Board of Commissioners Special Meeting

MINUTES BOARD OF COMMISSIONERS SPECIAL MEETING FEBRUARY 25, 2019 A special meeting of the City of Madeira Beach Board of Commissioners was held at 6:00 p.m. on February 25, 2019 in the Patricia Shontz Commission Chambers at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida. MEMBERS PRESENT: Maggi Black, Mayor Nancy Hodges, Commissioner District 2 John Douthirt, Commissioner District 4 MEMBERS ABSENT: Deby Weinstein, Vice-Mayor/Commissioner District 1 Commissioner Di strict 3 - Vacant CITY STAFF PRESENT: Jonathan Evans, City Manager Clara VanBlargan, City Clerk Ralf Brookes, City Attorney 1. CALL TO ORDER Mayor Black called the meeting to order at 6:00 p.m. 2. ROLLCALL City Clerk Clara VanBlargan called the roll. 3. PUBLIC COMMENT Chuck Lambert, 565 Crystal Drive, thanked the Board, City Manager, and City staff for their work in bringing stability back to Madeira Beach, making the municipal government transparent and accountable, and thanked Commissioner Douthirt for hi s help in getting the Crystal Island residents' concerns heard at the meetings. Ron Llauget, 1323 1, Gulf Lane, commented on previous meetings he had with the City regarding previous repaving of Gulf Lane and explained the road problems there. Ginger Tolliver, 814 Bay Point Drive, commented on how Bay Point Drive needed road improvements. 4. AGENDA ITEM TOPICS February 25, 2019, BOC Special Meeting Minutes Page 1 of 10  A. Roadway Project Funding and Authorizations Request - Jonathan Evans, City Manager City Manager Jonathan Evans reviewed the following staff memo provided in the meeting agenda packet: [Begin staff memo] "Background The City of Madeira Beach recently held a public meeting on February 13, 2019, to address growing concerns regarding the roadways on Crystal Island. The major concerns are with Crystal Dr., Flamingo Dr., Lillian Dr., and John's Pass Ave. Residents are concerned about localized flooding, significant cracking resulting in potholes, and other components associated with aging infrastructure. The project's objective to rebuild all the roadways on Crystal Island is projected to cost approximately $7.5 million, which will require the city to move forward with either a banknote ("loan") or municipal bond issuance. Per Moody's scorecard rating criteria, the city earned a general obligation rating of Aa2, which is the third highest credit rating Moody's assigns to fixed-income securities. This shows that the city has excellent creditworthiness. The intended project aims to redesign and reconstruct all the roadways on Crystal Island, with pervious pavement and traditional asphalt in the appropriate sections, as well as to address curb and stormwater issues. Because this project would include major modifications to the way the city addresses stormwater runoff, the city will proceed with attempting to obtain cooperative funding from Southwest Florida Water Management District (SWFWMD), whereby the city could receive a grant to decrease the project's costs by nearly half. The city has been successful in obtaining grant funding from SWFWMD in the past. Examples of cooperatively funded projects between the city and SWFWMD are Rex Place, Boca Ciega Ave., and Boca Ciega Dr. Furthermore, the city wishes to proceed with obtaining additional funds to address the aging infrastructure on Parsley/Marguerite Drive, which are both in desperate need of improvements because they are experiencing significant deterioration. The cost to move forward with all these projects is estimated to be approximately $12.5 million, just to address the roadways articulated in this memorandum. However, there are opportunities through SWFWMD. Immediate Action Because of the ongoing deterioration and heavy traffic on Crystal Drive and Flamingo Drive, staff is recommending a temporary solution while the city moves forward with obtaining cooperative funding for all of the Crystal Island roadways. Staff is requesting the Board of Commissioners' approval to spend approximately $225,000 to mill and resurface the roadways of Crystal Drive and Flamingo Drive; this is a stopgap measure to allow for additional time for the city to obtain cooperative funding from SWFWMD. It would take 30 days to competitively bid the project, an additional 30 days for February 25, 2019, BOC Special Meeting Minutes Page 2 of 10  design/engineering, and approximately 25 days for project completion. The city anticipates the milling and resurfacing of Crystal Drive and Flamingo Drive to be completed in mid-May or early June of 2019. Concurrently, staff will move forward in obtaining the monies necessary ($12.5 million) via whatever financial mechanism staff believes is appropriate based on the bond market and the interest rates for a traditional banknote. This process will most likely take 6 to 8 months. The city anticipates receiving the monies necessary to fund the entire Crystal Island project and Parsley/Marguerite Drive by October 2019. From March through August 2019, city staff will also coordinate with Pinellas County Utilities to replace water distribution systems and sanitary sewer collection systems, conduct preliminary engineering work, and obtain soil borings to determine soil type and percolation rate for pervious pavement. Staff will also begin the application to receive cooperative funding through SWFWMD and explore additional funding through the Florida Department of Environmental Protection, the State of Florida legislature via a budget appropriation, as well as the federal government for the purpose of mitigating the fiscal impact to the City of Madeira Beach. The remaining schedule for the Crystal Island project is anticipated to proceed as follows: • September- October 2019 o Submit application to SWFWMD • November 2019 - March 2020 o Coordinate with SWFWMD for project scoping and revisions • April - August 2020 o Submit applications for cooperative funding projects ranked by the District Governing Board • September 2020 o District Governing Board approves funding for projects • October 2020 o District awards grant to Madeira Beach • November 2020 - April 2021 o Staff prepares construction plans, acquires permits, and advertises plans for bids • May 2021 o BOC approves construction bid o Construction begins • June 2021 - October 2022 o Under construction Fiscal Impact The project's fiscal impact is estimated to be $12.5 million, assuming the Board of Commissioners chooses to proceed with obtaining funding to address Crystal Island's roadways, specifically Crystal Dr., Flamingo Dr., Lillian Dr., and John's Pass Avenue. February 25, 2019, BOC Special Meeting Minutes Page 3 of 10  If the board chooses to proceed with obtaining funding for Parsley/Marguerite Drive, the total bond issuance or banknote would be $12.5 million. Staff, along with a financial advisor and bond counsel, will determine the most appropriate mechanism to fund these infrastructure projects. Also, the city will be applying for cooperative funding from the water management district and other agencies. Staff is also recommending that the Board of Commissioners consider requesting an additional $2.5 million to address infrastructure needs on Pelican Lane, 129th W, and 13P1 Ave E. By doing so, the city will aggressively address its poorest roadways. This information is supported by the city's contractual engineer and city staff. The total debt issuance if the board chooses to move forward would be approximately $15 million for not only addressing the following roadways and their aging infrastructure but also addressing some cosmetic and functionally obsolete elements present in John's Pass Village and the following surrounding areas: • Crystal Dr. • Flamingo Dr. • Lillian Dr. • John's Pass Avenue • Parsley Dr. • Marguerite Dr. • Pelican Lane • 129th Ave E • 13P1 Ave E • John's Pass Village Recommendation City staff recommends that the Board of Commissioners direct the city manager to proceed with a competitive solicitation process for an amount not to exceed $225,000 for the milling and resurfacing of Crystal Drive and Flamingo Drive and authorize the finance director to proceed with obtaining the monies ($15 million) necessary to address the infrastructure needs articulated in this memorandum. Additionally, the Board of Commissioners will be provided with a funding strategy for debt repayment and the short- and long-term fiscal implications to the city. In addition, the Board of Commissioners should direct the city manager to proceed with applying to S WFWMD for cooperative funding, as well as to other state and federal agencies, to minimize this infrastructure expenditure's fiscal impact on the city. The city's lobbyists should be contacted to request a budget appropriation from the state legislature." [End staff memo] DISCUSSION ON ITEM: Commissioner Hodges said there have been misconceptions about the work to be done and asked February 25, 2019, BOC Special Meeting Minutes Page 4 oflO for clarification. Al Carrier, Deuel & Associates explained the work to be done. Commissioner Hodges asked the life expectancy of the remilling on Crystal Drive. Mr. Carrier said between 5 and 8 years and sometimes 10 years. With the condition of that road and the amount of traffic they are looking to getting 3 to 3-1/2 years out ofit. Commissioner Hodges asked Finance Director Walt Pierce about the $4 million funding for road improvement that was listed in the Fiscal Year 2017 budget book that was slated for completion in Fiscal Year 2019. Director Pierce explained that it was a plugged-in number and according to his research there was no revenue backing to support that number. The City Manager explained that in conversation with the Finance Director when he joined the organization, he asked about the $4.2 million and if revenue had been set aside, etc. and he was told that it was only a plugged-in number. Although CIP is a five-year plan, they are only required to fund the first year. They have spoken to the City's lending institution about getting the roadways done and they recommended doing it now, because interest rates will be going up and there are concerns with the economy backsliding as well. Commissioner Hodges said the Fiscal Year 2019 budget shows Crystal Island improvements with a projection date of 2020 at $2 million. Director Pierce explained that it was a more realistic number. They had originally planned to delay the project, but now see an urgency in doing the project instead of delaying it. Commissioner Hodges said three projects were already done and paid for, and one project left to do. She asked why the project had stopped. The City Manager explained that the funding had been acquired, but not for the Crystal Island project. They were going through the process now to acquire the money for all the projects so they could go through the cooperative process with the water management district. Mr. Carrier explained that they could not start one project without getting the reimbursement to start the other, and that had delayed the projects. The projects ended up costing about 15% more to do. Mayor Black asked the odds of getting the reimbursement money. Mr. Carrier explained that in the eyes of SWFWMD it is a homerun. In the next two or three weeks, he and the City Manager will start talking to SWFWMD and doing some preliminary engineering to make sure what they are wanting to do will work. That will be reported back to the Board. Mayor Black asked if going forward in the future with a loan or a bond issuance how would it affect the budget and the millage rate going forward. Director Pierce said the bank indicated that the interest rates are low, and this would be a good time to commit to a financing option and start planning for it. The City Manager said there are two revenue streams they would be looking to pay the bank note or the bond issuance with, and that would be with storm water assessments and the $0.50 cents on the parking that the Board approved in a resolution to set aside $0.25 cents for infrastructure and $0.25 cents to pay down the debt. The Board could change the resolution to pledge the $.50 cents toward the debt issuance and that would be about $400,000. The Board could move forward with the project without looking at the millage rate as an option to utilize in funding the capital infrastructure investment. Director Pierce explained that the existing Bond debt is only about 2 to 2-1/2 percent, which is lower than 3 to 3-1/2 percent interest rates being looked at now. It would make more since to pay down the higher interest rate debt with the $0.50 cents, than the existing lower interest rate debt. February 25, 2019, BOC Special Meeting Minutes Page 5 oflO The City Manager said staff would like to move forward with bringing back a funding package to the Board that addresses all the roadway infrastructure projects articulated in the memorandum, and explained the option of receiving money from the water management district, which reduced the money needed to pay back the debt issuance. Commissioner Hodges stressed concern that the City would be paying twice for the road because it would be tom up in 2 to 2-1/2 years. It will cost $250,000 now and more in two years. Mayor Black opened to public comment. Chuck Lambert, 565 Crystal Drive, commented that the roads on Crystal Island needed work and now. They do not need more false promises. Mark McCleamon, 535 Lillian Drive, told the repairs done on Crystal about 15 years ago and the bad experience with that on the north side of that road. He said he had 45 years' experience in large construction and there were two major failures with pervious paving. Steve Kochick, 15301 2nd Street East., thanked Commissioner Hodges and said that the election is about two weeks away and suddenly everything will be fixed in two weeks. The former city manager, Shane Crawford had a plan laid out for the projects. SWFWMD had already been in the loop for a couple of the past projects and was ready for the next project coming up, but the current Board failed to continue the projects, which might have lost the continuity with SWFWMD. Now, it is costing an additional 15% per year and an additional $2 million to the project. Marvin Merrill, 581 Crystal Drive, thanked Commissioner Douthirt for the action he had taken. They have waited about six years to get something done and the actions taken by Commissioner Douthirt helped get something done in Crystal Island. Chuck Dillon, Lillian Drive, commented that he worked in road construction and pervious pavement was not for Florida. It will not prevent flooding and keep the water off the roads or streets. The roads had not been done in 32 years and the $7.5 million project was a waste of money. Guy Critelli, 13025 Pelican Lane, said he worked with pervious concrete for over 50 years in a concrete business and said that the Board should consider the price of pervious concrete and regular black top before deciding, because pervious concrete costs twice as much. Water will not penetrate through pervious concrete and he would vote against it. Ms. Watenpaugh, 576 Crystal Drive, said when looking to purchase a home in Madeira Beach the former city manager, Shane Crawford assured them that the road work would be done in 2014 and showed them the $4 million in the budget to do that. That work had not happened, and promises should be kept. She said the cul-de-sac at the end of Crystal Drive also needed to be done because it was in dire need of repair due to big trucks turning around there. Ginger Tolliver, 814 Bay Point Drive, commented that everyone needed to work together on the Board. There was funding to do the undergrounding utilities on Gulf Blvd. and the current Board dropped the project and caused the funding to go back where it came from. February 25, 2019, BOC Special Meeting Minutes Page 6 oflO Mayor Black closed to public comment. The City Manager said as they go through the exploratory stage of the project, they would explore all options to determine the most suitable and most appropriate type of technology needed. A portion of Boca Ciega is pervious pavement and the other portion is traditional asphalt. They do not want to put something in place that does not work and to regret it later, and to just try and obtain money. The City Manager explained that there was a lot of work and discussion to take place before Board consideration. Commissioner Douthirt made a motion to move forward with the roadway project funding and all auxiliary road projects requested to acquire the estimated $15 million in infrastructure funding. He added to the motion that they get something from Mr. Al Carrier explaining the difference between cement versus pervious concrete, the pros and cons of both, and which way they should go. Commissioner Hodges said a lot of people would be upset that the roads will be paid for twice, but it was hard to please everybody. She seconded the motion. ROLL CALL: Commissioner Douthirt "YES" Commissioner Hodges "YES" Mayor Black "YES" The motion carried 3-0. B. Purchase of Sanitation Trucks and Containers - Jonathan Evans, City Manager City Manager Jonathan Evans reviewed the item. Mayor Black asked why the surprise to the Board and why they were not told ahead of time. The City Manager explained they could not get the sanitation truck through the Enterprise lease agreement. When meeting with the management staff at public works, the sanitation supervisor communicated the series of needed repairs made to a certain vehicle in the fleet. There are concerns about the down time of postponing the purchase of the vehicle, because it is inoperable. It would be better to surplus and remove the vehicle from the fleet. Commissioner Douthirt asked the amount of money that had been spent in repair and maintenance to the vehicle. The City Manager said he would provide the information to the Board via email. Mayor Black opened public comment. There was no public comment. Commissioner Douthirt said if the vehicle is truly breaking down, costing a lot of money, and it is a safety hazard, he makes the motion to purchase the sanitation trucks and containers. Commissioner Hodges seconded the motion. February 25, 2019, BOC Special Meeting Minutes Page 7 of 10 Commissioner Douthirt said he would like to see those numbers. The City Manager said he will send it. ROLL CALL: Commissioner Douthirt "YES" Commissioner Hodges "YES" Mayor Black "YES" The motion carried 3-0. C. Authorization to Purchase a Backup Generator for City Hall - Jonathan Evans, City Manager The City Manager reviewed the item. Commissioner Douthirt asked if the generator could be purchased and installed by hurricane season. The City Manager said they hoped by June 1. Mayor Black opened to public comment. Steve Kochick, 15301 2nd Street East., commented against purchasing a generator. Director Pierce said the FEMA reimbursement money was starting to come in. The City Manager explained there were restrictions on how the money could be utilized. Guy Critelli, 13025 Pelican Lane, suggested purchasing solar panels instead. Laurie Tyner, 4996 Miramar Drive, asked if City Hall would be operating at its max with a generator. The City Manager explained that most components would be operational. ChiefO'Neal commented that they were in an agreement with what would be needed to power-up City Hall. As far as evacuating the area, the Fire Department will stay open. There is emergency power at the Fire Station. About 20% to 25% of the citizens will not leave town during an evacuation and the Fire Department will not leave them. Mayor Black closed to public comment. Commissioner Douthirt made a motion to authorize the purchase of a backup generator for City Hall. Commissioner Hodges seconded the motion. ROLL CALL: Commissioner Douthirt "YES" Commissioner Hodges "NO" Mayor Black "YES" February 25, 2019, BOC Special Meeting Minutes Page 8 oflO  The motion failed 2-1. D. Miscellaneous Construction Project Funding Request -Jonathan Evans, City Manager & Al Carrier, Deuel & Associates Commissioner Douthirt recommended placing the item on the next meeting due to lack of information. The City Manager reviewed the item and said some of the projects were in desperate need of attention. Al Carrier, Deuel and Associates, said the focus is to take care of the Parsley Avenue emergency storm water project. The engineers estimated the price to be $180,000. The bid came in over $300,000 and the City rejected the bid. Steve's Excavating is now working on the 137th Avenue Circle project. They agreed to hold their same prices as with the 137th Avenue Circle project. Mayor Black opened to public comment. Roger Pryor, 223 144th Avenue, said if the cleanouts of the drains are done this time, the residents would like for the contractor or the City to notify them in advance to make them aware of the project. Mayor Black closed to public comment. Commissioner Hodges made a motion to proceed with the construction project authorization for the miscellaneous work throughout the City. There was no response for a second to the motion. City Attorney Ralf Brookes explained that there needed to be a second to the motion for passage and with three votes, per City Charter. The prior item might need to be revisited because the Commissioner that seconded the motion voted against it, so that item did not pass. Commissioner Hodges said she was not changing her vote on the generator. Commissioner Douthirt seconded the motion with the stipulation that they do not go over $270,000 for all projects concerned and not go one penny over. Director Pierce said from a budget standpoint, he agrees with the City Manager and Al Carrier. The longer they waited on some of the projects, the cost will continue to go up, and that is troubling. Commissioner Douthirt said the total for all the projects could not exceed $270,000. ROLL CALL: Commissioner Douthirt "YES" Commissioner Hodges "YES" Mayor Black "YES" February 25, 2019, BOC Special Meeting Minutes Page 9 oflO  The motion caiTied 3-0. 5. ADJOURNMENT Mayor Black adjourned the meeting at 7:43 p.m. ATTEST: Clara Va February 25 , 2019, BOC Special Meeting M inutes Page 10 of 10