To:                   Mayor Green 

                        Vice Mayor Mary 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

                        January 23, 2007



Date:               January 16, 2007







The City Council will recess and convene as the Town Center CRA.  The CRA will approve minutes of their previous meeting and elect new officers for the coming year.  The Town Center Community Redevelopment Agency will discuss and recommend approval of Ordinance No. 2007-2, authorizing the issuance of TIF bonds in the aggregate principal amount not exceeding $10 million for land acquisition and public infrastructure improvements for Port Orange Town Center redevelopment, and to authorize the Chairman of the Community Redevelopment Agency for Port Orange Town Center to execute all associated documents on behalf of the City.


City Manager Comments:  This past week, the City of Port Orange closed on the Bryant-Singletary property on the river.  This is a key parcel of land needed for the Town Center Project.  There is not enough TIF to support the complete $10 million in bonds.  However, as the TIF grows, the CRA will be able to bond up to that level without having to have an additional authorization ordinance.  It appears that the maximum amount the CRA could issue at the present time is about $6 million bonds.  The priorities are to acquire additional properties in the Town Center area that are needed to accomplish the Town Center objectives and to repay the City’s internal loan fund for the internal financing of acquisitions that has occurred over the years.  We have been using the TIF to repay those loans over the years as TIF became available.  The CRA owes the internal loan fund $715,214.60 plus the Bryant/Singletary acquisition.  We are evaluating whether to pay off the mobile home park loan with TIF bonds, too.  We do have some expenses that we have to take into account such as the relocation of the pre-school from its current location on Halifax Drive.  We will need to pay for that relocation from TIF, too.  But, land acquisition is the important priority.  In order to accomplish the redevelopment objectives, the City of Port Orange and its redevelopment partners must control the land.


            C.   SPECIAL REPORT


Item 4 -           Report from KemperSports Management


Representatives from KemperSports Management will be present on Tuesday night to present the monthly report to the City Council. 




            E.  CONSENT AGENDA


Item 5 -           Lease Agreement for 3459 Ridgewood Avenue – Jose Castillon Insurance Agency, Inc.


In November 2003 the City entered into a lease agreement with Jose Castillon for the office building and associated parking lot located at 3459 Ridgewood Avenue.  That lease, including its term extensions, has now expired.  Since Mr. Castillon’s new building across the street is not anticipated to be completed until fall 2007, Mr. Castillon would like a month-to-month lease.  The terms of the new lease are month-to-month, at a rate of $12.00 per square foot, plus sales tax.  This equates to a monthly rent of $1360.


Staff recommends that Council approve the Lease Agreement with Jose Castillon Insurance Agency, Inc. as presented.


City Manager Comments:  The City is pleased that Mr. Castillon is reinvesting in the Town Center area.  His new location is directly across the street on the west side of Ridgewood Avenue.  He has been a valuable client for a number of years at this location.  However, the building is located in the 35 acre Riverwalk Redevelopment area.  It is part of the Marina Village project.  Mr. Castillon understood that at some point that he would have to relocate.  The moving to a new location allows the CRA some flexibility in planning for the Marina Village portion of Town Center. 


Item 6 -           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 that several sanitary sewer force mains, which are currently serving all of our beachside areas, are in need of cleaning (pigging) at this time.  Existing wastewater pump stations, which utilize these sewer force mains, have been gradually experiencing increased pressure conditions, which are reducing our pumps operating efficiencies. Significant build-up of sediments and debris has been witnessed in these areas also during the recent construction of the South Peninsula Sewer Project.  Without this pipe maintenance exercise being completed now, future piping and pumping failures are likely to occur. These force mains located northward of our Ponce Inlet Master Lift Station and then across the Halifax River were last cleaned approximately nine years ago. 


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 piggyback 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 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.


Staff recommends Council to 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 7 -           Contract Approval for Site Development Engineering Firms of Kimley-Horn & Associates; Upham, Inc. and ECT


Previously the Council approved the final ranking for Site Development Engineers.  Attached are the contracts from three firms: Kimley-Horn & Associates, Inc., Upham, Inc. and ECT, Inc.


Staff recommends Council approval to execute applicable contract documents from the three (3) firms ranked for providing Site Development Services.


Item 8 -           Change Order No. 1 – Schuller Contractors, Inc. – Cambridge Drainage Improvements Phase II


 Staff and project engineers have determined the need to construct an additional timber bridge on Trailwood Drive as part of Phase II of the Cambridge Drainage Improvements project.  This bridge is necessary in order to ensure proper drainage in the area.  Schuller Contractors, Inc. has submitted a cost estimated of $188,730.00 (net addition for bridge, $207,660.00 less net deletion from original plans, $18,930.00).  Total revised contract amount to Schuller is $2,863,230.00.


 Staff recommends Council approval of Change Order No.1 for an additional $188,730.00 to the contract with Schuller Contractors, Inc. for the Cambridge Drainage Improvements Project, Phase II.


City Manager Comments:  After construction began, it was brought to our attention that one of the properties on Trailwood Drive had poor access to their property.  It was not the best arrangement for either property owner.  Although it could be argued that access was provided using public right of way, the potential of problems existed.  I asked the engineers to examine various alternatives.  The alternative that met the requirement best was to bridge the canal rather than installing a culvert.  I was concerned about the flow rate through the culvert and the potential of the culvert becoming clogged with debris.  Therefore, I am recommending the change order be approved to install the bridge across the canal at this location to provide proper access to the property owner.


Item 9 -           Monthly Development Activity Report and the Building Activity Report for November and December 2006


The attached Staff Reports include the Development Activity report for December 2006 and the Building Activity Report for November 2006. These reports provide information on proposed development and projects under construction, commercial code enforcement activity and monthly building permits and inspection updates.


Staff recommends Council approve the Staff Reports (Monthly Development Activity Report and the Building Activity Report) for November and December 2006.


Item 10 -        Approval to “Piggyback” FDOT’s Contract with American Signal Company


 Staff has determined the need to purchase new changeable message sign boards.  The three boards we have now are ten years old or older and none are working at this time.  These message boards are used to warn residents in the event of traffic hazards such as accidents and to inform them of events such as Family Days, Flu Shots and Chamber events.  American Signal Company has a contract with the Florida Department of Transportation and they are willing to allow us to “piggyback” the contract.  Cost for each message board is $13,100.00 with a freight charge of $400.00 per board.  Staff requests approval to purchase four message boards for a cost not to exceed $54,000.00.  Funds are available in account 001 4300 541 6400.


 Staff recommends Council approval to “piggyback” FDOT’s contract with American Signal Company to purchase four message sign boards for a total cost not to exceed $54,000.00.


Item 11-         Approval to “Piggyback” Volusia County School Boards’ Bid for Office Supplies to Capital Office Products   


In an effort to streamline and reduce the City’s Warehousing, staff is recommending that the Council award the contract of Miscellaneous Office Supplies by “piggybacking” Volusia County School Boards bid to Capital Office Products.  Capital Office Products is a local company located in Daytona Beach, and one that the City has used previously.  The School Boards’ bid with Capital will not only give the City a 25-85% discount of items in their office catalog, but also gives the City back a 2% rebate on all office supplies purchased.  This is in addition to the HP Rewards Program, which gives 1 point for every $4.00 on all Hewitt Packard items purchased.  These accumulated points are redeemable for certain toners, printers, fax machines, digital cameras, etc. of HP products.  Capital Office also offers on-line ordering and desktop next day delivery at no extra charge, thereby eliminating the need to store and carry these low dollar items in our Central Stores area.


Funding will be out of each department’s operating accounts.


Staff recommends Council approval and award the “piggybacking” of Volusia County School Board’s Bid from Office Supplies to Capital Products, Inc.


             F.   FINANCE  


Item 12-         First Reading -  - Ordinance No. 2007-1  - Amending Chapter 54, Article   VI, Code of Ordinances Relating to the General Employees Retirement System Pension Plan


Attached is Ordinance No. 2007-1 outlining pension plan changes as have been discussed by City Council, the Pension Board, and Pension Members. 


These changes include: 


Item 1.             Increasing the mandatory Employee contributions from 5% to 5.9% of the participant’s basic compensation. 


Item 2.             Bringing into parity early retirement options for the 25 and 30 year early retirement options with the base formula. 


Item 3.             Increase the monthly supplement from $12 to $16.          


Item 4.             Adding the Deferred Retirement Option Program “Drop”.  


Item 5.             Giving the ability of employees with prior military service the option to “Buy Back” military service for periods of time prior to the date of employment within the City.


These changes will become effective immediately upon adoption of the attached Ordinance. 


Staff recommends approval.


City Manager Comments:  During our negotiations this past year, the employee group requested an increase in their retirement benefit.  The City Council agreed to add certain items to the retirement plan if the employees would pay the cost for the plan improvements.  Both the Union members and the non-union members have voted to approve the changes to the benefits and agreed to increase their contribution to the plan in order to properly fund the plan improvements.  You heard from the actuary at the last meeting about the status of the General Employees Pension Plan.  This Ordinance implements the provisions in the labor agreement. 


Second Reading:   February 20, 2007




Item 13-         Second Reading Ordinance No. 2006-54 – Administrative Rezoning – from  PCD to CI – Bradco Supply, formerly Daytona Budweiser


We recommend approval.


Item 14 -        Appeal of Planning Commission Decision – Kristen Brock


Kristen Brock, Owner/Applicant, requested approval of a variance from Chapter 17, Section 15(d)(1)(e), of the City of Port Orange Land Development Code (LDC) pertaining to setbacks for the “NP” (Neighborhood Preservation) zoning district.  The requested variance is to allow for an addition to a single-family home to be placed 17 ft. from the rear property line in lieu of the 25 ft. minimum rear yard setback required by the LDC.


On December 14, 2006, the Planning Commission denied the variance request, 3-3 Motion to approve failed on tie vote, resulting in denial with Commissioners Green, Booth, and McMasters voting no.  The Commissioners that voted no did so because the request failed to meet the variance criteria required by Chapter 17, Section 15(d)(1)(e), LDC, that would justify approval.


According to LDC Chapter 19, Section 1(f), the Council’s decision to reverse or uphold the Planning Commission meeting, the review criteria established for variance requests, and the Commission’s decision on the requested variance.  No new evidence may be presented, heard, or discussed.  Any new information must be presented as part of a new variance request.  Please see attached appeal request letter from the owner.


No staff recommendation is provided.




Item 15 -        Resolution No. 07 - 6 - Contract for the Sale of Parcel No. 103 to the County of Volusia for the Williamson Boulevard Widening Project


This Right of Way Purchase Agreement provides for the transfer of a portion of our existing Williamson Blvd. frontage of our Reclaimed Water Tank and Pumping Station Site located at 5955 South Williamson Blvd. to Volusia County.  This .155-acre parcel fragment has been recently appraised at the proposed referenced sale value.


As you know the City and County are currently in the process of working together to jointly get the Williamson Blvd. Widening Project designed, permitted, and placed out for bid.  City and County staff, along with their respective engineering design consultants, are currently finalizing their designs in order to get this important project underway. In the next month or so a joint project agreement with the County of Volusia will be brought forward to you for your consideration as well. 


We respectfully request your approval of this agreement.  This will help to assist the County in securing the necessary additional right-of-way and allow this project to proceed forward.


Staff recommends Council to approve Resolution 07-6 for the Right of way Purchase Agreement between the City of Port Orange and the County of Volusia for the sale of Parcel No. 103 to Volusia County for the appraised value of $44,000, and to authorize the Mayor and City Manager to execute the Agreement and all associated documents as required.


            I.   ADMINISTRATION


Item 16 -        First Reading Ordinance No. 2007 - 2 - Issuance of Debt for Land Acquisition and Infrastructure for Port Orange Town Center


The subject ordinance authorizes the issuance of Tax Increment Fund (TIF) bonds in the aggregate principal amount not exceeding $10 million in support of redevelopment activities in Port Orange Town Center.  Revenue from this bond issue will be used to reimburse the City for remaining internal and external loan balances pertaining to prior property acquisitions, as well as to facilitate additional property acquisitions and infrastructure improvements.  On January 9, 2006, the City Council accepted a Promissory note from the POTC CRA in the amount of $1.150 million to facilitate the acquisition of the Bryant/Singletary property.  This is one of the internal loans that will be defeased.


The primary pledge for these bonds will be POTC tax increment funds.  If necessary to obtain financing at reasonable and advantages rates, a secondary pledge of funds payable by the developer, special assessments levied on Riverwalk properties, or other legally available non-ad valorem funds of the City will be used.


Staff recommends Council to approve Ordinance No. 2007-2, authorizing the issuance of TIF bonds in the aggregate principal amount not exceeding $10 million for land acquisition and public infrastructure improvements for Port Orange Town Center redevelopment, and to authorize the Mayor and City Manager to execute all associated documents on behalf of the City.


Second Reading:  February 20, 2007


Item 17-         Resolution No. 07- 7 - 2007 Florida League of Cities Legislative Priorities


The City of Port Orange received a request from the Florida League of Cities asking that the City adopt a resolution in support of the League’s 2007 Legislative Priorities.  Attached is the proposed resolution.


Staff recommends Council to approve Resolution No. 07-7 supporting the Legislative Priorities of the Florida League of Cities.


Item  18 -       Halifax Trailer Park – Lot Rent Increase


Notification of a proposed 4.5% lot rent increase has been provided to all unit owners and renters in the Halifax Trailer Park, as required by Florida Statutes Chapter 723 and the Halifax Mobile Home Park prospectus.  The proposed 4.5% lot rent increase represents the latest cost of living increase as published by the U.S. Department of Labor.  Property taxes for the park have increased more than 200% this past year, and now are over $48,000 per year.   If approved, the rent increase will take effect March 1, 2007.  The last lot rent change was a 3.5% increase on October 1, 2005.


As a point of information, there are a total of 21 mobile home units in the park suitable for occupancy.  Nine (9) of the twenty-one (21) units are owner-occupied.  The City owns the remaining twelve (12) units.  Six of the City’s twelve (12) are currently vacant.  Twenty-six (26) additional units are unsuitable for human occupancy and are slated for demolition in February/March 2007. 


Staff recommends Council to authorize a 4.5% lot rent increase in the Halifax Trailer Park, effective March 1, 2007.


            J.   COUNCIL COMMENTS


Item 19 -        Comments/Concerns from Council Members


At this time, Council Members may discuss various matters of concern.