To:                   Mayor Allen Green

                        Vice Mayor Bob Pohlmann

                        Council Member Bob Ford

                        Council Member Donald Burnette

                        Council Member Dennis Kennedy


From:              Kenneth W. Parker, City Manager


Subject:          Agenda Commentary for Regular City Council Meeting of

                        March 27, 2012


Date:               March 21, 2012



The Workshop meeting at 5 p.m. is a Town Center Community Redevelopment Agency Evaluation Committee Meeting.  The Town Center CRA decided that it wanted to act as the Evaluation Committee for the proposals for land trade, swap, or sale.  The CRA received one proposal.  In the RFP, this meeting is stated as Interview and Ranking.  Therefore, the individuals involved in submitting the one proposal will be asked to be in attendance on Tuesday night to make a presentation and to answer your questions. 


Staff is still evaluating the economics of the proposal.  Some of the items are very difficult to place an economic value.  Many of the items in the proposal relate to conversations that where presented to the CRA.  Some of the items come from a previous development MOU.  We are attempting to complete the economic analysis by this weekend so that the CRA will have the benefit of the analysis prior to Tuesday’s meeting.  I would imagine that it will be a preliminary analysis and will require considerably more analysis before the CRA considers whether to enter into negotiations with the proposer.


A.           OPENING


Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call




Item 4 -           Local Business Spotlight


The Port Orange/South Daytona Chamber of Commerce will present the featured business of the month, Fashion Safari.


City Manager Comments: Last month, we talked with the Chamber about their business spotlight.  Beginning with Fashion Safari, the City’s television channel will do a feature on this business.  Each month, we will feature the each business that is spotlighted. Kent is in charge of working with Debbie Connors and the business owner to get the spotlight on the air.


Item 5 -           Report from KemperSports Management regarding Cypress Head Golf Course


A representative of KemperSports will make a report to the Council regarding The Golf Club at Cypress Head at this time.




Item 6 -           Spruce Creek High School Academy of Finance Advisory Board


The Spruce Creek High School Academy of Finance Advisory Board has requested to appear before the City Council.


Powerpoint presentation


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




Item 7 -           Project Managers’ Report


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


Item 8 -           Proposed Write off of Bad Debts


During the month, City Staff has evaluated the potential of collecting certain accounts receivable. During this process, we have concluded that $131,657.55 utility account receivable and $11,506.91 miscellaneous receivables, totaling $143,164.46 are proposed for write off. Utility receivables originated from 2005-2008 and miscellaneous receivables from 2006-2008. These receivables were not able to be secured by property, business, or other assets. We will continue to attempt collection of these accounts. Please see the attached memorandum for more detail. Specifics of these accounts are maintained by the City Clerk.


Staff recommends authorization to write off utility accounts receivable and miscellaneous accounts receivable balances that have been deemed uncollectable.


City Manager Comments: The staff is proposing to write off uncollectible debts.  Although from an accounting standpoint, the City is writing them off, it does not mean that the City does not continue to attempt to collect the debts owed.  These debts have been through our collection agency and these are the ones that they have returned to the City as uncollectible.  These are users where there is no property to place a utility lien on. I would be amiss if I did not bring to the City Council’s attention that the water and sewer fund collected about $75,000,000 during this time period.  The City was able to collect 99.9983% of the revenue due from users. Although our goal is 100%, this is still a very good collection ratio. 


Item 9 -           Request for Approval to Submit Projects for the Volusia Transportation Planning Organization’s 2012 Transportation Improvement Program Priority List


Staff requests City Council approval and authorization to submit applications for projects to be placed on the TPO’s 2012 Project Priority List. This does not obligate the City to fund these projects only to include them on the TPO priority list. The proposed applications to be submitted this year include:

•           Willow Run Blvd. Sidewalk (Southside) (Bicycle/Pedestrian Facility Project),

•           Energy Efficient LED Traffic Signals (Traffic Operations/ITS/Safety Project),

•           Herbert Street Sidewalk East (Jackson St.–FEC Railway)(Bicycle/Pedestrian Facility Project), and

•           Herbert Street West Bound Turn Lane at Clyde Morris Blvd. (Traffic Operations/ITS/Safety Project).


If the projects are selected and the City chooses to fund them, the projects will require a 10% local government match, estimated at $117,295 total for all four projects.  With these projects, the City pays for the project up front and is then reimbursed.

Staff recommends approval and authorization for City staff to submit applications for the 2012 Priority Project ranking for transportation improvements to the Volusia Transportation Planning Organization (TPO).


Item 10 -        Approval to Utilize State and Sheriff’s Association Contracts to Purchase Fleet Vehicles and Equipment


Staff has identified the older vehicles and equipment due to be replaced.  The Fleet Purchase Summary sheet attached provides a breakdown of each vehicle and/or piece of equipment by user department, age of item, cost to maintain, mileage of each and budget information.  Vehicle purchases that have been deferred are also shown.  Staff requests approval to utilize State (#760-000-10-01) and Sheriff’s Association (11-19-0907) contracts in order to purchase the vehicles and equipment at the lowest price possible.  Total FY 2012 budget for Fleet purchases is $2,679,500.00.  Total cost to purchase items requested is $1,388,254.00.  The remaining budgeted funds will be included on the year end carryover request to purchase deferred items next fiscal year. Funds are available in Account #50510005196400.


Staff recommends approval to utilize State and Sheriff’s Association contracts to purchase the fleet vehicles and equipment as shown on purchase summary attached for a total cost not to exceed $1,388,254.00.


City Manager Comments: All of the City vehicles are on a replacement schedule.  However, prior to purchasing the vehicles, a detail examination and review concerning whether the vehicle should be replaced is performed.   The criteria used to determine whether to replace a piece of equipment are: (1) overall maintenance cost; (2) fuel efficiency of the vehicle; (3) mileage; (4) age.  The vehicle replacement program also involves looking at the entire fleet and moving existing vehicles and equipment around in the City fleet with newer vehicle and equipment being allocated to areas to heavier use areas and older vehicles and equipment being allocated to areas of more limited use. 


The overall goal of the fund is to have funds available to replace equipment when it is needed.  The review this year indicated that the about one-half of the fleet purchases met the criteria for delay in replacement. 


F.            TABLED ITEMS


Item 11 -        Board Appointments

a.    Police Pension Fund Board Appointment (Tabled from February 28, 2012)


Attached are the applications for the Police Pension Board.  Last year, when I was visiting with the Legislative staff when were actively involved in the Police and Fire Pension Reform effort, I suggested that the criteria for the fifth member of the Pension Board be established.  The criteria that I suggested included individuals with the following types of background:


Budget and Finance, Business Administration, Banking, Insurance, Financial Advisor, Investment Banking, Stock Broker, Actuary, Accounting, Pension Management.  


The individual that the City Council will be appointing is the City’s appointment.  This appointment represents the City and citizens interest.  You may want to consider the above criteria.  The Ordinance does not provide any criteria for appointment only that it must be a citizen of Port Orange.


G.           FINANCE (John Shelley)


Item 12 -        Resolution No. 12-16 – Budget Appropriations


The City Staff has completed review of the Solid Waste Fund for the Fiscal Year 2012. The attached budget resolution provides for the recognition of the budget changes recommended from this review.


Staff recommends approval.


Item 13 – Monthly Financial Report


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


H.           COMMUNITY DEVELOPMENT (Wayne Clark)


Item 14 -  First Reading – Ordinance No. 2012-7 – Rezoning/City of Port Orange Dunlawton Ave./Herbert St. block, east of Florida East Coast Railroad. Case no. 12-60000001


At the February 16, 2012 meeting, the Planning Commission recommended approval, 5-0 (Commissioners Barker and Green excused), to rezone ±1.35 acres, located between Dunlawton Avenue and Herbert Street, east of the FEC railroad, and west of Orange Avenue, from “CI” (Commercial Industrial) and “NP” (Neighborhood Preservation) to “ORT” (Office/Residential Transition). 


The Future Land Use (FLU) designation of the subject area was amended by the City to Office/Residential Transition as part of the 11-1 Comprehensive Plan Amendment package, effective in November 2011. This FLU amendment was part of an on-going effort to apply the most effective land use to properties that better match existing uses and increase the potential for new investment in the amendment areas. The subject area is developed with offices and residential homes. There are also two vacant lots located between the offices and a bank. The previous industrial FLU and zoning categories could limit options in the area that has transitioned from railroad, industrial type uses. The proposed zoning of “ORT” (Office/Residential Transition) would be consistent with the new FLU designation.


Staff recommends adoption of Ordinance No. 2012-7, rezoning approximately ±1.35 acres, located between Dunlawton Avenue and Herbert Street, east of the FEC railroad, and west of Orange Avenue, from “CI” (Commercial Industrial) and “NP” (Neighborhood Preservation) to “ORT” (Office/Residential Transition), as recommended by the Planning Commission.


I.              PUBLIC WORKS (Roger Smith)


Item 15 -        Validation of PO#066346 issued to Stellar Pavement Marking, Inc.


In March of 2010, City Council approved the use of a competitively bid Volusia County continuing contract for pavement striping with the firm of Southeast Pavement Marking, with an expiration of June 2012.  Southeast subsequently changed their name to Stellar Pavement Markings.  Unfortunately, City Staff operated under a wrong premise that the continuing contract did not require council authorization for subsequent annual purchases associated with the pavement striping services.  Thus, a purchase order for $50,000 was issued on October 20, 2011.  A change order in the amount of $50,000 was approved in January 2012.  Subsequently, a 2nd change order in the amount of $18,843 was approved in March 2012.  The total contract amount for FY12 is $118,843. The total amount paid-to-date for FY12 is $42,842.86.  The current available balance is $76,000.14.  Stellar has fully completed the striping associated with the City’s recent paving projects.  The total amount due is $33,343.24.  They have requested partial release in the amount of $20,000. 


Staff recommends Council validate the issuance of Purchase Order #066346 to the firm of Stella Pavement Marking Incorporated in the cumulative amount of $118,843 for installation of pavement marking since October 1, 2011. 


City Manager Comments:  You received an email from me last Friday.  We began by thinking this was a simple name change that failed to go before City Council.  What we found is something very different.  The City Council awarded a pavement marking contract to Southeast Pavement Marking in March 2010.  The contract was for a period of three years.  The contract was to expire in June 2012.  The award was made utilizing a County contract.  The County stopped using Southeast Pavement Marking.  The County purchased its own equipment and began marking its own roads with its equipment and personnel. 


Under the original City Council form, Public Works states that the purchase order will be issued for $70,000.  The funds were paid from the gasoline tax fund.  The work was completed by Southeast.  Because there was an amount that was specified in the original approval, the contract with Southeast needed to be revalidated in the fall of 2010.  In submitting the contracts that they desired to be validated, the contract for Southeast was not included.  A Purchase Order was issued for pavement markings. On the face of the Purchase Order issued states that it was approved by City Council.  Southeast performed the work under the purchase order satisfactory and was paid for their work. 


This past fall, when Public Works submitted their contracts for validation and approval by City Council, the pavement marking contract was not included.  A purchase order was issued.  On the face of the purchase order is a notation that the work was approved by City Council. 


What complicates this situation is that Southeast is no longer in business.  There was no legal entity to assign from and to.  There was no approval of assignment of the contract by the County or the City of Port Orange from Southeast to Stellar.  Although the purchase order was modified to reflect the new corporate name, there is no record that the item went before the City Council. When the new P.O. was issued, it referenced the County contract number which included the pricing schedule.   


On October 20, 2011, a purchase order was issued indicating that the City Council had approved the contract for Stellar.  The amount of the contract for Stellar was $50,000.  They completed the work as assigned.  In fact, Stellar had dollars left over on that purchase order after completing the work.  The purchase order indicates that the contract is issued pursuant to County contract which included the pricing schedule as approved in March 2010.  Stellar billed in accordance with the County pricing schedule.


On January 19, 2012, an increase in the purchase order in the amount of $50,000 is issued by the City of Port Orange.  The Purchase Order references the County Contract number, not the Palm Coast contract.  It clearly states that it was approved by the City Council. 


On March 6, 2012, Stellar submits a partial payment invoice to the City of Port Orange in the amount of $20,000 for work completed in Oakland Park, Spruce Creek Estates, and Spruce Creek Road.  The invoice from Stellar clearly states that it is pricing in accordance with the City of Palm Coast.  Mike Silvey marks out the Palm Coast contract notation and inserts in the Port Orange requisition number.  Stellar states that nobody told him that the City did not approve the pricing schedule under the Palm Coast contract.  On March 13, 2012, a detailed billing is submitted to the City of Port Orange using the Palm Coast pricing schedule, not the schedule for Palm Coast. 


On Friday, March 16, 2012, I was made aware of the problem by Finance.  You received the initial memorandum from me related to what we thought would be something simple.  At that time, we thought we had a simple validation of a Purchase Order and a name change. 


It has been determined that the Council will need to validate the Purchase Order for the work done by Stellar between October 1, 2010 and September 30, 2011.  The work was performed in a satisfactory fashion and in accordance with the Volusia County contract.  The pricing is in accordance with the Volusia County contract. 


Second, the City Council will need to validate the Purchase Order for work done by Stellar between October 1, 2011 and December 31, 2011.  The pricing is in accordance with the Volusia County contract.  The work has been verified as being completed and in accordance with the County contract.


Third, the City received a bill from Stellar in early March 2012.  This is the first time the City receives a statement that reflects a price change.  Mike Silvey marks out the reference to Palm Coast and inserts the County contract number.     


Stellar performed the work satisfactorily.  He believes he is entitled to payment under the fee schedule offered under the Palm Coast contract, not the Volusia contract.  Therefore, I can’t recommend any additional compensation.  John Shelley has rejected the invoice and requested a revised invoice using the Volusia pricing schedule. 


Stellar wanted partial release last week.  I explained to him that I do not have the authority to authorize payment.  It requires the City Council to authorize payment since the pavement marking contract was not handled in accordance to adopted Council procedures.  The City Attorney, Public Works and Finance have all conveyed to him the same thing.




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 report on various committees to which they have been assigned.