City Council

City of Marco Island Florida 51 Bald Eagle Drive Marco Island, Florida cityofmarcoisland.com Meeting Minutes - Final Monday, September 21, 2015 5:30 PM Community Meeting Room City Council Chairman: Larry Sacher City Council: Joe Batte, Bob Brown, Ken Honecker, Larry Honig, Amadeo R. Petricca, and Victor Rios City Manager: Roger Hernstadt City Clerk: Laura Litzan - City Attorney: Alan Gabriel City Council Meeting Minutes - Final September 21, 2015 1. Call to Order 2. Roll Call Present: 7- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca, Chairman Sacher and Councilor Rios Absent: 0 Also Present Roger T. Hernstadt, City Manager Laura Litzan, City Clerk Alan L. Gabriel, City Attorney Mike Murphy, Fire Chief Al Schettino, Police Chief Guillermo Polanco, Director of Finance Robert Lange, Budget Manager Tami Scott, Zoning Administrator-Growth Management Tim Pinter, Director of Public Works Jeff Poteet, General Manager-Water & Sewer Lina Upham, Purchasing & Fiscal Analyst Mindy Gordon, Recreation Program Manager Mark Jackson, Director of Information Technology Lisa Smith, Recording Clerk Citizens and Visitors 3. Invocation - Led by Father Tim Navin of San Marco Catholic Church Chairman Sacher asked for a special prayer for Monte Lazarus, a long time resident who has dedicated his life into making Marco Island a better place. 4. Pledge of Allegiance - Led by Councilor Batte 5. Approval of agenda and consent agenda Chairman Sacher requested a change in the order of the agenda to move the budget ordinances (Item 8C) to the first item of business before Section 6. He also asked to bypass the reading of the departmental reports unless a Councilor has a specific question. Councilor Honig questioned why "Council Communications" was omitted from the agenda. The City Manager advised is was an error. Council agreed by consensus to place "Council Communications" after the budget ordinance and before the City Manager's report. Council Honig asked why the minutes from the September 11, 2015 Special Called Session were not included. City Clerk Laura Litzan explained that they will be in the next Agenda for approval. Councilor Honig requested to remove Item 12-C (Resolution to Approve a Local Agency Program Agreement with the Florida Department of Transportation for the Construction of Bike Lanes on Landmark Street) from the Consent Agenda. City of Marco Island Florida Page 1 City Council Meeting Minutes - Final September 21, 2015 Motion by Councilor Honig, seconded by Councilor Rios, to remove items 11-C (Ordinance - First Reading - Amending Ordinance No. 2003-19, the existing Utility Methodology and implementing a new Utility Rate Schedule) and 12-A (Resolution Amending Exhibit "A" Utility Rate Schedule to Ordinance 2003-19) from today's agenda. MOTION FAILED BY THE FOLLOWING VOTE: Yes: 2- Councilor Honig and Councilor Rios No: 5- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher MOTION by Vice-Chair Brown, seconded by Councilor Batte, to defer Item 11-C (Ordinance - first reading - Amending Ordinance No. 2003-19, the existing Utility Methodology and implementing a new Utility Rate Schedule) to the October 5, 2015 City Council meeting. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 4- Councilor Batte, Vice-Chair Brown, Councilor Honig and Councilor Petricca No: 3- Councilor Honecker, Chairman Sacher and Councilor Rios MOTION by Vice-Chair Brown, seconded by Councilor Batte, to approve the Agenda and Consent Agenda as amended. MOTION FAILED BY THE FOLLOWING VOTE: Yes: 3- Councilor Batte, Vice-Chair Brown and Chairman Sacher No: 4- Councilor Honecker, Councilor Honig, Councilor Petricca and Councilor Rios MOTION by Vice-Chair Brown, seconded by Councilor Batte, to approve the Agenda and Consent Agenda as listed. There was no vote taken after this motion was made. MOTION by Councilor Honecker, seconded by Vice-Chair Brown, for Councilor Honecker to reconsider his earlier vote to approve the Agenda and Consent Agenda as amended. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 5- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher No: 2- Councilor Honig and Councilor Rios MOTION by Councilor Honecker, seconded by Vice-Chair Brown, to approve the Agenda and Consent Agenda as amended. MOTION CARRIED BY THE FOLLOWING VOTE: City of Marco Island Florida Page 2 City Council Meeting Minutes - Final September 21, 2015 Yes: 5- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher No: 2- Councilor Honig and Councilor Rios [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda.] (EDITORIAL NOTE: THE MILLAGE RATE AND BUDGET ORDINANCES WERE HEARD AS THE FIRST ITEM OF BUSINESS, BUT SHOWN IN THE MINUTES IN NUMERICAL SEQUENCE.) 6. City Council Items A. (*)Approval of Minutes 1. ID 15 -318 Approval of Council Workshop Minutes of September 9, 2015 2. ID 15 -70 Approval of Council Minutes of September 9, 2015 7. Citizens' comments on agenda items not scheduled for public hearing and items other than those appearing on the agenda. Mr. Craig Woodward, 606 Bald Eagle Drive, thanked Council for moving the Utility Rate Schedule to the October 5, 2015 meeting. His concerns are: causing dissension among the residents, conservation water rates, surcharges, North Marco Utilities, base rate and flow rate for water verses sewer, deduct meters and the plumbing. Council Communications and Discussion (per 2f) - 15 minute limit Councilor Rios is asking Council address the problem of alleyway parking. He suggested employees be issued a parking permit allowing them to park in the alley so that would free up spaces for patrons. Councilor Petricca had no comment. Vice-Chair Brown had no comment. Councilor Honig had no comment. Councilor Honecker deferred his time to the second opportunity to speak under Item 14 Council/City Manager Communications. Councilor Batte had no comment. Chairman Sacher also agrees with Councilor Rios that City Council needs to find a solution to the parking situation. THE MEETING WENT INTO RECESS AT 7:08 P.M. IT IS NOTED FOR THE RECORD THE SAME COUNCILORS WERE PRESENT WHEN THE MEETING RECONVENED AT 7:20 P.M. 8. City Manager's Report City of Marco Island Florida Page 3 City Council Meeting Minutes - Final September 21, 2015 A. Departmental Reports ID 15 -72 City Manager’s Report It was approved under the Agenda and Consent Agenda to bypass the Departmental Reports unless a Councilor had a specific question. Zoning Administrator/Growth Management - Tami Scott Parks Administrator/Facility Coordinator - Alex Galiana Director of Finance - Guillermo Polanco General Manager/Water & Sewer - Jeff Poteet B. Community Announcements The City Clerk Laura Litzan announced community events occurring September 21, 2015 through October 5, 2015. C. Budget Ordinances 1. ID 15 -324 Ordinance - Second Reading - FY2016 Adoption of Millage Rate Ordinance - City of Marco Island (Editorial History: City Council is requested to consider on second reading a total of four separate ordinances for the 2016 budget. This request outlines the first ordinance with the adoption of the millage rate for the City of Marco Island.) Director of Finance Guillermo Polanco read, by title only, an Ordinance determining and fixing the 2015 tax levy and millage rate for the City of Marco Island, exclusive of dependent taxing districts, for the fiscal year commencing October 1, 2015 and ending September 30, 2016 for the purpose of providing sufficient funds for the general fund operations and to pay interest on and provide for the retirement of debt approved by other referendum; providing for incorporation, conflict and severability and providing an effective date, and announced the following: 1.) The name of the principal taxing authority is the City of Marco Island, Florida. 2.) The current year aggregate rolled-back rate is 1.9984 mils. 3.) The change over the aggregate rolled-back rate is 7.27 percent. The millage rate to be levied is 2.0466 mils for City of Marco Island operations and 0.0953 mils for City voted debt service for a total of 2.1419 mils. 4.) The City has a dependent special district and the Board of Supervisors of the Hideaway Beach Special Taxing District has recommended a tax levy of 1.5000 mils for district operations. MOTION by Councilor Rios, to go back to the roll back rate. MOTION FAILED FOR LACK OF SECOND. Public Comment: Mr. Michael Barbush, 690 Palm Avenue Goodland Florida, thanked City Council for including funds for the Goodland Road project in their FY2016 budget. Mr. Jared Grifoni, 141 Leland Way, spoke in opposition of the proposed millage rate. Ms. A.K. Battaglia, 39 North Collier Boulevard, asked Council to reconsider their vote. City of Marco Island Florida Page 4 City Council Meeting Minutes - Final September 21, 2015 MOTION by Councilor Honecker, seconded by Vice-Chair Brown to approve FY2016 Adoption of Millage Rate Ordinance 15-21 on second reading. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 4- Councilor Batte, Vice-Chair Brown, Councilor Honecker and Chairman Sacher No: 3- Councilor Honig, Councilor Petricca and Councilor Rios 2. ID 15 -325 Ordinance - Second Reading - FY2016 Adoption of Budget Ordinance - City of Marco Island Director of Finance Guillermo Polanco read, by title only, an ordinance adopting the final budget for the City of Marco Island, exclusive of dependent taxing districts, for the fiscal year commencing October 1, 2015 and ending September 30, 2016; appropriating funds for operating expenses of the City of Marco Island for the general operation of the several departments of the City, including utilities, and for contributing to the sinking funds of the City to pay interest on and provide for the retirement of the outstanding bonds and other fixed obligations of the City for and during the fiscal year commencing October 1, 2015 and ending September 30, 2016, providing for budget control policies; providing for incorporation, conflict and severability; and providing an effective date. Public Comment: Mr. Gerald Swiacki, 667 Thrush Court, is working with the community to obtain their input on what amenities they would like to see at Veterans Community Park. Ms. Eileen Ward, 1142 Vernon Place, commended the City Manager on getting our debt under control. MOTION by Councilor Batte, seconded by Vice-Chair Brown, to approve FY2016 Adoption of Final Budget Ordinance 15-22 on second reading. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 5- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher No: 2- Councilor Honig and Councilor Rios 3. ID 15 -326 Ordinance - Second Reading - FY2016 Adoption of Millage Rate Ordinance - Hideaway Beach Special Taxing District Director of Finance Guillermo Polanco read, by title only, an ordinance determining and fixing the 2015 tax levy and millage rate for the Hideaway Beach special taxing district for the fiscal year commencing October 1, 2015 and ending September 30, 2016 for the purpose of providing sufficient funds for the operations of the special taxing district; providing for incorporation, conflict and severability; and providing an effective date, and announced the following: 1.) The name of the taxing authority is Hideaway Beach District. 2.) The current year rolled-back rate is 1.8524 mils. 3.) The Hideaway Beach District is a dependent special district of the City and the Board of the Hideaway Beach Special Taxing District has recommended a tax levy of 1.5 mils for district operations. Public Comment: None City of Marco Island Florida Page 5 City Council Meeting Minutes - Final September 21, 2015 MOTION by Vice-Chair Brown, seconded by Councilor Honig, to approve FY2016 Adoption of Millage Rate Ordinance 15-23 Hideaway Beach Special Taxing District on second reading. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 6- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca and Chairman Sacher No: 1- Councilor Rios 4. ID 15 -327 Ordinance - Second Reading - FY2016 Adoption of the Budget Ordinance - Hideaway Beach Special Taxing District Director of Finance Guillermo Polanco read, by title only, an ordinance adopting the final budget for the Hideaway Beach Special Taxing District for the fiscal year commencing October 1, 2015 and ending September 30, 2016; appropriating funds for operating expenses of the City of Marco Island for the general operations of the Hideaway Beach Special Taxing District, providing for budget control policies; providing for incorporation, conflict and severability; and providing an effective date. Public Comment: None MOTION by Vice-Chair Brown, seconded by Councilor Batte, to approve FY2016 Adoption of the Final Budget Ordinance 15-24 Hideaway Beach Special Taxing District. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 6- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca and Chairman Sacher No: 1- Councilor Rios 9. City Attorney's Report ID 15 -340 City Attorney’s Report City Attorney Alan Gabriel provided Council his report and was available to answer Council's questions and concerns. Councilor Rios is asking for clarification when is a document considered to be in draft status verses final status for public records. He also asked for an update on the Esplanade regarding the Riparian Rights. Councilor Honig questioned the Esplanade settlement, the City Attorney's budget, the utility rate notice, and what the council inquiry entailed. Councilor Honecker asked the Director of Finance when they were going to reclassify the insurance claims back into insurance covering them and get them out of legal so there is a true account of legal expenses. Councilor Petricca is requesting the Director of Finance to identify which ones are in the pending queue. 10. Quasi-Judicial Public Hearings: None 11. Ordinances City of Marco Island Florida Page 6 City Council Meeting Minutes - Final September 21, 2015 a. ID 15 -332 Ordinance - First Reading - Repeal of Ordinance 15-01, Short-Term Rental Housing (Editorial History: For the September 9, 2015 City Council meeting, Councilor Honecker submitted a white paper supporting the position that Council consider repealing Ordinance 15-01 related to short-term rental housing. The majority of Council (6-1) voted in the affirmative to direct staff to prepare an ordinance to repeal Ordinance 15-01.) The City Clerk Laura Litzan read, by title only, the repeal of Ordinance 15-01, short-term rental housing. Public Comment: Mr. Rudolph Landwaard, 573 Hernando Drive, would like the rental ordinance to go to referendum as originally voted on by Council. Mr. Howard Reed, 1065 Bald Eagle Drive, disputes the interpretation of the City Charter regarding the repeal of rental ordinance at this time. It is his opinion if this ordinance is passed tonight, it will not be legal and he questions the motivation behind the repeal. Ms. Eileen Ward, 1142 Vernon Place, commented on an article in the newspaper regarding the zoning laws that spell out what parts of the Island are allowed to rent their houses out as vacation rentals, either short-term or long-term. Mr. Ray Seward, 287 Rockhill Court, believes the public was not been properly informed when signing the petition opposing the rental ordinance and questions what is the will of the people. MOTION by Councilor Honecker, seconded by Councilor Petricca, to approve the repeal of Ordinance 15-01 on first reading. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 4- Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher No: 3- Councilor Batte, Councilor Honig and Councilor Rios b. ID 15 -333 Ordinance - Second Reading - Amending the Marco Island Firefighters’ Pension Plan providing for an increased Equity Asset Allocation from 50% to a maximum of 65%. (Editorial History: The Board of Trustees of the City of Marco Island Firefighters' Pension Plan has approved the recommendation of its independent financial consultant (Graystone Consulting) to increase the equity asset allocation from 50% to a maximum 65%, as the current 50%maximum equity exposure is too conservative to meet the Plan's actuarial investment assumptions over the long-term investment horizon. The ordinance has been reviewed by the actuarial firm of Gabriel Roeder Smith & Company (GRS). GRS has determined that the amendment will not have an actuarial impact on the cost of the Plan. This ordinance was approved on first reading by City Council on September 9, 2015.) The City Clerk Laura Litzan read, by title only, the ordinance amending the Marco Island Firefighters' Pension Plan providing for an increased equity asset allocation from 50% to 65%. City of Marco Island Florida Page 7 City Council Meeting Minutes - Final September 21, 2015 Public Comment: None MOTION by Vice-Chair Brown, seconded by Councilor Batte, to approve Ordinance 15-25 amending the Marco Island Firefighters' Pension Plan providing for an increased Equity Asset Allocation from 50% to a maximum of 65% on second reading. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 5- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Petricca and Chairman Sacher No: 2- Councilor Honig and Councilor Rios c. ID 15 -329 Ordinance - First Reading - Amending Ordinance No. 2003-19, the existing Utility Methodology and implementing a new Utility Rate Schedule attached as Exhibit “A”. This ordinance was deferred to the October 5, 2015 meeting. 12. Resolutions for Adoption a. ID 15 -322 Resolution Amending Exhibit “A” Utility Rate Schedule to Ordinance 2003-19. (Editorial History: As part of issuing the 2013 Bond Series to refinance the 2003 and 2008 Bond Series and release the restriction on the 2010B Bond Series Reserves, the City retained the services of Public Resources Management Group (PRMG) to conduct a Feasibility Study to be included in the Official Statement. In order to increase the Utility's debt service coverage ratio to 1.5 or better in the next 5 years, PRMG recommended an increase of 7 percent, comprised of 1.9 COLA and a 5.1 rate adjustment for the first year and additional COLA increases in subsequent years. On August 19, 2013 the City Council passed Resolution 13-16 stating the intent to increase rates as recommended by the Feasibility Study.) The City Clerk Laura Litzan read, by title only, Resolution 15.66. Director of Finance Guillermo Polanco advised the resolution would adopt the 2.1% increase scheduled to start November 1, 2015. The surcharge fees for the capacity related debt is slated to increase from 3% to 6% in fiscal year 2017 due to the increase in the amounts of principal per the amortization schedule. Public Comment: None MOTION by Vice-Chair Brown, seconded by Councilor Honig,to approve Resolution 15-66 amending Exhibit "A" utility rate schedule to Ordinance 2003-19. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 5- Councilor Batte, Vice-Chair Brown, Councilor Honig, Councilor Petricca and Chairman Sacher No: 2- Councilor Honecker and Councilor Rios b. ID 15 -330 Resolution to ratify the 3- Year Fire Fighter Union Collective Bargaining Agreement City of Marco Island Florida Page 8 City Council Meeting Minutes - Final September 21, 2015 (Editorial History: IAFF Local 2887 and the City of Marco Island have been in negotiations since June 8, 2014 and through the process they have reached a three year agreement. One of the major issues was the sharing of risk concerning pension. The Firefighters have agreed to share that risk as outlined in the attached agreement. Additionally, the CIty has offered a 2% merit bonus in FY16, a 2% merit bonus in FY17, and a 3% bonus to base pay in FY18. This offer was conceptually accepted by the Firefighters and a vote is scheduled to start on September 17, 2015.) The City Clerk Laura Litzan read, by title only, Resolution 15-68. The City Manager clarified the language in the contract regarding four items: Section 10-6.6 which specifies a $7000. partial overtime exemption of the Fair Labor Standards Act. That was removed from the agreement because it is already stated in federal law and not required, Article 28 dealing with retirement says the City"s contribution can be as low as 41% but the document reads 43.72 % so it will be changed to read the City's contribution will not exceed the 43.72 %, Section 28.2 pg 52 there was a strike out that took out the language that said all our employees or all our new employees are part of the section 175 pension plan. We are planning to continue the plan therefore any new employee would be apart of that, and the actuary asked us to allow the union while they are putting up their $432,000. and 5% to pay down any unanticipated expenses that the plan needs, they can do it through a smoothing process which was accepted. Public Comment: None MOTION by Councilor Rios, seconded by Councilor Petricca, to approve Resolution 15-68, ratification of the 3-year Fire Fighter Union Collective Bargaining Agreement. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 7- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca, Chairman Sacher and Councilor Rios c. ID 15 -323 Resolution to Approve a Local Agency Program (LAP) Agreement with the Florida Department of Transportation (FDOT) for the Construction of Bike Lanes on Landmark Street. (Editorial History: This resolution will authorize the City to execute a Local Agency Program (LAP) Agreement with the Florida Department of Transportation (FDOT) for the Landmark Street Bike Lane Project. The project consists of the installation of 4-foot wide paved and striped asphalt shoulders on both sides of the roadway along the entire project length of 1.1 miles from San Marco Road, south to Winterberry Drive on Landmark Street. FDOT has advised the City that it was eligible to receive a Transportation Grant in the amount of $260,276.00 to build this project. The City contributed $56,000.00 from the FY2015/2016 budget for the survey and design of this project.) City Clerk Laura Litzan read, by title only, Resolution 15-67. Public Comment: None MOTION by Councilor Honig, seconded by Councilor Rios, to approve Resolution 15-67 a Local Agency Program Agreement with the Florida Department of Transportation for the construction of bike lanes on Landmark Street. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 7- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca, Chairman Sacher and Councilor Rios City of Marco Island Florida Page 9 City Council Meeting Minutes - Final September 21, 2015 13. Citizens' Comments Mr. Dan High, 951 Bald Eagle Drive, representing Rose Marina, is asking Council to consider the water rates between residents and commercial businesses. He believes the rates should be left alone and asks Council to find other alternatives. Mr. Ray Seward, 287 Rockhill Court, advised the homeowners are paying twice the amount that businesses are. He wanted to remind everyone that we all work and live on the Island and we should all share the responsibility for the good of Marco Island. 14. Council / City Manager Communications (per 2g) Councilor Rios requested a discussion concerning LED lightening on a future agenda. It was agreed by majority of Council, with Councilor Honecker opposing. He will submit his position paper to the City Manager. He will speak to the City Manager regarding the parking situation. Chairman Sacher commented that he has met with Public Works Director Tim Pinter and is still working on his position paper concerning pavers in the sidewalk area. ID 15 -334 Fertilizer Ordinance Position Paper prepared by Councilor Petricca After a lengthy discussion amongst Council, it was agreed by majority 5-2 (Councilor Batte and Councilor Honecker opposed) to move the fertilizer ordinance forward. 15. Future Agenda ID 15 -319 Future Agenda Items Councilor Honecker is inquiring on what the proper procedure will be for the September 23, 2015 Workshop with the Raftelis consultant. 16. Adjournment There being no further business to come before City Council, the meeting adjourned at 8:58 P.M. ___________________________________ Larry Sacher, Council Chairman ATTEST: ____________________________________ Laura Litzan, City Clerk PREPARED BY: ____________________________________ Lisa Smith, Recording Clerk City of Marco Island Florida Page 10