JACKSONVILLE CITY COUNCIL

RESEARCH DIVISION

 

 

FINANCE COMMITTEE MINUTES

 

JUNE 2, 2008

2:00 P.M.

 

CITY COUNCIL CHAMBER

1st floor, City Hall

117 W. Duval Street

 

 

Attendance: Chairman Shad, Committee Members Hyde (dep. 3:45), Graham, Clark, Joost, Lee (dep. 3:50) and W. Jones (arr. 2:11)

Guests:  Council Members Johnson, Corrigan and Webb

 

The meeting was called to order at 2:00 p.m.

 

Council Auditor Kirk Sherman introduced Mike Patillo of the Jacksonville office of Ernst and Young who made a presentation on the City’s independent audit of the FY06-07 financial statements.  Ernst and Young offered an unqualified opinion that those statements fairly and accurately reflect the City’s financial position and transactions.  Mr. Patillo called the committee’s attention to the Management Letter, and particularly to the section entitled Status of Prior Year Recommendations which notes whether issues noted and recommendations made in previous years’ management letters have been resolved or remain pending.

 

Kirk Sherman noted that one of the recommendations that have been pending for several years is the issue of a disaster recovery plan for the City’s information technology infrastructure.  He introduced Kevin Holzendorf of the Information Technology Department who explained that, while the department does not have a full-fledged disaster recovery plan, it does have a disaster recovery strategy and is working toward the goal of having two fully mirrored data centers operating in both the Ed Ball Building and the Emergency Operations Center on Laura Street by the spring of 2009.

 

The following items were taken up out of order at the beginning of the meeting:

 

29.  2008-387

ORD Apv Issuance of Hospital Revenue Bonds by JEDC of $60,000,000 to Refund an Interim Taxable Loan of which Proceeds were Applied to Refund JEDC Hospital Revenue Bonds (Shands Jacksonville Medical Center, Inc. Proj). (Stokes) (JEDC)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/27/08

 

1. 5/13/2008 CO  Introduced: F,RCD

 

    5/19/2008 F Read 2nd & Rerefer

 

    5/20/2008 RCD Read 2nd & Rerefer

 

2. 5/27/2008 CO PH Read 2nd & Rereferred; F, RCD

 

 

Steve Emery of the JEDC explained that the purpose of the refunding is to permit Shands Jacksonville to move its financing into more stable interest rate instruments due to the current upheaval in the national bond market.

 

RECOMMEND APPROVAL 5-0

 

 

31.  2008-428

ORD Apv Increase in Employee Cap in Sheriff's Ofc of 40 Police Officer Positions. (RC 08-726) (McCain) (Req of Sheriff)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/27/08

 

1. 5/13/2008 CO  Introduced: F,PHS

 

    5/19/2008 PHS Read 2nd & Rerefer;    5/19/2008 F Read 2nd & Rerefer

 

2. 5/27/2008 CO PH Read 2nd & Rereferred; F, PHS

 

 

Sheriff Rutherford made a presentation explaining the JSO’s cost-savings and management improvement efforts over the last several years and providing the rationale behind the request for adding the 40 new officer slots immediately as the first step toward eventually hiring 433 new positions (225 sworn officers, 124 corrections officers and 84 civilians) over the next 3-4 years.  He argued that Jacksonville has had the highest per capita murder rate in Florida for the past 9 years and last year experienced the worst year of traffic fatalities (174, substantially more the number of murders) in the City’s history, at least in part because the city has a substantially lower number of police officers per capita than any other major city in Florida.  He believes the city’s economic future is in danger as more and more people choose to work in Jacksonville but live in adjoining counties because of a better quality of life.

 

Council Member Clark agreed that public safety is undoubtedly the top priority for city government, but objected to making this commitment to an increased employee cap and the attendant increased funding needs as a stand-alone decision rather than in the upcoming budget process in conjunction with the discussion of the Jacksonville Journey funding recommendations.

 

RECOMMEND APPROVAL 5-1( Clark opposed)

 

 

 

12.  2008-344

ORD Approp $184,840 ($59,840 from Spec Council Operating Contingency & $125,000 from Spec Council Lapse Contingency) to Jax Area Legal Aid to Represent Clients in Foreclosure. (Sidman) (C/M Johnson, Webb, W. Jones)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/13/08

 

1. 4/22/2008 CO  Introduced: F,PHS

 

    5/5/2008 PHS Read 2nd & Rerefer;    5/5/2008 F Read 2nd & Rerefer

 

2. 5/13/2008 CO PH Read 2nd & Rereferred; F,PHS

 

 

Michael Figgins of Jacksonville Area Legal Aid described the magnitude of the mortgage forclosure problem in Jacksonville (30-40 foreclosures per day) and explained how JALA can help address the problem by making a lawyer available to take the necessary legal steps to stop or delay the process while homeowners try other avenues to renegotiate or refinance their loans.  The City’s funding infusion will pay for training of volunteer attorneys to deal with the specific nuances of foreclosures and for a branch office/outreach center with a new staff attorney to help get the word out to the effected population about the services that are available.  A private fundraising effort is underway to help raise additional funds for the effort.

 

In response to a question Wight Greger of the Housing and Neighborhoods Department explained that this additional funding would not duplicate emergency housing assistance already provided through her department would be complementary. The department’s funds cannot be used to pay attorney fees.  Council Member Graham proposed an amendment to specifically state that this appropriation is a one-time infusion to JALA’s budget to deal with this particular crisis and is not to be added to the agency’s base of annual City funding.

 

AMEND to

1.       attach contract as exhibit and authorize Mayor to execute

2.       attach PR program information

3.       add “to account” information

4.       add language indicating this is a one-time appropriation not be added to JALA’s public service grant funding base

 

RECOMMEND APPROVAL AS AMENDED 6-0

 

 

Council Member Hyde departed the meeting.

19.  2008-370

ORD Making Findings & Auth Execution of Economic Developmt Agreemt among COJ, JEDC & Project GRIP (Developer) to Support Relocation of Developer's Headquarters Operation to Jax, FL; Recommending Developer  Apv by State of FL Office of Tourism, Trade & Economic Development (OTTED) as Qualified Target Industry Business Pursuant to Sec 288.106, S.S. & Evidencing Commitment of City Support in Amt not Exceeding $52,800 as Local Financial Support under QTI Tax Refund Program, Guidelines Set by State of FL OTTED, with State Match of $211,200, for Total City & State Amt of $264,000 for 66 Jobs; Apv & Auth Execution of Documents Mayor & Dir of JEDC & Designating JEDC Contract Monitor; Further Auth & Auth Apvl of Tech Amends by Executive Dir of JEDC. (Alderson) (JEDC)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/27/08

 

1. 5/13/2008 CO  Introduced: F,RCD

 

    5/19/2008 F Read 2nd & Rerefer

 

    5/20/2008 RCD Read 2nd & Rerefer

 

2. 5/27/2008 CO PH Read 2nd & Rereferred; F, RCD

 

 

Council Member Lee expressed her opposition to the Council being asked to approve a project and appropriate City funds without the identity of the recipient company being disclosed.

 

RECOMMEND APPROVAL 4-1 (Lee opposed)

 

 

Council Member Lee departed the meeting

 

10.  2008-328

ORD Auth a 1st Amend to License Agreemt with Jacksonville Skeet & Trap Club, Inc for Propty at 12125 New Berlin Rd. (Dist 11-Holt) (Sidman) (C/M Johnson)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/13/08

 

1. 4/22/2008 CO  Introduced: F,RCD

 

    5/5/2008 F Read 2nd & Rerefer

 

    5/6/2008 RCD Read 2nd & Rerefer

 

2. 5/13/2008 CO PH Read 2nd & Rereferred; F,RCD

 

 

Chairman Shad announced that since the agenda meeting, where the bill was announced as being deferred, a mutually agreeable compromise has been worked out between the City and the Jacksonville Skeet and Trap Club requiring fencing around the campground area to prevent campers from accessing other parts of the site, and therefore the bill is ready for action.

 

AMEND to

1.       Include prior ord. 2005-791-E reference title and purpose of amendment in title.

2.       Remove and replace exhibit 1 to

a.       add Environmental and Compliance Department recommendation regarding mandatory installation of fence around campground

b.       insert contract # 9028

c.        delete the”(a)” from paragraph 5

d.       correct date of original agreement to June 5, 2006

e.       attach new site map showing various areas

 

RECOMMEND APPROVAL AS AMENDED 4-0

 

 

9.  2008-210

ORD Amend Sec 111.830 (Library Conference Facilities Spec Rev Fund) to (1) Make Self Approp; (2) Require JPL Trustee Reports re Fees Charged & (3) Require JPL Trustee Annual Reports re Revenue & Expenditures of Fund. (Alderson) (Req of Mayor & Bd of Library Trustees)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 4/8/08

 

1. 3/25/2008 CO  Introduced: F,RCD

 

    3/31/2008 F Read 2nd & Rerefer

 

    4/1/2008 RCD Read 2nd & Rerefer

 

2. 4/8/2008 CO PH Read 2nd & Rereferred; F,RCD

 

 

Assistant Council Auditor Janice Billy explained the substitute prepared as a result of a meeting last week among Council Member Shad, the Auditor’s Office and library management to arrive at a mutually agreeable arrangement regarding allocation of revenues and expenses of the Main Library Conference Center.

 

SUBSTITUTE to replace Ordinance Code Section 111.830 (Library Facilities Special Reserve fund) to clarify annual budget process; require filing of report of annual revenues and expenses a well as fee schedule; increase temporary hours account in fund by 1600 hours; appropriate $111,672.27 from fund revenue to provide for current year appropriation; transfer $68,238.58 in Library budget expenses to the reserve fund and increase Special Council Contingency by same amount.

 

RECOMMEND APPROVAL AS SUBSTITUTED 4-0

 

 

 

 

Item/File No.

Title/History

 

 

1.  2005-1007

ORD Concerning Benefits Pertaining to Gen Employees Pension Plan, Chapt 120, Part II & Create New SubSec (J) in Sec 120.206 Providing that an Active Mbr who has completed 20 Yrs or more Credited Svc, regardless of age, may elect to retire & receive mbr's normal retiremt benefit, which shall be determined by multiplying 2% of Mbr's number of yrs & months of credited svc, up to a max of 80%, by mbrs' final monthly compensation provided Mbr's retiremt commences bet 1/1/06-6/30/06. (Dunham) (Jax Gen Employees Bd of Pension Trustees) (75 Letters of Support on File & 3 Ltrs of Opposition)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601- 9/13/05

 

1. 8/23/2005 CO  Introduced: F

 

    9/6/2005 F Read 2nd & Rerefer

 

2. 9/13/2005 CO PH Read 2nd & Rereferred; F

 

    10/3/2005 F Sub/Rerefer 5-0

 

3. 10/11/2005 CO SUBSTITUTE/ Rerefer; F

 

    6/19/2006 F Amend/Approve 3-2 (Failed)

 

    8/14/2006 F Amend/Approve 2-3 (Failed)

 

 

DEFER

 

 

 

2.  2006-591

ORD Apv the Soutel/Moncrief Retail Redev Area in accordance with Chapt 163, Pt III, Community Redev Act of 1969, F.S., as Amended; Making Findings & Determinations; Estab a Redev Trust Fund Pursuant to Sec 163.387 of said act; Directing Tax Collector to estab 2005 Tax Assessmt as the Base for the Increment as Required by Sec 163.387, F.S. (Germany) (Req of Mayor & C/M Jones)

F Public Hearing - 7/17/06

ECID Public Hearing - 7/18/06

Public Hearing Pursuant to Chapt 166 & 163.358 F.S. & CR 3.601 - 5/23/06, 7/24/06

 

1. 5/9/2006 CO  Introduced: F,ECID

 

    5/15/2006 F Read 2nd & Rerefer

 

    5/16/2006 RCD Read 2nd & Rerefer

 

2. 5/23/2006 CO PH Read 2nd & Rereferred; F, ECID

 

    6/5/2006 F Amend/Approve 7-0

 

    6/6/2006 RCD Amend/Approve 5-0

 

3. 6/13/2006 CO POSTPONED 6/27/06

 

   6/27/2006 CO Rereferred; F,ECID (RCD 7/1/07)

 

 

DEFER

 

3.  2006-883

ORD Auth Lease Agreemt with Property Management Support, Inc for Tax Collector Office Space at 9680 Argyle Forest Blvd (5,000 Sq Ft at Oakleaf Crossing Center). (Dist 11-Holt) (Howard) (Req of Mayor)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 8/22/06

 

1. 8/8/2006 CO  Introduced: F,TEUS

 

    8/14/2006 F Read 2nd & Rerefer

 

    8/15/2006 TEU Read 2nd & Rerefer

 

2. 8/22/2006 CO PH Read 2nd & Rereferred; F,TEUS (TEU 7/1/07)

 

 

DEFER

 

4.  2006-1364

ORD Amend Sec 120.206(h), Ord Code, to Change Commencemt Date of COLA from April to January. (Dunham) (Req of Bd of Pension Trustees, Gen Employees)

Public Hearing Pursuant to  Chapt 166, F.S. & CR 3.601 - 12/12/06

 

1. 11/28/2006 CO  Introduced: F

 

    12/4/2006 F Amend/Read 2nd & Rerefer 4-0

 

2. 12/12/2006 CO PH AMENDED/Read 2nd & Rereferred; F

 

 

DEFER

 

 

5.  2007-1005

ORD Creating Chapt 113 (Gifts to City) Establishing Method & Means of City to Accept Donations of $500,000 or more, Other Monetary Donations, Gifts of Personal Propty & Gifts to the Executive & Legislative Branches of Govt of Tickets & Admissions to Events & Travel. (Rohan) (C/M Lee)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 10/9/07

 

1. 9/25/2007 CO  Introduced: R,F

 

    10/1/2007 F Read 2nd & Rerefer;    10/1/2007 R Read 2nd & Rerefer

 

2. 10/9/2007 CO PH Read 2nd & Rereferred; R,F

 

 

R: defer

 

DEFER

 

6.  2007-1136

ORD Amend Chapt 120 (Gen Employees & Corrections Officers Retiremt Plans), Ord Code to (1) Provide for Re-Employmt of Retired Employees under Certain conditions; (2) Adjust Contribution Rate for City Disability Prog; (3) Provide for Adjustmts to Purchases of Svc & Time Connections; (4) Estab a Separate City Disability Prog; Create a New Part V (Gen Employees Defined Contribution Plan) to (A) Estab a Defined Contribution Retiremt Plan; (B) Estab Admin, Contributions, Vesting, Protection from Claims of Creditors & Investmt Rules; (C) Provide for 1-Time Irrevocable Election for Current Gen Employees Retiremt Plan Members to Transfer to the Defined Contribution Plan under Certain conditions; (D) Provide a 1-Time Irrevocable Election for Defined Contribution Plan Members to Transfer to Gen employees Retiremt Plan; (E) Provide for Continued Tax Qualification of System; (F) Provide for Conflicts, Severability & Codification. (Germany) (Req of Mayor)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 11/13/07

 

1. 10/23/2007 CO  Introduced: F

 

    11/5/2007 F Read 2nd & Rerefer

 

2. 11/13/2007 CO PH Read 2nd & Rereferred; F

 

    11/19/2007 F Sub/Rerefer 6-0

 

3. 11/27/2007 CO SUBSTITUTE/ Rerefer; F

 

    3/17/2008 F Sub/Approve 5-0

 

   3/25/2008 CO REREFERRED; F

 

 

Council Member Joost inquired why this bill is being continually deferred.  Finance Director Mickey Miller explained that the administration is examining the potential impact of switching the default option for an employee who does not specifically elect one  of the two options from the defined contribution plan to the defined benefit plan – this may alleviate some of the concerns expressed by several bargaining units and the Pension Fund Board.  An actuarial study needs to be completed to determine the effects of the changes. 

DEFER

 

 

7.  2007-1207

ORD Directing the Preservation & Relocation of Fire Station #5 at 347 Riverside Ave, Consistent with Contractual Obligations with Fidelity National Financial, Inc; Provide for Study & Recommendation for Relocation to be Completed by 3/31/08. (Rohan) (C/M Johnson)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 11/27/07

 

1. 11/13/2007 CO  Introduced: F,RCD

 

    11/19/2007 F Read 2nd & Rerefer

 

    11/20/2007 RCD Read 2nd & Rerefer

 

2. 11/27/2007 CO PH Read 2nd & Rereferred; F,RCD

 

 

DEFER

 

 

8.  2007-1302

ORD Auth an Agreemt with Beach Boulevard Venture, LLC ("Beach") for Beach to Construct a Regional Stormwater Retention Pond for Benefit of Sandalwood Canal Flood Control Proj, City is to obtain Permits & Pay $2,000,000 for Required Mitigation based on 16.52 Acres of Wetland Impact. (McCain) (Req of Mayor)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 1/8/08

 

1. 12/11/2007 CO  Introduced: F,TEU

 

    1/2/2008 F Read 2nd & Rerefer

 

    1/3/2008 TEU Read 2nd & Rerefer

 

2. 1/8/2008 CO PH Read 2nd & Rereferred; F,TEU

 

 

DEFER

 

 

 

11.  2008-340

ORD Amend Chapt 120 (Gen Employees & Corrections Officers Pension Plans), Part 3 (Corrections Officers Retiremt Plan), Sec 120.304(f) (Credited Svc; Time Connections; Prior Svc) to Include Fla Dept of Corrections (Certified Officers Only) as an Addnl Govt Agcy for Time Svc Connections within the Corrections Officers Retiremt Plan. (Germany) (C/M Webb)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/13/08

 

1. 4/22/2008 CO  Introduced: R,F,PHS

 

    5/5/2008 PHS Read 2nd & Rerefer;    5/5/2008 F Read 2nd & Rerefer;    5/5/2008 R Read 2nd & Rerefer

 

2. 5/13/2008 CO PH Read 2nd & Rereferred; R,F,PHS

 

 

R: defer

 

DEFER

 

 

 

13.  2008-352

ORD Apv & Auth Execution of Conservation Easemt with St. Johns River Water Mgmt Dist over 2.11 Acres of Pond Site 4 of Broward Rd. Improvemts Proj,  BJP Project (The "Property") as condition of Broward Rd Reconstrn. (Dist 8- Lee) (McCain) (Req of Mayor)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/27/08

 

1. 5/13/2008 CO  Introduced: F,TEU

 

    5/19/2008 F Read 2nd & Rerefer

 

    5/20/2008 TEU Read 2nd & Rerefer

 

2. 5/27/2008 CO PH Read 2nd & Rereferred; F,TEU

 

 

RECOMMEND APPROVAL 4-0

 

14.  2008-353

ORD Apv & Auth Temp Easemt Granting Temp Constrn Easemt in, over & under Parcel 701.1 on Hwy Ave to FDOT for Replacemt of Existing Bridge. (Dist 9- W. Jones) (McCain) (Req of Mayor)

Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 - 5/2