MEMORANDUM

 

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

June 26, 2012

 

Date:               June 20, 2012

 

 

There will be no workshop prior to the meeting on June 26.  The Finance and IT Budget Workshop will be handled within the regular City Council Meeting.

 

A.   OPENING

 

Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call

 

B.   SPECIAL AWARDS, RECOGNITION, PROCLAMATIONS, REPORTS

 

Item 4 -           Local Business Spotlight

 

The Port Orange-South Daytona Chamber of Commerce will present the featured business of the month.

 

Item 5 -           Port Orange/South Daytona Chamber of Commerce Quarterly Report

 

The Port Orange-South Daytona Chamber of Commerce will provide their quarterly report.

 

 

Item 6 -           Report from Kemper Sports Management regarding Cypress Head Golf Course

 

At this time, a representative of KemperSports will make a report to the Council regarding the activities of the golf course.

 

C.   BOARD APPOINTMENTS AND INTERVIEWS

 

Item 7 -           Board Appointments

a.    Library Advisory Board

 

Corey Berman has expressed an interest in serving on the Library Advisory Board. His application is attached for review. The term will expire in June, 2015.

 

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

 

E.   CONSENT AGENDA

 

Item 8 -           Approval of Minutes

a.    June 19, 2012 – Regular City Council Meeting

 

Attached are the City Council meeting minutes from recently held meetings. Should you have questions, please feel free to contact Robin or me.

 

Item 9 -           Project Manager’s Report

 

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

Item 10 -        Project Updates/Parks and Recreation

 

Attached is the Parks & Recreation facilities update.  If you have questions, please contact Susan Lovallo or me.

Item 11 -        Foreclosure – AJ’s Nova One Tattoo

 

Owner Andrew E. Johnson was found in repeat violation on July 6, 2011, for high weeds and grass, outside storage, garbage trash and debris scattered, broken, missing, and covered windows, and human habitation in a shed without any plumbing facilities.  The Code Enforcement Board ordered that all violations be corrected by June 30, 2011, or a fine of $1,000 per day would be assessed.  The property was not in compliance by the date given by the Code Enforcement Board.  As part of the Code Enforcement Board’s order the fine was retroactive to June 30, 2011.  As of May 2, 2012, the fine has been accruing for three hundred and eight (308) days for a total of $308,000 which continues to accrue until compliance is achieved.  On May 2, 2012, the Code Enforcement Board voted 6-0 to recommend the City of Port Orange move forward with foreclosure of this property. This property is not homesteaded or occupied.

 

Staff requests for City Council to authorize the City of Port Orange Attorney to file a foreclose action against the property located at 5126 South Ridgewood Avenue.

 

Item 12 -        Recommendation for Release of Murphy Act Road Reservation on Real Property North of Existing Martin Dairy Road, West of I-95

 

The right-of-way easement sought to be released by the landowner, W. R. Armstrong was imposed through the 1937 Murphy Act, a Florida governmental financial intervention (taxpayer bailout) during the worldwide Depression of the 1930’s.  Briefly, Murphy deeds returned state-owned lands to tax-defaulted landowners with a reservation of right-of-way easements for future roadway construction. By virtue of a 1944 Murphy deed reservation, the south 200 feet of Mr. Armstrong’s 1.37-acre parcel is encumbered by the State of Florida for future right-of-way. The subject property is located on the north side of Martin Dairy Road between South Williamson Blvd. and I-95 (north of Pinnacle subdivision).  Existing Martin Dairy Road, also known as Martin Road, abuts the south boundary of Mr. Armstrong’s property.  Future Martin Road, a 100-ft. right-of-way south of Mr. Armstrong’s property conveyed by Deed of Dedication for right-of-way purposes to the City from the owner/developer of Pinnacle, is projected for construction with the Woodhaven project. 

 

Staff recommends approval to the State of Florida for release of the Murphy deed reservation as to Parcel 6329-00-00-0083 currently owned by the applicant, William R. Armstrong, and to authorize the City Manager to make a recommendation on private property owner’s application to the State of Florida for release of a Murphy Road Reservation on land owned by William R. Armstrong north of Martin Dairy Road, west of I-95 and more specifically identified as Parcel # 6329-00-00-0083.

 

City Manager Comments: Our staff has reviewed this item and has determined that we have sufficient right of way for Martin Dairy Road. 

 

Item 13-         Award of Bid No. B12-28 Replacement Lime Slakers at Water Treatment Plant

 

In FY 2011-12, the Garnsey Water Treatment facility (3) lime slakers have been programmed for replacement. The stainless steel slakers are expected to have minimum useful life of 20 years.  The total estimated cost of the equipment and installation is estimated to be approximately $480,000.  Based on the equipment specifications in the bid, two companies have submitted formal bids as follows:

 

Merrick Industries, Inc.                                            $ 297,877

Siemens Industry Inc., Water Technologies       $ 412,000

 

In evaluating the (2) proposals, staff considered several key operational issues in addition to initial acquisition costs. Because the lime slaking process is such a crucial part of the overall water treatment process, producing over 2.1 billion gallons of drinking water annually to an estimated population of 70,000 people, one major concern pertained to the electronic features of the Merrick slakers which were deemed unnecessary and more vulnerable to interrupted operations resulting from potential lightning strikes or electrical surges.  A second factor related to the collective knowledge and experience the maintenance staff possesses in maintaining and refurbishing the Wallace & Tiernan (W&T) slakers, manufactured by Siemens.  Moreover, the existing inventory of replacement parts currently on hand can be used for the new W&T equipment. 

 

Despite the monetary cost variance between the initial bids, the Public Utilities water treatment operations and engineering staff considers the “qualitative aspects” of operational reliability and proven performance of the Siemens Wallace and Tiernan slakers as significant factors.  Staff further concludes the additional up front cost, when factored over a 20 year period (less than $2,000/unit per year), is well worth the investment for ensuring continuous lime slaking operations and uninterrupted service to our customers.   

Upon review of the bid documents and slaker equipment proposals, it has been determined that Siemens Industry Inc. is the most responsive, responsible bidder.  Staff therefore respectfully recommends Council award the purchase of (3) stainless steel lime slakers to Siemens Industry Inc., Water Technologies.

 

Project No. WWP003 (Water Plant Improvements)    Funding Account No.: 403-0200-533-6397

 

Staff recommends award of Bid No. B012-28 Replacement of Lime Slakers to Siemens Industry Inc., Water Technologies Business Unit in an amount of $412,000 and to authorize the Mayor and City Manager to sign and execute all required contract documents.   

 

City Manager Comments: The operating staff has concerns about the low bidder, Merrick’s slakers.  Their major concerns are the dependency of the slakers on electronics that makes them vulnerable to lighting and power surges.  The staff visited Palm Coast who purchased the Merrick slakers.  They noticed rust on the stainless steel before the slakers were even installed.  This concerned the operating staff since the slakers operate in a highly corrosive environment with an expected life of the stainless steel being 20 years..  The operating staff is concerned about the footprint of the slakers and the location of the electrical boxes.  Our current slakers are Wallace and Tierman.  The City does have parts that are only usable for Wallace and Tierman slakers. 

 

I do have a concern.  We have received a letter from Siemens who makes the Wallace and Tierman slakers.  They have notified us that they are stopping production of Wallace and Tierman slakers.  They have stated that there will be after-market parts for these slakers.  Siemens will warrant the slakers in accordance to the bid specifications. 

 

Item 14 -        Final (Deductive) Change Order #1 with the City of Daytona Beach Shores for the South Atlantic Avenue Water Main Improvement related to the Joint Project Agreement with the City of Port Orange

 

The City of Daytona Beach Shores and our City entered into a Joint Project Agreement in August 2010 for road, water main and other infrastructure improvements along S. Atlantic Ave between Dunlawton Ave and Emilia Ave.  Our City water improvements have now been successfully completed.  All JPA work items have been completed and all the necessary project close-out documents have been received. 

 

Final quantities were measured and agreed to between the contractor, the City of Daytona Beach Shores and our engineering consultants.  Final payment has been computed in accordance with the contractual unit prices and actual work performed.  During construction, City staff and our consultant engineering firm, Quentin L. Hampton Associates, Inc., utilized some unique and resourceful means and methods to save on construction materials.  Overall our City saved $106,725.25, hence, the final contract amount is $394,159.75.  We request your approval of the Final Deductive Change Order #1 in the amount of $106,725.25

 

Staff recommends approval of the Final (Deductive) Change Order #1 with the City of Daytona Beach Shores for the South Atlantic Avenue Water Main Improvement per our existing Joint Project Agreement for a deductive amount of $106,725.25 and authorizing the Mayor and City Manager to execute the associated contract documents as necessary.

 

F.    FINANCE (John Shelley)

 

15-A. Resolution No. 12-29 – Amending Resolution No. 93-16 as it relates to Debt Service Reserves (DSR)

 

Item 15 -        Resolution No. 12-30 – Authorizing issuance of the 2012 Water/Sewer Refunding Revenue Bond to PNC Bank and using the related debt proceeds to refund the 2003 Water/Sewer Refunding Revenue Bonds

 

The City’s Bond Attorney is working with the City’s Financial Advisor to complete the negotiations of the final terms and conditions of the refunding of the water and sewer bonds with PNC Bank.  As soon as the Resolution is finalized, we will be forwarding a copy to the City.  The final amortization table may not be ready until Tuesday.  The city has a rate lock in place with PNC through Tuesday night.  The rate lock is extremely good.   What you have in the rate lock is tax considerations that may cause the bond interest rate to be adjusted upward should there be an adjustment in the federal tax rates.  However, the rate adjustment that would occur is still below the interest rate that would occur in a bond issue.

 

The Resolution and exhibits provided with the agenda packet are not finalized and are subject to changes upon finalization of the full terms.

 

 

Item 16 -        Monthly Financial Report

 

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

G.   COMMUNITY DEVELOPMENT (Wayne Clark)

 

Item 17 -        Ordinance No. 2012-15 – LDC Amendments/Social Services, Chapters 2, 17, and 18, Case no. 12-25000003 (advertised June 19, 2012)

 

Planning Commission recommended approval (7-0).

 

Zoning and development regulations need to be updated occasionally to effectively address current conditions. Recently, the cities of Daytona Beach and Holly Hill have developed more specific definitions for various social service uses and new requirements to prevent clustering in a concentrated area and to limit potential negative impacts to surrounding residences and businesses.

 

The proposed amendments to the LDC are intended to clearly define the specific social service uses and include these uses as special exception uses with special requirements in the “GPU” (Government Public Use) zoning district. A definition for charitable organization offices is also being added. This use is currently listed as a permitted use in the GPU zoning district, but is not defined.

 

The proposed amendments are intended to prevent the accumulation of these uses in a concentrated area and limit potential negative impacts to surrounding residences and businesses. The intent of the proposed regulations is to ensure that the public health, safety and general welfare are protected. The proposed amendment does not prohibit these uses as accessory to a house of worship.

 

Staff recommends adoption of Ordinance No. 2012-15 upon completion by the City Attorney, amending Chapters 2, 17 and 18 of the Land Development Code (LDC), as recommended by the Planning Commission.

 

This item was advertised in the News-Journal; however, the Ordinance is currently under legal review and will not be finalized for this meeting.

 

Item 18 -        Resolution No. 12-28 - 12-35000002/Proposed Easement Vacations – Altamira Shopping Village Subdivision

 

The Community Development Department has received an easement vacation application for three existing easements at the Altamira Shopping Village Subdivision. Mark Watts, Esq., Cobb Cole, agent on behalf of the property owner Four Lanes LLC, has made this application in connection with the proposed expansion of the Altamira Shopping Village development. Retention and outfall facilities covered by the easements are being relocated. Development plans for the expansion of the Altamira Shopping Village are prepared for development order issuance.

The easement vacation application and legal description have been reviewed for completeness and accuracy. The area has been inspected with respect to City codes and possible effects to adjacent properties resulting in no outstanding concerns with the expansion of the Altamira Shopping Village development. Release letters have been obtained from all franchise utility companies. City departments have reviewed this request and have requested the preparation and recording of separate individual replacement easements for existing drainage structures covered by the easements and for currently planned drainage and utility improvements proposed for the subject areas in the future. The easement areas may be vacated, as described in the attached Exhibit “A”, Exhibit “B”, Exhibit “C” to the extent that they will be replaced.

Staff recommends approval of Resolution #12-28, vacating three existing easements at the Altamira Shopping Village Subdivision development per the attached legal descriptions (Exhibit “A”, Exhibit “B”, Exhibit “C”).

 

H.   PUBLIC UTILITIES (Shannon Lewis)

 

Item 19 -        First Reading – Ordinance No. 2012-17 – Industrial Pretreatment Ordinance Revisions requested by Florida Department of Environmental Protection

 

The Florida Department of Environmental Protection (FDEP) requires a headworks analysis and accompanying Sewer Use Ordinance modifications within 180 days of a new Wastewater Plant permit. FDEP has allowed the June 2009 permit requirements to be extended to the current date. FDEP has preliminarily approved the draft ordinance.

 

Staff recommends approval of Ordinance No. 2012-17, modifying sections 74-100 through section 74-120 of the Code of Ordinances.

 

I.      ADMINISTRATION (Ken Parker)

 

Item 20 -        County Fire Services

 

On June 19, I briefed City Council on my discussions with Volusia County concerning the renewal of the City’s contract to provide fire service in the unincorporated areas.  The County has indicated a willingness to pay on a per call basis rather than on a protection basis.  The City has provided service in this area since 1984 and it has always been based on a protection basis, not on a call reimbursement basis.  The County collects property taxes to provide fire protection.  The City has been paid based on the revenue generated from the fire millage rate, regardless of the number of calls made to the protected area.  I have indicated that the City would be willing to continue discussion with the County related to providing fire service.  I have discussed this with Mary Connors on two occasions and Jerry Monahan and Ken Burgman have met once with the County Fire Services Director.  Although I have indicated to them that I think it is reasonable for the City to receive the millage collected for fire service in the areas protected by the City, it may be beneficial for the City to request the County submit a contract document in order to see exactly what they would propose. 

 

However, I would like the authority to do the following:

 

1.    Send a letter to the residents in the impacted area letting them know that the City’s contract has been cancelled effective October 1.  This letter would provide information to the residents about where their nearest County fire station is located.

2.    Provide the residents with the opportunity to voluntarily annex into the City of Port Orange.  If they agree to annex into the City, the City would waive the annexation fee. 

3.    Continue to negotiate with Volusia County after they submit a contract document to the City for our consideration.

 

Should you have questions, please feel free to contact me.

 

J.    COUNCIL COMMENTS

 

Item 21 –       Comments/Concerns from Council Members

 

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

 

Item 22 -        City Council Committee Reports

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

K.   BUDGET WORKSHOP

 

Item 23 -        Information Technology

 

At end of the meeting, Director Marino will be presenting an initial look at the Information Technology budget for the upcoming fiscal year. 

 

Item 24 -        Finance

 

At end of the meeting, Director Shelley will be presenting an initial look at the Finance budget for the upcoming fiscal year. 

 

KWP/rlf/ckr