To: Mayor Allen Green
Vice Mayor Mary S. Martin
Councilman Dennis Kennedy
Councilman Robert Pohlmann
Councilman George Steindoerfer
From: Kenneth W. Parker, City Manager
Subject: Agenda Commentary for Regular City Council Meeting of
September 5, 2006
Date: August 28, 2006
B. PUBLIC HEARING
Currently, the preliminary tax rate is 4.75 mills. The City Council instructed the staff to bring it down to 4.70 mills. That has been done. The budget that is before you on Tuesday evening anticipates a millage rate of 4.70 mills. Our current General Fund millage rate is 4.80 mills. However, be aware, that this is an increase above the rollback rate. The rollback rate is 3.98543. The 4.70 mill rate will constitute a 17.9295% increase over the rollback rate.
The attached resolution adopts the tentative Millage rate of 4.70 for FY 06/07. We recommend approval.
Attached is a resolution which will approve the tentative operating budget for FY06/07. We recommend approval.
City Manager’s Comments: As you will recall, the reasons for the adjustment in the millage rate above the rollback rate are:
Compensation adjustments to include salary adjustments, step increases, health insurance increases, and pension contributions.
Adding 2 Police Officers, 1 paralegal, and 3 Parks and Recreation employees to handle the additional park land brought on board during the past year.
Energy cost increases to include the FPL rate adjustment and gasoline cost increases.
Property and Liability Insurance increases.
Contract service increases because of fuel adjustments.
Price adjustments from petrochemical products.
The proposed budget for 2006-07 is:
General Fund $ 32,465,006
Eastport CRA 261,144
Town Center CRA 644,105
Recreational Facilities 857,323
Municipal Communications 22,000
Bldg Special Revenue 1,461,674
98 General Obligation Bond 146,686
05 Transportation Bond 157,280
04 General Fund Capital Bond 1,161,340
06 General Obligation Bond 1,143,838
Water and Sewer Fund 23,211,301
Water and Sewer Debt Service 3,064,291
Solid Waste Fund 7,924,480
Drainage Fund 3,314,668
Drainage Bonds 1,611,835
03 Water and Sewer Debt Service 1,504,178
State Revolving Loan 2,748,824
Forestry Fund 54,600
Golf Course Fund 1,808,793
Data Processing 1,833,552
Vehicle Maintenance 870,649
Insurance Fund 2,536,877
Building Maintenance Fund 1,425,398
Fire Program Fund 277,928
Business Development Fund 493,379
Attached is a resolution adopting the tentative capital budget for FY 06/07. We recommend approval.
C. BOARD APPOINTMENTS AND INTERVIEWS
At the last City Council Meeting, the City Council asked us to notify the individuals who had applied to serve on the SHIP Board. Those individuals have been notified and have been asked to attend the City Council meeting. We are still short individuals. We need assistance in recruiting individuals who are willing to serve on this Board. You have a listing of positions that need to be filled. If you can help recruit individuals who can serve on this Board, staff would appreciate it.
D. CITIZEN PARTICIPATION
E. CONSENT AGENDA
Attached are the minutes of the following meetings:
July 18, 2006 – Special City Council Meeting
July 18, 2006 – Regular City Council Meeting
July 25, 2006 – Regular City Council Meeting
Please contact either Shirley Kelly or me if you have questions. We recommend approval.
Attached is the report from Quentin Hampton’s. If you have questions, please contact any of the Project Managers, Mark Hampton, or me.
Attached is the update from Parks and Recreation. If you have questions, please contact either Glen Walker or me.
Attached is the City Attorney’s Report. If you have questions, please contact Margaret Roberts.
Attached is the report from Public Works. If you have questions, please contact either Warren Pike or me.
Page 25 of the proposal contains the cost breakdown by type of coverage in comparison to last year’s insurance costs. Of particular significance, the cost of property insurance increased from $187,909 to $643,246. The reason for the increase was due to: (1) a +300% increase in property insurance rates and (2) a +33% increase in replacement cost values.
The cost of the liability and other coverages (General Liability, Law Enforcement Liability, Public Officials Errors & Omissions, Employment Practices Liability, Automobile Liability, Garage Liability, Auto Physical Damage, and Crime and Accidental Death & Dismemberment) increased by the amount of the rating basis, or about +5%.
The coverages were enhanced in two areas: (1) Increased limits of Excess Flood Insurance from $1 Million to $5 Million; and (2) Increased limits on Business Interruption from $250,000 to $1million. Other changes include: (1) Windstorm deductible increased from 2% to 5% per location; and (2) Coverage Exclusion for claims relating to Bert Harris Act.
This will be the second year of the three-year contract with Brown & Brown, Inc., to provide these insurance coverages.
Staff recommends that Council approve the selection of the Preferred Governmental Insurance Trust (PGIT) through Brown & Brown Inc., for the Property and Liability Insurance Program with the coverage period from October 1, 2006 through September 30, 2007. The cost of the insurance program is $1,007,091. The terms and conditions are contained in the Brown & Brown, Inc., proposal dated August 22, 2006.
Item 15 - Request to “Piggyback” the Parking Lot Bid for the Police Department and Bushman Park, Phase IIB, to Pave the Parking Lot at Lakeside Pavilion
Staff would like to piggyback Beckman’s contract for paving the Police Department and Buschman Park, Phase IIB, to pave the parking lot at the Lakeside Pavilion. The cost of the contract would be $108,708. Staff recommends approval.
City Manager’s Comments: The City bid the parking lot at the Police Department and at Buschman earlier this year. This utilizes the unit prices from that contract to construct the parking lot at the Lakeside Community Center. The funds for the parking lot will come from the interest earnings from the 2004 Capital Improvements Bond issue.
For the City Council’s information, the pavilion will not be completed until November. Originally, it was to be completed in mid-September. The dedication was anticipated to occur during Port Orange Family Days. It is now anticipated that the dedication will occur during the first week in December as part of the Christmas Festivities at City Center.
Item 16 - Waiver of Normal Bidding Procedures and Authorization to “Piggyback” Professional Piping Services, Inc., Contract with Pinellas County for Sanitary Sewer Pipeline Rehabilitation Work
We have identified several sanitary sewer force mains, which are currently in need of cleaning (pigging) at this time. Existing wastewater pump stations, which utilize these sewer force mains, have been experiencing increased pressure conditions which is reducing these pumps operating efficiencies. Without corrective action being taken pumping failures will likely occur in the near future. These force mains are located in the Sabal Creek, Williamson Blvd., Taylor Road, Hensel Road, and Spruce Creek Road areas.
Professional Piping Services, Inc. has successfully completed pipeline rehabilitation work for us in past years specializing in the pigging method in cleaning and rehabilitating pressure mains. We recently requested and received documentation from them, which will allow us to piggy-back their existing contract with Pinellas County. They have provided us with a quotation to perform this work, which is consistent with similar work, and pricing contained in this existing Pinellas County contract. We have determined this quote to be fair, consistent, and reasonable for the work that we have requested to be performed.
We request your approval at this time to waive the normal purchasing and bidding procedures and approve this work authorization to Professional Piping Services, Inc. for an amount not to exceed $90,000 for sanitary sewer system rehabilitation efforts. Funds are currently available in the Sewer System Rehabilitation Project #URH001 to cover this required work effort.
Staff recommends that Council authorize a purchase order for $90,000 to be issued to Professional Piping Services, Inc., waiving the normal bidding procedures, and piggy-backing a competitively bid contract with Pinellas County for sanitary sewer pipeline rehabilitation work, and to authorize the Mayor and City Manager to sign and execute all required contract documents.
Item 17 - Acceptance of Donation from Port Orange Community Trust to Purchase Sound System for Around the Lake at City Hall and to Apply the Amount to their Annual Rental Fees for St. Patrick’s Day and Family Days Events
Staff would like permission to accept a donation from the Port Orange Community Trust in the amount of $12,943.89 to purchase a sound system for around the City Hall lake. Staff would also like permission to credit this amount to Community Trust’s annual rental fees for their St. Patrick’s Day and Family Days events until the amount is expended.
Under this project the City replaced all of the major components associated with lime sludge thickening, vacuum filter, and disposal system utilized at the Garnsey Water Treatment Plant. During the course of construction, various unforeseen field conditions warranted changes resulting in additional costs being incurred.
First, the demolition and removal of the existing system revealed structural deficiencies in the sludge thickening tanks. The concrete was subsequently repaired. As an additive measure of future protection, staff directed the contractor to paint the tanks.
Additionally, the contractor discovered that the actual field measurements of the southern tank failed to match the previous plans and shop drawings on file. Subsequently, the existing support beams for the thickener were insufficient to support the new unit. To address this problem, the contractor welded steel plates to the beam, bolstering the structural integrity. Also, the thickener drive itself was required to be shortened in the field. Collectively, these changes lengthened the contract critical path time by approximately 8 weeks.
It should also be noted that fabrication of the equipment by the manufacturer required 8 weeks beyond the original 8 weeks allocated in the contract, making a total of 4 months to supply the components. Our recent experience with similar “special-order” utility components indicates that this is increasingly common in the utility industry.
Collectively, the changes resulted in an increased cost of $29,823.66, which we have determined to be fair and reasonable, and within current industry standards. Additionally, the changes increased the contract time by 120 days. Despite these time extensions, it is important to note that the associated Quentin Hampton inspection services contract did not exceed their original purchase order, and currently has a savings of approximately $29,000. These savings will offset the contractor’s cost increases.
Funding for the change order is available from the account entitled WWP003 Water Plant Improvements. Therefore, City staff recommends approval of the final close out change order.
Staff recommends that Council approve Final Close-Out Change Order No. 1 for the Garnsey Water Treatment Plant Sludge Processing Rehabilitation to the firm of Interstate Engineering Corporation in the additive amount of $29,823.66, bringing the final contract amount to $1,352,823.66, extending the contract time by 120 days, and authorizing the Mayor and City Manager to execute the associated contract documents.
The City of Port Orange has again this year joined several local municipalities in a cooperative bid for the purchase of bulk chemicals. Bid tabulations are attached. A comparison of bid prices vs. current prices is as follows:
Chemical Current Price Bid Price (Vendor)
150 Lb. Cylinders $46.00 cyl. $57.00/cyl (Jones Chemical)
Liquid CO2 $135.00 ton $140.00 ton (Airgas)
Bulk Quicklime $114.76 ton $131.14 ton (O-N Minerals)
Anionic Polymer $.66 lb. $.82 lb. (Ashland)
Liquid Sulfur Dioxide $397.80 ton $395.00 ton (Brenntag)
Hydrofluosilisic Acid $140.90 ton $330.00 ton (Harcross)
Bulk Tank Delivery $.319 Lb. $.319 Lb. (Tanner Industries)*
150 Lb. Cylinders $150.00 cyl. No Bid Solicited this year.
Sodium Hypochlorite $.648 gal. GWP $.714 gal.
(Allied Universal)** $.648 gal. RWP $.714 gal.
Methanol $1.539 gal. $1.539 gal.
Aluminum Sulfate No bid solicited this year.
Staff recommends award as listed above representing the most responsible, responsive bidder.
*The bid request from last year for bulk Ammonia includes the cost of tank rental and was for three years. We are now in the second year of that purchase agreement.
** Allied Universal is our current vendor for Sodium Hypochlorite and is once again the low bid for this product. The delivery problems we experienced with them in the past have decreased over the past year, but not entirely. We are still maintaining the ability to purchase emergency supplies of Cl2 from Oddessy Mfg. should they fail to provide service as required.
Staff recommends that Council approve Bid Award to the low bidder (vendor indicated in brackets) for each of the bulk chemicals listed, and authorize the Mayor and City Manager to execute contract documents on behalf of the City.
The cost of the insurance premium for the 2006-2007 Workers’ Compensation Insurance Program is $576,017, an increase of $75,473 or +15% over last year. The cost components of the premium are: Payroll, Rates, and Experience Modification (average of prior three years of losses compared to industry average).
Payroll +10.8 %
Overall Rate Factor -18.8 %
Experience Modification Factor +23.0 %
Premium +15.0 %
Staff recommends that Council approve the selection of Florida Municipal Insurance Trust (FMIT), through Florida League of Cities, Inc., for Workers’ Compensation Insurance Program with a $25,000 per incident deductible and with the coverage period from October 1, 2006 through September 30, 2007. The term of the services with Florida League of Cities, Inc. will be the second year of the three-year contract with FMIT.
The bid for Police and Fire Department personnel uniforms was received on August 10, 2006, at 2:30 p.m. The City received four bids for these services. The low bid was received from Sunrise Cleaners, located in Dunlawton Square. Sunrise Cleaners has had the contract for the past three years. Staff from both the Police and Fire Departments reported little or no complaints with this vendor and recommends that the Council award this contract to them for their bid as was submitted. Staff recommends approval.
A request for Letters of Interest and Statements of Qualifications were accepted for Professional Transportation Engineering and Consulting Services. Seven responses were received. The Selection Committee short-listed the responses down to four firms that they thought best met the City’s needs. Oral presentations were then heard. The final ranking established by the Committee is as follows: 1) Kimley-Horn; 2) GMB; 3) Ghyabi; and 4) Tindale Oliver. Staff recommends that the City approve this ranking and authorize staff to negotiate a successful contract with the firm ranked as number one, Kimley-Horn.
F. TABLED ITEMS
Item 23 - Change Order No. 2- Quentin L. Hampton Associates, Inc., Engineering Fees – Cambridge Drainage Basin Improvement Project (Tabled August 15, 2006)
Staff recommends that this item remain on the table.
G. BOARDS AND COMMISSION
a. Environmental Advisory Board
A representative of the Environmental Advisory Board will make a report to the Council at this time.
b. Parks and Recreation Advisory Board
A representative of the Parks and Recreation Advisory Board will make a report to the Council at this time.
H. PUBLIC HEARING
We recommend approval.
Council approved the acceptance of a promissory note from the Eastport Tax Increment District to fund the Eastport Parkway extension project. Also, this and previous fiscal years’ funds have been forfeited in the Police forfeiture fund that the Police Department requests to be expended on capital equipment operating supplies and training. The attached resolution appropriates funds for these projects. Staff recommends approval.
J. COMMUNITY DEVELOPMENT
Item 27 - First Reading – Ordinance No. 2006-36 - Amending Chapter 17, Sections 29(d) and 29(m) of the Land Development Code Relating to Building Coverage Requirement within the “PC-A” (Planned Commercial-Agricultural) Neighborhood District
This is a request to amend Chapter 17, Section 29(d) and Section 29(m) of the City of Port Orange Land Development Code to allow an optional increase of the maximum residential building coverage in the “PC-A” (Planned Commercial-Agricultural) Neighborhood District from 35% of the total lot area to 50%, provided additional requirements pertaining to the amount of open space, recreational amenities, and entry features are met within the development. These changes would apply only to single-family residential developments within the “PC-A” (Planned Commercial-Agricultural) Neighborhood District.
Planning Commission Recommendation: The Planning Commission recommended approval 6-1 (McMasters dissenting).
Staff Recommendation: Staff recommends approval.
Second Reading: September 26, 2006
K. PUBLIC SAFETY
The City desires to enter into an agreement that will supersede the existing contract entitled 2nd Amendment to the Agreement Between County of Volusia and City of Port Orange for Fire Suppression and Rescue Services. This agreement will incorporate additional County enclaves into Port Orange’s responding area, with fees for services being determined by an equation involving the taxable value of the areas served and the fire fund millage rate. Annual fee to be paid to the City is estimated to be in excess of $150,000.
This agreement will provide automatic first response to the identified enclaves and is in addition to the Interlocal Agreement Providing for the Establishment of the East Volusia Local Government Fire-Rescue and Emergency medical Services Automatic Aid and Closest Unit Response System. Staff recommends approval.
City Manager’s Comments: During the budget discussion, I recommended to the City Council that we use these funds to employ 3 additional firefighters. Neither the revenue nor the expense is included in the proposed operating budget for 2006-07. As you will recall, last year, I recommended that the City Council begin gradually increasing the staffing level so that when Fire Station 5 is brought on line, the personnel needed to staff that station would be in place. On Tuesday night, I am asking the City Council to approve the agreement with Volusia County. I recommend we not amend the proposed budget at this time but rather discuss this item more fully in terms of the additional personnel on October 3.
L. PARKS AND RECREATION
Staff recommends that Council approve the attached ordinance pertaining to open containers- drinking in public to add the use of alcohol at the Lakeside Community Center and Gamble Place (for weddings and special fundraising events).
Second Reading: September 26, 2006
City Manager’s Comments: The purpose of amending the Ordinance to allow alcoholic beverages at these two locations is not for normal day to day operations but rather for special activities that are held at these facilities. This is similar to what is allowed at the Riverside Pavilion and at Palmer.
As you are aware, I am not a user of alcoholic beverages. My personal position and my professional recommendation are different. I am charged by the City Council to make a recommendation on how to make both of these rental facilities competitive with similar venues in the area. All of the competitive facilities allow the serving of alcoholic beverages.
Item 30 - Resolution No. 06-88 - Establishing Revised Recreation Fees for City Sponsored Fees for City Sponsored Youth and Adult Athletic Programs and Summer Playgrounds
Parks and Recreation proposes to increase program fees, athletic activity fees, and summer playground fees per the attached fee schedule. Staff recommends that Council approve the attached resolution authorizing the increase in fees.
City Manager’s Comments: During the final review of the City’s Operating Budget, the City Council authorized the rate adjustments to Parks and Recreation fees. As you will recall, the City Council authorized adding a week to the Summer Recreation Program. There are two components to the Summer Program. First, there is a slight increase in the fee; and second, there is adding the 8th week to the program. All athletic fees have been adjusted according to the instructions provided to the staff by the City Council.
The City has completed the engineering and permitting for the extension of Eastport Parkway from its current terminus to Commonwealth Boulevard, along with associated utilities and stormwater retention. The total estimated costs associated with this project, including engineering design, permitting, construction, and inspection is $1.5 to $2.0 million. Tax Increment Financing (TIF) revenues, with a potential secondary pledge of water and sewer revenues, will be used to secure the bonds. A Promissory Note from the CRA for bridge funding through the City’s Loan Pool is proposed until the bonds are issued. Due to rapidly escalating construction costs, it is recommended that the bond authorization ordinance be set at $2.5 million.
Staff recommends that Council approve the attached ordinance authorizing the issuance of TIF bonds in the amount of $2.5 million for the public infrastructure for Eastport Business Park, Unit II; to accept a Promissory Note from the Eastport Business Center CRA for bridge funding; and to authorize the Mayor and City Manager to execute all associated documents on behalf of the City.
Second Reading: September 26, 2006
Staff recommends that Council approve the attached resolution authorizing and accepting the Promissory Note from the Community Redevelopment Agency for Eastport Business Center.
The City seeks funds from the Florida Department of Environmental Protection’s FRDAP grant program to construct baseball fields, picnic tables, and support facilities at Coraci Athletic Park.
The City requests $200,000.00 (50%) in funds from the State and the City’s Match is $200,000 (50%). The match derives from Recreation Impacts Fees. In December, City Staff will submit a Volusia ECHO to fund these improvements.
Staff recommends that Council approve the attached resolution authorizing the Mayor and City Manager to submit a Florida Recreation Development Assistance Program (FRDAP) application. In addition, authorize the Mayor and City Manager to execute any agreements or contracts and provide a match.
Staff recommends that Council approve the attached resolution authorizing the Cities of Naples, Panama City, and Port Orange to pre-plan, coordinate, and support each other in the event of a large-scale natural disaster.
As part of the Police Department requirement for participation in federal program funds is the need for the City Council to adopt an Equal Employment Opportunity Plan. We are recommending approval.
The City has a concern that some of the proposed Charter Amendments circumvent the purpose and intent of the Municipal Home Rule Power Act, which is found both in the Florida Constitution and Florida Statutes. The purpose and intent of Municipal Home Rule was to grant to municipalities the right to self govern and to control the direction and density of their respective jurisdictions. Staff recommends that Council approve the attached resolution objecting to certain amendments to the Volusia County Charter.
At this time, Council Members may discuss various matters of concern.