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

                        February 27, 2006


Date:               February 21, 2007



A.                 OPENING


Item 1 -     Pledge of Allegiance

Item 2 -     Silent Invocation

Item 3 -     Roll Call



B.                 CITIZEN PARTICIPATION (Non-Agenda)

C.                CONSENT AGENDA


Item 4 -           Project Managers’ Report


Attached is the Project Managers’ Report. If you have questions, please contact any of the Project Managers or me.


Item 5 -           “Piggyback” Volusia County’s Contract with Southeast Pavement Marking


The thermoplastic street striping contract with Southeast Pavement Marking Inc. is due to expire on April 30, 2007.   Staff requests approval to piggyback Volusia County’s contract with Southeast in order to stripe roadways at the lowest cost possible.  Funds are available in Account No. 00143005415363, Project No. IMI002.  Staff recommends approval to piggyback Volusia County’s contract (Bid No. 04-B-53PW) with Southeast Pavement marking Inc. to stripe roadways as needed.


Item 6 -           Approve Preliminary Dredging Evaluation – Coral Way, Venetian Circle, and Coconut Row Canals


Staff has obtained a proposal from Dredging and Marine Consultants (DMC) to provide preliminary evaluation services to remove and haul sediment from the canals on Coral Way, Venetian Circle, and Coconut Row.  Costs for the evaluation should be recovered through the special district assessment, once in place, prior to the actual dredging.  As shown on the attached proposal, the total cost should not exceed $21,900; and funds are available in Account No. 00143005416300.  Staff recommends approval to have DMC proceed with the preliminary dredging evaluation for a total cost not to exceed $21,900.


City Manager’s Comments:  Initially, we had discussions with the County about doing the dredging of these canals. They stated that they would be willing to do it if a special district was created and an engineering plan developed.  We have engaged a consultant to do the special district work.  However, they need the plan and cost estimate before they can move forward.  The City would need to front end the study.  If the district is created, then the City could recover the engineering cost from the district. 


Item 7 -           Approve Installation of Sidewalk along Spruce Creek Road


Staff has obtained the easement necessary to construct an additional 1,150 feet of sidewalk along Spruce Creek Road.  The City’s concrete vendor, Militello Contract Corp., has provided an estimate of $57,075; and a copy of their proposal is attached for your review.  Funds are available in Account No. 42108005336397, Project UET019.  Staff recommends approval to have Militello Contracting Corp. install 1,150 lineal feet of sidewalk along Spruce Creek Road for a total cost not to exceed $57,075.


D.                FINANCE


Item 8 -           Second Reading – Ordinance No. 2007-6 – Amending Chapter 54, Article VI, Code of Ordinances, Entitled General Employees’ Retirement System


We recommend approval.


Item 9 -           Monthly Financial Report


Attached is the Monthly Financial Report.  If you have questions, please contact either John Shelley or me.




Item 10 -        Discussion - Amending Article III, Chapter 14, Code of Ordinances, Relating to Building Permit and Related Fees



I have placed this item on the Agenda for discussion purposes.  There are proposed changes to the Ordinance related to building and related fees.  Before scheduling it for first reading, I would like for the City Council to review the proposed changes. The changes have been reviewed by the Construction Regulation Board.



Item 11 -        Discussion - Building Permit Fee Schedule Change


This amends the 2005 fee schedule relating to building construction fees to cover the cost of operating the Building Division in accordance with State Statute 553 and also the increased administrative and overhead cost over the past 2 years.  This will be done by elevating the cost of construction to coincide with the new ICC Building Valuation Data and charging fees based on a percentage of valuation.  This will allow the fees to rise consistent with the size of the project to obtain full cost recovery for all projects.  It will also increase the amount of the fee for the special travel and training fund to cover the cost of training for enforcement and implementation of the Florida Building Code consistent with and archive fee to cover the cost of State required records retention regulations.  Staff recommends that Council adopt the attached resolution amending the fee schedule in Resolution No 05-86.


City Manager’s Comments:  It has been about two years since we updated our fees.  I wanted the City Council to review the fee schedule before bringing it forward for adoption.  The Construction Regulation Board has reviewed the fee schedule and changes. 

F.                 PUBLIC UTILITIES


Item 12 -        Resolution No. 07-15 - Mitigation Bank Trust Fund Agreement to Demonstrate Perpetual Management Financial Assurance between the City of Port Orange and the Riverside National Bank, as Trustee



The St. Johns River Water Management District (the “District”) requires the City to establish a mechanism for assuring the District that the Mitigation Bank will be maintained and managed as set forth in the permitting conditions.  Currently, the City expects to annually incur approximately $13,890.  The City shall make an initial deposit into the Fund to provide financial assurance to the state and may adjust the deposit from time to time to reflect the actual costs of management of the mitigation bank.  The amount of the initial deposit shall be $231,500.  This deposit, at a 6% interest rate of return, would generate an annual income of $13,890 annually.  Staff recommends that Council approve the attached resolution approving the Mitigation Bank Trust Fund Agreement to Demonstrate Perpetual Management Financial Assurance, authorizing the Mayor and City Manager to execute documents on behalf of the City, and authorizing the City Manager to adjust the amount of the deposit as shall be required for compliance by the St. Johns River Water Management District.


City Manager’s Comments:  Some weeks ago, we brought forward an agreement to the City Council related to the Mitigation Bank.  The City made a proposal based upon our understanding of what was required.  We understood that the City must spend almost $14,000 annually to manage and implement the items necessary to keep us in compliance with the mitigation credits.  What the District rule states is that it must be in a form that they can guarantee a perpetual fund for maintenance should the City default on its requirement to maintain.  You have to understand that local governments normally do not have mitigation banks.  The City of Port Orange is a rarity.  The rules are designed to deal with the private property owners, not governmental owners.  With the City’s first sale of mitigation credits, we generated enough money to fully fund the trust fund that will generate the type of money that the District desires to have in the fund to perpetually maintain the mitigation bank should the City go out of existence or otherwise default.  Therefore, I am recommending that we fully fund the mitigation trust fund as required by the St. Johns River Water Management District.



Item 13 -        Change Order No. 1 and Final Close Out for the Reclaimed Water Recharge Reservoir Phase I Project



Phase I of the Reclaimed Lake project is complete and ready for final close out.   During the course of this construction project considerable delays were experienced by the contractor, Censtate Contractors, due to problems obtaining the required building permit from the County of Volusia.   As this project is located in the unincorporated Wellfield property, and preceded the existing inter-local agreement for management and jurisdiction of the area, building permits were required through the County.  A total of 315 additional days are included in this change order, of which 261 are due to permitting problems.   These delays resulted in additional cost to the contractor.  Originally the contractor had requested additional compensation in the amount of $633,251.82.  This was considered unreasonable and the amount was negotiated down to $174,691.06.  Documentation outlining the request is attached.  Make note that this request includes no additional cost to the City for the additional time allowed in the contract.  This represents less than 2% increase to the original contract amount.  Funds are available in the current CIP, Project #UET 011.


Staff recommends that Council approve Change Order #1 and final close out, in the amount of $174,691.06, to Censtate Contractors and authorize the Mayor and City Manager to sign documents on behalf of the City.


City Manager’s Comments:  Normally, this item would have been on the consent agenda.  However, I wanted to bring it to the City Council’s attention.  The initial change order claim was $663,251.82.  We have been able to negotiate that price down to $174,691.06.  First, they were delayed by 261 days in permitting by Volusia County.  This was before the interlocal agreement was adopted by the City and Volusia County related to permitting and inspection of construction activity on the city owned properties in the wellfield.  The second issue related to the escalation of fuel and material cost during the period.  As indicated, the City staff did not believe that the entire cost was justified and, therefore, is not in a position to recommend approval of the change order.  However, the staff is able to support the additional change order based upon the delays that were not at the fault of the contractor.


Item 14 -        Deductive Change Order No. 2 (Final) to CenState Contractors for the Central Wellfield Expansion Phase III Project



Phase III of the expansion of our Central Recharge Area Wellfield is complete.  This project included the addition of six (6) new supply wells and the installation of emergency generators.   Change Order #1, previously approved by Council, relocated one of the emergency generators to an existing well sight, better utilizing the emergency power capabilities of the unit.


Deductive change order #2, in the amount of $45,795.84, brings the project total to $3,959,239.18.


Staff recommends that Council approve Change Order #2 (Final) to Censtate Contractors, in the deductive amount of $45,795.84, and authorize the Mayor and City Manager to sign documents on behalf of the City.



G.                ADMINISTRATION


Item 15 -                    Discussion - Manatee Trust Fund



With the adoption of the Volusia County Manatee Protection Plan and the interlocal agreement to implement procedures and fee collection for the Volusia County Manatee Trust Fund the City of Port Orange has been established as a “slip aggregation” option participant.   All new marine facilities except single-family residential docks will be allocated out of an available slip pool of 1,110.  The process of allocating and aggregating slips should be managed to benefit the environment, the public and the vision for Port Orange.  In order to create procedures to do this well several questions and policy issues must be answered by City Council to provide direction for staff.


The subject workshop is to review the list of key questions and policy issues prepared by staff and receive feedback from the City Council prior to proceeding to create a Manatee Trust Fund.


City Manager’s Comments:  The City Council wanted to discuss this item during a workshop session.  Because this agenda is short, I thought it would be best to include it inside the regular City Council Meeting.  The City Council has a CRA meeting before the start of the regular City Council Meeting.



H.                 COUNCIL COMMENTS


Item 16 -        Comments/Concerns from Council Members


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


Item 17 -        City Council Committee Reports


At this time, Council Members may discuss various committees to which they have been assigned.