Sebastian Municipal Airport (SMA) and SMA leaseholds, a fifty (50) foot vegetative buffer is hereby established and created. (2) The buffer shall exist from the Roseland Road eastern right -of -way and extend fifty (50) feet eastward along the entire length of the property line of City or Sebastian Municipal Airport owned lands. (3) Existing vegetation within the Roseland Road Buffer shall remain unaltered, except to permit removal as regulated in Article XIV of the City's Land Development Code (Sec. 54- 3 -14). Vegetation removal may also be required for generally recognized traffic safety standards specified in the Manual of Uniform Traffic Control Devices, the Florida Department of Transportation Manuals and Indian River County Traffic Engineering standards. (4) The City reserves the right to replace and improve existing airport business directory signage. Section 2. CONFLICT. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 3. SEVERABILITY. In the event a court of competent jurisdiction shall hold or determine that any part of this Ordinance is invalid or unconstitutional, the remainder of the Ordinance shall not be affected and it shall be presumed that the City Council of the City of Sebastian did not intend to enact such invalid or unconstitutional provision. It shall further be assumed that the City Council would have enacted the remainder of this Ordinance without said invalid or unconstitutional provision, thereby causing said remainder to remain in full force and effect. Section 4. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its adoption by the City Council. The foregoing Ordinance was moved for adoption by Councilmember The motion was seconded by Councilmember and, upon being put to a vote, the vote was as follows: Mayor Richard H. Gillmor Vice Mayor Jim Hill Councilmember Andrea B. Coy Councilmember Eugene Wolff Councilmember Don Wright The Mayor thereupon declared this Ordinance duly passed and adopted this day of January, 2010. ATTEST: CITY OF SEBASTIAN, FLORIDA By: Mayor Richard H. Gillmor Approved as to form and legality for Sally A. Maio, MMC Reliance by the City of Sebastian only: City Clerk Robert A. Ginsburg, City Attorney CITY OF SEBASTIAN LOCAL PLANNING AGENCY (PLANNING AND ZONING COMMISSION) MINUTES OF REGULAR MEETING NOVEMBER 19, 2009 Chmn. Paul called the meeting to order at 7:00 P.M. The pledge of allegiance was said by all. ROLL CALL: NEW BUSINESS: PRESENT: Mr. Dodd Mr. Paul Mr. Hepler EXCUSED: Mr. Buchanan Mr. Neuberger ALSO PRESENT: l Mr. Srinivasan Mr. Simmons Mr. Cardinale Rebecca Grohall, Growth Management Director Jan King, Growth Management Manager Robert Ginsburg, City Attomey AI Minner, City Manager Joe Griffin, Airport Director Dorri Bosworth, Zoning Technician ANNOUNCEMENTS: Chmn. Paul announced Mr. Buchanan and Mr. Neuberger are excused and Mr. Hepler and will be voting. He noted with regrets Mr. Blais has resigned from the commission, and that we are very grateful for the time he has served on the commission and appreciate all he has contributed. The City Clerk's office will be taking applications for our vacant position. OLD BUSINESS: NONE ers C.0 0 a. 0 as E E C o of m O CON 2* .2 PUBLIC HEARING REVIEW AND MAKE RECOMMENDATION TO CITY COUNCIL REGARDING ORDINANCE 0 -09 -14 WHICH PROPOSES TO AMEND THE LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER Chmn. Paul opened the hearing and asked for staff presentation. Ms. Grohall gave a brief review of the ordinance. When the airport master plan was proposed in 2001 -02, there was a proposition to put the buffer in at that time. This would create a fifty -foot vegetative buffer that would run along airport and city owned land abutting Roseland Road and run the entire length of the city owned and airport land. Mr. Simmons asked for clarification of item 4 in the ordinance and Ms. Grohall said landscaping, berms, fences, walls and signage would be the exception. ELI LOCAL PLANNING AGENCY MINUTES OF REGULAR MEETING OF NOVEMBER 19, 2009 Chmn. Paul opened the hearing for public comment. Bob Denton, Roseland Road, gave his review and interpretation of the 27 -page packet given to the commission. Chmn. Paul asked Mr. Denton to direct his comments to specific issues or problems he has with the ordinance as it is presented. Mr. Denton explained that his issue was with the fact that the Airport Master Plan document omitted the 50 -foot buffer as required by the city council's approval. Mr. Minner explained that there was a suggestion in the Sebastian Municipal Airport Plan that there was to be a buffer. Somehow the document was changed and we don't know why. That buffer was never formally logged in any of the city's regulatory documents. Therefore, we have to get that buffer into our regulatory documents. Mr. Denton continued with his opposition to any type of fence being placed within the buffer area. Holly Dill, 11675 Roseland Road, asked for a clarification of Roseland Road Buffer, Section 2, exactly where is the buffer? Mr. Minner explained the intent of the buffer is exactly what is described in Sections 1 and 2 of the ordinance, which is the entire length of the Sebastian Municipal Airport property from Collier Creek to Airport Drive West. However, exotic plants have been identified within this buffer area and they may have to be removed as they are not native. Mr. Minner also discussed the Habitat Conservation Plan and an Incidental Take Permit that protected the Florida scrub jay in accordance with the Fish and Wildlife Agency. He added the city has been in communication with the F.A.A., Fish and Wildlife and the county so that everyone is on the same page. Ms. Dill continued her concerns that walls, fences, and signs could go in the buffer area. She also mentioned that Roseland Road has been designated a scenic highway. Upon questioning by Mr. Cardinale, Ms. Grohall explained that this is a federal DOT designation and not regulatory in nature with possibly a prohibition on billboards but does not regulate signage. Tim Glover, 9446 Fleming Grant Road, Micco, represented Friends of St. Sebastian River and is their president. He mentioned that they worked with the city on the buffer and is in agreement with Mr. Minner regarding the length and placement of the buffer area. Fred Mensing, 7580 129 St., Sebastian, favors the ordinance. Roy Woodall, 7895 134 St., Roseland, president of Friends of Historic Roseland, and the group supports the 50 -foot buffer. Robert Massanti, 7925 126`" St., Roseland, explained what buffer means to him, nothing happens within the designated area. Richard Baker, president of Pelican Island Audubon Society, in favor of the buffer. Ms. Holly Dill spoke again regarding signs and removal of exotic vegetation. 2 LOCAL PLANNING AGENCY MINUTES OF REGULAR MEETING OF NOVEMBER 19, 2009 During review by commissioners, Mr. Dodd noted that he thought Sections 4 and 5 should be removed as they would be a detriment to incoming business. Mr. Srinivasan agreed with Mr. Dodd. Mr. Cardinale asked if a grant could be found to help fill in the sparse area and Ms. Grohall said it could be looked into and Chmn. Paul said it would not be included within this ordinance but a separate issue. Mr. Minner recapped that there was no ordinance for a buffer but just mentioned in the Sebastian Municipal Airport plan. He said what he heard tonight is to place the buffer plan in the Land Development regulations. We understand the potential withdrawal of Sections 4 and 5. As we move forward on this there are three separate items that needed to be accomplished to solve the buffer question. First, the creation of the buffer in the Land Development Regulations, second, an amendment to the Sebastian Municipal Airport Plan so that the plan reads the way it was intended to read the way the 2002 City Council approved it, third, to modify the airport layout plan. Future discussions would be the monument style sign for the city. Chmn. Paul opened the floor one more time for public comment. A man who did not identify himself gave a definition of a buffer. Chmn. Paul turned the gavel over the Vice- Chairman Cardinale and left the dais to speak with the city attorney, Mr. Ginsburg. Vice -Chmn. Cardinale called a five- minute recess. The meeting resumed at 8:31 p.m., all members were present and Chmn. Paul took the gavel. Chmn. Paul asked Mr. Griffin, the Airport Manager for his comments, he had none. MOTION by Dodd /Srinivasan to recommend City Council approve the ordinance 0 -09- 14 with the deletion of Sections 4 and 5. ROLL CALL: Mr. Paul yes Mr. Simmons yes Mr. Dodd yes Mr. Cardinale yes Mr. Srinivasan yes Mr. Hepier yes The vote was 6 -0. Motion passed. Mr. Minner said this item will be on the City Council December 9, 2009 agenda. Chmn. Paul closed the hearing. CHAIRMAN MATTERS: Chmn. Paul again noted the problem at the intersection of U.S. Hwy. 1 and Main Street and said he saw an accident almost happen. Ms. Grohall said they have leveled out the pothole and if he was not satisfied she would bring it to DOT again. MEMBERS MATTERS: Mr. Cardinale asked about a forestry grant. Ms. Grohall said the city is always looking for grant opportunities and will continue to do so. Mr. Simmons asked about parking 3 Regular City Council Meeting December 9, 2009 Page Thirteen matter off a week until it is determined who is listed on the Property Appraiser's record, noting if we complied with the notice provision Mr. Linscott has more of an equitable argument than a legal one; but if we didn't, he very well might have a legal argument. Mr. Lulich offered to give a memorandum of law on recently decided cases. The City Attorney said either we complied or didn't with notice requirements and once we find out, we can make a decision. The City Manager noted we did send notice by certified mail. Mr. Wright noted the Property Appraiser's record listing the property owner on circle page 162. The City Attorney requested time to review the material. The City Manager offered to table this until the January 9th meeting to take care of the Building Department issues which would give staff relief that the structure will get remedied. (1 regular meeting is January 13, 2010) MOTION by Mr. Hill and SECOND by Mayor Gillmor to table the matter until the January 13 meeting passed with a voice vote of 5 -0. 0RAFT 09.150 C. First Reading Ordinance No. 0 -09 -14 Roseland Road Buffer Set Public 163 172 Hearing for January 13, 2010 (Growth Management Transmittal, 0- 09 -14, draft minutes) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE TO CREATE SECTION 54 -3 -11.11 ROSELAND ROAD BUFFER; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Ordinance No. 0- 09 -14. Mayor Gillmor said he was in favor of moving this forward with one change. MOTION by Mayor Gillmor and SECOND by Mr. Hill to pass Ordinance 0 -09 -14 with the addition of an item #4, the City reserves the right to replace and improve existing Airport business directory business signage. Mayor Gillmor added this is because Council has expressed that they want to change out the existing signs on Roseland Road and Main Street. Public Bob Denton, Roseland Road, said he thought that was a good suggestion and until June he thought the buffer was in place since 2002. He said he was concerned that FAA communications do not represent what is in the ordinance and he read from some e -mails asking what is the meaning of "duration" in the correspondence. The City Manager said "all of it." (The audience was not privy to this correspondence.) Mr. Denton's time was up, MOTION by Mr. Wolff and SECOND by Ms. Coy to allow Mr. Denton to continue for three minutes passed without objection. 13 Regular City Council Meeting December 9, 2009 Page Fourteen Mr. Denton stated there is only a limited amount of buffer on Roseland Road indicated but there are unprotected areas north and south of the buffer that the FAA might want to protect and he asked the City Manager for an explanation of the area. Holly Dill, also representing James Linus, asked the Mayor to repeat his addition to the ordinance. She said she supported the ordinance with the Mayor's addition and hoped the buffer went all the way along the Airport property. Tim Glover, President, Friends of St. Sebastian River, said he was involved with City staff establishing the buffer and he thanked Council for their support. Steve Philipson, 25 Airport Drive West, said he was concerned with the portion where the buffer does not exist with his sign and he requested that his sign be allowed to stay and grandfathered in as an accepted buffer arrangement. David DeVirgilio, 113 Pelican Island, asked if the buffer is reinstalled, what is the cost to revegetate the whole berm. Mayor Gillmor said he thought the Australian pines were going to stay. The City Manager said the ordinance states to maintain buffer as is with language to remove exotics or dead material and there is requirement to refurbish the buffer. Mr. Wolff asked the City Attorney if it would it be fair to say buffer is really a strip of 50 foot vegetative matter. The City Attorney said the word buffer has a certain history, we are drafting the ordinance consisting of everybody's understanding of the past seven years, and we are using the term everybody understands in describing the strip. Ms. Coy said the intent also implies it is a transition area from industrial area to residential area and the vegetation is to help the transition. She said depending on who is interested in moving there would leave some room for negotiation as to what kind of buffer there should be installed by the City and the new tenant. Mr. Wolff asked the Growth Management Director if this is addressed in the Land Development Code. She said the code does require type A opaque buffer and that was the intent of #4 which was stricken by public input at the Planning and Zoning hearing. Mr. Wright said there is a plan to develop the other side of the property for industrial use, and he was concerned the wording would prevent high quality landscaping. The Growth Management Director said that was intent of staff in stricken #4, but they where here at Council's discretion. Mr. Wright said he was concerned because it is 40 acres open for future development, and he was curious if people want scrub or high quality landscaping which would enhance their property or enhance future tenants. Mr. Wright also noted there are existing signs and a swale that need to be maintained; he asked if there any language that would prevent us from improving the property. 14 Regular City Council Meeting December 9, 2009 Page Fifteen Mr. Hill said there were probably many that believe the native scrub is beautiful and the idea is to protect the native look, he thought the ordinance reads very well. Mr. Wolff said that leads to the Mayor's suggestion of adding #4 where signage can be improved, would the improvement be a lighted sign. He pointed out the Roseland neighbors want to preserve the historic, natural setting. Mayor Gillmor added that as beautiful as some of the landscapes are, they are privately maintained which is not cheap. Ms. Coy said in her dealing with the residents for the last five years, she knows they would prefer the native look, and she supported the Mayor's addition. Mayor Gillmor called for the question. Mr. Wolff asked if Mr. Denton's question was answered. The City Manager said the question was called but he would proceed at however Council would like him. The Mayor said two different issues were being discussed and tonight was to consider the ordinance. Result of the roll call vote: AYES: All NAYS: None Passed 5 -0 13. CITY ATTORNEY MATTERS None. 14. CITY MANAGER MATTERS None. 15. CITY CLERK MATTERS None. 16. CITY COUNCIL MATTERS A. Vice Mayor Hill none. B. Council Member Coy Ms. Coy wished the Jewish community a Happy Hanukkah. C. Council Member Wolff none. D. Council Member Wright Mr. Wright said following up after the budget amendment, he would like to see the Citizens Budget Review Advisory Committee given year end statements; ask them to begin to review the next budget; and follow the activities during the year so they can be helpful to Council in making decisions. 15 air of SLO TIA HOME Of PELICAN ISLAND Subject: 0 -10 -01 Tax Abatement App or Submittal by: A il, Agenda No: 0q.041., v 0.005 Department Origin: City Attorney's Office City Attorney: City Clerk: For Agenda of: 1/13/10 Ci t-- .ger Exhibits: 0 -10 -01 Expenditure Required: Amount Budgeted: Appropriation Required: The City Council approved December 16,2009. This reading and public hearing. Hold public hearing. At SUMMARY STATEMENT reading on on second 0- 10 -01. Ordinance No. 0 -10 -01 at first Ordinance is now before the Council RECOMMENDED ACTION Council's discretion, move to enact ORDINANCE NO. 0 -10 -01 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, IMPLEMENTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM FOR THE CITY OF SEBASTIAN; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE AND SUNSET DATE. WHEREAS, at the November 3, 2009 General Election, City of Sebastian electors passed a referendum authorizing the city council to provide for property tax exemptions for new businesses and expansion of existing businesses which create jobs in accordance with s. 3, article VII of the State Constitution and Florida Statutes Chapter 196; and WHEREAS, the City Council desires to implement the Economic Development Ad Valorem Tax Abatement Program. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, as follows: SECTION 1. That the City Code of the City of Sebastian, Florida, Chapter 94, is hereby amended by adding a new Article IV to read as follows: "Chapter 94. ARTICLE IV. ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION. Sec. 94-52. Definitions. (a) Applicant. Any person, firm, partnership, or corporation that files an application with the city seeking an economic development ad valorem tax exemption. (b) Business. Any activity engaged in by any person, firm, partnership, corporation, or other business organization or entity, with the object of private or public gain, benefit, or advantage, either director of indirect. (c) Department. The Florida Department of Revenue. (d) Expansion of an existing business: (1) As defined in Section 196.012(16), Florida Statutes, (as the same may be amended or renumbered from time to time) an expansion of an existing business means: a. A business establishing ten or more jobs to employ ten or more full -time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale, items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or b. A business establishing 25 or more jobs to employ 25 or more full time employees in this state, the sales factor of which, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operations on a site co- located with a commercial or industrial operation owned by the same business resulting in a net increase in employment of not less than 10% or an increase in productive output of not less than 10 (e) Improvements. Physical changes made to raw land, and structures placed on or under the land surface. (1) New business. (g) (1) As defined in Section 196.012(15), Florida Statutes, (as the same may be amended or renumbered from time to time) a new business means: a. A business establishing ten or more jobs to employ ten or more full -time employees in this state which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; b. A business establishing twenty -five or more jobs to employ twenty -five or more full -time employees in this state, the sales factor of which, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or c. An office space in this state owned and used by a corporation newly domiciled in this state, provided such office space houses fifty or more full -time employees of such corporation; provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. d. A business that is situated on property annexed into a municipality and that, at the time of the annexation, is receiving an economic development ad valorem tax exemption from the county under FS. 196.1995. Sales factor. As defined in Section 220.15(5), Florida Statutes, (as the same may be amended or renumbered from time to time) the sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. Sec. 94 -53. Economic development ad valorem tax exemption established. (a) There is herein established an economic development ad valorem tax exemption (herein after the "exemption The exemption is a local option tax incentive for new or expanding businesses which may be granted or refused at the discretion of the city. (b) The exemptions shall not accrue to improvements to real property made by or for the use of new or expanding businesses when such improvements have been included on the tax rolls prior to the effective date of the ordinance specifically granting a business an exemption as provided in this article. 2 (c) Any exemption granted may apply up to 100% of the assessed value of all improvements to real property made by or for the use of a new business and of all tangible personal property of such new business, or up to 100% of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the improvements to real property are made or the tangible personal property is added or increased on or after the effective date of the ordinance specifically granting a business an exemption as provided in this article. Property acquired to replace existing property shall not be considered to facilitate a business expansion. (d) The exemption shall be granted by ordinance for every eligible project, as determined by the city council at its discretion. The exemption may be granted for a period up to ten years from the date of adoption of the ordinance granting the exemption. (e) No exemption shall be granted for the land upon which new or expanded businesses are to be located. (f) The exemption shall apply only to taxes levied by the city. The exemption shall not apply to taxes levied by the county, school district or water management district, or to taxes levied for the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9 and Section 12, Article VII of the Florida Constitution. (g) The ability to receive an exemption for the period granted shall be conditioned upon the applicant's ability to maintain the new business or the expansion of an existing business as defined by the conditions of this application throughout the entire exemption period. The applicant shall be required to submit a report on an annual basis to the city evidencing satisfaction of this condition. In addition, any business granted an exemption shall furnish to the city, such information /report as the city may reasonably deem necessary for the purpose of determining continuing performance by the business of the conditions stated in this division, the ordinance granting the exemption and the representations made in the application process. Sec. 94 54. Application for exemption. (a) shall file with (b) applicant the Any eligible person, firm, partnership or corporation, which desires an exemption, the city manager written application prescribed by the department. The application shall request that the city council adopt an ordinance granting the exemption and shall include, at a minimum, the following: (1) The name and location of the new business or the expansion of an existing business; (2) A legal description of the real property, a description of the improvements to the real property for which an exemption is required, and the date of intended or actual commencement of construction of such improvements; (3) A description of the tangible personal property for which an exemption is requested and the dates when such property was or is to be purchased; (4) Proof, to the satisfaction of the city council, that the applicant meets the criteria for a new business or for an expansion of an existing business as defined in this article; (5) Other information deemed necessary by the city council or the city manage. (c) If the city manager determines that the applicant is eligible and has an interest in allowing the application to proceed, the city manager shall refer the application to the property appraiser for a report which shall include the following: (1) The total revenue available to the city for the current fiscal year from ad valorem tax sources, or an estimate of such revenue if the actual total available revenue cannot be determined; (2) The amount of revenue lost to the city for the current fiscal year by virtue of exemptions previously granted, or an estimate of such revenue if the actual revenue lost cannot be determined; (3) An estimate of the amount of revenue which would be lost to the city for the current fiscal year if the exemption applied for was granted had the property for which the exemption is requested otherwise been subject to taxation; and (4) A determination as to whether the property for which an exemption is requested is to be incorporated into a new business or the expansion of an existing business, or into neither, which determination the property appraiser shall also affix to the face of the application. Upon request, the department will provide the property appraiser such information as it may have available to assist in making this determination. (d) If a new business is locating to, or an expansion of an existing business is occurring in a community redevelopment area, the community redevelopment agency advisory committee overseeing such area shall be provided a copy of the application for review and comment. Sec. 94 -55. City council consideration of application. (a) An ordinance granting an exemption shall include: (1) The name and address of the new business or expansion of an existing business. (2) The total amount of revenue available to the city from ad valorem tax sources for the current fiscal year, the total amount of the revenue lost to the city for the current fiscal year by virtue of exemptions currently in effect, and the estimated amount of revenue attributable to the exemption to the new or expanding business; (3) The expiration date of the exemption, which shall be ten years or Tess (depending upon the duration of the exemption granted) from the date the city council enacts the ordinance granting the exemption; and (4) A finding that the business meets the definition of a new business or an expansion of an existing business as set forth in this article. (b) No precedent shall be implied or inferred by the granting of any exemption. Applications for exemptions shall be considered by the city council on a case -by -case basis. Sec. 94 -56. Revocation of exemption /recovery of funds. Should any new business or expansion of an existing business fail to file the annual report or any other report required in this article, or fail to continue to meet the definition of a 4 new business or an expansion of an existing business, and /or fail to fulfill any other representation made to the city council during the application process, the city council may adopt an ordinance revoking the ad valorem tax exemption. An ordinance revoking the ad valorem tax exemption may provide that the city recover any taxes waived during the exemption period. Nothing herein shall prohibit a business from reapplying for an ad valorem tax exemption pursuant to state law. Sec. 94 -57. Sunset Repealer. This ordinance shall stand repealed effective November 3, 2019, unless renewed by a referendum at a general or special election held upon, prior to, or in the same month as that date, as is authorized under the provisions of §196.1995(1), (2) and (6), Florida Statues or any successor or amended version of that statute. SECTION 2. SEVERABILITY. In the event a court of competent jurisdiction shall determine that any part of this Ordinance is invalid or unconstitutional, the remainder of the Ordinance shall not be affected and it shall be presumed that the City Council of the City of Sebastian did not intend to enact such invalid provisions. It shall further be assumed that the City Council would have enacted the remainder of this Ordinance without said invalid or unconstitutional provision, thereby causing said remainder to remain in full force and effect. SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its adoption. The foregoing Ordinance was moved for adoption by Council Member The motion was seconded by Council Member and upon being put to a vote, the vote was as follows: Mayor Richard Gillmor Vice Mayor Jim Hill Council Member Andrea Coy Council Member Eugene Wolff Council Member Don Wright The Mayor thereupon declared this Ordinance duly passed and adopted this day of ATTEST: CITY OF SEBASTIAN, FLORIDA By: Sally A. Maio, MMC Richard Gillmor, Mayor City Clerk Approved as to form and legality for reliance by the City of Sebastian: Robert A. Ginsburg, City Attorney 9G, Subject: 573 Michael Street Lien Code Enforcement Case 2005 Ap a ro�vv or Submittal by: -35822 Agenda No. Oq .(5 Department Origip� City Attorney: i Manager City Clerk: Date Submitted: 7 JAN 10 I W er, City Manager Exhibits: EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED: N/A HOME OF PELICAN ISLAND AGENDA TRANSMITTAL SUMMARY At the December 9, 2009 City Council Meeting, Michael Linscott, represented by Attorney Steven Lulich, requested that City Council release liens in the amount of $56,520.56 for property abatement violations. This issue was tabled in order for staff to determine whether there was proper notice. The City Attorney has now determined that there was proper notice. However, in further discussion of the matter with Mr. Lulich, the City Attorney believes that some legal and equitable questions may remain in favor of Mr. Linscott. Mr. Lulich has proposed a settlement of the case where the liens are released and Mr. Linscott obtains appropriate building permits to rehabilitate the dilapidated garage structure. It should be noted that the City does not have a significant amount of time and capital invested into this case other than inspection, filing fees and postage. Please note that another option for the City Council is to refer this request and others to the Special Magistrate. Action at City Council discretion. RECOMMENDATION �q 7 l 98 PLEASE BE NOTIFIED that, under the provision of City of Sebastian Code of Ordinances section 66 -7 the City Council of the City of Sebastian, 1225 Main Street, Sebastian, FL 32958, by and through its City Manager, does hereby assess against the below herein described property the cost of inspecting and /or mowing the excessive growth on said property and hereby claims a lien against the following described property, to -wit: OWNER(S): MICHAEL LINSCO'TT AMOUNT: $56,500.00 LIEN FEE 10.00 CERTIFIED MAIL 10.06 TOTAL $56,520.06 CODE ENFORCEMENT CASE 2005 -35822 Said amount shall bear interest at the monthly rate of one and one -half (11/2 percent from MARCH 11, 2006 until paid in full. 02686 iIS DOCUMENT HAS BEEN RECORDED THE PUBLIC RECORDS OF DIAN RIVER COUNTY FL K: 2106 PG:1778, Pagel of 1 /02/2006 at 07:59 AM, :FFREY K BARTON, CLERK OF BURT SEBASTIAN HIGHLANDS SUB UNIT 02, BLK 61, LOT 03, PBI 5- 37 as recorded in the Public Records of Indian River County, Florida, Parcel Number #31380100003061000003.0, commonly addressed as 573 MICHAEL STREET, Sebastian, Florida DONE this day of STATE OF FLORIDA COUNTY OF INDIAN RIVER Ar he foregoing instrument 2004,, by Ai Minner, is personally known to me and who Return to: Code Enforcement Department 1225 Main Street Sebastian, FL 32958 NOTICE OF ASSESSMENT AND LIEN was acknowledged before me this l ay of as City Manager of the City of Sebastian, Florida who didnott. eans j My Commission Expires: M. Lo sl, N. ary Public P Linda M. Lohsl Commission DD555905 o` Expires June 18, 2010 F. (32- Bonded Troy Fain Insurance, Inc. 800-385-7019 'arcel 'arcelID: Base Parcel Data )wnership )wner First Name 1: Jwner First Name 2: Jwner Last Name: Mailing Address 1: Mailing Address 2: Mailing Address 3: Mailing City, State, Zip: SECONDARY OWNERS Secondary Owner: Site Information Site Number From, To: Site Prefix, Street Name: Site Unit: Site City, Zip: MAP L'+ND Legal Description SEBASTIAN HIGHLANDS SUB UNIT 02 BLK 61 LOT 3 PBI 5 -37 Full Legal Description SEBASTIAN HIGHLANDS SUB UNIT 02 BLK 61 LOT 3 PBI 5 -37 Property Information Tax Code: Assessment Year: Neighborhood Code: Property Use Code: Map ID: Real Appraiser Appraisal Date: SALES 31380100003061000003. MICHAEL LINSCOTT 573 MICHAEL ST SEBASTIAN, FL 32958 -4349 LINSCOTT, PATRICIA A 573 MICHAEL ST SKETCI 1 SEBASTIAN, FL 32958 2 140011.00 Seb Hlns Flem east N 512 0100 Single Family Improved 07.08 GC George Clarke 5/22/2006 f1'ROVT. PERM! 1' MISC MAGI F11S1 "()RY 'TRIM p{ lnt this page f fl't t1 Please have the parcel number ready when you contact the Property Appraiser. http: /www.ircpa.org/base .asp ?Parcel= 31380100003061000003.0 &Card =1 &page =base e ockt, v Board ou ine 00 e r c S� ct.r� VMctrck a 7, DNA) Coe_ 1 c;s�e`e caY Wuue t60ev- 7 1 a ob( rve 2 sX Sb.-uo= 56, -o /0 0 (d 11/16/2006 Subject: Airport Park Recreation Impact Approved for Submittal by: Fee Grant Agenda No. 0 Department Ori City Attorney: it Ma er City Clerk: .N— Date Submitted: 7 JAN 10 Al Minner, City Manager Exhibits: Park Schematic EXPENDITURE REQUIRED: $12,550 AMOUNT BUDGETED: $0 APPROPRIATION REQUIRED: Grant Establishing Budget At the last Council meeting, staff was directed to continue planning a park at the Sebastian Municipal Airport (SMA). Specifically, three issues were discussed. First, location was chosen to be the northeast lawn near the administrative building. Second, consideration was given to construct an actual airplane monument. We have found display aircraft are given away from the "bone yard" located in Tucson, AZ, there are costs associated with transportation and re- assembly at the site. A rough estimate of transportation cost is $20,000. At this time, the costs are prohibitive; however, Joe Griffin will speak with organizations and begin a process to seek donations to cover these expenses. The third issue was to prepare a park budget and provide a recommendation on funding. After further financial review, staff is of the opinion that a small park with some additional sidewalk, aviation type play- equipment and a small pavilion can be constructed for $12,550. In greater detail, a budget is as follows: ITEM 3- Aviation Theme Play Equipment Concrete (Sidewalks /Patio) Landscaping /Mulch Fencing Small Pavilion Telescope Viewer TOTAL Attached is a rough schematic of a park layout. cm o► SE S`T HOME OF PELICAN ISLAND AGENDA TRANSMITTAL SUMMARY The City Attorney is of the opinion that the Recreation Impact Fee Fund can grant the funding to the Airport Fund to construct the park. Attached hereto is proposed grant resolution. RECOMMENDATION ESTIMATED AMOUNT $3,000 1,750 1,500 1,300 1,000 4,000 $12,550 Approve Recreation Grant in the amount of $12,550 and authorize construction of an Airport Park as described.. Mayor Richard H. Gillmor Vice Mayor Jim Hill Council Member Andrea B. Coy RESOLUTION NO. R -10 -01 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, FUNDING THE DEVELOPMENT OF AN AIRPORT PARK THROUGH A GRANT FROM THE RECREATIONAL IMPACT FEE FUND; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. WHEREAS, the Sebastian Municipal Airport is an important part of the services provide by the City of Sebastian and an asset to the entire City and all Sebastian citizens and residents; WHEREAS, the Sebastian Municipal Airport plays a vital role in economic development and recreational opportunities of the City; and, WHEREAS, it is in the interest of the City to promote and invite the community to understand, promote and view the operations of the airport in a recreational setting. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SEBASTIAN, AS FOLLOWS: Section 1. Findings. The City Council, in the exercise of its legislative discretion, hereby finds and determines that there is a city wide benefit, spanning all recreational zones, for this project. Section 2. Grant. The City Council hereby grants from the Recreational Impact Fee Fund to the Airport Fund the amount of twelve thousand, five hundred and fifty ($12,550) dollars. All recreational zones shall contribute equally to the grant. Section 3. Purpose. The purpose of the grant is to construct an aviation theme park at the Sebastian Municipal Airport generally in accordance with the rough schematic attached hereto. Section 4. Effective Date. This resolution shall take effect immediately upon its adoption. A motion to adopt the foregoing Resolution was made by Council Member The motion was seconded by Council Member and, upon being put to a vote, the vote was as follows: Council Member Eugene Wolff Council Member Don Wright The Mayor thereupon declared this Resolution duly passed and adopted this 13th day of January, 2010. ATTEST: CITY OF SEBASTIAN, FLORIDA By: Sally A. Maio, MMC City Clerk Richard H. Gillmor, Mayor Approved as to form and legality for reliance by the City of Sebastian only: Robert A. Ginsburg, City Attorney Subject: Indian River County Fire House Potential Land Swap Appr•ve2. o Submittal by: L Station #9 Agenda No. 10. 00 7 Department Origi City Attorney: C Manager 1% i City Clerk: Date Submitted: 7 J' 10 Al Tr er, City Manager Exhibits: Park Schematic EXPENDITURE REQUIRED: $0 AMOUNT BUDGETED: $0 APPROPRIATION REQUIRED: $0 HOME OF PELICAN ISLAND AGENDA TRANSMITTAL SUMMARY Indian River County is now in the process of closing and demolishing the old Fire Station #9, located on US Highway 1 North. While John King (Indian River County Emergency Management Director) and I have only had a few conversations, I wanted to seek direction from Council as to whether the City has an interest in obtaining the old Fire Station location. One concept staff has discussed is a land swap with the County. The City would provide (1) minor assistance in the demolition of the old fire station; and, (2) a land donation for a future fire station location. Specifically, the County is interested in the Gibson Street location where the old Public Works /Council Chambers and Keep Indian River County are currently located. In April 2007 Council decided not to move forward with an exchange, primarily because of the request to have a fire station on the east side of the railroad tracks. The new Fire Station #9 meets our eastern location requirement and a future station may better serve Sebastian in out years. Additionally, the County is willing to exchange the US Highway 1 site. The County is researching Sebastian's input prior to moving forward with a potential sale or other County use of the US 1 location. RECOMMENDATION No formal action is required at this time. Council direction is sought. rea SE a TAN HOME Of PELICAN ISLAND City of Sebastian 1225 Main Street Sebastian, Florida 32958 Subject: Adopt A Spoil Island Program Ap d for Submittal by: ner, City Manager Agenda No: 0 0 Department Origin: Natural Resources Board Date Submitted: 12/28/09 For Agenda of: 01/13/10 City Attorney: Exhibits: None Expenditure Required: $0 Amount Budgeted: $0 Appropriation Required: SUMMARY STATEMENT Member Ken Grudens will conduct a power point presentation about the Adopt A -Spoil Island project which gives the Natural Resources Board and the community the ability to initiate and maintain projects on an adopted island, with cooperation from the Florida Department of Environmental Protection. rea SE aTApi HOME OF PELICAN ISLAND Subject: Letterboxing Program Ap d for Submittal by: A inn -r, City Manager Agenda No: /0. 00 q Department Origin: Natural Resources Board Date Submitted: 01/06/10 For Agenda of: 01/13/10 City Attorney: (.7 Exhibits: None Expenditure Required: $0 Amount Budgeted: $0 Appropriation Required: City of Sebastian 1225 Main Street Sebastian, Florida 32958 SUMMARY STATEMENT Chairperson Robin Graves will conduct a presentation to explain Letterboxing. Letterboxing is an outdoor hobby that combines treasure hunting and the environment. The program will encourage folks to go out and enjoy Sebastian parks and learn more about plants and nature. Letterboxes are hidden in a chosen park and using clues on a Letterboxing website the hunters are able to find the boxes. The hunters then stamp their log books showing they found the box. The Natural Resources Board feels this is an excellent way to bring day and weekend visitors to Sebastian and promote the greenway trails. X XO c O 0 cn� a) 1 co vi X c _c 4 O O N ca a ca aJ co c a) Q.O co 4- o+-) c p E wa) c_tea u co O 4 a) X v O v O Q O 1E 2 75:4_ CL- 0_ co a) ID Low 0 B ID C D E 0 N O a..) N O •a) a) _cp c6 O r Q s tap 0 -c e --cj (0 -o v :cu: E 7 r w E -1--) -0 0_ c La 70 Lz L b y CO 0ccp+ 0 ...0 s Ea, CO bp 0 0 v a s 4- a) N O v y=- tan O Q s- Q_ O a) -0 O C O v O s O ct- -c 0_ a) Es O a O cu N 4- D N 4- 4 1. Qss O Q_ 0 N a) cu w a) v) O c 73 ca :(7) N �cov)— 0 ca0. 0 2°�'.' o C �D O K cu 0 a) rr r4� r+ n C r 0 (D (D !D �.UU (D Q Q (D 13 (D O O- rt -I a) n O O 0_ U O N f-1- CU r+ a) O r rr+= fD Q N EU rt n Q 0- (D Q (D n N N rr (D -s O O o_ D (D (-I- h a) N -1 0) (D 0 Cr r r r (D 3 (D (D D X" O v (D (D T (D N cu C 0 rt C 3 in Q cn O N rr Q rr -0 O (D0- 0a) R. -(D p c-) O at) g, (l (D i CAI p O C CD 5 Q L.0 0 a)= _a) O (D C n (D 3 CD m O 0) 3 rp 0 (D -8 v, Q 0 (D O rr O -p (DD c T (D r+ v D f, D CD _I a) (D n 0 0 O 3 O c C (D Q (D c 07 n) -h C X V) T n) CD rD rh rt r-r Vf N O (D 0 7- a) ()q rr f N (D,+ Cr 1:3 0 Q N e--h (D C Q N 1-k (D m Q CD. (D C C rt rt CD 0) n C Q n (D V'1 r f rt Q D (D 0 rh (D 0 0 fD O 0 N CU X 3 fD 0 fD -•h F 0 3� CfQ A_ [D i IA 0 L co L O a)p� �a O L V cn =O yi.0 .p O a� .7-1 v� '3 cn a)��:, Xp 3 a OEt 0 cu %A a--' oorg -0 a a' o a, D"� a� L to b 4-• A ca by ES p E E 2 E cn in ea 0 i- aw,6 =0_ 0 ,O �4a C O,"c c- L O �4. >�y p a, p Ha) p.. C) ,C C a e.,_,>% ez i.. V mow O p ily. er 0 L aL .0 VL rt3 a) JEni bA� IN.. 1.... O"L3� E lm. O p =.p p.�a) L >s 1-. in ,S� cLa) O CD L c cu ,.h d r 1 3 a ru) .0 cu cu raj .n 13 y =c am o =3 co 0 'V "E" Ill c ,I, c a) a) ra c "a L O.�3 3 O O= L v5 ea i..) CU O. (1 -4.1 bA 3 N n 0 Subject: Road Closures and logistics associated with the 2010 Pelican Island Wildlife Festival at Riverview Park. Approved s r Submittal by: City Manager A 1 Agenda No. 0 10 Department Origin: Finance Director: City Attorney: City Clerk: O....A 414.e Ci•.. Al/ �iW' st.,■ Date Submitted: January 6, 2010 For Agenda of: January 13, 2010 A fre Mmner Exhibits: Letter from Pelican Island Preservation Society EXPENDITURE REQUIRED: None AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED: None HOME OF PELICAN ISLAND CITY OF SEBASTIAN AGENDA TRANSMITTAL SUMMARY Staff from Public Works spoke with representatives from the Pelican Island Preservation Society to discus logistics for the 2010 Pelican Island Wildlife Festival. The event is on Saturday, March 13, 2010 from 10AM until 6:OOPM. Tent set up will begin on Friday, March 12, 2010.The attached letter outlines the requested logistics and new requests for the event. Road Closures necessary are Indian River Drive from Coolidge St. south to the southern entrance to the south parking area from 6:00 AM to 7:OOPM and Sebastian Blvd. from U.S. 1 east to Indian River Drive from 6:OOAM to 7:OOPM. They also have requested to restrict the north half of the Yacht Club boat ramp for loading and unloading people for pontoon boat tours out to Pelican Island from 10AM to 6PM. New requests for this year include the sale of beer and wine, use of the old Bealls parking lot, two pontoon boats instead of one for tours and use of the 1 -95 billboards for advertising. RECOMMENDED ACTION Consider request to serve beer and wine and act accordingly. Move to approve closing Sebastian Blvd. from just past the Hess Station east to Indian River Dr. and Indian River Drive from Coolidge St. south to southern end of the south parking area from 6:OOAM to 7:OOPM on Saturday March 13, 2010. Move to approve restricting the north half of the Yacht Club boat ramp from 10:OOAM to 6:OOPM. on Saturday, March 13, 2010. Memo to: Sebastian City Council December 18, 2009 From: Steve Massey, President Pelican Island Preservation Society Re: 18 Annual Pelican Island Wildlife Festival Saturday, March 13, 2010 The Pelican Island Preservation Society and the US Fish and Wildlife gratefully thank the Sebastian City Council for your long standing support of the Pelican Island Wildlife Festival. We, once again, ask the City to co -host this event with us to help commemorate the anniversary of the founding of Pelican Island National Wildlife Refuge on Saturday, March 13, 2010. This 16 annual festival will mark the 107 birthday of the refuge and the entire national refuge system. Your continued sponsorship and support has allowed us to bring awareness to the public of this historical local treasure and the need to protect one of the last great places on earth. We are pleased that last year we welcomed more than 9,000 visitors and hope for the same participation at this event. The specific requests for this event are as follows: 1. Changes for 2010: a) The event will officially start at 10am on the 13 and close at 6pm. b) We request use of the Bealls parking lot for main event parking with additional parking signs to be provided by the city public works department. c) The sale of beer and wine from designated booths within the park. Currently looking into the legal requirements and options for how to conduct this in Riverview Park. d) Two large pontoon boats (instead of just one) will be providing back to back public tours to Pelican Island from 10am to 6pm. e) Request information on availability and use of I -95 billboard to publicize event to enhance benefits to Sebastian economy through increase in attendance from non locals. f) There will be no 5K run this year. 2. Riverview Park: a) Tents will be set up on Friday, March 12 during the day. b) Set up will begin at 6:OOam on the 13 with clean up finished by 8:OOpm. c) Large rental tents will be removed by the vendor on Monday, March 15 d) Due to the live birds of prey and reptiles on display in the park, we ask for active enforcement of the one -day restriction of pets in the park. It has been our experience that some residents, who own dogs, do not respect this prohibition and our volunteers are forced to participate in the enforcement of this rule. The presence of dogs causes particular stress to the captive wildlife and is a safety hazard with the birds of prey. We ask the city to help us by actively enforcing this rule during our event. 3. Street closure requests from 6:OOam until 7:OOpm: a) As a matter of public safety, Indian River Drive is closed from Coolidge south to the southern entrance of the south parking lot, Sebastian Blvd from US 1 to Indian River Drive, and Harrison Street from the parking lot entrance to Indian River Drive. b) The city will place "Detour Ahead" signs at the fruit stand at the south of Indian River Drive and downtown. 4. Parking: a) South Parking Lot will also be designated as the main event parking lot. b) North Parking Lot will be designated for vendor and exhibitor parking. c) Handicapped parking will be designated on both the north and south sides of Riverview Park with additional handicapped parking on the East Side of Indian River Blvd by the boat ramps. d) Traffic signs for event parking, road closure notices, and handicap parking be made and posted by the city. 5. Boat Ramp and shore line use: a) The shoreline north of the pier will be used for various kayak related activities. b) Use of the boat ramp at the Yacht Club from 10:OOam until 6:OOpm. c) Two large pontoon boats will be running public tours, back to back, to Pelican Island from 10am 6pm. We ask that the city restrict one half of the boat ramp (depending on wind direction) for the public boat tours from 10:OOam until 6:OOpm. 6. Police Security: a) Provide close supervision of the park on the evening of March 12 all day on March 13 and intermittently through March 15 until the rental tents are removed. b) Provide volunteer police support to staff road closure barricades and traffic flow. c) Provide police enforcement of the no pets restriction for the day of the festival, Saturday, March 13 d) Provide periodic marine patrol at the boat ramp on Saturday, March 13 7. Public Works: a) Publicize this event on the marquee at least a week in advance (March 7 b) Hang the festival street banner over Sebastian Blvd two weeks prior to the event (February 28 c) Set -up and mark off parking lots for event parking (PIPS liaison, David Cox). d) Provide and post traffic signs for road closures and event parking. e) Turn power on in the park on Friday, March 12 f) Set up and remove portable stage on Saturday on Indian River Drive directly in front of the pavilion. Stage will be used from the hours of 10am through 6pm. g) Provide and place handicapped parking signs in front of the parking spots attached to the north and south side of Riverview Park. h) Provide and place "Dogs Prohibited during Events" signs around the perimeter of the park. i) Provide restroom services through -out the event on Saturday, March 13 j) Provide trash removal from the park. k) Allow a POD storage unit to be placed at the park for event supplies from Friday, March 12 through Monday, March 15 With your help, we know that this event will be a very positive, fun- filled, educational and family oriented experience in the perfect setting of Riverview Park! Subject: Approval to Contract with PFM Asset Management LLC for Investment Advisory Services Ap rov or Submittal by: City Manager i Agenda No. (0 0 11 Departure t Lgin• Airi n strative Services City Attorney: '_,,,iiirj. City Clerk: Date Submitted: January 6, 2010 For Agenda of: January 13, 2010 1 il r Exhibits: Minutes from Meeting of Selection Committee Committee Summary Evaluation Scoring RFQ Submittal -PFM Asset Management LLC RECOMMENDED ACTION HOME OF PELICAN ISLAND City Council Agenda Item SUMMARY The City had a relationship with Mr. Glenn Scott with Davidson Fixed Income Management since March 2003 when he worked for Kirkpatrick Pettis. As the City's Investment Advisor, Mr. Scott provided advice on investment strategies, obtained competitive bids and executed trades on selected purchases and provided reports on investment performance. The original agreement provided for five years, with automatic renewal for successive three one -year teens. Although we could have renewed until November 2010, Staff felt that this is an appropriate time to do a Request for Qualifications (RFQ) and consider other available firms that may provide better service. Mr. Scott's was one of several that replied. The City received five responses to the RFQ. The Evaluation Committee ranked PFM Asset Management first, Davidson Fixed Income Management second and MBIA Asset Management third. The other two firms were scored significantly lower by members of the Evaluation Committee that included Al Minner, Debbie Krueger and Ken Kiligore. PFM has suggested a first year flat fee of $7,500 payable monthly, which is reduced in following years to $5,000. During the first year, the Firm will review our investment policies and internal controls and work with us to implement suitable investment strategies. Move to approve Staff's ranking and authorize Staff to negotiate and execute an agreement for Investment Advisory Services with PFM Asset Management. The meeting ended at 10:15 a.m. City of Sebastian Indian River County, Florida Investment Advisory and Financial Advisory Services Request for Qualifications Meeting of Selection Committee December 10, 2009 Minutes Prepared by Ken Killgore Selection Committee Members: Al Minner, City Manager Debbie Krueger, Director of Administrative Services Ken Killgore, Finance Director The Selection Committee met in the City Manager's office at 9:00 a.m. on Thursday, December 10, 2009. The meeting was scheduled in advance and posted on the City Hall meeting notice bulletin board on Monday, December 7, 2009. The purpose of the meeting was to review the Request for Qualifications submittals, discuss which firms would be interviewed and determine when such interviews would be held. The Selection Committee began by generally discussing the services to be expected from the two types of advisory services. Whereas the investment advisor would assist and make recommendations regarding the City's investments, the financial advisor would assist and make recommendations regarding City bond issues and other long -term debt issuance. Ken Killgore offered the possibility of operating without an investment advisor due to the possibility that in the current market place, the fees may exceed the probable incremental returns that could result from having the guidance of a professional. After extensive discussion, it was determined that the best course of action would be to proceed with hiring a professional. The professional would be expected to offer comments on our policies and procedures, as well as updates about significant issues and developments in the investment market and would share infoii cation about strategies being used with other clients. With the department's existing workload, it would be difficult to actively manage the City's investments and stay abreast of everything that should be considered. Discussion continued about each Committee Member's personal knowledge about the individuals and firms. It was generally felt that we had a very good response. The Selection Committee agreed that the best three firms for investment advisory services in the order to be recommended were PFM Asset Management LLC, Davidson Fixed Income Management and MBIA Asset Management. (Investment advisory services are currently provided by Davidson Fixed Income Management.) For financial advisory services, it was agreed that the Committee would recommend First Southwest, with the second choice being Public Financial Management. Since Ken Killgore and Debbie Krueger had personal knowledge of a number of the individuals associated with the firms and were familiar with the significant presence and experience most of the firms have in the area of providing services to local governments, it was determined that interviews would not be beneficial. E E 3 d 0) 4- E 0 0 5 LL a 5 w z 0 g a W CO 0) CO '7 00 O 0 0) 0 0 0 0 g) 2 Q 0) 110 O CO O LO 1.0 N M N O 110 10 N a) N O O 0 d. NI- 0 0 0 d d 0 CO 0) M N n N O 0 6) O a' N 110 0 0 O 0 0 N N N 10 n CO r r r O CO N r r 0) 0) N r �r a) 00 0 0 Co r N a c, u) 0 r r r 0 0 0 Co N M M M 0 00 10 0 0 M N 117 00 (0 N N N 0) z M N 0 M N N CD N (O N O 0 M 0) O O O N M O O G 0 0 O 12F City of Sebastian, Florida Proposal for Investment Advisory Services Duplicate Due November 13, 2009 4:00 p.m. EST PFM Asset Management LLC An Independent Investment Advisory Firm 300 South Orange Avenue Suite 1170 Orlando, FL 32801 fax (407) 648 -2208 4 648&1323 Contact: Steven Alexander alexandersapfm.com and One Keystone Plaza Suite 300 North Front Market Streets Harrisburg, PA 17101 -2044 (717) 231-6200 fax (717) 233 -6073 www.pfm.com Table of Contents Transmittal Letter TAB PAGE Description of Firm I 1 7 Knowledge and Experience 11 8 25 Services to be Provided or Made Available III 26 30 Litigation or Administrative Proceedings IV 31 32 Resumes V 33 40 References VI 41 43 Appendix A Pricing and Fees VII 44 46 Appendix B Detailed Resumes VIII 47 48 f3z The PFM Group f'uiili<; Finn iciai Management. Inc. PFM Asset Maraga(rent LLC PFtut Ads. Mr. Ken Kilgore Finance Director City of Sebastian 1225 Main Street Sebastian, FL 32958 Dear Mr. Kilgore: 300 S. Orange Avenue Suite 1170 Orlando, FL 32801 407 648 -2208 407 648 -1323 fax www.pfm.com November 13, 2009 PFM Asset Management LLC "PFM is pleased to serve as the City of Sebastian (the 'City Fixed Income Fund Investment Services Advisors. PFM looks forward to the opportunity to serve the City in the coming years. As such, we are submitting our proposal to the City for Investment Advisory Services. PFM is a national leader in managing operating funds for public agencies, with broad experience providing investment and debt management services to public agencies and a successful record of work for many Florida local governments. Our long- standing relationship demonstrates our ability to add considerable value as an investment advisor for a variety of district funds. We are confident that we can help the City enhance its investment portfolio through a safe and conservative investment strategy designed to optimize investment returns in compliance with the City's investment policies and other applicable statutes. We are an independent investment advisor and not an investment bank, insurance company, or securities broker /dealer. We sell investment advisory services not products. Our business is to provide investment management services to local governments just like the City of Sebastian. We believe that the following factors, addressed in greater detail in our proposal, summarize why PFM is well suited to work with the City. Public Sector Focus: PFM's sole mission is to provide the best possible financial and investment advice to public sector entities. We have managed funds for public agencies since 1980, and we currently manage nearly $38 billion of public sector assets. We have built a strong reputation in this specialized field. We know the markets, understand the special needs of public sector investors, and have the technical resources needed to develop effective investment strategies. We believe that no other firm brings this level of experience of working with public sector entities like the City. PFM is an independent advisor providing investment management services to only state and local governmental agencies. PFM is ranked in the Top -25 Active Domestic Fixed income Managers for 2008, as listed in the May 2009 issue of Pensions and investments magazine. Additionally, as an independent firm with the highest standards of integrity and transparency, PFM is free of financial and legal problems. As we have worked hard to protect our clients, we have protected our firm from the perils of the recent market crisis that struck the banking, insurance industries and some investment managers. Experienced Professionals: PFM has a comprehensive understanding of the City's overall cash and investment program. Mr. Steven Alexander, Managing Director, CTP, CGFO, authored Florida's Investment Policy Statute, which stresses the safety of public investment funds. This objective is identical to the safety objectives noted in the City's investment policy. Additionally, f FM Mr. Alexander served as the Treasury Manager for one of the largest counties in the nation and was responsible for the management of the cash and investment portfolio, banking, debt administration and revenue collection functions. This combination of experience allows us to provide the City with a broad base of services and support. Through our diverse team of highly qualified professionals, we are committed to providing the highest level of service to the City. While we believe that each client poses a unique set of needs, the key individuals on our team have successfully worked together on other similar accounts. We hope that you will contact our references as we are confident that you will hear that we are highly committed to client service and providing proactive advice. Record of Performance: We have a performance record of superior results both in terms of the high credit quality and excellent investment returns of our clients' portfolios. PFM has helped our clients enhance the performance of their portfolios while, at the same time, carefully controlling and limiting market risks. We believe that the City's investment program will be successful in future years because of our strong commitment to ensuring the safety and liquidity first, and then the investment return of the portfolio. We understand the importance of protecting valuable public funds from risky and unsuitable investments. Our record in this area is unblemished. PFM is enthusiastic about this opportunity to service the City in the capacity of investment advisor. We appreciate your consideration of our proposal and hope to have the opportunity to discuss it with you and answer any questions you might have. Steven Alexander, CTP, CGFO, Managing Director, has full authority to respond and make final decisions regarding this response. PFM does not have any exceptions to this request for qualifications. The proposal shall be binding for at least one hundred twenty (120) calendar days following the opening date. Sincerely, PFM Asset Management LLC Mr. Ken Kilgore Finance Director November 13, 2009 Page 2 Steve Alexander, CTP, CGFO Date: Managing Director/ Partner 300 South Orange Avenue, Suite 1170 Orlando, FL 32801 Phone (407) 648 -2208 Fax (407) 648 -1323 alexanders(a2pfm.com 21 1,36 Tab I. Description of Firm /a .WirFN4' Tab I. Description of Firm Describe how the Firm is organized, its location, and resources it has available to execute the services that may be beneficial to the City. PFM Asset Management LLC "PFM together with its affiliate, Public Financial Management, Inc., are nationally recognized as leading investment and financial advisory organizations, specializing in providing services to the public sector. Public Financial Management, Inc. was founded in 1975 and began providing independent investment management services in 1980. In 2001, PFM Asset Management LLC was created as the entity under which investment advisory services are provided. The PFM Group has four primary business activities: Investment Advisory Services. PFM's business focus is providing independent, investment advice and portfolio management services to public agencies. Investment Consulting Services. PFM Advisors, a division of PFM, provides investment consulting services to pension funds, endowments and similar funds. Financial Advisory Services. Public Financial Management, Inc. engages in capital planning, revenue forecasting and evaluation, resource allocation, debt management policy development, and debt transaction management (including structuring, documentation, and execution). Strategic Consulting Services. The PFM Group also provides capital and operating budget consulting services to public agencies. Since 1993, the PFM Group has helped clients eliminate billions of dollars of projected budget deficits. PFM Asset Management LLC manages 2,230 separate accounts for more than 468 public sector and other institutional clients and provides investment management services for the benefit of over 7,680 additional participants through commingled state -wide investment programs. In the State of Florida, PFM has $6 billion of assets under management in 140 separate accounts. PFM's separately managed portfolios range in size from $5 million to $1.2 billion. PFM Asset Management LLC is the nation's leading investment advisor to local governments and has a successful track record of working with local governments across the country. Our clients include Counties, Authorities, Cities, Colleges and Universities, Healthcare Districts, School Districts, Special Districts, and Towns including; St. Johns River Water Management District, Hillsborough County, Palm Beach County School District, South Florida Water Management District, Munroe Regional Medical Center, City of Ocala and Marion County. A majority of the accounts under our management consist of operating funds, bond proceeds, working capital funds, insurance reserves and other governmental funds with an investment horizon of one day to ten years. The engagement manager for the City will be Mr. Steven Alexander, CTP, CGFO, a Managing Director in PFM's Orlando office with over 23 years of experience in public finance. He will be assisted by Mr. Mel Hamilton, Senior Managing Consultant with 24 years experience in various money market investment instruments and banking services. Also assisting will be Mr. David Jang, Senior Managing Consultant with 23 years experience in investment advice and portfolio management services to institutional investors. All are located in the Orlando office. Detailed resumes for Mr. Alexander, Mr. Hamilton and Mr. Jang, as well as other members of the City's team, are provided in Tab VIII. The Orlando office is fully equipped to service the City with an experienced staff and Bloomberg access we will furnish the City with all the reports and presentations necessary as Investment Advisor. We also work closely with our Harrisburg office which is where our in -house trading desk manages all of PFM's client's portfolios. City of Sebastian Investment Advisory Services I 1 Ade— P Tab I. Description of Firm Comment on any recent significant changes in your organization. In May 2009 Public Financial Management, Inc. (a Pennsylvania corporation) and PFM Asset Management, LLC (a Delaware Limited liability company) and related businesses, all of which were owned by their senior employees "Managing Directors reorganized into a holding company structure. The new holding company is named PFM Group, LLC (a Delaware limited liability company) and all of the above -named business entities have become indirect wholly owned subsidiaries of PFM Group, LLC. Contemporaneously, a group of well -known private equity investors made a substantial equity and credit investment in the PFM Group, LLC holding- company structure. Include discussion about specific expertise and services that distinguish your firm. PFM Asset Management LLC is the nation's leading investment advisor to local 'governments and has a successful track record of working with local governments across the country. Our clients include Counties, Authorities, Cities, Colleges and Universities, Healthcare Districts, School Districts, Special Districts, and Towns including: St. Johns River Water Management District, Hillsborough County, Palm Beach County School District, South Florida Water Management District, Munroe Regional Medical Center, City of Ocala and Marion County. A majority of the accounts under our management consist of operating funds, bond proceeds, working capital funds, insurance reserves and other governmental funds with an investment horizon of one day to ten years. Describe the Firm's current and anticipated workloads and availability to commit to the services that may be required by the City. Team Approach to Portfolio Management Client portfolios are managed by individual portfolio managers who are supported by a team of professionals. The investment team would consist of several professionals dedicated to the City's account, with several other members of PFM available for specific projects. Each portfolio manager /trader team handles approximately 20- 25 actively managed accounts. The portfolio sizes managed by PFM's team of portfolio managers ranges from approximately $5 million to $1.2 billion. In addition to the primary portfolio manager, the City will be assigned a secondary portfolio manager, an engagement manager and senior technical consultant and each portfolio manager works with a trading assistant. While there are no established limits on the number of accounts or assets under management, PFM's team approach to investing, results in the City's portfolio being reviewed by several senior investment professionals. PFM strives to provide the highest level of customer service to all of our clients. Identify the extent and nature of any anticipated outside support. PFM does not anticipate any use of outside support, unless otherwise requested by the City. PFM is fully equipped to provide all services detailed in this proposal to the City without use of any outside source. Explain how you evaluate the performance of the portfolio. PFM recommends evaluating the performance of the portfolio based on its Total Return Performance on a quarterly basis and compared to an appropriate benchmark that matches the City's investment strategy in duration and investment type. PFM presents the performance of our portfolios as total return in accordance with the CFA Institute (AIMR), as described in the Global Investment Performance Standards (GIPS) Handbook. Below is a table detailing the performance of a few of our composite and compared against their respective benchmarks. City of Sebastian Investment Advisory Services 12 go) Strategy /Benchmark Average Annual Total Returns Standard Assets WAM or Deviation No. of (in Duration of Returns Accounts millions) for periods ended September30, 2009 3Q09 1 Year 3 Years 5 Years 7 Years 10 Years Short -Term Pool Composite 0.15% 1.27% 3,47% 3.58% 2.93% 3,42% Short-Term Government Pool Composite 0.15% t28% 3.39% 3,53% 2.89% 3,39% Short-Term GovernmentlCorporate Pool Composite 0.15% 1.27% 3.50% 161% 2.95% 3.44% ML3 Month Treasury ail 0.07% 039% 2.81% 3.11% 2.56% 3.11% PFM Enhanced -Cash Composite 0,35% 308% 4,20% 186% 123% 4.02% ML 1 yr Treasury Index 0.33% 2.34% 4.13% 3.62% 2.97% 3.85% PFM 1 -3 Year Fixed Income Composite PFM Intermediate -Term Composite ML 1 -3 Treasury Index *Source of Benchmark Performance: Bloomberg PFM Identities Compliant Trade Opportunity 1, Verify compliance 2, Obtain multiple bids 3, Execute trade with best bid PFM provides a detail trade ticket with bid comparison Tab I. Description of Firm 57 56 58 57 (5 years) 0.47% 0.47% 0.47% 0.54% 15 117,206 8 5,838 7 $11,368 0.62 0.70% 0.91 0.90% 22 0.86% 5.71% 5.63% 4.46% 3.80% 4,82% 1.47 1.47% 76 5,025 0.98% 6.14% 5.75% 4.53% 3.87% 4.91% 1.64 1.55% 98 6,235 0.78% 3.46% 516% 4.03% 3.40% 4.54% 1.85 1.62% Explain how you will assure competitive pricing on security purchases and how you will provide regular reports to the City. PFM monitors the market on a daily basis. Once investment decisions are made, PFM pursues an aggressive and intensive effort to obtain the best possible bid/offer price available for the particular security by soliciting bids /offers from at least three financial institutions. In executing trades for the City, we will only deal with those firms on the City's approved list. PFM will provide the City with trade tickets by the end of day on which the transaction occurred. These trade tickets will provide the City with an excellent audit trail for transactions that occur within the portfolio. PFM will provide Trade Tickets to Village Community Development Districts and the Custodian CnYa SEBASTIAN HOME OF PELICAN ISLAND City of Sebastian's Custodian All of the City's transactions will take place via Delivery versus Payment and would be held by the City's custodian in the City's name. All interest payments will be deposited in the City's account. PFM's portfolio managers have streamlined the process of coordinating the delivery of securities and cash via wire transfer between a variety of custodian banks and broker dealers. PFM provides a comprehensive package of investment reports to our clients in paper form and through our secure internet site. Online reports are available directly from PFM, separate and distinct from your custodian. The following standard reports are provided to PFM clients: City of Sebastian Investment Advisory Services 13 1,846 Report Frequency Content Ha Cash Forecasting Report Month=to- Date`- Transactions Activity and Portfolio Holdings Performance Reports inga Monthly Dally Monthly Quarterly .Hpoings report security d "etails p r, cost discounts; Available online, Tab I. Description of Firm Cash report that lists upcoming cash payments and maturities for the next 60 days. Provides economic summary of previous quartet, p statistics, and a compan5or of investment pk appropriate berchitarks An ntra -month report that shows .portfplio activ ty (buys 1, sales rnatuntres 1 c oupon payments) Available arittne. Description of all securities held in the portfolio as of the en d o f the month. Includes fair market values and analyt security transactions and current month gains and losses. A vailable online. Reports and Reporting Capabilities PFM will provide the City with Monthly Statements, a monthly Asset Allocation report which illustrates the City's investment holdings in detail, monthly and periodic market update and outlook reports, and quarterly and annual investment reports which will compare the benchmark with the performance of the City's portfolio, trade tickets for each transaction within the City's portfolios and bond investment reports for the investment of bond proceeds. PFM's monthly reports provide the necessary accounting information required for GASB 40 compliance. Our Accounting Director, Debbie Goodnight, CPA, and Steven Alexander, CTP, CGFO, Managing Director, has assisted the GASB Board in the development of GASB 31 and GASB 40 Notes. The following details the reports PFM will provide to the City. These reports will detail the performance of the City's investments, provide compliance documentation with regard to asset allocation, present timely economic and market information, security transaction documentation, planning tools for cash flows, and 24 hour on -line access to portfolio transactions and holdings, and bond portfolio investment reports. These reports include: City of Sebastian Investment Advisory Services 14 AcCOM13c Analysis for General Ledger Entries 30 Consent.. Portrplk Moonlit F' "krre, 4408i ayl Earnin ®s calculation 6r1V1r601 Amprana (Cost Bests M ay Mahe 5.,7" 60.001.566.73 1 Assent Smmey Page May P ted 0054eet 627,166.43 2 A c c o u n t 5 1 yPaga Lass Purchases (17.006.621.01) 3 Security 7rmeact41e 3 Interest Less Purchased Peered (220.557 51) 4 Security Trsosaclims 6 Interest Add (Sales. ssawllles Peydawne. ale.) 17.3.9.102.55 5 Security Trar.acgona l Wrest Add Interest Receipts 5.4.15366 5 Security Transactions A Interest less Ape MarWt VOW (51.35240124) 7 Account Summery Page Lau APre Accrued INres1 (7064536.) 6 Account Summary Page s A50,6.6.06 .Lets. in Inevon.nt Martial Wes 370,61557 (1 7) Chesil. In Amued Interest 111.11476 (2 el Change In Cash 641,547.66 (sum 3 0vu 6) 111ya?0t E4s -J t(dmN6wieresetAelk `otit e yaa .y p *s S ss4±`c.*. ;a s,a. w "7 .r Y dMt�Ain .4 c• '�Y4 j n�lltldJ N --.a"4 +e s zOb Tab 1. Description of Firm Month End Statements Month End Statements are GASB 40 compliant and provide detailed portfolio holdings information and include the necessary accounting information required for entry into the City's general ledger. Additionally, PFM can assist the City with the journal entries associated with investment transactions. PFM's accounting general ledger template is GASB 31 compliant. Month Statements Are GASB 31 and 40 Compliant With Market Value and Asset Allocation Quarterly Performance Reports PFM will provide quarterly reports which present significant portfolio detail regarding performance of the portfolio versus the benchmark, investment holdings, maturities, transactions, investment strategies, and the economy during the quarter. Quarterly reports provide all of the details required by the City's policies and State and Federal regulations as well as an Economic Summary to review the market environment that lweacr en, _t1. ..reetures1ur to, existed during the quarter. Summary portfolio information is prepared both in text form and graphically to enhance the readability of the product. Clients save time and system costs by utilizing PFM's sophisticated and proprietary links. Annual Performance Reports PFM also provides annual reports which contain the same detailed information as the quarterly reports but with annual performance of the portfolio and annual updates to the investment strategies and the economy. Comprehensive annual reports also provide the information required by the City's policies and State and Federal regulations, and economic summary and market conditions for the fiscal year. As with the quarterly reports, portfolio Information is provided in text form and with tables and charts. Quarterly Investment Review Meetings PFM strongly encourages all of our clients to meet at least on a quarterly basis to; discuss the performance of the investment portfolio, review the quarterly reports, recap the prior quarter, reveal future investment strategies and discover expected cash flow needs. These meetings will be conducted by Steven Alexander, CTP, CGFO, Managing Director and Mel Hamilton, Senior Managing Consultant. They provide the opportunity to discuss market related topics such as Federal Open Market Committee meetings, economic indicators and other relevant events that occurred during the period which affected the markets, and how those events are expected to impact the markets in future quarters. City of Sebastian Investment Advisory Services 155 Additional Reports that will be provided to the City Tab 1. Description of Firm Customized Reports PFM uses CAMRA accounting and investment software which allows for fully customized reporting in addition to the monthly, quarterly and annual investment reporting we provide to all of our clients. All of PFM's reporting is in compliance with AIMR (the CFA Institute). These reports are downloadable into Microsoft Excel. PFM also provides customized cash forecasting reports. Please find below examples of Custom Reports PFM currently provides to our clients: Monthly Market Update and Outlook PFM provides a monthly recap of the economy and market information and the expectations of what economic information may affect the market in the coming weeks. Period Market Reports Occasionally certain events take place within the market that significantly affects the economy. These reports explain the impact of these events and how they affect the investment strategy of the client's portfolios. Monthly Asset Allocation This monthly report provides a graphical representation of the percentage allocation of investment holdings by security type and individual issuer and each holding's compliance with the investment policy. Monthly Market Ilpdal• .11x3 Outlook .;.....p:.■...,. ad,�»w'..evios �r� r w 1. 1 111.,., 1-3'^ x ,>5":�;. »m. W mod k .aRnst..l. n, »+Jw A n.M1Yq.... .Trr� I Up -to -date Economic Summary City of Sebastian Investment Advisory Services 16 Trade Tickets PFM provides the client with trade tickets by the end of day on which the transaction occurred. These trade tickets provide the client with an excellent audit trail for transactions which occurred within the portfolio. BUY Public Meow 11/08(08 Client Name Trade. Date FEDERAL HOME LOAN BANK Seasity Deaciippon Per 2 0299% Yieldto Nattaity Dated Date 99.63, Price 11I07IQ8 Settlement Date 2.375 Coupon BANK OF AMERICA 3133)[Q5C2 4/30/10 Broker CuSIP Maturity Date 11.970.000 $11.925,950.40 Pnncipet 5.52741 Accrued Interest 1 Minimum Three Bids per Trade Tab I. Description of Firm Bond Investment Strategies Reports PFM provides a comprehensive approach to the review and investment strategies for bond proceeds. This analysis provides options for the investment of bond proceeds based on project draw schedules and current and expected market conditions. Sample copies of all reports are available upon request. City of Sebastian Investment Advisory Services 17 Tab II. Knowledge and Experience eiC) Tab II. Knowledge and Experience Provide a description of the Firm's technical capabilities for providing expertise and administrative support in a timely manner to other clients. PFM's Professional Personnel PFM's technical capabilities and expertise begins with our superior staff. PFM Asset Management employs 174 professionals who are responsible for actively managing and supporting the management of more than $38 billion in fixed income public funds and advising on an additional $18 billion. PFM's entire staff is committed to serving the needs of our public sector clients. PFM's professionals have broad experience and expertise in government and financial markets. PFM's professionals include former: State government officials, School Principals School board officials School business managers Finance directors, School Board managers, County administrators, Transit agency CFOs In addition to government service, many of our professionals have previously been employed as investment bankers, portfolio managers, attomeys, controllers, accountants, City planners, systems managers, architects and engineers. This experience provides perspective for our work and an understanding of the unique pressures that often weigh on our public- sector clients. As a result, PFM's professionals will be able to ensure that the City is in compliance with its Investment Policy, Internal Controls, and standard investment practices on a daily basis, in addition to performing a more comprehensive review of the City's Treasury management functions on an annual basis. The following table provides a breakdown of investment staff by category: Professional Capacity Employees* Portfolio Managers/Traders Credit/Market Research Analysts Marketing /Client Services Accounting /Operations Administrative 13 32 67 37 25 Total *As of June 30, 2009 Additional information on individuals responsible for determining general investment advice can be found in Part II of the ADV Form, available upon request. For other senior level employees, additional information is available on our website at: http /asm.pfm.com /Professionals. PFM's 13 portfolio managers are assisted by a team of 32 consultants and dedicated to fundamental credit research on fixed income securities and market conditions. A subset of that group forms PFM's Credit Committee. PFM's Internal Credit Committee Protected the our clients The past two years have been some of the most difficult times to endure in our lifetime. The unraveling of the markets has eroded the U.S. economic landscape. Consider: The takeover of Fannie Mae and Freddie Mac in early September was followed by the largest corporate bankruptcy in world history with the collapse of Lehman Brothers on September 15th. On September 16th, the Fed took an 80% ownership stake in AIG by lending the company $85 billion. Nearly two weeks later, the FDIC seized the assets of Washington Mutual this the largest U.S. bank failure in history. In fact, five of the eight largest U.S. bankruptcies in history have occurred since 174 City of Sebastian Investment Advisory Services 19 Tab II. Knowledge and Experience September 2008, quite a monumental feat (in order of largest to smallest: Lehman, Washington Mutual, General Motors, Chrysler, and Thornburg Mortgage). Throughout the entire market collapse, we have worked hand in hand with our clients to structure and manage high quality portfolios. PFM has managed our client's funds with the utmost of caution, making the right decisions, not reaching for yield, and not putting client monies at risk. At PFM, we believe we are a leader in the industry among investment advisors and consultants. Our credit committee has a proven track record no loss of principal for PFM's clients or the money market funds we manage. Credit research has become increasingly important in the current market environment. Because PFM specializes in managing short- and intermediate-term fixed- income assets of public agencies, we have tailored our research capabilities and resources to meet client needs in this area. PFM's Credit Committee is tasked with performing credit review and research and maintaining an internal "approved" credit list. We don't make decisions simply based on external credit rating, but rather use several different tools and methodologies to determine if a credit should be included on PFM's "approved" list: Begin with a review of ratings by the Nationally Recognized Statistical Rating Organizations (NRSROs) Perform an internal fundamental analysis of corporate issuers by reviewing: Financial statements Equity research reports Quality of management Business outlook Firm's competitive position in the marketplace The Credit Committee is primarily comprised of portfolio management and trading professionals but also includes Marty Margolis, the Chief Investment Officer, as well as consultants and technical analysts. This group meets monthly to discuss credit issues which may have developed in the financial markets. However, if warranted by market conditions (as in the case of the recent sub -prime mortgage meltdown and ensuing credit crisis) the Credit Committee will meet more frequently to discuss market developments and their impact on our clients holdings. At PFM, we specialize in managing funds for public entities just like the City, and have been doing so for nearly 30 years. The requirements for integrity, diligence, transparency, and a focus on risk management that public entities expect are fundamental to our investment philosophy and process. These facts, coupled with our proven track record and comprehensive approach to finance, makes us a leader in providing sound, independent financial and investment advisory services to our clients. Because we manage only public sector funds, our style and approach emphasize avoiding credit risk, minimizing market risk and retum volatility. Credit analysis is an integral part of all of our decisions to buy,, hold or sell securities. The average quality of our clients' portfolios is AA or AAA. We will generally seek to reduce risk by emphasizing U.S. Treasury and Federal Agency obligations that have lower volatility compared to comparable maturity corporate securities. Our in house credit committee, as well as our consultants who assist the committee, monitor each security in our clients' portfolios. PFM's investment methodology is distinctive because, unlike other investment advisors, every security we buy must be suitable for a public entity, including the City. Our core investment philosophy which has been in place since we began managing funds nearly 30 years ago emphasizes the use of low -risk, active management strategies to add value while avoiding credit risk and minimizing market risk. Since 2001, PFM has applied these strategies in managing the client's funds just like the City, and with great success. PFM does not seek to boost yields by making speculative investments or taking higher levels of risk by Investing In securities with maturities longer than appropriate or by investing in lower rated securities. We have never purchased for City of Sebastian Investment Advisory Services 1 10 Tab IL. Knowledge and Experience our clients any security that has suffered a loss of principal. PFM understands the importance of protecting our clients not only from an actual loss, but also from a loss of the public trust. Credit Process Above all else, PFM values safety of funds in all of our clients' portfolios. PFM's Credit Committee, a formal internal Committee made up of our portfolio managers, traders, and analysts, reviews the credit of issuers and maintains an approved credit list. There are significant differences between PFM's and our competitors' credit review process, as seen in the table below: PFM Competitor Focus of Credit Research Specifically tailored towards government entities and their approved security types Possibly focused on equity trading, wealth management, and /or derivatives Purpose of Credit Committee Formally add or remove issuers from our approved issuer list. Approved Issuer list is used to determine appropriate issuers within the constraints mandated by our clients' safety and liquidity needs Corporate level investments, may or may not be tailored to government entity investment mandates Liquidated all asset backed commercial paper months prior to market crash of 2007, thus protecting principal of clients' portfolios Yes Other fund managers had their parent company provide funds to support money market funds Our well developed credit review process relies on our own internal credit research. PFM selects individual issues for our client's portfolios based on our assessment of a particular issuer's financial strength, credit rating, City of Sebastian Investment Advisory Services 111 50 40 30 20 10 Tab II. Knowledge and Experience credit trends, issue structure, liquidity, and the client's risk tolerance. In addition to our own research, PFM utilizes the research of Fitch, Moody's Investors Service and Standard Poor's Corporation. Our approach has proven its worth during this period of financial turmoil, as our clients have avoided the problems that other investors and investment advisors have encountered with collateralized debt obligations (CDOs), structured investment vehicles (SIVs), asset backed commercial paper (ABCP), and lower -rated corporate securities. Market Trends PFM adds value to our clients' investment programs by following market trends and capturing value when opportunities present themselves, whether those opportunities are due to an undervalued security, sector spreads or government intervention. Security Selection and Trade Opportunities that Helped our Clients: PFM has developed several models that help us to analyze the markets. Our daily benchmark spread model, as seen below, helps us to analyze the current market compared to the market over the past 30 days. In the chart below, we are able to monitor the market in which our clients participate at a moment's notice. Agency and Treasury Spread Monitor The chart above is a sample of what our analysts and traders see when looking at the model's output. The orange triangles show the current spread between specific Federal A9encies and US Treasuries at each point on the yield curve. The red lines show the minimum and maximum spread between these securities over the past 30 days. Our portfolio managers and traders can use this model and its data to identify attractive Agency and /or US Treasury securities in the market and then purchase or sell these securities on our clients' behalf. For example, for a client's portfolio at the end of April 2009, we swapped out of a Treasury security yielding 0.32% into an Agency yielding 1.38 a pickup in yield of more than 1.0 City of Sebastian Investment Advisory Services 112 POO Tab II. Knowledge and Experience Another tool that our portfolio managers use in managing clients portfolios is our Top Swaps Finder. This model analyzes our clients' current holdings and then compares the prices and maturity levels of those holdings with open market securities. We can then pinpoint which securities in a portfolio could potentially be swapped into other securities, and also determine the impact of the portfolio duration with this trade. The table below is an output screen from our model. On the left, we show potential Sells, with par amounts held, security type (T Treasury; FHLMC Freddie Mac Agency; FNMA Fannie Mae; etc.), coupon, maturity, and current bid price. The column on the right includes securities that we potentially swap into, and their characteristics, including the extension (in months) of the trade. For example, on February 11, 2009, in a client's ortfo lo ur o olio m, a ers saw an o. o uni to sell a bulleted A enc realizin over $100,000 in gains, and purchase a callable Agency picking up nearly 40 basis points (0.4 in yield over the bulleted security. Bid 2,2 80.000 T 4.125 8/31/2012 1.385 750,000 T 4.625 7/31/2012 1.334 300,000 T 4.375 8/15/2012 1.353 37,615,000 T 1.500 7/15/2012 1.345 1,500,000 T 1.375 9/15/2012 1.461 247,329,000 T 1.375 5/15/2012 1.278 9,950,000 T 4.750 5/31/2012 1.284 1,350,000 T 4,500 3/31/2012 1.212 12,307,000 T 4.875 6/30/2012 1.292 3,000,000 T 4.500 4/30/2012 1.238 186,555,000 T 1.375 4/15/2012 1.238 185,150,000 T 1.875 6/15/2012 1.318 161,275,000 T 1.375 3/15/2012 1.198 350,000 T 4.875 2/15/2012 1.131 14,155,000 '1' 5.12.5 6/30/2011 0.757 3,000,000 T 4.625 2/29/2012 1.147 62,800,000 T 1,125 6/30/2011 0.778 500,000 T 4,750 1/31/2012 1.125 148,460,000 T 1.375 2/15/2012 1.172 345,000 T 5.000 8/15/2011 0.824 7,568,000 T 1.125 12/15/2011 1.078 Duration Management Protected our Client's Funds: Top Swaps Finder (1 -3 Year Securities) Extension Offer Pickup (Months) FHLB 1.625 9/26/2012 1.676 29.165 0. 867 FHLMC 5.500 8/20/2012 1.612 27,811 0.667 FNMA 4.375 9/15/2012 1.624 27.111 1.033 FNMA 1.750 8/10/2012 1.600 25.515 0.867 FHI.B 4.625 10/10/2012 1.714 25.307 0.833 FHLMC 1.750 6/15/2012 1.531 25.302 1.033 FIILSIC 1,750 6/15/2012 1.531 24.721 0.500 FNMA 1.875 4/20/2012 1.453 24.154 0.667 FI -1LMC; 1.750 6/15/2012 1.531 23.946 (0.500) FNMA 4.875 5/18/2012 1.469 23.079 0.600 FNMA 1.875 4/20/2012 1.453 21.525 0.167 MI3K: 1.750 6/15/2012 1.531 21.357 0.000 FHLB 2.250 4/13/2012 1.397 19.863 0.967 FNMA 6.125 3/15/2012 1.312 18.068 0.967 CHUB 1.625 7/27/2011 0.938 18,061 0.900 FI11,>MC 2.125 3/23/2012 1.328 18.014 0.767 FHTB 1.625 7/27/2011 0,938 15.905 0.900 FNMA 5.000 2/16/2012 1.273 14.834 0.533 FN.M.A 6.125 3/15/2012 1.312 13.996 0.967 F1IL'VMC 5.500 9/15/2011 0.964 13.990 1.033 FFFLMC 5.750 1/15/2012 1.214 13.564 1.033 Historically, PFM has maintained a disciplined approach to portfolio durations keeping portfolio durations near that of their benchmark. However, in light of the current unprecedented conditions in which rates are near all -time lows, PFM has implemented a different duration strategy. During this time we targeted portfolio durations shorter than that of their benchmark. This approach aims to generate modest and less volatile total returns, preserve principal, and avoid high market value declines when interest rates do turn around, which could happen rather quickly as various stimulus programs take effect. Below is an example of how PFM has managed the duration of a client's 1 -3 Year portfolio over the past 5 years: City of Sebastian Investment Advisory Services 1 13 5% 2 Year U.S. Treasury Yields and PFM's Management of a Client's Portfolios Sept 2004 -Sept 2009 6% 4% 3% Tab II. Knowledge and Experience 2% 1 %0 0% Sep -04 Sep -05 Sep-06 Sep -07 Sep -08 Sep -09 A. June '05 Managed portfolio duration to approximately 70% of benchmark. Yields increased 50 basis points "bps in less than 2 months. Maintaining shorter duration helped to protect the portfolio's principal during this time. B. May '06 Over the period of 4 months, PFM reduced duration from 94% of benchmark to 87% of benchmark as yields rose about 80 bps over that span. Shortening duration helped to not only protect the portfolio's duration, but allowed the portfolio to post strong returns and outperform the index during this time, returning 1.93% versus 1.78% for the index. C. June '07 Extended duration in anticipation of falling 2 Year U.S. Treasury yield. Sold shorter term securities and bought securities with longer maturities to lengthen our position. D. February '08 Cut duration to 86% of benchmark. 2 Year U.S. Treasury yields more than double from 1.35% to 3.04% in 4 months. Total return over this period is 0.39% compared to 0.15% for the index. E. June '08 Extend duration to 96 %Q of benchmark before yields fall distinctively over next few months. F. June '09 Reduced duration to approximately 50% of the index. With rates at historical lows, we have taken this action to further protect the portfolios principal. Additionally, client requested extra liquidity to maintain cash needs. PFM worked with the client over the past few months to shorten the portfolio and allow for adequate liquidity to meet cash needs. With PFM's actions, the portfolio was not affected in any negative way during this time. PFM maintains well diversified portfolios across sectors and issuers. However, when opportunities arise due to changes in sector spreads, PFM takes advantage of these situations. For example, in September 2008 PFM increased allocations to federal agencies. The graph below illustrates the upswing in spreads between two year agencies and two year treasuries around the credit crisis. City of Sebastian Investment Advisory Services 114 051 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Sep-04 Tab II. Knowledge and Experience Spreads of 2 Year U.S. Agency Notes vs. 2 Year U.S. Treasury Notes September 2004 to September 2009 Now Spread 10 Yr Avg Sep -05 Sep-06 Sep-07 Sep -08 Sep-09 By investing in agencies towards the end of 2008, PFM added significant value to the Portfolio, as the spread between agency and treasury narrowed to below its historical average. PFM assessed the value of FDIC- guaranteed obligations as soon as the new debt was issued. These securities offered significantly high yields while guaranteed by the government so PFM invested our client's funds, where permissible, in these securities and benefited greatly. PFM ably steered clients throughout the credit crisis and its fallout. While institutions around the world were losing money, our clients were not. PFM's experience with public entities and low risk strategies helped our clients not only maintain principle, but also exceed benchmark returns. PFM performed an in -depth analysis on the Florida State Board of Administration's ("SBA") fund, finding that it was holding at risk securities. The City's proposed client manager, Steve Alexander, sent a letter to our clients recommending that SBA fund no longer be used as the short term investment vehicle. This advanced notice allowed the client time to withdraw funds prior to the meltdown, Communication with our Client's One important aspect of active management is constant communication with our clients. As our portfolio managers focus on the markets and the structure and performance of our clients' portfolios, our client managers work with our clients to determine cash flow needs, discuss market events, and communicate any potential changes to the portfolio from the client to the portfolio managers and vice versa. Since the start of our relationship, PFM has fulfilled many different tasks for our clients, including a cash flow analysis to determine liquidity needs. The cash flow analysis helps to identify the portion of the portfolio needed for liquidity and the "core" balance that could be invested long term. A combination of this analysis and our communication has provided clients with exceptional levels of additional funds through eamings. Additionally, PFM will review and provide recommended changes to the City's investment policy and Internal Controls Procedures Manual for the City as part of our Treasury Management Program. Every year, PFM produces annual reports and instructs clients on new software needs. PFM also handles accounting needs by making sure clients meet GASB 40 requirements. This is just the beginning of services that PFM will provide to the City. If the City chooses to use PFM, we will provide the current support team of dedicated professionals to work with the City. City of Sebastian Investment Advisory Services 115 Short -Term Investment Trading Desk Short Term Trading Desk ivt,_Y?aelr.areno, Portto Manager Nic ore Goshorn, Tracing Analyst Long -Term Investment Trading Desk Long Term Trading Desk •L egg Manjerov c, CFA, Portfoiio Manager P_* Noel, Trading Analyst Tab II. Knowledge and Experience Services provided by our team include, but are not limited to: Provide continuous investment advisory services for the investment portfolio, including monthly reports of transactions, customer service related to monthly reconciliations, year -end reconciliations, and other general information. Monitor portfolio for compliance with Investment Policy. Provide training and guidance to staff relating to reporting and intemal controls, as needed. Provide training and education to the City's staff on public funds investment strategy, as needed. The processes detailing both the long -term and short-term trading desks are below: Sh ort Term Portfolio Recommendation Advise City of crpcoming matuotie vi emz,i •scncs e a.V with rates of recornm iced irivesnrerts- •Based cn sector a -ll b hty per Inver *men: Palsy Long Term Portfolio Investnei rt_ Strategy monthly iy iswes:mer t committee meetirgs •Set ova ail .nvc ;tmebt allocation end oration goals •Based on sector availability per Investment Policy TakaseRamitort Trade Process Verify Compliance with Investrrer Po: icy •Obtai■ multlp e b ds (minimum 3) •Execute trade Virti best d Email it T Icke City Trade Process •Ve Co o.ten.e vi;th ir•vcstrnent Policy •Obi in rr utt!alebids (minimum =5') •Execute tradr.:. witcl nest bid F ax Trede Tickets to the City PFM works daily with our clients Finance Staff. We have dedicated managers for ALL assets of our clients. The tables below detail our process of active investment services that would be carried out on the City's behalf. City of Sebastian Investment Advisory Services 116 Short Term Desk Daily Procedures Tab H. Knowledge and Experience Long Term Desk Daily Procedures Mcinf or. rketll Utilize d hors analysis and sti to** I t one„ nvestrae f Ver kscomp. ?c anvestment pot and curt nt poii€oIjo str cture' securities in City of Sebastian Investment Advisory Services 117 PFM Ei113at'I6ed -cash CoimippOsi e" YTD 2009'' ,1435M, 1 Year' :3r 2 °Jb 2 Year' 4 2'2 3 Year' 4 Year' 445 a 5 Year' 3 9 fo,, Merrill Lynch 1 Year U.S. Treasury Note Index 0.64% 3.08% 4.24% 4.55% 4.14% 3.65% a PFM 1-3 Yeah 67t+ed lir C`cfi�3�OSita E' 2.:99°x: 0.04% 5 5731a 4.39% ,6x32% 5.83% ig 5.58% ,6.;97% 4.63% ;444% 4.07% Merrill Lynch 1 -3 Year U.S. Treasury Index2 PFM 1 -5Year Fixed incowne Cold ositc' 2:69% 6:84%. 8.99% 55% 15 0 v. 4.83% Merrill Lynch 1 -5 Year U.S. Treasury lndex2 1.77% 5.48% 6:93% 6.34% 4.99% 4.48% Florida Primer 0.83 1.40% n/a 3.60% n/a 3.48% 5•6 s FMIvT 0 -2 Year High Quality Bond Fund 2.95 n/a n/a n/a n/a n/a FMIvT High Quality 1 -3 Year Bond Funds 4.41 4.97% n/a 5.74% n/a 4.47% Merrill Lynch U.S. Corporate Government, 1 -5 Yrs2 4.45% 5.05% 5.37% 5.89% 4.68% 4.32% Merrill Lynch U.S. Corporate &Govemment, A rated and above 2.55% 4.76% 5.90% 6.16% 4.23% 4.78% Merrill Lynch 1 -3 Year U.S. Treasury Index2 -0.04% 4.39% 6.27% 5.58% 4.63% 4.07% Merrill Lynch 3 -5 Year U.S. Treasury Index2 -4.49% 7.18% 9.96% 7.71% 5.60% 5:20% Merrill Lynch 1 -10 Year U.S. Corporate Governmentlndex2 4.07% 4.72% 4.89% 5.93% 4.38% 4.45% 3 Month U.S. Treasury Bill Index2 0.20% 0.95% 2.90% 3.25% 3.43% 3:17% mailMais Tab II. Knowledge and Experience Strong Performance with Minimum Credit Risk PFM's team approach, our active management techniques, and our open lines of communication with our clients have produced strong investment retums. The table below details PFM's Enhanced Cash, 1 -3 Year and 1 -5 Year Composite returns for the last 5 years and compares performance against their respective benchmarks. 1. For Period Ending June 30, 2009 2. Source: Bloomberg 3. The YTD 2009 numbers are year -to -date periodic returns through June 30, 2009 annualized for compairson purposes. 4' The performance data shown represent past performance, which is not a guarantee of future results. investment returns and principal value will fluctuate. Data shown is prior to the deduction of investment advisory fees. GiPS compliant composite presentations are available upon request. 5 Florida Municipal Investment Trust Returns taken directly from http /www.11oridal eagueofcities .com /Finance.aspx ?CNID =6 8. Returns for the FMIvT 0-2 Year High Quality Bond Fund are only available beginning April 1, 2009. Prior to April 1, 2009 the funds assets were part of the FMIvT High Quality Government Fund according to the investment report found at http: /www.floridateagueofcities.com/ Assets/ Files/FMIvTJune2009Performance. pdf 7 Florida Prime Rates were obtained from https: /www.sbafla. com prime /portals/8/SummaryReports /Archive /200906 MonthlySummaryReport.pdf 3. This number was calculated by linking the returns for the 3 months ending March 31, 2009 and June 30, 2009 and annualizing the result. The three month retums for Florida Prime were were taken directly from the June 30, 2009 and March 31, 2009 Florida Prime Summary Reports which can be found at hops:/ /www.sbafla. com prime/ Home/ SummaryReports /tabid This number was calculated by linking first and second quarter FM1vT returns and annualizing the result. First and second quarter return were taken Give examples where the Firm has shown initiative in offering unsolicited advice or recommendations that were beneficial to the client Purchase and Sale of Securities which SAVED our clients' Money Here are some recent trades PFM has made for a client for which PFM has discretionary authority to initiate trades without seeking client approval first. Once an investment decision has been made, PFM's main goal is to City of Sebastian Investment Advisory Services f 18 Tab II. Knowledge and Experience obtain the best possible bid /offer price available for the particular security by soliciting bids /offers from at least three qualified financial institutions. On each trade we seek bids /offers from those firms that have previously demonstrated the best performance in that market segment. This table illustrates how PFM's trading process adds value to the client's portfolio. Date and Purchase Executed Worst Realized Offer Offer Savin•s April 1,2009 Sell $9.435mm par Goldman Sachs Fed Farm Credit Bond June 12,2009 Sell $4;4mm par RBS Securities Fannie Mae Global Notes June 12,2009 Sell $5.24mm par JP Morgan Securities US Treasury NIB July 28,2009 0.9186% 1.03% $10,046.07 0.7078% 0.90%0 $9,265.37 0.2265% 0.252% $402.55 0.43% 0.422% $681.12 Buy $4,880mm par JP Morgan Securities Cash Mgmt Blli August 17,2009 Sell $1.72mm par Morgan Stanley US Treasury NIB 1.6569% August 17,2009 Buy $3,7mm par Barclays Capital General Electric Corp Global Note 3.523% 3.254% $28,097.73 1.67% $598.02 Describe any innovative portfolio management techniques or programs that have been utilized by your Firm and indicate whether they may also be suitable for the City. PFM has worked with hundreds of clients in transitioning or starting a new fixed income investment program. From a new account relationship, we work closely with the City to identify risk/retum objectives in order to design an appropriate and prudent investment program. In general, the approach includes the following steps but we will customize the steps to meet the needs of the City: Scope of Services to be Provided to the City Investment Policy Review Current Portfolio Evaluation Initial review and discussion of City's investment Policy Review of permitted investments, new investment types, credit, sector, and maturity distributions, and:benchrnarking of funds, Review constraints and limitations Compare against, industry best practices Assess portfolio composition versus investment policy and benchmark Review consolidated listing of all securities held in custody in the name of the City along with the City's pro rata share of the holdings in all commingled vehicles Review credit, including all asset types held by the City Maturity and duration profile and suitability for a fund with the City's goals Sector analysis, including recommendations based on over /underweighiingof sectors in relation to current and anticipated economic conditions City of Sebastian Investment Advisory Services 119 Extent of Drrpiication or Crossover of Holdings Strategic Asset Allocation eter sE arrlin Tab II. Knowledge and Experience an ;any potential commingled funds an lj k t and iindu exposures du to fa f e cpectet gu defines =of r `andates, ap rep nce issues ers pi rtfolio and p4 t rtttat con cerns h if apt ate' nd determinati gal vVhether or not ange indicated tai r nagers' igrega a port t o n h a subjective �termine unique nsk rpfile above, and tf a City' risktolerance ltd ca *dietly increaeeT.allOcationaki increase 'longer its on ttfe portfolit's risk profil brad related on Active Portfolio Management Risk Limiting Techniques Once the Investment Portfolio structure is set, developed and implemented the Treasury Program for the City by completing the Ten Step process, the strategy will be to actively manage the portfolio using several risk limiting techniques. PFM's investment management approach is designed to enhance portfolio returns while carefully limiting and controlling risk. Within the general limits imposed on the portfolio, PFM will add value to the City's portfolio through primary strategies on the following table: Duration Management After factoring in a conservative posture which ensures that cash flow requirements are met, we will position a portfolio's duration to take advantage of interest rate trends: positioning with a shorter bias when rates are rising and longer when rates are falling. PFM will use a duration (or average maturity) band for the portfolios based on the type of funds, cash -flow model and benchmark chosen by the City. PFM adds value by re- balancing the portfolio to take advantage of market opportunities and in anticipation of interest rate movements. Duration limits are provided to and re- evaluated with the City's staff on a regular basis as a management and oversight tool. City of Sebastian Investment Advisory Services f 20 Sector Weighting Tab II. Knowledge and Experience Yield Curve Maturities are selected which represent the best relative value along the yield curve and the highest Placement potential for enhanced return by "rolling down the curve." We think there is a significant opportunity to enhance earnings with a strategy that focuses on the selection of securities based on relative value. In both initial security selection and ongoing management, opportunities are presented by the relative value of one portion of the yield curve vs. another and one sector compared with another. Sectors are selected which represent the best relative value based on PFM's sector outlook and historical credit spreads. Investments other than Treasuries are purchased when spreads are wide and avoided or swapped out of when spreads are narrow. PFM's portfolio managers and traders are assigned to specific market sectors in order to monitor products and opportunities and these responsibilities run across all portfolios. For example, one portfolio manager and two traders specialize in Federal agency discount notes and money market securities, another focuses on the intermediate -term Treasury/Agency sector and one focuses on the corporate sector. Issue Selection Individual issues are selected based on PFM's assessment of issuer quality and rating, credit trends, issue structure and liquidity. PFM regularly researches alternative high quality structures overlooked by the investment community at large, which offer significant yield enhancement without adding interest rate or credit risk. results of the investment portfolio analysis will allow the City to answer the following questions: Is the current investment strategy meeting the City's stated investment objectives? Is the return consistent with the level of risk in the portfolio? Is the City exposed to an inappropriate level of risk? How can the City increase the safety of the portfolio? How can the City increase the return of the portfolio? Does the portfolio provide adequate liquidity? How can portfolio retums be enhanced without increasing the amount of risk? Are there critical problems that require immediate attention? Is the asset allocation optimal in the current market? PFM specializes in managing short and intermediate -term fixed- income assets of public agencies, so we have tailored our research capabilities and resources to this area of the market. Our portfolio managers and analytical team have access to four major on -line market trading systems, Bloomberg, MarketAxess, Reuters, and TradeWeb. These systems provide active market quotes, including real -time GOVPX and TradeWeb U.S. Government securities pricing service. We also have access to news from Dow Jones, the Associated Press, Bloomberg News, and several specialized wire services. In addition, we speak daily to approximately 30 major government securities dealers and receive market information from them that assists us in identifying specific market opportunities. These external systems and data sources are supplemented by proprietary trading tools developed by PFM. For example, PFM's Duration Model analyzes the optimal portfolio duration for a given target duration and duration band based on current interest rates, yield curve and interest rate trends. City of Sebastian Investment Advisory Services 121 FM' Portfolio Analysis and Review PFM has developed tools to analyze specific aspects of client portfolios including sector composition, maturity structure and duration, and risks (credit, market, liquidity, and basis). We also look specifically at securities that tend to be most volatile and model their behavior under several possible interest rate scenarios. Additionally, we highlight any areas in which the portfolio may not be in compliance with the client's investment policy. The result of this analysis is a clearer picture of the portfolio's risks and expected performance, as well as a better understanding of the issues that require ongoing monitoring. The Spreads of Agencies to Treasuries: 3/27/2008 5/8/2008 100 7 0 70 a 60 1 5CI 1 40 30 20 10 11 1 1 :il I ff. 1 1 1 1. 1 1. 1. 1 1...., 1 16 1 1• 1. 1 1 1, 0 1 1 1 4 1 Iz a e a e z e Z z-. r' e_ �C r 00 a 3 0 rz- f f k u t a u u <<um r4 u <oQ u -c u u <u eu t. u u4 a 3 2'. I Za a s2' 4. i' 2 2 4 f `k Z1 Z S k k. 1 5`Ft E E i E RE�Z nA. i i W i u. Eu r. lz C fi 6,1.6 K E E 5z 6 [Line Top] Wide [Line Bottom] Narrow Current 0 0 o unpsunu lad pla!A Value on the T .Vote Curve 7/11 1/08 7,68 1.709 7109 3/10 7:10 (7/ Pricing off op. 0117 /23/67 1111 7. 1/12. 7/12 1.13 7/73 1.11 7/14 Maturity I/ 3 7 1;16 7.16 1/17 I °Use- Roor.Note. 06411647.mTNo/ o Tab II. Knowledge and Experience The PFM Cross Spread Analyzer assimilates and compares the yields on every available Treasury note, Treasury bill and Federal Agency issue available in the market. It quickly displays current relationships as well as recent trading ranges, making identification of investment or swap opportunities immediate from a vast amount of raw data. City of Sebastian Investment Advisory Services 122 (0 Tab 11. Knowledge and Experience The PFM Horizon Analysis Model calculates the expected total retum of a set of sample or actual portfolios under a variety of interest rate assumptions. It statistically analyzes the results and calculates the "expected return" value of different portfolio constructs. This model also allows us to perform scenario analyses and "what -if" testing on portfolios. This enables us to anticipate the performance of the portfolio or to test trade ideas and alternative portfolio constructs. Run Date; Hori¢on (Months): Horizon Date): Scenario Probability -10013P -50 BP 0 BP ,50 BP +100 BPS Flatter Super Bear 0.00% 15.00% 15.00% 20.00% 20.00% 10.00% 20.00 Expectation Value Std Der Portfolio Stets (at Settlement) Duration Convexity Dispersion 3 ;'IO '1'11 HORIZON 'FOTAI. RETURNS (annualized no a semi annual compounding basis) Barbell 3 mo/3yr Barbell 3mo /5yr Ladder 3mo/3yr Bullet 9.47% 6 -58% 3.74% 0.95% -1.80% 1.21% -3.24% 0.85 3.31% Bullet 1.643 0.047 0.000 9.10% 6.19% 3.34% 0.55% 2.17% 1.11% -2.17% 9.07% 6.11% 3.25% 0.47% -2.22 1.26% 0.13% 1.643 0.054 1.278 1.643 0.081 1.886 9.28% 6.38% 3.53% 0.74% -2.00% 1.10% -2.62% 0.78% 1.21% 2.98% 2.63% Barbell 3 mo/3vr Barbell 3mo/5yr 0.82% 3.12% Ladder 3mo/3vr 1.643 0.044 0.759 Ladder 3mo/5vr 9.26% 6.33% 3.48% 0.69% -2.03% 1.14% -1.71% 0.98% 2.92% Ladder 3mo /5yr 7.643 0,057 1.211 The PFM Sector Spread Model analyzes the market to identify which sectors offer the best relative value. This information is useful in selecting security sectors and maturities for purchase and for identifying potential restructuring opportunities. Each of these resources is a tool that allows PFM's portfolio managers to synthesize vast amounts of market data to add value for our clients. These tools help aid in the decision- making process from what sectors should be emphasized to which specific security should be purchased. PFM has a comprehensive compliance program which has the following tools in place to ensure PFM's compliance to the City's Investment Policy. City of Sebastian Investment Advisory Services 23 WIZIMILIE112 MUM 0% 40% a a 80% sue•• ®L a m MEM 40% ___e r 10% MEM IIIIMMIIIIIMIIIIMEINIII Portfolio Compliance Check Tools For trading compliance, PFM's trading desk use a Portfolio Compliance Check Tool at the time of the trade, and we monitor the compliance with a monthly asset allocation chart. The Portfolio Compliance Check Tool, which is illustrated below, incorporates several asset parameters that are specific to each client's investment portfolio as determined by the investment policy. The portfolio manager enters the proposed trade into the model to confirm the compliance and the model provides output of whether the proposed trade meets the asset allocation, maturity limit, and credit quality requirements established by the investment policy. Sairyle sent (enter keyword or for al) U.S. Treasuries Federal Agencies Corporates Mortgage Backed Municipal Money Market Fund Commercial Paper Certificates of Deposit Bankers Acceptances Repurchase Agreemen Lff S &P UT Moody's LJT Fitch Rating Policy S/T S &P S/T Moody's S/T Fitch Rating Policy Agencies Corporates Commercial Paper Corporates CP Max Sectors Port* Portfolio Limit Compliance Min Credit Ratings Portfolio Limit C Max Issuer Port` ortfolio Limit Compliance Portfolio based on traded market value excl accrued interest as of 1/24/06 Source FL INV MASTER CHART Identifier 68890001 CAMRA IP# 68890001 Tab II. Knowledge and Experience lance Exception Market Value Cash/Deposit Denominator Max Maturities Portfolio Limit Com Agency Issuer Port Portfolio Limit FNMA FHLMC FHLB FFCB 10% 38% 0% 0% 40% 40% 40% 40% 6;286,028 ".l 6,286,028 City of Sebastian Investment Advisory Services 24 Asset Allocation Chart To confirm ongoing investment policy compliance PFM will provide the City's Finance Staff with an asset allocation chart on a monthly basis (an example is provided below). The asset allocation chart presents the percent of the City's assets invested in permitted investment types (U.S. Treasuries, Federal Agencies, etc.) and further details the percent in the individual securities within individual issuers (FNMA, FHLB, etc.). This Asset Allocation chart will be provided monthly to the City to help ensure that all investments and allocation rules are complied with. If the asset allocation shows the City's investments to be over permitted allocation limits, PFM will take immediate action to correct the overage and notify the City, via email or phone, our recommended changes along with the asset allocation chart. Sample Client Security Type Overnight Investment Vehicle US Treasury Securities U5 Government Agency Federal Instrumentalities Certificates of Deposit Repurchase Agreements Commercial Paper Corporate Notes Mortgage- Backed Securities Money Market Mutual Funds Security Type U.S. Treasury Securities GNMA (US Govemment Agency) FHA (US Government Agency) Federal Farm Credit Bank (FFCB) Federal Home Loan Bank (FHLB) Fed. Nat, Mortgage Assoc. (FNMA) Fed. Home Loan Mort Corp. (FHLMC) Notes Policy 100% 100% 100% 1 80% 10% 20% 15% 15% 1 80% 20% Notes Policy Tab II. Knowledge and Experience Security Type United States Treasury Securities 9.6% Federal Instrumentalities 67.2% 100% CD —BankA 40% CD Bank B 40% Nordea Nor th America CP 40% FDIC Insured CP HSBC 40% FDIC Insure Corp Citigroup 40% Money Market Fund A 40% Money Market Fund B AssetAllocation as of March 31, 2009* Commercial Corporate Paper Notes 5.3% 3.4% 1 The combined total Federal Instrumentalities and Mortgage Backed Securities can not be more the 80 the combined total as of3/3109is 67.2% Ovemight Investment Vehicle 14.5% Notes Policy 10% 10% 5% 5% 5% 50% 50% City of Sebastian Investment Advisory Services 125 Tab III. Services to be Provided or Made Available Phases of Investment Program Development Step 1: Preliminary Review What PFM has done for the School Board: 1. Determine the needs to establish a solid treasury management program. Step 2: Interview the City Finance Staff 2. Determine specific treasury and investment management functions of the Chief Financial Officer, Treasurer and Accounting Staff. Step 3: Analyze the City's Current Investment Program and Conduct Portfolio Analysis 3. Provide a banking services analysis if necessary. 4. Provide a custody services analysis if necessary. Step 4: Prepare a Cash Flow Analysis 5. PFM will prepare a customized cash flow analysis which includes determining seasonality of fund balances to optimize portfolio structures. Step 5: Evaluate and Provide Recommendations Regarding the City's Investment Policy and Reporting 6. PFM will review and recommend changes to the City's investment policy. 7. Establishes asset allocation, maturity and liquidity requirements, reporting requirements and performance measurements. Step 6: Develop Investment Strategies 8. Develop an investment program based on the City's risk characteristics and information obtained in the previous five steps. Step 7: Verify the City's Adherence to GASB 31 and 40 9. PFM will verify the City's adherence to GASB 31 and 40. 10. PFM can assist in the preparation of the GASB 40 note for the City's Annual Financial Statements. Debbie Goodnight, CPA, PFM's Director of Accounting worked for the GASB Board to write both GASB 31 and 40. Ms. Goodnight served on the team which wrote the implementation guidebooks for GASB. Steven Alexander testified at the GASB Board regarding the merits of GASB 40 and helped shape its current format and requirements. =PFM Tab IIL Services to be Provided or Made Available Demonstrate an understanding of the City's needs and what the Firm would offer toward meeting those needs. The scope of service that the City is requesting includes but is not limited to: 1. Reviewing the City's investment policy and investment strategies 2. Reviewing current cash balances and investments and recommend appropriate strategies to eam competitive yields, while maximizing safety and liquidity; 3. Making recommendations on new investments and the appropriate timing; 4. Advising on measures which could be taken to improve the City's controls on risk, including diversification of securities, effectively monitoring the portfolio and establishing adequate internal controls; 5. Obtaining competitive bids and executing trades on selected purchases; 6. Attending and participating in regular meetings with the City's Investment Committee; 7. Providing reports on investment performance; 8. Providing other asset management services as requested. PFM's holistic approach to treasury and investment management, and our allocation to technical resources, results in our ability to meet the City's expected and unexpected needs. The chart below provides specific tasks that PFM is available to perform for the City for various Treasury and Investment Management functions. City of Sebastian Investment Advisory Services 127 Phases of investment Program Development Step 8: Develop Performance Benchmarks for the City's Investment Portfolio What PFM has done for the School Board: 11, The City's current benchmark, as stated in its investment policy statement, is the ninety day Treasury Bill. 12. PFM can establish an internal controls procedures manual for the City Step 9: Internal Controls Review or provide an analysis of the City's internal controls procedures. Enhancement 13. This establishes Delegation of Authority, separation of duties and responsibilities, as well as documenting operational procedures for cash review, investment selection and daily operations. 14. PFM will provide detailed quarterly reports and present then to the City. Step 10: Monitor investments 15. PFM staff will also be available to attend meetings with the City's with Quality Performance investment staff either in person or via conference call on an as Reports and Investment Training requested basis. 16. Provide investment training in accordance with Section 218.415 (14), Florida Statutes. Tab III. Services to be Provided or Made Available Discuss the Firm's understanding of the City's operating environment and include ideas on how the City should approach issues such as public concern about purchasing various mortgage agency securities or maintaining deposits in money market like funds. Unlike most investment advisors, our focus is the public sector. As a result, we understand the importance of protecting our clients not only from an actual principal loss, but also from a loss of the public trust. Our investment philosophy emphasizes adding value to the portfolio while avoiding credit risk and minimizing market risk. Our investment approach differs fundamentally from that of most managers whose client lists include private corporations and a few rigid investment policies. These managers often take significantly higher levels of credit risk by purchasing lower quality investments in an attempt to achieve higher retums. Typically, they take considerably higher levels of market risk by investing in securities with longer maturities, and, therefore, more market volatility than most public agencies are comfortable with. These approaches result in high exposure to risk and Tess liquidity. They also subject the portfolio to significant volatility of returns from year to year, and, in our opinion, are inappropriate for a public portfolio. PFM's investment approach is designed to enhance portfolio returns while carefully limiting and controlling risk. Conducting credit quality research PFM's credit committee conducts independent credit research to identify well diversified issuers. These issuers make up the approved credit list. We limit this list to appropriately capitalized issuers because our highest priority remains the safety and liquidity of your investments. Reviewing portfolio lists PFM's credit committee meets frequently to review the approved credit list. When market conditions warrant as in the case of the recent sub -prime mortgage and ensuing credit crisis we hold meetings on short notice. Robert Cheddar, CFA, the Chief Credit Analyst, primarily monitors the list. Marty Margolis, Chief Investment Officer, also plays a substantial role in qualifying new credits and monitoring existing credits. City of Sebastian Investment Advisory Services 28 Tab III. Services to be Provided or Made Available Maintaining high quality of investments We monitor credits on an ongoing basis, taking into account changing market conditions. For example: before the meltdown in the summer of 2007 in the asset backed commercial paper "ABCP market, we recommended the sale of all ABCP names well before other firms. We further recommended that our clients reduce or eliminate any indirect exposure to ABCP. As a result, no PFM managed portfolio retained asset backed commercial paper when the market froze. Concern regarding Agency Mortgage Securities The extensive media coverage of the sub -prime mortgage crisis (the "Crisis has caused many investors to be cautious of all mortgage securities including those issued by Federal Agencies. However, Federal Agency mortgage backed securities were not the cause of the Crisis, and are of significantly higher quality compared to the mortgage backed securities issues by some Non Federal Agencies that led up to the Crisis. Mortgages included in a Federal Agency Pool must meet conforming standards and undergo the most rigorous underwriting standards (i.e. the underlying mortgages are from Prime borrowers). Further, the securities issues by Federal Agencies are rated AAA and backed by the full faith and credit of the issuing Agency in addition to the implicit backing of the U.S. Government. Federal Agency securities are also structurally different from many of their private counterparts, because they do not have subordinate tranches that can lead to the overall downgrading of the security if the tranche is prepaid or experiences losses. Each Agency security is supported equally. Nevertheless, Agency mortgage securities are not invulnerable to delinquent borrowers or pre payment risk. Unlike Non- Agency mortgage securities, when a mortgage in an Agency pool becomes delinquent; the Agency pulls the mortgage out of the pool which will look identical to a pre payment for the investor. Competitive Bidding Once an investment decision has been made, PFM pursues an aggressive and intensive effort to obtain the best possible bid /offer price available for the particular security by soliciting bids /offers from at least three qualified financial institutions. We regularly deal with over 20 national broker /dealers. On each trade we solicit bids /offers from those firms that have previously demonstrated the best performance in that market segment. We may also implement a program to encourage participation by women and minority owned firms. List the services proposed to be provided or made available and provide comments as to how the Firm's expertise will be valuable to the City. Our special expertise in the public sector informs the way in which we manage funds. Among the significant elements: We have a strong focus on managing public funds and the investment approach we have successfully employed for nearly 30 years is focused on providing performance that exceeds appropriate benchmarks while avoiding risk and maintaining transparency. We bring to assignments detailed knowledge of bond structures and arbitrage rebate. This enables us to employ procedures which are designed to maximize earnings not subject to rebate and to minimize out of- pocket fees. In circumstances where yield restriction applies to a fund, we invest the fund in qualified tax exempt investments or otherwise actively restrict yields to comply with arbitrage restrictions. Our knowledge of investment agreements and escrows, and the fact that we provide investment advice on these passive investment strategies, provides a basis for us to evaluate the use of these products and compare them with active management. City of Sebastian Investment Advisory Services 129 Tab M. Services to be Provided or Made Available We have developed specialized cash flow forecasting models that we employ to identify appropriate investment duration targets and maturity structures for portfolios. These models have as inputs historic tax and other receipts along with expenditure detail and produce forecasts of core, liquidity and cushion balances that assist us in managing funds to provide liquidity and returns consistent with a client's risk profile. We have pioneered efforts to involve minority and women owned broker /dealers in the purchase and sale of securities for specific clients whose policies mandate this. Money Market Programs Our investment management roots can be traced back over 27 years, when we started what we believe to be the nation's first grass roots local government investment pool, the Pennsylvania Local Government Investment Trust "PLGIT Our cash management services, pioneered with PLGIT, have since expanded we currently manage 13 money market investment pools across the country, including a registered money market mutual fund the PFM Funds. Through the trust that we have developed with our clients, we managed $18 billion in these pools as of June 30, 2009. Individual Portfolios As of December 31 we managed nearly $18 billion in individual portfolios for our clients: the majority of these are total return accounts managed in the 1 -10 year area against high quality benchmarks with the objective to exceed the returns of these benchmarks and to do so with lower volatility. Each portfolio is individually managed we do not implement a cookie -cutter approach. Each client's assets are managed to meet the client's unique and specific needs. Additionally, from time to time we assist our clients with more pointed inquiries, and provide training on market and public policy development. Bond Proceeds We also manage bond proceeds for our clients, either in our money market pools, as separate accounts, or a combination of both. We manage these proceeds in a manner designed to comply with the arbitrage rebate rules, and also to optimize retainable interest earnings and minimize costs within the bounds permitted. PFM employs a staff that is solely dedicated to providing our clients with comprehensive arbitrage rebate services, including: arbitrage rebate calculations, spending exception compliance test, and the yield restriction of funds (if necessary). Structured Products Our Structured Products Group provides our clients with investment products that provide a passive investment approach to certain bond proceeds. We assist municipal issuers in the structuring and procurement of interest rate swaps, caps, and collars to help reduce financing costs. On the asset side of the balance sheet, the Structured Products Group assists issuers in the structuring and procurement of forward delivery agreements, guaranteed investment contracts, flexible repurchase agreements, and asset swaps. The Group is also responsible for structuring and re- structuring advanced refunding escrow portfolios. Cash Management/Banking Consulting PFM has helped clients evaluate the efficiency and effectiveness of their treasury operations. We have been engaged by numerous clients to evaluate their banking relationships, and make a determination on the competitiveness of the fee schedule and /or find ways to reduce costs and inefficiencies. Investment Consulting Through our PFM Advisors division, we provide broad -based investment consulting services to institutional clients, including County, City, Corporate, Taft Hartley, Hospital and Endowment funds. The combined assets of these clients are over $8 billion. These services are designed to offer public agencies an effective way to manage pension and endowment funds and also to manage trusts that are created to manage assets set aside to pay OPEB obligations. We manage assets in pension, endowment and similar funds and in trusts established to fund Other Post Employment Benefits using a multi -asset class strategy where we employ sub advisors to manage assets across a range of asset classes. PFM has discretion over the allocation of assets and selection of managers. City of Sebastian Investment Advisory Services 1 30 Tab IV. Litigation or Administrative Proceedings Tab N. Litigation or Administrative Proceedings Provide information on any litigation, administrative proceedings or disciplinary actions in which the Firm was a party in any matter related to its professional activities during the past five years, In September 2009, a Burlingame, California law firm filed on behalf of five Califomia counties or cities amended complaints "Burlingame Complaints in antitrust suits against 40 financial institutions and advisors which were consolidated in federal district court in New York. The initial class action complaints consolidated with these cases were dismissed against all moving defendants (36 out of 39 defendants) because they failed to state a violation of law. The plaintiffs were allowed to amend the complaints, but only the Burlingame Complaints for the first time named PFM Asset Management as a defendant. PFM intends to move for the dismissal of these amended complaints for lack of a viable cause of action. City of Sebastian Investment Advisory Services 132 Tab V. Resumes (1'70 Provide a brief synopsis of the personnel who will provide the services. Indicate their title, physical address where they are normally stationed and the role each one will play. Describe their formal education and their specific experience in rendering services of the nature sought by the City. As one of the nation's leading providers of independent financial and investment advisory services to public entities, the PFM Group has 31 offices and over 400 employees nationwide. PFM is ranked in the Top -25 Active Domestic Fixed Income Managers for 2008, as listed in the May 2009 issue of Pensions and Investments magazine. The City will primarily be served from our Orlando and Harrisburg offices. The Orlando office will be the City's primary contact and the Harrisburg office will provide trade execution and portfolio management. Please see the table below for information on PFM's Team that will be responsible for fulfilling the obligations of this RFQ. The following table provides brief resumes for key PFM professionals who will be responsible for the City's account. The table also provides the years of experience for each Team member with PFM and within the industry. PFM's primary contact, and the account manager for the City, will be Steven Alexander, CTP, CGFO, a Managing Director with over 23 years of experience in public finance, located in the Orlando office. Team Member /Title Years in Field/ with Role PFM Experience Steven Alexander, CTP, CGFO Managing Director ENGAGEMENT MANAGER! INVESTMENT ADVISOR Location: Orlando, FL Office Phone: (407) 648-2208 23/13 Manager Southeast Client Services Tab V. Resumes Provides specialized cash, investment and arbitrage management consulting services to public sector clients in Southeast. Responsible for the administration of PFM's investment advisory services and consulting in Southeast. Previously served as Treasury Manager for Orange County, Florida where he was responsible for management of the County's $800 million cash and investment portfolio. A securities and investment Fraud Examiner for the State of Florida. Authored Florida's Investment Policy Statute. Serves on the Association of Public Treasurer Investment Policy Certification Committee. Worked for the Governor's Emergency Financial Oversight Board for City of Miami. Serves as an instructor for the Florida GFOA's School of Governmental Finance. Completed a credit review of the SBA LGIP holdings and notified our clients of the risky SBA investment strategy which prevented our clients from being exposed to inaccessible funds within the SBA. Prior to joining PFM, Mr. Alexander served for ten years as the Treasury Manager for Orange County, Florida where he was responsible for the management of the County's cash and investment portfolio and banking and debt administration functions. During Mr. Alexander's tenure at Orange County he served In a variety of financial and administrative positions Including Deputy Director of Water and Wastewater Accounting. Mr. Alexander began his career as a Financial Examiner /Analyst for the Division of Securities in the Florida Comptroller's Office investigating securities and investment fraud. Mr. Alexander has a Bachelor of Business Administration Degree in Finance from Stetson University and a Bachelor of Science Degree in Accounting from Florida Southern College. Mr. Alexander is also a graduate of the Rollins College Financial Planner Program and is a Certified Treasury Professional (CTP) and a Certified Government Finance Officer (CGFO). He is a member of the Government Finance Officers Association, Florida School Finance Officers Association, the Association of Financial Professionals and Association of Public Treasurers of the United States and Canada. City of Sebastian investment Advisory Services 134 Loco PhonE INVESTM, NTA David Jang Senior Managing Consultant Location: Orlando, FL Office Phone: (407) 648 -2208 INVESTMENT ADVISOR 23/ Started May 11, 2009 Investment Advisor Tab V. Resumes d ibs Income st rnone m ar k et ut les.to insti tutional the development of for Trusca public NASD. Provides specialized cash, investment management advisory consulting services to public sector clients in the Southeast. Mr. Jang has 23 years of financial and investment experience. Graduated from the Bank of New York Credit Training Program in 1989 and has worked in all areas of treasury and cash management. Prior to joining PFM, Mr. Jang specialized in analyzing and marketing mortgage backed securities, Community Reinvestment Act eligible investment securities, agency bonds, municipal bonds, certificates of deposit, treasury securities, and commercial paper for his govemmental and institutional clients' investment portfolios. Established the institutional fixed income sales desk for Sovereign Securities in Florida. Mr. Jang was a Vice President of Institutional Sates for Multi Bank Securities with emphasis on the Florida government and community banking sectors. Mr. Jang earned a BS in Economics with concentrations in Finance and Marketing from the University of Pennsylvania Wharton Undergraduate Business School. He is FINRA Series 7, 24 and 63 licensed. City of Sebastian Investment Advisory Services 35 L Team Member/Title Years in Field/ with PFM Role Experience CHIEF INVESTMENTI COMPLIANCE OFFICER Debbie Goodnight, CPA, MBA Managing Director Location: Harrisburg, PA Office Phone: (717)232 -2723 ACCOUNTING MANAGER Kenneth Schiebel, CFA Managing Director LONG+TEAMINVES'TMENT STRATAGIST 19/10 25/12 thief` investment Officer Manager Accounting Senior Portfolio Manager Pioneer in developing pottlei operating fu nds and bond proceeds investment programs for public agencies, including statewide programs n PA, CA, VA and Nd, Prior to founding what is now PFM Inv estmdid Advisory Group in 1980, served as Special Assistant tc the Governor and Director of Program Development In. the Pennsylvania Governor's Office, where broadly responsible for budgetary, fiscal and debt management activities_ Has overseen work on all of PFM's investment consulting engagements. Mr. Margoiis has a Bachelor's Degree in History from the University of Pennsylvania, where he also completed course work for a Ph.D., and he was a Sodal Sciences Research Council Fellow at Harvard University_ He has given workshops and seminars on debt management and investment practice for local government officials and others. Responsible for accounting and administration for PFM's Investment Advisory Group. Oversees PFM compliance to AIMR, GASB, SEC and federal and state regulations. Prior to joining PFM, served for 9 years as Second Vice President and Assistant Controller of American General Corporation, where responsible for investment accounting operations for portfolios totaling $19 billion and for reducing the failed trade rate to one fourth the industry standard. Provides advice regarding accounting standards to PFM clients. Ms. Goodnight has served on the Advisory Board for Information Systems of America, Inc. providing investment industry direction of their software development. She is also a registered principal with National Association of Security Dealers. Ms, Goodnight holds a B.S. Degree in accounting from Robert Morris College, and a MBA with an emphasis on finance from St. Thomas University. She is a Certified Public Accountant licensed in both Pennsylvania and Texas and has taught management courses at the collegiate level. Serves as the primary portfolio manager for PFM's long -term accounts. Possesses extensive experience in portfolio management, investment analysis, assetltiability matching, and actuarial analysis. Prior to joining PFM, was Senior Portfolio Manager with Aetna Life Casualty, where managed $5 billion of operating funds; insurance reserves and pension assets- In thirteen years with Aetna, was also Manager of investment Research, Senior Investment Anelyst and Head of Cash. Planning. Tab V. Resumes Mr. Schiebel has a bachelor's degree in mathematics and computer science from the University of Michigan. He holds the. Chartered Financial Analyst designation, is a member of the CFA. institute (formerly known as the. Association for Investment Management and Research)' and is a General Securities;, Registered Representative holding NASD Series 7 and 63 registrations, He is also a guest lecturer In the University of Connecticut's MBA program, provided expert testimony to the GASES Deposit and Investment Risk Disclosure Task Force and has spoken at industry conferences, workshops and seminars. City of Sebastian investment Advisory Services 136 Team Member /Title Years in Field/ with Role Experience PFM Michael Varano Managing Director SHORT TERM INVESTMENT STRATAGIST 23/10 Senior Portfolio Manager Joan DlMarco, CPA 35/1 Co- Senior Arbitrage Rebate Manager Managing Director ARBITRAGE REBATE SPECIALIST Tab V. Resumes Serves as the primary portfolio manager for PFM's'short term and pooled investment accounts. Possesses extensive experience In portfolio management, Investment analysis, asset/liability matching, and actuarial analysis. Michael Varano, a Managing Director at Public Financial Management, Inc., has been employed by PFM and its predecessor organization, Financial Management. Services since March 1985 in active Investment Management: He is responsible for the trading and management of fixed Income portfolios totaling over $5 billion, Mr. Varano holds a Bachelor's Degree in Accounting Business Administration from Bloomsburg University. rt aging etirerting Joan serves as Co- Director of PFM's Arbitrage Rebate Compliance Practice. As the Co-Director, she oversees the arbitrage rebate services and post issuance tax compliance services provided to a nationally diverse client base of tax exempt issuers. Ms. DiMarco has over 35 years' experience in structured finance consulting to bond issuers, trustees, investment banking firms, law firms and government agencies, Her areas of specialization include arbitrage rebate calculations, IRS audit support, verification of calculations underlying advance and current refundings, restructuring of bond issues, forensic accounting for troubled issues, and verification of other types of cash slows supporting structured finance Issues. Joan participated on the financing team for the development of single family bonds, the first bonds subject to arbitrage rebate. Ms. DiMarco currently serves on the IRS Advisory Committee on Tax Exempt and Government Entities ('ACT") and is a co- author of the Committee report "After the Bonds are Issued: Then What? a primerr on post issuancecompliance. Ms. DiMarco is a Certified Public Accountant (recipient of the Alexander F. Loeb Gold Medal for having achieved the highest score on the Uniform Certified Public Accounting Examination in Pennsylvania and the Elijah Watt Sells national commendation) licensed in Pennsylvania, New Jersey, Illinois and Mississippi. She received a Bachelor of Science degree, Summa Cum Laude, in Business Administration from Drexel University. City of Sebastian Investment Advisory Services 137 Team Member;Title Years in Field/ with PFM Role Experience Michael Harris Managing Director Location: Harrisburg, PA Office Phone; (717) 232-2723 STRUCTURED PRODUCTS Gregg Manjerovlc, CFA Portfolio Manager Location;. Harrisburg, PA Office Phone: (717) 232 -2723 PRIMARY PORTFOLIO MANAGER Robert Cheddar, CFA Senior Portfolio Manager Location: Harrisburg, PA Office Phone; (717) 232 -2723 PORTFOLIO MANAGER Rebecca Dole Consultant Location: Orlando, FL Office Phone: (407) 648- 2208 INVES7iiwIENT ANALYST 18117 Manager Structured Products for Bond Proceeds 12/8 Portfolio Manager Credit Manager 6/2 Portfolio Manager 8/6 Investment Analyst Tab V. Resumes Manages the analytical and technical support group and structured investment products practice, providing advice and quantitative analysis regarding investment agreements and derivatives. Prior to joining PFM, worked In strategic planning and risk management fields. Mr. Harris is a graduate of the University of Pennsylvania with a dual degree in Economics and Political Science. In addition to p ortfoli o managem orP client accounts, Mr. Manjerovic is also responsible fo b ond p roceeds accounts of p articipant s in two of PFM's statewide- po oled investm pro P to )Pi PFM;; Mr. Manje rovic w as. Portfolio Man and Tra for N o rthern Trust G t at invest rlenis I t his ca pacity tie was directly responsi for man aging $50 M illi on of interm and t ong =term investments. Mr. Man rece his MS in Financi Markets and Trad from the Stuart Sc heol o fB usiness at t he I of Tectiriology'in Chi lltinols a a 8 w., In Fin ance fro University of'Illino at at Ch. H hc i l os the C ha rt ered Financial Analyst designation and' is a icagomember e of the CFA Institute. Mr. Cheddar is responsible for corporate bond and commercial paper research. With the combined effort of the portfolio management group Mr. Cheddar develops customized investment strategies to improve clients' interest earnings while limiting portfolio risk Prior to joining PFM, Mr. Cheddar was a Fixed Income Portfolio Manager for the Wilmington Trust Corp. In this capacity Mr. Cheddar was responsible for managing short term and intermediate term individual portfolios. His clients included corporations, municipalities and high net -worth individuals. Mr. Cheddar received his MBA from the Pennsylvania State University and a B.S. in Business Administration from Susquehanna University. Mr. Cheddar is a member of the Association for Investment Management and Research (AIMR) and The Philadelphia Financial Analysts. Mr. Cheddar also holds the Chartered Financial Analyst designation. Rebecca Dole is a Consultant in the Orlando, Florida office. Ms. Dole's present role primarily consists of providing technical and analytical support for clients based in the Southeast. Ms. Dole's responsibilities include preparing arbitrage rebate compliance reports, cash flow modeling, portfolio structuring and restructuring, swap analysis, writing investment performance summaries and reviewing inve policies and practices for compliance with state statutes: Ms; Dole graduated from the University:of Florida with a Bachelor f Arts degree in Bum' ess AdminIstratIbn. She holds Serie 6 ri d serie 63. iloesses from the Financial Industry Regula ory Authority (FINRA), City of Sebastian Investment Advisory Services 13 8 Team Member/Title Years in Field/ with Role PFM Experience Marty Hamrnond Consultant Location: Harrisburg, PA Office Phone: (717) 232-2723 INVESTMENT ANALYST 2/2 Investment Analyst ce. with distinction, 'tom the So. passed rite _first level of Andy Mussebnan Consult Location' tarrisburg PA Office Phone: (717} 232 2723 INVESTMENT ANALYST Districts/ Others Lower Florida Keys Hospital District South Broward Hospital District St. Johns River Water Management District Florida Housing Finance Corporation Florida Hospital Association Management Corporation Holmes County Hospital Corporation Memorial Employees Federal Credit Union School Districts Palm Beach County Schools Broward County Schools Columbia County Schools Manatee County Schools Seminole County Schools Brevard County Schools Lake County Schools Martin County Schools Volusia County Schools Marion County Schools 2/2 Investment Analyst Tab V. Resumes Marty Hammond joined PFM as a Consultant in 2006, Mr. Hammond provides technical, analytical, and marketing support for PFM's individual portfolio clients, Mr. Hammond's responsibilities include investment performance analysis, cash flow modeling, optimizing portfolio structuring and restructuring, providing economic summaries and research, and evaluating Investment policies and practices for compliance with state statutes: Mr. Hammond graduated in the top 10% of his class with a B.S. degree in Finance at the Pennsylvania State University, Capital College. He holds. Series 6 and 63 licenses with the FINRA. Andrew Mussefmarl „joined PFM irl P gust 2006;as a member of the'' Invetstment Acco tirrting tea and was pran1 ted In. July. of 200$ to a consu t, t tis current ou i1es Intl de portfatro yield and castr flovt� anal seoo 1t artct pztrlfour level- ane tirs., and prtfol .,evaluation anti reporti t?tlaer duties' n rude general +arketing, support also research Mr._ Musseinnan hold a B.S. it P ennsylvania tat,a,. a B S i ty H the CFA progra tat List other clients currently served by that individual and make an affirmative statement, as to how they will be readily available to serve the City's needs. Please find below PFM's client's in the Southeast. The City's proposed team with Steven Alexander, CTP, CGFO, Managing Director as the engagement manager, will be available to serve the City and meet all is investment and treasury management needs. Municipalities City of Palm Beach Gardens City of Winter Springs City of North Port City of Fort Lauderdale City of Hallandale Beach City of Daytona Beach City of Port Orange City of Melbourne City of Palm Bay City of Ocala City of Palm Coast City of Winter Garden City of Clermont City of West Palm Beach Village of Royal Palm Beach City of Key West Town of Longboat Key City of Titusville Village of Wellington City of South Pasadena Village of North Palm Beach City of Sebastian Investment Advisory Services 39 Counties Higher Education Marion County Florida Community College at Jacksonville St. Johns County Edison College Monroe County University of North Florida Hillsborough County Alachua County Authorities Brevard County Atlanta Fulton County Recreation Authority Citrus County Orlando- Orange County Expressway Authority Flagler County Pinellas County Health Facilities Authority Highlands County Bonita Springs Utilities, Inc. St. Lucie County Jacksonville Aviation Authority Nassau County Jacksonville Port Authority Orange County Housing Finance Authority More detailed resumes should be provided as Appendix B. More detailed resumes are provided in Tab VIl1. Tab V. Resumes City or Sebastian Investment Advisory Services 140 Tab VI. References (Since 2002) The City of Melbourne City of Clermont (Since 1999) Tab VL References Provide five (5) references, for the Firm's work in other Florida municipalities or counties. References must be for currently active clients that use the Firm for Investment Advisory services. A point of contact must be included along with a telephone number, Firm/ Entity Contact Name Address/ Phone /Email Services Provided City of Melbourne Ms. Michele Ennis 900 East Strawbridge Avenue Melbourne, FL 32901 CITY of CLERMQNT Um of%h Hdlg Finance Director Phone: (321) 953 -6248 Mr. Joseph Van Zile Director of Administrative Services Phone: (352) 394-4081 685 West Montrose Street Clermont, FL 34711 City of Titusville Mr. Robert Erickson 555 S. Washington Avenue (Since 2002) Finance Director Titusville, FL 32781 Phone: (321) 383-5812 1. Provide Investment Advisory/Management Services for long term and bond proceed portfolios 2. Investment Policy Development 3. Development of a cash flow analysis to determine core and short-term funds 4. Internal Controls Development 5. Accounting for Total Return Calculation for performance measurements 6. Arbitrage Rebate Calculation 1. Provide Investment Advisory /Management Services for long term and short term portfolios 2, Development of a cash flow analysis to determine core and short-term funds 3. Arbitrage Rebate Compliance Reporting 4. Establishment of Performance Benchmarks and Performance Reports 5. Developed a new investment policy 6. Active management of a long -term portfolio 7. Prepare analysis on banking services proposals and provide recommendations 8. Prepared an RFP and assisted the District in the selection of a custodian 1. Provides Investment Advisory /Management Services for long term portfolio 2. Development of a cash flow analysis to determine core and short-term funds 3. Arbitrage Rebate Compliance Reporting 4. Establishment of Performance Benchmarks and Performance Reports 5. Developed a new investment policy and Internal Controls Manual 6. Active management of a long -term portfolio 7. Prepare analysis on banking services proposals and provide recommendations 8. Prepared an RFP and assisted the City in the selection of a custodian 9. OPEB Review and Management of Trust Fund City of Sebastian Investment Advisory Services 142 Firm/ Entity Contact Nanie Address/ Phone /Email Services Provided Brevard County (Since 2002) City of Palm Bay (Since 2002) Mr. Mark Peterson Financial Accounting Supervisor Ms. Yvonne McDonald Finance Director 400 South Street Titusville, FL 332780 Phone (321) 637 -2002 120 Malabar Road SE Palm Bay, FL 32907 Phone: (321) 952 -3418 Tab VI. References 1. Provide Investment Advisory/Management Services for long term portfolio 2. Rewrite Investment Policy 3. Establish Performance Benchmarks 4. Provide active investment Management for Long Term County funds 5. Prepare Annual Investment Report 6. Update Cash Flows on an annual basis 7. Prepare analysis on general banking services proposals and provided recommendations 7. Assisted in the preparation on the County's GASB 31 and 40 statement on an annual basis 1. Provide Investment Advisory /Management Services for long term and bond proceed portfolios 2. Development of a cash flow analysis to determine core and short-term funds 3. Arbitrage Rebate Compliance Reporting 4. Establishment of Performance Benchmarks and Performance Reports 5. Developed a new Investment Policy and Internal Controls Manual 6. Assisted in preparation on the City's GASB 40 statement City of Sebastian Investment Advisory Services 43 Tab VII. Appendix A Pricing and Fees Tab VII, Appendix A Pricing and Fees Include a chart or table indicating the pricing and fees that will be offered to the City. Include fees based on the size of the portfolio and the hourly rates charged for other special work that may be billed. Quoted pricing and fees are not a component of the scoring criteria but they will be used in contract negotiations. The City anticipates that agreed upon prices will be firm for the length of the contract. PFM's investment management fee is based on the total assets under management. The following proposed fee schedule is an annual flat fee that shall remain fixed throughout the contract term unless changes are agreed upon by both entities in writing. There would be no portfolio management fees for funds invested in either the Florida SBA or money markets funds, including PFM's PFM Funds. PFM proposes to charge the City the following fee, in monthly installments, based on the following schedule. Please note that the fees are negotiable. Fees will be based on the number of accounts required and the asset allocation of those accounts. The fixed fee schedule for Assets under management is as follows: Portfolio Value Flat Fee Time Frame All Assets As part of PFM's standard investment management services, we would provide City with monthly and quarterly reports, asset allocation reports, cash flow analyses, Investment Policy review, portfolio investment sensitivity analyses and expenditure benchmark compliance reports, for the expenditure exception from arbitrage rebate, spending estimates in advance of the benchmark dates, and a periodic report on the arbitrage status of the bond proceeds invested in the PFM- managed portfolio, for no additional charge. PFM will provide a complete custodial service analysis to ensure that City is receiving the best services at a fair price. PFM's review process ensures transparency and that all fees and money market fund performances are disclosed to the City for their selection. PFM maintains an arm's length relationship with all custodians as required by Florida Statutes. The City's custodial services fees would not be covered and would be needed to implement the investment advisory services as described in this proposal. Other than the City's own custodial service fees, which the City will need to contract for (PFM can assist if needed), there are no additional expenses that the City is expected to pay for Investment advisory services that are not covered by the fees as outlined in the proposal for Investment Advisory Services. Optional Services offered: Consulting Services Hourly Rates Managing Directors $250 Senior Managing Consultants $225 Consultants $190 $7,500 First Year $5,000 Per Year for Remaining Term of Contract Structured Product Services Fees for any structured product engagements, such as investment agreements, escrow structuring and procurement, escrow restructuring, or swap structuring and procurement, would be negotiated and agreed to in writing prior to our undertaking any specific engagement, since the actual fee will depend on the complexity of the work. In our experience providing structured products services for clients, we have typically structured a fee not to exceed $33,000 for a single engagement. Please note that our fees for structuring and competitive bidding of investment agreements or escrow securities are within the limits of "qualified administrative costs' under all existing IRS regulations and guidelines. In City of Sebastian Investment Advisory Services I 45 Tab VII. Appendix A Pricing and Fees summary, the proposed IRS regulation states that reasonable fees will not exceed the lesser of 0.2% of the "computational base" (Le. aggregate deposits over the life of the agreement for investment agreements, or total cost of purchased securities for escrows) or $33,000 per bond proceeds fund, and further, that; fees will not exceed $93,000 per bond issue. Formal Arbitrage Rebate Computation If the City chooses, we would be available to assist the City in optioning a formal computation and legal opinion on the entire bond issue as on optional service. Optional Arbitrage Rebate services will be billed as follows: Base Fees Engagement Fee (one -time fee only) $250 Arbitrage Compliance Report Fee $1,500 Additional Fees (only applicable if the services are required) Spending Exception Compliance Analysis $750 Yield Restriction Compliance Analysis $750 Transferred Proceeds Calculation Allocation Analysis $500 Variable Rate Arbitrage Yield Calculation $750 Swap Termination Payment Allocation $750 Commingled Funds Cash Flow Allocation Analysis $500 Universal Cap Analysis $500 Additional Computation Periods in excess of 1 -year from prior calculation date 500 8038 -T Preparation $250 Refund Request Analysis Preparation $1,500 Preparation of Late Payment Explanation $500 Maximum 5 -year Period Arbitrage Compliance Report Fee' $5,500 There are no additional expenses that the City is expected to pay that are not covered by the fees as outlined in the contract. PFM has no soft dollar arrangements with brokers /dealers and we do not accept finder's fees nor earn commissions nor have any fee arrangements with mutual funds. We have no business affiliations, which would affect the investment performance of the City's accounts. City of Sebastian Investment Advisory Services 146 4` l8� Tab VIII. Appendix B Detailed Resumes Tab VIII. Detailed Resumes Include detailed resumes of the personnel who will provide the services, showing education, relevant experience, credentials, certifications, licenses, etc. Please find PFM's proposed team resumes on the following page. City of Sebastian Investment Advisory Services 148 Steven Alexander, CTP, CGFO Managing Director /Partner Steven Alexander is a Managing Director and Partner in PFM's Orlando office with 23 years of investment and financial management experience. Mr. Alexander is responsible for the administration of PFM Asset Management LLC investment advisory and treasury management services in the southeast of the country. Mr. Alexander currently serves as the Investment Advisor to a variety of local governments including: Cities, Counties, Authorities, Hospitals, Universities, Airports and School Districts. He also provides specialized investment, cash management, arbitrage rebate and OPEB consulting services to public sector clients across the country. Mr. Alexander is responsible for providing investment training across the nation and has presented at many conferences including: Government Finance Officers Association (GFOA), Florida, Georgia, and Tennessee GFOA's, Florida GFOA School of Government Finance, Florida School Finance Officers Association and Florida Association of School Business Officials. In addition, Mr. Alexander holds three investment training seminars each year, which allows over 300 finance officials to satisfy their 8 hour continuing education requirement. Over the years, Mr. Alexander has worked on a number of financial and investment distressed public entities in Florida, California, Texas and Washington DC including working for the State of Florida's Emergency Financial Oversight Board for the recovery of the City of Miami. Mr. Alexander authored Florida's Investment Policy Statute, served on the FGFOA's Local Govemment Investment Practices Task Force and the Florida Association of Court Clerk's Comptroller's Investment Policies Procedures Task Force. Currently, he serves on the Association of Public Treasurers of the United States and Canada Investment Policy Certification Committee reviewing investment policies from across the nation. Mr. Alexander has testified to the Governmental Accounting Standards Board "GASB regarding Statement 31 and 40 and assisted in the development of the implementation guide for the Board. Mr. Alexander is working closely with a number of Federal Agencies and Financial Institutions to understand the various aspects of the United States Treasury TARP (Troubled Assets Recovery Program) program and the program's effect on investments purchased by local governments. Prior to joining PFM, Mr. Alexander served for ten years as the Treasury Manager for Orange County, Florida where he was responsible for the management of the County's cash and investment portfolio and banking and debt administration functions. During Mr. Alexander's tenure at Orange County he served in a variety of financial and administrative positions including Deputy Director of Water and Wastewater Accounting, Mr. Alexander began his career as a Financial Examiner /Analyst for the Division of Securities in the Florida Comptroller's Office investigating securities and investment fraud. Mr. Alexander has a Bachelor of Business Administration Degree in Finance from Stetson University and a Bachelor of Science Degree in Accounting from Florida Southern College. Mr. Alexander is also a graduate of the Rollins College Financial Planner Program and is a Certified Treasury Professional (CTP) and a Certified Govemment Finance Officer (CGFO). He is a member of the Govemment Finance Officers Association, Florida School Finance Officers Association, the Association of Financial Professionals and Association of Public Treasurers of the United States and Canada. Mel Hamilton Senior Managing Consultant Mr. Hamilton joined PFM Asset Management LLC in May 2008 as a Senior Managing Consultant and is located in the Orlando Florida office. Mr. Hamilton's primary focus is to provide PFM's comprehensive investment advisory and portfolio management services to municipal and not for profit organizations in the Southeast. Mr. Hamilton has extensive experience in banking services, broker dealer services, money market fund analysis, fixed income portfolio strategy and analytics. Mr. Hamilton has 24 years of institutional investment management experience including asset allocation, banking services, custody, cash and short duration fixed income management, and proprietary and non proprietary equity strategies. Prior to joining PFM, Mr. Hamilton was with Trusco Capital Management where he directed the sales effort to not for profit institutions in Florida. Clients consisted of endowments, foundations, governmental units, healthcare, higher education institutions, investment consultants and self insurance funds. Prior to joining Trusco Capital Management, Mr. Hamilton established and managed the fixed income institutional sales division of SunTrust Banks, broker dealer subsidiary that provided cash management, money market securities, and taxable and tax exempt securities to institutional investors. Mr. Hamilton was instrumental is the development of the bank's automated sweep program, money market fund platform and portfolio analytic services for local governments. Mr. Hamilton earned a BS in Business Administration from the University of Virginia, McIntire School of Commerce. He is NASD Series 7 and 63 registered. �9L David Jang Senior Managing Consultant David Jang has 23 years of financial and investment experience, which includes the creation of the institutional fixed income sales desk for Sovereign Securities in Florida and was a Vice President of Institutional Sales for Multi -Bank Securities with emphasis on the Florida government and community banking sectors. Mr. Jang specialized in analyzing and marketing mortgage backed securities, Community Reinvestment Act eligible investment securities, agency bonds, municipal bonds, certificates of deposit, treasury securities, and commercial paper for his governmental and institutional clients' investment portfolios. He graduated from the Bank of New York Credit Training Program in 1989 and has worked in all areas of treasury and cash management. Mr. Jang's clients included central banks, mutual funds, pension funds and multinational corporations. His assignments have included Sales Manager, Funding Desk for Sumitomo Bank in New York City; Senior Sales Associate, International Money Markets for Bank of Montreal in New York City and Chicago; Assistant Vice President of Corporate Foreign Exchange for Old Kent Bank in Chicago, and Vice President Institutional Foreign Exchange for McDonald Investments in Cleveland. Mr. Jang is currently a member of the Florida Government Finance Officers' Association and has served on the FGFOA School of Governmental Finance Treasury subcommittee since 2003 and has spoken on several occasions at the FGFOA School of Governmental Finance. Mr. Jang earned a BS in Economics with concentrations in Finance and Marketing from the University of Pennsylvania Wharton Undergraduate Business School. He is FINRA Series 7, 24 and 63 licensed. Marty Margolis Managing Director Marty Margolis founded the investment management business now conducted by PFM in 1980 and has been the Managing Director responsible for its operation, growth and success since then. As manager of the investment advisory business, Mr. Margolis oversees the development and implementation of client investment policies; all credit research and the management of client portfolios. He is president and chief investment officer of PFM Asset Management LLC and a member of the board of directors of Public Financial Management, Inc. He oversees the development of investment policies for PFM clients, and implementation of portfolio strategies for PFM's separate and pooled accounts and credit review and research. He is also a leader in PFM's effort to build a pension advisory and management business and works closely with pension specialists in the PFM Advisors division. Mr. Margolis has been a leader in developing pooled investment programs for public agencies for more than a decade, and has been involved in the development of statewide programs in Pennsylvania, California, Virginia, New Jersey, Florida, and Texas, and specialized pooled programs for the government of the Virgin Islands and the Massachusetts Health and Educational Facilities Authority. Mr. Margolis has more than 20 years of experience providing both debt management and asset management advice. Under his management, PFM has developed new technologies and approaches to structuring and bidding refunding escrows, and programs to assist clients in structuring and pricing collateralized investment agreements, interest rate swaps and other financial products for debt service and debt service reserve funds. Prior to his work in the investment advisory field, Mr. Margolis was Special Assistant to the Governor and Director of Program Development in the Pennsylvania Govemor's Office where he had broad responsibility for budgetary, fiscal and debt management activities. Among his responsibilities were overseeing and coordinating the activities of the State's major off budget financing agencies, including the State Public School Building Authority, Higher Education Facilities Authority, and Housing Finance Agency. Mr. Margolis has a Bachelor's Degree in History from the University of Pennsylvania, where he also completed course work for a Ph.D., and he was a Social Sciences Research Council Fellow at Harvard University. He has given workshops and seminars on debt management and investment practice for local government officials and others. Debra Goodnight, CPA Managing Director Debra Goodnight has overall responsibility for accounting and administration for PFM's Asset Management Group including portfolio accounting, pool accounting, and client billing. In this role she supervises a staff that annually process over 20,000 security transactions with an average daily trade volume in excess of $500 million daily. She has direct responsibility for the operations of all State wide pools managed by PFM including the financial statement preparation and regulatory reporting requirements. These pools currently serve the needs of approximately 4,500 account holders. Ms. Goodnight has extensive experience in the operations of money market funds including the 2a -7 guidelines as defined by the Securities and Exchange Commission. Prior to joining PFM in 1990, Ms. Goodnight spent 9 years with American General Corporation. As Second Vice President and Assistant Controller, she was responsible for investment accounting operations for portfolios totaling approximately $19 billion. During her tenure, American General's investment accounting operations were able to reduce the failed trade rate to one fourth the industry standard, dramatically reduce income variances thereby eliminating lost income opportunities, and develop and install a mortgage backed processing system on a Local area network. Previous to joining the investment operations at American General she held positions in the financial reporting and compensation areas. Ms. Goodnight was also employed with the Controller's Department of H.J. Heinz for two years where her primary focus was on international consolidated financial reporting and the accounting firm of Coopers Lybrand for three years. Debra Goodnight served on the Municipal Securities Rulemaking Board "MSRB Committee that developed a qualification examination for municipal fund security limited principals. She has also participated on a task force for the Govemment Accounting Standards Board "GASB Deposit and Investment Risks Project. Ms. Goodnight holds a B.S. Degree in accounting from Robert Morris College, and a MBA with an emphasis on finance from St. Thomas University. She is a Certified Public Accountant licensed in both Pennsylvania and Texas and has taught management courses at the collegiate level. Ms. Goodnight has served on the Advisory Board for Information Systems of America, Inc. providing investment industry direction of their software development. She is also a registered principal with National Association of Security Dealers. C 9� Kenneth M. Schiebel, CFA Managing Director Mr. Schiebel is a Managing Director of PFM Asset Management LLC and Senior Portfolio Manager in PFM's investment advisory practice. He is a member of PFM's Investment Committee and Credit Committee as well as the firm's Technology Compensation Management Committees. Mr. Schiebel leads a team of portfolio managers, traders and research staff responsible for the management of $11 billion in separate account portfolios. He personally manages over $5 billion of assets in portfolios for cities, counties, insurance and self- insurance organizations, school districts, state and local government agencies, airports, public finance authorities, universities, foundations and trusts. These assets include operating funds, surplus funds, bond proceeds, self insurance reserves and retiree benefit funds. He also develops strategies, determines asset allocation and manages funds for separate accounts that are part of PFM's statewide investment pool programs in California, Virginia and Texas. He is also responsible for developing and executing trading strategies for PFM's Structured Products Group, particularly those for complex refunding escrows. He has over 24 years experience in portfolio management, investment analysis, asset/liability matching and developing innovative investment strategies for clients. He is an expert in risk management techniques, IRS arbitrage regulations and all facets of the fixed- income marketplace. Using his background in insurance and actuarial analysis, Mr. Schiebel developed PFM's specialty in managing insurance assets, establishing PFM as a leading manager of self insurance funds in the United States with over $1 billion under management. Prior to joining PFM in 1994, Mr. Schiebel spent 13 years at Aetna Life Casualty, the large multi -line insurance and financial services company. As Senior Portfolio Manager, he managed $5 billion of corporate operating funds, insurance reserves and pension fund assets for Aetna and its investment advisory clients. He was also responsible for managing Aetna's short-term debt issuance. Prior positions included Manager of Fixed- Income Investment Research, Senior Investment Analyst and Administrator of Aetna's Cash Planning Unit. Mr. Schiebel has a bachelor's degree in mathematics and computer science from the University of Michigan. He holds the Chartered Financial Analyst designation, is a member of the CFA Institute (formerly known as the Association for Investment Management and Research) and is a General Securities Registered Representative holding NASD Series 7 and 63 registrations. He is also a guest lecturer in the University of Connecticut's MBA program, provided expert testimony to the GASB Deposit and Investment Risk Disclosure Task Force and has spoken at industry conferences, workshops and seminars. zao Michael Varano Managing Director Michael Varano, a Managing Director, has been employed by PFM since March 1985. He is responsible for the trading and management of fixed income portfolios totaling over $11 billion. During his tenure at PFM, he has actively managed over 300 individual bond proceeds investment portfolios, most involving arbitrage rebate compliance. Mr. Varano currently manages eight statewide, commingled bond proceeds investment pools and five money market funds utilized for operating funds. Additionally, he manages self insurance and reserve funds. Mr. Varano has been the portfolio manager for the Pennsylvania Local Government Investment Trust (PLGIT) since April 1985. PLGIT, with over $52.2 billion in operating funds and $800 million in bond proceeds assets, has been cited by the Government Finance Officer's Association as an example of a well managed fund. Mr. Varano holds a Bachelor's Degree in Accounting Business Administration from Bloomsburg University. Michael W. Harris Managing Director Michael Harris joined PFM in 1989 and manages PFM's Structured Products Group. Mr. Harris has extensive experience developing and implementing innovative investment and asset/liability management strategies and is an expert in the structuring and procurement of financial products on both the asset and liability sides of municipal balance sheets. Mr. Harris has been responsible for the placement of over $25 billion of financial products since 2000. Mr. Harris has advised a number of municipalities and governmental authorities on the development of investment management strategies for grant funds, tax exempt bond proceeds and other operational and reserve funds. Mr. Harris also completed derivative and reinvestment projects for a number of large sophisticated clients including: Connecticut Housing Finance Authority, Harvard University, Orlando- Orange County Expressway Authority, City of San Diego and the City of Philadelphia Gas Works. Prior to joining PFM, Mr. Harris worked in the Banking and Financial Services Unit of the Strategic Management Group, Inc., where his research focused on risk management and portfolio management strategies for money center banks. Mr. Harris is a graduate of the University of Pennsylvania with a dual degree in Economics and Political Science. In the community, Mr. Harris is Finance Chairman for the Board of Directors for Capital Region Health System and of the Advisory Board for the Harrisburg High School/Florida A &M "SBI" Prep Program. zoo David Reeser Managing Director Mr. Reeser joined PFM in 1996. Mr. Reeser's primary responsibilities Include directing and managing PFM's Arbitrage Rebate Practice, organizing and managing the training provided to the consultants that work for PFM Asset Management LLC, and providing investment advisory services to select clients. As the Managing Director in charge of PFM's Arbitrage Compliance Practice, Mr. Reeser is responsible for methodology and approach, quality control, model development, staff training and development, and the processes and procedures PFM undertakes to provide arbitrage rebate compliance services. Mr. Reeser is also responsible for managing a significant number of PFM's arbitrage rebate clients, business development, and for the arbitrage rebate compliance training PFM provides to various local government organizations. Mr. Reeser has provided issuers with comprehensive arbitrage rebate compliance services and solutions to their unique and complex circumstances. Over the past twelve years, Mr. Reeser has personally prepared in excess of 2,000 arbitrage rebate calculations for states, counties, municipalities, school districts, 501(c)(3) organizations, industrial development authorities, and other tax exempt organizations. The Bonds that Mr. Reeser has analyzed include general obligation bonds, revenue bonds (in various forms), "new money bonds refunding bonds (both current and advance), multi- purpose bonds, variable rate bonds, "synthetic" fixed -rate bonds, "super integrated" bonds, revenue- anticipation notes, bond anticipation notes, commercial paper programs, and tax- exempt leases. Mr. Reeser has developed customized models, and implemented approaches and methodologies that have enabled issuers to: Properly account for transferred proceeds, Analyze the arbitrage rebate impact associated with altemative expenditure allocation approaches, Determine compliance with the universal cap and the impact of universal cap de- allocations, Analyze the arbitrage rebate impact associated with alternative investment valuation approaches, Properly evaluate compliance with the yield restriction requirements, Analyze compliance with the spending exceptions and the bona fide debt service fund exception, Optimize arbitrage rebate liabilities on variable -rate bond issues, Monitor compliance with yield restriction for synthetic -fixed rate advance refunding bonds, Quantify the arbitrage rebate impact associated with the termination of an integrated interest rate swap, and Calculate the interest related to late rebate payments. Mr. Reeser also has extensive experience assisting issuers that are late in making their rebate payments comply with the arbitrage rebate requirements. Mr. Reeser is a graduate of Swarthmore College where he eamed a Bachelor of Arts degree in Economics. He has also earned a Masters in Business Administration from Penn State University. He holds Series 6 and Series 63 licenses from the Financial Industry Regulatory Authority (FINRA), Girard Miller, CFA Senior Managing Consultant Girard is PFM's senior strategist working in the field of OPEB strategies, related retirement plans and public finance. He is known nationally as an authority on the investment of public funds and the design of retirement plans. His column, Girard Miller's Public Benefits Beat, appears regularly in Governing magazine and its online management letter. Most recently Girard was a voting member of the Governmental Accounting Standards Board during its deliberations on GASB 53 (Derivatives), Concepts Statement 2 (Performance Reporting), public- private partnerships and pension accounting. Previously, he was the president of the Janus mutual funds and was Chief Operating Officer of Janus Capital Group, Inc., a global investment company with $170 billion of assets under management. Prior to that, he was the president and chief executive officer of the ICMA Retirement Corporation for ten years after heading Fidelity Investments' public funds group. Girard's career began in the public sector. After working for ten years in local governments in New Jersey and Michigan, he joined the professional staff of the Government Finance Officers Association (GFOA) in 1981. He authored 12 publications for GFOA and founded its Public Investor newsletter for investment professionals. Girard recently volunteered to help GFOA publish a new and updated 2008 edition of his Elected Official's Guide to Government Finance. Girard earned a B.A. degree from the University of Washington (Seattle); he is a master of public administration graduate of the Maxwell School of Public Affairs of Syracuse University; and he holds a master's degree in economics from Wayne State University in Detroit. He is a Chartered Financial Analyst (CFA) and a fellow of the National Academy of Public Administration. 20E Jim Link, RPA Managing Director Jim Link joined PFM Advisors as a Senior Managing Consultant in 2006. Mr. Link has more than 19 years of experience in the institutional retirement plan, asset management and institutional trust and custody markets. In addition to his general consulting responsibilities, Mr. Link is primarily responsible for Other Post Employment Benefits (OPEB) and deferred compensation consulting businesses at PFM. Prior to joining PFM, Mr. Link was the National Sales Manager for Wachovia Bank, N.A. in their Institutional Trust division and in their Retirement Services division where he led sales efforts and sales teams selling a variety of custody, trust, securities clearance and settlement, agent securities lending services and retirement plan products to mid- to large -size corporations, state, local, and quasi government entities, and to multi lateral entities (e.g. the UN, World Bank). Prior to his time at Wachovia, Mr. Link has been a leader in retirement services groups for asset management firms including Manning Napier Advisors where he led the defined contribution and institutional trust groups and T. Rowe Price where he had responsibility for growing and leading the 401(k) Century Plan program. He has also been employed with insurance companies including Prudential where he sold insurance and investment products and VALIC where he was responsible for program 'integration between the systems and customer service departments. Mr. Link's functional experience includes sales and client relationship management, operations and transaction processing, technology assessment and implementation, process reengineering, and vendor negotiation and management. Apart from his work experience, Mr. Link has lectured at the Fels Institute of Government at the University of Pennsylvania. His work on OPEB planning has been published in industry publications. In addition, he has spoken at numerous conferences around the country regarding OPEB planning and management. Mr. Link is a graduate of Texas A &M University in College Station, Texas where he earned his Bachelor of Science Degree in Economics with a minor in Management. =PPM' Joan DiMarco, CPA Managing Director Joan serves as Co-Director of PFM's Arbitrage. Rebate Compliance Practice. As the Co- Director, she oversees the arbitrage rebate services and post issuance tax compliance services provided to a nationally diverse client base of tax- exempt issuers. Ms. DiMarco has over 35 years' experience in structured finance consulting to bond issuers, trustees, investment banking firms, law firms and government agencies. Her areas of specialization include arbitrage rebate calculations, IRS audit support, verification of calculations underlying advance and current refundings, restructuring of bond issues, forensic accounting for troubled issues, and verification of other types of cash slows supporting structured finance issues. Joan participated on the financing team for the development of single family bonds, the first bonds subject to arbitrage rebate. Joan has served as a speaker, panel participant and /or trainer in the field of arbitrage rebate for the Government Finance Officers Association (GFOA), the National Association of Bond Lawyers "NABL JPMorgan, among others. She wrote the GFOA training course for arbitrage rebate, which she has taught on numerous occasions. Ms. DiMarco currently serves on the IRS Advisory Committee on Tax Exempt and Government Entities "ACT') and is a co- author of the Committee report "After the Bonds are Issued: Then What?", a primer on post issuance compliance. Joan DiMarco joined PFM in April 2009 as a result of the purchase by PFM of BondResource Partners, LP. In 2002 Ms. DiMarco was a founding Partner of BondResource, a WBE certified boutique firm specializing in arbitrage, post issuance compliance and verification agent services. Ms DiMarco was Partner -in- Charge of the Municipal Bond Services Group of Arthur Andersen from 1990 to 2002. From 1973 to 1990, she was a Partner at Laventhol Horwath. At Laventhol, she was part of the Management Consulting Group where her practice emphasized municipal bonds. Ms. DiMarco is a Certified Public Accountant (recipient of the Alexander F. Loeb Gold Medal for having achieved the highest score on the Uniform Certified Public Accounting Examination in Pennsylvania and the Elijah Watt Sells national commendation) licensed in Pennsylvania, New Jersey, Illinois and Mississippi. She received a Bachelor of Science degree, Summa Cum Laude, in Business Administration from Drexel University. Gregg Manjerovic Senior Portfolio Manager Gregg Manjerovic joined Public Financial Management in the summer of 2001 as a Portfolio Manager in the Investment Advisory Group. Mr. Manjerovic is responsible for management of over $4 Billion in separate account portfolios. These accounts are comprised of the assets of cities, counties, insurance and self insurance organizations, school districts, state and focal government agencies, airports, public finance authorities, universities, foundations, and trusts. He manages account strategies, according to specific client requirements, on a total return, bond proceeds, or cash management basis. He also is the head of PFMAM's tax exempt municipal portfolio management effort managing portfolios of yield restricted investments derived from bond financings such as tobacco revenue securitization proceeds. He is a member of PFMAM's Investment Committee and Credit Committee. Prior to joining PFMAM, Mr. Manjerovic was Portfolio Manager and Trader for Northern Trust Global Investments. In this capacity he was directly responsible for managing $500 Million of intermediate and long -term investments. Mr. Manjerovic was further responsible for corporate trading for Mutual Funds, Pensions, Foundations, and Endowments. In addition, Mr. Manjerovic was responsible for fixed income portfolio strategy and trading for Northern Trust Wealth Management Investment portfolios. Before becoming a Portfolio Manager, Mr. Manjerovic was a portfolio accountant responsible for valuation of Northern Trust's Mutual Funds. Mr. Manjerovic received his MS in Financial Markets and Trading from the Stuart School of Business at the Illinois Institute of Technology in Chicago, Illinois and a B.S. in Finance from University of Illinois at Chicago. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute. Robert Cheddar, CFA Senior Portfolio Manager Robert Cheddar joined Public Financial Management, Inc. in 2004. As a Senior Portfolio Manager, Mr.Cheddar manages PFM client accounts in states across the country including Califomia, Ohio, Iowa and Tennessee. Mr. Cheddar is also responsible for corporate bond and commercial paper research. With the combined effort of the portfolio management group Mr. Cheddar develops customized investment strategies to improve clients' interest earnings while limiting portfolio risk. Prior to joining PFM, Mr. Cheddar was a Fixed Income Portfolio Manager for the Wilmington Trust Corp. In this capacity Mr. Cheddar was responsible for managing short term and intermediate term individual portfolos. His clients included corporations, municipalities and high net -worth individuals. Mr. Cheddar received his MBA from the Pennsylvania State University and a B.S. in Business Administration from Susquehanna University. Mr. Cheddar is a member of the Association for Investment Management and Research (AIMR) and The Philadelphia Financial Analysts. Mr. Cheddar also holds the Chartered Financial Analyst designation. Mark Yasenchak Consultant Mark Yasenchak is a consultant with the PFM Advisors' group, the investment consulting division of PFM Asset Management LLC. His responsibilities include numerous project management roles, oversight of performance measurement and client reporting, as well as various technology initiatives. Mr. Yasenchak brings over 7 years of investment industry experience to PFM. Mr. Yasenchak joined PFM in 2003 as a member of PFM Asset Management's investment accounting team, where he oversaw investment performance measurement for over 250 separately managed investment portfolios. His duties also included lead accountant responsibilities for the Pennsylvania Local Government Investment Trust (PLGIT), PFM's oldest local government investment pool. Prior to PFM, Mr. Yasenchak was an investment accountant with PFPC, Inc., one of the nation's leading providers of technology and business services for the global investment industry. Mr. Yasenchak received a B.S. degree in Finance with a minor in Economics from West Chester University in southeastern Pennsylvania and is currently a CFA Level III candidate. Zl� VFM AC Rebecca Dole Consultant Rebecca Dole is a Consultant in the Orlando, Florida office. Ms. Dole's present role primarily consists of providing technical and analytical support for clients based in the Southeast. Ms. Dole's responsibilities include preparing arbitrage rebate compliance reports, cash flow modeling, portfolio structuring and restructuring, swap analysis, writing investment performance summaries and reviewing investment policies and practices for compliance with state statutes. Ms. Dole graduated from the University of Florida with a Bachelor of Arts degree in Business Administration. She holds Series 6 and Series 63 licenses from the Financial Industry Regulatory Authority (FINRA). Marty Hammond Consultant Marty Hammond joined PFMAM as a Consultant in 2006. Mr. Hammond provides technical, analytical, and marketing support for PFMAM's individual portfolio clients. Mr. Hammond's responsibilities include investment performance analysis, cash flow modeling, optimizing portfolio structuring and restructuring, providing economic summaries and research, and evaluating investment policies and practices for compliance with state statutes. Mr. Hammond also performs credit research in the corporate banking sector for PFMAM's Credit Committee Mr. Hammond graduated in the top 10% of his class with a B.S. degree in Finance at the Pennsylvania State University, Capital College. He holds Series 6 and 63 licenses with the FINRA. 222, Andrew Musselman Consultant Andrew Musselman joined PFM in August 2006 as a member of the Investment Accounting team, and was promoted in July of 2008 to a Consultant. His current duties include portfolio yield and cash flow analyses, security and portfolio level analytics, and portfolio evaluation and reporting. Other duties include general marketing support and research. Mr. Musselman holds a B.S. in Finance, with distinction, from the Pennsylvania State University. He also passed the first level of the CFA program. zzy Subject: Approval to Contract with First Southwest Company for Financial Advisory Services Ap, v: r Submittal by: City Manager Agenda No. /0 0 2.. Dep rtme A 'gin• As inistrative Services d r City Attorney: City Clerk: 11 Date Submitted: January 6, 2010 For Agenda of: January 13, 2010 e01 ".'r Exhibits: Minutes from Meeting of Selection Committee Committee Summary Evaluation Scoring RFQ Submittal First Southwest OW Of NOME OF PELICAN ISLAND City Council Agenda Item SUMMARY The City had a relationship with Mr. Jeff Larson since November 2002 when he worked for Kirkpatrick Pettis. As the City's Financial Advisor, Mr. Larson worked to analyze financing alternatives, explore various financing methods and advise as to the structuring and marketing of long -term debt obligations. He represented the City for the issuance of the Series 2003 Stormwater and the Series 2003 and 2003A DST Bonds. This included assistance with the Credit Rating Agencies that performed occasional reviews of the City's credit market ratings and an ongoing review of potential refinancing opportunities. The original agreement provided for five years, with automatic renewal for successive three one -year terms. Although we could have renewed until November 2010, Staff felt that this is an appropriate time to do a Request for Qualifications (RFQ) and consider other available firms that may provide better service. Mr. Larson was advised that his response would be considered but he elected not to reply. The City received two responses to the RFQ. Both are very reputable firms but the Evaluation Committee ranked First Southwest Company first and PFM Group second. No fees are payable under the agreement unless a price proposal is approved in advance. RECOMMENDED ACTION Move to approve Staff's ranking and authorize Staff to negotiate and execute an agreement for Financial Advisory Services with First Southwest Company. City of Sebastian Indian River County, Florida Investment Advisory and Financial Advisory Services Request for Qualifications Meeting of Selection Committee December 10, 2009 Minutes Prepared by Ken Killgore Selection Committee Members: Al Minner, City Manager Debbie Krueger, Director of Administrative Services Ken Killgore, Finance Director The Selection Committee met in the City Manager's office at 9:00 a.m. on Thursday, December 10, 2009. The meeting was scheduled in advance and posted on the City Hall meeting notice bulletin board on Monday, December 7, 2009. The purpose of the meeting was to review the Request for Qualifications submittals, discuss which firms would be interviewed and determine when such interviews would be held. The Selection Committee began by generally discussing the services to be expected from the two types of advisory services. Whereas the investment advisor would assist and make recommendations regarding the City's investments, the financial advisor would assist and make recommendations regarding City bond issues and other long- tei.uu debt issuance. Ken Killgore offered the possibility of operating without an investment advisor due to the possibility that in the current market place, the fees may exceed the probable incremental returns that could result from having the guidance of a professional. After extensive discussion, it was determined that the best course of action would be to proceed with hiring a professional. The professional would be expected to offer comments on our policies and procedures, as well as updates about significant issues and developments in the investment market and would share information about strategies being used with other clients. With the department's existing workload, it would be difficult to actively manage the City's investments and stay abreast of everything that should be considered. Discussion continued about each Committee Member's personal knowledge about the individuals and firms. It was generally felt that we had a very good response. The Selection Committee agreed that the best three firms for investment advisory services in the order to be recommended were PFM Asset Management LLC, Davidson Fixed Income Management and MBIA Asset Management. (Investment advisory services are currently provided by Davidson Fixed Income Management.) For financial advisory services, it was agreed that the Committee would recommend First Southwest, with the second choice being Public Financial Management. Since Ken Killgore and Debbie Krueger had personal knowledge of a number of the individuals associated with the firms and were familiar with the significant presence and experience most of the firms have in the area of providing services to local governments, it was determined that interviews would not be beneficial. The meeting ended at 10:15 a.m. w v uJ Q o IR 0 N O 6. Uj Z J Q Z 7 cc m z z W Er_ I X Ill O O u. W u_ 0 0 0 0 0 0 0 0 ,O M O O c c v CD 0 0 O 0 0 10 V NY CO c W M 10 10 10 )C) 11) 10 r r r ID c r N N CO N 117 O 0 0 CO CO M m 0) O C) CO M 0) O 0 O HOME OE WELCOME TO FRIENDLY PEOPLE SIX OLD GROUCHES Qualifications to Provide Financial Advisory Services HOME OF PELICAN SAND City of Sebastian, Florida November 13, 2009 FirstSouthwest fi at EDWARD D. STULL Managing Director 20 North Grange Avenue Suite 1209 Orlando, Florida 32801 407.426.9611 Phone 407.426.7835 Fax Ed.Stullkfirstsvv.com (zz9 Appendices A. Pricing and Fees B. Detailed Resumes First5outhwest TABLE OF CONTENTS aIY Of HOME OF PELICAN ISLAND Qualifications to Provide Financial Advisory Services Description of Firm 1 Knowledge and Experience 5 Services to be Provided or Made Available 13 Litigation or Administrative Proceedings 16 Resumes 17 References. 18 A PlainsCapital Company FirstSouthwest A PlainsCapital Company. 20 North Orange Avenue, Suite 1209 Orlando, Florida 32801 407.426.9611 Phone 407.426.7 835 Fax November 12, 2009 Mr. Ken Killgore City of Sebastian, Florida City Hall 1225 Main Street Sebastian, Florida 32958 -4165 Edward D. Stull, Jr. Managing Director Ed. Stull @firstsw.com Dear Mr. Killgore: On behalf of FirstSouthwest Company "FirstSouthwest we appreciate the opportunity to present our financial advisory qualifications to the City of Sebastian (the "City FirstSouthwest is one of the country's top ranked financial advisory and investment banking firms with a proven record of leadership, excellence, and service to municipalities across the nation. FirstSouthwest feels strongly that now more than ever before, the City's selection of a financial advisor is crucial to successful, long -term financial management. WHY CHOOSE FIRSTSOUTHWEST? Considering today's market environment, there is a clear need to select a financial advisory firm that will assist the City in meeting its financial goals. FirstSouthwest provides the best value in a financial advisory firm for the following reasons: Experience FirstSouthwest is one of the highest ranked financial advisory firms in the nation. Most importantly, FirstSouthwest is a leader in the specific areas of financing relevant to the City; general obligation, water and sewer, and community redevelopment projects. According to MuniAnalytics, for the past five years FirstSouthwest is ranked: Number -one nationwide among financial advisory firms for overall number of issues. Number one nationwide for par amount and number of issues to cities. Strong Local Team We have maintained an office in the State of Florida since 1987 and currently have offices in Orlando and Aventura, employing six licensed bankers and three other full -time personnel. Members of FirstSouthwest's senior team for the City have an average of more than 23 years of experience each in the securities industry and will be available in- person for all required meetings and presentations. As a registered broker dealer, FirstSouthwest's bankers and analysts are held to the highest level of professional standards and are required to eam and maintain the proper securities licenses. Most importantly, our Florida team of professionals has recent experience in advising Florida issuers on "doing more with less" in the current economic environment through innovative debt structuring and strategic planning. Florida Experience We have provided services for numerous Florida issuers such as the cities of Palm Bay and Cocoa Beach, Indian River and Martin counties; and the cities of Miami, Sanford, Mount Dora, Edgewater, Lake Mary, Orlando, Palm Coast, Crystal River, Oakland Park, Pinellas Park, Port St. Lucie, Panama City, Inverness, and Fernandina Beach; the Counties of Charlotte, Citrus, DeSoto, Lake, Sarasota, Seminole, Taylor, Escambia, Bay, and Okaloosa; the Orlando- Orange County Expressway Authority; the Peace River /Manasota Regional Water Supply Authority; the Tampa Hillsborough Expressway Authority; and the Florida Gas Utility. Proactive Client Service As one of the leading financial advisors in the country, FirstSouthwest takes great pride in proactively recommending money saving ideas to our clients. In addition to a database that can monitor potential savings from refundings based upon current market conditions, FirstSouthwest is on the cutting edge of understanding the nuances of the latest market innovations, including Public Private Partnerships and new financing programs such as Build America Bonds and can provide the information for the benefit of our clients. First Hand Market Information Unlike other larger "independent" financial advisors, we provide our Florida clients with first hand market information directly from our own underwriting and trading desk. On average, our underwriting and trading desk sees more than 20 deals per week. Firms that are not broker /dealers must get pricing information from underwriters or other indirect means. We feel that this greatly affects the so- called independence of these firms. More importantly, access to direct, accurate market information is imperative in today's market environment and is especially important at the time of pricing when the consequences of using second -hand information can be very costly to an issuer. Our local team can cite numerous examples where our desk has provided valuable information and recommendations that ultimately led to the lowest possible cost of borrowing for the issuer. Regulated Financial Advisor FirstSouthwest believes that when an issuer is selecting a financial advisor, accountability and transparency is paramount. As a broker /dealer, FirstSouthwest is subject to the rules and regulations of various governmental bodies such as the U.S. Securities and Exchange Commission "SEC and the Financial Industry Regulatory Authority "FINRA among others, and we adhere to the rules of the Municipal Securities Rule Making Board "MSRB FirstSouthwest is also a registered securities dealer under the SEC Act of 1934 and functions as a member of the Depository Trust Company and the National Clearing Corporation. Such heightened level of accountability and the transparency behind all of our advice and actions distinguish us from most other firms that propose to provide financial advisory services without being subject to such oversight and the capital requirements that go along with such regulation. As a broker /dealer, we maintain more than $66 million in equity capital. In order to avoid the appearance of any potential conflicts, not only will we not serve as an underwriter on the sale of the City's bonds for which we have acted as Financial Advisor, FirstSouthwest will not serve as an underwriter on any of the City's bonds for a one year period after the expiration or termination of our contract. Commitment to the City Finally, we are committed to being the financial advisory firm that brings the most value to the City by relentlessly working to achieve the lowest possible costs of borrowing. Most importantly, we are always accessible and will produce in a timely and efficient manner that Is within the City's budget, As Managing Director of FirstSouthwest's Orlando office, I am authorized to bind our company to the submitted proposal. Furthermore, we certify that this proposal is an irrevocable offer and that the information below is the valid information regarding FirstSouthwest for 120 calendar days following its opening. We are excited about this opportunity to provide the City with this proposal. The City will have the commitment of the FirstSouthwest Team and the senior management of the firm throughout this engagement. If you should you have any questions, please feel free to contact me at (407) 426 -9611. Sincerely yours, Edward D. Stull, Jr. Managing Director City of Sebastian, Florida Page 2 of 2 ABOUT FIRSTSOUTHWEST COMPANY Since our founding in 1946, FirstSouthwest has played a pivotal role in shaping the landscape of public finance. FirstSouthwest, headquartered in Dallas, Texas, has an Orlando and Aventura, where the majority of the team providing financial advisory services to the City is located. FirstSouthwest has earned a national reputation as a trustworthy firm committed to unparalleled excellence. We take seriously the trust our clients place in our abilities, as we have helped meet the financial objectives of more than 1,600 governmental entities nationwide. How we have grown. FirstSouthwest has grown over the years, both organically and through acquisition. We acquired Houston -based Masterson Moreland Sauer Whisman Inc. in 1996; the New England financial advisory practice of Fleet Boston Financial Group in 2001; Friedman, Luzzatto Co., a leading provider of equipment leasing services, in 2003; and New York based Arimax in 2004. This growth added offices throughout New England, New York, California and Alaska. In addition to external acquisitions benefiting our clients, we strategically added departments internally in an effort to provide comprehensive services. Examples of this include adding departments related to arbitrage rebate in 1987; investment management in 1988; swap advisory in 1990; and continuing disclosure in 2002. Our proactive efforts related to expanding our service capabilities have withstood the growing complexity in the industry. On December 31, 2008, FirstSouthwest Holdings LLC, the parent of FirstSouthwest Company merged with PlainsCapital Corporation in a stock for -stock transaction at book value. FirstSouthwest became a wholly owned subsidiary of PlainsCapital Bank, which is owned by PlainsCapital. Keys to FirstSouthwest's Success Integrity. FirstSouthwest is known for its integrity a reputation molded by strict adherence to regulations. As one of only a few financial advisory firms that is also a FirstSouthwest A PlainsCapital Company. City of Sebastian, Florida DESCRIPTION OF FIRM Describe how the Firm is organized, its location, and resources it has available to execute the services that may be beneficial to the City. Comment on any recent significant changes in your organization. Include discussion about specific expertise and services that distinguish your firm. Describe the Firm's current and anticipated workloads and availability to commit to the services that may be required by the City. Identify the extent and nature of any anticipated outside support. Explain how you evaluate the success of any pricing of bonds or financings, including any escrow securities. Explain how you will provide pricing and discount estimates; buyer side market concerns; timing recommendations and other timing decision relevant information. registered broker/dealer, FirstSouthwest adheres to the Municipal Securities Rulemaking Board "MSRB rules and the regulations of the Financial Industry Regulatory Authority "FINRA and Securities and Exchange Commission "SEC Our stringent compliance to regulation reinforces the high standards we place in all of our roles and relationships, creating an atmosphere of trust for our clients. Innovation. For notably progressive and effective banking strategies, we have received nine "Deal of the Year" awards. Our clients approach FirstSouthwest expecting dynamic financing solutions from a highly trustworthy firm and stay with FirstSouthwest knowing that they will continue to benefit from our creativity and reliability. FirstSouthwest continues to develop services to meet our clients' demands. Professionalism. Nearly one -third of FirstSouthwest employees have been with the firm for 10 years or longer. FirstSouthwest cultivates team spirit, centering our focus on the needs of our clients. Within FirstSouthwest, we encourage professionals across the firm to mine the breadth and depth of our resources in order to prepare exceptional, comprehensive plans that anticipate our issuers' current and future needs. Our professionals maintain and exceed the educational and regulatory requirements of the securities industry. FIRSTSOUTHWEST'S UNIQUE QUALIFICATIONS FirstSouthwest prides itself in its unique capabilities: 1. First -hand knowledge, experience and commitment 2. Industry leading experience 3. The ability to provide our clients with accurate, reliable market information 4. A nationwide network of professionals First -Hand Knowledge, Experience and Commitment. Our primary and support bankers are familiar with the local area economics in Central Florida and the regional political issues that provide insight into the City's rapid growth. Our service to issuers in Florida, which are similar to the City enhances our understanding of local conditions and provides context to our perspective, We have the local relationships necessary to provide efficient, high quality service, and our local team will be available in- person for all required meetings and presentations. Industry- Leading Experience. FirstSouthwest has the experience to assist the City in realizing its financial goals. Our success and experience in Florida extends nationally. Most notably, between October 1, 2004 and through September 30, 2009, FirstSouthwest has served as financial advisor on 4,124 bond and note issues on behalf of more than 1,000 issuers, totaling more than $129.97 billion par amount, Of these, we served as financial advisor on 58 issues in Florida, totaling more than $7,73 billion par amount, As seen in the chart below, FirstSouthwest is the number -one financial advisor nationally, as well as the number -one financial advisor to cities. NATIONAL FINANCIAL ADVISORY RANKINGS October 1, 2004 September 30, 2009 Source: MuniAnalytics First Southwest Public Fin Mgmt Fiscal Adv Mkt Ehlers Associates Capital Markets Adv 4,124 Issues; ranked #1 $129.97 Billion Par Volume ranked #3 Number -one nationwide for overall number of issues nationally: 4,124 transactions totaling $129.98 billion par amount. Number -one nationwide for number and par amount of issues for cities: 2,351 transactions totaling $34.63 billion par amount. A Nationwide Network of Professionals. FirstSouthwest is headquartered in Dallas, Texas, and maintains 20 branch offices located in 10 states (Alaska, Arkansas, California, Connecticut, Florida, Massachusetts, New York, North Carolina, Rhode Island and Texas). Nationwide, FirstSouthwest employs approximately 360 people. The following map illustrates First Southwest 4411 InsCapital Company- City of Sebastian, Florida FirstSouthwest's numerous office locations throughout the United States. A 6 Office Locations FIRST SOUTHWEST COMPANY OFFICE LOCATIONS 360 Employees, 21 Offices North Carolina California >.I sN 1S :irp Houston roa groan Venus 1.0(x0. Mcaarr Arkansas %Astraale. NeW York Ns./ 'fork \Rhode Island ncotr: Connecticut csa4w.hurs Massachusetts Locadonswith sales or trading desks (Dallas, Austin, Houston, f ortWorth, San Antonio, Boston and New York CIty) FirstSouthwest has maintained an office in the State of Florida since 1987 and currently has offices in Orlando and Aventura, employing six licensed bankers and three other full -time staff. The professionals who are based in oUr Orlando office will coordinate and manage the City's engagement. Our nine Florida -based personnel are dedicated solely to public finance operations. /ORLANDO a 20 North Or ange Avenue, Sute 1209 Orlando, Florida 32801 7 Employees 4 AVENTURA 18851 Northeast 29 Avenue, Suite 502 Aventura, Florida 33180 3 Employees Advantages of a Local Presence FirstSouthwest's presence in the Central Florida area provides distinct advantages to the City, including: Commitment of local support to the City, offering readily available resources, By virtue of an office in Orlando, we generally can be at the City's offices within short notice. In -depth knowledge of Florida issuers, providing expertise that rivals that of any other firm. Familiarity with entities with which the City will need to associate. Our experience is constantly being built upon by participating in a multitude of public finance engagements for state, county, and city level issuers within Florida, providing invaluable experience that will aid and benefit the City when securing funding for its infrastructure needs. 2 Our local banking professionals will work in conjunction with our primary underwriting desk located in our Dallas office and, as needed, will call upon our nationwide network of banking, technical and analytical resources. By utilizing the expertise of our senior bankers and technical staff throughout the firm, the City will receive the full benefits of a national firm with the client oriented approach of a local firm. Public Finance Structure. FirstSouthwest's Public Finance Group has been the mainstay of FirstSouthwest's growth from the inception of the firm in 1946. Ancillary services further support our financial advisory practice: underwriting, asset management, swap advisory, corporate finance, and others, All areas of our firm will support our Finance Team as necessary when providing financial advisory services to the City. The strength of the Public Finance Group is a testament to the absolute commitment of our public finance professionals to our clients. The strength of that commitment results in successful long -term business relationships. Notably, we have several professionals who have represented the same clients for more than 40 years. In fact, Public Finance is the largest department in the firm, All of FirstSouthwest's branch offices and 38% percent of total staff firm wide are dedicated almost exclusively to public finance; 50% of total personnel are dedicated to public finance or sales and underwriting. Because of our commitment to issuers in the public sector, the City will receive attention from all corners of FirstSouthwest. FirstSouthwest strives to establish and maintain a style of client service that is: Comprehensive Full- Service FirstSouthwest A PlainsCapital Company. Client Oriented Personalized Immediate and Responsive The following graph, which shows the dispersion of personnel among the different service and support divisions of the firm, helps illustrate the significance of public finance in the firm. Sales /Underwriting/ Corp Cap Mkts 12% IT Operations 8% 13% N. 50% City of Sebastian, Florida FIRSTSOUTHWEST PERSONNEL BY DEPARTMENT (as of October l5, W09) Arb Rebate 5% MC Corporate Planning Services 2% s% Clearing 2% sset Mgmt/ TexSTAR 3% Complaince/ Legal 2% Corporate Finance Structured 1% Products 1% includes Print Services, Trade Execution, Leasing, Special Products Stock Loan Borrow *Includes Accounting, HR, Executive, Corporate Services Team Availability and Substitutions FirstSouthwest designed its corporate infrastructure to accommodate all facets of a client's financial advisory service needs. The depth and breadth of the firm's resources thrive in the hands of highly knowledgeable senior -level executives who possess years of public finance experience. This ensures each client that FirstSouthwest has the support capacity and available resources to perform effectively as financial advisor. As such, we carefully consider an issuer's needs when developing the finance team. We meticulously evaluate team assignments to make certain the Project Manager and other key personnel have the appropriate industry expertise and availability to devote ample time and resources to the engagement, ensuring its success. In addition, FirstSouthwest understands the importance of providing its clients a dedicated team throughout all phases of an engagement. Therefore, FirstSouthwest assures the City that we will not substitute personnel without prior notice to, and approval from, the City. (23_5 FirstSouthwest Proposed Team Availability to the City of Sebastian Team Member Edward D. Stull, Jr. Managing Director Mark P. Galvin Senior Vice President Gary Akers Senior Vice President Joel Tindal Assistant Vice President Peter 8, Stare Senior Vice President Thomas Gallo Senior Vice President Richard A. DeLong Managing Director Shelley D. Weiske Senior Vice President O irst5outhwest 2 A ns Company. Role Current and An cipated Workload Project Manager Senior Support Team Senior Support Team Technical Banker Mary- Katherine C. Sells Credit Vice President Consultant A focus on Florida clients and role in FirstSouthwest's national Transportation Group Florida Public Finance engagements with Cities, Counties and other municipal entities Florida Public Finance engagements with Cities, Counties and other municipal entities Florida Public Finance enga and other municipal entities Long -Term Full -Time Underwriting De4 commitment and extensive Underwriting contributions to Financial Advisory engagements Short -Term Full -Time Underwriting Desk commitment and extensive Underwriting contributions to Financial Advisory engagements Remarketing Underwriting Consultant Ongoing Underwriting participation with a hybrid role as high profile market information liaison for Financial Advisory engagements Credit specialist for FirstSouthwest clients Arbitrage Full -Time Senior Arbitrage Rebate expert with Rebate Expert FirstSouthwest Asset Management, an affiliate of FirstSouthwest Company .w ements with Cities, Counties City of Sebastian, Florida Availability to the City Daily Contact and for Scheduled Meetings Daily Contact and for Scheduled Meetings Daily Contact and for Scheduled Meetings Daily Contact and for Scheduled Meetings Scheduled Meetings Scheduled Meetings Scheduled Meetings and Specific Inquiries Scheduled Meetings and Specific Inquiries Specific Inquiries THE FIRSTSOUTHWEST DIFFERENCE In addition to having experience working with the most active financial institutions in the Florida municipal market, the Florida -based financial advisory team assigned to the City can have direct communication with the market buyers through the FirstSouthwest trading desk. Prior to any bond issue, FirstSouthwest surveys the market and provides clients with a pre pricing book that outlines recent deals in the market. Prior to pricing, the FirstSouthwest desk will confer with the underwriter on the proposed structure, interest rate scale and proposed takedowns and recommend any changes. During pricing, the financial advisory team will be in constant contact with the City, underwriter, and FirstSouthwest desk and keep the City informed of the progress. After the pricing, FirstSouthwest will prepare a post pricing summary that compares the pricing with other pricings in the market. 4 KNOWLEDGE AND EXPERIENCE Provide a description of the Firm's technical capabilities regarding the issuance of taxable or tax exempt bonds. Provide examples that represent the Firm's ability to provide experienced expertise and administrative support in a timely manner to other clients. Give examples where the Firm has shown initiative in offering unsolicited advice or recommendations that were beneficial to the client. Describe any innovative financial techniques or programs that have been utilized by your Firm and indicate whether they may also be suitable for the City. FINANCIAL ADVISORY EXPERIENCE Nationally speaking, according to Munianalytics, in the period from October 1, 2004, to September 30, 2009, FirstSouthwest served as financial advisor on 3,966 tax exempt issues on behalf of 989 issues, totaling more than $123.28 billion par amount. Additionally, FirstSouthwest is ranked as one of the top financial advisory firms in Florida, completing $7.73 billion in bond financings during the same period. According to our internal database, during the past five years, FirstSouthwest has completed 170 transactions, totaling more than $9.14 billion par amount. The following table illustrates the distribution, quantity and par amounts of Florida financing in which FirstSouthwest served as financial advisor for the five -year period ending September 30, 2009. FirstSouthwest Company All Florida Transactions October 1, 2004 September 30, 2009 Bay County Bay Harbor Islands Charlotte County Citrus County City of Cocoa Beach City of Edgewater City of Fernandina Beach City of Inverness City of Lake Mary City of Lauderhill City of Marco Island City of Miami City of Miami Health Facilities Authority City of Naples City of New Smyrna Beach City of Ocoee City of Palm Bay City of Palm Bay Bayfront CRA City of Palm Coast City of Panama City City of Sanford City of South Daytona City of Tavares DeSoto County Escambia County Florida Agricultural Mechanical University (FAMU) Florida Community Services Corporation of Walton County Florida Gas Utility FirstSouthwest4 A PlalnsCapltal Company. Par Volume Issuer $28.45 Florida Governmental Utility Authority 4.94 Hialeah Gardens Health Facilities Authority 240.39 Hialeah Housing Author 130.45 Indian River County 3.23 Lee County Housing Finance Authority 2.00 r Martin County 15.45 i Miami Dade County 7.14 Miami Parking Authority 7.11 Miami -Dade County 5.00 Miami Dade Counf� Expressway Authority 10.00 North Key Largo Utility Corp. 4 North Miami 74.02 North Miami CRA 10.00 Okaloosa County 25.67 Orange County Industrial Development Authority 23.45 Orlando Orange County Expressway Authority 117.56 Pace Property Financing Authority 6.00 Peace River /Manasota Regional Water Supply 58.84 Authority 1.92 Sarasota County 28.00 Seminole Community College Foundation 3.00 Tampa Hillsborough Expressway Authority 15.90 UCF Convocation Corporation 25.99 UCF Foundation 138.40 UCF Health Facilities Corporation 2.48 University of Central Florida Athletics Association 14.10 University of North Florida Financing Corporation 694:18 Village of Wellington Totals 170 Transactions $9,1 Million par amount City of Sebastian, Florida Par Volume $62.44 48.64 18.05 102.65 110.88 106.48 600.00 40.95 2,51135 545.74 2.97 133.28 10.70 66.45 144.25 1,458 21 10.00 !i 30.00 233.71 s 1.20 326.63 107.43 13.20 110 00 83.00 42 10.00 In addition, MuniAnalytics ranks FirstSouthwest as a top five financial advisor to Florida cities based on number and par amount of transactions during this period. Nationally, FirstSouthwest is ranked number one for both quantity and total par amount of city transactions in the United States, as shown in the following graph. FINANCIAL ADVISORY RANKINGS: CITY TRANSACTIONS October 1, 2004 September 30, 2009 Source: MuniAnalytics First Southwest Ehlers Associates Public Fin Mgmt Springsted Capital Markets Adv 595 1,036 909 745 2,352 Issues; ranked #1 519.41 Billion Par Volume ranked #1 CASE STUDIES FOR OUR WORK WITH CITIES AND COUNTIES IN FLORIDA As noted in the table opposite, FirstSouthwest has assisted issuers in the State of Florida with more than $7.73 billion in debt issuances during the previous five years. The following are detailed case studies, which illustrate FirstSouthwest's experience providing our expertise and administrative support to our clients. n irst5outhwest4 z 3 �p inscapitalCompan V X INDIAN RIVER COUNTY As financial advisor to Indian River County, Mr. Stull and the FirstSouthwest team assisted the County with issuing its $26,370,000 Water Sewer Revenue Refunding Bonds, Series 2009 on August 13, 2009 to currently refund a portion of the County's Water and Sewer Revenue Bonds, Series 1993A. After initially indentifying the possible refunding savings and monitoring the market over a three year period, FirstSouthwest assisted the County with the refunding bonds to achieve a net present value savings of 10.5% or $2,968,764, which exceeded the 5.00% minimum City of Sebastian, Florida savings policy and the recommended guidelines of the GFOA minimum present value savings of at least 3 FirstSouthwest worked closely with County's financing team in the preparation of the rating presentation, which, paired with the County's history of strong financial management ultimately resulted in upgraded ratings of "AA/AA from S &P and Fitch and an all- inclusive interest cost of 3.75 CITY OF FERNANDINA BEACH, FLORIDA Most recently, FirstSouthwest served the City of Femandina Beach (the "City on its issuance of its private (bank) placement of its $1,300,000 Marina Revenue Note, Series 2009 on March 5, 2009, The note financed various improvements to the City Marina and was secured by Marina Enterprise Fund revenues and CRA (TIF) revenues, with a back -up covenant to budget appropriate from legally available non -ad valorem revenues from the General Fund, FirstSouthwest assisted the City in developing and distributing an RFP to bank and assisted staff in reviewing the ten bids that were received. The financing was completed at an all -in cost of 4.706 On July 1, 2008, the City completed the issuance of its $292,631.10 Golf Course Revenue Note, Series 2008 to fund the purchase price of 96 new golf carts and repayment of a previous financing through Banc of America Leasing Capital, LLC. The note was secured and payable by Golf Course Enterprise Fund revenues, FirstSouthwest assisted the City in developing and distributing an RFP to bank and assisted staff in reviewing the ten bids that were received. The fi nancing was completed at an all -in cost of 3.137 The City issued $32.9 million in Utility Acquisition and Improvement Revenue Bonds, Series 2003. The proceeds were used to acquire a private water utility of 7,000 customers and to pay for improvements to the City's utility system, as the City already owned and operated a sewer system. The acquisition of this water system provided the City with total control of the water and sewer utilities in and outside of the City. As the City's fi nancial advisor, FirstSouthwest, along with the City's staff and consulting engineers, developed an insurance presentation and met with five municipal bond insurers to highlight the important structuring and credit considerations associated with the financing. After 6 meeting with the bond insurers, the City received five strong insurance bids, including bids for a debt service reserve surety bond. One of the insurers was willing to reduce the debt service coverage requirements. FirstSouthwest TIP A PiainsCapitai Company. SARASOTA COUNTY, FLORIDA FirstSouthwest is currently assisting Sarasota County, Florida in issuing its proposed $9,030,000 Capital Improvement Revenue Bonds, Series 2010A (Federally Taxable Build America Bonds Direct Subsidy) and $11,295,000 Capital Improvement Revenue Bonds, Series 201013 (Federally Taxable Build America Bonds Recovery Zone Economic Development Bonds Direct Subsidy). These bonds will be issued to finance the renovation and improvements to the existing Ed Smith Stadium Complex for use by the Baltimore Orioles for Spring Training and other Major League Baseball purposes. On July 22, 2009, the Board of County Commissioners approved, an Interlocal Agreement, with the City of Sarasota to transfer ownership of the City of Sarasota Sports Complex (Ed Smith Stadium) and a Memorandum of Understanding (MOU), with the Baltimore Orioles Limited Partnership, for a 30- year lease of the City of Sarasota Sports Complex (Ed Smith Stadium) for Major League Baseball Spring Training operations and for Minor League Baseball Spring Training operations located at the Buck O'Neil Baseball Complex at Twin Lakes Park, with renovations to the Sports Complexes, in the amount of $31.2 million. The Board of County Commission on September 23, 2009 authorized the use of Recovery Zone Economic Development Bonds for County infrastructure projects and on October 13, 2009, voted to reallocate $9,500,000 of its Recovery Zone Economic Development Bonds to the City of Sarasota, and utilize the County's remaining $9,030,000 in Recovery Zone Economic Development Bonds for the Sports Complex. The County is scheduled to issue the proposed Series 2010 Bonds, with the closing on the bonds scheduled during the second week of January, 2010. City of Sebastian, Florida MARTIN COUNTY, FLORIDA FirstSouthwest Company currently serves as Financial Advisor to Martin County and recently assisted Martin County, Florida in issuing its $7,990,000 Utilities System Improvement Revenue Bonds, Series 2009A and $28,675,000 Utilities System Refunding Revenue Bonds, Series 2009B on October 14, 2009 and October 19, 2009, respectively, The possible refunding opportunity was originally identified by FirstSouthwest in 2006 and the County was updated on the possible savings levels over a three year period. Approval of the County Commission was obtained on October 6, 2009 to move forward with the sale of the Series 2009A and Series 2009E Bonds. Proceeds of the Series 2009A Bonds were used for the acquisition of the Indian River Plantation and the Miles Grant systems for an acquisition price of $7,500,000 and the Series 2009B Bonds were used to currently refund all or a portion of the outstanding Series 1998 Utility Bonds. After three weeks of falling rates to near record lows, interest rates rose dramatically in the weeks following the October 6th County Commission meeting, triggering the worst two -week sell off in 2009. As a result of the rise in interest rates, the Underwriter suggested moving up the pricing date to October 14th instead of October 15th as originally scheduled and agreed to underwrite all of the Series 2009A new money bonds. The Underwriter re- entered the market on October 19th with the Series 2009B refunding bonds which were sold with a present value savings in excess of $1.3 million or 4.56% of the refunded Series 1998 bonds. Immediately after being retained by the County in December, 2005, FirstSouthwest developed a capital planning model and financing plan for the County's 5 year Transportation Improvement Program. On February 14, 2006, the County issued its $40,000,000 Gas Tax Revenue Bonds, Series 2006. The bonds were issued to finance the costs of acquisition, construction, and reconstruction of roads and bridges and other transportation improvements within the County. FirstSouthwest assisted the County in all aspects of the transaction including; obtaining ratings and insurance as well as requesting bids for paying agent/registrar and printer services. FirstSouthwest also coordinated with the Underwriters on the timing of the pricing and closing of the bonds. Zd ITY OF MIAMI, FLORIDA FirstSouthwest became the financial advisory to the City of Miami on December 2, 2005. We have worked with the City on the following transactions and /or activities: Issuance of the City's $30,615,000 Non -Ad Valorem Variable Rate Refunding Bonds, Taxable Pension Series 2006 These variable rate refunding bonds were issued pursuant to an exercised option under a Swaption Agreement that the City had executed with Morgan Stanley. The transaction locked in present values savings of in excess of $5 million to the City's benefit (a percentage savings of 9.63% as measured against the refunded bonds). During the course of the transaction, we assisted the City to negotiate an improved annual debt service savings of $50,000 per year during the life of the refunding bonds due to a technically deficient notice of exercise by the swap counterparty. Assisted the City in developing a comprehensive Master Swap Policy which was approved by the City Commission. Issuance of $40,000,000 Health System Revenue Bonds, Catholic Health System Series 2006 (Mercy Hospital Refunding Bonds) The City's Health Facilities Authority served as the conduit financing agency for this transaction, which brought debt service relief to Mercy Hospital, which is located in the City of Miami. Assisted the City in developing an underwriter RFP that the City subsequently issued to create an underwriting team successfully that will be available to the City throughout a five -year period. Issuance of the City's $103,060,000 Limited Ad Valorem Tax Refunding Bonds, Series 2007A and $50,000,000 Limited Ad Valorem Tax Bonds, Series 2007B. Both series were issued in furtherance of the City's Homeland Defense /Neighborhood Capital Improvement Program. The Series A Bonds were issued to refund certain outstanding Series 2002 Bonds at a present value savings of more than $3.5 million. The Series B Bonds were issued to provide approximately $51 million of new money proceeds for the capital program. This transaction is notable in that it was structured to eliminate any increase in ad valorem debt mileage to the City's residents in spite of $51 million of new money proceeds being provided; it was stSouthwest 4411P sCapital Company. City of Sebastian, Florida accomplished during the same time period that the State Legislature was actively pursuing tax reform; and the City received its ratings (with Fitch Ratings providing an upgrade) the day after the Legislature's special session. Also as part of this transaction, the City was able to get MBIA to modify its additional bonds test (from the Series 2002 transaction) so that future GO bonds do not fall under the 1.218 mill debt service limitation contained in the bond covenants. FirstSouthwest assisted the City in the issuance of $80,000,000 Street and Sidewalk Improvement Special Obligation Bonds, Series 2008. This bond offering was secured by three City revenue sources, namely local gas taxes, a transportation sales tax and a surcharge on all public parking within the City, The bonds were structured with a 1.35 times debt service coverage requirement and achieved an underlying rating of "A3 /A from Moody's and Standard Poor's, respectively. The City executed three loans with the Sunshine State Governmental Financing Commission totaling $68.5 million, FirstSouthwest assisted the City in optimally structuring these loans into the City's debt portfolio as well as addressing each loan's documentation requirements. ADDITIONAL EXPERTISE AND ADMINISTRATIVE EXPERIENCE The following sections detail additional qualifications of FirstSouthwest, which we believe will benefit the City over the long -term of a financial advisory engagement. Experience with Credit Rating Agencies FirstSouthwest has been consistently recognized as a leading firm in terms of the number of bond ratings obtained each year. Our history of obtaining rating upgrades for clients is a testament of our ability to manage effectively the rating agency process. As a result of our vast experience, FirstSouthwest has unparalleled relationships with Moody's Investors Service, Standard Poor's, and Fitch. This continual "hands on" exposure to all aspects of the rating process affords the City a major advantage in that we have developed an in -depth understanding of the rating agencies' typical concerns regarding county credits. Based on those concerns, we help plan and prepare a presentation to achieve the best possible ratings. 8 Credit Assessment Capabilities FirstSouthwest has an internal specialty credit rating group, led by team member Ms. Mary C. Katherine Sells who has more than 18 years of valuable experience. Our rating agency experience, especially with toll and transportation financings, will provide significant value to the City's financing. Credit Rating Strategy. After analyzing the City's finances, FirstSouthwest will determine the relative strengths and weaknesses. FirstSouthwest will then assist the City with establishing attainable underlying rating goals. Based on these targets, we will advise on the selection of bond rating providers and on the method for obtaining bond ratings, which includes: Consulting on financial, administrative and credit factors Assisting in the development of long -term strategic plans Developing action plans to obtain credit rating goals Assisting with the preparation of presentation materials We will recommend the most appropriate rating presentation method, including site visits, conference calls, or direct presentation. During this process, we will focus on the best method for presenting information most likely to influence the rating outcome. FirstSouthwest takes a supportive role, rather than active, in the actual presentation of materials, because the rating agencies stress direct discussions with the issuer, Therefore, we will fully prepare the City and its staff for the presentations that they will make to the rating services. Our participation in the actual presentation will focus primarily on preparing solid answers for different lines of questioning, drawing from experience gained from our participation in many other presentations. Finally, our professionals will assist the City in the critical task of maintaining its underlying ratings and advise on the timing of upgrade requests, if appropriate. We utilize the powerful MFRA database, which allows us to compare a variety of financial and economic metrics for the City to other similar issuers throughout Florida, the Southeast and the U.S. We also will advise the City on the aspects of strategic financial that are a focus the rating agencies. FirstSouthwest A PlainsCapitai Company. Experience with Financial Institutions FirstSouthwest's local banking team maintains relationships with a variety of local, regional and national financial institutions and has completed more than 34 private placements of governmental debt with banks since 2008. The FirstSouthwest team has a thorough knowledge of liquidity facilities and relationships with providers of third -party credit enhancement, We also maintain close contact with domestic and foreign banks and other companies that provide letters of credit or other credit enhancement instruments. Although a majority of new issues have been offered without bond insurance, FirstSouthwest continues to maintain its strong relationships with the currently active bond insurers. FirstSouthwest recognizes that bond insurance may offer some value for specific credits. For each specific issuance of bonds, our professionals will perform frequent analyses to determine if insured or uninsured bonds will achieve the lowest overall cost of borrowing for the City. Investor Relations and Understanding With extensive communication between our financial advisors and our underwriting staff members, including Mr. Peter Stare and Mr. Thomas Gallo, FirstSouthwest possesses real -time understanding of current market conditions as it relates to investor expectations, demand and opportunities for our financial advisory clients to obtain low financing costs. The following table denotes the investors frequently targeted, by maturity, when FirstSouthwest serves as an underwriter for the City, we will draw upon our daily participation to provide pertinent information and advice in planning and executing a transaction. Maturity Targeted Investors Money market funds, retail investors, corporations Mutual funds, retail investors, corporations, trust 2 5 years departments, money managers, investment advisors Retail investors, intermediate funds, trust departments, money managers, investment advisors, insurance companies Trust departments, money managers, investment 10 20 advisors, insurance companies, mutual funds, years 1 year 6 -10 years City of Sebastian, Florida I leveraged funds proprietary accounts 20 30 Insurance companies, mutual funds, arbitrage years accounts, leveraged funds, proprietary accounts 9 Because FirstSouthwest's institutional sales force has longstanding relationships with accounts that rely on our firm for credit information and our fixed- income sales professionals are municipal specialists, and several have more than 25 years of service each to their accounts. In sharing our understanding of current investor behavior and overall market perspective, we believe our approach will provide exceptional value to the City. Accountability and Transparency The recent financial crisis has exposed gaps in many areas of the financial markets, including the municipal market. As a result, both the SEC and the MSRB have initiatives to broaden the oversight of firms acting in the municipal marketplace, including financial advisors, of which approximately 73% are unregistered. According to the MSRB, "Regulation of these entities is essential to protect investors and market integrity." As a broker /dealer, FirstSouthwest is subject to the rules and regulations of the various governmental bodies such as the SEC and the FINRA, among others, and adherence to the rules of the MSRB. FirstSouthwest is also a registered securities dealer under the SEC Act of 1934 and functions as a member of the Depository Trust Company and the National Clearing Corporation. Furthermore, as a broker /dealer, we maintain more than $66 million in equity capital. Unregistered "independent" financial advisors are not subject to MSRB oversight and have no capital requirements. In addition to the firm -level requirements, our professionals (bankers, analysts, underwriters, traders, specialists and others) are all required to maintain various securities licenses with FINRA. Such licenses require passing securities examinations, completing annual continuing education programs and periodic re- examinations. The registration histories of all of our professionals are available through FINRA's national database. Such a high level of accountability and integrity in our firm and our professionals is perhaps the most important advantage FirstSouthwest has to offer the City. Market Resources As mentioned earlier, FirstSouthwest is a registered broker /dealer with FINRA, with its activities regulated by the SEC and abides by the MSRB rules. The firm is also a member of the SIPC. irstSouthwest InsCapital Company.. City of Sebastian, Florida We believe that the discipline of maintaining an active broker /dealer operation benefits our clients in numerous ways. Primarily, we are active participants in the marketplace every day, not merely observers, Risking our capital gives us additional perspective into the nuances of the underwriting process, and lends us valuable credibility with the underwriting community. Other broker /dealers know that we are willing and able to provide the same functions we ask of them. They know we are speaking on a daily basis to many of the same institutional investors. Therefore, our clients benefit from market advice that we obtain from firsthand, direct, real time information as opposed to secondhand observations obtained from calling other firms or compiled from information vendors. We strongly believe that this approach distinguishes our services from our competitors, but most importantly, it provides a higher quality service to our clients and allows them to achieve the lowest possible cost of borrowing. The underwriting desk at FirstSouthwest works in partnership with our banking professionals from the beginning preliminary structuring, updating with current scales and coupon ideas, call features, priority of order decisions all the way to the final allocations. We have multiple underwriting professionals with more than 25 years of experience each working for both national and regional firms. They understand all facets of the underwriting process, from how to capture the largest retail sales percentage to working with the most difficult institutional orders. As much as 70% of our underwriters' time is invested in working with financial advisory clients. The City can be confident that when the time arrives to price its issue, our professional underwriters will be watching over every detail of the transaction and getting the most value for the City's securities the market will allow. Sarasota County An excellent example of the benefits of maintaining a desk is Sarasota County's offering of $69,895,000 of Infrastructure Surtax Revenue Bonds, Series 2008E on December 5, 2008 in which FirstSouthwest acted as financial advisor, The County had a long history of competitive sales. In this instance, however, in order mitigate the County's market execution concerns, the bonds were sold through a negotiated sale. 10 During the order period, under the advisement of FirstSouthwests long -term underwriting desk, the County was able to negotiate a risk component on the unsold balances with the underwriters, thus successfully completing the sale in an extremely difficult and unpredictable market. Had the County not been able to negotiate this, only half of the bonds would have been sold at the original offering prices. The County would have been faced with either a second offering of bonds months later at considerable additional cost, or consenting to re- pricing entire maturities at higher yields. In the end, it was determined that the risk component included in the gross spread represented considerable cost savings to the County. In our role as financial advisor, FirstSouthwest's underwriting and trading desk routinely provides recommendations regarding the following matters based on their active market involvement and extensive institutional investor relationships: Structure Call options and premiums Yields Coupons Placement of Term Bonds and pricing Serial Bonds and Pricing Capital Appreciation Bonds and pricing Cost effectiveness of insurance Credit aspects Underwriters' takedown and spread Syndicate rules Allocation of bonds In short, these capabilities provide an enormous advantage to the City and differentiate FirstSouthwest from "independent" advisory firms, which do not have actual market involvement and capabilities. Although the City may only require some of these services to be provided by FirstSouthwest, the expertise of all the professionals in these auxiliary areas is shared with the public finance bankers and utilized when specific questions arise. FULL SUITE OF SERVICES OFFERED While financial advisory is the core business of FirstSouthwest, we have responded to today's increasingly complex public finance landscape by raising the bar on the services, resources, and experience our firm offers. In fact, FirstSouthwest is arguably the First Southwest410 A PlainsCapital Company most well- equipped and resourceful investment banking firm in the nation. Our Public Finance Department is structured to provide clients with access to multiple professionals with expertise in diverse areas of finance: swap advisory, underwriting and trading, continuing disclosure, arbitrage rebate calculations, and investment management, among others. The following table summarizes the volume of our participation providing these select services. FirstSouthwest Financial Services Experience Type of Service i Volume of Participation Arbitrage Rebate Calculation Services* Continuing 1, Disclosure Services* Investment Management* Underwriting City of Sebastian, Florida FirstSouthwest's affiliate, FirstSouthwest Asset Management, represents approximately 460 clients on more than 3,000 active bond issues, totaling $123 billion par amount Provides services to 540 clients and annually files 680 reports FSAM actively manages $7.05 billion for 34 state and local governments. In addition, we served as the investment advisor for an additional $4.36 billion, participating in strategy development, market and economic analysis, and selection of prudent security alternatives. For the five -year period ending September 30, 2009, served as senior or co- managing underwriter on 1,197 issues, totaling $53.34 billion par amount Sources: "FirstSouthwest Internet Database "Thomson Service Descriptions Brief descriptions of the specialty practice groups within FirstSouthwest follow: Arbitrage Rebate. FirstSouthwest Asset Management, Inc. "FSAM an SEC Registered Investment Advisory Firm and affiliate of FirstSouthwest, assists municipalities in monitoring the investments of bond proceeds and performs annual calculations to ensure they retain their tax exempt status. FirstSouthwest was the first investment banking firm in the nation to offer arbitrage rebate calculation services. Investment Management. FSAM provides investment management services and investment pool administration for the public sector, FSAM serves as 11 either the investment manager or the investment advisor for $11.41 billion in public funds. Swap Advisor Services: FirstSouthwest has maintained a dedicated swap and reinvestment desk since 1990 and considers our derivative practice to be an integral branch of the firm. Our clients include issuers from all sectors of the tax exempt spectrum: housing authorities, higher education, general obligation, revenue, health care, transportation, public power, water and sewer, and other 501(c)(3) issuers. Our experience includes both competitive and negotiated transactions. Each swap is unique, and generalizing our experience is irstSouthwest4 Cr. A (nsCapttal Company. City of Sebastian, Florida difficult, except to say that we have worked with all types of issuers and all types of transactions. Underwriting: FirstSouthwest draws upon national experience serving numerous types of entities. Continuing Disclosure. The firm is one of the few financial advisors that offers a separate continuing disclosure service to assist municipal bond issuers with the required annual financial filings and ongoing material event notices. 12 SERVICES TO BE PROVIDED OR MADE AVAILABLE Demonstrate an understanding of the City's needs and what the Firm would offer toward meeting those needs. Discuss the Firm's understanding of the City's financial situation and include ideas on how the City should approach issues such as bond structures, credit rating strategies and borrowing for future projects outlined in the City's Capital improvement Program, List the services proposed to be provided or made available and provide comments as to how the Firm's expertise will be valuable to the City. UNDERSTANDING OF THE CITY FINANCES Because of our familiarity with the City, the FirstSouthwest team assigned to the City can immediately provide value as the City's Financial Advisor. On the positive side, the City has seen a decline in its millage rate from 6.50 mills in FY 1999 to below 3 mills in FY 2008 and then a slight rise to the 3.3456 mill rate in FY 2010. Property tax revenues constitute approximately 37% of the City's budget, so the 11.9% drop in taxable values in FY 2010 and the additional drop projected by many in FY 2011 will present additional challenges. Although the City has done a remarkable job with its recent budgets in an extremely difficult economic environment, it will be tested in finding revenues to fund current budget levels and the relatively small pension and OPEB liabilities without a further erosion of fund balances. With many governmental and private companies scaling back on capital projects, there may be an opportunity for entities like the City to take advantage of the lower bids being submitted by various contractors who are hungry for business. Accelerating capital projects such as planned drainage improvements or road repaving could result in actual contracts being awarded at 20% or more below estimates. With interest rates near historical lows, this may be an opportunity for the City to complete necessary projects sooner and at a lower cost, even after paying the interest costs on the financing. In addition to the services provided by FirstSouthwest mentioned in the previous question, the following sections outline our approach to providing these services. APPROACH TO PROVIDING FINANCIAL ADVISORY SERVICES Based on our extensive and varied experience with public entities, FirstSouthwest provides a full service approach to providing financial advisory services that ensures every aspect of an issuer's needs is addressed. This comprehensive approach (described below) is considered to be the driving force behind our long history of success. It combines all of the firm's public finance capabilities and additionally employs as needed representatives of our other specialty groups. As you will note, all of the duties listed in the RFQ as the financial advisor's services to be First Southwest fa? APlainsCapital Company,. provided are addressed in one or more phases of our financial advisory process. The following chart summarizes each step of our approach: PHASE Conduavorketir, Financial Advisory Process City of Sebastian, Florida PHASE4 Coordinate. Rating& C,�edtt �l2hiQSO[n.4tat., PHASES Itia0041"glrq ,S PHASE 3 caardinatrRelated Ffs+vl 6.0 We recognize that the City may require a customized approach and scope of services, and we will readily accommodate needs not mentioned in the Request for Qualifications. Additionally, because of the experience and competence of our professionals, FirstSouthwest confidently assures timely and responsive service during the process of preparing for and completing any transaction. Phase 1: Develop Financing Program For the planning and structuring of tax exempt financings, FirstSouthwest will incorporate the implications of arbitrage rebate, investment policies, marketing, and technical considerations. Furthermore, our financing strategies factor in the implications of relevant financial issues, both current and potential, ensuring clients that the relevant aspects of a transaction will be considered before terms are finalized. In order to determine available borrowing capacity, we will evaluate the existing debt structure and financial resources of the City. FirstSouthwest will analyze the strength of the system revenues pledged to secure payment of debt service on all outstanding City debt and on the bonds issued to finance the intake plant. We will provide recommendations to the City relative to the financial plan that will protect its ratings and the marketability of the issue. FirstSouthwest will devise and recommend a plan for financing bonds to be issued 13 through monitoring and controlling the costs of fees and expenses incurred, a maturity schedule, and other terms and conditions requested by the City. FirstSouthwest will recommend the investment of bond proceeds in compliance with federal arbitrage regulations, and will provide sound, current advice concerning the ongoing legislative considerations of new bond or borrowing initiatives. Furthermore, we will provide oversight, coordination, and experience in the development of new bond or borrowing initiatives. Upon completion of Phase 1, the City and FirstSouthwest will have designed a financing strategy that facilitates the success of all future financing initiatives. Phase 2: Set Financing Terms FirstSouthwest will perform analyses to determine the timing of the offering, and the appropriate size and structure of the bond issue. In addition, we will evaluate the cost effectiveness of various financing alternatives to recommend the structure that achieves the highest possible credit rating within the constraints of the City. We have the technical capability and experience required to assess virtually every type of financial structure contemplated, Therefore, we are able to run scenarios that quantify the benefits and costs of various structuring considerations, such as: fixed versus variable rate debt, credit enhancement, optimal call dates and prices, desired maturity dates, premium versus discount bonds, and serial versus term bonds. FirstSouthwest will prepare cash flow forecasts that will enable the City to evaluate the annual debt service requirements associated with altemative financing structures. We will recommend the method of sale that maximizes the marketability of the City's securities and minimizes the overall borrowing cost. For the most common types of design analysis, FirstSouthwest will: Produce cash flow models with the flexibility to calculate bond capacities based on debt service installments; utilize forecasted revenues, expenditures and growth factors; model construction drawdowns and interest earnings; and project rates and user charges. Size a financing including allowance for capitalized interest, construction costs, escrow requirements, insurance costs, interest earnings, issuance costs and reserve funds. irstSouthwest alnsCapltalCompany City of Sebastian, Florida Structure a payment amortization to a tailored schedule based on projected revenue and expenditure constraints. Defease outstanding debt utilizing a state-of-the-art proprietary advance refunding software system that structures an optimal escrow fund; structure new debt on a level, front -end or tail -end savings basis; and provide other structures as necessary. Calculate the issue price to the public and, using this price, calculate the arbitrage yield as defined by the Tax Reform Act of 1986. Calculate an intemal rate of return or "true interest cost" and provide present value schedules based on such yield for use in evaluating bids or modeling present values of cash flow projections. Devise debt capacity models that can be used to detail the City's existing debt service requirements; forecast proposed debt service requirements; and project the impact of the proposed requirements on financial ratios. Develop debt service schedules, which can be used to illustrate the debt service requirements on an actual, bond, or fiscal year basis, while assuming annual, semi- annual, or monthly payments. Our schedules can accommodate serial and term bonds, discount and premium bonds, and zero coupon bonds, including premium capital appreciation bonds, as well as variable rate and synthetic fixed rate debt. Provide refunding analysis, which can be used to illustrate savings on a gross basis or a present value basis of refundings. We offer a distinctly different approach to providing technical services from our competitors. FirstSouthwest believes that structuring a bond transaction requires the implementation of innovative financing techniques by experienced professionals. The team of professionals carefully selected to work with the City have the ideal combination of expertise, skill, and creativity to address and achieve future financing needs of the City. Phase 3: Coordinate Related Service Providers FirstSouthwest will assist with the evaluation of proposals from financial printers, paying agents /registrars, and trustees. We will participate in document preparation and assist bond counsel in the coordination of the offering, prepare information as necessary for the rating agencies and will help the City maintain ongoing relationships with credit rating agencies. We will disclose all fees, define all 14 relationships, and meet the City's needs by facilitating an excellent working relationship with the City's other service providers. We serve as financial advisor for approximately 600 transactions per year. Our professionals work daily with bond attomeys, financial advisors, and underwriters. Because we often commit our own capital for the benefit of our clients, we understand the role of underwriters. Our underwriting capability enables us to negotiate as equals with underwriters during the structuring, marketing, and pricing phases of a transaction. Furthermore, we have a long history of working with minority and female -owned firms involved in all facets of the investment banking industry. For these reasons, our firm is well equipped to provide recommendations on the composition of the financing team. Phase 4: Prepare Documentation FirstSouthwest will coordinate closing details and post closing duties, including the development of closing memorandum and the final preparation of documents necessary for financing current and future projects. Our participation ensures the creation of documents that will provide credit strength and operating flexibility to the City, security to the investor, and marketability for the underwriter. Additionally, we will assist with the preparation of an Official Statement and other disclosure documents that describe all terms and conditions of the transaction. Phase 5: Coordinate Rating Credit Enhancement Process Because credit rating and credit enhancers are of such importance, we will take great care in preparing information required to be submitted to bond rating agencies and credit enhancers. Additionally, we will consult continually with the City on bond ratings, establish bond- rating goals, monitor bond rating progress, and assist and participate in necessary presentations to help the City achieve the best rating possible. Furthermore, we will coordinate all efforts related to credit enhancers to ensure that bids are based upon the desired structure of the plan of finance. Phase 6: Conduct Marketing and Sale of Debt FirstSouthwest will take the steps necessary to obtain the broadest possible participation in bidding. We ensure that investors and underwriters understand the City's credit and the mechanics of the sale, evaluating such to FirstSouthwest A PlainsCapital Company_ City of Sebastian, Florida determine the most beneficial financing structure. For a negotiated sale, we will represent the City in all areas of pricing and sale. We will assist with the negotiation of covenants, coupons, expenses, takedowns, and yields to ensure that the City's bonds are sold at market rates. Our professionals will conduct pre pricing calls with the City and the underwriters, set marketing priorities, monitor all orders, and balance requests for re- pricing. FirstSouthwest's constant evaluation of alternatives to re- marketing and the implementation of those alternatives, when appropriate, will be highly beneficial to the City. We will recommend approval of final pricing only after our underwriting desk has assured the City that the borrowing has achieved a fair cost of capital for the sale date, based on to- the minute market conditions for that type of security. Phase 7: Ongoing Services Maintain Continual Client Relations As part of FirstSouthwest's comprehensive service, we will continue to offer assistance to the City by: Commenting on the credit implications of local actions and events Developing debt management policies Evaluating financing alternatives Participating in long -range strategic planning for capital improvements and debt structure Developing financial models to analyze the full range of debt funding alternatives Evaluating the appropriateness and benefit of derivative products Identifying cost savings or debt service restructuring opportunities Providing an ongoing link between such parties as underwriters, bankers, insurers, investors, regulators, trade groups, and other issuers Monitor Legislative and Regulatory Changes FirstSouthwest will monitor legislative, economic, budgetary and regulatory changes as they relate to the City and advise as to relevant and beneficial action and participation. Additionally, we will continue to comment on the credit implications of local actions and events, develop debt management policies, evaluate financing alternatives, and evaluate the appropriateness and benefit of derivative products and services. rstSouthwest CaptalCompanr City of Sebastian, Florida LITIGATION OR ADMINISTRATIVE PROCEEDINGS Provide information on any litigation, administrative proceedings or disdplinary actions in which the Firm was a party in any matter related to its professional activities during the past five years. From time to time in the ordinary course of its business, FirstSouthwest is called upon to respond to inquiries or is subject to investigations or proceedings by federal, state or industry self- regulatory organizations. The firm is also involved, from time to time, in civil legal proceedings and arbitration proceedings concerning matters arising in connection with the conduct of its business, To the best of our knowledge, information and belief based upon the facts available at this time, there is no threatened or pending inquiry, investigation, litigation, arbitration or regulatory proceeding that may reasonably be expected to have a material adverse impact on the ability of FirstSouthwest to perform public finance investment banking and advisory service. The Financial Industry Regulatory Authority (FINRA) maintains a public database known as BrokerCheck© that disclbses reportable regulatory matters for FirstSouthwest. BrokerCheck© may be found at www.FINRA.org. 16 RESUMES City of Sebastian, Florida Provide a brief synopsis of the personnel who will provide the services. Indicate their title, physical address where they are normally and the role each one will play. Describe their formal education and their specific experience in rendering services of the nature sought by the City. List other clients currently served by that individual and make an affirmative statement, as to how they will be readily available to serve the City's needs. More detailed resumes should be provided as Appendix B. QUALIFICATIONS OF KEY INDIVIDUALS ASSIGNED TO THE CITY The specializations of our professionals are diverse such that our internal resources alone meet the complete financial needs of our clients. For our engagement with the City, FirstSouthwest offers a staff of experienced and skilled professionals. The specializations of our professionals are diverse such that our internal resources alone meet the complete financial needs of our clients. In line with FirstSouthwest's "team philosophy," the project manager of our team, who will act as an extension of the City's existing staff, will call upon the most qualified personnel firm wide to see that the City receives expert guidance throughout all phases of our engagement. Mr. Edward D. Stull, Jr. will serve as the Project Manager for our engagement with the City. Mr. Stull has more than 23 years of investment banking and public finance experience and is highly qualified to assume the leadership role on our finance team. As Project Manager, FirstSouthwest TIP A PlainsCapital Company. ROJECC MANAGER Edward D. Stull, Jr. Managing Director Orlando Office 23 Years of Experience Mr. Stull will maintain day -to -day communication and expedite the, work effort required of FirstSouthwest on the City's behalf. He will meet with the City's staff and finance team and will make presentations required by the City. While we believe favorably in assigning accountability to the primary Project Manager, our approach to providing services to the City includes involving all our local professionals in the City's financings to draw from the cumulative expertise of our organization and best serve the interests of the City. The professionals listed in the chart below will be involved in our engagement with the City and we affirm that they will be readily available to fulfill the expectations of the City. In line with FirstSouthwest's team philosophy, a diverse and talented team will assist Mr. Stull. Detailed resumes, which include each individual's formal education and specific experience rendering services to issuers similar to the City, have been included as Appendix B. LONG -TERM Peter B. Stare Senior Vice President Dallas Office 32 Years Experience SHORT -77RM REMARKETING Thomas Gallo Senior Vice President New York Office 40 Years Experience Mark P. Galvin Senior Vice President Orlando Office 27 Years of Experience SENIOR SUPPORT TEAM GaryAkers Senior Vice President Orlando Office 29Years of Experience UNDERWRITING CONSULTANT Richard A. De Long Managing Director Dallas Office 29 Years of Experience CREDIT CONSULTANT Mary Katherine C. Sells Vice President Dallas Office lOYears of Experience TECHNICAL BANKER Joellindal Assistant Vice President Orlando Office 4Yearsof Experience Shelley 0. Weiske Senior Vice President Dallas Office 10 Years of Experience 17 REFERENCES Provide five (5) references, for the Firm's work in other Florida municipalities or counties. References must be for currently active clients that use the Firm for Financial Advisory services. A point of contact must be included along with a telephone number. First Southwest believes that strong recommendations from our clients are the most accurate indications of our firm's level of service and expertise. The following are selected client references for which we have provided financial advisory services that will be helpful in assessing our ability to serve the City. insCapital Company.. FirstSouthwestal City of Palm Bay, Florida PalliBaY Lee Feldman City Manager 120 Malabar Road, SE Palm Bay, Florida Telephone: 321.952.3412 Martin County, Florida Ms. Taryn Kryzda, Acting County Administrator 2401 Southeast Monterey Road Stuart, Florida 34996 Telephone: 772.288.5941 Indian River County, Florida Mr. Jason Brown Director of Management and Budget 1801 27th Street Vero Beach, Florida 32960-3365 Telephone: 772.226.1257 City of Miami, Florida City of Fernandina Beach, Florida Pete Chlrcut Treasurer 444 Northwest 2nd Avenue Miami, Florida Telephone: 305.416.1945 Patricia Clifford Controller 204 Ash Street Fernandina Beach, Florida 32034 Telephone: 904.277.7311 City of Sebastian, Florida 18 Appendix A Pricing and Fees HOME OF PELICAN ISLAND Z51 252) $17,500 for the first $10,000,000 of debt instruments issued, plus $1.00 per $1,000 for amounts over $10,000,000 of debt instruments issued Minimum $17,500 per transaction Appendix A APPENDIX A PRICING AND FEES Include a chart or table indicating the pricing and fees that will be offered to the City. Include hourly rates charged for various personnel categories, as well as fees per $1,000 of bonds issued. Quoted pricing and fees are not a component of the scoring criteria but they will be used in contract negotiations. The City anticipates that agreed upon prices will be firm for the length of the contract. The fees due to FirstSouthwest for the services with respect to each issuance of Debt Instruments during the term of this Agreement shall be calculated in accordance with the schedule set forth below. Unless specifically provided otherwise herein or in a separate written agreement between the Issuer and FirstSouthwest, such fees, together with any other fees and may have been mutually agreed upon and all expenses for which FirstSouthwest is entitled to reimbursement, shall become due and payable concurrently with the delivery of the Debt Instruments to the purchaser. The fees due to FirstSouthwest for Specific Debt Financings will not exceed those contained in our customary fee schedule as listed below:( Compensation on a time and expenses basis, for non -bond related services, FirstSouthwest's hourly fee schedule, plus out-of-pocket expenses is as follows: Position Rate per Hour Senior Vice President and above: Vice President: Assistant Vice President: Analyst: Administrative Staff: FirstSouthwest $225.00 $195.00 $1 $125.00 60.00 Due to the nature of financial advisory services and our business, FirstSouthwest will bill the City in one quarter hour increments. In addition, FirstSouthwest will act as sole bidding agent for the structuring and investment of certain Debt Instrument proceeds. FirstSouthwest agrees to structure and conduct all bids for any of the funds authorized by the Debt Instrument documents and to comply with Treasury Regulation 1.148 -5 that applies to computing the yield and value of such investments and determine required documentation. The successful investment provider shall pay FirstSouthwest a fee equal to 0.05 percent of the weighted average dollar amount reasonably expected to be invested each year of the investment agreement. The fee paid by the winning provider will be the only compensation received by FirstSouthwest in connection with its engagement of a bidding agent. The payment of charges for financial advisory services described under Specific Debt Financings, of the foregoing Agreement shall be contingent upon the delivery of the debt instruments and shall be due at the time that the debt !r 1 Appendix A instruments are delivered. The payment of charges for other services shall be due and payable in accordance with the mutual agreement therefor between FirstSouthwest and the Issuer. The Issuer shall be responsible for the following ancillary expenses, if and when applicable, whether they are charged to the Issuer directly as expenses or charged to the Issuer by FirstSouthwest as reimbursable expenses: Bond counsel Disclosure counsel Bond printing Bond ratings Computer structuring Credit enhancement The charges for ancillary expenses, including computer structuring and official statement printing, shall be levied only for those services which are reasonably necessary in completing the transaction and which are reasonable in amount, unless such charges were incurred at the specific direction of the Issuer. The payment of reimbursable expenses that FirstSouthwest has assumed on behalf of the Issuer shall NOT be contingent upon the delivery of bonds and shall be due at the time that services are rendered and payable upon receipt of an invoice therefore submitted by FirstSouthwest. FirstSouthwest A PlainsCapfai Company_ CPA fees for refunding Official statement preparation and printing Paying agent/registrar /trustee Travel expenses Underwriter and underwriters counsel Miscellaneous, including copy, delivery, and phone charges (2- Appendix B Detailed Resumes ROME OF PELICAN ISLAND APPENDIX B DETAIL RESUMES Include detailed resumes of the personnel who will provide the services, showing education, relevant experience, credentials, certifications, licenses, etc. RESUMES OF KEY PERSONNEL The following are resumes of the key personnel who will provide financial advisory services to the City. Edward D. Stull, Jr. Managing Director 20 North Orange Avenue, Suite 1209 Orlando, Florida 32801 Direct: 407.426.9611 Fax: 407.426.7835 estull @firstsw.corn Experience: Mr. Edward D. Stull, Jr., has been with FirstSouthwest since 2001 and has 23 years of experience in public finance, specializing in the areas of cities; counties; transportation and toll financing; water, sewer, and stormwater utilities; special assessments; CRAs; not- for profit organizations; and not for profit healthcare. Mr. Stull has provided services for issuers such as the Cities of Miami, Sunny Isles Beach, Inverness, Cocoa Beach, and Fernandina Beach, Florida; Sarasota County; Martin County; Indian River County; Taylor County; Lake County; DeSoto County; Miami -Dade County Expressway Authority; Orlando Orange County Expressway Authority; Oklahoma Transportation Authority; Buffalo and Fort Erie Public Bridge Authority (Peace Bridge); Tampa- Hillsborough County Expressway Authority; and the Florida Ports Financing Commission. In 2003, Mr. Stull structured and served as lead financial advisor on the $1.07 billion financing for the Orlando Orange County Expressway Authority, a complex financing that received recognition at The Bond Buyer's "Deal of the Year" dinner as one of the 10 most innovative deals in the country for 2003. Prior to joining FirstSouthwest, in addition to serving as a financial advisor for two regional investment banking firms, Mr. Stull served as a relationship manager with SunTrust Bank, where he specialized in providing direct bank loans, letter of credit, investments, cash management and interest rate hedging products to a variety of clients in the Governmental and Institutional markets. Professional Activities and Memberships: Mr. Stull is an active member of the International Bridge, Tunnel and Turnpike Association and is involved locally in various FirstSouthwest 4:10 A PlainsCapital Company. Appendix B charitable organizations serving the Central Florida community. Education: Mr. Stull earned a Bachelor of Science in Finance from the University of Florida. Supplemental Education: As part of his and the firm's FINRA registrations, Mr. Stull participates in mandatory industry- standard continuing education programs and examinations. He also participates in educational courses given during conferences and workshops. Licenses Held: Mr. Stull is a Registered Representative of FINRA, licensed as a Municipal Securities Principal (Series 53), General Securities Representative (Series 7), and a Uniform Securities Agent (Series 63). Gary Akers Senior Vice President 20 North Orange Avenue, Suite 1209 Orlando, Florida Direct: 407.426.9611 Fax: 407.426.7835 gakers @firstsw.corn Experience: Mr. Gary Akers joined the industry in 1978 and FirstSouthwest in November 2007. Mr. Akers serves as Senior Vice President in our Orlando office. Mr. Akers' experience includes managing the Winter Park, Florida office for Stifel Nicolaus, a NYSE registered investment banking firm, managing the Orlando office for Evensen Dodge, a national financial advisory firm and serving as an Executive Vice President at Southeastern Capital Group in Orlando. He has served as a financial advisor to numerous counties, cities, municipalities, airports, utility authorities, solid waste facilities and special tax districts throughout Florida and currently serves as financial advisor to Charlotte County, DeSoto County and the Peace River /Manasota Regional Water Supply Authority, among many others. His experience includes financing utilities, solid waste issues, airports, transportation and tourist development/civic center projects, tax increment redevelopment projects and general obligation financings. Education: Mr. Akers earned a Bachelor of Business Administration degree with a major in Accounting and 1 2 55 Economics from Marshall University in Huntington, West Virginia. Licenses Held: Mr. Akers is a Registered Representative of the FINRA, licensed as a General Securities Representative (Series 7) and a General Securities Principal (Series 24). Mark P. Galvin Senior Vice President 20 North Orange Avenue, Suite 1209 Orlando, Florida 32801 Direct: 407.426.9611 Fax: 407.426.7835 mgalvin @firstsw.com Experience: Mr, Mark P. Galvin is a Senior Vice President in FirstSouthwest's Orlando office and has been with FirstSouthwest for more than 6 years. Prior to joining FirstSouthwest, Mr, Galvin served for seven years as Vice President for Wachovia Securities in Orlando, Florida, Prior to joining Wachovia Securities, Mr, Galvin was an Assistant Vice President with PaineWebber's Florida Investment Banking group and a Vice President with Southeastern Municipal Bonds, With more than 26 years of investment banking and financial advisory experience, Mr. Galvin is knowledgeable in all aspects of municipal finance including: utility bonds, certificates of participation, general obligation bonds, higher education and healthcare financings, airport revenue bonds, storm water, and general infrastructure financings. His background includes the structuring of numerous complex advance refundings. Education: Mr. Galvin earned a Bachelor of Science in Business Administration and a Master of Business Administration from the University of Central Florida. Licenses Held: Mr. Galvin is licensed with the Financial Industry Regulatory Authority "FINRA as a General Securities Representative (Series 7), Municipal Securities Representative (Series 52), and a Uniform Securities Agent (Series 63). First Southwest fa Appendix B Joel Tindal Assistant Vice President 20 North Orange Avenue, Suite 1209 Orlando, Florida 32801 Direct: 407.426.9611 Fax: 407.426.7835 jtindal @firstsw.com Experience: Mr, Joel Tindal joined FirstSouthwest in 2005 as an Analyst. His primary responsibility is to prdvide quantitative analysis to the firm's senior professionals which includes debt structuring, refunding analysis, escrow defeasance, cash flow models, credit analysis, and continuing disclosure for airports, cities, counties, expressway authorities, higher education, ports, and utilities, Since joining FirstSouthwest, Mr. Tindal has participated in more than $2 billion in municipal transactions including fixed and variable rate municipal bonds, private placements, and interest rate swaps. He also developed an integral cash flow model used to negotiate a public private partnership concession agreement. Education: Mr. Tindal graduated cum laude with a Bachelor of Science in Business Administration majoring in Finance from the University of Florida, Licenses Held: Mr, Tindal is a registered representative of the FINRA and is licensed as a General Securities Representative (Series 7), and a Uniform Securities Agent (Series 63). The following resumes detail the qualifications, experience and certifications of the support element of the proposed financial advisory team. Peter B. Stare Senior Vice President 325 North St. Paul Street, Suite 800 Dallas, Texas 75201 Direct: 214.953.4040 Fax: 214.954.4339 pstare @firstsw.com Experience: Mr. Peter B. Stare joined FirstSouthwest in 1996 as Director of the Municipal Underwriting Department. He is responsible for the competitive and negotiated underwriting efforts of both tax- exempt and taxable municipal issues. 2 Mr. Stare has been involved in the securities industry since 1976 in the areas of sales, trading, underwriting, and portfolio management. During this time, he has worked with several regional and nationally recognized firms managing their trading desks, municipal bond departments, and investment divisions. Professional Activities and Memberships: Mr, Stare is a past trustee for the Municipal Advisory Council of Texas and a past President of the Municipal Bond Clubs of Dallas and Houston. Education: Mr. Stare graduated from Southern Methodist University with a Bachelor of Business Administration. Licenses Held: Mr. Stare is a Registered Representative of FINRA, licensed as a General Securities Representative (Series 7), a General Securities Principal (Series 24), a Municipal Securities Principal (Series 53), and a Uniform Securities Agent (Series 63). Thomas Gallo Senior Vice President 250 West 57th Street, Suite 1420 i New York, New York 10107 Phone: 212.642.4350 Fax: 212.642.4357 tgallo@firstsw.com Experience: Mr. Thomas Gallo has worked in the municipal securities industry for more than 40 years. He has managed short term groups including Merrill Lynch; Dillon Read; and JP Morgan, where he managed a portfolio of more than $90 billion in remarketing assignments for more than 1,200 clients. His experience extends to all structures of variable rate debt. Some of Mr. Gallo's direct client relationships include the States of California, Michigan, New York and their agencies; Dormitory Authority of the State of New York; the City of New York; the Metropolitan Transit Authority of New York; Indiana Bond Bank; the Methodist Hospital System of Houston; the University of California; State Board of Regents of the University of California; Department of Water Resources of California; Stanford University; Harvard University; University of Pittsburgh; Kaiser Permanente; BATA; and the Michigan Municipal Bond Authority. FirstSouthwest4 A PlalnsCapltal Company_ Appendix B Licenses and Education: Mr. Gallo is a registered representative of FINRA, licensed as a General Securities Representative (Series 7), a Uniform Securities Agent (Series 63), and Municipal Securities Principal (Series 53). Mr, Gallo attended St. John's University and Wagner College in New York. Supplemental Education: As part of his and the firm's FINRA registrations, Mr. Gallo participates in mandatory industry- standard continuing education programs and examinations. He also participates in educational courses given during conferences and workshops. Richard A. DeLong Managing Director 325 North St. Paul Street, Suite 800 Dallas, Texas 75201 Direct: 214.953.4040 Fax: 214.954.4339 rdelong @firstsw.com Experience: Mr. Richard A. DeLong joined FirstSouthwest in 1994 as the Director of Municipal Trading and Underwriting. His current responsibilities include short -term trading and underwriting, including the remarketing of more than $1.5 billion in variable rate demand obligations. He has been involved in municipal underwriting and trading for more than 29 years. Prior to joining FirstSouthwest, Mr. DeLong held the position of Senior Vice President and Manager of Municipal Trading and Underwriting at Principal /Eppler Gueren Turner in Dallas for seven years. Mr. DeLong also was the head trader for the Southwest region of Dean Witter in Dallas and formerly headed Municipal Underwriting and Trading at Banc Texas in Dallas. Mr. DeLong is regarded as one of the top traders of municipal debt in the Southwest United States. Education: Mr. DeLong earned a Bachelor of Science degree in Business from the University of Texas at Dallas. Licenses Held: Mr, DeLong is a Registered Representative of the FINRA, licensed as a General Securities Representative (Series 7), General Securities Sales Supervisor (Series 9 and 10), Municipal Securities Representative (Series 52), Municipal Securities Principal (Series 53), and a Uniform Securities Agent (Series 63). C -25 FirstSouthwest PlaInsCapital Company,. Mary.Katherine C. Sells Vice President 325 North St. Paul Street, Suite 800 Dallas, Texas 75165 Direct: 207.799,7117 Fax: 207.799.3773 msellsgirstsw.com Experience: Ms. Mary-Katherine C. Sells joined FirstSouthwest in 2005 as a Vice President for credit research. Ms. Sells has worked extensively with local governments, utilities, school districts, and other not-for- profit entities preparing credit evaluations. A focus of her work is in the compilation of detailed reviews, including credit assessments and debt capacity studies, in the areas of higher education, healthcare, and other not-for- profit institutions. Credit analysis is also provided for other governmental entities, including municipalities, counties, enterprise systems, and transportation issuers. Prior to joining FirstSouthwest, Ms. Sells was with George K. Baum and Company in Denver for 16 years, where she was responsible for credit and debt capacity evaluation for a diversity of sectors. In addition, she compiled and produced rating and enhancement presentations for healthcare, higher education, local government, school district, and utility clients, as well as provided credit support for ongoing client requests. Previous to her association with George K. Baum and Company, Ms. Sells worked with Mobil Oil Corporation in their Production and Exploration division, Education: Ms. Sells earned a Master of Business Administration with a concentration in finance from the University of Denver and a Bachelor of Science from Boston College. Licenses, Memberships and Professional Activities: Ms. Sells is licensed by the Financial Industry Regulatory Authority as a General Securities Representative (Series 7) and a Uniform Securities Agent (Series 63). She is a Appendix B member of the National Federation of Municipal Analysts (NFMA) and will serve on the NFMA Board of Governors for the 2009-2010 term. Shelley D. Weiske, CPA Senior Vice President 325 North St, Paul Street, Suite 800 Dallas, Texas 75201 Direct: 214.953.8756 Fax: 214,840.5040 sweiske@firstsw.corn Experience: Shelley D. Weiske has more than ten years of experience with the federal arbitrage rebate regulations and serves as the primary contact for issuers, while also providing technical support to the department. Ms. Weiske also provides arbitrage consultation and education services to clients, explaining the application of the arbitrage regulations and assisting issuers with the implementation of computational/internal reporting procedures to ensure their compliance with the rebate requirements. Prior to joining FirstSouthwest, Ms. Weiske worked at Gilmore Bell, P.C., in Kansas City, Missouri, as the Senior Financial Analyst in its arbitrage rebate group, joining its practice after spending several years as an Escrow Verification Agent at Donnelly Meiners Jordan Kline (now McGladrey Pullen LLP) in Kansas City, Missouri. Education: Ms. Weiske earned a BBA in Finance and Accounting from Ashland University in Ashland, Ohio, in May 1995. Licenses: Ms. Weiske is a licensed CPA and is registered with the FINRA as a General Securities Representative (Series 7), General Securities Principal (Series 24), and a Uniform Securities Agent (Series 63). 4 Subject: LoPresti Aviation Lease Modification A r d for Submittal by: r K4 Agenda No. 0 c'.6 7 2/ I D 013 Department Origin: Airport Director: Finance Director: City Clerk: S. Maio City Attorney: R. Date Submitted: For Agenda of: Municipal Al; rt J. Griffin „4 K. Kiligore J A. Ginsburg 7 i i' r, City Manager January 5, 2010 January 13, 2010 Exhibit: EXPENDITURE REQUIRED: -0- AMOUNT BUDGETED: -0- APPROPRIATION REQUIRED: -0- art of HOME OF PELICAN ISLAND AGENDA TRANSMITTAL BACKGROUND In the spring of 2008, LoPresti Aviation signed a lease agreement with the city to occupy a 'wing' of the airport admin building and a, to be built, hanger /manufacturing facility (Hanger 'A'). The original LoPresti move -in date was January 2009. The Hanger A project had a delay in its start and the LoPresti move -in to the hanger was delayed until September 1, 2009. In an effort to mitigate possible damages related to the city's obligations under the lease contract, LoPresti was offered, and accepted, gratis occupancy in the airport admin building 'wing' for their admin /marketing efforts. LoPresti had previously made arrangements with their Vero Beach facility and they needed office space that the city had previously committed to them. In addition, an economic development incentive plan was signed by LoPresti and the city in the Spring of 2008. That plan provided for monetary incentives if LoPresti increased their workforce in Sebastian to 45, within 9 months of full Sebastian operations. The economic downturn facing our city, state, and nation is well documented. Especially hard hit is the General Aviation (GA) sector of our nation's economy. Unfortunately, this downturn hit LoPresti Aviation especially hard. An integral part of their business is the OEM market the Original Equipment Manufacturer. LoPresti produces various products for Beechcraft, Cessna, and Cirrus, among others, in new production aircraft. A very brief analysis of what is happening to those companies is nothing short of an economic catastrophe. The situation is analogous to the debacle of the US auto industry in early 2009, AND the trickle down economic tsunami of what happened to their suppliers. With specific reference to the troubled GA industry, LoPresti informed airport staff that their financial hardship leading to the rent deferment request was due to the gross loss of approximately $100,000 per month to manufacturing supplier contracts with major GA companies including Beechcraft, Cessna, and Cirrus. That, more -or -less, only describes the first financial problem. Another facet of the LoPresti business is the 'after- market' products they produce. These FAA approved 'after- market' products serve the GA flying public with aircraft modifications that improve aircraft efficiency regarding speed, performance, and fuel consumption. That market is largely 'discretionary income' dependent. A very brief overview of aircraft trade publications, such as Trade -A- Plane, show that a huge number of aircraft for sale do not have current/annual maintenance requirements in place. This indicates that individuals /corporations are parking their aircraft, let alone buying 'after- market' additions for their aircraft. It is painfully apparent that LoPresti has taken a double blow from the OEM market and the `after market' sectors of GA. 3. Option 3: SUMMARY Referencing the above, in December 2009, LoPresti approached airport staff soliciting financial deferral, in whole or in part, of monetary lease requirements. Staff sought to investigate the LoPresti loss of their OEM business. A few cursory phone calls reinforced the position that the GA sector of our nation's economy is at a critical stage, and that LoPresti has lost a significant portion of its business with Beechcraft, in particular. Beechcraft has closed assembly plants, laid off ,a large number of workers as they discontinued lines resulting from canceled orders. There is no doubt that LoPresti Aviation is also at a critical stage. Airport staffs position is that relief is appropriate given the situation but that a firm commitment by LoPresti to ultimately honor its agreement is also appropriate. It is important to remember that the airport operates as an enterprise without impact on the General Fund. Full disclosure requires identification of the fact that the airport borrowed $285,000 as the 20% `match funds' required to build the hanger currently occupied by LoPresti. The payback on that 'loan' is amortized over 30 years with the first 5 years as interest only. That schedule was approved by Council on 24 September 2008 as Resolution R- 08 -20. In brief, below outlines some of the points of interest with reference to the "LoPresti Lease" arrangement: Lease Payments Began in September 2009; Monthly Lease Payments total $3,700 per month; The General Fund is not affected by the LoPresti Lease Deferred Lease Payments from LoPresti may prevent the AP Fund from balancing in FY 2010, but may not necessarily be a financial hardship; LoPresti, if rent deferment is provided, will still be required to pay utilities; LoPresti employees 22 employees in the Sebastian location. Attached hereto is a spreadsheet which outlines the financial impact of several rent deferment options. Essentially three deferment plans are provided for Council Consideration. LOPRESTI REQUESTED: 1. Option 1: 9 months no rent, Month 10 pay full rent and start repay at $1000 /month 2. Option 2: 6 months no rent, Months 7 -12 50 Pay back at $750 /month STAFF PROVIDES THIS OPTION: Months 1 -4 No Rent Months 5 -8 50% Rent Payment Months 9 -12 75% Rent Payment Rent Payback at $1,000 /Month RECOMMENDED ACTION Consider request and approve LoPresti Lease Amendment #1 for Rent Deferment Option #3. ITEM SQUARE FOOTAGE Administrative Space 1,800 Hanger Space 15,000 TOTAL ANNUAL MONTH JAN 3,700 FEB 3,700 MAR 3,700 APR 3,700 MAY 3,700 JUN 3,700 JUL 3,700 AUG 3,700 SEP 3,700 OCT 3,700 NOV 3,700 DEC 3,700 TOTAL $44,400 MONTH JAN 2011 -JUN 2013 2013 JUL 2013 AUG *Assume no CPI Increase in Base Rent MONTH JAN 2011 AUG 2014 $3,700 2014 SEP $3,700 2014 OCT $3,700 *Assume no CPI Increase in Base Rent MONTH JAN 2011 JAN 2013 2013 FEB 2013 MAR *Assume no CPI Increase in Base Rent LoPresti Lease Rent Deferral Options CURRENT LEASE TERMS UNIT COST $8.00 $2.00 OPTION 1 (LoPresti Rent Deferment Offer) ANTICIPATED RENT DEFERRAL AMOUNT DEFERRAL REPAYMENT 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700 OPTION 2 (LoPresti Rent Deferment Offer) ANTICIPATED RENT DEFERRAL AMOUNT $750 $300 $0 0 $30,300 ANNUAL COST $14,400 $30,000 $44,400 BASE RENT' DEFERRAL REPAYMENT NEW RENT 30.3 MONTHS $3,700 $1,000 $4,700 $3,700 $300 $4,000 $3,700 $0 $3,700 NEW PAYMENT JAN 3,700 3,700`- 0 FEB 3,700 3,700', 0 MAR 3,700 3 700 0 APR 3,700 ka b 3,700 0 MAY 3,700 y 3,700; 0 JUN 3,700 3,700'. 0 JUL 3,700 "1,850_ 1,850 AUG 3,700 1,850` 1,850 SEP 3,700 1`,850: 1,850 OCT 3,700 1,850.' 1,850 NOV 3,700 n 1,850: 1,850 DEC 3,700 1,850 1,850 TOTAL $44,400 $33,300 $11,100 MONTH BASE RENT' DEFERRAL REPAYMENT NEW RENT 44.4 MONTHS NEW PAYMENT 0 0 O 0 O 0 O 0 O 0 0 0 O 0 O 0 O 0 1000 4,700 1000 4,700 1000 4,700 $14,100 $4,450 $4,000 $3,700 OPTION 3 (Staff Counter -Offer) MONTH ANTICIPATED RENT DEFERRAL AMOUNT NEW PAYMENT JAN 3,700 3,700 0 FEB 3,700 3,700 0 MAR 3,700 3,700 0 APR 3,700 3,700 0 MAY 3,700 1,850 1,850 JUN 3,700 1,850 1,850 JUL 3,700 1,850 1,850 AUG 3,700 1,850 1,850 SEP 3,700 925 2,775 OCT 3,700 925 2,775 NOV 3,700 925 2,775 DEC 3,700 925 2,775 TOTAL $44,400 $25,900, $14,800 BASE RENT' DEFERRAL REPAYMENT NEW RENT 25.9 MONTHS $3,700 $1,000 $4,700 $3,700 $900 $4,600 $3,700 $0 $3,700 WITNESSETH: FIRST AMENDMENT OF AVIATION LEASE AGREEMENT THIS FIRST AMENDMENT of the AIRPORT AVIATION LEASE AGREEMENT (hereinafter "Lease by and between the CITY OF SEBASTIAN (hereinafter "Landlord and LoPresti Aviation (hereinafter "Tenant dated 2 April 2008, and provides as follows: WHEREAS, the Landlord is the owner of certain property located in Indian River County, Florida; and WHEREAS, the Landlord agreed to lease such property under the terms of the Lease to Tenant; and, WHEREAS, the Tenant wishes to modify, Section 4 of said Lease; and, WHEREAS, Landlord and Tenant are mutually agreeable to said modification; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: 1. Section 4 of the Lease is hereby amended by the addition of the following: 4. RENT A rent abatement program shall provide for: (Insert Program as Authorized by Council) IN WITNESS WHEREOF, the parties hereto have set their hands and seals this 13 day of January 2010. ATTEST: CITY OF SEBASTIAN A Municipal Corporation Sally Maio, MMC Al Minner, City Manager Approved as to Form and Legality for TENANT Reliance by the City Of Sebastian only: LoPresti Aviation Robert A. Ginsburg, City Attorney Curtis LoPresti, President 1 FRANK ROMEO and CONNIE YANG, v. CITY OF SEBASTIAN, Respondent. IN THE CIRCUIT COURT FOR THE NINETEENTH JUDICIAL CIRCUIT IN AND FOR INDIAN RIVER COUNTY, FLORIDA. APPELLATE DIVISION Circuit Case No. 2008 -2262 CA25 Petitioners, Not final until time expires for filing motion for rehearing, and if filed, disposed of. Decision filed January 4, 2010. Petition for writ of certiorari to the Board of Adjustment for the City of Sebastian. Elizabeth S. Brooker, Brooker Rooney, P.A. Vero Beach, for petitioners. Robert Ginsburg, City Attorney, Sebastian, for respondent. BAUER, J. The Petitioners built a home in Sebastian River Landing, which is a planned unit development governed by a homeowner's association. The Petitioners' planned to put in an air conditioned pool. The City of Sebastian "City granted them a permit to construct the pool on September 19, 2006. In May 2007, the City issued a permit for construction of the pool enclosure, which was built. SeaBreeze Pools, Inc. built the pool, which backs up to a retention pond. When the Petitioners contracted for the construction of their home, the contractor "flipped" the design without the knowledge or permission of the Petitioners. Since the contractor flipped the design, the area available for a pool was much smaller than originally planned and approved. The pool is 9.29 feet from the property line. There is dispute over whether the setback is ten feet or twenty feet. The normal setback for a pool is ten feet, but if the pool enclosure is deemed an attached structure, it would require a 1 IQ. X 04 twenty foot setback. If there is a ten foot setback, the Petitioners need a variance of .71 feet (8.5 inches). If there is a twenty foot setback, then the Petitioners need a variance of 9.29 feet. The Petitioners investigated the possibility of changing the roof structure of the enclosure, but they were told by pool contractors that it cannot be done. On July 30, 2007, they applied for a variance with the City. On August 1, 2008, the City issued a public notice, and on August 13, 2008, the City held a quasi judicial public hearing on the matter. The City entered an Order denying the Petitioners' request for a variance. The standard of review applied to an administrative decision is whether procedural due process was afforded, whether the essential requirements of the law were observed, and whether the findings and judgment were supported by competent substantial evidence. Haines City Community Development v. Heggs, 658 So.2d 523, at 530 (Fla. 1995). Petitioners argue that the City's decision should be set aside because the City based its decision on statements in opposition from the general public and a poll of those in attendance at the hearing. Regarding the issue of polling, both parties cite City of Apopka v. Orange County, 299 So. 2d 657 (Fla. 4th DCA 1974). In Apopka, a tri -city airport authority applied for a special exception to build an airport in an agricultural district. The authority presented evidence before the county commission that there was a public need for the airport and that the selected site was the best available based on an evaluation of nine different factors and the input of federal and state agencies. Opposing the airport were several owners within the area who expressed concern about possible changes in zoning, anticipated noise, and construction costs in the area. None of the testimony was sworn or subject to cross examination. Thirty five others showed up to object but did not testify. A petition opposing the airport with 200 signatures was also submitted to the commission. The county commission voted to deny the permit on grounds that the airport "would adversely affect the general public and would be detrimental to the public health, safety, comfort, order, convenience, prosperity and general welfare Id. at 658. On certiorari review, the court noted that the purpose of a quasi- judicial hearing was not to conduct a poll of neighbors, but to make findings on the affect of the proposed airport and rule on the special exception based on those findings. Id. at 659 -660. The court held the county commission failed to make findings of fact, and the only evidence in opposition to the airport was lay opinion unsubstantiated by competent facts. Therefore, there was no competent, substantial evidence to support the commissions' decision. Id. at 660. Similarly, in Flowers Baking Co. v. Melbourne, 2 537 So. 2d 1040 (Fla. 5th DCA 1989), the court held that local resident's objections to a conditional use permit for a gas station based on fears it would increase traffic was not competent, substantial evidence that a permit was adverse to the public interest. In the instant case, the Petitioners argue that the City should have based its opinion on the facts in front of them, not public opinion. Specifically, the Petitioners argue that the City should not have allowed a poll of those in opposition to be taken. "A mere poll of the neighboring landowners does not serve to assist the board in determining whether the exception applied for is consistent with the public convenience or welfare or whether it will tend to devalue the neighboring property." Apopka, 299 So. 2d at 656. A citizen who spoke in opposition at the meeting asked those who agree with her to stand. Then when she was finished, another citizen asked for a count of those who stood. A council member asked the city attorney if this was a regular practice, and the city attorney stated that "the courts hate it." Consequently, an official polling did not happen, and a discussion of polling did not occur leading up to the vote. Therefore, the petition should not be granted on these grounds. The Petitioners argue that the City's decision is not supported by substantial competent evidence, as required by Heggs. 658 So.2d 523 at 530. Both the Petitioners and the City cite Marion County v. Priest, 786 So. 2d 623 (Fla. 5th DCA 2001). In Priest, the applicant sought a special use penult to construct a well and water transfer station for pumping water to be sold as bottled water. The matter was taken before the county commission, which heard testimony from the applicant's experts and three county landowners, who complained about the past reduction in the aquifer level and the effect a new pumping station would have on water levels. Id. at 625. The county commission denied the permit, and on certiorari, the circuit court reversed, holding that the only competent evidence presented to the commission was the testimony of the applicant's experts. The district court reversed, holding that the circuit court erred by rejecting the testimony of the landowners, because their testimony was fact -based and not mere generalizations. Id. at 627. The Petitioners use Priest to argue that the testimony of the neighbors is mere generalizations, while the City claims the testimony is fact based. Relevant fact -based statements, whether expert of not, are to be considered." City of Hialeah Gardens v. Miami Dade Charter Foundation, Inc., 857 So. 2d 202 (Fla. 3d DCA 2003). "Maps, reports and other information which, in conjunction with the testimony of neighbors, if 3 believed by the Commission, constituted substantial competent evidence." Metropolitan Dade County v. Sportacres Development Group, Inc., 698 So. 2d 281, 282 (Fla. 3d DCA 1997). In the instant case, three neighbors testified in opposition of the Petitioners. The President of the homeowner's association's testimony dealt mostly with the fact that the Petitioners and City have bypassed the homeowner's association level of approval, and he indicated that there are several issues that the association should have had a chance to resolve before the issue ever came before the City. He also testified to his poor opinion of the structure, as well as its effects on the neighborhood. A real estate broker and another real estate professional testified about how potential buyers for other homes on the street all ask about the "eyesore," referring to the Petitioners' home, the location of the home in a prominent part of the neighborhood, and how the home compared to other properties in the neighborhood. The Third District Court in Allapatta Community Association, Inc. v. City of Miami stated "...those who own property and live in a residential area have a legitimate and protectable interest in the preservation of the character of their neighborhood which may not be infringed by an unreasonable or arbitrary act of their government." 379 So. 2d 387, 392 (Fla. 3d DCA 1980). In addition to the neighbors' testimony, the City had other evidence to consider. The HOA president submitted a copy of the plat with highlighted portions, and the Petitioners submitted pictures. Also, the City's staff prepared a report. Pursuant to the Sebastian Land Development Code Section 54- 1 -2.5, in order to authorize any variance from the terms of the land development regulations, the City must find the following: a. Existence of special conditions or circumstances. That special conditions and circumstances exist which are peculiar to the land, structure, or building involved and which are not applicable to other lands, structures, or buildings in the same zoning district. b. Conditions not created by applicant. That the special conditions and circumstances do not result from the actions of the applicant. c. Special privileges not conferred. That granting the variance requested will not confer on the applicant any special privilege that is denied by this ordinance to other lands, buildings, or structures in the same zoning district. Hardship conditions exist. That literal interpretation of the provisions of the ordinance would deprive the applicant of rights commonly enjoyed by other 4 properties in the same zoning district under the terms of the ordinance and would create unnecessary and undue hardship on the applicant. e. Only the minimum variance granted. That the variance granted is the minimum variance that will make possible the reasonable use of the land, building, or structure. f. Not injurious to the public welfare or intent of ordinance. That the granting of the variance will be in harmony with the general intent and purpose of the comprehensive plan and this code, and that such variance will not be injurious to the area involved or otherwise detrimental to the public welfare. g. Conditions and safeguards may be imposed. In granting any variance, the board of adjustment may prescribe appropriate conditions and safeguards in conformity with chapter 163 F.S., the comprehensive plan, and any ordinance enacted under its authority. Violation of such conditions and safeguards, when made a part of the terms under which the variance is granted, shall be deemed a violation of the ordinance. h. Time limit may be imposed. The board of adjustment may prescribe a reasonable time limit during which the applicant shall commence and/or complete the subject actions and conditions approved by the board. No use variance permitted in specified instances. Under no circumstances shall the board of adjustment grant a variance to permit a use not generally permitted in the zoning district involved or any use expressly or by implication prohibited by the terms of the ordinance in the zoning district. No nonconforming use of neighboring lands, structures, or buildings in the same zoning district and no permitted use of lands, structures, or buildings; in other zoning districts shall be considered grounds for the authorization of a variance. The Petitioners failed to put forth evidence as described by the above criteria. According to Dusseau v. Metropolitan Dade County Bd of County Com'rs, 794 So. 2d 1270, 1275 `Fla. 2001), the reviewing court should not reweigh the evidence: Instead of simply reviewing the Commission's decision to determine whether it was supported by competent substantial evidence, the court also reviewed the decision to determine whether it was opposed by competent substantial evidence. The circuit court then substituted its judgment for that of the Commission as to the relative weight of the conflicting evidence. The circuit court thus usurped the fact finding authority of the agency. 5 (c) Based on the above stated standard, the City's decision is supported by substantial competent evidence. The Respondent presented a variety of substantial competent evidence: neighbor testimony, a plat map, pictures, and a staff report. The Petitioners did not present evidence addressing the criteria necessary for a variance as stated in the Sebastian Land Development Code Section 54- 1 -2.5. Therefore, the findings and judgment of the City were supported by competent substantial evidence, as required by Heggs. 658 So.2d at 530. Affirmed. MCMANUS, J., and ROBERTS, Acting Circuit Judge, concur. Copies of above decision were furnished to the attorneys/parties of record on the same date the decision was filed. 6