Finance Committee

City of Jacksonville 117 W Duval St Jacksonville, FL 32202 Meeting Minutes - Twice Amended Wednesday, January 22, 2020 9:30 AM Council Chambers 1st Floor, City Hall Finance Committee Aaron Bowman, Chair LeAnna Cumber, Vice Chair Randy DeFoor Terrance Freeman Tommy Hazouri Ju'Coby Pittman Ron Salem, Pharm. D. Legislative Assistant: Crystal Shemwell Legislative Assistant: Sharonda Davis Council Auditor: Kyle Billy Chief of Research: Jeff Clements Deputy General Counsel: Peggy Sidman Administration: Rachel Zimmer Asst. Council Auditor: Kim Taylor Finance Committee Meeting Minutes - Twice January 22, 2020 Amended If a person decides to appeal any decision made by the Council with respect to any matter considered at such meeting, such person will need a record of the proceedings, and for such purposes, such person may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Meeting Convened: 9:32 AM Meeting Adjourned: 11:39 Attendance: Council Members Aaron Bowman, LeAnna Cumber, Randy DeFoor, Tommy Hazouri, Ju’Coby Pittman, Ron Salem, Terrance Freeman (arr. 10:18) Also: Council Member Garrett Dennis (2019-693), Sam Newby (arr. 10:18 - discussion of Council budget priorities ); Peggy Sidman, Kealy West, Susan Grandin, Paige Johnston – OGC; Kyle Billy, Kim Taylor, Heather Reber, Phillip Peterson – Council Auditor’s Office; Crystal Shemwell, Juliette Williams – Legislative Services Division; James Richardson – Environmental Protection Board; Joey Greive – Finance Department; Steve Cassada and Melanie Wilkes – Council Staff Services; Stephanie Burch, Rachel Zimmer and Jordan Elsbury – Mayor’s Office; Joey Greive – Finance Department; John Pappas and Eric Fuller – Public Works Department Discussion of Council budget priorities will follow the completion of the agenda. Chairman Bowman informed the committee that the City's independent auditor contract has expired and on January 6th an RFP was issued soliciting for a new auditing firm. A recent state law change means that the Council Auditor can’t recommend the new independent auditor; that must be done by elected officials, so a selection committee will be appointed. Ms. Bowman will be one of the members and he asked for 2 volunteers. Council Member Cumber volunteered. Council Member Salem said has a relative who works for a firm that may submit a proposal, so he won’t volunteer due to a potential conflict of interest. In response to a questions, Council Auditor Billy said that the current audit firm - Carr, Riggs and Ingram - has completed its full 5-year contract so a new RFP is needed. Mr. Bowman selected Council Member Freeman as the third committee member. Item/File No. Title History Page 1 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 1. 2019-0555 ORD Auth the Approp of $1,725,422.19 in funding from the City’s General Fund, General Svc. Dist. Fund Balance, in order to provide funding for the repayment by the City of funds received from the State of FL Dept of Environmental Protection, Pursuant to that certain land & water conservation Fund Agreement No.12-00182 btwn the City & the State of FL (“Grant Agreement”), to allow for the future dev of Metropolitan Park; Apv & Auth Mayor & Corp Sec to Exec any Grant Agreemt termination docs & othr agreemts as req by law. (B.T. 19-112)(Lotzia)(Req of Mayor) 8/13/19 CO Introduced: NCSPHS, TEU, F 8/19/19 NCSPHS Read 2nd & Rerefer 8/19/19 TEU Read 2nd & Rerefer 8/20/19 F Read 2nd and Rerefer 8/27/19 CO PH Read 2nd and Rereferred; NCSPHS,TEU,F 9/5/19 NCSPHS Meeting Cancelled/Defer 9/5/19 TEU Meeting Cancelled/Defer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 – 8/27/19 DEFER Page 2 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 2. 2019-0693 ORD-MC Regarding JEA; Amend Sec 21.07 (Fiscal & Budgetary Functions), Article 21 (JEA), City Charter, to create a New Subsection M to provide for a sharing of dividends to JEA customers based on JEA’s change in net position. (Sidman)(Introduced by CM Dennis) 9/24/2019 CO Introduced: TEU, F, R 9/30/2019 TEU Read 2nd & Rerefer 10/1/2019 F Read 2nd and Rerefer 10/1/2019 R Read 2nd and Rerefer 10/8/2019 CO PH Addnl Read 2nd and Rerefered;TEU,F,R 1/22/20 F Withdraw 6-0 1/22/20 R Withdraw 7-0 1/28/20 CO Disch;TEU Withdrawn 18-0 Public Hearing Pursuant to Chapt 166, F.S.& to Sec. 21.11,City Charter & CR 3.601 – 10/8/19 & 11/12/19 Council Member Dennis asked that representatives of JEA be allowed to address the committee. Nancy Veasy of JEA asked for an amendment to remove “JEA desires” from the resolution since this is a Council action they did not request. She said that any operating surplus is typically reinvested in the utility’s operations and not distributed as a dividend. They wouldn’t want to be put in the position of having to raise rates to provide mandated rebates. Mr. Dennis said he and the Council Auditor looked at JEA’s net position at the end of the last 5 fiscal years and found that the net position ranged from $80 million to over $200 million during those years. His bill would mandate at least a 5% rebate from positive net position to customers. He will ask that this bill be withdrawn in all committees. He asked JEA how they came up with the $350 customer rebate per service (for a total of about $400 million) in the event of a recapitalization event. Council Member Cumber expressed interest in the concept of customer credits/rebates, as did council members Salem, Pittman and Hazouri who recommended that it be discussed in the context of all the other JEA charter amendments currently under consideration. Concern was expressed about the possibility of granting rebates, than later having to raise rates. Council Member DeFoor asked JEA about how much they spend on short term performance incentives. Joe Arfano, JEA’s interim CFO, said he didn’t know an exact amount today. He said the electric utility is still highly leveraged compared to other utilities nationwide and the Plant Vogtle liability is still looming. Ms. DeFoor asked if JEA could refinance bonds at lower rates and save $100 million in debt service. Mr. Arfano said no; $460 million could be refunded, which would create a $53 million net present value savings and $3.6 million in annual debt service savings. With regard to Mr. Dennis’ question regarding the decision to mandate $350 rebates to customers as part of a recapitalization event, Mr. Arfano said it was a decision by top management to refund $400 million from the gross proceeds of a sale and it worked out to $350 per customer per JEA service. Mr. Dennis said it is disingenuous for JEA to say they can’t afford to rebate $6 million to customers from their net position when they spent $10 million on the failed ITN process. WITHDRAW Page 3 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended Aye: 6- Bowman, Cumber, DeFoor, Hazouri, Pittman and Salem Excused: 1- Freeman 3. 2019-0725- ORD-MC Amend Sec 120.203 (Contributions: Refund of Contributions), W Pt.2(Gen Employees Retirement Plan), Chapt. 120 (Gen Employees & Corrections Officers Pension Plans & all Employees Defined Contribution Retirement Plans), Ord Code, to provide for payment of JEA’s unfunded actuarial accrued liability upon JEA recapitalization event; Making amendment contingent upon recapitalization event for a sunset date . (Sidman) (Introduced by CM Carlucci) 10/8/19 CO Introduced: TEU, F, R 10/14/19 TEU Read 2nd & Rerefer 10/15/19 F Read 2nd & Rerefer 10/15/19 R Read 2nd & Rerefer 10/22/19 CO PH Read 2nd and Rerefered;TEU,F,R 1/7/20 R Withdraw 7-0 1/21/20 TEU Withdraw 6-0 1/22/20 F Withdraw 6-0 1/28/20 CO Withdrawn 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 -10/22/19 WITHDRAW Aye: 6- Bowman, Cumber, DeFoor, Hazouri, Pittman and Salem Excused: 1- Freeman Page 4 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 4. 2019-0853-E ORD Auth an Option Agreemt btw City of Jax & RP Sports Investments, Inc.& all closing docs., to Prov Option thru 1/31/23 for Purchase by Developer of Propty at A. Philip Randolph Blvd & Georgia St & btwn Albert St & Grant St, Approx 5 Acres Parcel of Unimprovd Real Propty to Develop an Office Bldg w/Min of 25,000 Sq ft,,a Soccer Stadium w/Min Seating Capacity of 2,500 Seats & Surface Parking Lot w/Min of 100 Parking Spaces;Oversight by OED. (Dist 7-Gaffney) (Sawyer) (Req of Mayor) (Co-Sponsor CM R. Gaffney & Salem) 11/26/2019 CO Introduced: NCSPHS, F 12/02/2019 NCSPHS Read 2nd & Rerefer 12/03/2019 F Read 2nd & Rerefer 12/10/19 CO PH Read 2nd & Rerefered;NCSPHS,F 1/21/20 NCSPHS Amend/Approve 5-0 1/22/20 F Amend/Approve 6-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 – 12/10/19 Chairman Bowman asked about the impact of this bill on the agreements with the Jacksonville Jaguars and the Florida/Georgia game regarding potential liability over lost parking spaces. Economic Development Officer Kirk Wendland said the proposed deal has a clause that voids the deal if the City can’t reach agreement with the universities of Florida and Georgia over parking by a date certain. This deal also requires the developer to build commercial office space and the deal is voidable if they don’t do that. The Georgia/Florida parking agreement is for certain defined locations, not a specific number of spaces in those locations. Council Member Hazouri asked who gets the parking revenue for these spaces now and how many spaces are being affected . Mr. Wendland didn’t immediatly know those details. The Florida/Georgia agreement will need to be amended in any event because of all the things going on around the sports complex (Lot J development, Hart Expressway demolition, etc.). AMEND(NCSPHS)/APPROVE Aye: 6- Bowman, Cumber, DeFoor, Hazouri, Pittman and Salem Excused: 1- Freeman Page 5 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended Informational and Discussion Points: • The assessed value of the parcels in the Option Agreement as amended total $411,092; the option payment is $5,000. • The Option Agreement requires the City to obtain consent from the parties in the FL/GA Agreement and to amend that Agreement as a condition precedent to the City’s obligation to sell the property. If the City is unable to do so, the Option Agreement terminates and neither party has any liability. • If the parties in the FL/GA Agreement do consent to the parking amendments, there may be additional costs to the City related to FL/GA parking obligations; however the costs are unknown at this time. • RP Sports Investments may assign its rights and/or obligations under the Agreement to an entity with common ownership and/or control with RPS or to a real estate investment trust or other financing sources without obtaining prior written consent of the City. • The option agreement does not have a JSEB provision related to the future construction. AMENDMENT 1. Correct parcel acreage to 5.83 acres in bill title and whereas clause 2. Pg. 4, line 29: strike “Project” and insert “Developer” 3. Pg. 5, line 1: strike “no” and insert “not” 4. Attach Revised Exhibit 1 to correct map and parcel listing 5. Place revised option agreement on file to: a. Clarify deed language in Section 10 to include reservation of all utilities easements and require Developer to pay the cost to relocate any existing utilities on the property if needed b. Include parking in the definition of “Improvements” in Section 10(a) and Exhibit B to the option agreement c. Clarify in Section 14(d) that the City shall exercise the put option in the event of a construction completion default d. Correct Section 14 subsection references e. Correct parcel listing (Exhibits A and B to option agreement) f. Clarify language in put option that Developer shall pay the FMV of the parcels as of 7/31/25 Page 6 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 5. 2019-0855-E ORD Amend Home Investment Partnership & State Housing Initiative Partnership Loan Mod terms Apvd by City Council Pursuant to Ord 2017-849-E. (Hodges) (Req of Mayor) 11/26/19 CO Introduced: NCSPHS, F 12/2/19 NCSPHS Read 2nd & Rerefer 12/3/19 F Read 2nd & Rerefer 12/10/19 CO PH Read 2nd & Rerefered;NCSPHS,F 1/21/20 NCSPHS Amend/Approve 5-0 1/22/20 F Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 – 12/10/19 AMEND(NCSPHS)/APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem AMENDMENT Attach Revised Exhibit 1 to correct HOME Loan reference (pg. 2, Subsequent Property Transfer) Page 7 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 6. 2019-0880-E ORD Approp $2,000,000.00 from Tree Protection & related Exps Trust Fund, Subfund 15F for Level 2 County-wide Prog to Prov Tree Planting on Public Land in Duval County Suggested by Individuals or Groups: Progs to be Administered by City; Apv & Req Dept of Public Works to Cont to Administered Prog in accord w/criteria herein; Prov funds carryover to Subseqnt FYs. (Grandin) (Introduced by CM Salem)Co-Sponsored by Council Member R. Gaffney) 12/10/19 CO Introduced: NCSPHS, TEU, F 1/6/20 NCSPHS Read 2nd & Rerefer 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS,TEU, F 1/21/20 NCSPHS Amend/Approve 5-0 1/21/20 TEU Amend/Approve 6-0 1/22/20 F Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 Assistant General Counsel Susan Grandin and City Arborist Kathleen McGovern described the two tree planting programs covered by this bill and 2020-886 and answered questions from committee members. In response to a question from Council Member Pittman about whether the City checks with homeowner associations before it plants trees, Ms. McGovern said that it does. In response to a question from Council Member Hazouri about which fund is being used for the two $2 million appropriations, Ms. Grandin said the $4M for these bills is coming from Fund 15F. Fund 15N – Charter fund - has approximately $5M, while 15F – the Ordinance Code fund - currently has $17.8M. The Charter fund is more stringent about its uses and has less to spend, so typically more appropriations are made from fund 15F. Council Member DeFoor asked if these funds can be use on state roads. They can, if FDOT enters into to a maintenance agreement. Council Member Cumber asked why $2M is being requested and not more, since the council has made similar, although smaller, appropriations in the past two years. Council Member Salem said it was because that’s what the Tree Commission recommended to be available for current needs. Ms. Cumber and Mr. Bowman proposed appropriating more now to save the cost of processing more legislation later. Mr. Salem said he will take that suggestion to the Tree Commission at its meeting this Thursday. AMEND(NCSPHS)/APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem AMENDMENT 1. Pg. 1, lines 10-11: strike duplicate language in bill title 2. Pg. 1, lines 25 and 29: capitalize “ordinance” 3. Remove incorrect Exhibit 1 filed with Legislative Services Page 8 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 7. 2019-0881-E ORD Apv & Auth Mayor, his Designee,& Corp. Secretary to execute & deliver a 1st Amend to Lease Agreemt btwn City of Jax & Vision Manufacturing Techologies, Inc. F/K/A FON, Inc. for Lease of (1) 900 Sq ft of addtn’l Space within Bldg 907 at 13557 Lake Newman St., Jax, FL in Cecil Commerce Ctr for total of 2,900 Sq ft; mthly rentl rate of $2,175.00; & (2) 4,134 Sq ft of space within Bldg 993 at 6011 Pow-Mia Memorial Pkwy, Jax, FL Inc. Cecil Commerce Ctr, Mthly rate of $3,100.50 within common area maint fee of $200.00/mo, per bldg.; Prov Ext of Initial lease Term to 1/31/21 w/two, 1-Yr Rnwl Options; Oversight by OED (Staffopoulos) (Req of Mayor) 12/10/19 CO Introduced: NCSPHS, F 1/6/20 NCSPHS Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, F 1/21/20 NCSPHS Approve 6-0 1/22/20 F Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem Page 9 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 8. 2019-0882-E ORD Approp $50,000.00 in fund balance from Environmental Protection Trust Fund (The “FUND”) to Prov funding to suppt Addtn’l depth dredging & Subseqnt remonal & disposal of contaminated soils from Millers Creek (The “Project”); Prov Waiver of Sec 111.755 (Environmental Protection Fund), Pt 7 (Environment & Conservation, Chapt 111 (Spec Rev & Trust Accts), ORD Code Auth Board to Utilize funds from The Fund for the Proj; Prov Waiver of Sec 360.602 (Uses of Fund), Pt 6 (Environmental Protection Fund), Chapt 360 (Environmental Protection Fund), Chapt 360 (Environmental Regulation), Ord Code, to auth the Board to Utilize funds from The Fund for The Project; Invoking Exception of Sec. 126.107(G) (Exemptions), Chapt 126 (Procurement Code), Ord Code to Direct Contract Millers Creek Special Dist for The Project; Apv funding Agreemt for Millers Creek Special Dist Eco Restoration btwn City of Jax & Millers Creek Special Dist for The Project;Oversight by Environmental Quality Div; Requiring Reprt. (B.T. 20-032)(McCain) (Req of Mayor) 12/10/19 CO Introduced: NCSPHS,TEU,F, R, JWW 1/6/20 NCSPHS Read 2nd & Rerefer 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/7/20 R Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS,TEU, F,R, JWW 1/15/20 JWW Approve 9-0 1/21/20 NCSPHS Amend/Approve 6-0 1/21/20 TEU Amend/Approve 6-0 1/22/20 F Amend/Approve 7-0 1/22/20 R Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 AMEND(NCSPHS)/APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem AMENDMENT 1. Pg. 4, line 14: strike “Annual” and insert “Final” 2. Attach revised Exhibit 1 to correct waiver language on BT 3. Attach revised Exhibit 3 to: a. Revise payment terms from advance payment to reimbursement basis b. Add provision that reimbursement requests will be jointly reviewed by EPB and Public Works staff c. Add provision granting the City audit rights d. Add default and termination provisions e. Attach revised Schedule B to include revised project budget Page 10 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 9. 2019-0883-E ORD Approp $163,370.00 in Private Contributions to Victim’s Assist Advisory Council (VAAC) Trust Fund by All Elite Wrestling ($157,370.00) & Farah & Farah ($6,000.00) to Prov Funding for Progs & Srvcs Benefitting Individuals impacted by Gun Violence & other crimes. (B.T. 20-033) (McCain) (Req of Mayor)(Co-Sponsored by Council Members R. Gaffney, Newby, Pittman, Salem & Hazouri) 12/10/19 CO Introduced: NCSPHS,F 1/6/20 NCSPHS Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, F 1/21/20 NCSPHS Approve 6-0 1/22/20 F Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 Chief Financial Officer Joey Greive reported that the donation check has arrived but not been deposited yet; that will happen later today. If the check doesn’t clear by next Tuesday he will inform Council and will not expend anything until it does clear. Council Members Pittman and Hazouri asked to be added as co-sponsors. APPROVE Concern: The $157,370 contribution from All Elite Wrestling has not yet been deposited by the City. The Finance Director has indicated that the check has been received. The City has received the $6,000 contribution from Farah & Farah and it is reflected in the general ledger. If the expenditures are made prior to receiving the contribution, the trust fund could be put in a negative cash position. 10. 2019-0884-E ORD Apv & Auth Transfer from Sunshine Recycling, Inc. to WCA of Florida, LLC of its Non-Residential Solid Waste Collection & Transportation Franchise, Pursuant to Sec 380.609,Ord Code. (McCain) (Req of Mayor) 12/10/19 CO Introduced: TEU,F 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;TEU, F 1/21/20 TEU Approve 6-0 1/22/20 F Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem Page 11 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 11. 2019-0886-E ORD Approp $2,000,000.00 to “630-CITY TREE Planting Prog.” also known as “Level 1 Tree Planting Prog.” for Tree Planting by Public Works in Public r/w’s in locations where Adjcnt Propty Owners have made requests thru 630-CITY; Apv & Req Public Works to Cont. to Administer Prog. in accord. w/criteria herein; Prov clarification of name of Prog; Prov funds carryover into Subseqnt FYs (Grandin) (Introduced by CM Salem) (Co-Sponsored by Council Member R. Gaffney) 12/10/19 CO Introduced: NCSPHS, TEU, F 1/6/20 NCSPHS Read 2nd & Rerefer 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, TEU, F 1/21/20 NCSPHS Amend/Approve 6-0 1/21/20 TEU Amend/Approve 6-0 1/22/20 F Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 AMEND(NCSPHS)/APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem AMENDMENT 1. Include funding source in bill title (15F) 2. Correct scrivener's 12. 2019-0887-E ORD Apv & Auth Purch & Sale Agreemnt btwn City of Jax & Patel Asset Holdings, LLC & Closing Documents relating thereto & otherwise take necessary action to Effectuate Purpose of Agreemnt for Acquisition by the buyer at Negotiated Price of $250,000.00 of Real Propty;( 1.13± Acre Parcel) for Jax Rowing Ctr; Prov purpose; Prov. Oversight of acquisition transaction of Subj Propty by Real Estate Div. of Public Works Dept ;Oversight of Proj thereafter by Dept of Parks Rec & Comm. Svcs. (Dist 1-Morgan)(McCain)( Req of Mayor) 12/10/19 CO Introduced: NCSPHS,TEU, F 1/6/20 NCSPHS Read 2nd & Rerefer 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, TEU,F 1/21/20 NCSPHS Approve 6-0 1/21/20 TEU Approve 6-0 1/22/20 F Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem Page 12 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended - Property being purchased for $250,000 has been appraised at $236,000 - City plans a future land swap with the State for adjacent parcel to be used by the City for the Jacksonville Rowing Center - City has an available $1.7 million budgeted for the regional rowing center 13. 2019-0888-E ORD-MC Amend Sec 126.901 (Definitions), Pt 9 (Art in Public Places), Chapt 126 (Procurement Code), Ord Code to include City-Controlled Bldgs or Propty in Definition for use of Art in Public Places Prog; Approp $50,000.00 ($45,000.00 from Dist 14 Autumn Bond Acct to Public Art Acct & $5,000.00 from Council Operating Contingency to Art in Public Places Trust Fund) to Prov funding for “Roosevelt/Edgewood – Artwork & Lighting” proj; Prov Public Works Dept & Cultural Council of Jax, Inc.,& disbursement of funds upon invoices & accounting/reverter of any unspent funds; Finding Municipal Purpose; Waiving Requiremts of Autumn Bond, Ord 2004-998-E, as Amend by 2005-1044-E & Sec. 106.315, Ord Code; Auth Agreemnt btwn City of Jax & FDOT. (Johnston) (Introduced by CM DeFoor)(Co-Sponsored by CM's R. Gaffney,Newby, Hazouri, Pittman, Bowman, Freeman, Salem & Morgan) 12/10/19 CO Introduced: NCSPHS,TEU, F,R 1/6/20 NCSPHS Read 2nd & Rerefer 1/6/20 TEU Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/7/20 R Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, TEU, F, R 1/21/20 NCSPHS Approve 5-0 1/21/20 TEU Approve 6-0 1/22/20 F Approve 7-0 1/22/20 R Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 Council Members Hazouri, Pittman, Bowman and Freeman asked to be added as co-sponsors. Council Member Cumber explained the need for waiver to allow the project to be constructed on FDOT property, not City property. APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem SCRIVENER'S 1. Pg. 1, line 19 and Pg. 3, line 26 before "Jacksonville" insert "Greater" 2. Pg. 1, line 29 strike "with" 3. Pg. 3, line 29 correct spelling 4. Pg. 4, line 17 correct ordinance reference (2005-1044-E) 5. Pg. 4, line 24 strike "at" Page 13 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 14. 2019-0890-E ORD Approp $768,000.00 from Isle of Palms Dredging to Isle of Palms Dredge-Special Dist Match to Prov 12% match fund for Isle of Palms Dredging Proj; Prov funds carryover from Yr to Yr until funds are expended or lapse according to Agreemnt; Apv & Auth Fund Agreemnt for Isle of Palms Dredging Proj btwn Isle of Palms Spec. Dist & COJ; Invoking Exceptn to Sec 126.107(G), Ord Code; Oversight by Public Works Dept. (Johnson) (Introduced by CM Diamond) 12/10/19 CO Introduced: NCSPHS,F, R, JWW 1/6/20 NCSPHS Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/7/20 R Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS,F,R,JWW 1/15/20 JWW Approve 9-0-1 (Abstain Brock) 1/21/20 NCSPHS Amend/Approve 6-0 1/22/20 F Amend/Approve 7-0 1/22/20 R Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 AMEND(NCSPHS)/APPROVE AMENDMENT Attach Isle of Palms Special District Board Resolution approving funding agreement with the City 15. 2019-0891-E ORD Auth a Sovereignty Submerged Lands Fee Waived Lease Renewal (BOT File # 160739059) btwn the City of Jax & the Board of Trustees of the Internal Improvement Trust Fund of the State of FL. for the purpose of securing land for the Southbank Riverwalk & Floating Docks, for a 5-Yr. Term at no cost (McCain) (Req of Mayor) 12/10/19 CO Introduced: NCSPHS,F,R,JWW 1/6/20 NCSPHS Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/7/20 R Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS, F, R, JWW 1/15/20 JWW Approve 10-0 1/21/20 NCSPHS Approve 6-0 1/22/20 F Approve 7-0 1/22/20 R Approve 7-0 1/28/20 CO Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/14/20 Renee Hunter, Real Estate Officer, explained the submerged land lease extension for the Southbank. Council Member Hazouri asked for an update on the timing of the improvements to Southbank Riverwalk. APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem Page 14 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 16. 2019-0897-E ORD Making Certain Findings & Apv & Auth (1) Redev Agreemnt btwn city of Jax & VC Lavilla Townhomes, LTD., affiliate of Vestcor Companies, Inc. (“Developer”) which Agreemnt Provides Constructn by Developer of 88 Townhomes, Improvements to Lift Ev’ry Voice Park (“Park”), & Improvmts to Lavilla Heritage Trail (“Trail”), Segment of Emerald Trail, as well as $100,000 cash contributions to each of the Park & Trail, within Northbank Downtown Community Redevelpmt area; (2) Quitclaim Deed Conveying (3.45±) Acres of City-owned land at Intersectn of Johnson & Houston Streets, Jax FL to Developer for $100 w/adjacent 5’ Strip of Johnson Street r/w Proposed closure; (3) Related Agreemnts & closing docs described in Agreemnt & Otherwise to take all necessary action to effectuate purpose of Agreemnt; Designating DIA as Contract Monitor; Oversight by Dept of Public Works. (Dist 7-R. Gaffney) (Sawyer) (Req. of DIA)(Co-Sponsored by Council Member R. Gaffney & Newby) 12/10/19 CO Introduced: NCSPHS, F 1/6/20 NCSPHS Read 2nd & Rerefer 1/7/20 F Read 2nd & Rerefer 1/14/20 CO PH Read 2nd & Rerefered;NCSPHS,F 1/21/20 NCSPHS Amend/Approve 6-0 1/22/20 F Amend/Approve 7-0 1/28/20 CO Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/14/20 Chairman Bowman felt that the bill provides a very tight time frame for the developer to perform. Guy Parola of the DIA said the authority was attracted by Vestcor’s history of timely performance on other projects. They are scheduled for final approval by DDRB in February so should be fine for starting in July, and DIA can grant an extension if necessary. Vestcor is comfortable with the schedule. AMEND(NCSPHS)/APPROVE Aye: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem Page 15 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended Summary of Redevelopment Agreement: • The City will convey approximately 3.45 acres to the Developer at a sales price of $100 • The parcels have an assessed value of $ $1,394,749 and appraised value of $3,580,000 • The Developer will construct 88 townhome units and make related horizontal improvements • The Developer will make a $100,000 contribution to the City for improvements to the Life Ev’ry Voice and Sing Park and a $100,000 contribution for enhancements to the Emerald Trail • The Developer shall commence construction within four months of final DDRB approval, but in no event later than July 1, 2020, and shall substantially complete the project on or before December 31, 2021 • If the Developer does not commence construction by the construction commencement date, the Developer shall incur a $500 per day penalty • If the Developer fails to commence construction within 180 days of the construction commencement date, the property shall revert back to the City • Upon the sale of each townhome, the City shall be entitled to 75% of the net revenues to the Developer in excess of $250,000. The estimated revenue to the City is unknown and has not been included in DIA’s ROI calculation • DIA has calculated the ROI for the project at 1.12 AMENDMENT 1. Pg. 1, line 14: insert “AND SING” after “VOICE” 2. Pg. 2, line 6: strike “portions of” 3. Pg. 2, line 8: insert “a portion of” after “and” 4. Pg. 2, line 21: strike “the” before “VC” 5. Pg. 3, line 1: strike “at closing” 6. Attach revised Exhibit 1 to include Exhibit A to the DIA resolution 7. Place revised redevelopment agreement on file to: a. Correct default language to 180 days after the Construction Commencement Date in Section 10.3(b) b. Correct developer name to VC LaVilla Townhomes LTD in Notice of Reversion of Title c. Correct section references throughout agreement d. Correct scriveners Page 16 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 17. 2020-0022-E ORD Approp $13,886,334.88 ($3,236,707.40 in Grant Funds from State of FL Dept of Environmental Protection (FDEP) & $10,649,627.48 from Clean-up of City All-Yrs Subfunds) for Duval County Shore Proj (“The Project”) to Reimb City’s Participation in Proj Cost for Completed Tasks Funded by City through Pymts to Construct 16-17 Dune Repairs & Advance Pymt of Funds to U.S. Army Corps of Engineers & Upcoming Beach Mgmt Tasks, Prov Clean-up of All-Yrs Subfunds as Required before ERP Go-Live Date, Apv & Auth Standard Grant Agreemt btwn State of FL DEP & COJ; Prov Oversight by Engineering & Constrn. Mgmt. Div. of Dept of Public Works. (B.T. 20-017) (McCain) (Req of Mayor) 1/14/20 CO Introduced: NCSPHS,TEU, F,JWW 1/21/20 NCSPHS Read 2nd & Rerefer 1/21/20 TEU Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/28/20 CO PH Read 2nd & Rerefered;NCSPHS,TEU, F,JWW 2/3/20 NCSPHS Amend/Approve 7-0 2/3/20 TEU Amend/Approve 6-0 2/4/20 F Amend/Approve 6-0 2/11/20 CO Amend/Approved 17-0 2/12/20 JWW Approve 10-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 READ 2ND AND REREFER 18. 2020-0023-E ORD Apv & Auth Declaration of Restrictive Covenant btwn COJ & FL Dept of Environmental Protection (FDEP), & other Docs Necessary to Effectuate Purpose of Restrictive Covenant; for property currently occupied by City’s Animal Care & Protective Svcs. Facility at 2020 Forest St., Re #089868-0100.(McCain) (Req of Mayor) 1/14/20 CO Introduced: NCSPHS,TEU, F 1/21/20 NCSPHS Read 2nd & Rerefer 1/21/20 TEU Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/28/20 CO PH Read 2nd & Rerefered;NCSPHS,TEU, F 2/3/20 NCSPHS Approve 7-0 2/3/20 TEU Approve 6-0 2/4/20 F Approve 6-0 2/11/20 CO Approved 19-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 READ 2ND AND REREFER Page 17 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 19. 2020-0024-E ORD Apv & Auth Economic Development Agreemt (“Agreement”) btwn City of Jax & Millennia Jax FL TC, LP (“Company”) to Suppt Renovation of Four Apartment Communities, Palmetto Glen, The Weldon, Valencia Way & Calloway Cove, each serving as U.S. Dept of Housing & Urban Dev Assisted Apartments; Auth Deteriorated Infrastructure Grant of $2,000,000; Apv & Auth Execution of Docs; Auth Apvl of Tech Amends; Prov Oversight by Office of Economic Development (“OED”); Prov Deadline for Company to Execute Agreemt. (Sawyer) (Req of Mayor) (Co-Sponsored by CM Dennis,Newby,Carlucci, Pittman, Salem, Bowman & Hazouri) 1/14/20 CO Introduced:NCSPHS, F 1/21/20 NCSPHS Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/28/20 CO PH Read 2nd & Rerefered;NCSPHS, F 2/3/20 NCSPHS Amend/Approve 6-1 (Priestly Jackson) 2/4/20 F Amend/Approve 6-0 2/11/20 CO Amend/Approved 17-1(Priestly Jackson) Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 READ 2ND AND REREFER 20. 2020-0026-E ORD- MC re Dockless Mobility Progs; Creating New Chapt 235 (Dockless Mobility Programs), Ord Code to Create & Prov for 1-YR Pilot Prog to Allow Permits for Prov Dockless Bicycles (Dockless Mobility Units) within City’s r/w; prov. Directive to Legislative Svcs Div to Circulate Enacted Legislation to Webmaster for Immediate Update on Fees Online. (Teal) (Introduced by CM Cumber)(Co-Sponsored by CMs White, Carlucci, Diamond, Gaffney, Priestly Jackson, Morgan, Bowman, Hazouri, Pittman, DeFoor, Freeman, Salem & Newby) 1/14/20 CO Introduced : NCSPHS,TEU,F 1/21/20 NCSPHS Read 2nd & Rerefer 1/21/20 TEU Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/28/20 CO PH Read 2nd & Rerefered;NCSPHS, TEU, F 2/3/20 NCSPHS Amend/Approve 7-0 2/3/20 TEU Amend/Approve 6-0 2/4/20 F Amend/Approve 6-0 2/11/20 CO Amend(2x)(Flr)/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 READ 2ND AND REREFER Page 18 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 21. 2020-0039-E ORD- MC Creating New Sec 50.111 (Response to Requests of the Council Auditor), Chapt 50 (Organization of Boards & Commissions), Ord Code, to Provide for Process to Respond to Requests made by Council Auditor Within 48 Hrs from Receipt of Council Auditor’s Request & Provide Timeframe for Submitting Requested Information to Council Auditor. (Johnston) (Introduced by CM Diamond)(Co-Sponsored by CM Cumber, Carlucci, Newby, Wilson, DeFoor, Salem & Ferraro) 1/14/20 CO Introduced:TEU, F, R 1/21/20 TEU Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/22/20 R Read 2nd & Rerefer 1/28/20 CO PH Read 2nd & Rerefered;TEU, F, R 2/3/20 TEU Approve 6-0 2/4/20 F Approve 6-0 2/4/20 R Amend/Approve 7-0 2/11/20 CO Approved 18-0;Reconsider Amend/Approved 18-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 READ 2ND AND REREFER 22. 2020-0040 ORD re Responses to Council Auditor; Amend Sec 21.07 (Fiscal & Budgetary Functions), Article 21 (JEA), City Charter, to Prov Process to Respond to Requests Made by Council Auditor within 48 Hrs from Receipt of Council Auditor’s Requested Information to Council Auditor. (Johnston) (Introduced by CM Diamond) (Co-Sponsor CM Cumber) 1/14/20 CO Introduced :TEU, F, R 1/21/20 TEU Read 2nd & Rerefer 1/22/20 F Read 2nd and Rerefer 1/22/20 R Read 2nd & Rerefer 1/28/20 CO PH Read 2nd & Rerefered;TEU,F,R Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –1/28/20 Public Hearing Pursuant to Sec 21.11, City Charter & CR 3.601 -2/25/20 READ 2ND AND REREFER Page 19 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended 23. 2020-0042-A RESO Urging JEA Board to Take Formal Action on or Before Next Regularly Scheduled JEA Board Mtg (1/28/20) to: (1) Take or Initiate all Actions Necessary to Renegotiate, Rescind, Cancel and/or Terminate all Executed Non-CEO Employmt Agreemts btwn JEA & Senior Leadershp Employees Apvd by Board at 7/23/19 Board Mtg (2) Direct Interim CEO & Managing Director (‘Interim JEA CEO”) to Reopen Collective Bargaining Negotiations & Renegotiate Applicable JEA Collective Bargaining Agreemts to Remove from Agreemt Terms any JEA Employee Retention Pymts Contingent Upon Recapitalization Evnt; (3) Refrain from Including as a Condition to Recapitalization Evnt or JEA Reorganization that JEA Employees, Non-JEA Employees, or JEA Customers Receive Grants, Refunds, Rebates or Other Cash or In-Kind Incentives in any JEA Proposed Recapitalization Evnt 120.201 (HH), Ord Code or JEA Proposed Reorganization to be Apvd by Council; & (4) Fully Engage & Inform all Stakeholders, Ratepayers, & Other Interested Parties in any Strategic Planning Process &/or Decision-Making Process Regarding Future of JEA; Directing Chief of Legislative Srvcs to Forward Copy of Reso to JEA Board & Interim JEA CEO; Req.Emergency Passage Upon Introduction. (Johnston) (Introduced by CM Becton) 1/14/20 CO Introduced:TEU,F, R 1/21/20 TEU Emergency/Amend/Approve 1-5 (Freeman, Salem, Bowman, Cumber, Ferraro) 1/22/20 F Emergency/Amend/Approve 0-7 (Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman, Salem) 1/22/20 R Emergency/Amend/Approve 6-1 (Boylan) 1/28/20 CO Emergency/Amend(2x)(Fl)/Approved 18-0 Council Member Becton requested that the committee take some action on the bill today. He noted that it failed 1-5 in the TEU Committee yesterday. The emergency request and the amendment were approved. Council Member Salem described the debate in TEU yesterday and said there were two primary concerns. First, there was concern about reopening union contracts. Second, JEA executive contracts are being dealt with individually by the JEA board next week, and there was some sentiment to wait and see what they do first. Council Member DeFoor moved an amendment to just deal with the executive contracts and not the union contracts. Mr. Salem said Mr. Becton had wanted both issues included in the motion in TEU yesterday. The DeFoor amendment failed. EMERGENCY/AMEND(TEU)/APPROVE (Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittmant, Salem) Nay: 7- Bowman, Cumber, DeFoor, Freeman, Hazouri, Pittman and Salem AMENDMENT Correct emergency language to be a one-cycle emergency NOTE: The next regular meeting will be held Tuesday, February 4, 2020. Page 20 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended *****Note: Items may be added at the discretion of the Chair.***** Page 21 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended Council Member Cumber announced that a federal government grant $17M, an FDOT grant of $13M, plus FEC and CSX railroad funding has been acquired to fix the San Marco train crossing problem. Council Budget Priorities Funding Request Chairman Bowman initiated discussion on finalizing a $5M City Council request by the next Finance meeting to submit to the Mayor for inclusion in his FY20-21 budget. The requests need to be for non-recurring items and hopefully aligned with the Council’s strategic plan. Deputy General Counsel Peggy Sidman has drafted a placeholder ordinance that needs an attachment with the budget request details. Proposals: Council Member Newby requested $1M for the Crime and Public Safety Task Force for implementation actions, including mentoring, teen programming, trauma response, etc . Council Member Freeman said he needs more details before he can be supportive, especially in the teen programming area. Council Member Hazouri said he hopes the Council isn’t being limited by the Mayor to just $5M and that all council members will get a chance to advocate for programs they want to fund, not just Finance Committee members. He believes the Council needs more input into the budget at the start of the process rather than simply reacting to the Mayor ’s proposals. Mr. Bowman said he sent an email to all council members inviting suggestions for inclusion on the list. Last year when he was Council President he had considerable discussion with the mayor about what the Council wanted, recognizing that it’s the mayor’s responsibility to propose a budget. Council Member DeFoor said she liked Mr. Newby’s suggestion and wants to see partnerships, not silos. Chairman Bowman requested $263,250 for the KHA for a mentoring program. Council Member Salem requested $200,000 for an infant mortality reduction initiative by UF Health and the Health Department. Council Member Freeman noted that the City gave UF Health a one-time $8M infusion this year and said it needs to do more to assist the hospital. He asked CFO Joey Greive why the City doesn’t fund UF Health more. Mr. Greive said the City recognizes their needs and plans to sit down with hospital management about their needs and what the City can afford this year as revenues become clearer through the spring. Council Member Salem agreed that UF Health is a vital resource in the community and has huge unmet needs. The Mayor last year announced a $120M capital commitment over 6 years to UF Health. Chairman Bowman asked Mr. Greive for a presentation on UF Health at a future Finance meeting before the budget process starts. In response to a question from Council Member Hazouri about whether the City is tracking what the Florida Legislature is doing and advocating for more funding for UF Health, Mr. Greive said he will check on what the City’s lobbying team is hearing and what’s happening in Tallahassee. Mr. Bowman said he would put in $100,000 placeholder for UF Health. Page 22 of 23 Finance Committee Meeting Minutes - Twice January 22, 2020 Amended Council Member Pittman expressed a need for the committee to understand what’s already being spent on all of the strategic plan elements. She believes the City is already spending a lot in all these areas and should prioritize what more is needed and where to really make a difference, possibly by targeting a few areas rather than spreading funding thinly countywide . Funding for successful programs has been relocated to other places and increased crime has resulted. Council Member Pittman suggested capital funds for neighborhood improvements in targeted areas. Council Member Hazouri said he had talked to the Sheriff about mental health program needs; MR. Bowman said he will put a $100,000 placeholder in for that to discuss later. Chairman Bowman requested to continue the A-Step employment program through Goodwill at $225,000. Chairman Bowman suggested shifting funding from a currently vacant Tourist Development Council administrator position for a half-time strategic plan support position. He also noted that the Ethics Office wants to convert a half-time position to full time. He asked the committee members to think about what else to propose in the next 2 weeks and come back with specific proposals to the next meeting. Council Member Cumber requested a $100,000 placeholder for a human trafficking initiative. Peggy Sidman said that she had allocated today’s proposals into the strategic plan categories in the resolution and will review them with Chairman Bowman before redrafting the legislation for introduction. Pursuant to the American with Disabilities Act, accommodations for persons with disabilities are available upon request. Please allow 1-2 business days notification to process; last minute requests will be accepted; but may not be possible to fulfill . Please contact Disabled Services Division at: V 904-255-5466, TTY-904-255-5476, or email your request to KaraT@coj.net. Rollcall Present: 7- Chair Aaron Bowman, Vice Chair LeAnna Cumber, Council Member Randy DeFoor, Council Member Terrance Freeman, Council Member Tommy Hazouri, Council Member Ju'Coby Pittman and Council Member Ron Salem Jeff Clements - Council Research Division jeffc@coj.net 904-255-5137 Posted 1.27.20 10:00 a.m. Page 23 of 23