MEMORANDUM

 

To:                   Mayor Allen Green

                        Vice Mayor Donald Burnette

                        Council Member Bob Ford

                        Council Member Drew Bastian

                        Council Member Dennis Kennedy

 

From:              Gregory A. Kisela, City Manager

 

Subject:          Agenda Commentary for Regular City Council Meeting of

                        May 28, 2013

 

Date:               May 22, 2013

 

 

  1. OPENING

 

Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call

 

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

 

C.   CONSENT AGENDA

 

Item 4 -           Approval of Minutes

 

a.    May 21, 2013 – 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 5 -           Project Manager’s Report

 

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

 

Item 6 -           Approval to exceed the $25,000.00 limit for Ten-8 Fire

 

Ten-8 fire equipment is a sole source vendor for sales and repair of our Self Contained Breathing Apparatus; Thermal Imaging Cameras; and Air Monitors. Ten8 has also provided uniforms and other fire equipment after successfully competing in the bid/quote process.

 

The current limit of $25,000.00 per vendor per fiscal year has become an issue for us as we currently need more equipment and repairs to some equipment that can only be done by Ten-Fire Equipment.

 

Item 7 -           Change Order #1 to Existing Contract with Sunstate Meter & Supply, Inc. for purchase of Neptune Water Meters

 

We are currently in the process of changing out many aging small and large water meters within our utility system  that are either malfunctioning or have stopped working.  We also have many commercial developments and new residential homes requesting new water service.  The City currently has a contract in place to purchase meters from Sunstate Meter & Supply, Inc., the sole source distributor of Neptune Meters in Florida.  Neptune meters have been found to be highly reliable with little to no failures to report to date.  Staff is requesting approval to increase the purchasing limit with Sunstate in order to provide city staff with the flexibility to purchase additional meters and parts in a timely manner to meet existing and future utility customer demand. Funds are currently available in the applicable Large Meter CIP Account MMM101 and Meter Replacement Operating Account to purchase these additional meters.

 

Account Nos. 403/421-0800-533-6397,  401-0500-536-5531 &  401-0800-536-6731  

 

Staff recommends approving Change Order #1 to the City’s existing contract with Sunstate Meter & Supply, Inc. for the purchase of $200,000 worth of additional Neptune water meters and parts.

 

Item 8 -           Service and Maintenance Agreement for HACH Equipment

 

The Garnsey Water Plant has nine (9) HACH monitoring devices that are utilized at the treatment plant and the remote pump stations.  Several of these devices are utilized to fine tune process control by efficiently regulating chemical dosages thereby improving water quality and reducing annual chemical expenditures. The remaining devices are utilized to continuously monitor process parameters that are a requirement for maintaining our 4-Log permit status as mandated by the Florida Department of Environmental Regulations. This service contract provides for quarterly field visits by a HACH technician to calibrate and service the equipment.  The service agreement also provides for unlimited service calls with all parts and labor included to affect any repairs on malfunctioning equipment. The result of this service is the indefinite extension of the useful life of the monitoring equipment and the maintenance of all devices in impeccable condition. HACH is the only company authorized to repair and service its own equipment and will not warrant or guarantee its equipment if unauthorized technicians are utilized.  This contract is for a seventeen (17) month period ending September 30, 2014.  This will allow for annual renewals to coincide with the City’s fiscal year.

 

Funding Account No.: 40102005333113

 

Staff recommends approving the Standard Contract for Services and Contract Addendum No. 1 with the HACH Company in the amount of $ 28,639.98, and authorizing the Mayor and City Clerk to execute both documents on behalf of the City.

 

Item 9 -           Approval to utilize Diversified Asset Recovery and Public Surplus to auction City surplus and/or obsolete materials and equipment and to waive purchasing procedures utilizing Manheim to auction the City’s surplus and/or obsolete fleet vehicles

 

In September 2010 City Council authorized Gideon Auction to sell the City’s surplus equipment. Gideon Auction handles the pick-up of all surplus items and conducts auctions at their site located in Zellwood, Florida. Gideon Auction charges the city 12.5 % for fleet vehicles and 70% for all other surplus items. The City’s revenue return is low.

 

In an effort to increase revenue, the City’s Purchasing Division analyzed six surplus auction firms (see attached analysis) to determine which firm(s) can provide the highest rate of return/service for the sale of surplus items.

 

The City’s auction categories consist of:

1. Fleet Vehicles

2. IT computer equipment

3. Police confiscated and found property

4. All other (assets / scrap / furniture, miscellaneous items)

 

Based on the analysis, presentations and discussions with the auction firm(s) staff determined it is in the best interest of the City to utilize several auction firms. Each firm specializes in auctioning a particular category, providing the City with the highest rate of return.

 

1. Fleet Vehicles: Staff recommends: Manheim

•           Specializes in live on-line fleet vehicle and heavy duty truck auctions

•           Provides the highest rate of return compared to the other auction firms. Charges 5% per vehicle, versus other auction firms charging up to 12.5% per vehicle

•           Offers free pick up of vehicles to their Daytona Beach, Florida auction facility

•           Has live on line auction visibility of over 80,000 U.S. Dealers

•           Provides website reporting, marketing, title processing

•           No contract required

 

 2. IT Computer equipment: Staff recommends: Diversified Asset Recovery.

•           Specializes in IT computer equipment auctions

•           Provides the highest rate of return compared to the other auction firms

•           EPA certified and follows a set of guidelines to provide a secure and environmentally safe solution for recycling computers, monitors, printers and any other IT equipment. Other auction firms do not provide this service.

•           Provides a certificate of data destruction and certificate of recycling. Other auction forms do not provide this service.

•           Offers free pick up of equipment

•           No contract required

 

3. Police seized, found, unclaimed property: Staff recommends: Property Room

•           Specializes in auctioning police department confiscated, found property and high end value items such as confiscated jewelry/electronics.

•           Over 2,700 law enforcement agencies utilize property room

•           Provides the highest rate of return on high end items compared to the other auction firms

•           Has live on line auction visibility

•           Offers free pick up of equipment

•           No contract required

 

4. All other (assets / scrap / furniture): Staff recommends: Public Surplus

•           Specializes in auctioning all other types of city assets such as furniture, scrap materials, industrial equipment, office equipment and parts.

•           Designed specifically for public agencies. The system enables agencies to manage their entire surplus inventory, while at the same time maintaining compliance with State regulations and policies.

•           Provides the highest rate of return for all other city assets, charging 7 to 10% compared to the other auction firms that charge up to 70%.

•           Has live on line auction visibility

•           No contract required

 

There is no contract required for any of the above auction firms.

 

The City of Port Orange has established policies dealing with the disposal of surplus and/or obsolete materials and equipment as is outlined in Part II – Code of Ordinances, Chapter 2 – Administration, Article VI – Finance, Division 2 – Purchase and Sale Procedure, Section 2-262. 

 

Section 2-262, (e) Purchase and Sales Procedures

All sales of personal property (except trade-in personal property) which has become obsolete or unusable or the sale of which is otherwise determined to be in the best interest of the city, when the estimated value exceeds $25,000.00, shall be made to the highest responsible bidder pursuant to the formal bidding procedure of this article. Acceptance or rejection of bids for such sales shall be made by the city council. The city council may, by appropriate resolution, authorize the city manager or other city official to execute any and all title transfers, bills of sale or other documents necessary to convey and transfer such property to the successful bidder. In the absence of such authorization by resolution, the mayor and city clerk may execute such instruments. (Code 1981, § 8-26; Ord. No. 1997-22, § 2, 5-6-97; Ord. No. 2004-15, § 2, 7-20-04).

 

Section 2-262, (f) Purchase and Sales Procedures

All sales of personal property (except trade-in personal property) which has become obsolete or unusable or the sale of which is otherwise determined to be in the best interest of the city, when the estimated value is $25,000.00 or less, may be sold upon the written approval of the city manager. Notice of such sale shall be posted in city hall and, insofar as is practicable and reasonable, written and sealed bids should be solicited. Notwithstanding the foregoing, such property may be sold by negotiated sale, auction or other procedure approved by the city manager. Formal advertising or compliance with the formal bidding procedure shall not be required. The city manager, or such person as he shall designate in writing, is authorized to execute any and all title transfers, bills of sale or other documents necessary to convey and transfer such property to the purchaser thereof. (Code 1981, § 8-26; Ord. No. 1997-22, § 2, 5-6-97; Ord. No. 2004-15, § 2, 7-20-04).

 

Staff recommends approving Diversified Asset Recovery, Property Room and Public Surplus to auction City surplus and/or obsolete materials and equipment.

•           Diversified Asset Recovery: All IT equipment

•           Property Room: All Police (confiscated and found property)

•           Public Surplus: All other City assets/scrap/ furniture, etc.

 

Staff also recommends waiving purchasing procedures utilizing Manheim to auction the City’s surplus and/or obsolete fleet vehicles.

•           Manheim: Fleet vehicles

 

Item 10 -        Annual City Employees’ Health Insurance Renewal

 

The City and Florida Health Care have reached a tentative agreement for the renewal of the Health Insurance Plans for City employees for a July 1, 2013 effective date.  In order to control cost and encourage employees to use Workforce Wellness, this tentative agreement includes slight changes to the Balance and Premium HMO plans.

 

We have secured a 2% increased for all plans combined.  There will be a 3.1% increase to the Balance HMO for which the City pays 100% of the single employee premiums. 

 

Staff recommends approving the renewal of City employees’ current health insurance plan with Florida Health Care

D.   FINANCE (Wayne Saunders)

 

Item 11 -        Finance Report

 

Attached is the Monthly Financial Report. If you have questions, please contact Wayne Saunders or me.

 

E.   PUBLIC SAFETY (Jerry Monahan)

 

Item 12 -        First Reading - Ordinance No. 2013-8 – Vehicles used as residence, domicile, or living quarters

 

This amendment will clarify the intent of Section 42-59 as prohibiting the use of a vehicle as a place of residence, domicile or living quarters within the city while allowing for innocent conduct such as a weary driver pulling off the road to take a nap.

 

Staff recommends approving Ordinance No. 2013-8.

 

F.    CITY ATTORNEY (Margaret Roberts)

 

Item 13 -        First Reading – Ordinance No. 2013-9 – Amending Audit & Budget Advisory Board

 

As requested by City Council please find attached a proposed ordinance amending the Audit and Budget Advisory Board to provide for a seven (7) member board.

Staff recommends approving Ordinance No. 2013-9.

 

Item 14 -        City Attorney’s Comments

 

The City Council asked that the Agenda format include an agenda item that would allow the City Attorney to report and update City Council members.

 

G.   ADMINISTRATION (GREG KISELA)

 

Item 15 -        Resolution No. 13-24 – City Manager Authorizations

 

Staff recommends approving Resolution No. 13-24 providing various authorizations to the City Manager allowing for more efficient and effective day-to-day operations for the city.

 

This resolution has been reviewed and approved as an effective management procedure by James Moore & Co.

 

Item 16 -        Interlocal Agreement for Distribution of Local Option Fuel Tax

 

The existing interlocal agreement for gas tax distribution will expire on August 31, 2013. The City requested that the agreement be renewed for a period not to exceed two years during which time the parties would develop a new and equitable funding formula.

On May 2, 2013, the Volusia County Council voted to continue the current interlocal agreement for another five years with the same terms and conditions.  The County has requested that each municipality execute the attached agreement prior to June 15, 2013.

The agreement will become effective if approved by the County and participating municipalities representing a majority of the population of the incorporated area of the County.  If no agreement is reached, the distribution formula defaults to the statutory formula based on the previous five-year’s eligible transportation expenditures.

Staff requests direction on the attached Five-Year Renewal to the Interlocal Agreement for Distribution of Local Option Fuel Tax September 1, 2013 – August 31, 2018.

Item 17 -        City Manager’s Comments

 

This has been placed on the agenda so that the City Manager can bring items to the City Council attention and to provide information about ongoing city activities.

 

H.   COUNCIL COMMENTS

 

Item 18 -        Audit & Budget Advisory Board nominations/appointments by Council

 

Council has approved the creation of an Audit & Budget Advisory Board and now needs to nominate and appoint additional members to the Board.

 

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.

 

GAK/rlf