REGULAR COUNCIL MEETING
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1 REGULAR COUNCIL MEETING A Regular Council Meeting was held on at 6:00 p.m. in the Meeting Room of the Zephyrhills Library. President Knight called the meeting to order. Roll call was taken. Present were members Ken Burgess, Kenneth Compton, Alan Knight, Lance Smith, Charlie Proctor, and Mayor Whitfield. City Manager Steve Spina and City Attorney Matthew Maggard were also present. Staff present: Police Chief Derek Brewer, Public Works Director Shane LeBlanc, Utilities Director John Bostic, Finance Director Brian Williams, Director of Planning Todd Vande Berg, Building Official Bill Burgess, Airport Manager Nathan Coleman, HR Director Sandra Amerson, CRA Director Gail Hamilton, IT Director Mike Panak, Assistant Planner Rodney Corriveau, Historic Preservation Officer/Grant Support Specialist Audrey McGuire, Fire Safety Inspector/Code Enforcement Officer Gene Brown, Code Enforcement Officer Joel Bacon, and City Clerk Lori Hillman. City of Zephyrhills employee Lucy Huber gave the Invocation. The Pledge of Allegiance followed. Ken Burgess moved the minutes of the October 9, 2017 Regular Meeting be approved. Seconded by Charlie Proctor. Motion passed unanimously. MAYOR ROTC Presentation Zephyrhills High School s Senior Army Instructor, First Sergeant McCauley introduced Company Commander Josie Wedge and Battalion Commander Heather Culp who narrated a PowerPoint presentation entitled, To Market Young People to Become Better Citizens. Ms. Wedge stated cadets will be sending care packages, referred to as bulldog bags, to the U.S. Army s Danger Company, 3 rd Platoon, in care of First Lieutenant Christopher Swonger. Ms. Wedge said ROTC Cadets are seeking sponsors to assist in funding to purchase supplies. Mr. Warren Earle donated $1,000 in support of the Zephyrhills ROTC Service Learning Project to purchase supplies for bulldog bags. Councilman Burgess said the ROTC Program is indicative of the type of students providing quality projects at Zephyrhills High School. Councilman Proctor said his son has been serving in the U.S. Air Force for seven years, has been deployed to Afghanistan and is stationed at Andrews Air Force Base. He said his son will be deployed to South Korea in April 2018 for ten months and hopes to be stationed in Tampa upon his return.. City Manager Dr. Spina said his nephew is serving in the U.S. Army and was promoted to Lieutenant Colonel. He said his nephew has served two tours in Iraq including a tour as an Army doctor. He is currently serving in an educational program in Philadelphia working with children suffering from child abuse. Dr. Spina complimented Company Commander Josie Wedge and Battalion Commander Heather Culp on their presentation and maturity, he said he was very impressed. Council President Knight said his son-in-law retired last week from the U.S. Air Force after 25 years as a Colonel. He said City Council and staff have a huge heart for the armed services and Veterans. CONSENT ITEMS 1. Medical Director Contract 2. Annual Street Resurfacing Piggyback Agreement 3. WWTP Master Plan Phase II Charlie Proctor moved to approve the consent items. Seconded by Ken Burgess. Motion passed unanimously.
2 Page Two BUSINESS ITEMS CITY MANAGER S REPORT 1. Code Enforcement Update City Manager Dr. Spina narrated a Code Enforcement PowerPoint presentation which included demolitions, mowing fees and abatements, liens and administrative costs, and code enforcement citations. He said the legal process for code enforcement citations is lengthy and when the case is heard before a judge, the violator may be given an additional three months to rectify the violation. He said departments involved in the Code Enforcement Task Force are Code Enforcement, Building, Public Works, CRA, Planning, Administration, Police, Utilities, and the City Attorney. He said interdepartmental cooperation is vital to the success of Code Enforcement and acknowledged Police Chief Brewer for setting up a City-wide intelligence committee that has led to several arrests through information sharing. Building Official Bill Burgess said for several years the City received funds from the federal government through Pasco County for blighted structures but this funding is no longer available. He said the City s success was tied to the funding. Dr. Spina said during the budget process $50,000 was added to the budget for housing rehabilitation funding. Dr. Spina said staff will bring a recommendation to Council to transfer the funds into a demolition fund and partner with the community to assist in building homes. Dr. Spina said since January 2017, the City has held two neighborhood clean-ups where the City brings in City crews, volunteers, dumpsters, and trailers to a neighborhood to assist residents in removing unwanted appliances, tires, household debris, and junk. The City s goal is to accomplish 3 to 4 Neighborhood Cleanups a year. The focus is on one area for each cleanup but residents throughout the City are encouraged to dump at the site. Dr. Spina said a Lien Forgiveness Program has been initiated in the CRA to sell blighted properties to buyers for redevelopment wherein the City forgives administrative and mowing fees. He said an issue within the City is the abundance of affordable housing. He said the City of Zephyrhills was recently in the news as fourth in the nation in affordable housing. He said affordable housing is good for economic and social conditions but it can be negative in terms of low rental rates. City staff is working to secure CDBG funds to assist with neighborhood blight, strengthening City s codes, and establishing a rental registry. Dr. Spina said Airport Manager Nathan Coleman made a point recently when he said when people will come to visit, they need to drive through town and experience a vibrant commercial business district. When people are thinking about moving their business, they are looking at schools, recreation and quality of life. When people drive from the airport to their destination and it s not a pretty picture, they don t stay. Dr. Spina said Code Enforcement is handled by one full-time and one part-time employee with the police department s assistance on an as need basis to accompany code enforcement officers on site for protection and/or to make arrests. He said the City needs to look at expanding the Code Enforcement Division. Council Vice President Smith said the City needs to aggressively pursue code enforcement issues to provide the community with a good return on investment. He said he is in favor of adding code enforcement resources. Council President Knight said the City is currently treading water and the City is exploding with growth. He is in agreement with adding code enforcement resources. Councilman Burgess said violators will begin to conform or they will look for somewhere else to live, we have to be aggressive. We have growth coming and need to find a manpower solution to keep the noose tight. Councilman Smith directed staff to put together an effective Code Enforcement Plan to include personnel, technology, and associated costs for review and possible implementation over the course of a year 2. Fire Assessment Fee Study Dr. Spina said Michael Burton with Stantec Consulting held a Workshop in July 2017 and presented a 10 year financial forecast on how the general fund would operate by implementing assessment fees. One new revenue source is a Fire Assessment Fee that would be
3 Page Two assessed to individual parcels within the City. A Resolution of Intent was advertised for four consecutive weeks and approved by City Council on October 9, The Resolution of Intent notifies citizens, the Property Appraiser and the Tax Collector s Office of the City s intent. The next step is to enter into an agreement to provide a 10 year detailed financial plan to include the total fixed amount that will be added to property owner parcels. The fee would provide $1M to $2M annually toward the operation of the Fire Department and would result in a reduction of the millage rate, very similar to the Pasco County Municipal Service Tax Unit (MSTU). The fee for development of the fire assessment program is $33,384, implementation assistance is $8,501, and legal fees of $6,330. Staff recommends Council move forward with this agreement. Councilman Burgess said the City has discussed additional fees in the future for storm water and asked if the City proceeds with the Fire Assessment Fee Study will the information cross over and be less expensive to implement storm water fees. Dr. Spina said the fee includes implementation of the plan, sending out notices and providing legal advice. If the City implements a storm water fee, the City would need to retain a consultant to assist with the initial cost of the fee, the percentage of the fee, and an analysis of the fund but the parcels will have been broken out with the exact number of parcels and values and the City could mail out notices. Dr. Spina said the Fire Department budget is approximately $2.6M and a 20% to 40% cost recovery was discussed. He said when the final numbers are determined, Council will establish a fee percentage for implementation. Kenneth Compton moved to approve Business Item 2. Seconded by Lance Smith. Motion passed unanimously. EMERGENCY ITEM Mayor Whitfield requested Council add Ratification of April 09, 2012 Minutes to the agenda as an Emergency Item. Councilman Smith moved to add the Mayor s Emergency Item to the agenda. Seconded by Kenneth Compton. Motion passed unanimously. City Attorney Matthew Maggard introduced Duane Draper, Legal Counsel, Bryant, Miller, and Olive. Mr. Draper said there are three items before Council this evening that will require three separate votes. He said the first item is a Master Bond Resolution that establishes a Penny for Pasco Funding Instrument or bond contract that will be utilized initially for City Hall and can be used for future borrowings toward projects that would have been funded by Penny for Pasco. This Master Bond Resolution is authorized not to exceed $7.471M. Mr. Draper said the second item is a Series Resolution which is specific to the borrowing to allow J.P. Morgan Chase to lend the City funds at an interest rate of 2.344% with a backup covenant to budget and appropriate legally available non-ad velorum revenues because the debt extends beyond the Penny for Pasco. Mr. Draper said the third item relates to closing the loan. He requested Council approve the following motion to be evidenced in the minutes, ratification that public facilities such as a new city hall were the type of public infrastructure presented by the then City Manager which was to be funded by the extended Penny for Pasco revenues, which project list was approved in a regular City Council meeting on April 9, 2012 as required by Section 4 of the related Interlocal Agreement. Dr. Spina said in 2012, there was a vote of the citizens to extend the Penny for Pasco and it was approved. He said the City shares in Penny for Pasco funds in conjunction with the Pasco County Government, the Pasco County School Board, and the Pasco County cities which receive a share of 10% of the overall funding. He explained that the April 9, 2012 minutes reflect that City Manager James Drumm provided a list of projects that could be funded by Penny for Pasco, Council discussed the projects, and the list was to be brought back to the next meeting for adoption of the Penny for Pasco Agreement with Pasco County. He said there is not a copy of the project list in the April 9, 2012 minutes and the Penny for Pasco Agreement between the City of Zephyrhills and Pasco County was approved in June 2012, not in April. He said among the items discussed were public facilities, improved roads, a park on the north end of town, a facility such as City Hall, and the Library.
4 Page Four Lance Smith moved ratification that public facilities such as a new city hall were the type of public infrastructure presented by the then City Manager which was to be funded by the extended Penny for Pasco revenues, which project list was approved in a regular City Council meeting on April 9, 2012 as required by Section 4 of the related Interlocal Agreement be approved. Seconded by Kenneth Compton. Motion passed unanimously. CITY ATTORNEY S REPORT 3. RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ZEPHYRHILLS, FLORIDA AUTHORIZING THE ISSUANCE OF $7,471,000 IN PRINCIPAL AMOUNT OF CITY OF ZEPHYRHILLS, FLORIDA INFRASTRUCTURE SALES SURTAX REVENUE BOND (CITY HALL PROJECT), SERIES 2017 FOR THE PURPOSE OF FINANCING AND/OR REIMBURSING THE TEMPORARY RELOCATION, DESIGNING, PERMITTING, ACQUISITION, CONSTRUCTION, RECONSTRUCTION AND EQUIPPING OF A NEW CITY HALL DESCRIBED HEREIN; PLEDGING LOCAL GOVERNMENT INFRASTRUCTURE SALES SURTAX REVENUES TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BOND; MAKING CERTAIN COVENANTS AND AGREEMENTS FOR THE BENEFIT OF THE HOLDERS OF SUCH BOND; EXPRESSING AN INTENT TO BE REIMBURSED WITH PROCEEDS OF SUCH BOND; AUTHORIZING CERTAIN OFFICIALS AND EMPLOYEES OF THE CITY TO TAKE ALL ACTIONS REQUIRED IN CONNECTION WITH THE SALE, ISSUANCE AND DELIVERY OF SUCH BOND; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. Resolution No was read by title. Charlie Proctor moved to approve Resolution on the first reading. Seconded by Ken Burgess. Motion passed unanimously. Spoke from the floor: Duane Draper, Legal Counsel, Bryant, Miller and Olive Mr. Draper said the loan will be in the principal amount of $7,471,000. He said the loan is for 15 years with a final maturity of October 1, 2032, is pre-payable without penalty after five years, has level debt service payments, and a 2.344% tax exempt interest rate. He said the loan documents have been pre-signed in escrow and the money will be disbursed on Wednesday, October 25 th pending Council approval. Dr. Spina said the City has paid initial fees out of general reserves which will be reimbursed. This loan amount includes interest over the next 15 years which is approximately $1M along with closing costs. He stated the principal amount for the New City Hall is $6.4M and the interest rate and closing costs increase the total to $ RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ZEPHYRHILLS, FLORIDA SUPPLEMENTING A RESOLUTION ADOPTED ON EVEN DATE HEREOF TO FIX CERTAIN DETAILS IN CONNECTION WITH THE ISSUANCE OF ITS $7,471,000 INFRASTRUCTURE SALES SURTAX REVENUE BOND (CITY HALL PROJECT), SERIES 2017; PROVIDING A COVENANT TO BUDGET, APPROPRIATE AND DEPOSIT LEGALLY AVAILABLE NON-AD VALOREM REVENUES OF THE ISSUER AS ADDITIONAL SECURITY FOR SUCH BOND; PROVIDING FOR OTHER COVENANTS WITH RESPECT TO THE BONDHOLDER; DESIGNATING SUCH BOND AS A "QUALIFIED TAX-EXEMPT OBLIGATION"; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. Resolution No was read by title. Ken Burgess moved to approve Resolution on the first reading. Seconded by Charlie Proctor. Motion passed unanimously.
5 Page Five 5. City Attorney Contract Dr. Spina said City Attorney Maggard has been with the City since August 2016 and is prompt, professional, reachable, and works well with staff. He recommended Mr. Maggard s initial one year contract be renewed with a three year contract beginning November 1, 2017 and terminating October 31, He said the contract includes a $10.00 an hour increase for the first year, from $ to $135.00, and increased to $ for the second and third years. All other provisions of the contract remain the same. Dr. Spina recommended Council approve the City Attorney s contract. Charlie Proctor moved to approve the City Attorney Contract. Seconded by Ken Burgess. Council President Knight asked City Attorney Matthew Maggard to explain the $ to $ price increase for the second and third years. City Attorney Matthew Maggard said he has been with the City for one year at the rate of $ He said a rate of $ is reasonable since he is still learning government, and by the end of next year a rate of $ will be a fair rate for the market. He added he works at a reduced rate for the City. Motion passed unanimously. MAYOR ANNOUNCEMENTS Mayor Whitfield said the Chamber of Commerce s Citizen of the month event recognized 20 students from Kindergarten through High School with parents and staff in attendance. He said a parent or teacher said something about each child s quality like leadership, kindness, etc. He extended an invitation to attend monthly recognitions to Council Members. He thanked Mr. Warren Earle for his donation. CITY MANAGER ANNOUNCEMENTS Dr. Spina said Pasco County has requested a second letter from the City of Zephyrhills endorsing the I-75 Overpass Road funding and a letter has been drafted for the Mayor to sign on behalf of City Council. He said he filled in for the Mayor on Saturday, October 21 st and presented a proclamation to Bill Kustes. Mr. Kustes thanked the Mayor and Council for thinking of him on his 90 th birthday. CITY ATTORNEY ANNOUNCEMENTS Mr. Maggard thanked City Council for renewing his contract and keeping him on staff. CITY COUNCIL COMMENTS Councilman Proctor thanked Mr. Warren Earle for his donation to the ROTC Service Learning Project and congratulated City Attorney Matthew Maggard on his contract renewal. Councilman Burgess acknowledged Mr. Warren Earle and said he has proven to be Citizen of the Year with all he does for the City. He congratulated Matthew Maggard and hopes he will be on staff for a long time. He said this is Homecoming week for Zephyrhills High School with a parade at 4:30 p.m. on Thursday, October 26 th. He said Homecoming will begin at 7:00 p.m. on Friday, October 27 th with a presentation and floats followed by the game at 7:30 p.m. He said Zephyrhills plays their rival Pasco on Friday, November 3rd, and the playoff game will be Friday, November 10 th. He said the Zephyrhills High School football team are the district champions which is the first time since Councilman Compton congratulated Mr. Earl for his community service and the treats. He gave special recognition to City Attorney Maggard and congratulated Dr. Spina, staff, City Council, and the citizens of the City of Zephyrhills for a giant step toward a new City Hall. Council Vice President Smith thanked Mr. Earle for the candy and thanked him for always thinking about other people and his support. He said he had an opportunity on Saturday night to go down town about 8:00 p.m. and had trouble finding a parking spot. He said it is nice to see people on the sidewalks enjoying the evening. He encouraged everyone to go downtown and see what is going on in the evening. Council Present Knight thanked Dr. Spina, Building Official Bill Burgess, Fire Safety Inspector/Code Enforcement Officer Gene Brown and Code Enforcement Officer Joel Bacon for the Code Enforcement update. He thanked Mr. Earle for the candy. He said a lot of negative things are happening in America and said this past week, Zephyrhills received a negative report about people in our community related to the kneeling or not kneeling for the national anthem
6 Page Six issue. He recognized Josie Wedge and Heather Culp for their presentation, professionalism and being a part of our community. When we come across people that are doing the right thing, we should be very proud of them. He said these two young ladies really stirred his heart tonight and he is proud of them. Meeting adjourned 7:41 p.m. Council Meeting Page Six
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