SPECIAL CITY COUNCIL MEETING MINUTES
COUNCIL CHAMBERS – CITY HALL
1000 CITY CENTER CIRCLE
APRIL 30, 2013
THE SPECIAL CITY COUNCIL MEETING of the City of Port Orange was called to order by Mayor Allen Green at 5:30 p.m.
Pledge of Allegiance
Roll Call: Present: Councilman Bob Ford
Councilman Dennis Kennedy
Vice Mayor Donald Burnette
Mayor Allen Green
Absent: Councilman Drew Bastian
Also Present: Greg Kisela, City Manager
Margaret T. Roberts, City Attorney
Robin Fenwick, City Clerk
4. Two (2) year Extension of the Interlocal Agreement for Distribution of Proceeds of Local Option Fuel Tax
Greg Kisela, City Manager, provided background details regarding the gas tax formula and Interlocal Agreement with the County. Port Orange is currently receiving 5.017%, which generated approximately $1,110,000 per year. The County was requesting 9-10% additional. Most cities were not in favor of that request. The County is recommending the 2003 Interlocal Agreement be extended for five years since the cities cannot agree on a formula. Thursday, May 2, 2013, the County Council will be considering the County’s recommendation to extend the agreement for five years. Staff recommends that Council agree to a two year extension. The city managers looked at several options. The “1/3, 1/3, 1/3” formula results in Port Orange receiving $250,000-300,000 more but results in Deltona losing $150,000. Deltona is the largest city in the County and their support is needed to succeed. To keep Deltona satisfied, they had to agree to 3/4 expenditures, 1/8 of lane miles, and 1/8 on population. Deltona will lose $40,000 with that formula but they are accepting that loss. The cities must reach a consensus for the County to consider.
Port Orange Staff recommends staying away from a default. Calculations have not been done but Staff believes that would be a loss for the City.
Wayne Saunders, Finance Director, explained what a default might mean to Port Orange. He agreed with Mr. Kisela to try to stay away from a default.
Councilman Kennedy asked for further explanation on Ormond Beach receiving more money than Port Orange when they are much smaller in population. He asked if something could be done before the next election cycle so that a two year extension is not necessary. Mr. Kisela said Port Orange is open to that but most other cities would not support it.
Vice Mayor Burnette said none of the numbers make sense. He wants to see a new formula. Port Orange needs the money they are entitled to for road work. He asked how and who would be negotiating a better formula. Mr. Kisela said the city managers and County Manager would negotiate and then the item would come back to the respective Mayor and Councils for ratification.
Mayor Green doesn’t understand why the elections would make a difference with the formula.
Councilman Ford doesn’t agree with the formula as it has our working class citizens donating money to those of more affluent communities. He asked what waiting two years will do. He wants to see the numbers if Port Orange goes into default. He asked if Port Orange has a legal leg to stand on. He’s not happy with two years.
Newton White doesn’t agree with the methodology.
Ted Noftall asked if Port Orange has ever received over $22 million when the second formula kicks in. Mr. Kisela said no, it doesn’t appear the City has tripped that threshold. Mayor Green explained a policy decision needs to be made by this Council. Mr. Kisela advised that he has never had anything definitive to bring to Mayor and City Council showing the numbers and the ramification. Port Orange needs to get partners for a consensus. Mr. Noftall suggested the Mayor and Council work on resolving this rather than the City Manager. Mayor Green believes the formula is wrong. Mr. Noftall asked Council not to rush into anything.
Mr. White asked if there was a formula that was used in 2003 and what would happen if the 2003 formula was used. Mr. Kisela said he doesn’t believe property values have ever been calculated in the formula.
Vice Mayor Burnette asked what difference the property values make on the price of roads.
Mayor Green advised that their options are to reject, accept, or modify to reach an agreement. Mr. Kisela advised that the County Council is planning to consider the 5-year extension on Thursday, May 2, 2013.
Councilman Kennedy doesn’t want to go to five years nor two years. Mr. Kisela explained that the two years will keep the partnerships with other municipalities. Margaret Roberts, City Attorney, advised that the County also needs to agree. Port Orange cannot do it alone.
Attorney Roberts explained the County’s formula if cities default. The questions outstanding are what expenditures will be included. The County wants to attempt to include the beach, airport, and Votran.
Mr. Saunders advised that it is still on the agenda for Thursday with the County.
Vice Mayor Burnette asked if it can be up to two years instead of a flat two years. Mayor Green said Mr. Kisela was able to build consensus with the city manager’s using a flat two years.
Councilman Ford asked if Port Orange is the biggest loser in the County. Mr. Kisela said yes with the current formula. Councilman Ford wants to call the County representatives for their support. It is inequitable and wrong and needs to stop.
Attorney Roberts discussed default numbers that will include Altamira. Mr. Kisela said there are strong expenditures. Volusia County has spent $354 million with deducts of $140 million.
Vice Mayor Burnette suggested authorizing the City Manager to negotiate a one to two year extension rather than a flat two years and certainly would not agree to a five year extension.
Councilman Ford wants to go to default. He doesn’t want to agree to any extension because there are no guarantees in two or five years.
Mr. Noftall said this just extends the inequity of $800,000 for two years. He doesn’t believe action is needed tonight.
Motion to send a letter to County Council supporting an extension to the Interlocal Agreement for fuel tax for a period of six months not to exceed two years was made by Vice Mayor Burnette, and Seconded by Councilman Kennedy. Motion was amended to include a provision to ask the County Council to extend the agreement for one year was made by Vice Mayor Burnette, and Seconded by Councilman Kennedy.
Mr. Noftall asked if Mayor Green has spoken to Mayors of other cities in the County. Mayor Green said he did speak with them. They had the same position.
Motion withdrawn by Vice Mayor Burnette, and Councilman Kennedy withdrew the second.
Motion made by Vice Mayor Burnette to request the County Council to delay their decision to another meeting in May, and Seconded by Councilman Kennedy. Motion carried unanimously by roll call vote.
Motion made by Vice Mayor Burnette to include language that five years is unacceptable, and Seconded by Councilman Kennedy. Motion carried unanimously by roll call vote.
ADJOURNMENT: 6:32 p.m.
Mayor Allen Green
Robin L. Fenwick, City Clerk