To: Mayor Allen Green
Vice Mayor Mary Martin
Councilman Dennis Kennedy
Councilman Robert Pohlmann
Councilman George Steindoerfer
From: Kenneth W. Parker, City Manager
Subject: Agenda Commentary for Regular City Council Meeting of March 4, 2008
Date: February 25, 2008
On Tuesday night, we will start with a workshop on Impact Fees. As you are aware, we have updated our impact fee studies. Each of you has received a copy of the study. The consultant will be present to discuss the study with the City Council. There are a number of policy issues that must be asked:
1. Does the City Council desire to impose an impact fee for Police Services?
2. In reviewing each of the proposed impact fees, what are the capital components to be included in each of the fees?
3. In the Police and Fire Fee proposals, the two new fire stations and the new police station were approved by the voters as a General Obligation Bond. Does the impact fee cover the cost of expanding beyond the current program rather than using a portion of the impact fee revenue to reduce the General Obligation tax rate? As we add more value to the tax roll, the tax rate is adjusted downward; therefore, new development is paying its proportionate share through value group since this is a dedicated voter approved revenue source designed to retire the debt. By concentrating the fee to future expansions, the fee would be much smaller initially but the City would have to borrow less money in the future to accomplish the expansion and renovations of facilities.
4. In the Parks and Recreation Impact Fee area, the City Council must determine what discount will be applied to the fee to take into consideration grants that the City may receive to assist in construction of facilities. Since the inception of the Parks and Recreation Impact Fee in Port Orange, the City has paid about 60% to 65% of the cost of the improvements relying on 35% to 40% from grants to pay for the remainder. It would seem reasonable for the City Council to assume that we will continue that pattern during this update period. I suggest a mix of 65% impact fee/35% grants and other sources. This along with any modifications in the capital program would produce the final fee.
5. The one that is increasing the most is the Transportation Impact Fee. This is a direct result of the increase in the cost of constructing a mile of roadway. Since our original fee was developed and implemented, the cost of the road construction has more than doubled. The City Council can assume that it will receive money from other sources and thereby reduce the amount. The City Council can authorize staff to look at methods of funding the gap between what the impact generates and the cost of improvements. Remember: Port Orange impact fees cannot be spent on County or State roads to make improvements. The Port Orange impact fee can only be spent on City roads to make system improvements. In the future, we will be able to spend impact fees to widen Town West Boulevard. In the future, we will be able to make intersection improvements on Willow Run as it intersects with South Williamson Boulevard. In the future, we will be able to widen Coraci Boulevard as it heads north into the Town West Center from Town West Boulevard. In the future, we will be able to use impact fees to make intersection improvements on Madeline Avenue at Clyde Morris, Nova Road, and Williamson. We will be able to use impact fees to make intersection improvements at Clyde Morris and Willow Run to make that intersection operate more efficiently. We will be able to use impact fees to extend Coraci Boulevard and connect into Forest Lake Preserve and connect it into the Planned Community that is being developed. Gasoline tax is the primary transportation funding source today. Gasoline tax revenue is not increasing. In fact, there are some indications that it is flat or declining. As we have discussed in the past, the City is just keeping up with what maintenance is required. In fact, we have extended the paving program to beyond 23 years. That is when people can expect to see their road repaved. Finally, transportation impact fees cannot be spent on maintenance or on salaries. In fact, impact fees cannot be spent on day to day operating expenses either. We can recover our administrative cost as well as our direct cost related to the various projects from the fees.
Item 1 - Pledge of Allegiance
Item 2 - Silent Invocation
Item 3 - Roll Call
Item 4 - Approval of Minutes
Attached are the minutes of the following meetings:
Special City Council Meeting of January 8, 2008
Regular City Council Meeting of January 8, 2008
Regular City Council Meeting of January 15, 2008
Special City Council Meeting of January 22, 2008
Regular City Council Meeting of January 22, 2008
Regular City Council Meeting of February 5, 2008
Staff recommends approval.
Item 5 - Update on Construction Projects
Attached is the update from Quentin L. Hampton Associates. If you have questions, please contact Mark Hampton or me.
Item 6 - Update on Recreational Facilities
Attached is the update from Parks and Recreation. If you have questions, please contact Susan Lovallo or me.
Item 7 - Road Construction Report
Attached is the update from Public Works. If you have questions, please contact Warren Pike or me.
Item 8 - Second Reading – Ordinance No. 2007-19 – Rezoning and Approving a Master Development Agreement and Conceptual Development Plan – The Altamira Shopping Village Planned Commercial Development (PCD) (Tabled 1/15/08)
Staff recommends that this item remain on the table.
Staff recommends that this item remain on the table.
A question has been raised about the procedure the City of Port Orange followed in acquiring the 225 acres of land back in December. The City has already closed on the property. Although the City Attorney believes we are on firm legal ground, these three Resolutions address and correct any alleged technical deficiencies.
The City has closed on the property, and it is in our possession. The funds have been transferred to MHK of Volusia County in accordance with the contract that was executed by the Mayor and City Manager as authorized by the Port Orange City Council.
As you are aware, our primary source of repayment will be from two sources. The first source is the funds from the mitigation bank. The second source is from partnering with Volusia County. They have submitted an interlocal agreement to the City for our review. The City Attorney is reviewing the proposed interlocal agreement the County has prepared. We should have it before the City Council sometime in March.
Item 10 - Resolution No. 07-129 – Resolution Authorizing the Issuance of Land Acquisition Revenue Notes, Series 2007
The City Council received and considered in the Special City Council Meeting of December 13, 2007, Resolution No. 07-129, copy attached. Resolution No. 07-127, copy attached, was received and considered in the City Council Meeting of December 11, 2007. Resolution No. 07-129 amended Resolution No. 07-127 and authorized the issuance, sale, and the terms of the notes for the acquisition of land pursuant to the Agreement for Purchase and Sale of 225 acres of real property between MHK of Volusia County, Inc., and the City of Port Orange. This matter is brought before the City Council for its full consideration of the Resolution authorizing the issuance of the land acquisition Revenue Notes, Series 2007, with all related information and to provide every opportunity for public participation.
Staff recommends that Council reconsider Resolution No. 07-129 and Resolution No. 07-127 as amended. If this motion is approved, then it is requested that Council make a motion to approve and ratify Resolution No. 07-129 and Resolution No. 07-127, as amended, authorizing the issuance of land acquisition Revenue Notes up to $5,750,000 and approval of the sale and the terms of the Note.
Item 11 - Resolution No. 07-128 – Resolution Appropriating Funds for Purchase of 225 Acres
The City Council received and considered Resolution No. 07-128 in the City Council Meeting of December 11, 2007, copy attached. Resolution No. 07-128 appropriated the funds for the Agreement for Purchase and Sale of 225 acres of real property between MHK of Volusia County, Inc., and the City of Port Orange. This matter is brought before the City Council for its full consideration of the Resolution appropriating funds and setting forth revenues and expenditure relating to the purchase of 225 acres also known as Stanaki.
Staff recommends that Council reconsider Resolution No. 07-128. If this motion is approved, staff recommends that Council approve and ratify Resolution No. 07-128, appropriating funds and setting forth revenues and expenditures relating to the purchase of 225 acres.
Item 12 - Resolution No. 08-8 - Agreement for Purchase and Sale of 225 Acres of Real Property between MHK of Volusia County, Inc., and City of Port Orange
The Agreement for Purchase and Sale between MHK of Volusia County, Inc., and the City of Port Orange as received and reviewed by the City Council in the meeting of December 4, 2007, was fully executed on December 7, 2007, providing for the purchase of 225 acres as more particularly shown in the Agreement. The City has received a disclosure affidavit from the Seller, MHK of Volusia County, Inc., copy attached. This disclosure was not available to the City Council on December 4, 2007, and is included for consideration of this resolution. This matter is brought before the City Council for its full consideration of the Agreement with all related information and to provide every opportunity for public participation.
Staff recommends that Council approve the attached resolution approving and ratifying the action of the City Council taken on December 4, 2007, approving the agreement to purchase 225 acres of real property as shown on the agreement attached hereto.
Item 13 - Comments/Concerns from Council Members
At this time, Council Members may discuss various matters of concern.