May 25, :00 City Hall Room 100

Transcription

1 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE AGENDA May 25, :00 City Hall Room 100 Members & Alternate: Support Staff: Budget, Finance & Taxation Committee: Chair James R. Jim Kennedy, Jr.; Vice Chair Charles Gerdes; Karl Nurse; Darden Rice; and Ed Montanari (alternate). Kewa Wright, City Council Administrative Aide Cindy Sheppard, City Council Administrative Officer A. Call to Order B. Approval of Agenda C. Approval of Minutes 1. May 11, 2017 D. New/Deferred Business 1. May 25, 2017 a. Changes to purchasing requirements to include life cycle costs. (Louis Moore) b. Quarterly Grants Report (Shrimatee Ojah-Maharaj) E. Upcoming Meetings Agenda Tentative Issues 1. June 8, 2017 a. Consideration of a requirement for a city contractor securing future contracts of at least $2,000,000 to provide a minimum wage of at least $10.00 per hour with a schedule to raise this over time. (Chris Guella/Louis Moore) b. Council Needs Assessment c. Airbnb to collect sales tax and tourist taxes from guests (Legal) 2. June 15, 2017 a. Request to publish the FY Annual Action Plan and Budget (Johnson) b. Baseball Referendum to allow the St. Petersburg Baseball Commission a 10 year lease with a 10 year renewal for the Walter Fuller Baseball Park (Gerdes) c. Consideration of the establishment of a Citizens Advisory Committee for the Intown CRA (Nurse) d. Consideration of a revision to the Small Business Enterprise Ordinance (Nurse) F. New Business Item Referrals G. Adjournment

2 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE Minutes May 11, :00 City Hall Room 100 Present: Absent: Also: Committee Members Chair James R. Jim Kennedy, Jr., Vice Chair Charles Gerdes, Karl Nurse and Ed Montanari (alternate). Council Member Darden Rice City Attorney, Jackie Kovilaritch; Assistant City Attorney, Jane Wallace; City Administrator, Gary Cornwell; Finance Director, Anne Fritz; Budget Director, Tom Greene; Budget Manager, Denise Labrie; Human Resource Director, Chris Guella; Benefits Manager, Vicki Grant; City Council Administrative Aide, Kewa Wright and Senior Deputy City Clerk, Cathy E. Davis A. Call to Order Chair Kennedy called the meeting to order with the above persons present. B. Approval of Agenda In connection with the approval of the May 11 th meeting agenda, Council Member Gerdes motioned that the agenda be approved as written. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse. Nays. None. Absent. Rice. Montanari (alt). C. Approval of Minutes 1. April 27, 2017 In connection with the approval of the April 27 th meeting minutes, Councilmember Gerdes motioned that the minutes be approved as written. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse. Nays. None. Absent. Rice. Montanari (alt). D. New/Deferred Business 1a. Forgotten Firefighters (Chris Guella and Vicki Grant) Mr. Guella informed the committee that the Pre 2008 Fire Retirees (aka Forgotten Firefighters) have asked the City for a Cost of Living Adjustment (COLA). The Forgotten Firefighters initially tried working with the union to access the Chapter 175 funds to no avail. Mr. Guella provided the committee with a Pre 2008 Fire Retiree Executive Summary outlining the Valuation and Cost

3 Information, COLA History from and Union Bargaining History from In addition, Mr. Guella informed the committee about the potential hazard of recurring Ad Hoc COLAs. According to the Governmental Accounting Standards Board (GASB) and the Florida Division of Retirement, if there is a historical pattern of consistent increases, whether annually or every couple of years, the City may be required to fund the benefit annually. Mr. Guella suggested that if an agreement can be reached between the Forgotten Firefighters and the union that would be the most viable option, since there is more than enough funds to share in Chapter 175. CM Gerdes inquired about the documented history of the pension board making recommendations to the Mayor for COLAs and documented history regarding the Mayor s response to their recommendation. Mr. Guella informed the committee that not all responses are formally documented. The Mayor could have responded in the context of bargaining or verbally in a meeting. CM Gerdes requested if an amendment can be made to the plan where, after the pension board has provided the Mayor with their recommendation pertaining to COLA, and the Mayor makes his expressed decision, the Mayor s decision would go to Council for a vote. This methodology would provide for more transparency. CM Nurse motioned to request Administration give City Council a formal written response on what the Pension Fund recommends and what the Mayor recommends and request HR to attempt to negotiate with the Fire Fighter's an agreement that would get all parties involved with COLAs moving forward. All were in favor of the motion. Ayes: Approved unanimously by the committee. Ayes. Kennedy, Gerdes, Nurse, Montanari (Alt). Nays: None. Absent: Rice 2b. Quarterly Financial Reports (Anne Fritz and Tom Greene) Ms. Fritz provided the committee with a summary of the quarterly financial statements for period ending March 31, In regards to investments, the City s all holdings governed by the City s Investment Policy is $586 million and the corresponding market value is $586.5 million with an unrealized gain of $432k. This report has already gone to the Investment Oversight Committee. The committee reviewed the report and had no comments or recommendations. Ms. Fritz discussed the City s Investment Policy and Alternative Investment Policy. There was discussion on whether if there was a correction in the market, would the City consider expanding the Alternative Investment. CM Nurse motioned to request upon a 10% more of market correction that the Investment Oversight Committee provide a recommendation to BF&T as to whether or not it would consider expanding the alternative investment at that time or later. Ayes: Approved unanimously by committee. Ayes: Kennedy, Gerdes, Nurse, Montanari (Alt) Nays: None. Absent: Rice.

4 Ms. Fritz provided the committee with an overview of the Debt Service Reports. The City issue debt in the current quarter relating to the Marina and the Marina Financing. This report showed the breakdown of the principle and interest for all general debt, as well as the source of funding where the debt would be repaid from. Ms. Fritz provided the committee with an overview on the Pension Reports and how there is a different method for funding and a different method for accounting. Overall, all three pension funds show positive results in the percentage funded. Ms. Fritz provided an overview of the Weeki Wachee Fund. The undesignated fund balance is about 1.5 million. The Weeki Wachee portfolio has had a gain since inception and is doing very well on returns. Mr. Greene provided the committee with the FY17 Second Quarter Budgetary Analysis and Fund Balance Report and a Quarterly Fund Status Report (the Stoplight Report). The report provided information on revenues, expenditures and ending fund balances based on actual performance in the second quarter and projected performance during the remainder of the FY17 3c. Airbnb to collect sales tax and tourist taxes from guests (Legal) No action. Deferred. E. Upcoming Meetings Agenda Tentative Issues 1. May 25, 2017 a. Changes to purchasing requirements to include life cycle costs. (Louis Moore) b. Quarterly Grants Reports (Shrimatee Ojah Maharaj) F. New Business Item Referrals G. Adjournment There being no further business, the meeting was adjourned at 9:24 a.m.

5 MEMORANDUM Budget, Finance & Taxation Committee: TO: FROM: Chair James A. Jim Kennedy, Jr.; Vice Chair Charles Gerdes; Karl Nurse; Darden Rice; and Ed Montanan (alternate). Louis Moore, Director, Procurement & Supply Management n DATE: May 25, 2017 SUBJECT: Revisions to the St. Petersburg Procurement Code Attached are recommended updates to the City s Procurement Code, including life cycle costing, job order contracting, and electronic commerce. LM :d re cc: Dr. Gary Cornwell, City Administrator

6 MEMORANDUM TO: FROM: The Honorable Darden Rice, Chair, and Members of City Councj5 Louis Moore, Director, Procurement & Supply Management çyq4ajv DATE: May 18, 2017 RE: Revisions to the St. Petersburg Procurement Code Attached is an ordinance amending certain sections of the St. Petersburg Procurement Code. The amendments include additions to the list of purchase exemptions; adding three new definitions and a revision of the definition for professional services. Other important changes include providing authorization to use job order contracts as a construction delivery method; and establishing life-cycle costs as an evaluation criteria. The amendment also includes returning of the City Council approval threshold for supplies and certain services to the $ threshold, with the exception of contracts and task orders for professional services, consulting services, and construction. The approval level for these purchases will remain at $50,000. Additionally, the amendment will permit negotiation with the lowest responsible and responsive bidder when the bids for a construction project exceed the available funds. Finally, a new section permitting electronic commerce and electronic signatures is being added. The revisions include: Sec Exemptions. Add - (g) animals, including fish, birds and horses. Add - (u) use management or operation of the Mahaffey Theater. Delete - (v) any Municipal Pier, and add, the area known as the Pier District. Add - (x) specialized police supplies. Sec Definitions and abbreviations. Add - new definitions for job order contracts, life-cycle costing and specialized equipment. Revise - the definition of professional services to include: retirement plan service provider. Sec Procurement Department; duties and responsibilities. Add - (b) job order contract procedures and owner-direct purchase policy to the list of administrative and operating procedures that must be developed by the POD.

7 Revisions to the St. Petersburg Procurement Code Page 2 Sec Approval Authority. Increase City Council approval threshold for supplies and certain services from $50,000 to $100,000, except for Construction, professional and Consulting services. These services will remain at the current $50,000 approval threshold. Sec Competitive sealed bidding. Revise - (e) Bid acceptance and evaluation. Add - life-cycle cost to the criteria for evaluating bids. (i) Bids for construction exceeding available funds. Add - authorize negotiations with the lowest responsive and responsible bidder when bids exceed project funds for construction projects. Sec Construction delivery methods and source selection. Add - (f) Job order contracting as a method of construction delivery. The POD may award a job order contraction through competitive sealed bidding, competitive sealed proposals or request for qualifications. Sec Electronic Commerce. Add - new section that permits the Procurement Department to use electronic transmission and electronic signatures to conduct business, including the solicitation of bids and proposals for supplies, services and construction. The revisions to the Procurement Code are underlined and struck through.

8 ORDINANCE NO. AN ORDINANCE AMENDING AND ADDING EXEMPTIONS TO THE CITY S PROCUREMENT CODE; ADDING AND REVISING DEFINITIONS; INCLUDING JOB ORDER CONTRACT PROCEDURES AND AN OWNER DIRECT PURCHASE POLICY UNDER THE PROCUREMENT DEPARTMENT DUTIES AND RESPONSIBILITIES; PROVIDING THAT PURCHASES AND CONTRACTS FOR SUPPLIES AND CERTAIN SERVICES FOR MORE THAN $100,000 SHALL REQUIRE CITY COUNCIL APPROVAL AND THAT PURCHASES AND CONTRACTS FOR PROFESSIONAL AND CONSULTING SERVICES AND CONSTRUCTION FOR MORE THAN $50,000 SHALL REQUIRE CITY COUNCIL APPROVAL; AMENDING THE CRITERIA AND PROCEDURES FOR BID ACCEPTANCE AND BID EVALUATION; PROVIDING FOR AN ADJUSTMENT TO THE BID PRICE IF BIDS FOR CONSTRUCTION EXCEED AVAILABLE FUNDS; INCLUDING JOB ORDER CONTRACT TO CONSTRUCTION DELIVERY METHODS; AUTHORIZING PROCUREMENT THROUGH ELECTRONIC MEANS; AND PROVIDING AN EFFECTIVE DATE. THE CITY OF ST. PETERSBURG DOES ORDAIN: SECTION 1. Sections 2-239(g), (u) and (v) of the St. Petersburg City Code are hereby amended to read as follows: (g) (u) (v) Any animals, including fish, birds, horses and ppolice canines; Supplies and services with respect to the use, management or operation of the Mahaffey Theater; Supplies and services with respect to the construction of tenant improvements and/or the use, management or operation of the area known as the pier district: any municipal pier; and SECTION 2. The St. Petersburg City Code is hereby amended by renumbering the current Section 2-239(w) to be Section 2-239(x) and adding a new Section 2-239(w) to read as follows: L1 Specialized Police Equipment: and SECTION 3. The following definitions are added to Section of the St. Petersburg City Code to read as follows: Job order conti act means a firm-fixed price indefinite delivery, indefinite quantity contract for the minor construction, repair, rehabilitation or alteration of a public improvement.

9 Life-cycle costing means an economic analysis to determine the lowest cost of ownership of a fixed asset (including purchase price. installation, operation, maintenance, disposal. and other costs) during the assets economic life. Specialized police equipment means specialized criminal investigation and enforcement equipment utilized by the police department whereby the publication of detailed specifications could impede a criminal investigation or have a detrimental effect on officer safety. SECTION 4. The definition of Professional services in Section of the St. Petersburg City Code is hereby amended to read as follows: Professional services means brokerage and financial investing, accounting, auditing, claim review, health services and medical exams, retirement plan service providers, and those (which include architect, engineering, landscape architecture, and registered surveying). professional services defined in F.S. as follows: SECTION 5. Section 2-241(b) of the St. Petersburg City Code is hereby amended to read (b) Consistent with this division, and subject to the approval of the Mayor, the POD shall have the responsibility to prepare administrative policies and operating procedures necessary to govern the procurement, management, control and disposal of all supplies, services and construction to be procured by the City. Such administrative policies and operating procedures shall be in writing and at a minimum, include the following: small purchase procedures; disposal of surplus supplies; sole source procedures; lob order contract procedures; an owner direct purchase policy: cost principals; tie bids; a list defining minor irregularities and examples thereof; specifications; protest and dispute procedures; contract management; debarment and suspension; Request for Qualifications process; and Request for Information process. follows: SECTION 6. Section of the St. Petersburg City Code is hereby amended to read as jj Except as otherwise provided by this division, the Mayor shall have the authority to purchase and approve contracts for supplies; and services, excluding professional services and consulting services, and construction for 55100, or less. Purchases and contracts for supplies; gp4 services, excluding professional services and consulting services, and construction for more than $5100, shall require City Council approval. ç Except as otherwise provided by this division, the Mayor shall have the authority to purchase and approve contracts for professional services (including task orders), consulting services and construction (including work orders pursuant to a job order contract) for $50, or less. Purchases and contracts for professional services (including task orders ). consulting services and construction (including work orders pursuant to a job order contract) for more than $50, shall require City Council approval.

10 as follows: SECTION 7. Sections (e) of the St. Petersburg City Code is hereby amended to read (e) SECTION Sections (i), to read as follows: Bid acceptance and bid evaluation. Bids shall be unconditionally accepted without this section. Bids shall be evaluated authorized based on the requirements and evaluation criteria set forth alteration or correction, except as in in the invitation for bids. Requirements and evaluation criteria may include criteria to determine inspection, testing, quality, life cycle costing, workmanship, acceptability, such delivery, and suitability for as a particular purpose. Any criteria that will affect the bid price (e.g., discounts, transportation costs, life cycle costing) shall be included on the pricing page set forth measured. 8. (3) in The St. Petersburg City Code and (k) to Sections the invitation for bids and shall be objectively is (3), hereby amended by renumbering the current (k) and (I) and adding a new Section (i) 251(0 fj) Bids for construction exceedinh available fluids. SECTION to read In the event that bids for any construction are solicited and the bids received exceed the available funds by no more than ten percent (10%). the POD. when determined by the POD to be negotiate an adjustment (including changes order to bring the bid within the amount of available funds. If the contract best interest of the City, bidder in to is authorized to o in the the bid price the scope of work) with the lowest responsible and responsive requires City Council approval, the POD shall make the report and bids to City Council with a a report and timely transmit recommendation concerning acceptance or rejection thereof, and the City Council shall thereupon approve or disapprove the recommendation of the POD. as The St. Petersburg City Code follows: 9. is hereby amended by adding a new Section 2- jfl Job order contracl The POD shall award a job order contract in accordance with the job order contract procedures authorized by this division by using one of the following processes: I. 2. The competitive sealed bidding process set forth in this division: The competitive sealed proposals/competitive negotiations process set forth in this division: or 3, The request for qualifications process set forth in this division , SECTION Electronic Commerce, to read as follows: 10. The St. Petersburg City Code is hereby amended by adding a new Section Sec Electronic commerce. (a) Authorization far the Use of Eke roizic Transactions. Subject to all applicable laws. the procurement of supplies, services and construction required pursuant to this

11 division may be conducted 1w electronic means or in electronic form. The POD may develop procedures reuardinq identification.securitv, the utili,ation ofdiaital and electronic sinatiires and conversion of electronic forms and information into a medium which permits inspection and copvin. ihi E/ectmnh Posting. The Cliv may electronically transmit solicitations. determinations and other matters related to the procurement of supplies, services and construction required pursuant to this division on the Internet. SECTION 11. As used in this ordinance, language appearing in struck-through type is language to be deleted from the City Code, and underlined language is language to be added to the City Code, in the section, subsection, or other location where indicated, Language in the City Code not appearing in this ordinance continues in full force and effect unless the context clearly indicates otherwise. Sections of this ordinance that amend the City Code to add new sections or subsections are generally not underlined. SECTION 12. The provisions of this Ordinance shall be deemed severable. The unconstitutionality or invalidity of any word, sentence or portion of this ordinance shall not affect the validity of the remaining portions. SECTION 13. In the event that this ordinance is not vetoed by the Mayor in accordance with the City Charter, it shall become effective after the fifth business day after adoption unless the Mayor notifies the City Council through written notice filed with the City Clerk that the Mayor will not veto the ordinance, in which case the ordinance shall take effect immediately upon filing such written notice with the City Clerk. In the event this ordinance is vetoed by the Mayor in accordance with the City Charter, it shall not become effective unless and until the City Council overrides the veto in accordance with the City Charter, in which case it shall become effective immediately upon a successful vote to override the veto. Approved as to form and content: City Attorney (designee) V First Reading May IS. 2017

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19 BUDGET, FINANCE AND TAXATION COMMITTEE PENDING/CONTINUING REFERRALS May 25, 2017 Topic Return Date 2017 Management Evaluation TBD Date of Referral 10/2016 by ordinance Prior Meeting Referred by City Council Staff Brad Scott Notes Brad Scott preparing scope re: Water Resources. Prebid meeting for RFP held 1/18/17. Mr. Scott to contact Chair Kennedy reference 2/23 return date. Updated return date on 1/23/17. Presentations to return on 3/23/17. (4/17/17 note added) to be scheduled to return to full council. Forgotten Firefighters 5/11/17 6/16/16 City Council Chris Guella Changes to purchasing requirements (to include life cycle costs) 5/25/17 1/21/16 City Council Louis Moore Consideration of a requirement for a city contractor securing future contracts of at least $2,000,000 to provide a minimum wage of at least $10.00 per hour with a schedule to raise this over time 6/8/17 1/5/17 4/27/17 City Council Councilmember Nurse resolution requesting Administration provide written notification to City Council of the response made by the Mayor to the Pension Board s recommendation pursuant to Section (n)(1) 1/12/17 Drafts in process, Dr. Cornwell to follow up with Mr. Moore for progress and a date to return. 4/13/17 added per Dr. Cornwell. 4/27/17 This item is now two motions: Motion 1 Proposal on minimum wage ($10, $11 & $12 estimate cost) for contracts of more than $1M. Motion 2 Proposal on minimum wage ($10 and $11 estimate cost) for city employees (to include: temps and less than 5yrs service). Staff to report back. Council Needs Assessment 6/8/17 Airbnb to collect sales tax and tourist taxes from guests 6/8/2017 deferred from 5/11/17 COW of 4/20/17 City Council 5/7/15 City Council M. Dema/Goodwin Was referred for further discussion at the 5/4/17 Council Meeting 1/14/16 referral to PSI for ordinance review; reffered to COW scheduled for 9/15/16. Discussed on 1/12/17, legal to investigate and report back at a future meeting.

20 Consideration of the establishment of a Citizens Advisory Committee for the Intown CRA 6/15/17 2/2/17 City Council Councilmember Nurse Consideration of a revision to the Small Business Enterprise ordinance 6/15/17 2/2/17 City Council Councilmember Nurse Utility Rate Study 7/27/17 8/24/17 Liz Makofske Refer PILOF discussion City Council TBD 1/26/17 COW 1/26/17 Alternate Funding for Water Resources Update (TIF) 7/27/17 9/8/16 Anne Fritz Discussion for use of Tourist Development Tax, including Arts TBD 8/21/14 City Council Joe Zeoli Funding Follow up 2018 Management Evaluation 10/12/17 Annual Ordinance Brad Scott 2018 Health Insurance Renewal 12/14/17 Annual BF&T Chris Guella To be discussed at COW on 1/26/17 Meeting to include David Downing of the TDC. Gerdes to follow up Quarterly Financial Reports Q1 2/9/17 Q2 5/11/17 Q3 8/24/17 Q4 11/19/17 Quarterly City Council Quarterly Grant Reports Q1 2/23/17 Q2 5/25/17 Q3 09/14/17 Quarterly City Council Q4 11/9/17 Discuss a ballot referendum to allow the St. Petersburg Baseball Commission a 10 year lease with a 10 5/25/17 5/18/17 Gerdes year renewal for the Walter Fuller Baseball Park Anne Fritz Tom Greene Shrimatee Ojah Maharaj

21 Consideration of Multi year shade tree planting program along City trails and roadways funded through the Weeki Wachee Fund TBD 5/18/17 Nurse 2018 Property Insurance Renewals Mar 18 Annual Blaise Mazzola/Chris Guella External Audit Mar 18 Annual Anne Fritz

22 BUDGET, FINANCE & TAXATION COMMITTEE WEEKI WACHEE PROJECT LIST May 25, 2017 TOPIC DATE REFERRED REFERRED BY RETURN DATE STAFF RESPONSIBLE SPECIAL NOTES Youth Sports Field at Thurgood Marshall Middle School CM Wheeler- Bowman TBD McBee/Jefferis Maximo Park Project Kornell TBD McBee/Jefferis Referred to COW on 7/14/16 Scheduled COW on 7/28/16 $150,000 allocated by council on 8/4/16