To:                   Mayor Allen Green

                        Vice Mayor Dennis Kennedy

                        City Council Member Robert Ford

                        City Council Member Don Burnette

                        City Council Member Robert Pohlmann


From:              Kenneth W. Parker, City Manager


Subject:          Agenda Commentary for Regular City Council Meeting of

                        January 4, 2010


Date:               December 23, 2010



A.           OPENING


Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call


Item 4 -           Award of $1,200 to Port Orange Fire & Rescue from Factory Mutual Insurance Company for their Public Education Division and education materials

Port Orange Fire & Rescue was notified in late November that FM Global has selected the Department’s Public Education Division for an award of $1,200 toward public education materials.  The City of Port Orange incurs no financial obligation through the acceptance of this award. Notification of this award comes at a time when the Public Education Division has embarked on the NFPA’s “Remembering When” Program for seniors in our community.  This program will be instrumental in offering fire and fall prevention information to seniors through a partnership with Comfort Keepers (home care agency).  With this award, we will be able to educate seniors living independently and within assisted living facilities on how to avoid the top causes of injury and death for their age group—falls and fires.  We would also like to recognize and thank FM Global for their generosity and its potential to play a tremendous role in the safety and well-being of this community.


Item 5 -           Special Recognition for Retired City Employees

At this time, Council Members will recognize the following employees who retired during 2010:  Michael Amara, Mark Abramajtis, Anna Cady, Gary Deberry, Rebecca Groom, Steven Huntt, Francis Irwin, Shirley Kelly, John Kondos, Chris Kosuta, Glenda Leftwich, Roberta Palmer, Gary Sedacca, Thomas Simmons, Wayne VanArsdale, Sean Walker, Judith Wilson.




D.           CITIZEN PARTICIPATION (Non-Agenda – 15 minutes)



Item 6 -           Approval of Minutes

Attached are the minutes of the following meetings:

a.    October 19, 2010 – Special City Council Meeting (Fire Services)

b.    October 26, 2010 – Regular City Council Meeting

c.    November 3, 2010 – Special City Council Meeting (Police Services)

d.    November 3, 2010 – Regular City Council Meeting

e.    November 16, 2010 – Special City Council Meeting (Fire Services)

f.     November 23, 2010 – Regular City Council Meeting

g.    December 7, 2010 – Regular City Council Meeting

h.    December 14, 2010 – Special City Council Meeting (Shade)

i.      December 14, 2010 – Special City Council Meeting (Fire Services)

j.      December 14, 2010 – Regular City Council Meeting

Staff recommends approval of the minutes.

Item 7 -           Update on Recreational Facilities


Attached is the report on recreational facilities.


Item 8 -           Construction Activity Report


Attached is the construction activity report.

Item 9 -           Nixon Lane Area Utility Improvements Bid Award #B11-01


This item needs to be removed from consent agenda in order for the City Council to consider an appeal of the City Manager’s determination that the Westwind bid did not meet the bid requirements.  Attached is their letter of appeal to the City Council.


City Manager Comments: Westwind was the apparent low bidder when the bids were opened.  When the bid documents were reviewed, Westwind failed to properly acknowledge receipt of the addendums and failed to include pricing for Addendum 2 in their bid document.  Based upon the evidence presented at the hearing, the City Manager determined that Westwind did not properly acknowledge the addendums and did not include pricing in their submittal for Addendum 2.  Westwind provided testimony that the Addendum 2 had a different address than Addendum 1 and apparently it went to the spam folder.  Quentin L. Hampton received an open and read notice back from Westwind.  The specifications make it very clear that the read notice does not constitute acknowledgement.  In checking with computer technicians, the email must be physically opened in order for a read notice to be sent back to the sender.  In their testimony, Westwind stated that they had included enough money in the bid to handle what was included in Addendum 2 and therefore it would not need to change their bid in order to accommodate the work that needed to be done in Addendum 2.  Staff has been consistent in handling technical bid compliance leaving the determination of waiver of irregularities in the City Council’s preview.  There is a great financial differential between Westwind and the second bidder. 


I have attached all of the letters, spreadsheets, and other materials. 


What are the options available to the City Council?


1.            The City Council may determine that the irregularities are minor and waive any and all irregularities and award the contract to Westwind.  This option provides the City with the lowest price on this project.  Westwind is capable of constructing the improvements.

2.            The City Council could chose not to waive the irregularities and award the bid to the second bidder.

3.            The third option is the City Council could decide to award a local bid preference to the third lowest bidder, Masci.  Masci is a Port Orange business and meets the criteria for local bid preference.  The awarding of the local bid preference is at the City Council’s discretion.  If the full 3% that is allowed under the City Ordinance is awarded, it would change the bid order and place Masci second.  Masci appealed to staff to recommend the award of the local bid preference.  In a letter to Masci, I indicated to them that I could not recommend to the City Council an award of a bid preference.  The reason was that Masci currently has three jobs under contract with the City of Port Orange.  Two of the jobs are behind schedule.  One job is progressing satisfactorily.  I had a concern about awarding a fourth project to Masci with two projects being behind schedule.  In order for Masci’s request to be considered, the City Council must handle the Westwind appeal first.  If the City Council determines that Westwind irregularities are to be waived, then the City Council does not have to address the local bid preference issue.


F.            BUDGET APPROPRIATIONS (John Shelley)


Item 10 -        Resolution No. 11-1 – Budget Appropriations


The City Council approved acceptance of various Federal, State and local grants.  The City Council also approved the acceptance of donated funds.


The attached resolution appropriations budgets revenues and expenditures for the grant and donation revenue and expenditure. Staff recommends approval.


G.           ADMINISTRATION (Ken Parker)


Item 11 - Resolution No. 11-2 – Early Retirement Program for Eligible Employees


Some months ago, I asked the City Council if they could consider allowing me to offer employees that are in DROP if they would accept an early retirement option similar to the one offered to non-DROP employees last summer.  The thought process was to lower the payroll for the next budget year.  Virtually all of the individuals who are in DROP are at or near the top of their pay range.  Also, it would allow the City an opportunity to look at organizational issues and organizational structure.  On December 28, a meeting was held in the City Council Chambers.  Four individuals from the Police Department attended and returned their letters of interest in participating in the early retirement program.  There are three from the Fire Department that had given their letters of interest to Human Resources but were not in attendance. 


The Resolution provides for the early retirement option to be offered on the following dates: March 31 or April 1 or June 30 or July 1.  Both April 1 and July 1 are Fridays.  The question was asked during the meeting about giving employees the option of either of those dates.  From the City’s standpoint, it is the end of a week and probably makes sense for payroll purposes.  Also, it was brought to my attention that it would help with DROP payments as well. 


The question is always asked:  Who would be retiring anyway with or without an incentive?  There is always one or two who may have planned to retire any way.  But the truth is there is no way of knowing exactly who would retire until they actually stated to the Pension Board their intent to begin drawing retirement benefits rather than placing the dollars in their DROP account. 


What is the cost of the program?  Most of the employees would receive the full 13 weeks.  Until we get the final count of exactly who will be taking the early retirement option, we will not know.  Where will the money come from?  At the end of last year, we have funds remaining after all the bills were paid.  I would ask the City Council to appropriate those dollars to meet the obligation. 


The program does exclude individuals who have less than 90 days remaining in their DROP program.  Finally, there is a provision in the Resolution that allows the City Manager to enter into an early retirement agreement with appointed employees who are eligible to retire under the Pension Ordinance and was employed on or after September 15, 2003. 



Item 12 -        Comments/Concerns from Council Members

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

Item 13 -        Working session regarding City’s Vision


The Mayor asked that I include an item on this Agenda that would ask the City Council members what they desired to achieve.  I have included the adopted Vision Statement for City Council review. 


Based upon the comments from the City Council, staff will bring the items back to the City Council for consensus and inclusion in the City’s work program.  Because many of the items may have budgetary impact, we will attempt to quantify the budget impact for City Council as well and state whether there are funds available and from what revenue sources.