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HomeMy WebLinkAbout09122012 Agenda1 of 92 2 of 92 3 of 92 4 of 92 SEBASTIAN CITY COUNCIL MINUTES FY 2012-2013 BUDGET WORKSHOP/SPECIAL MEETING MONDAY, AUGUST 20, 2012 - 5:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Hill called the Budget Workshop to order at 5:30 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Jim Hill Vice-Mayor Don Wright Council Member Andrea Coy Council Member Richard H. Gillmor Council Member Bob McPartlan Staff Present: City Manager, Al Minner City Clerk, Sally Maio Administrative Services Director, Debra Krueger Community Development Director, Joseph Griffin Finance Director, Ken Killgore Golf Course Director, Greg Gardner Police Chief, Michelle Morris Parks Supervisor, Chris McCarthy Public Works Director, Jerry Converse MIS Senior Systems Analyst, Barbara Brook-Reese Also Present: Ed Herlihy, Chairman, Citizen Budget Review Advisory Board 4. EMPLOYEE GROUP HEALTH INSURANCE OVERVIEW & RECOMMENDATIONS BY THE GEHRING GROUP The City Manager advised Council that due to the cancellation of the August 8, 2012 meeting, this item, which the Council would be requested to act on at their August 22, 2012 meeting, had been placed on the agenda for an initial presentation of alternative insurance plans. Christian Bergstrom, Director of Analytical Services, The Gehring Group, gave a Power Point presentation on proposed employee insurance plans (see attached). He reported that an RFP had been sent out and no medical insurance proposals were returned, however, proposals had been submitted for other plans. He said for 2010- 2011 the City had a 174% increase in claims, though in 2011 and 2012, which were still high, they had started to come down. 5 of 92 2 City Council Budget Workshop August 20, 2012 Page Two Mr. Bergstrom said that since all proposers declined to submit a quote, it was recommended that the City stay with Blue Cross and transition to an alternate Health Plan with an increase to out of pocket utilizing the City provided Health Reimbursement Account for employees from $750 to $1500 per individual and $1500 to $3000 for families, which means the City will fund 100% of the deductible. He said with Dental it is recommended the City move to Assurant, Vision remain with Florida Blue, and Life, though it states Cigna, would actually move to The Hartford. He said wellness would continue at 100% coverage if coded as a preventive service. Mr. Gillmor asked how the RFP was structured, and Mr. Bergstrom responded it was requested they propose duplicate coverage and if they could not do so, make an alternative proposal, and that there are companies out there that look like this current coverage. Mr. Gillmor said companies do not want to use companies like Gehring, citing his discussions with Florida League of Cities, where he was advised they do not use them. Mr. Bergstrom said The Gehring Group has fifteen accounts with Florida League of Cities. Mr. Gillmor said he called BCBS to ask them questions about the plan and was dropped three to four times, spoke to two to three people, and could not find anyone who could tell him how the plan would work. He said he was in the business for fourteen years and expressed concern for the effect of charges and how they are applied, such as blending of in network versus out of network costs on the same procedure. In response to Mr. Wright, Mr. Bergstrom said the HRA funds can cover one or all members of a family up to $3000 for out of pocket costs, that Assurant Dental is significantly comparable to the current plan with Sebastian doctors, and with the medical plan the doctors are the same and people can utilize Sebastian River Medical Center. Mayor Hill reiterated that the plan as it currently exists would have increased in cost by 10%. The City Manager said the current cost is $913K and the new cost would have been $1.15M so a new plan with more reasonable cost was sought. In response to Mayor Hill’s question as to how employees liked the current plan, the City Manager said at first there were some complaints but only two that made it to his desk. He said the City is beefing up the plan by paying 100% of the deductible cost, and estimated that at least 50% of employees don’t ever meet their deductible, that the City could have returned $100K to the General Fund (GF) but decided instead to give it to the employees. Mayor Hill asked if there is data on the HRA card program, and the City Manager responded that for FY 12 of the $125K funded, it is anticipated that $90K will be spent, and that for FY 13 we will need $185K so will budget $160K and try to get HRA money back to the City. He said staff will track unspent funds for future years. Mr. Wright suggested rather than returning unspent HRA funds to the GF, it be kept in a separate account and rolled forward each year. The City Manager said that was a good point but we need to be cautious, and rather track it and do a budget adjustment if we need it. Mr. Wright said again he would rather see a fund set up just for health care because we may lose track of the costs. 6 of 92 3 City Council Budget Workshop August 20, 2012 Page Three 5. FY2012/2013 RECOMMENDED BUDGET A. Budget Advisory Committee Recommendation – Chairman Herlihy This item was not addressed at this time. B. Budget Presentation/Overview – City Manager The City Manager thanked Administrative Services Staff Debra Krueger, Ken Killgore and Nancy Veidt for their work on the budget, department heads for the good job of keeping budgets low, and all employees for continuing to provide good service to the community while sacrificing increases and taking furlough days. He then said during his presentation he will address the Capital Improvements Program which was planned to be addressed earlier. He then gave a Power Point presentation, which he said would cover two potential budget plans, setting GF service levels, regional municipal service cost comparisons, setting the foundation for long term sustainable growth, enterprise funds, CIPs, and review. The 78 page Power Point presentation printout is attached to these minutes for reference. General Fund and Municipal Survey and Conclusions – PP pgs 3 - 22 Mr. Minner reviewed the GF and regional municipal service levels, comparing ten local communities, which compared assessed value per capita, average police salary, officers per 1000 population, police services costs per capita, police percent of ad valorem, police millage rate, administrative cost per capita, public works cost per capita, non- departmental cost per capita, general services costs per capita, millage rate and tax levy per capita, then GF mitigation methods such as eliminating sick leave buy back and other percs for PBA and PEA employees hired after October 1, 2011, increases in employee health care coverage costs, reductions in retirement accrual factor, and for management, elimination of longevity pay and increase in sick leave buy-back thresholds, reductions in staff, furlough days, RIFs and reorganizations, equipment deferrals, and debt refinancing. In conclusion, he stated the data shows people are happy with the services being provided, that we have reduced GF expenditures, are providing the right level of service, are a competitive governmental service provider and can manage GF services going forward with a $9,641,582 GF block. Ms. Coy said we are in a precarious balance now, our employees are phenomenal, though it is starting to show, with grass and weeds at parks because of reduced staff and it is not their fault. She said she has heard more complaints this year. Mayor Hill said we are where we need to be, due to staff’s hard work and Council holding the line on taxes, and that is where government needs to be. Ms. Coy said if funding came back she would like to bring back a few folks because we can’t ask employees to do more. Mayor Hill said he would like to be able to return pay cuts and furloughs, that we’ve seen cuts in the Building Department by their one hour closing per day and furlough days. Mr. Wright said he agreed we cannot cut the line of service anymore or put more pressure on City employees, congratulated the City Manager, Budget Board and staff 7 of 92 4 City Council Budget Workshop August 20, 2012 Page Four and said it is not reasonable to expect a financial turnaround anytime soon. He said the Police Department costs at 150% of ad valorem taxes needs a solution. He said we are at the bottom and that has been accomplished with deferred maintenance of equipment, roads and other areas and we are looking at even higher costs if we don’t continue to maintain them. He said we can’t continue to cut to the bone and need to do something rather than cut millage. Revenue Shortfalls – PP pgs 23 - 26 The City Manager said to manage the $9.6 M budget reasonably and within our means going forward we have to have a plan to move forward, but the question is where is the bottom. He said realistically we need to grow by 3% each year, noting Sebastian is 80% residential of which 75% is built out, that currently commercial is capped at 10% and the State will look at reducing that to 5% in the upcoming session. He reiterated we need to sustain the $9.6M block at 3%, stating we may go 4% in the hole for 2014 and then project 3% growth going forward. He noted the unanticipated decline in utility ($378,100) and franchise fee (443,534) revenues. FY Taxing Recommendations and Recommended Action – PP pgs 27-31 The City Manager proposed two plans. Plan A – set the millage rate at 3.5646 as is proposed in the budget and is balanced with no allocation for street resurfacing, OR Plan B – increase the millage rate to 3.7166 which would provide an additional $118,798 for street resurfacing. He said on an average house valued at $135K the increase along with the additional $1 per month ($12 per year) in stormwater assessment as proposed would equate to a total increase of $16.96 per year. He noted this proposed tax would be 63.4% less than a homeowner paid for 2006 Sebastian taxes. Mr. Wright said they had done an unbelievable job saving people money because no cost anywhere has decreased by 63%. The City Manager referred Council to the chart on PP pg 31 which demonstrates the GFOA recommended GF cash reserve balance of $2.5M, which he said, should be more like $4M due to possible disaster recovery issues. He said it also shows the reserve balance to date, the current taxing plan with no tax increase adding back in the programs we want to add back in, and Plan B roll showing the roll forward rate and new stormwater fee. In response to Mayor Hill, the City Manager said this chart shows no tax increase and plugging back in programs, but the yellow line shows the Plan B tax increase. He said the expectation is a 3% increase each year going forward starting in 2017. He continued that 2013 is a decrease of 6%, 2014 is a decrease of 4%, 2015 is a decrease of 2%, 2016 is flat, 2017 is a 1½ % increase, and 2018 is a 3% increase. Mayor Hill asked what years are programmed for increases and the City Manager responded 2017, 2018, 2019, 2020, and 2024 and once we start growth we use the same millage rate of approximately 3.8 mills. 8 of 92 5 City Council Budget Workshop August 20, 2012 Page Five The City Manager said staff recommends Plan B, with the additional $118,798 which will buy 2 miles of streets. He said in response to Mr. Wright that there are 150 miles of streets outside the CRA and that there was a chart provided previously showing street conditions throughout the City and they have been working on those considered in decaying condition. He said life expectancy once rebuilt is approximately 15 to 20 years. Mr. Wright asked if the $118K would be an on-going deficit. The City Manager said this amount is a healthy plan but is about 1/3 of what is actually needed for street resurfacing. Mr. Wright said he was concerned that we not let the streets deteriorate too far beyond being able to be resurfaced as an option and then have to be replaced. The City Manager said this year we are focusing on the Southeast area of the City where it is high and dry and the base does not have to be redone, where the potholes can be fixed and the streets resurfaced, but when we get to areas like Tulip, Englar and Main those areas are lower and we may have to renourish the base. In response to Mayor Hill, the City Manager said we gained $200K with the 2012 street paving refinance and were able to redo three miles of streets, and in 2011 we spent $500K. Mayor Hill said we say we have been putting off streets, but in fact we have spent hundreds of thousands of dollars, so we need to be clear that this $118K is going to be considerably less than we have spent in the past, and people need to understand that this won’t get us out of a situation where we have not been maintaining roads. Mr. Gillmor pointed out that the quarter round program has reduced the degradation of streets from standing water, and that the Barber Street stimulus grant helped that standing water problem tremendously. The City Manager concluded that Council could choose Plan A or B, A being the 3.5646 millage rate, balanced budget but no allocation for a resurfacing program and no use of cash reserves to subsidize, or B, being a mild tax increase to 3.7166 mills creating an additional $118,798 to provide the ability to fix some streets. Budget Advisory Board Recommendation At this time, Budget Board Chairman Herlihy addressed City Council. Mr. Herlihy said the committee changed the way it did business this year, a lot of work was done by staff, this was the first time they were faced with a tax increase and it was the unanimous vote of the Board to recommend the 3.7166 millage and $12 annual increase in the stormwater assessment due to 1) loss of revenues in utility and franchise fees and decrease in assessed valuation, 2) the need to catch up with maintenance including MIS infrastructure which is aging, and 3) to stop spending funds out of GF reserves and keep the balance at about $4M. He said the majority of people saw a total reduction on their TRIM and all had reductions. Mayor Hill thanked him and the Board for all their hard work on the budget. The City Manager completed his review of the GF and asked if Council had any questions of staff. Mayor Hill said the City has a value of $822M, which is a reduction of 6.6%, and questioned what the affect of the increased millage would be on commercial and 9 of 92 6 City Council Budget Workshop August 20, 2012 Page Six industrial properties, expressing concern that business community will shoulder the entire increase and this could be detrimental to them. He said staff and Council have done a great job over the last four years of trimming the budget and have deferred maintenance on equipment. He expressed concern that we may be prematurely increasing our taxes, not the tax rate, if we are spending what we should be then rolled forward rate would be appropriate, but to say that we may be at the bottom and there may be a light at the end of the tunnel, we haven’t seen an increase in property values and no decrease in the jobless rate, and the business community is still struggling, so while he supported the stormwater increase of $1 he questioned what the stormwater increase will be to the businesses. He said the business community will be paying a lot and that will be a burden, when we say the average resident will not see an increase, someone will pay it and we need to know a little bit more about the business increases so as not to harm the business community. He said at this moment he can support the rolled forward rate and the $12 per year but has a lot of difficulty saying $118K is an absolute necessity to increase taxes until he knows all the numbers. Mr. Wright said the points he makes are good and said we can ask the City Manager to come back with more information, but if we don’t go to a higher rate and we will begin to get behind on maintenance of our roads and we don’t want to do that, and if we want to get to a point where we want to restore employee benefits we are going to have to do something, but we should look at the numbers and it may not be as scary as we think. Mr. Gillmor said when he was first elected in 2008 there was $75K budgeted annually for road maintenance and walking the streets he could see more was needed, and we need to budget funds every year because decent roads are a level of service people want to see in their City. Ms. Coy said the Budget Board spent a lot of time on this and she would have a hard time ignoring their recommendation. Mayor Hill said he is not ignoring the hard work they did and was agreeing with the stormwater increase and the roll forward. Mr. McPartlan said in looking at his TRIM he will pay $20 more per year, and that $210 per year for a family of seven to live in Sebastian with the services it offers and his family utilizes is a great benefit and that there is a good level of service in Sebastian. He said bad roads make a City less attractive and said he was in support of the 3.71 millage rate but would like to see the effect on local businesses, and further did not think we can continue to kick the can down the road. The City Manager said he would take that direction and get some data on the commercial and residential values. ENTERPRISE FUNDS – PP pgs 32-37 The City Manager continued his Power Point presentation on the Golf Course Fund, the Airport Fund and Building Fund. He briefly addressed revenue trends which seem to be improving and proposed improvements to the Golf Course for fiscal years 2012 and 2013, economic development accomplishments including jobs creation for Airport businesses of 38-55 new jobs, establishment of a $20K funded Economic Development Division and the $275K Airport Drive East conversion and $150K Davis Street sewer. He reviewed the Building Department forecast showing a slight bump up in revenues 10 of 92 7 City Council Budget Workshop August 20, 2012 Page Seven and advised that the Building Department function should remain local and noted Business Tax may be moved back to the General Fund in 2014. Mayor Hill called a recess at 7:30 pm and reconvened the meeting at 7:40 pm. All members were present. Mr. Gillmor suggested that instead of total replacement of the tee boxes, perhaps some of them could be re-graded instead, and the City Manager said he could look into it and report back. Mr. Wright suggested that maybe FSL money or some other fund could be used to assist businesses to hook up to the sewer system in the CRA district. The City Manager recapped directions of Council to look at the comparison of the effect of the millage and stormwater fee increases on residential and business, tee box regrading, and water/sewer connections. He said he did not think the CRA fund would sustain that type of cost and perhaps we can look to DST or other special revenue for assistance with hookups. Mr. Wright said the hookup is about $10-20K which is not much different than the sign cost, and was concerned about how the stormwater fee impacted businesses. CAPITAL IMPROVEMENT PROGRAM OVERVIEW– PP pgs 38-40 The City Manager explained the CIP approval process which has been before the Budget Advisory Board, Parks and Recreation Committee, Planning and Zoning and will have final approval by City Council. He then cited the source of funding for the CIP from discretionary sales tax, local option gas tax, stormwater utility fee, recreation impact fees and CRA incremental property tax, and reviewed the new proposed projects. DST Funds – PP pgs 41-50 City Hall Debt Repayment - $994,621 (retires 2018) Police and Enforcement equipment replacements - $56K Paint City Hall facilities - $15K Barber Street Guardrail enhancement - $60K Cavcorp Parking Lot Project - $500K Working Waterfront Fish House - $200K Airport Drive East - $275K ¼ Round Drainage - $500K The City Manager briefly updated Council on the Working Waterfront project stating he would bring new draft leases to them on September 12th or 26th for their approval, with the idea that the City would control the Hurricane Harbor side and lease the other parcel for 25 years and assist with reconstruction of the fish house. Ms. Coy suggested, after speaking with a representative of FIND about possible matching grant funds, that he contact them. The City Manager said he had spoken with Bruce Barkett and there is a possibility they can apply for a 50/50 grant. The City Manager noted the Airport Director has applied for a $1.2M grant for Airport Drive East. 11 of 92 8 City Council Budget Workshop August 20, 2012 Page Eight Local Option Gas Tax – PP pgs 51-56 Street Resurfacing Debt Payment $243,076 Street Light Operating Costs - $203K Transfer to GF for Culvert replacement, sidewalks, drainage, road repair - $100K RR Crossing Maintenance - $5K Recreation Impact Fee – PP pgs 57-62 Creative Playground – Jolly Roger - $100K Riverview Park Volleyball Court Lights - $20K Schumann Park Play Equipment - $25K Barber Street Sports Complex Multi-Use Field Lights - $185K CRA Tax Increment Funds – PP pgs 63-68 Operations - $87,572 Façade, Sign and Landscape Grant - $20K Special Events - $36,468 Transfer to GF for Quality Maintenance - $60K Cavcorp Parking Lot Project - $250K The City Manager advised that a public meeting would take place on Wednesday, August 29th at 6 pm for staff and project engineers to present the Cavcorp plan and take comment. He said it had been properly noticed to announce that two or more Council members may attend. Stormwater Utility Fee – PP pgs 69-78 The Stormwater section included information with and without the $1 per month increase, comparisons with other municipalities, the 2003 debt payment which is scheduled to retire in 2022, transfer of $500K to the GF and equipment replacement. Mr. Wright asked if it was possible to refinance the stormwater bond to get a better deal and the Finance Director responded that when those bonds were issued the call date was still several years away and if you refinanced you’d have to set up an escrow account and the escrow account would not earn enough interest to cover the bond interest expense. C. Department Questions (See Recommended Annual Budget Document) – None 6. PUBLIC COMMENTS - None 7. CITY COUNCIL COMMENTS/DIRECTION - None. 8. Being no further business, Mayor Hill adjourned the Workshop at 8:09 p.m. Approved at the September 12, 2012 Regular City Council meeting. _______________________ Jim Hill, Mayor ATTEST: ________________________ Sally A. Maio, MMC – City Clerk 12 of 92 13 of 92 SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, AUGUST 22, 2012 - 6:30 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Hill called the Regular Meeting to order at 6:30 p.m. 2. Pastor Tim Woodard, United Church of Christ, gave the invocation. 3. Council Member Gillmor led the Pledge of Allegiance. 4. ROLL CALL City Council Present: Mayor Jim Hill Vice-Mayor Don Wright Council Member Andrea Coy Council Member Richard H. Gillmor Council Member Bob McPartlan Staff Present: City Manager, Al Minner City Attorney, Robert Ginsburg City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Community Development Director, Joseph Griffin Administrative Services Director, Deb Krueger Finance Director, Ken Killgore Deputy Police Chief, Greg Witt Public Works Director, Jerry Converse Parks Supervisor, Chris McCarthy Building Maintenance Supervisor, Marty O’Brien MIS Engineer Analyst, Rob Messersmith Also Present: Frank Watanabe, Neel-Schaffer 5. AGENDA MODIFICATIONS Modifications and additions require unanimous voted of City Council Members None. 14 of 92 2 Regular City Council Meeting August 22, 2012 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. 12.098 A. Proclamation – Recognizing Sergeant First Class Hamilton McWhorter for his Military Career and Retirement from the US Army on August 10, 2012 Mayor Hill read and presented the proclamation to Sergeant First Class McWhorter, who accepted with his family by his side and expressed his appreciation and love of Sebastian. 12.100 B. Proclamation – Literacy Day – September 7, 2012 – Accepted by Fran Adams, Superintendent, Indian River County School District Mayor Hill read and presented the proclamation to Dr. Fran Adams, who expressed her appreciation and stressed the importance of support of literacy programs. 12.099 C. Proclamation – National Recovery Month – September 2012 – Accepted by Robin Dapp, Executive Director, Substance Awareness Center of Indian River County & David Cavell, Coordinator of the Indian River County Substance Prevention Coalition Mayor Hill read and presented the proclamation to Robin Dapp and David Cavell. Mr. Cavell expressed appreciation and advised that an event will take place for people who have achieved their goals to show a positive side will take place on September 15th at Riverside Park in Vero Beach. Brief Announcements Ms. Coy advised that tomorrow is the first day of the fall semester at Indian River State College, and said the new Senior Center is coming along phenomenally and she will report back soon. She said monetary donations are needed and can be mailed to City Hall or people can call her at 388-0961. 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 of City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he/she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. A. Approval of Minutes – 7/25/12 Regular Meeting 12.101 B. Waive Competitive Bid Procedures and Authorize Renewal of Property, Casualty, Liability and Workers’ Compensation Insurance Coverage for FY 12/13 (Administrative Services Transmittal, FMIT Proposal) 15 of 92 3 Regular City Council Meeting August 22, 2012 Page Three 12.102 C. Resolution No. R-12-21 - FDOT Wayfinding Signs (City Manager Transmittal, R- 12-21, Plans) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, FOR CONSTRUCTING AND MAINTAINING WAY-FINDING SIGNS IN THE STATE OF FLORIDA RIGHT OF WAY ALONG U.S. 1 IN SEBASTIAN, FLORIDA; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. 12.103 D. Resolution No. R-12-23 – Vacation of Easement – 449 Lake Drive, Lots 10 & 11, Block 60, Sebastian Highlands Unit 2 (Community Development Transmittal, Site Map, R-12-23, Staff Report, Application, Letters) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, VACATING CERTAIN EASEMENTS ON LOTS 10 & 11, BLOCK 60, SEBASTIAN HIGHLANDS UNIT 2; PROVIDING FOR CONFLICTS HEREWITH; PROVIDING FOR RECORDING; PROVIDING FOR EFFECTIVE DATE. 12.104 E. Award and Authorize Execution of Non-Exclusive Agreements for Continuing Professional Engineering Consulting Services to Neel-Schaffer, Vero Beach, FL; Masteller & Moler, Vero Beach, FL; Schulke, Bittle & Stoddard, Vero Beach, FL; MBV Engineering, Inc., Vero Beach, FL; KSM Engineering and Testing, Inc., Sebastian, FL; Infrastructure Engineers, Inc., Sebastian, FL; Michael Baker, Jr., Lake Mary, FL; and American Infrastructure Development, Inc., Tampa, FL (City Manager Transmittal, Agreement, Committee Minutes, Fee Schedules) 12.105 F. Award Bid and Contract for Professional Pest Control Services to Ameron Pest Control, Inc. in the Amount of $3,600.00 Annually (City Manager Transmittal, Bid Tab, Agreement) 12.106 G. Award Bid in the Amount of $17,375.00 to Creative Shade Solutions for Installation of Two Shade Canopies at Creative Playground (Parks Transmittal, Bid Tab, Price Form, Picture, Recent Projects) MOTION by Mr. Wright and SECOND by Mr. Gillmor to approve the consent agenda. Ms. Coy requested removal of item C. New MOTION was made by Mr. Wright and SECOND by Ms. Coy to approve A and B and D through G. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. In response to Ms. Coy, the City Manager said the City had some say in where the signs were located but took guidance and got approval from FDOT, tried to keep sign clutter out of the Main Street/Indian River Drive area, and said the compass roses were 12 inches and the poles 12 feet. MOTION by Ms. Coy and SECOND by Mr. Wright to pass item C passed with a voice vote of 5-0. 16 of 92 4 Regular City Council Meeting August 22, 2012 Page Four 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 announced the Veterans Advisory Committee met for the first time on Tuesday and said Council can now refer questions about Veterans’ issues to them. 9. PUBLIC HEARINGS 12.092 A. Resolution No. R-12-18 – Stormwater Non-Ad Valorem Assessment Increase (City Manager Transmittal, R-12-18) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, INCREASING THE STORMWATER UTILITY FEE PURSUANT TO SECTION 102-125 OF THE CODE OF ORDINANCES OF THE CITY OF SEBASTIAN; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. (PJ Ad 7/25/2012) The City Attorney read the title of Resolution No. R-12-18, the City Manager outlined the uses of the additional $1 per month stormwater fee and provided an update in response to a Council request from the August 20th budget workshop to ascertain the effect of the increase on businesses which pay multiple ERUs. (see attached) Mayor Hill opened the public hearing at 6:57 p.m. There was no public input. Mr. Wright said the formula equates to an approximate 25% increase for residents and about the same for businesses. He said most of the drainage work is being done in residential areas and the business community does not realize the benefit that the residents do. He said it may be worthwhile to examine how this was originally set up, determine if the structure still valid going forward, and how the formula breaks down. The City Manager agreed there needs to be a review over the next year and we may want to change the program. He said there are some areas that don’t have direct outfall into the City system, we can look at the separation of ERUs as to business and residential properties, and probably need the services of an engineering firm to look at other solutions or look at credits for business for on-site retention. He said we need to look at controlling water that comes off the US 1 business district and flows into old FDOT outfalls. He said the City has taken some pro-active approaches in putting in baffle boxes and outfalls and probably needs to be more aggressive in capturing and treating water in the riverfront. The City Manager said the table shows subtle increases for businesses, but for the greater good the successes speak for themselves. He closed by agreeing we need to look at the program in the next year. Mayor Hill said he was pleased with the numbers. The City Clerk said for the records we received six e-mails or letters of objection. MOTION by Mr. Wright and SECOND by Mr. Gillmor to approve. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 17 of 92 5 Regular City Council Meeting August 22, 2012 Page Five 12.096 B. Second Reading and Adoption Hearing of Ordinance No. O-12-08 – Code of Ordinances Chapter 26 – Buildings and Building Regulations (Building Director Transmittal, Revisions Supplement Page, O-12-08) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING, REVISING AND UPDATING CHAPTER 26 OF THE CODE OF ORDINANCES RELATING TO BUILDING AND BUILDING REGULATIONS; PROVIDING FOR SEVERABILITY; CONFLICTS AND EFFECTIVE DATE. (PJ Ad 8/8/2012) The City Attorney read the title of Ordinance No. O-12-08 and advised Council that the Ordinance before them has been amended slightly from the first reading and the changes are detailed in the agenda packet pages 131-132. The City Manager said the Building Director had been excused from the meeting, and said two major changes are presented in this Chapter 26 Code change, wind standards, and modifications to building codes to comply with new standards. He noted the contractor licensing fees had been removed from the ordinance and included in a new resolution with other building permit fees which Council will address later in the meeting. He stated the fees will stay the same. Mayor Hill opened the public hearing at 7:09 p.m. Public Input Damien Gilliams, 1623 US 1, said since 75% of the City is built out we should turn our Building services over to Indian River County, said we have privatized the garage, our occupational license fees support the Building Department and the amount of revenues for licenses is over $200K. The City Manager responded we have not privatized the City garage, though we have an RFP out for some services, the occupational license revenues are approximately $60K, the City’s fees are less than the County’s, and it is better to have local control of permitting and inspections with our Building Department and Construction Board. Mr. Wright said we watched the Building Department for the past four to five years and came to a consensus to keep it in Sebastian, that it offers a convenience to residents, it would be more difficult for contractors to go to the County, and we have already discussed that when Building Department revenues and expenses equalize we can return occupational licenses to the General Fund. Mr. Gillmor said if we are 75% built out of a total of 12,000 units, even going up another 10% to 85% build-out, we are still talking about a large number of units to be built upon just to get to 85% and it will take years. The City Manager agreed and based on five new residential units per month it will take a long time. Ms. Coy agreed that this Council decided the Building Department needs to stay locally, that she receives few complaints about the Department and in fact receives calls about the good job they do. 18 of 92 6 Regular City Council Meeting August 22, 2012 Page Six MOTION by Mr. Gillmor and SECOND by Mr. Wright to approve Ordinance No. O-12-08 as amended. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 10. UNFINISHED BUSINESS 11. PUBLIC INPUT Craig Cobb, 126th Street, thanked the City for the additional volleyball court at Riverview Park, noting he is connected with the Sebastian Lady Sharks and people play nightly and on weekends and said with the amount of use, lights would be great there. Mayor Hill said the Parks and Recreation Committee looked at that as suggested by Council Member Gillmor and it looks like a great possibility it will be done in the near future. Damien Gilliams, in regard to the Working Waterfront site, asked why the City does not have to come into compliance to bring its docks five feet above the mean water line as he had to do by DEP and Army Corps of Engineers. He said the City is getting favors and said what he spoke about at the last meeting was that we give special favors for special people. Mr. Wright said Mr. Gilliams’ comments were getting into a personal attack and asked him to keep to the issues he wanted to discuss. Mayor Hill also asked him to stay away from personal attacks and asked him if he bought his concerns to City Manager. Mr. Gilliams responded ‘many times’, alleged again that special deals are being done, and said Roseland has no complaints about the County Building Department. 12. NEW BUSINESS 12.096 A. Resolution No. R-12-20 – Building Permit Fee Schedule (Building Director Transmittal, R-12-20) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, LISTING BUILDING PERMIT FEE SCHEDULE PURSUANT TO CITY CODE SECTION 26-35; AMENDING CONTRACTOR LICENSING FEES PURSUANT TO CITY CODE SECTIONS 26-166 AND 26-168(D); PROVIDING FOR PENALTIES, PLAN-CHECKING FEES, CONFLICTS AND EFFECTIVE DATE. The City Attorney read the title of Resolution No. R-12-20. The City Manager said it readopts the building fees and adds the contractor licensing fees. MOTION by Mr. Gillmor and SECOND by Ms. Coy to approve Resolution No. R-12-20. Damien Gilliams said he was against any tax increases and the City Manager stated there are no tax or fee increases in this resolution. Mr. Wright said this was simply a change in how we declare the fees. 19 of 92 7 Regular City Council Meeting August 22, 2012 Page Seven Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 12.049 B. Award Group Health Plan, Blue Options HDHP 05190 / 05191 to Blue Cross Blue Shield of Florida for 12 Months – Award Group Dental Plan to Assurant for 24 Months – Award Life, AD&D and Long Term Disability to Cigna Hartford for 36 Months – Renew Employee Assistance Program with MHNet for 12 Months and Approve $188,500 for FY13 Health Reserve Account Funding to Meet $1,500 Single Employee Deductible/$3,000 Family Deductible (Administrative Services Transmittal, Analysis, Recommendation, Cost Comparison, Decline Quotes) The City Attorney noted the reference on page 181 to Cigna should actually be to The Hartford. The City Manager said these plans were fully detailed by the The Gehring Group at the August 20th budget workshop. MOTION by Ms. Coy and SECOND by Mr. Wright to approve the recommended action in the staff report with the City Attorney’s amendment. Mr. Gillmor asked the City Manager if he involved Mr. Wright in searching for alternatives due to his expertise in insurance. The City Manager said though discussed it with him, they used the Gehring Group. Mr. Gillmor said he was not too keen on the plan; the credit card gives employees a false sense of security that there will be no costs to the employee, and we’d be better served with a different type of program. He said Mr. Wright has extensive history with group health insurance, it is imperative to use expertise of Council members, and that the City would have been better served if we put out the RFP ourselves. Mr. Wright said his experience was with large multi-national corporations, and one interesting thing was that one corporation had a similar HRA program which offered $1500 to the individual and $3000 to families. He said he had discussions with the City Manager and that it is unfortunate that costs had gotten out of control due to high claims experience, and he thought the Gehring Group had done a good job. He said if claims improve, funds will be saved and they should be set up in a separate account and not be rolled back into the General Fund. The City Manager clarified in response to Ms. Coy that it is a debit card and not a credit card and is used for doctors and pharmacies only. He also reported that that 76 of 105 employees received the plan presentation well yesterday. Mr. McPartlan said our options are limited due to claims and wished everyone a healthy plan year. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 20 of 92 8 Regular City Council Meeting August 22, 2012 Page Eight 12.004 C. Resolution No. R-12-22 – Approving Fiscal Year 2012 Third Quarter Budget Amendment (Administrative Services Transmittal, R-12-22, Comparison, Status Report, Schedule, Accomplishments) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING AN AMENDED BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 2012 AS PROVIDED FOR IN EXHIBIT “A”; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Resolution No. R-12-22. The City Manager said the budget amendment had gone before the Budget Review Advisory Board. MOTION by Ms. Coy and SECOND by Mr. Hill to approve Resolution No. R-12-22. Mr. Wright asked if we accessed any reserve funds to make the adjustments. The Finance Director said any transfers were between budgeted project monies. Mr. Wright requested that future budget amendments include a specific notation if we have used any reserve funds. Mayor Hill noted it would say so, but perhaps it can be highlighted. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 12.107 D. First Reading of Ordinance No. O-12-07 – Land Development Code Backout Parking – Set Public Hearing for September 26, 2012 (Community Development Transmittal, O-12-07, R-98-13, R-99-25, R-03-05, R-03-35) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING LAND DEVELOPMENT CODE SECTIONS 54-3-10.6(a)(3) AND 54-3-10.7(c)(1) REGARDING PARKING AREAS AND BACKING INTO A PUBLIC STREET; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Ordinance No. O-12-07. The City Manager said this ordinance was to get the Code in line with several proposed City projects, and guarantees the City has the right to use right-of-way and creates downtown ambience. MOTION by Mr. Gillmor and SECOND by Mr. Wright to approve Ordinance No. O-12-07. Damien Gilliams, said he wanted to do this several years ago and was told no, but now the City is catching up with reality and he was waiting for this day. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. The City attorney announced the public hearing will be held September 26, 2012. 21 of 92 9 Regular City Council Meeting August 22, 2012 Page Nine 12.015 E. First Reading of Ordinance No. O-12-09 – Increase Employee Contribution to Police Pension Plan Effective 10/1/12 – Set Public Hearing for September 26, 2012 (Administrative Services Transmittal, O-12-09, CBA Articles 48 and 49, Actuarial Statement) AN ORDINANCE AMENDING CHAPTER 58, ARTICLES III OF THE CODE OF ORDINANCES FOR THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ENTITLED “POLICE OFFICERS’ RETIREMENT SYSTEM”; IMPLEMENTING A PROVISION OF THE 2011-2013 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF SEBASTIAN AND THE COASTAL POLICE BENEVOLENT ASSOCIATION; PROVIDING FOR AN INCREASE IN MEMBER CONTRIBUTIONS; PROVIDING AN EFFECTIVE DATE; AND REPEALING ALL ORDINANCES INCONSISTENT HEREWITH. The City Attorney read the title of Ordinance No. O-12-09. The City Manager said this was in line with the Collective Bargaining Agreement (CBA) with the PBA because property valuation in the City fell below an established benchmark in the agreement, so it will increase the employee contribution for hires prior to October 1, 2011 from 5% to 8% and will reduce the City’s contribution into the retirement fund. MOTION by Mr. Wright and SECOND by Ms. Coy to approve Ordinance No. O-12-09. The Clerk noted for the record that this public hearing would also be September 26, 2012. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 12.108 F. Authorize City Manager to Transition to City-Wide Janitorial Services/Duties to be Completed/Managed with Part-Time Employees (City Manager Transmittal) The City Manager said this was brought up last year when there were issues with our janitorial service but Council recommended not bringing additional employees. He said the current vendor probably bid at a price they can’t meet, and issues have arisen whereby staff thinks we need to make a change, a bid was let, and staff thinks we can bring in four part-time employees with no benefits at 15 to 20 hours per week for $8.50 per hour and do it in-house at a cost of approximately $56,065 including materials. He recommended giving notice to the existing service and bringing the service in-house for more quality control. MOTION by Ms. Coy and SECOND by Mr. Gillmor to approve staff recommendation. Damien Gilliams said the City should be in the business of cutting and not hiring people. Mayor Hill asked what the employee count was for 2006 and now and the City Manager responded 155 and 107. Mr. McPartlan asked why the increase in chemical supplies. The City Manager said we will need some supplies the vendor provided. 22 of 92 10 Regular City Council Meeting August 22, 2012 Page Ten Mr. Wright said last year we had a number of complaints about maintenance of Indian River Drive restrooms and asked if City staff or vendors fixed that and the City Manager said it was City staff. Mr. Wright said while he preferred outside contractors, maintenance and appearance of these facilities is important to the public. He said this goal is critical, he was not concerned about an increase, and would be looking to see if the complaints have gone away, then this would be the right decision, but if it continues we need to revisit it. The City Manager said he agreed 100%, and has seen a fall off in complaints because we made a change in personnel and turned a corner to make sure the restrooms were clean. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 12.109 G. Award Asphalt Surfacing Bid to Ranger Construction and Authorize Staff to Execute Same (City Manager Transmittal, Bid Sheet, Street Map, Contract) The City Manager said three bids were received for an estimated 2.2 miles of street repaving, the bids were very close, and briefly described a perceived conflict. He said when bids were turned in, Ranger failed to execute Amendment 1 and provide a certificate of insurance, but staff did not feel that those issues were necessary financially, because Ranger was at the pre-bid and capitulated that they were including that, and the big difference between Ranger and Dickerson was the hot mix asphalt overlay cost which allowed them to expand the repaving. He said he did not think their failure to sign the document or provide the certificate disqualified them. He said Frank Watanabe of Neel-Schaffer and Keith Sloan of CTI are available to answer any questions. He recommended Ranger Construction for the unit bids. MOTION by Ms. Coy and SECOND by Mr. Wright to approve staff recommendation. Damien Gilliams said the City should make sure there is someone inspecting so we don’t have a problem like we did with Laconia. Result of the roll call vote: AYES: All NAYS: None Passed 5-0. 12.110 H. Award Ditch and Right-of-Way Swale Mowing Bid and Contract to Absolute Lawn Service in the Amount of $146,238.00 Annually and Authorize Staff to Execute Same (City Manager Transmittal, Bid Proposal, Contract) The City Manager said this was low bidder and we have had good experience with them. MOTION by Mr. Gillmor and SECOND by Mr. Wright to approve. 23 of 92 11 Regular City Council Meeting August 22, 2012 Page Eleven 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 The City Clerk announced candidate qualifying is August 23 through September 7, 2012 from 8 am to 4:30 pm in the City Clerks Office advising that City Hall is closed on August 24th for furlough and September 3rd for Labor Day during the qualifying period. 16. CITY COUNCIL MATTERS A. Council Member Coy Ms. Coy said Dr. Grant Gillmor did a presentation at the Natural Resources Board meeting reporting that sea grasses are gone between Grant and Vero Beach and invited Council to watch the presentation. She said basic adherence to best management practices will help and the NRB will be preparing a website and provide educational programming. Mayor Hill suggested using Channel 25 as well. B. Council Member Gillmor - None C. Council Member McPartlan - None D. Mayor Hill - None E. Vice Mayor Wright Mr. Wright asked if we could find funds such as CRA or FSL to assist the community to hook up to sewer lines along US 1 to protect the Indian River Lagoon. He said he saw a huge difference in the Keys when septic was replaced with sewer lines. Consensus was reached on tasking the City Manager to review what properties between US 1 and the lagoon are on septic, where the sewer lines run, and what types of funding might be available to assist property owners and report back to Council. 17. Being no further business, Mayor Hill adjourned the regular meeting at 8:24 p.m. Approved at the September 14, 2012 Regular City Council meeting. _______________________ Jim Hill, Mayor ATTEST: __________________________ Sally A. 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