THE CITY OF MARCO ISLAND
City Council Meeting Agenda
Chairman: Michael F. Minozzi, Jr.
City Council: John A. Arceri, Heyward E. Boyce, Terri DiSciullo, Vickie Kelber,
S. Jeannette K. Patterson, E. Glenn Tucker
City Manager: A. William Moss
City Clerk: Laura Litzan City Attorney: Rich Yovanovich
Regular Meeting
Monday, June 2, 2003, 5:00 PM
Frank E. Mackle Jr. Community Park,1361 Andalusia Terrace
Marco Island, Florida
Notice: Formal action may be taken on any item discussed or added to this agenda. Any person who decides to appeal any decision made by the City Council with respect to any matter considered at this meeting or hearing will need a record of the proceedings and may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be heard.
1. ROLL CALL
2. INVOCATION AND PLEDGE OF ALLEGIANCE
Greg Niles, Community Development Director
3. APPROVAL OF AGENDA
4. APPROVAL OF MINUTES
(A) Council Minutes for May 9, 2003 (CIP Workshop)
(B) Council Minutes for May 19, 2003 (Regular Meeting)
5. BUSINESS
(A) DISCUSSION - Fiscal Year 2004 Spending Cap Calculations.
(B) DISCUSSION - Acquisition of Glon Property on Elkcam Circle.
(C) DISCUSSION - Contributions for Memorials.
(D) RESOLUTION - Regarding the Acquisition of the Water and Sewer Utility System from Florida Water Services, A Resolution Establishing Intent to Reimburse Certain Capital Expenditures Incurred with Proceeds of Future Tax-Exempt Financing.
(E) RESOLUTION - Urban County Program Agreement.
(F) DISCUSSION - Education Initiatives.
(G) ORDINANCES - First Readings:
1. An Ordinance Repealing City of Marco Island Ordinance 03-04, Which Adopted the Small Scale Comprehensive Plan Amendment for Petition SSCPA-03-02, Assigning "Community Commercial" Future Land Use Designation for a 0.54 Acre Parcel of Land Described as the East 300 Feet of Tract "C", Marco Beach Unit 17 (Moran's Barge Marina).
2. An Ordinance Repealing City of Marco Island Ordinance 03-05, Which Adopted Petition R-02-02, Changing the Zoning Classification for a 0.54 Acre Parcel of Land Described as the East 300 Feet of Tract "C", Marco Beach Unit 17 from "A-ST" to "C-4" for Redevelopment of a Commercial Marina, Restaurant and Hotel (Moran's Barge Marina).
3. An Ordinance Repealing City of Marco Island Ordinance 03-07, Which Adopted the Small Scale Comprehensive Plan Amendment for Petition SDCPA-03-01, Assigning "Community Commercial" Future Land Use Designation for a 0.38 Acre Parcel of Land Described at Tract "L', Marco Beach Unit 5.
4. An Ordinance Repealing City of Marco Island Ordinance 03-08, Which Adopted Petition R-03-01, Changing the Zoning Classification for a 0.38 Acre Parcel of Land Described at Tract "L", Marco Beach Unit 5, From "RSF-3" to "C-1/T" for Professional Office Development.
(H) DISCUSSION - Referendum Relating to the Acquisition of Florida Water Services.
(I) DISCUSSION - Authorization to Contract for Legal, Financial and Engineering Services Related to Florida Water Services Acquisition.
6. COUNCIL COMMUNICATIONS AND DISCUSSION
7. FUTURE AGENDA
8. PUBLIC COMMENT (ITEMS NOT ON THE AGENDA)
9. ADJOURN
We encourage our citizens to participate in the governing of Marco Island. Public comments are appreciated. We respectfully ask our citizens to be courteous, and to respect the rights of others to petition City Council and express their opinions. We also ask that Public comment be limited to four minutes.
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: 5(D) Prepared By: William P. Harrison, Finance Director
Date: May 20, 2003
Agenda Section:
Business: Resolution
Subject: Reimbursement Resolution Department: Finance
BACKGROUND:
As part of the formal process of the acquisition of the water and sewer utility system from Florida Water, the City Council should approve a resolution expressing it’s intent to include in the upcoming bond issue funds to reimburse the City for costs incurred prior to the issuance of the bonds. Costs incurred for expenditures such as due diligence engineering, legal work, and rate studies are referred to as “soft costs.” While these “soft costs” are generally eligible for reimbursement through the bond issue, even before the approval of a reimbursement resolution, this resolution officially establishes the intent of the City Council to add these costs to the final bond issue and makes eligible for reimbursement any other costs directly related to the utility acquisition which may be incurred before
the bond issue date.
The attached resolution has been prepared by the City’s bond counsel, Bryant, Miller, & Olive.
RECOMMENDED ACTION:
Approval of the attached resolution, establishing the intent of the City Council for the City to be reimbursed for “soft costs” such as engineering and legal services from proceeds of the bond issue to finance the Florida Water acquisition.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: 5(A) Prepared By: William P. Harrison, Finance Director
Date: May 20, 2003
Agenda Section:
Business: Discussion
Subject: Fiscal Year 2004 Spending Cap Department: Finance
BACKGROUND:
At the March 3rd City Council meeting, Council established the Spending Cap for Fiscal Year 2004 at $14,060,420. That figure was determined by taking the Spending Cap for 2004 without modifications and eliminating the 2001 purchase of the City Hall by emergency authorization in the amount of $1,275,000. Several councilors expressed concern that the Spending Cap for 2004 was being modified without knowing the fiscal impact of the cap reductions.
Other options were presented for Council considerations at that time, including one option which eliminated the purchase of the City Hall but added back the 2001 annual operating budget of the Sewer Fund. In 2001, Collier County deeded the small sewer operation to the City which had formerly been operated by the County. Council at that time required that the City’s budget be cut by $775,000 to include the operations of the sewer utility without increasing the total size of the budget. Had that decision not been made, the 2001 budget (and the basis for future spending caps) would have been $775,000 higher. In September 2002, voters decided that enterprise fund operations, such as our sewer utility, would be exempt from the Spending Cap.
At the CIP Workshop of May 9th, Council directed that the Spending Cap issue be placed on the May 19th Council Agenda for further discussion. A Spending Cap for fiscal year 2004 that both removes the 2001 purchase of the City Hall and adds back the 2001 budget for the Sewer Fund would be as follows:
FISCAL YEAR 2004 SPENDING CAP WITHOUT ADJUSTMENTS: $15,335,420
LESS: 2001 PURCHASE OF CITY HALL (1,275,000)
ADD BACK: 2001 SEWER UTILITY FUND BUDGET 775,000
AMENDED FISCAL YEAR 2004 SPENDING CAP: $14,835,420
RECOMMENDED ACTION:
Discussion and determination of the Spending Cap for fiscal year 2004.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: Prepared By: A. William Moss, City Manager
5(C) Date: May 20, 2003
Agenda Section:
Business: Discussion
Subject: Contributions for Memorials Department: City Council
BACKGROUND:
On May 9, 2003, at the conclusion of the special called meeting for the Five-Year Capital Improvement Program, Councilwoman Kelber requested that City Council consider adding an item to the May 19th agenda to allow for a discussion regarding contributions for memorials. (This item has been rescheduled from the May 19th meeting.)
Councilwoman Kelber intends to suggest to City Council that a formal policy be established to allow citizens to contribute funds to the City for the specific purpose of purchasing or establishing memorials. Such memorials may include park benches, trees, etc. that would benefit the community in exchange for an individual or family being identified as a contributor for a memorial by the placement of a small sign or plaque.
RECOMMENDED ACTION:
Discussion.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: Prepared By: A. William Moss, City Manager
5(B) Date: May 14, 2003
Agenda Section:
Business: Discussion
Subject: Acquisition of Glon Property on Elkcam Circle Department: City Council
BACKGROUND:
During the Capital Improvement Program workshop meeting of May 9, 2003 Vice Chair Tucker suggested that City Council consider an offer to purchase property owned by Dale Glon on Elkcam Circle. Vice-Chair Tucker has since met with the property owner to discuss the acquisition and has requested that City Council discuss this subject.
The subject property is comprised of 12 parcels totaling 6.85 acres, and is located on both sides of Elkcam Circle at the intersection of Lambert Drive. The property is zoned PUD as approved by Council on March 19, 2001. The PUD provides for commercial mixed-use development containing a hotel, restaurants, retail uses, offices, multi-family units, public use area, and waterfront amenities.
The property owner has recently revealed a new development proposal for the inland portion of the property. Instead of a 172-room hotel, the owner proposes a stand-alone multi-family building with 82 units. Waterfront retail/office space totaling 35,000 square feet combined with the 10,000-15,000 square foot civic space allocation will ensure the project as a whole meets the requirements for a mixed use development. All proposed uses are currently permitted in the PUD document.
This matter is presented for discussion and direction if deemed appropriate.
RECOMMENDED ACTION:
Discussion.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: 5(G) Prepared By: K. Greg Niles
Date: May 20, 2003
Agenda Section: Discussion/Ordinance – 1st Reading
Business:
Subject: Ordinances to Repeal Ordinance 03-04, Department: Community Development
Ordinance 03-05, Ordinance 03-07 &
Ordinance 03-08
BACKGROUND:
At the meeting of May 5, 2003 City Council instructed staff to initiate efforts to rescind ordinances related to two previously adopted, but challenged, small scale comprehensive plan amendments. Attached for Council's consideration on first reading are four (4) ordinances addressing the following:
1. An ordinance to repeal Ordinance 03-04, which amended the future land use map designation from "conservation/preservation" to "community commercial" at Moran's Barge Marina.
2. An ordinance to repeal Ordinance 03-05, which changed the zoning classification from "A-ST" to "C-4" for property at Moran's Barge Marina.
3. An ordinance to repeal Ordinance 03-07, which amended the future land use map designation from "low density residential" to "community commercial" for Tract "L", Marco Beach Unit 5.
4. An ordinance to repeal Ordinance 03-08, which changed the zoning classification from "RSF-3" to "C-1/T" for Tract "L", Marco Beach Unit 5.
The four ordinances subject to repeal were all adopted on second reading on April 7, 2003.
RECOMMENDED ACTION:
Discussion; motion to adopt ordinances, individually, on first reading.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: Prepared By: A. William Moss, City Manager
5(F) Date: May 26, 2003
Agenda Section:
Business: Discussion
Subject: Education Initiatives Department: City Council
BACKGROUND:
On May 19, 2003 Councilwoman Patterson proposed and City Council agreed to discuss the topic of education.
The City of Marco Island adopted policies pertaining to education through the Future Land Use Element of the Comprehensive Plan (2001). Those local policies were reiterated and responsibilities clarified through the drafting process for the state mandated "Interlocal Agreement for Public School Facility Planning". City Council approved execution of the Interlocal Agreement with the District School Board in February 2003.
Councilwoman Patterson intends to seek Council's concurrence to pursue certain education initiatives to the benefit of educational opportunities for Marco Island residents.
RECOMMENDED ACTION: Discussion. Specific direction as may be deems appropriate.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: 5(H) Prepared By: A. William Moss, City Manager
Date: May 26, 2003
Agenda Section:
Business: Discussion
Subject: Referendum Relating to the Acquisition of Department: City Council
Florida Water Services
BACKGROUND:
On May 19, 2003 Councilman Boyce proposed and City Council agreed to place on the agenda the subject of the acquisition of Florida Water Services Corporation and the appropriateness of a public referendum.
In addition to information and knowledge previously acquired by City Council and citizens, other opportunities will be available to evaluate public opinion on this issue. Specifically, additional public hearings will be required as a part of the tax-exempt revenue bond financing, and Chapter 180, F.S., requires municipalities to conduct a "public interest" hearing before acquiring a water and sewer utility.
While the public record pertaining to the utility acquisition is extensive, additional financial and engineering due diligence reports will be updated and presented for public review as part of the Chapter 180 hearing.
RECOMMENDED ACTION: Discussion and direction as deem appropriate.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: 5(E) Prepared By: K. Greg Niles
Date: May 27, 2003
Agenda Section: Resolution
Business:
Subject: Urban County Program Agreement Department: Community Development
BACKGROUND:
At the May 19, 2003 meeting City Council approved a motion to continue support and participation with Collier County under an amended "Urban County Program Agreement ". The amended Agreement will be effective for a three-year period (FY 2004 – FY 2006).
The Department of Housing and Urban Development (HUD) has requested that City Council approve a resolution to formally authorize the continued participation by the City of Marco Island in the "Urban County Program Agreement".
A resolution has been prepared to satisfy this request by HUD.
RECOMMENDED ACTION:
Discussion; motion to adopt resolution as presented.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
REQUEST FOR CITY COUNCIL CONSIDERATION
Meeting Date: June 2, 2003
Agenda Item: Prepared By: A. William Moss, City Manager
5(I) Date: May 28, 2003
Agenda Section:
Business: Discussion
Subject: Authorization to Contract for Legal, Financial Department: City Manager
And Engineering Services
Background:
On May 5, 2003 the City Manager provided an overview of the pending negotiations for the acquisition of the Marco Island/Marco Shores utility assets of Florida Water Services Corporation. The overview included anticipated fees for services required for a successful negotiated transaction and tax-exempt bond issue. Following the overview, City Council approved an “Agreement to Acquire Utility Assets” between the cities of Marco Island, Palm Coast, Deltona, Hernando County, and the Florida Governmental Utility Authority. The purpose of the Agreement is to recognize the cooperative effort of the parties for the coordination, negotiations, financing, transition, and operations of the utility systems.
Such coordination, as deemed appropriate by each party, may include a common acquisition team, lead negotiators, underwriters, financial evaluation and analysis, bond and disclosure counsel, and other due diligence activities.
City Council is asked to authorize contracts for the following services related to the utility acquisition:
1. Special Utility Counsel. The firm of Rose Sundstrom & Bentley, LLP, is serving as the lead negotiator on behalf of the parties and provides Acquisition Counsel services as summarized in the attachment. The estimated fee for Marco Island through closing is $250,000. If the Marco Island City Attorney provides certain services, then the fee will be reduced accordingly. The fee for acquisition services, combined with a payment to the FGUA for previous acquisition counsel service, are within the acquisition counsel service estimate for the FGUA scenario developed in August 2002 ($450,000). [The City Manager informed City Council that the parties agreed to pay 40% of the FGUA’s requested compensation for utility acquisition services].
2. Financial Evaluation Due Diligence. The firm of Public Resources Management Group, Inc. will prepare appropriate Financial Evaluation Due Diligence on behalf of the parties. The services are summarized in the attachment and include financial evaluation due diligence, rate revenue proof, historical trend analysis, update financial evaluation based on 2002 FWS data, debt capacity analysis, and acquisition strategy. The fee for service this service is $90,000, including past and future work, a reduction from the figure of $146,728 presented at the May 5th Council meeting.
3. Bond Counsel. City Council has selected the firm of Bryant, Miller, & Olive to serve as the City’s Bond Counsel. The existing contract will cover services associated with the issuance of tax-exempt bond financing (utility revenue bonds), subject to negotiations for the fee for service. The fee should be no greater than $2.00 per $1000 bond, or $210,000. All parties intend to use either the law firm of Bryant, Miller & Olive or Nabors, Giblin & Nickerson as Bond Counsel.
4. Disclosure Counsel. The issuance of tax-exempt utility revenue bonds will also require the retention of Disclosure Counsel. All parties intend to use either Bryant, Miller & Olive or Nabors, Giblin & Nickerson as Disclosure Counsel, depending on the selection of Bond Counsel. The maximum fee should range from $1.50 to $1.80 per $1000 bonds ($157,500 to $189,000).
5. Engineering Due Diligence. City Council approved a contract with Montgomery Watson Harza for Engineering Due Diligence associated with the FGUA acquisition scenario last year. A fee of $25,000 will provide for an update of the report in a format required by Public Resources Management Group for the Financial Evaluation Due Diligence. Each party also agreed to reimburse the FGUA due diligence engineer Post Buckley for value added services associated with the final engineering due diligence. That fee for Marco Island is estimated to be $32,500.
6. Financial Advisor. City Council has selected the firm of First Southwest to serve as Financial Advisor for the City of Marco Island. The existing contract will cover services associated with tax-exempt bond financing. Negotiated fees are $1 per $1,000 in bonds up to the first $10 million, $0.80 per $1,000 in bonds for the next $10 million, and $0.60 per $1,000 in bonds for amounts in excess of $20 million. The fee for Marco Island is estimated at $75,000.
7. Underwriters. The City Manager coordinated a “Request for Qualifications for Investment Banking Services” on behalf of the parties. These services are required to market the tax-exempt revenue bonds. Ten firms responded to the publicly advertised RFQ. The parties reviewed the submittals on May 27th and recommended the firm of Bank of America Securities and Prager & Sealy Company as senior co-managers and Raymond James Company as co-manager. The fee for underwriting services will be in the range of $5.00 to $7.50 per $1,000 bonds ($525,000 to $787,500).
This agenda item is presented with the assumption that negotiations with Florida Water Services will resume and that a Purchase and Sale Agreement satisfactory to all parties will be developed. It should be recognized that the proposed transaction is the largest (and most complex) acquisition of a utility in the State of Florida. Setbacks should be expected. If an agreement is not reached, the above referenced costs for Bond Counsel, Disclosure Counsel, and Underwriters are not applicable. Expenses for Acquisition Counsel and Financial Due Diligence will continue unless the transaction is terminated.
The anticipated acquisition costs are less than Council-approved acquisition costs associated with the FGUA acquisition scenario of last year.
City Council is asked to affirm previous agreements and authorize the City Manager to execute agreements for the services described in the above seven categories.
Recommended Action:
Motion to authorize the City Manager to affirm previous agreements and to execute agreements for the services described in the above seven categories.
Reviewed by Department Director Reviewed by City Manager
Council Action: Motion by: Second by:
| 
