Board of Commissioners Workshop Meeting

MINUTES BOARD OF COMMISSIONERS WORKSHOP MEETING FEBRUARY 21, 2019 2:00 P.M. A workshop meeting of the City of Madeira Beach Board of Commissioners was held at 2:00 p.m. on February 2 1, 2019 in the Patricia Shontz Commission Chambers at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida. MEMBERS PRESENT: Maggi Black, Mayor Deby Weinstein, Vice-Mayor/Commissioner District 1 Nancy Hodges, Commissioner District 2 Commissioner District 3 - Vacant John Douthi11, Commissioner District 4 MEMBERS ABSENT: CITY STAFF PRESENT: Jonathan Evans, C ity Manager Andrea Gamble, Deputy Clerk Mathew McConnell, City Attorney 1. CALL TO ORDER Mayor Black called the meeting to order at 2:00 p.m. 2. ROLL CALL Deputy Clerk Andrea Gamble called the roll. 3. PUBLIC COMMENT Missy Hahn, Treasure Island and Madeira Beach Chamber of Commerce, reminded everyone of the Candidate Forum on Tuesday, February 26, 20 19 at 6:30 p.m. 4. TOPICS FOR DISCUSSION A. Seafood Festival Update - Jay Hatch, Recreation Director and Sonny Flynn, John 's Pass Village Merchants Association Recreation Director Jay Hatch provided an update on the Seafood Festival event. He said that on August 20, 20 18, the Board approved a contract w ith the John' s Pass Village Association for the 20 18 John' s Pass Seafood Festival. As of December 12, 2018, the eight items listed in the contract required to be completed, including following the City's February 2 1, 201 9, BOC Regular Workshop Meeting Page 1 of 10  ordinances, have been completed. The final payment from John's Pass Seafood Festival to cover the remainder of the hard costs related to the event has been received. Director Hatch and City Manager Jonathan Evans responded to questions and concerns made by the Board. Director Hatch explained the costs that were paid by John's Pass Village Association as required in the contract. The City Manager said they do not regulate or manage who an event contributes to that the City has a contract with. The event organizers have sole discretion over the money received from the event. He explained that the waiver of the fees the City provides associated with the parking is the City's contribution for being listed as a sponsor. B. Seafood Festival Proposed Agreement - Jonathan Evans, City Manager City Manager Jonathan Evans reviewed Agenda Item 4. B. He said the item is to seek Board direction on a proposed contract with additions and modifications to the previous contract that was executed between the City of Madeira Beach and John's Pass Merchants Association. On Monday, October 5, 2018, the Board passed Resolution 2018-19, memorializing the City's commitment to and assisting the John's Pass Seafood Festival in continuing in the community in perpetuity. The City has traditionally waived the parking in exchange for sponsorship of the event. The City charged the hard costs directly associated with the event to the event organizer. Last year, the costs were $6,230.25 in direct costs and the City benefited from a revenue sharing on the parking that contributed $1,127 to the City. In 2017, the City received a contribution of$1,500 because ofthe shared parking arrangement. In addition, the City generated about $2,884.34 during the period between October 24 and October 28, 2018. The event organizers would like to entertain a modification to the contract whereby the City of Madeira Beach will retain exclusive rights and the provider of parking. The City will not be waiving parking. He said if the Board would like to move forward with providing parking for the event for a charge that they needed to amend the fee ordinance to provide for festival or event parking and charge a different rate as part of the festivities and activities occurring. In return, the City will not levy any fees associated with the City's hard costs not to exceed $8,500. The Seafood Festival is a major economic and tourism driver within the City of Madeira Beach, and it is a great opportunity for the City. Revenues collected from the event go into the General Fund and is utilized for other general services. The City would be listed as a title sponsor with top billing and be introduced on all marketing collateral. Incorporated in the contract, since the City would be the entity responsible for the parking, the City would absorb the costs associated with law enforcement for traffic control, safety, and perimeter control. John's Pass Village Merchants Association will incur costs exclusively for event security protecting the property of the vendors, patrons, and equipment. If the Board is agreeable to the amendments, they would move forward with a one-year agreement for the 2019 Seafood Festival. The City Manager and Director Hatch responded to questions and concerns of the Board. Following discussion, the City Manager said there are two items that seemed to be a point of contention and those are law enforcement costs and some alternative arrangement February 21, 2019, BOC Regular Workshop Meeting Page 2 oflO  whereby the vendors utilize an offsite area for parking. He asked if there was direction from the Board to address the law enforcement element and the offsite parking or the vendor parking fee and then to look at incorporating some additional historic aspects of the community and bring back something to the Board for consideration. Mayor Black opened to public comment. Steve Kochick, 15301 2nd Street East, said law enforcement costs continue to increase and asked if the City could look into using a private security company at a lower cost. The Seafood Festival would soon not be able to pay for law enforcement because they are paid overtime and there are other increasing law enforcement costs involved. The City Manager explained why the Sheriffs Department highly opposed to utilizing a private security company. J. Roger Pryor, 223 144th Avenue, said he did not see a single point of contact for the Seafood Festival with the City. He suggested making Director Hatch the liaison between the City and the Seafood Festival so they could quiz one person instead of the whole panel. Kathleen McDowell, Fisherman's Restaurant, 150 129th Avenue West, said she has been to many seafood festivals and the police officers are needed at the events. C. John's Pass Village - Landscape and Hardscape Redesign - Al Carrier, Deuel & Associates City Manager Jonathan Evans explained how they would like to spruce up John's Pass Village to create a sense of place and destination since it is the hub of commerce in the community. Al Carrier, Deuel & Associates, introduced Chris Anuszkiewicz with PlaceMaker Design Studios, who presented a PowerPoint presentation showing an overview of some of the benefits with urban designs and how it would apply to the village. The designs included pavement designs, site lighting, sea walls, benches, bike racks, trash receptacles and landscape elements. The City Manager said it would be an opportunity to create that sense of place and to elevate the planter beds, create additional seating and to really change the feel for the tourists. He said staff would like to get more input and more feedback from the public to see if the Board would be in favor of that type of concept and investment. The City Manager and Mr. Anuszkiewicz responded to questions and comments from the Board. Following comment, the City Manager said he would like the opportunity to select what theme and color utilizing the surrounding area to make it fit into John's Pass and to decide February 21, 2019, BOC Regular Workshop Meeting Page 3 oflO  on the maintenance because it is City property. He asked for direction to move forward and bring back some visuals. The Board consented. The Mayor opened to public comment and there were no public comments. D. Marina Corrective Action Plan - Jonathan Evans, City Manager City Manager Jonathan Evans said pursuant to the findings contained in the Carr, Riggs & Ingram forensic audit conducted on the Municipal Mariana, there were 25 findings provided to the City to address. There have been continued discussions with the marina staff since the findings. He asked the Board if they would like to separate the mariana operation from the Public Works operation. He explained the value in keeping the positions together by having somebody that has the skill set and the certification of a professional Engineer since the City has a lot of capital projects. Having the skill set in-house is a tremendous benefit to the organization. He would like to proceed forward with the position as budgeted and advertised and explained why he would like a certified credentialed public accountant to serve as Senior Fiscal Accountant at the marina. Having that person on staff would be a tremendous benefit to the organization and a benefit costs wise versus having a department head. It would help in putting forward some internal controls and processes so they can continue to ensure they are spending the City's funds judiciously. The City Manager explained that the marina is a $2.6 million Enterprise Fund and should be ran like a business with no General Fund subsidies occurring as part of an Enterprise Fund operation. The new person will assist in all the Enterprise Fund operations and be paid for by the Enterprise Funds and not by the General Fund. The City Manager addressed the following 25 internal control recommendations as stated in the memorandum: 1. System Passwords - City staff now allows for one individual to access the two systems, resulting in no need to provide additional codes for additional staff, as any modifications or alterations to the system would be specific to one system user. 2. Dual Books - This is no longer in practice; city staff has been granted access to the accounting software and cross-verification has taken effect between finance and marina staff to ensure compliance. 3. Gate Codes - The gate codes will be modified, transit slips will be provided with their own passwords that will vary monthly, and long-term leases will require another password. Staff is exploring additional technology that will require each individual owner to have a specific passcode exclusive to their lease agreement and placement at the Municipal Marina. Staff is also researching the cost of a license plate reader to ensure appropriate security (namely, that individuals accessing the Marina are accessing the right vessels), thus minimizing opportunities for theft. 4. Surveillance Cameras - Staff is exploring the costs of more intuitive and modem security cameras; the cost is projected to be $30,000-$80,000 range. New camera software setup will have access capability to City Hall. These cameras will be capable of monitoring via mobile device and will have motion sensor components that alert staff if certain areas of the Marina are accessed. Also, patrons could subscribe to a February 21, 2019, BOC Regular Workshop Meeting Page 4 oflO  service that allows them to view their vessel remotely for a fee because of the new technology. 5. Gate Access - Gate security has been addressed; public works staff is ensuring that the gate is closed nightly at the specified times. Also, staff is exploring opportunities with the adjacent redevelopment to automate some of these functions to ensure compliance. Furthermore, the public works site needs some reconfiguration; staff is working with city contracted engineer, PE, PSM to assist with this modification. 6. Marina Agreements - The finance department and staff have furnished the existing agreements for modification and clarification. All agreements will be available online, and the staff hope to be able to access agreements via a mobile device to reconcile leases and appropriate rental spots. These revised agreements will be proper to all tenants at the Marina once they are completed by the city attorney and reviewed by staff. 7. Closing Books - Finance department and marina staff have begun the process of complying with the recommendation to close out the marina books at the end of every month. Needed changes to the marina software system are currently being identified to accomplish this recommendation. 8. Dry Storage Spaces and Numbering- Staff has proceeded with numbering spots in a more definitive manner; however, staff is exploring the cost of restriping and repositioning vessels once the Marina entranceway is modified. Staff is putting additional systems into place to utilize new and available technology in ensuring accurate counts and the placement of vessels. 9. Wet Slip Numbering and Availability - Staff members have numbered the wet slips and are looking into putting additional signage on A-Dock so that slips are properly marked and identifiable. Unusable slips will be roped off and placards will identify these spots as unusable. 10. Customer Invoice Reviews - A three-party verification system is currently in place, with the marina staff and finance staff reviewing the invoices; the accounting manager is the final party to review the invoices for accuracy and consistency. This transactional list will be presented monthly and reviewed by all appropriate parties. 11. Late Fee Assessments - The finance director issued a letter communicating that as of March 1, 2019, late fees will be assessed on the 15th, and there will be no waiver of fees. Late fees will occur on the 15th of every month and will be audited periodically by staff to ensure collection rates remain in the 90th percentile. 12. Transient Rental Rates - Programmatic changes have been made and cross- verification will ensure that underbilling/overbilling does not occur. In the past, there have been program and human errors that have resulted in this deficiency, and staff is looking at software upgrades to mitigate this particular issue. Manual staff manipulation is discouraged. 13. Periodic Physical Counts - Physical counts on all inventory will occur twice a year at minimum, and inventory that possesses a longer shelf life or is not popular will be purged from the inventory list. 14. Fuel Delivery Confirmation - Two-person verification is required for fuel deliveries, and staff is reconciling fuel inventory numbers prior to the daily commencement of activities and at the close of daily activities. 15. Fuel Inventory and Fuel Inventory Reconciliation - Daily reconciliation is occurring, with fuel used being calculated prior to the commencement of activities in the morning and at the close of business every evening. The reconciliations are to be February 21, 2019, BOC Regular Workshop Meeting Page 5 ofl0  reviewed by the finance department to ensure that there are no discrepancies; any discrepancies must be documented and accounted for immediately. A dip stick log has been created and a once a week reading procedure established by the finance department. 16. Fuel Invoices and Quotations - The fuel invoices and quotations provided for verbally are now provided for in writing as well. Staff then secures the lowest-priced and most accessible fuel to ensure optimal profit margins. Furthermore, it is important to note that fuel prices fluctuate very frequently; staff is always instructed to find the most competitive price. Supply and demand play a significant role in this matter, but staff is ensuring appropriate procurement processes are followed. 17. Fuel Pump - City staff has reached out to the vendor of the fuel pumps and is looking at alternative technology options to place a hold on credit cards, ensuring fulfillment of all revenue opportunities. Staff has attempted to address this issue in the past, but vendors and manufacturers have had difficulty remedying this issue. Our software vendor has communicated that there may be some alternative options at our disposal. 18. Fuel Discounts - Fuel discounts will only be offered consistent with Ordinance 2018- 03 (Fee Ordinance); no discounts above what is proffered in the ordinance will be permitted or granted. 19. Inter-fund Transfers - The finance department will ensure that the appropriate documentation is executed to facilitate inter-fund transfers and that the appropriate fund and/or department is charged for any transaction related to city business. 20. Sales on Account - All transactions are to be recorded to the city's point-of-sale system. No transactions are to occur without appropriate documentation for goods or services sold or rendered. 21. Boat Launch Receipts - City staff is reviewing the vessels and apparatus on the site and confirming that payment is current, and all items are properly accounted for daily. Staff is closely monitoring the boat launch to ensure compliance with the audit findings. 22. Purchase Orders - Two-party verification is occurring concerning this matter, and the finance department is in the process of assembling a task force to modify the city's existing procurement policies to better align with the way the city conducts business. The existing policy is dated and provides inefficient ways of procuring goods and services. However, the modifications will not jeopardize the overall fiscal responsibilities required and will have better safeguards to ensure compliance and accuracy. 23. Ship Store Sales and Inventory - City staff is currently exploring technology advancements to institute a software system that can be interfaced with the city's financial software and point-of-sale system. This will also assist in the manual input and tracking of inventory as well as reordering items based on supply and demand. 24. Inventory Counts - Inventory accounts will be done at least twice every six months and more frequently if determined by the city administration or the finance department. 25. Employee Purchases - There are no discounts currently provided to any employee outside of discounts consistent with Ordinance 2018-03 (Fee Ordinance). Employees must be eligible based on the criteria communicated in the ordinance; no discounts on merchandise or other marina-related activities are permitted. The City Manager said that in review of the audit, the most pressing concerns and issues are related to technological advances that must occur to bring the marina operations into the 21st century. Addressing these issues requires a multifaceted approach to technology February 21, 2019, BOC Regular Workshop Meeting Page 6 of 10  advancements, additional personnel, site design and layout, physical security, and personnel training. He explained as follows: • Technology advancements - Substantial investments in technology are required to ensure compliance and accuracy related to the marina operations. • Additional personnel - There is a need for additional part-time personnel to allow the existing staff and the marina manager to plan for future growth and manage the existing property without being pulled in multiple directions. These additional personnel will also assist in evenings and on weekdays, allowing the more seasoned staff to be available during our peak opportunities. • Site design and layout - The existing site is in desperate need of reconfiguration; the staff recommends that we consider reviewing the existing site plans for options to improve the site functionally and cosmetically. Being that this property is a vital piece of the city, the aesthetics must improve if a substantial economic development is to occur in close proximity to the site. • Physical security - To minimize the opportunities for improprieties or access to the city's Marina as part of a site plan design, security must be addressed, especially considering there are millions of dollars' worth of assets residing on municipal property. The safety and security of the site must be a major priority for this organization moving forward. • Personnel training - Personnel training is an important element to ensure that staff continues to develop and broaden their expertise in the marina industry. As this industry is very competitive, it is critically important that staff is encouraged, and training opportunities are funded to continue the professional maturation of employees at the Marina. The City Manager explained the fiscal impact. If proceeding forward with some of the changes it is anticipated that the costs would be $250,000-$275,000, of which $125,000 would be recurring costs associated with marina operations. If looking to add a part-time person and the Senior Fiscal Accountant, and then the other is the one-time capital expenditures that would be necessary to incorporate some of the technology associated with that. The marina has the Fund Balance necessary to support the changes. Staff recommends that the Board accept the Corrective Action Plan, proceed with obtaining the appropriate funding to cure the issues identified in the plan to make the necessary corrections, and bring back to the Board the items for authorization to proceed. The City Manager and Director Pierce responded to questions and concerns made by the Board. Following discussion, Mayor Black asked for a consensus. The Board consented. Mayor Black opened to public comment. Steve Kochick, 15301 2nd Street, commented that the Finance Department is responsible for everything and if the City needed help there, then hire someone for that to keep it centralized. It is important to hire someone at the marina that is marina oriented than February 21, 2019, BOC Regular Workshop Meeting Page 7 oflO  financially oriented. He said that instead of adding fiber optic cable at City Hall, it should be throughout the City. Rees Noren, 363 Medallion Blvd., commented that the City did not request an audit the City requested an inquiry and it was called a forensic examination by the company that performed it. E. Impact Fee Updates - Linda Portal, Community Development Director City Manager Jonathan Evans reviewed Agenda Item 4. E. He explained that the Board has discussed the need for impact fees on development. Through an interlocal Agreement the Board can address that. There is a requirement per statutes to go through a process analysis before levying impact fees on development and things of that nature. He said the representative present will share with the Board what the interlocal agreement calls for and how they can assist in getting the City to where the Board has expressed its interests. Community Development Director Linda Portal explained that the interlocal agreement allows assistance in what they needed to do, it saves staff a lot of time and work, and it allows staff to work with very highly qualified people on very much needed projects. It is important to have a broad interlocal agreement in place. Chapter 163 of the Florida Statutes requires a study to be in place to validate or verify what the needs are and to set the appropriate rates. There are criteria for managing the impact fee program. Staff recommends entering into the interlocal agreement with FRCI and proceeding to secure a specific project proposal and cost for completion of the impact fee and rate study and establishment of procedures for collecting impact fees on new development. Director Portal introduced Jerry Murphy, Director of FRCI from the University of Florida Resilient Communities Initiative, who responded to questions and comments from the Board regarding the interlocal agreement and impact fees. He explained that the county's impact fee is for the impacts on the county's services. The City would be looking at something more on the lines of the mobility fee just within the City limits and the impacts that are brought into the City itself. The City can have its own Citywide impact fees. Director Portal explained that there are additional service impact fees the City could be charging for development. The City Manager said one of the things that will be considered as part of the engagement is recreation impact fees and fire impact fees. If there is a need for additional investments to address the increased capacity and the development impact causes that to happen, the City can utilize those monies to offset the costs associated with the increased level of service. Director Portal said they also needed to amend the comprehensive plan to create a mobility element to support the collection of fees for mobility issues. Mobility can include more than roadway improvements, sidewalks and crossovers. Commissioner Douthirt asked if they could put in the contract that John's Pass Village would be required to help with the costs and expenses of the beautification and changes, they would like done there. Director Portal explained if they had a mobility element in February 21, 2019, BOC Regular Workshop Meeting Page 8 of 10  place and all the fees lined up in an impact fee schedule and the development came in, they could require that. Mr. Murphy explained that without the impact fee, the tax payers would be paying for what the developments and businesses are causing. How long it would take, would depend a lot on policy in terms of what services the City would like to see examined under the studies to recapture whatever impacts it can. There are about 12 different impact fees throughout the nation. Mayor Black commented in favor. Commissioner Douthirt said he was in favor and then left the meeting to attend a 5:00 p.m. engagement. The Board consented to going forward. Mayor Black opened to public comment and there were no public comments made. F. Madeira Way Updates-Jonathan Evans, City Manager City Manager Jonathan Evans reviewed Agenda Item 4. F. He explained that back in November or December the Board eliminated approximately $73,582 that was previously earmarked to address the landscape and hardscape deficiencies present on Madeira Way. The roadway is part of a PD that the City of Madeira Beach executed for the Town Center development and is anticipated to be completely redesigned and re-engineered consistent with the items that were communicated in that agreement. Staff seeks direction from the Board to determine how it wished to proceed. Director Portal explained there is redevelopment underway on the comer of Madeira Way and 150th Avenue, the first building for the Town Center is going up. It is going to necessitate them making interim modifications to Madeira Way to allow for access. As part the of the development agreement, she, as Community Development Director, had the developers not make all the changes to Madeira Way as soon as development began on the street, which would have been an significant hindrance to the conduct of business along Madeira Way and the existing shops on Madeira Way. She can set a different schedule for phasing the roadway improvement and it was her recommendation that they not make the full changes on Madeira Way until they were prepared to deal with the large triangular piece that has hotel B as part of its component. In the meantime, as hotel A is being built, they need an interim transportation mobility plan to be put into place to direct the pedestrian traffic further away from the construction site for their safety and block off the outside lane closest to the development for most of the development period. They must come back to the City with a specific design to alter the median at that end of Madeira Way to allow for access into the hotel as it is completed. Anything being put in now is temporary. Vice-Mayor Weinstein commenteithat_she-had a_lot of respect for the businesses there, but she was not in favor of experu:fing any efforts or the money at this time to make the beautification changes. She is not fur any project down there. February 21, 2019, BOC Regular Workshop Meeting Page 9 oflO  Mayor Black suggested spending at least $5,000 to put in lighting there and purchase some flowers from Home Depot to plant between the greenery. That wi ll make a big difference with very little money. Commissioner Hodges said the idea is good, but the timing is wrong because what is planted will only be temporary. The City Manager said they could look at some diffe rent options and work with the developer to get them where they needed to be. Mayor Black opened to public comment. Lauree Tyner, 4996 Miramar Drive, commented that landscaping or something is needed there. Steve Kochick, 15301 2 nd Street East, suggested putting a sign there showing what the project will be after it is completed. He agreed with the Mayor in spending $5,000 to keep the appearance up and said that 150th Avenue looks good compared to other places in Florida he has visited. There needs to be a requirement for a sprinkler system on 150th as part of the project. The City Manager said he had an opportunity to discuss with the Recreation Director off line and he reached out to Ms. Flynn, and she is amenable to the Seafood Festival absorbing the cost associated with law enforcement for they have traditionally absorbed that cost. She has already put in the mind of the vendors that there will be no vendor parking. We could put together a contract requiring a fee for vendor parking if they park there or requiring vendor parking to be at the school or Winn Dixie. If that is something that the Board is amendable to, staff would like to move forward with drafting an agreement for consideration to bring back. The Board consented. 5. ADJOURNMENT Mayor Black adjourned the meeting at 4:56 p.m. ATTEST: February 2 1, 20 19, BOC Regular Workshop Meeting Page 10 of 10