MEMORANDUM

 

 

 

 

To:                   Mayor Allen 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

September 3, 2008

 

Date:               August 25, 2008

 

 

The City Council Meeting will be held on Wednesday, September 3, not on our normal Tuesday City Council Meeting date.  Be sure to mark this on your calendar.

 

There will be a shade meeting at 5:30 p.m. on September 3 since we did not complete our discussion on August 26.  The purpose of the shade meeting is to discuss on going contract negotiations with Fire Commanders, Fire Lieutenants, Paramedics, Driver-Engineers, and Firefighters, PEA, and Police Lieutenants. 

 

A.                 OPENING

 

Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call

 

 

B.                 SPECIAL REPORT

 

Item 4 -           Discussion of Proposed Millage Rate FY08/09

 

This is the first public hearing.  On August 26, the City Council instructed the staff to reduce the operating budget and to reduce the millage rate to 4.60 mills.  This will be accomplished by:

 

1.                  Savings achieved through renewals in insurance.

2.                  Reduction in the assumption for fuel cost (I will be recommending to the City Council that the City carry money forward to handle any spikes in energy cost above the anticipated level).

3.                  Funding a portion of the Rose Bay Project from dollars remaining in the Drainage Bond issue. 

 

I am concerned about the uncertainty of State revenues.  The State revenues continue to under-perform and not meet the estimates.  Should the City Council decide to reduce the millage and budget further, we will be prepared to calculate the millage rate and the budget reduction necessary to achieve the desired millage rate.

 

Item 5 -           Resolution No. 08-40 - Adopting the Tentative Millage Rate for FY08/09

 

Any millage rate above 4.32744 will require a 4/5 vote of City Council.   Margaret will be providing you with the sheet that leads you through the discussion of adopting the preliminary millage rate.  The City Council can still reduce the budget further at the second public hearing that will be conducted on September 17.

 

Item 6 -           Resolution No. 08-41 - Adopting the Tentative Operating Budget for FY08/09

 

The attached Resolution approves the budget.  Based upon your instructions last Tuesday, the budget has been adjusted according.

 

Item 7 -           Resolution No. 08-42 - Adopting the Tentative Capital Budget for FY08/09

 

The City Council is approving the implementation of the first year of the City’s CIP.

 

C.                CITIZEN PARTICIPATION (Non-Agenda – 15 Minutes)

D.                CONSENT AGENDA

 

Item 8 -           Approval of Minutes

 

Attached are the minutes of the following meetings:

 

  • Regular City Council Meeting -     July 15, 2008
  • Regular City Council Meeting -     July 22, 2008

 

Staff recommends approval of the minutes.

 

Item 9 -           Update on Construction Projects

 

Attached is the report from Quentin L. Hampton Associates.  If you have questions, please contact Mark Hampton or me.

 

Item 10 -        Update on Recreational Facilities

 

Attached is the update from Parks and Recreation.  If you have questions, please contact either Susan Lovallo or me.

 

Item 11 -        Road Construction Report

 

Attached is the Road Construction Report.  If you have questions, please contact either Warren Pike or me.

 

Item 12 -        Bid Award – Construction Services Contract for Garnsey Water Treatment Plant Softener and Filter Structure Enclosure

 

 

FAC 62-555.320(12b) regarding disinfection requirements for open air water treatment plant process tanks became effective January 1, 2008.  Facilities have been given a grace period of approximately two years to become fully compliant with this unfunded mandate.

           

For Port Orange, compliance requires retrofitting coverings of virtually the entire open air sections of the entire water treatment plant, including the softener and filter sections.  The purpose of the covering is to provide a barrier preventing birds from defecating into the open water treatment process while passing over the plant, thereby eliminating the potential for contamination of the drinking water.

           

Three firms submitted bids on August 12, 2008, and the apparent low bidder was Centstate Contractors Incorporated at a cost of $1,393,000.00.  Subsequent evaluation of the bids conducted by the City’s Engineering Consultant, Quentin L. Hampton, found Centstate’s bid prices to be fair and consistent within current industry standards.  In addition, references for previous projects were contacted to confirm the ability of both the contractor and their subcontractors to perform the specified work.  As such, City staff has found Centstate to be the most responsive, responsible, low bidder.   

           

Funding for this project is available from the account entitled WWP003 Water Plant Improvements.  Therefore, we are requesting that Council award a contract to Centstate Contractors in the amount of $1,393,000.00.     

           

Staff recommends that Council approve award of a contract to the firm of Centstate Contractors, Incorporated for Bid B08-16 Garnsey Water Treatment Plant Softener & Filter Structure Enclosure, in an amount of $1,393,000.00, and authorize the Mayor and City Manager to execute the associated contract documents.

 

Item 13 -        Approve Purchase of Furnishing for Fire Stations 72 and 75

 

Fire & Rescue needs to purchase furnishings for the two new Fire Stations that are being built as part of the Public Safety Bond.  This price includes all furniture for the living, office, lobby, and sleeping quarters.

 

Staff recommends that Council approve the purchase of furnishing for Fire Stations 72 and 75 under State Contract from PRIDE of Florida for a total cost of $64,258.53.

 

City Manager’s Comments:  The City Council allocated these dollars from the previous year’s budget.  These dollars have been appropriated each year since the City Council decided to construct the Fire Station.  The owner-provided items have a life expectancy of less than the bond issue term; therefore, it has been the City’s practice not to acquire those items from the bond issue proceeds. 

 

The furnishings are being acquired under a State contract with PRIDE.  PRIDE is part of the State Prison System.  They provide excellent service as well as an excellent product.

 

Item 14 -        Approval of SHIP Grant down payment assistance for Kimberly E. Will

 

The State Housing Initiatives Partnership program is a grant that is funded by the State in an effort to assist low and moderate-income individuals with housing needs. 

 

Kimberly Will has been approved for assistance through the City’s contractor Mid-Florida Housing Partnership. In addition to approval, Kimberly has attended classes on credit counseling and home ownership, as well as met all State regulations for assistance.

 

All contracts and closing statements will be subject to approval by the City of Port Orange Legal Department prior to award of assistance and property closing.

 

Staff recommends that Council authorize loan up to $60,000 and acceptance of second mortgage and promissory note for the purchase of real property.

 

 

E.                 FINANCE

 

Item 15 -        Resolution No. 08-43 - Authorizing Issuance of Stormwater Refunding Revenue Bonds Not to Exceed $4,700,000

 

The attached resolution authorizes the refunding of 1998 Stormwater Bonds, ultimately reducing our debt service cost because of the change in interest cost.  Please see the attached Resolution for specific details.  Staff recommends approval.

 

Item 16 -        Loan Commitment for Stormwater Utility Refunding

 

Bids were solicited for the refunding of the stormwater utility loan.  Five bids were received, with the most favorable one being from Hancock Bank payable over ten (10) years, at a rate of 3.69% with no prepayment penalty.  Hancock has a Bond Counsel fee of $1,000.  In addition and included in this analysis, the City’s Bond Counsel and Financial Advisory fees have been estimated at $50,000.  Total debt service savings on this refunding can either be taken upfront with an initial savings of $184,000 or a level debt savings of about $24,000 per year over the ten years.  Toby Wagner, the City’s Financial Advisor, has reviewed the proposals; and he, along with staff, recommend that Council approve this loan to Hancock for their proposal as submitted.

 

Staff recommends that City Council approve the Loan Commitment for Stormwater Utility Refunding to Hancock Bank for their proposal as submitted with terms, including interest at 3.69%, semi-annual payments on 10/1 and 4/1, maturing in ten years.

 

City Manager’s Comments:  I am recommending that we take as much of the debt service savings in the initial year.  This is not a lot of savings; however, the bond issue is very small, too.  Our estimate on the cost of issuance is on the high side as well.  The amount that we actually save may be more in the initial year than we are projecting based on the actual cost of issuance.

 

F.                 COMMUNITY DEVELOPMENT

 

Item 17 -        Concurrency and Fair Share Agreement for Ravenwood Veterinary Clinic

 

The proposed Fair-Share Agreement has been prepared in conjunction with the expansion plans for the Ravenwood Veterinary Clinic, located on the west side of Clyde Morris Boulevard, south of Woodlake Drive. A new 4,682 square foot clinic building will replace the current clinic building. The traffic impact analysis (TIA), completed this year by Ghyabi & Associates, anticipates impacts to the Dunlawton Avenue/Clyde Morris Boulevard intersection. The $5,704.00 fair-share mitigation payment will go toward the cost of improvements for this intersection, as shown on Exhibit A-2 of the Agreement. The Agreement has been executed by the applicant and is attached for review.

 

The site plan has been reviewed by staff and found to be in compliance with the City’s development requirements.  A Development Order will be issued upon City Council approval of the Fair-Share agreement and receipt of the fair-share mitigation payment.

 

Staff recommends that Council approve the Concurrency and Fair-Share Agreement for the Ravenwood Veterinary Clinic Site Plan.

 

 

G.                COUNCIL COMMENTS

 

Item 18 -        Comments/Concerns from Council Members

 

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

 

 

 

Kwp/rlg