JUNE 18, 2013


THE REGULAR CITY COUNCIL MEETING of the City of Port Orange was called to order by Mayor Allen Green at 6:30 p.m.


Pledge of Allegiance


Silent Invocation


Roll Call:                    Present:                     Councilman Bob Ford

                                                                        Councilman Drew Bastian

Councilman Dennis Kennedy

                                                                        Vice Mayor Donald Burnette

                                                                        Mayor Allen Green


                                    Also Present:            Greg Kisela, City Manager

                                                                        Margaret T. Roberts, City Attorney

                                                                        Robin Fenwick, City Clerk




4.    Local Business Spotlight


Debbie Connors, Port Orange/South Daytona Chamber of Commerce, was present, however, did not have a local business to introduce.


5.    Port Orange/South Daytona Chamber of Commerce Quarterly Report


Debbie Connors, Port Orange/South Daytona Chamber of Commerce presented the quarterly report. Council Members thanked Ms. Connors for her hard work.


6.    External Audit Report


Bernadette Britz-Parker, CPA with James Moore & Co., provided the presentation of the external audit report. She spoke about the material weaknesses and significant deficiencies found.


Greg Kisela, City Manager, advised that Management Responses to the Audit were provided. The majority of the issues will be corrected over the next 90 days. The auditor will be back in October to review the changes made. Mr. Kisela advised that the payroll audit will be presented on July 16, 2013 rather than June 25, 2013.


Mayor Green said staffing, organizational chart, and space all need to be addressed. Mr. Kisela agrees. Wayne Saunders, Finance Director, is working on all of those items.


Councilman Ford thanked Ms. Britz-Parker for a well-written, full, and honest report. He believes the responsibility goes all the way up to Council. He finds the audit responses not sufficient enough. He asked Council to direct management to assign the changes to a specific staff member within a few weeks.


Motion was made by Councilman Ford for establishing an implementation plan, to include time, dates, and places and who’s responsible, and review criteria; and he would like to task the Audit and Budget Advisory Board to review the audits/reviews in detail and give feedback to Council, and review the progress.


Mayor Green asked that others comment before a vote on the motion. No second.


Vice Mayor Burnette thanked the auditors. He asked if there was anything in this report that should have been in last year’s report. Ms. Britz-Parker said they looked at every comment from the past three years and addressed them in this report. Vice Mayor Burnette asked what their materiality level was. Ms. Britz-Parker said there is no “cookbook” for what materiality is. It based on the auditors comfort level and judgment when they work through the testing. Vice Mayor Burnette also had the same questions and concerns about the action plan for staff. He wants the rate table simplified. He wants Council to look at malpractice and asked if there is E&O insurance to file against for recovery. He asked when the police pension report will be provided. He found the manual timecards obsolete. He’d like to see the culture of the City changed so that employees will report bad news. He asked Mr. Kisela to make a recommendation regarding internal audits for each department on a three year basis.


Councilman Bastian agrees with Councilman Ford and Vice Mayor Burnette’s comments. He suggested changes to the Police Pension actuary with the other pension boards. Ms. Britz-Parker suggested the Council hire an external company to provide advice relating to the pension plans and boards rather than relying on the pension board’s actuary who works for the board. Councilman Bastian asked if the asset-liability ratio is healthy. Ms. Britz-Parker said it is healthy other than the fact that the pension unfunded liability will be recorded beginning in 2015. She also explained the OPEB liability relating to insurance of former employees.


Councilman Kennedy agrees with everything already said. He wants to see the correction made quickly. He would like to see the spreadsheet that Mayor Green previously requested relating to the audit comments from previous years and what has been implemented and changed and what hasn’t. He wants to see measurable goals. He thanked the auditors.


Mayor Green spoke regarding job duties and changes to the job duties for employees.


Corey Berman, citizen, wants employees held accountable for the changes being made timely. He wants every gallon of water charged the same to every customer no matter what the meter size is.


Mayor Green advised that the rate table must be addressed correctly to be revenue neutral.


Ted Noftall, citizen, asked who prepared the financial statements this year. Mr. Saunders advised that it is a combined effort. Finance provides information and the auditors prepare the statements. Ms. Britz-Parker advised that she prepared the majority of the financial statements this year. She explained that that is not unusual. The statements are the responsibility and representation of management. Mr. Kisela advised that has been his experience in other positions. Mr. Noftall believes the City needs to prepare the statements rather than the auditors preparing them and then auditing their own work. He asked who is doing the design, implementation, and monitoring of the City’s internal controls. Mr. Kisela said management. A detailed worksheet will be provided to Council as requested. Mr. Noftall asked if the excessive administrative leave would have been found by the auditors had it not been reported to them. Ms. Britz-Parker said she doesn’t know but feels it may have been hard to discover. Mr. Kisela the payroll system is being reviewed and worked through. Mr. Noftall asked if adjustments were made for the over and under billings. Mr. Kisela said yes, adjustments have been made and are included in the financial statements. Mr. Noftall asked Mayor Green to request the materiality levels from the current auditors. Ms. Britz-Parker advised that materiality was determined both quantitatively and qualitatively in accordance with Generally Accepted Auditing Standards. It is a moving target. It is different for different funds.


Mark Schaefer, citizen, asked if there is more than a trial balance to help prepare the new budget. Mr. Kisela advised that the CAFR is the year-end report and each month Finance provides an update. Mr. Schaefer asked if the City is in danger of losing the pensions. Mr. Kisela said that happens in private pensions that are not insured. He doesn’t believe it pertains to the City’s plans.


Motion was made by Councilman Ford to direct Staff to prepare an action plan to include an implementation plan of who is responsible and time table details, and provide benchmarks (measuring tools) and to involve the Audit & Budget Advisory Board in the development of implementation plans, and Seconded by Vice Mayor Burnette. Motion carried unanimously by roll call vote.


Motion to accept the audit report was made by Vice Mayor Burnette, and Seconded by Councilman Kennedy. Motion carried unanimously by roll call vote.


Mayor Green thanked the auditors.




7.    Citizen Advisory Committee for TPO

Bobby Ball provided the report to Council from the CAC for the TPO.


CITIZEN PARTICIPATION (Non-Agenda – 15 minutes)


Mr. Noftall asked when the payroll audit will be complete. Mr. Kisela advised July 16, 2013. Mr. Noftall asked when the reclaimed water report will be finalized. Mr. Kisela said the target date is June 25, 2013. Mr. Noftall asked for the status of the police pension auditor. Mr. Kisela advised that he has been told the auditor has started and that it would take six (6) weeks. Staff asked for it sooner.


Newton White, citizen, thanked Council regarding the audit goals and deadlines. He is disturbed that there is still no plan for Riverwalk.


Corey Berman, citizen, asked about the median in front of his office. He asked for the church at Lafeyette and Herbert to be held responsible for their shell. He believes the City rec program needs to have a program for special needs children and adults.




8.    Approval of Minutes

a.    June 4, 2013 – Regular City Council Meeting

9.    Staff Reports - Building Activity Report and Monthly Development Activity Report for May, 2013

10. National Night Out

11. Annual Pollution and Remediation Legal Liability Insurance Renewal

12. Contract for Joint Use with Volusia County School Board


Motion was made by Vice Mayor Burnette to approve Consent Agenda Items 8-12, and Seconded by Councilman Kennedy. Motion carried unanimously by voice vote.




13. Resolution No. 13-29 – 13-1 Comprehensive Plan Amendments/CC Woodhaven LLC Case no. 13-20000001


Mayor Green read Resolution No. 13-29.






Motion to adopt Resolution No. 13-29 was made by Vice Mayor Burnette and Seconded by Councilman Kennedy.


Penny Cruz, Principal Planner, provided details of the Comp Plan Amendments.


Councilman Kennedy doesn’t see a problem with the changes.


Vice Mayor Burnette asked what the motive was for the change. Ms. Cruz explained of the change with the alignment of Williamson Blvd. The applicant wants flexibility on placement of their units. Vice Mayor Burnette is not entirely comfortable with it but since the density isn’t changing, he supports it.


Councilman Ford believes it is a major change. He’s not against the changes. Ms. Cruz explained the 1997 plans showed apartments and townhomes. Tony Robbins, Prosser Hallock, Inc. advised Council of the plans of the project and this item simply allows him to move forward with the approval process through the other agencies that need to review the project.


Councilman Ford is concerned with more development west of the city center. He believes Nova Road is going to be abandoned like Ridgewood has been already. He believes in private property rights. He doesn’t believe he can vote on this without reviewing the plan first.


Mayor Green explained the sprawl of the City.


Tomm Friend, County resident, believes there is an increase in density. He is objecting to the density.


Mr. Schaefer isn’t opposed to the project. He doesn’t understand the road changes.


David Haas, ICI Homes, explained that Williamson Blvd. has changed which is leading to a change to the PUD for this project. The project plans have not and are not changing. Apartments have been in the plans for a long time.


Councilman Ford does not support the land use change because he doesn’t have enough information. He believes the process is backwards. Mayor Green asked for a meeting prior to the meetings to discuss complex issues like this. This isn’t a new project. Mr. Kisela explained the process of transmitting to the other agency


Motion carried 3-2 by roll call vote with Councilman Ford and Councilman Bastian voted no.


Mr. Haas offered to meet with any and all of the Council Members if they want.


14. Oakbrook/Willow Run Bridge Discussion


Wayne Clark, Community Development Director, explained the reason for the bridge in Oakbrook and Willow Run subdivisions, as well as the analysis of Staff regarding public safety (traffic accidents, crime, traffic speed, and emergency access), sidewalks, school traffic, cut-through, Yorktowne Blvd. extension, and traffic volumes. Staff does not recommend closing the bridge. Staff recommends maintaining the bridge connection consistent with past City policy.


Vice Mayor Burnette understands the concerns of some of the residents. He supports leaving the bridge open for now. He suggested lowering the speed limit on the bridge. He suggested possibly revisiting the issue in several months.


Councilman Bastian has had an equal number of residents contact him on both sides. He supports keeping it open.


Councilman Kennedy supports keeping the bridge open. He heard from three citizens and they all asked to leave it open.


Councilman Ford believes the bridge is poorly designed. He suggested leaving the bridge open but would like to see more policing there.


Mayor Green was against the bridge in the beginning.


Lavona Bailey asked how the statistics compare to other neighborhoods with 150 homes. Chris Besuden, Traffic Unit Supervisory, Police Department, advised that without doing a study he cannot answer that question. He stated the number of crashes were minimal compared to other neighborhoods in the City. Ms. Bailey asked for a comparison regarding the crimes. Jay Proctor, Patrol Commander, Police Department, advised that the crime level is very low especially that close to the elementary school. Three of the crimes were during the same incident. Ms. Bailey asked how the speeding compared to other neighborhoods with only 150 homes. Officer Besuden explained their traffic study. Ms. Bailey asked that the bridge be closed temporarily until the construction is completed.   


Vice Mayor Burnette suggested again to lower the speed limit on the bridge.


Norman Lay, Holiday Builders, advised that they are currently building homes. He is also the President of Oakbrook HOA. He asked Council to consider asking the Oakbrook residents to work with Community Development Staff to reach a compromise. He would like to work with Staff further on options.


Mr. Noftall doesn’t agree with neighborhoods having connections.


Officer Besuden explained the speed limit can only be 25 for residential and nothing less other than a cautionary sign to reduce speed.


Mr. Kisela said Staff can post caution signs.


Councilman Ford asked the City Attorney to research the speed limit issue with there being a hazard like the bridge.


Mr. Kisela will work with the homeowner’s association for solutions to calm traffic in the area and placement of caution signs.


Councilman Ford asked for extra police be assigned to the area for the next six months.


CITY ATTORNEY (Margaret Roberts)


15. Daytona Beach Shores Utility Service Billing Dispute and Mediation


Ms. Roberts advised this is a request for a mediator in the Daytona Beach Shores Utility Service billing dispute.


Councilman Ford does not agree with $575.00 per hour. He believes it is excessive. Ms. Roberts explained the mediator’s experience and expertise.


Vice Mayor Burnette asked if this was a typical rate. Ms. Roberts said it is a little high but he is highly qualified and both parties have agreed on him.


Mr. Kisela explained it has taken months to agree on a mediator. He advised the mediation needs to happen quickly.


Councilman Bastian understands the need for a good mediator but $575/hour is excessive.


Motion to approve the use of John J. Upchurch, Esquire as the mediator in the dispute with the Daytona Beach Shores regarding the utility service billing dispute was by Vice Mayor Burnette, and Seconded by Councilman Kennedy.


Mr. Noftall asked if there is a budget for this mediation and how many pre-hours. Mayor Green said there is no budget for this item. Ms. Roberts advised it would be less than a day to prepare for the mediation. She advised that the proposed settlement will come back to the City Council for consideration.


Motion carried 4-1 by roll call vote. Councilman Ford voted no.


16. City Attorney’s Report


Ms. Roberts had nothing.




17. Golf Cart Discussion


Mr. Kisela advised that this item was requested by Council. He advised that nothing has changed statutorily since the previous discuss on June 22, 2010.


Mayor Green explained the issues when County and State roads are involved. It was a complex situation in 2010 and nothing has changed.


Councilman Kennedy does not support golf carts in Port Orange. It isn’t doable.


Councilman Bastian believes it is doable as there are other low speed vehicles (scooters) that are at those same speeds.


Vice Mayor Burnette believes a subdivision like Water’s Edge would be a good place to have golf carts allowed.


Councilman Ford believes it would have to be on a neighborhood by neighborhood basis and can’t be city wide.


Matt Jones, Assistant City Attorney, said yes, it can be designated in certain areas.


Mr. Berman said there are golf carts in these neighborhoods already now. 


Mr. Jones explained low speed vehicles have to have safety equipment. They can operate on roadways with less than 35 mph speed limit. They cannot cross over state and county roads though. Mr. Jones said the low speed vehicles are allowed now if they have the safety equipment.


Vice Mayor Burnette would like to hear from the homeowner’s associations before the City moves forward. All agree. 


18. Volusia County letter regarding Votran


Mr. Kisela explained that Vice Mayor Burnette asked that Council discuss the County’s letter regarding funding for Votran. 


Vice Mayor Burnette believes City residents paying City taxes for the Votran, they are paying twice where County residents will only pay once. The County needs to handle the service and funding and not tax the City.


Mayor Green is going to the VCOG meeting on Monday so he can attend the County meeting on this topic. Vice Mayor Burnette can attend as well for a short time. Councilman Ford will attend and doesn’t support the City paying for it. 


Councilman Bastian asked if it was a City responsibility to provide public transportation. Mayor Green said no. Councilman Bastian asked if the County ever provided lighting at the Votran stop on Swallowtail. Ms. Roberts said they did not agree to provide the lighting so the agreement has not been signed.  


Councilman Kennedy doesn’t agree with paying for Votran again either.    


19. City Manager’s Report


Mr. Kisela reminded Council of the Spruce Creek Festival on June 22, 2013 from 10 a.m. – 1 p.m.




20. Second Reading – Ordinance No. 2013-9 – Amending the Audit & Budget Advisory Board


Mayor Green read Ordinance No. 2013-9.






Motion to adopt Ordinance No. 2013-9 was made by Vice Mayor Burnette, and Seconded by Councilman Kennedy. Motion carried unanimously by roll call vote.


21. Comments/Concerns from Council Members


Vice Mayor Burnette said there is a code on the books that yard waste is only allowed at the curb for 24 hours or a code violation can occur. Councilman Ford disagrees. He has neighbors that leave trash out for weeks.


Mayor Green wants more information to citizens regarding rain storms.


Councilman Ford agrees with moving forward regarding the rate structures. He wants Council to give direction regarding simplification. Mr. Kisela is concerned that the rate changes are revenue neutral. It’s more complicated than it sounds.


Councilman Bastian asked if Ken Hooper can provide assistance on the rate study. Mr. Kisela doesn’t believe he has the rate expertise.


Mr. Noftall suggested Staff begin with providing a spreadsheet with the rate classifications.   


ADJOURNMENT:  10:18 p.m.



                                                                                    Mayor Allen Green





Robin Fenwick, City Clerk