MEMORANDUM

 

 

To:                   Mayor Allen Green

                        Vice Mayor Dennis Kennedy

                        Council Member Bob Ford

                        Council Member Donald Burnette

                        Council Member Robert Pohlmann

 

From:              Kenneth W. Parker, City Manager

 

Subject:          Agenda Commentary for Regular City Council Meeting of

                         April 26, 2011

 

Date:               April 19, 2011

 

 

Just a reminder that the City Council will meet at 5:15 p.m. in a shade meeting to discuss labor negotiations.  At 6:15, the City Council will convene in a mini-budget workshop.  The purpose of the meeting is to conduct a mini-budget workshop.  The topic of the workshop will be the preliminary revenue estimates for 2011-12.  See the materials attached related to the workshop meeting.  The regular City Council Meeting will begin at 7:00 p.m.

 

  1. OPENING

 

Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call

 

  1. SPECIAL REPORTS, RECOGNITION, AND PROCLAMATIONS

 

Item 4 -           Arbor Day Proclamation

 A proclamation honoring Arbor Day will be read.

 Item 5 -           Josh Wagner, County Councilman

 Volusia County Councilman will be in attendance to speak with the City Council.

 City Manager Comments: This is an opportunity for the City Council to discuss with County Council Member Wagner issues that may be on the Council Agenda.  Currently, the City has three issues working with the County: dispatch services, participation by the County in the Stanaki Land Acquisition and then the management of the property by the County as part of the Spruce Creek Preserve and finally, discussions with the County related to Fire Service. 

 

C.   SPECIAL REPORTS

 

Item 6 -           Report from KemperSports Management regarding Cypress Head Golf Course

 

At this time, a representative of KemperSports Management will make a report to Council regarding the activities of the Golf Club at Cypress Head.

 

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

 

E.   CONSENT AGENDA

 

Item 7 -           Project Managers’ Report

 

Attached are the Project Managers’ Reports.  If you have questions, please contact any of the Project Managers or me.  Staff recommends acceptance of the reports.

 

Item 8 -           Engagement Letter for Pension and OPEB Actuarial Consulting

 

Periodically, the City requires additional independent actuarial consultation.  This consultation may involve any of the defined benefit plans or the City other post-employment benefit (OPEB) calculation.  Gabriel Roeder Smith & Company (GRS) have provided this type of service to the City in the past with results being more than adequate.  Attached is the proposed engagement letter from (GRS) following the service and billing guidelines of the State Contract.  This is an ongoing contract with specific jobs priced in total on an as needed basis.

 

Staff recommends approval.

 

City Manager Comments: Some time ago, I suggested that it was time that the City had its own actuary.  First, we need somebody to calculate the implied subsidy of health insurance that is offered to retirees.  The City of Port Orange does not pay any of the costs related to retiree health insurance.  However, State Law requires that retirees be offered health insurance at the same cost as the City provides to its employees thereby creating an implied subsidy.  The retiree is required to pay 100% of the cost for both the retiree and spouse.  Second, when in negotiations, we currently rely on the Pension Boards’ actuaries to calculate the benefit cost and to provide the City with a report on the unfunded liability.  This will give the City an actuary to work with that is not affiliated with the Pension Boards.  Finally, it will provide the City with an actuary to review the calculations provided by the Pension Boards. 

 

Item 9 -           Approval to Piggyback State and Sheriff Department Contracts for Fleet Vehicle Purchases

 

Staff has identified the older vehicles in the City’s fleet which need to be replaced.  The Fleet Purchase Summary sheet attached provides a breakdown of each vehicle requested by user department, age of vehicle, cost to maintain, mileage of each and budget information. Vehicle purchases which have been deferred are also shown.  Staff requests approval to piggyback the State contract and Volusia County Sheriff’s contract in order to purchase the vehicles at the lowest cost possible.

 

Total FY2011 budget for Fleet purchases is $1,977,500.00.  Total cost for the vehicles requested will not exceed $584,019.00 resulting in a surplus of $1,393,481.00.  Funds are available in the Fleet Finance Account #50510005806400.

 

Staff recommends approval to purchase the fleet vehicles as shown on the Fleet Purchase Summary sheet for a total cost not to exceed $584,019.00

 

City Manager Comments:  Each piece of equipment has an amortization schedule.  This is the predicted life span of that equipment.  When the City acquires the vehicle and equipment, the cost of that equipment is amortized over the expected life.  However, when the vehicle and equipment is fully amortized a further examination of the vehicle and equipment is performed to determine if it should be replaced or retained.  A total and complete evaluation is performed including the condition of the equipment and the cost to operate the equipment and finally the maintenance cost.  All of those factors are taken into consideration when making a recommendation to replace equipment.  Each vehicle and piece of equipment has a lease rate and those funds are paid into the Fleet Fund so that when the vehicle and equipment needs replacing the funds will be there to replace the equipment.

 

Item 10 -        Approval of the Ranking of Dental Insurance Proposers and Authorization to Proceed with Negotiations of a Contract for Dental Insurance with MetLife

 

Currently, the City is fully insured with Connecticut General Life Insurance Company (CIGNA) for its dental coverage for employees, retirees and their dependents.  The City’s two-year contract with CIGNA will expire on 9/30/11. 

 

On 1/12/11, the City issued an RFP for fully insured medical and dental insurance quotes.  The RFP requested that dental benefit plan designs be as similar as possible to the current two plans offered.  The City received eight dental proposals.  The same committee that the City had formed to rank the fully insured medical proposals was used to rank the fully insured dental proposals.


On 3/23/11, the City held a public meeting to review and analyze the proposals with the committee designated for the proposal review.  After review of all the evaluation components of the RFP including cost, coverage, providers, service/customer service, wellness and disease management, reporting services, stability and references, the committee ranked the proposers in the following order:

 

  1. MetLife
  2. Florida Combined Life (Blue Cross)
  3. CIGNA

 

Based on this ranking and the closeness in scores, the committee decided to interview these top three proposers.  On 4/6/11, the committee interviewed the three proposers.


MetLife was ranked highest by the committee.  If Council is in agreement with the Committee’s ranking, the next step will be to begin negotiations with MetLife.

 

Staff recommends approval of the ranking of dental insurance proposers and to authorize the City Manager (or his designees) to proceed with negotiation a contract with MetLife.

 

City Manager’s Comments:  The City of Port Orange has received proposals for Dental Insurance.  A committee has reviewed the proposals with the assistance of our consultant, Siver and Associates.  After hearing presentations, the Committee has ranked MetLife first.  It is recommended that the staff be authorized to proceed to negotiate a contract with MetLife for Dental Insurance.

 

Item 11 -        Second Amendment to the Rose Bay Ecosystem Restoration Funding Agreement

 

The City Council entered into contract with Ryan Incorporated Southern for the B-23 Canal dredging project as well as the close-out elements associated with the Rose Bay restoration project.  The attached amendment allows the St. Johns River Water Management District (District) to reimburse the City, as opposed to the Army Corps of Engineers, for costs associated with the Rose Bay project in accordance with the one-third cost share agreement among the District, City and Volusia Council.

 

Staff recommends approval of the second amendment.

 

 

 

Item 12 -        Proposed License Agreement – Cedar Street Right-of-Way (3 Cedar/Covert)

 

The City Council previously indicated a willingness to consider License Agreements with homeowners abutting the B-23 Canal on Cedar Street who have had and who have been taxed on improvements within the right-of-way with the condition that any existing structures be removed so that the seawalls could be reconstructed.  Kim Covert, 3 Cedar Street, has requested such an agreement.

 

The attached License Agreement requires Ms. Covert to carry a $1,000,000 liability insurance policy naming the City as an additional insured and to remove all existing structures from the property within 45 days.  The Agreement allows for one covered boat slip and dock to be rebuilt according to the limitations set forth in the document.  Ms. Covert would also be responsible for all maintenance associated with the site. 

 

The Agreement does not inure to successors or assigns, so in the event the property is sold, the City has the option of requiring the improvements be removed, allowing them to remain, or entering into a new License Agreement with the subsequent property owner abutting the right-of-way.  Staff recommends approval of the License Agreement as attached.

 

Staff recommends Council approve a License Agreement with Kim L. Covert to utilize a portion of the right-of-way located adjacent to 3 Cedar Street, Port Orange, Harbor Oaks Unit 1 for access and construction of a dock and authorize the Mayor and City Manager to execute the necessary documents.

 

Item 13 -        Proposed License Agreement – Cedar Street Right-of-Way (6 Cedar/Covert)

 

The City Council previously indicated a willingness to consider License Agreements with homeowners abutting the B-23 Canal on Cedar Street who have had and who have been taxed on improvements within the right-of-way with the condition that any existing structures be removed so that the seawalls could be reconstructed.  Kim Covert, 6 Cedar Street, has requested such an agreement.

                       

The attached License Agreement requires Ms. Covert to carry a $1,000,000 liability insurance policy naming the City as an additional insured and to remove all existing structures from the property within 45 days.  The Agreement allows for one covered boat slip and dock to be rebuilt according to the limitations set forth in the document.  Ms. Covert would also be responsible for all maintenance associated with the site. 

 

The Agreement does not inure to successors or assigns, so in the event the property is sold, the City has the option of requiring the improvements be removed, allowing them to remain, or entering into a new License Agreement with the subsequent property owner abutting the right-of-way.  Staff recommends approval of the License Agreement as attached.

 

Staff recommends Council approve a License Agreement with Kim L. Covert to utilize a portion of the right-of-way located adjacent to 6 Cedar Street, Port Orange, Harbor Oaks Unit 1 for access and construction of a dock and authorize the Mayor and City Manager to execute the necessary documents.

 

Item 14 -        Proposed License Agreement – Cedar Street Right-of-Way (7 Cedar/Dahl & Lentz)

 

The City Council previously indicated a willingness to consider License Agreements with homeowners abutting the B-23 Canal on Cedar Street who have had and who have been taxed on improvements within the right-of-way with the condition that any existing structures be removed so that the seawalls could be reconstructed.  Mr. Dahl and Ms. Lentz, 7 Cedar Street, have requested such an agreement.

 

The attached License Agreement requires Mr. Dahl and Ms. Lentz to carry a $1,000,000 liability insurance policy naming the City as an additional insured and to remove all existing structures from the property within 45 days.  The Agreement allows for one covered boat slip/lift and dock to be rebuilt according to the limitations set forth in the document.  Mr. Dahl and Ms. Lentz would also be responsible for all maintenance associated with the site. 

 

The Agreement does not inure to successors or assigns, so in the event the property is sold, the City has the option of requiring the improvements be removed, allowing them to remain, or entering into a new License Agreement with the subsequent property owner abutting the right-of-way.  Staff recommends approval of the License Agreement as attached.

 

Staff recommends Council approve a License Agreement with Robert J. Dahl and Stephanie L. Lentz to utilize a portion of the right-of-way located adjacent to 7 Cedar Street, Port Orange, Harbor Oaks Unit 1 for access and construction of a dock/boat lift and authorize the Mayor and City Manager to execute the necessary documents.

 

F.    TABLED ITEMS

 

Item 15 -        Special Exception for a Game/Recreation Facility in the “CC” Zoning District for Allied Veterans of the World, Inc. Affiliate 49 (Tabled 3/15/11)

 

This item is ready for City Council consideration.  There are no additional staff materials since March 15, 2011.  Both Margaret and Wayne are available to answer your questions.

 

G.   FINANCE(John Shelley)

 

Item 16 -        Resolution No. 11- 20 - Budget Resolution

The City Staff has completed a review of the Fiscal Year 2011 Budget Execution through March 2011. The attached budget resolution provides for the recognition of the budget changes recommended from this review.

 

Staff recommends approval.

 

Item 17 -        Monthly Financial Report

 

Attached is the Monthly Financial Report.

 

  1. PUBLIC WORKS (Warren Pike)

 

Item 18 -        Extend Landscape Maintenance Contract for Three Months

 

On April 19th, Council awarded Section 4 of the Landscape Maintenance bid to Tif-Jen Inc.  Council recommended Sections 1 through 3 of the contract be placed out for re-bid.  Sections 1 through 3 are currently maintained under contracts with Glencoe Lawns (Sections 1 & 2) and Tuff Turf (Section 3).  Staff requests approval to extend the current contracts with Glencoe Lawns and Tuff Turf for an additional three months, May 1, 2011 through July 31, 2011, in order to allow time to re-bid and award new contracts.  Both vendors are willing to extend their agreements under the same pricing, terms and conditions.

 

Staff recommends approval to extend the existing Landscape Maintenance contracts with Tuff Turf and Glencoe Lawns an additional three months, May 1, 2011 through July 31, 2011.

 

City Manager Comments: The reason for the extension is to be able to bid the project in a timely manner.  It is our desire to be able to award the contract before the end of the three months.  The motion should be to extend the contract for a period not to exceed three months.  That would give staff flexibility in document preparation and receiving bids.  We will be using the two envelop process.

 

I.      COUNCIL COMMENTS

 

Item 19 -        Comments/Concerns from Council Members

 

At this time council members may discuss various matters or concerns.

 

Item 20 -        City Council Committee Reports

 

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

 

KWP/ckr