CALL TO ORDER: The meeting was called to order by Mayor Fland Sharp.

, at 7:00 P.M. In the Council Chambers, 11 North 3 rd Street, Jacksonville Beach, Florida. CALL TO ORDER: The meeting was called to order by Mayor Fland Sharp. OPENING CEREMONIES: Invocation was by Council Member Knight, followed by the Salute to the Flag. ROLL CALL: Mayor: Fland Sharp Council Members: Lee Buck Penny Christian Steve Hartkemeyer Rick Knight Tom Taylor Also present were City Manager George Forbes, and City Clerk Heidi Reagan. Council Member Pete Mittleman was absent. APPROVAL OF MINUTES: It was moved by Ms. Christian, seconded by Mr. Buck, and passed, to approve the minutes of the City Council Workshop held on November 30, 2009, and the City Council Meeting held on December 7, 2009, as presented. ANNOUNCEMENTS: Council Member Taylor announced that Dial-A-Ride is holding a Bowl-A-Thon on January 30 th at Beach Bowl. Neptune Beach and Atlantic Beach have each put together a team and Mr. Taylor wants to put a team together for Jacksonville Beach. He asked those that are interested to contact him. He explained that this is a charity event to raise money for Dial-A-Ride as they have lost grant funding. COURTESY OF THE FLOOR TO VISITORS: Speaker(s): Julie Cissel Komaroski, 2008 Ocean Dr., S. Spoke to the Council about the Jacksonville Beach Baseball Association. Ms. Komaroski asked for the City s help in establishing requirements for using the City name and fields to ensure that league play is equally available to all citizens. MAYOR AND CITY COUNCIL: N/A RC091221min Page 1 of 10

CITY MANAGER: (a) Approval of Monthly Financial Reports November 2009 Motion: It was moved by Ms. Christian, seconded by Mr. Buck, and passed, to accept the Monthly Financial Reports of November 2009. (b) Approval of New Contract for Special Magistrate Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to authorize the Mayor and City Manager to execute a new contract with Crystal T. Broughan, Esq. for Special Magistrate services with her new law firm and authorize an hourly fee of $175.00. Roll call vote: Ayes Buck, Christian, Hartkemeyer, Knight, Taylor, and Mayor Sharp; (c) Award Parking Consultant Services Agreement to Kimley-Horn and Associates, Inc. Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to authorize the Mayor and City Manager to execute a contract with Kimley-Horn and Associates, Inc., for parking consulting services, as described in a December 9, 2009, memorandum from Police Chief Bruce Thomason, entitled Award of Parking Consultant Services Agreement to Kimley-Horn & Associates, Inc.. (RFP #02-0910 Initial, three-year agreement with an option for two, one-year extensions) Discussion: Mr. Forbes stated that two representatives, Bill Schilling and Lara Diettrick, from Kimley-Horn and Associates were present to answer any questions the Council may have. Lara Diettrick and Bill Schilling came forward. Ms. Christian asked how long the company has been in business, to which Ms. Diettrick responded that they have been in business 42 years and are a full-service environmental engineering firm. Ms. Christian asked what other beachside communities they worked with. Ms. Diettrick stated she would get a list together and send it to Ms. Christian. Roll call vote: Ayes Christian, Hartkemeyer, Knight, Taylor, Buck, and Mayor Sharp; RC091221min Page 2 of 10

(d) Award RFP 01-0910 Janitorial Services for Oceanfront Restroom Cleaning and Municipal Building Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to award RFP #01-0910 Janitorial Services for Oceanfront Restroom Cleaning and Municipal Building for a period of 36 months with an option to renew for up to three (3) additional one-year terms, if mutually agreeable to the City and the successful bidder and if approved by the City Manager, as described in the memorandum from the Recreation & Parks Director, dated December 13, 2009. (RFP awarded to four companies United States Service; Treasure Enterprises; Coverall of North FL; M & M Cleaning) Roll call vote: Ayes Hartkemeyer, Knight, Taylor, Buck, Christian, and Mayor Sharp; (e) Recommendation on Awarding Bid No. 0910-04 Electrical Supplies, 12-Months Requirements Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to award Bid Number 0910-04 to the lowest bidders meeting specifications as recommended in the December 3, 2009, memorandum from Don Ouchley to George Forbes entitled Electric Supplies 12 Months Requirements. Roll call vote: Ayes Knight, Taylor, Buck, Christian, Hartkemeyer and Mayor Sharp; (f) Recommendation on Awarding Bid No. 0910-02 Purchase of Wire and Cable, 12 to 36 Months Requirements Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to award Bid Number 0910-02 to the lowest bidders as described in a memo from Don Ouchley to George Forbes, dated December 14 th, entitled Bid for Purchase of Wire and Cable. (List of lowest bidders, who met specifications Gresco Utility Supply, Inc.; Stuart C. Irby Co.; HD Supply Utilities, Inc.; American Wire Group, Inc.) Roll call vote: Ayes Taylor, Buck, Christian, Hartkemeyer, Knight and Mayor Sharp; (g) Recommendation on Awarding Bid No. 0910-03, Avalon Residential Infrastructure Improvements Project Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to award Unit Price Bid Number 0910-03, titled Avalon Residential Infrastructure Improvements Project, to Sayar Enterprises, Incorporated, doing business as Southern Development Corporation, as described in the memorandum from the Public RC091221min Page 3 of 10

Works Director, dated December 9, 2009. (This bid award is contingent on the adoption of the assessment ordinance - No. 2009-7987.) Discussion: Mr. Forbes pointed out that this bid award is contingent on the Council adopting the assessment ordinance. This ordinance is on the agenda and will be discussed later in the meeting. Because this ordinance requires a 30-day public notification, the ordinance will not be on the agenda for adoption (2 nd reading) until the February meeting. He explained that the city will pay to have the work done initially and then will assess the property owners to pay the City back. They will have 4 years to pay the City back at 8% interest. They can also choose to pay the City back within 30 days of the assessment and there will be no interest charge. Roll call vote: Ayes Buck, Christian, Hartkemeyer, Knight, Taylor and Mayor Sharp; (h) Approval to Execute Contract with R.A.W. Construction, LLC for Installation of a Natural Gas Distribution System in Response to Bid No. 0910-01 RESOLUTIONS: Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to approve the Mayor and City Manager to execute a contract with R.A.W. Construction, LLC, for construction of a natural gas distribution system for Beaches Energy Services contingent upon execution of the Design and Construction Management and the Gas System Management Agreements with TECO Partners, Inc. Discussion: Mr. Forbes stated that the contingency is based on the execution of 5 contracts, two of which still have an item to be resolved which is the liability insurance for TECO. That is still being worked on. Mr. Forbes explained that if they cannot come to an agreement, there would be no project. He then reviewed the status of the (5) five contracts. Roll call vote: Ayes Christian, Hartkemeyer, Knight, Taylor, Buck and Mayor Sharp; (a) Resolution No. 1847-2009 Mayor Sharp requested the City Clerk read Resolution No. 1847-2009, by title, whereupon Ms. Reagan read the following: A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AGREEMENTS WITH TAMPA ELECTRIC COMPANY (TECO) AND ITS SUBSIDIARIES FOR CONSTRUCTION MANAGEMENT AND OPERATION OF A RC091221min Page 4 of 10

NATURAL GAS DISTRIBUTION SYSTEM FOR BEACHES ENERGY SERVICES IN ITS SERVICE AREA. Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to adopt Resolution No. 1847-2009, authorizing the Mayor and City Manager to execute agreements with TECO and its subsidiaries to provide natural gas services for Beaches Energy Services Natural Gas Distribution System, as outlined in a December 15th memorandum from Don Ouchley to George Forbes entitled, Natural Gas Distribution System for Beaches Energy Services, as read by title. Discussion: Mr. Forbes stated he would like to review the (5) five contracts and then introduce members from TECO to discuss the project. The contracts are as follows: 1. Territorial Boundary This agreement states that the Beaches Energy electric service territory is the same as the natural gas service territory. 2. Gas Transportation Agreement This is the agreement for getting the gas to the City there is only one gas main in Jacksonville Beach it s on Penman Road and is owned by TECO. 3. Gas Management and Supply Agreement This agreement is for the gas itself. According to our business model, TECO will be monitoring the gas loads 24 hours a day, 7 days a week and will be providing the gas supply work for the City. Mr. Forbes also pointed out that as part of these agreements the large commercial customers don t necessarily have to buy gas from Beaches Energy, they can buy from someone else if they wish. 4. Gas System Management Agreement This agreement states that Beaches Energy will own the system and will read the meters, do the billing and the customer service, but the actual day-to-day operations and maintenance will be performed by TECO. This agreement has 5- year terms. After the initial 5-year term, it can roll over for 4 additional 5-year terms. At the end of each 5-year term, the city will have to come to an agreement on the price we will pay TECO for management of the system. It also states that the amount of insurance required can be renegotiated at the end of each 5-year term. Currently the requirement is $1,000,000 for TECO. The City is adamant that the insurance requirement may, by mutual agreement be increased at the beginning of each 5-year term. Mr. Forbes stated that he is not clear whether TECO is willing to agree with this provision. 5. Construction Management Agreement - This agreement provides for oversight of the construction to ensure the gas line is installed properly and in the right place, it establishes a list of deliverables, including sales of gas to customers. The target is to get 80 customers on the system quickly. The system is designed for large commercial customers. This will not exclude residential customers along the line from hooking up to RC091221min Page 5 of 10

it if they desire, but the main focus is to attract large commercial customers as they are the most cost effective customers. Mr. Forbes stated that there are still some issues with liability. The City wants TECO to obtain an additional $1,000,000 construction policy for the contract. TECO s position is that they will supply the $1,000,000 liability policy for the long-term management agreement, but they object to supplying an additional $1,000,000 policy for the construction agreement. With the exception of the liability issue, all other aspects of this project have been resolved and agreed to. Mr. Forbes stated that he is asking the Council to go ahead and approve these contracts as long as they re in substantial compliance, which means that the Mayor and the City Manager could agree to any non-substantial change to the agreement if necessary. He explained that if there was any change that changed the intent of the agreements as described, it would have to go back to the Council for approval. Speaker(s): Glenn Wilkes, Project Manager from TECO stated that they are looking forward to the partnership and working with Beaches Energy Services on this project. Jim Overby, 21 Burling Way - Mr. Overby stated concerns about tearing up the newly paved 3 rd Street for this project. He also expressed concerns about the safety of natural gas. Roll call vote: Ayes Hartkemeyer, Knight, Taylor, Buck, Christian and Mayor Sharp; (b) Resolution No. 1850-2009 Mayor Sharp requested the City Clerk read Resolution No. 1850-2009, by title, whereupon Ms. Reagan read the following: A RESOLUTION AMENDING THE CITY OF JACKSONVILLE BEACH PAY AND CLASSIFICATION PLAN FOR DEPARTMENT DIRECTORS AND NONUNION MANAGERIAL, PROFESSIONAL, ADMINISTRATIVE AND UNCLASSIFIED CITY POSITIONS EFFECTIVE JANUARY 1, 2010 Motion: It was moved by Ms. Christian, seconded by Mr. Buck, to adopt Resolution No. 1850-2009, adding language to address starting pay rates that may fall below minimum wage in the Pay and Classification Plan, as read by title. Roll call vote: Ayes Knight, Taylor, Buck, Christian, Hartkemeyer and Mayor Sharp; RC091221min Page 6 of 10

ORDINANCES: (a) Ordinance No. 2009-7982 Second Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7982, on its second reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE AMENDING CHAPTER 2 ARTICLE V, DIVISION 7, FIREFIGHTERS RETIREMENT SYSTEM OF THE CODE OF ORDINANCES OF THE CITY OF JACKSONVILLE BEACH; PROVIDING FOR COMPLIANCE WITH CHAPTER 2009-97, LAWS OF FLORIDA; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR CODIFICATION AND PROVIDING AN EFFECTIVE DATE. 2009-7982, which adds provisions to the Firefighters Retirement System as required by Ch. 2009-97, Laws of Florida, on its second reading, as read by title. Roll call vote: Ayes Taylor, Buck, Christian, Hartkemeyer, Knight and Mayor Sharp; (b) Ordinance No. 2009-7983 Second Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7983, on its second reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE AMENDING CHAPTER 2 - ARTICLE V, DIVISION 6, POLICE OFFICERS RETIREMENT SYSTEM OF THE CODE OF ORDINANCES OF THE CITY OF JACKSONVILLE BEACH; PROVIDING FOR COMPLIANCE WITH CHAPTER 2009-97, LAWS OF FLORIDA; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR CODIFICATION AND PROVIDING AN EFFECTIVE DATE. 2009-7983, which adds provisions to the Police Officers Retirement System as required by Ch. 2009-97, Laws of Florida, on its second reading, as read by title. RC091221min Page 7 of 10

Roll call vote: Ayes Buck, Christian, Hartkemeyer, Knight, Taylor, and Mayor Sharp; (c) Ordinance No. 2009-7984 Second Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7984, on its second reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE AMENDING CHAPTER 2, ARTICLE V, DIVISION 5, GENERAL EMPLOYEES RETIREMENT SYSTEM OF THE CODE OF ORDINANCES OF THE CITY OF JACKSONVILLE BEACH; PROVIDING FOR A POP-UP PROVISION FOR DROP PARTICIPANTS AND RETIREES; PROVIDING FOR COMPLIANCE WITH PROTECTING FLORIDA INVESTMENTS ACT; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR CODIFICATION AND PROVIDING AN EFFECTIVE DATE. 2009-7984, which provides and option for a retiree to revert to payment option SL (single life) for the General Plan in the event the retiree is predeceased by his or her joint annuitant, on its second reading, as read by title. Roll call vote: Ayes Christian, Hartkemeyer, Knight, Taylor, Buck and Mayor Sharp; (d) Ordinance No. 2009-7985 Second Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7985, on its second reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE AMENDING CHAPTER 2, ARTICLE V, DIVISION 7, FIREFIGHTERS RETIREMENT SYSTEM OF THE CODE OF ORDINANCES OF THE CITY OF JACKSONVILLE BEACH; PROVIDING FOR A POP-UP PROVISION FOR DROP PARTICIPANTS AND RETIREES; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR CODIFICATION AND PROVIDING AN EFFECTIVE DATE. 2009-7985, which provides an option in the Firefighters Plan for a retiree to RC091221min Page 8 of 10

revert to payment Option I in the event the retiree is predeceased by his or her joint annuitant, on its second reading, read by title. Roll call vote: Ayes Hartkemeyer, Knight, Taylor, Buck, Christian and Mayor Sharp; (e) Ordinance No. 2009-7986 Second Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7986, on its second reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE AMENDING CHAPTER 2, ARTICLE V, DIVISION 6, POLICE OFFICERS RETIREMENT SYSTEM OF THE CODE OF ORDINANCES OF THE CITY OF JACKSONVILLE BEACH; PROVIDING FOR A POP-UP PROVISION FOR DROP PARTICIPANTS AND RETIREES; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR CODIFICATION AND PROVIDING AN EFFECTIVE DATE. 2009-7986, which provides an option in the Police Officers Plan for a retiree to revert to payment Option I in the event the retiree is predeceased by his or her joint annuitant, on its second reading, as read by title. Roll call vote: Ayes Knight, Taylor, Buck, Christian, Hartkemeyer and Mayor Sharp; (f) Ordinance No. 2009-7987 First Reading Mayor Sharp requested the City Clerk read Ordinance No. 2009-7987, on its first reading, by title, whereupon Ms. Reagan read the following: AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS TO INCLUDE, BUT NOT LIMITED TO ROADWAY, STORMWATER COLLECTION LINES, DRINKING WATER DISTRIBUTION LINES, SANITARY SEWER COLLECTION LINES AND ASSOCIATED WORK IN THE UNDEVELOPED PORTION OF AVALON SUBDIVISION IN THE CITY OF JACKSONVILLE BEACH, FLORIDA; PROVIDING FOR THE PAYMENT OF COST THEREOF BY THE IMPOSITION OF SPECIAL ASSESSMENTS TO BE LEVIED AND ASSESSED AGAINST THE PROPERTIES RC091221min Page 9 of 10

ABUTTING OR FRONTING UPON SUCH IMPROVEMENTS, IN PROPORTION TO THE BENEFITS BESTOWED UPON EACH PROPERTY ASSESSED; AND DESIGNATING A TIME FOR HEARING OBJECTIONS TO THE ENFORCEMENT THEREOF AND PROVIDING FOR OTHER MATTERS RELATING THERETO. 2009-7987 for the special assessment of properties benefitting from the City financed public infrastructure improvements to be constructed in the undeveloped portion of the Avalon Subdivision, on its first reading, as read by title. Discussion: Mr. Forbes stated that the bids for this project were excellent. The Director of Public Works has sent a letter to the owners in the Avalon subdivision telling them what the estimated assessment will be. He also informed them about the meeting tonight and the meeting to be held in February 2010 (February 1 st ). Mr. Forbes explained that this ordinance must be advertised for 30 days before the second reading, so the second reading will not be until the first meeting in February. Should the Council adopt this ordinance at the February meeting, the project would begin shortly thereafter. Roll call vote: Ayes Buck, Christian, Hartkemeyer, Knight, Taylor, and Mayor Sharp; Adjournment There being no further business coming before the Council, Mayor Sharp adjourned the meeting at 7:49 pm. Submitted by: Heidi Reagan City Clerk Approval: /s/fland O. Sharp Mayor Date: January 19, 2010 RC091221min Page 10 of 10