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

                        October 7, 2008


Date:               September 30, 2008



There will be no workshop sessions on October 7.  We will hold the normal quarterly meetings for the CRA’s inside the regular meeting. 




Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call




In addition to the normal reports, there are two items of business that the CRA will need to consider.  One of the items is a change to the Gladding Jackson contract for additional services and the other is to authorize the Marina Feasibility Study.  Donna will be in touch with each member of the CRA to discuss each of the items prior to Tuesday night’s meeting.

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


Item 4 -           Approval of Minutes:


Attached are the minutes of the following meetings:


August 5, 2008

August 19, 2008

August 26, 2008 – Special Meeting

August 26, 2008 – Regular Meeting


Staff recommends approval.


Item 5 -           Update on Construction Projects


Attached is the report from Quentin Hampton’s.  If you have questions, please contact Quentin Hampton’s or me.


Item 6 -           Update on Recreational Facilities


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


Item 7 -           Road Construction Report


Attached is the report from Public Works.  If you have questions, please contact either Warren Pike or me.


Item 8 -           Change Order No. 1 - Clyde Morris Boulevard at Dunlawton Avenue Intersection Improvements


This deductive change order is the result of deletion of the mast arm and sign panels and the addition of signage and minor drainage improvements.  The mast arm supported signage was included in the original design; and after re-evaluation by the City of Port Orange, the Engineer of Record and Volusia County determined it was unnecessary.


Staff recommends that Council approve Change Order No. 1 in the deductive amount of $44,838 and authorize the Mayor and City Manager to execute the associated contract documents.


Item 9 -           Change Order No. 2 - APM Construction


APM is the general contractor for the new Fire Station facilities.  Fire Rescue is requesting a change order not to exceed $100,000, which will finalize the construction of the stations.  The attached correspondence details the factors behind this request.


Staff recommends that Council approve Change Order No. 2 to APM Construction in the amount of $100,000.


City Manager’s Comments:  There were a number of items left out of the plans that should have been included.  Most notable was the fire dampers.  These are code required items.  One of the items that we wanted to include in the original building was passive solar.  We were concerned about the bid and did not include it as an alternative bid.  However, because of the excellent bids we received, we were able to have it installed.  This is part of our effort to make the building more green.  I have asked Tom to talk with each of you about the various elements of the change order prior to Tuesday night. 


I did ask the question about why the dampers were missed by both the architect and the plans reviewer.  We outsourced the plans review and it was simply missed by the plans reviewer.  They were simply missed during the quality control review by the architect as well.


Item 10 -        Change Order No. 4 - Coraci Sports Park


Attached is a cost proposal in the amount of $9,379 from Saboungi Construction to provide improved efficiency of the irrigation system for Coraci Sports Park.  This is a change order to the original contract and includes the addition of two zones to provide manual watering of the clay infields, a mainline loop outside of the fenced field area, and cycle stops for the two irrigation pumps.  The addition of these irrigation components is necessary to prolong the life of the pumps and to provide efficiency in the long-term operation and maintenance of the fields.


Staff recommends that Council approve the change order in the amount of $9,379 for the Coraci Sports Park.


Item 11 -        Purchase of Twelve Smith & Loveless Sanitary Sewage Lift Stations and Re-Validation of Sanders Company, Inc. as a Sole Source Supplier



The City of Port Orange has over 100 sanitary sewage lift stations that transmit raw wastewater to our Reclaimed Water Plant for treatment.  Keeping these pump stations in proper working order is a vital and critical component of our wastewater collection system.  Because of the inherently corrosive environment, the reasonably expected useful life of a sewage lift station averages 15 years.  It is a credit to both our Utilities Maintenance & Field Operations Divisions that all but one of the stations targeted for replacement in FY09 are in excess of 15 years old, with some having lasted more than 25 years. 


The 12 stations were selected based upon a variety of factors including age, usage, and overall condition.  Using actual sewage flow data obtained from our telemetry system, and taking into consideration actual system pressures, all new pumps were selected to optimize pump efficiency and minimize energy demand requirements. 


With respect to pricing, it should be noted that the City of Port Orange is in year four of a 5-year agreement with pump manufacturer Smith & Loveless. The agreement established prices for a variety of stations based upon horsepower, pumping capacity, and other factors.  Additionally, the agreement allowed for price increases based upon the United States Department of Labor-Bureau of Labor Statistics Price Index for “Special Industry Machinery & Equipment.”  The prices quoted for the 12 pumps represent a total increase of 14.2% over a four-year period, or 3.55% annually.  Meanwhile, if the City were directly purchasing the pumps at current manufacturer pricing, the actual increase would exceed 23% from the 2004 prices.  Therefore, our current contract has yielded over a 9% savings in this current year alone. 


Sanders Company is the manufacturer’s only Florida-authorized representative for Smith & Loveless products and parts in our area.  As such, we are requesting that Sanders’ sole source status be reaffirmed for the purchase of the Smith & Loveless products.  Also, we are requesting that a purchase order to Sanders Company be authorized in the amount of $408,612.00.  Funds are available in R&R Lift Stations SLS001, Account No. 40304015356397.


Staff recommends that Council authorize a purchase order to Sanders Company, Incorporated in the amount of $408,612.00 for the replacement of twelve complete sanitary sewer lift stations, and to revalidate Sanders Company as the Sole-Source supplier of Smith & Loveless pump station products and accessories.



Item 12 -        Addendum No. 72 to Engineering Services Contract with Quentin L. Hampton



This addendum authorizes the engineering design and construction phase services for the following projects: (a) Nixon Lane Area West Utility Improvements including both the extension of sanitary sewer service to unserved parcels and the replacement of aging and deficient potable water distribution systems in the vicinity (which includes portions of Sugar Forest); (b) Potable and Reclaimed Water Distribution System Replacement consisting primarily of replacing aging service laterals throughout the service area; (c) Reclaimed Water Plant Sludge Press Building Replacement; and (d) Sewage Pump Station Replacements throughout the service area. 


Each of the referenced projects is listed in the Capital Improvement Plan for FY09-FY14.  Funding for engineering aspects of the projects are as follows:  Nixon Lane Improvements funded in Sewer System Extensions UET002; Water Distribution System Replacement funded in URP001; RWP Sludge Press funded in Sewer Plant Replacements SSP002; and Sewage Pump Station Replacements funded in R&R Lift Stations SLS002. 


Staff recommends that Council approve Contract Addendum No. 72 with the firm of Quentin L. Hampton Associates, Incorporated (QLH) pertaining to engineering services, and authorize the Mayor and City Manager to execute the associated contract documents.


Item 13 -        Approve Fiber Optic for Police Station


Bids were solicited for Fiber Optic Services back in 2005 and were for a three-year period of time.  Team Fishel was awarded that bid.  This quote reflects those prices.  It is for the installation of the fiber optic loop for the Police Station, which includes the gym to the Performing Arts handhold, Amphitheater handhold, and Water Treatment Plant to the new Police Station.  The price totals $414,711.  Staff recommends that Council approve this expenditure to Team Fishel for these services for the amount stated.  Funding is budgeted in 314-1000-580-6200, Project No. CNE 006.


City Manager’s Comments:  As part of the Police Department Building, we are responsible for installing the fiber optic connection back to City Hall.  We will have a redundant loop from the Treatment Plant back to our switch at City Hall.  This is an owner-provided item.  We have adequate money available in the bond fund for this expenditure.


Item 14 -        IBM Annual Maintenance Agreements


Information Technology purchases an annual hardware and software maintenance contract from IBM with additional discounts below Florida State contract pricing.  Maintenance on the equipment is billed annually and is due October beginning each fiscal year.  Hardware maintenance and upgrades are on the IBM equipment such as both AS/400’s, peripheral devices, and PC’s.  The on-site maintenance provides for IBM to repair the equipment at our location and save us time by not having to locate vendors to fix machines when needed.  The software maintenance is used to correct AS/400 operating procedures and helps us when programs fail.  The amount due is $35,000 and has been allocated in Account No. 501-0700-590-4610.  Staff recommends approval.


Item 15 -        HTE Annual Software and Technical Support Maintenance Agreement


This is the annual software and technical support maintenance agreement we purchase from HTE so that we can continue to receive their support and any new enhancements they may make to our eleven (11) AS/400 software applications.  Each application is budgeted in Account No. 501-0700-590-4636.  HTE’s billing cycle varies for each application throughout the fiscal year and exceeds the $25,000 authority limit.  The agreement supports the current City and archived Public Safety system operations.  Staff recommends that the City purchase the Annual Software and Technical Support Maintenance from HTE at a cost of $96,000 for FY-09.


F.         FINANCE


Item 16 -        Resolution No. 08-50  - Revising Utility Service Fees, Rates, and Charges


At the last City Council meeting, the City Council discussed the energy charge.  The rates include the energy charge.  As you will recall, we will be reviewing energy costs every 6 months and adjusting the energy charge accordingly.  The energy charge beginning with the January billing will be for the 12 month period ending September 30.  The energy charge beginning with the July billing will be for the 12 month period ending March 31.  This provides adequate time for the reports to be completed and the charges computed.  Also, it will provide ample time for City Council review as well.


Item 17 -        Solid Waste Rate Discussion


On Tuesday night, we will be discussing the Solid Waste rates.  A separate item is the COLA for the waste hauler.  We are contractually required to provide a cost of living adjustment to the hauler under the terms of the bid document.  However, there are several options available to the City Council related to the rate that is charged to the property owner. 


The City Council has the following options available:


Status Quo - This means that the City Council would simply adopt the charges necessary to support the current level of service.  That would mean about a 4% increase.


Keep the current rate in place without changing the current level of service.  That means the City would take the difference from equity.  Some cities have done that.  In my opinion, this is dangerous.  It resolves the problem for one year but really compounds it in future years.


Reduce the cost - There are several components in the solid waste bill that could produce savings.  The five areas where potential savings could be produced are:


Reduce the bonding requirement.  Currently, the City requires 100% bonding.  Many cities require 100% for the first year; and if the service level is acceptable, then they reduce the bonding to 50% for the years thereafter.  We have spoken with Veoila about this option.  It would produce a savings of $.08 per residential customer per month.  Currently, the City charges Veoila rent at Virginia Avenue for its office operation.  It is important that we have their supervisor and customer service representative located at Virginia Avenue.  However, should the City Council decide to provide the space at no cost, then the rate could be reduced by $.08 per residential customer per month.  When the City bid the contract, we included a provision in the contract that City facilities would not be charged for collection and disposal.  Veoila has indicated that component adds $.66 per residential unit per month.  It would impact the various operating funds in the following manner:



General Fund, Recreation                                     60,374.60

General Fund, City Hall                                             9,529.80 

General Fund, Police                                                 4,765.20

General Fund, Fire                                                     3,177.60

General Fund, Public Works                                  14,294.40

Water Sewer                                                             34,944.00

Golf Course                                                                 9,529.80

EVAC                                                                               795.00

YMCA                                                               9,529.80

Halifax Trailer Park                                                     6,352.80


Total Annual                                               $153,293.00           



Although it is a direct pass through by the Solid Waste contractor, the monthly solid waste bill includes street sweeping.  An area of potential savings is to eliminate street sweeping in residential neighborhoods.  We would still sweep the arterials and collector streets but would no longer sweep any of the residential streets.  We have not received a quotation on what eliminating street sweeping in residential neighborhoods would mean to the monthly residential billing.   Under our current contract, the City allows unlimited collection of yard waste.  The contract does not require the yard waste to be tied, bundled, contained, bagged, etc.  It can be loose.  It has resulted in fewer illegal piles and fewer complaints from neighbors that property owners are placing their yard waste on vacant lots in residential areas.  Prior to this contract, the City charged extra for uncontained yard waste as well as large piles.  According to Veoila, our residents are producing on average of about 20 pounds of yard waste per month as compared to the norm for Florida of about 17 pounds. 


In summary, I think it is prudent for the City to take advantage of the bonding reduction and accept the $.08 rate reduction.  We are mid term in our contract with them.  The City Council still has the title to the vehicles and equipment should they default.  The bond would produce about $2 million in cash should a default occur, too.  Second, I am recommending that we require Veoila to maintain an office at Virginia Avenue but not charge them the rental payment.  This amounts to an $.08 rate reduction.  The greatest reduction would be to require the various operating funds to pay for solid waste services rather than having it buried in the monthly residential rate.  Finally, I am recommending that the City Council consider reducing the rate by $.66 per residential unit and requiring the cost for City facilities to be paid from the normal departmental operating budgets.  We will have to make adjustments to our other budgets. 


What about the street sweeping?  This would be a service reduction.  Until we receive the revised pricing, we will not be able to tell you how much it will reduce the monthly bill.  Finally, I am not recommending that we reduce the yard waste or change the service level.  Warren, Jan, and I think we would see a return to the illegal dumping that we experienced in the past when the City limited the amount of yard waste and required it to be contained.





Item 18 -        Second Reading - Ordinance No. 2008-24 - Amending Chapter 17, Section 24(b) and Section 27 of the Land Development Code Relating to Permitted Uses in the LI (Light Industrial) Zoning District and the Dimensional Requirements for a PCD or PUD (continued to date certain of 10/7/08)


Staff recommends approval.


Item 19 -        Resolution No. 08-51 - 2008 Port Orange Water Planning Area Interlocal Agreement (ILA)


We have reached agreement with Volusia County on the Water Planning issues and recommend approval of the interlocal agreement.


Item 20 -        Resolution No. 08-52 - Daytona Beach, Port Orange, and Volusia County Tri-Part Interlocal Agreement (ILA)


We have reached agreement with Daytona Beach and Volusia County about service west of Tomoka Farms Road.  We recommend approval.


Item 21 -        Discussion - Building in Drainage Easements


We intended to bring this forward at this meeting, but I would like to wait until we have a full Council to present this discussion.




Item 22 -        Resolution No. 08-53 - CPI Rate Increase - Veolia Environmental Services


As allowed by contract, Veolia Environmental Services has requested a CPI rate adjustment to their waste collection contract.  The rate adjustment is equal to 75% of the change in the cost of doing business as measured by fluctuations in the Consumer Price Index, Southeast Florida Urban Consumers, published by the U. S. Department of Labor, Bureau of Labor Statistics, for the preceding 12 month contract period.  As shown on the sheet attached, the rate adjustment is 3.9602%.   This rate adjustment is applied to the cost of collection only, and the new rates will be effective October 1, 2008.


Staff recommends approval of the attached resolution granting a CPI rate adjustment to the cost of collection under the waste collection contract with Veolia Environmental Services.


City Manager’s Comments:  We are contractually obligated to grant the CPI increase.  However, please understand that the CPI and the rate are two different items.





Item 23 -        Resolution No. 08-54  - Authorizing Support of World Changers for Repair of Homes of Qualifying Low Income Residents


World Changers is a not for profit organization that partners with cities throughout the country to bring in volunteers to help repair the homes of qualifying individuals.  They have asked the City of Port Orange and other area cities to provide the funds for materials; they provide all of the labor.  The estimated cost of materials for each home is approximately $2,500. 


They are scheduled to perform the work the week of July 25, 2009 and will work with City staff ahead of time to identify appropriate structures and estimate associated costs.  The City will be responsible for ensuring that the individuals meet income qualifications for assistance.


Staff recommends that Council approve the attached resolution supporting the World Changers organization in the amount of $10,000 funded through the City’s Community Development Block Grant and/or SHIP program, for the repair of homes of qualifying low income residents.


City Manager’s Comment:  This would be a joint effort.  Currently, South Daytona and Holly Hill would be participating in this effort.  The group would be required to provide all insurance as well as licenses in order to do the job.  We have talked with other cities who have been involved with this group.  They have been extremely pleased with the quality of the work as well as the amount of work that was accomplished in a relatively short period of time.  The group provides the labor and the City funds simply provide the materials. 


Local churches and other groups would provide the food for the workers during this concentrated work period.  Dr. Scott Pace, a Port Orange resident, is leading this effort locally. 


Item 24 -        Approval of the PEA Contract


We have reached agreement with the PEA.  Attached is a copy of the complete contract.  Should the members vote to approve the contract, we will ask the City Council to consider the contract on Tuesday night.  Should, for some reason, the vote be delayed, it may be necessary for the City Council to meet at a special meeting to ratify the contract.  All issues have been resolved.




Item 25 -        Comments/Concerns from Council Members


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