Finance Committee

City of Jacksonville 117 W Duval St Jacksonville, FL 32202 Meeting Minutes Tuesday, July 20, 2021 9:30 AM Council Chambers 1st Floor, City Hall Finance Committee Ron Salem, Pharm. D., Chair Danny Becton, Vice Chair Michael Boylan Matt Carlucci Terrance Freeman Reggie Gaffney Ju'Coby Pittman - Excused Absence Sam Newby - Alternate Legislative Assistant: Bernadette Smith Legislative Services Manager: Melanie Wilkes Council Auditor: Kim Taylor Asst. Council Auditor: Phillip Peterson Chief of Research: Jeff Clements Deputy General Counsel: Paige Johnston Administration: Rachel Zimmer Finance Committee Meeting Minutes July 20, 2021 If a person decides to appeal any decision made by the Council with respect to any matter considered at such meeting, such person will need a record of the proceedings, and for such purposes, such person 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 based. You may attend the meeting in-person at the physical location- City Council Chambers, but CDC guidelines will be adhered to due to COVID-19. Concurrent with the expiration of Mayor Curry's Emergency Executive Proclamation 2020-005, any member of the public entering City-owned public buildings may choose to wear a mask inside the building. Council strongly encourages the use of masks for all employees and visitors, especially when social distancing at 6 feet (or more) is not possible. Council will make masks available for visitors and the public. Attendance: Council Members Ron Salem (Chair), Danny Becton, Michael Boylan, Matt Carlucci, Terrance Freeman, Reggie Gaffney Excused: Council Member Ju’Coby Pittman Also: Council Members Sam Newby, Randy DeFoor, Rory Diamond, LeAnna Cumber, Brenda Priestly Jackson, Al Ferraro; Paige Johnston, Peggy Sidman and Susan Grandin – Office of General Counsel; Kim Taylor and Phillip Peterson – Council Auditor’s Office; Jeff Clements – Council Research Division; Bernadette Smith and Melanie Wilkes – Legislative Services Division; John Pappas – Public Works Department; Kirk Wendland – Office of Economic Development; Joey Greive – Finance and Administration Department; Mike Weinstein – Kids Hope Alliance Meeting Convened: 9:42 AM Meeting Adjourned: 11:44 AM Chairman Salem convened the meeting and the attendees introduced themselves for the record. President Newby thanked the members for being willing to undertake the duties of the Finance Committee and said he would be serving temporarily as a committee member until the return of Council Member Pittman from her hospitalization. Mr. Salem reviewed the rules of committee procedure for the upcoming year. There will be no standing agenda meeting – he will review the agenda for action items at the start of each meeting. During debate he will recognize committee members to speak first, then visiting council members. He said he prefers not to use the clock to limit speaking time but reserves the right to do so if debate on an issue gets long. He will have the Council Auditor make her presentations at the beginning of meetings so they get appropriate attention . Mr. Salem said he intends to follow the agenda in order unless there’s a need to accommodate a council member’s schedule or a large group of interested parties in the audience. He will entertain public comment at the end of the meeting as time permits; comments should be germane to items on the agenda. The Chair reviewed the marked agenda. Item #12 (2021-375) will be moved up to the front of the agenda at the request of Council Member Priestly Jackson. Page 1 of 21 Finance Committee Meeting Minutes July 20, 2021 Council Auditor Discussion • General Fund/General Services District Recapture Memo for the FYE 9/30/20 • Report #763B: Follow-up on JTA Payroll Audit • Report #769A: Follow-up on State Housing Initiatives Partnership Audit • Rollback Millage Rate Resolution for FY 2021/22 Page 2 of 21 Finance Committee Meeting Minutes July 20, 2021 Council Auditor Kim Taylor discussed several recent Auditor’s Office reports and other items: • Report #763B – Second Follow-up on JTA Payroll Audit: 24 issues were identified in the original audit; 3 are left unresolved as of this second follow-up, which should be cleared with the implementation of a new payroll system at JTA in October. • Report #769A - Follow-up on State Housing Initiatives Partnership Audit: 14 issues were identified in the original audit. Three remain unresolved: 1) mortgages not signed and notarized at the time the contract is signed; 2) mortgage amounts not in agreement with the final contract amount due to lack of lien additions or reductions; 3) lack of reconciliation between the City’s accounting system and the Mortgage Office System. • General Fund/General Services District Recapture Memo for the FYE 9/30/20: the City administration is required to annually review unused funds that could be recaptured to the General Fund. Eight items were identified totaling $12,484,916. KHA plans to file legislation to recapture its unspent funds to its budget. The annual loan from the General Fund to the Solid Waste Division was lower this year due to federal CARES Act funds. There was 1 fund with a negative balance (City Venues), which will be addressed in upcoming legislation appropriating federal American Recovery Plan funds. Council Member Boylan asked how much has accumulated in fines to solid waste haulers for poor performance; Kim Taylor will research and report. Council Member Becton asked about the amounts of year-end fund balances. Ms. Taylor said without the previous fiscal year being closed out, she would prefer that CFO Joey Greive address that based on what information is currently available. Mr. Becton recommended that the administration make a presentation on the 1Cloud financial management system conversion progress and challenges. Chairman Salem said he will schedule that for the next meeting. Council Member Carlucci asked about issue of the solid waste fee being insufficient to meet the mandated 85% of costs coverage rate. Ms. Taylor said that perennial issue will need to be addressed at some point with an increase in the fee, revised services, or reduced costs . • Rollback Millage Rate Resolution for FY 2021/22: this bill will be taken up next Tuesday as a one-reading in-and-out emergency to meet the August 14th reporting date to the Property Appraiser for advertising the proposed millage rates on the TRIM notice. The Auditor’s Office traditionally recommends tentatively adopting a slightly higher millage rate than that proposed by the Mayor to provide a buffer, but she will not be doing that this year because of the amount of CARES Act funds received this year and the growth in the value of a mill at the current millage rate (producing an additional estimated $54 million in revenue). Discussion on CARES Act Council Contingency balance of $306,120.64: Chairman Salem said he had asked for proposals for allocation of this available funding to be submitted by council members by last Friday to be reviewed for eligibility. 8 proposals were received totaling $330,100; the current available balance is $306,120.64. Council Member Cumber offered an additional proposal for $78,046.69 for the JSO SWAT team for purchase of weapons and associated equipment. Ms. Cumber explained that currently SWAT team members purchase their own specialized tactical equipment; this proposal would accelerate the acquisition of this specialized equipment with federal funds so that SWAT team members would not need to use their personal resources. CFO Joey Greive said he had reviewed Ms. Page 3 of 21 Finance Committee Meeting Minutes July 20, 2021 Cumber’s proposal and finds that the proposed uses are federal funding-eligible. An ordinance to allocate $148M in American Recovery Plan funds has already been filed, another $30M ARP bill will be introduced next week. Chairman Salem asked if the requested equipment is already budgeted for acquisition by the JSO in the new budget; Mr. Greive said he did not believe that it was covered in the budget. Committee members discussed the propriety of adding an additional request that did not come in before the 5:00 p.m. Friday deadline. Assistant Council Auditor Phillip Peterson said each agency would get 92.7% of its request if the 8 funding proposals were all reduced by an equal percentage to meet the $ 306,120.64 available balance. Motion: approve all 8 proposals at a 7.26% reduction from the requested level as an in-and-out emergency ordinance next Tuesday sponsored by the Finance Committee – approved unanimously. Discussion on CARES Act Council Contingency balance of $306,120.64 Visiting CM's: CM Cumber CM Diamond CM DeFoor CM Priestly Jackson (2021-375) CM Ferraro Page 4 of 21 Finance Committee Meeting Minutes July 20, 2021 Item/File No. Title History 1. 2020-0620 ORD-MC Creating a New Part 1 Possession of Twenty Grams or Less of Cannabis or Paraphernalia), Chapt 606 (Drugs), Ord Code, to Create A Civil Citation Within the City of Jax Ord. Code for Possession of 20 Grams or Less of Cannabis or Paraphernalia; Amending Sec. 609.109 (Applicable Chapters and Parts), Chapt. 609, (Code Enforcement Citations), Ord. Code, to Establish New Class Fines in Schedule “A” for Violations of Part 1, Chapt. 609 (Code Enforcement Citations), Ord Code, to Establish New Class of Fines in Schedule “A” for Violations of Part 1 (Possession of 20 Grams or Less of Cannabis or Paraphernalia), Chapt. 606 (Drugs), Ord. Code.Providing for Severability. (Johnston) (Introduced by CM Dennis) 10/13/20 CO Introduced: NCSPHS, F 10/19/20 NCSPHS Read 2nd & Rerefer 10/20/20 F Read 2nd & Rerefer 10/27/20 CO PH Read 2nd & Rereferred: NCSPHS, F Public Hearing Pursuant to Chapt. 166, F.S. & CR 3.601 – 10/27/20 DEFER (At request of CM Dennis) 2. 2021-0079 ORD Approp $1,037,130.00 from FEMA through the State of FL Div of Emergency Mgmt. Under the Hazard Mitigation Assistance Grant Prog. to Fund the Acquisition & Installation of 7 Permanent Generators at 7 Storm Water Pump Station Sites within Duval Cty, Amending the 2021-2025 5 Yr CIP Apvd by Ord 2020-505-E to Purchase & Install Permanent Emergency Generators at the Following Locations: Hillman Dr., Myrtle Ave., Hilly Rd., Bradley Rd., Jessie St., McGrits Creek Park/Lew Brantley & Sandalwood Canal; Providing for City Oversight by the Dept. of Public Works, Public Bldgs Div (B.T. 21-038) (Staffopoulos) (Req of Mayor) 2/9/2021 CO Introduced: NCSPHS, TEU, F 2/16/21 NCSPHS Read 2nd & Rerefer 2/16/21 TEU Read 2nd & Rerefer 2/17/21 F Read 2nd & Rerefer 2/23/21 CO PH Read 2nd & Rereferred: NCSPHS, TEU, F Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 – 2/23/21 DEFER (At request of the Administration) Page 5 of 21 Finance Committee Meeting Minutes July 20, 2021 3. 2021-0347 ORD Auth the Mayor & Corp Secretary to Execute an Amendmnt to the Contract with Greenscape of Jax, Inc. for 3 Planting at the Jax Equiestrian Ctr to Change the Payment Terms to Greenscape from a “Reimbursement After Payment to Subcontractor” Basis to a “Work Performed & Invoiced” Basis. (Grandin) (Introduced by CM White) 6/8/21 Introduced: NCSPHS, F 6/14/21 NCSPHS Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, F 7/19/21 NCSPHS Substitute/Approve 6-0 7/20/21 F Substitute/Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 Phillip Peterson explained the amendment. In response to a question from CM Boylan, he explained the difference between paying for tree planting work via a reimbursement to Greenscape and paying an invoice directly to the subcontractor for work contracted by Greenscape. Assistant General Counsel Susan Grandin explained how the reimbursement process currently works and what protections are in place to ensure that work is performed and subcontractors are paid. Council Member Becton suggested that a release of lien requirement be incorporated into the City’s process. SUBSTITUTE/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman NCSPHS SUBSTITUTE 1. Extends "Work Performed & Invoiced" basis of repayment to future Level 3 Planting contracts by revising the Form Agreement approved by 2020-213-E to reflect the same 2. Attaches a Revised Exhibit 1 (First Amendment with Greenscape) to reflect the Revised Form Agreement and correct scrivener's 3. Corrects scrivener's on Pg. 1, line 8 • The Greenscape contract is for $241,559 with a retainer of 10% to be held for 2 years after planting for maintenance of the project • 2020-213-E appropriated $1 million for Level 3 Planting, of which approximately $750,000 is currently available Page 6 of 21 Finance Committee Meeting Minutes July 20, 2021 4. 2021-0348 ORD Approp $ 600,000.00 to the Lower Eastside Drainage Proj from De-Approp Citywide Capital Projs; Purpose of Approp; Amending the 2021-2025 5 Yr CIP Apvd by Ord 2020-505-E to Transfer Funding to the Lower Eastside Drainage-01 Proj.(B. T. 21-077) (Staffopoulos) (Req of Mayor) 6/8/21 Introduced: NCSPHS, F 6/14/21 NCSPHS Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred: NCSPHS, F 7/19/21 NCSPHS Amend/Approve 6-0 7/20/21 F Amend/Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 AMEND/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman AMENDMENT Attach revised Exhibit 2 (CIP) to properly reflect CIP project status • $10.5 million has previously been appropriated for this project, of which $130,000 is still available Page 7 of 21 Finance Committee Meeting Minutes July 20, 2021 5. 2021-0351 ORD Approp $20,000 from the SJCIC Contingency for the Literacy Pros of Jax, Inc. Citywide Reading Campaign; Apv, & Auth the Mayor, or his Designee, & Corp Secretary to Execute & deliver, an Agreemnt btwn the City of Jax & Literacy Pros of Jax, Inc.; Invoking the Exception in Sec 126.107 (G), Ord Code, to Allow Direct Contract with Literacy Pros of Jax, Inc. to a Literacy Campaign; Waiving Sec 110.112 (Advance of City Funds; Prohibition Against), Pt 1 (The City Treasury), Chapt 110 (City Treasury), Ord Code, to Allow for a Partial Advance Paymnt by the City; Providing for Oversight by the Office of Public Affairs (Sidman) (Introduced by CM DeFoor) (Co-Sponsor CMs Salem,Newby, Freeman, R. Gaffney,Boylan,Priestly Jackson,White, Carlucci & Hazouri) 6/8/21 Introduced: NCSPHS, F, R 6/14/21 NCSPHS Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/15/21 R Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, F, R 7/19/21 NCSPHS Amend/Approve 6-0 7/20/21 F Amend/Approve 7-0 7/20/21 R Amend/Approve 6-1 (CM Diamond) Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 – 6/22/21 CMs Freeman, Newby, Carlucci and Gaffney asked to be added as co-sponsors AMEND/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman AMENDMENT 1. Correct scrivener’s errors 2. Attach revised Exhibit 2 (Scope of Services) to remove measures of impact 3. Attach revised Exhibit 3 (Contract) to revise term end date to 2/28/22, clarify payment terms, remove measures of impact from scope, and include Council Auditor in audit rights • Appropriates $20,000 from the Social Justice Committee contingency account to provide funding to Literacy Pros of Jacksonville for a literacy and reading campaign to run through January 2022 • Funding will be used to develop and launch two billboards in high crime areas • Waives Sec. 110.112 (Advance of City funds; prohibition against) to allow for partial advance payment of $10,000 within 30 days of the effective date of the agreement • Final payment of $10,000 will be made within 30 days of completion of the services Page 8 of 21 Finance Committee Meeting Minutes July 20, 2021 6. 2021-0352 ORD Concerning the Consent Req by the Boggy Branch Community Developmnt Dist (“CDD”) to Exercise Special Powers Related to Recreational & Security Facilities, & Waste Collection & disposal, Pursuant to Sec 190.012 (2) (A), Sec 190.012 (D), & Sec 192.012 (F), F.S., & Sec 92.15, Ord Code; Amending Chapt 92 (Uniform Community Development Dists), Sec 92.02 (Definitions) to Track Statutory Definition; Amending Sec 92.15 (Consent Requests) to Clarify that Consent for Special Powers may be Requested at the Time of a Petition Regarding a CDD; Amending Sec 92.16 (Notice of CDD Establishment & Registered Office), Amending Sec 92.17 (Budgets & Meeting Schedules), Amending Sec 92.18 (Public Facilities Reports) to Comport with the Revised Statutory Citations & Amending Sec 92.22 (Existing Community development Dists), Ord Code, to include the Grant of this Consent for Special Powers to the Boggy Branch CDD. (Grandin) (Introduced by TEU Committee, Pursuant to Chapt 92, Ord Code) 6/8/21 Introduced: TEU, F 6/14/21 TEU Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO Read 2nd & Rereferred: TEU, F Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –7/27/21 DEFER (At the request of CM Becton) Page 9 of 21 Finance Committee Meeting Minutes July 20, 2021 7. 2021-0353 ORD Approp $150,000 from the SJCIC to Kids Hope Alliance (“KHA”) to Allow KHA to Provide Funding to Operation Save Our Sons, Inc.; Amend 4th Revised Schedule M to 2020-511-E; Auth the Mayor, or his Designee & Corp Sec. &/or the CEO of the KHA to Execute & Deliver a Svcs Contract w/Operation Save Our Sons, Inc. to Provide the Svcs Specified in this Ord; Invoking the Exception of Sec 126.107 (G) (Exemptions), Pt 1 (General Regulations), Chapt 126 (Procurement Code), Ord Code, Regarding the Svcs to be Provided by Operation Save Our Sons, Inc.; Waiving the Requirements of Chapt 77 (Kids Hope Alliance), Sec 77.111 (A) (Provider Contracts), Ord Code, to Exempt the Svcs to be Provided by Operation Save Our Sons, Inc. from Competitive Procurement; Providing for Oversight by the KHA (Sidman) ( Introduced by CM Newby) (Co-Sponsor CMs Salem, R. Gaffney, Freeman,Boylan, DeFoor,White, Carlucci & Priestly Jackson) 6/8/21 Introduced: NCSPHS, F, R 6/14/21 NCSPHS Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/15/21 R Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, F, R 7/19/21 NCSPHS Amend/Approve 6-0 7/20/21 F Amend/Approve 7-0 7/20/21 R Amend/Approve 5-2 (CMs Cumber & Diamond) Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 CMs Gaffney, Freeman and Carlucci asked to be added as co-sponsors. CM Boylan recommended adding all members of Social Justice and Community Investment Committee as co-sponsors, to which the Chair agreed. AMEND/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman Page 10 of 21 Finance Committee Meeting Minutes July 20, 2021 AMENDMENT 1. Correct section numbering in bill 2. Correct justification for waiver of Sec. 77.111(a) 3. Attach revised Exhibit 4 to include updated insurance requirements • Appropriates $150,000 from the Social Justice Committee contingency account to provide funding to Operation Save our Sons for the MenTurn program targeting youth aged 15-18 • Operation Save our Sons will be compensated at a rate of $18,750 quarterly plus $10 for each session of programming provided to participants • Waives the requirement in Sec. 77.111(a) that provider contracts shall be competitively procured under Chapter 126, Ordinance Code, via an evaluated bid process in order to direct contract with the Operation Save our Sons for the MenTurn program 8. 2021-0355 ORD Apv & Auth the Mayor, or His Designee, & the Corp Secretary to Execute & Deliver that Certain Lease Agreemnt Btwn the City of Jax (“Lessor”) & Vystar Credit Union (“Vystar”) for lease to Vystar of Approximately 72 Sq. Ft. of Space at the Hogan St. entrance of the St. James Building, located at 117 West Duval St., Jax, FL 32202 (R.E. #073753-0000), for Vystar’s Continued Operation & Maintenance of an Automated Teller Machine (“ATM”) Kiosk Directly outside the Hogan St. entrance for the use and benefit of the Public, for an Initial Term of 3 Years Commencing 6/1/21 – 5/31/24, with options to renew for up to 2 Additional 3 Year Terms, at an Initial Annual Lease Fee of $1,824.48 ($25.34 Per Sq. Ft.), with 3% Annual Increases Thereafter; Providing for Oversight of Lease Acquisition by the Real Estate Division of the Dept. of Public Works, & Oversight by the Dept. of Public Works Thereafter. (Staffopoulos) (Req of Mayor) 6/8/21 Introduced: TEU, F 6/14/21 TEU Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:TEU, F 7/19/21 TEU Approve 6-0 7/20/21 F Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman Scrivener’s Pg. 2, line 6: strike “Vystar’s” and insert “VyStar’s” Page 11 of 21 Finance Committee Meeting Minutes July 20, 2021 9. 2021-0356 ORD Apv & Auth the Mayor, or His Designee, & the Corp Secretary to Execute & Deliver for & on behalf of the City, that Certain License Agreemnt btwn the City of Jax & JTA, Providing a Revocable, Nonexclusive License to the City, for an Open-Ended Term with no license fee, for use of approximately 53 Sq. Ft of JTA-Owned Property at the entrance to the Fort George Island St. Johns River Ferry Terminal located at 9618 Heckscher Dr., Jax, FL 32226 (R.E. #168242-0000), for Construction & Maintenance of a Wayfinding/Welcome Sign & Associated Improvements; Providing for Oversight of License Agreemnt Approval & Execution by the Real Estate Division of the Dept of Public Works, & Thereafter by the Engineering & Construction Management Division of the Dept of Public Works. (Staffopoulos) (Req of Mayor) (JWC Apv)(Co-Sponsors CMs Ferraro & Hazouri) 6/8/21 CO Introduced: NCSPHS, TEU, F, JWC 6/14/21 NCSPHS Read 2nd & Rerefer 6/14/21 TEU Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, TEU, F 7/19/21 NCSPHS Approve 6-0 7/19/21 TEU Approve 6-0 7/20/21 F Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman Scrivener’s Pg. 1, line 14 and pg. 2, line 9: strike “entrance” and insert “exit” Page 12 of 21 Finance Committee Meeting Minutes July 20, 2021 10. 2021-0357 ORD Apv & Auth the Mayor, or His Designee, & the Corp Secretary to Execute & Deliver that certain Lease Agreemnt between Midtown Centre Office, LLC (“Landlord”) and the City of Jax (“Tenant”) to Lease Approximately 3,629 Sq. Ft. of space in the 3100 Building (Suite 100) of the Midtown Centre Office Park, located at 1800 Executive Center Dr., Jax, FL 32207 (R.E. #129627-0040), for use by the JSO for its Integrity Unit, for an Initial Term of 5 Years with an option to renew for 1 Additional 5 Year Term, at an Initial Rental Rate of $4,989.88 Per Month, with Three Percent (3%) Annual Increases Thereafter; Providing for Oversight of Lease Acquisition & Execution by the Real Estate Division of the Department of Public Works, & Thereafter by the JSO. (Dist. 5- Cumber) (Staffopoulos) (Req of Mayor) 6/8/21 CO Introduced: NCSPHS, TEU, F 6/14/21 NCSPHS Read 2nd & Rerefer 6/14/21 TEU Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, TEU, F 7/19/21 NCSPHS Approve 6-0 7/19/21 TEU Approve 6-0 7/20/21 F Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & C.R. 3.601 –6/22/21 APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman • The JSO Integrity Unit has occupied this location for approximately 13 years. The rent is increasing by 10% over the prior year. Page 13 of 21 Finance Committee Meeting Minutes July 20, 2021 11. 2021-0358 ORD Apv & Auth the CEO of DIA to Execute & Deliver on behalf of the City that Certain Dev Agreemnt btwn the DIA & Jax Historic Naval Ship Association, Inc. (“JHNSA”), for Relocation of Retired Naval Vessel USS Orleck (DD-886) to Downtown Jax as a Floating Museum, at the Former Jax Shipyard Site on Jax’s Northbank, Said Agreemnt Being for a 3-Yr Period & Contingent Upon Certain Conditions Precedent Being Met by JHNSA prior to City’s Entering into 10-Yr License Agreemnt with JHNSA, together with Two 5-Yr License Renewal Options, Subject to Mutual Agreemnt of the Parties, for JHNSA to Construct, Operate & Maintain the Ship Museum; Auth DIA to Amend Dev Agreemnt & License Agreemnt in accordance with Dev & License Agreemnt Terms without further Council approval; Providing for Oversight by DIA. (Sawyer) (Req of DIA) 6/8/21 CO Introduced: NCSPHS, F, JWC 6/14/21 NCSPHS Read 2nd & Rerefer 6/15/21 F Read 2nd & Rerefer 6/22/21 CO PH Read 2nd & Rereferred:NCSPHS, F, JWC 7/20/21 F Amend/Approve 7-0 Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 – 6/22/21 Phillip Peterson explained the amendment. Chairman Salem noted the bill was deferred yesterday in NCSPHS because it had not yet been approved by the Jacksonville Waterways Commission. Capt. John O’Neil, USN Ret., of the Jacksonville Historic Ship Association, gave an update on the current progress of the ship relocation. He noted that a donation of $10,000 has been received to sponsor a Sea Scout troop when the ship arrives in Jacksonville. The ship is currently located in Lake Charles, Louisiana and belongs to a private entity, having been transferred by the U .S. Navy to the Turkish navy several decades ago and subsequently returned to the United States under private ownership and used as a museum. Capt. O’Neil said the group has plenty of expertise to operate a ship museum. They are awaiting the City Council vote to authorize the ship to be sent to dry dock in Texas for an inspection and condition report. In response to a question from Council Member Boylan, Steve Kelly of the Downtown Investment Authority said that the City’s Risk Management Division is satisfied with the insurance requirements and other protective provisions included in the agreement. AMEND/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman Page 14 of 21 Finance Committee Meeting Minutes July 20, 2021 AMENDMENT 1. Pg. 2, lines 5 and 12: strike “John’s” and insert “Johns” 2. Place revised agreements on file to: a. Clarify performance schedule in Development Agreement b. Correct scrivener’s errors and include performance schedule in the License Agreement • Approves Development Agreement and License Agreement with the Jacksonville Historic Naval Ship Association (JHNSA) to establish the USS Orleck as a ship museum tourist attraction at the Shipyards property • JHNSA must meet certain conditions within one year of the Development Agreement in order to enter into the License Agreement, including providing evidence of funding necessary to complete the project ($2,656,719) • Prior to execution of the License Agreement, JHNSA is required to provide a deposit representing 110% of the estimated cost of removal and disposal of the vessel • Within six months from the effective date of the License Agreement, JHNSA shall have completed the museum/ticketing facility and all site work and relocated the vessel to the pier, and within nine months shall have completed construction of the access ramp to the vessel and opened the vessel for tours • The initial license term is for 10 years with two five-year renewals with no license fees • No City funding is contemplated for this project Page 15 of 21 Finance Committee Meeting Minutes July 20, 2021 12. 2021-0375 RESO Making Certain Findings, & Apv & Auth the execution of an Economic Developmnt Agreemnt btwn the City of Jax & The Boeing Company, to Support the Expansion of the Company’s Existing Facility Located Generally at 5868 Approach Rd, Jax, FL (“Project”); Auth an Infrastructure Grant in the Max Amt of $425,000 (“Infrastructure Grant”) Payable in 2 Annual Installments Following: (1) Acquisition & Improvement of the Proj Parcel by the Company; & (2) Creation of at least 334 New Jobs at the Proj Parcel by no later than 12/31/26; Apv & Auth the Execution of Docs by the Mayor, or his Designee, & Corp Secretary; Auth Approval of Technical Amendmnts by the Executive Director of the Office of Economic Developmnt (“OED”); Providing for Oversight by the OED; Waiver of that Portion of the Public Investment Policy Adopted by Ord 2016-382-E, as Amended, to Auth the Infrastructure Grant, which is not Authorized by the Public Investment Policy; Req 2 Reading Passage Pursuant to C.R. 3.305. (Sawyer) (Req of Mayor) 6/22/21 CO Introduced: F, R 7/20/21 F Amend/Approve 7-0 7/20/21 R Amend/Approve 5-1 (CM Priestly Jackson) Phillip Peterson explained the amendment. Council Member Priestly Jackson requested an amendment to include a 20% county residency goal (minimum two years of residence in the city) or graduates of local higher education institutions, for the 334 jobs to be created by the business. CM Gaffney moved the amendment on behalf of CM Priestly Jackson. Kirk Wendland of the Office of Economic Development said the OED absolutely agrees with the goal of providing job opportunities to local residents, but in this particular case the representatives of Boeing have said they could not agree to that additional requirement at the last minute after months of negotiations to reach the current agreement. He said the two year residency requirement is problematic because it requires the collection of additional data on the past residences of potential employees. Chairman Salem recommended that Ms. Priestly Jackson and Mr. Wendland work on wording for a proposed policy that could be discussed and adopted for future deals, but not applied to this ordinance. In response to a question from Council Member Freeman, Mr. Wendland said that the amendment is worded as an aspirational goal, not a hard and fast requirement, so there would be no penalty for not reaching the goal, but there could be a penalty for failure to report the data as required . Council Member Becton opposed the 2 year requirement on the grounds of being arbitrary; a resident is a resident, regardless of how long they have lived in the county. Council Member Boylan urged consultation with the JAXUSA Partnership, the City’s business recruitment entity, about how it would impact their recruitment efforts. Council Member Gaffney supported the proposal as a goal, not a requirement, subject to further input from Boeing by next Tuesday. The Gaffney/Priestly Jackson amendment failed 3-4 (Gaffney, Newby and Freeman in favor) AMEND/APPROVE Aye: 7- Salem, Becton, Boylan, Carlucci, Freeman, Gaffney and Newby Excused: 1- Pittman Page 16 of 21 Finance Committee Meeting Minutes July 20, 2021 AMENDMENT Place revised agreement on file to: 1. Correct intent of New Jobs 2. Adjust references to Related Companies, annual reporting requirements, and private funding • Waives the Public Investment Policy in order to allow for the infrastructure grant, which is not contemplated by the policy Comment: Jobs created pursuant to this agreement are not required to be maintained for a specific time period to qualify for second installment of Infrastructure Grant 13. 2021-0378 ORD-MC Regarding Chapt 116 (Employees & Employee Benefits), Ord Code; Amending Secs 116.1401 (Definitions),116.1402 (Special Committee on Group Health Benefits),116.1403 (Request for Proposal (RFP) Procedure),116.1404 (Group Health Plan Award) & 116.1406 (Self-Insurance), Pt 14 (Group Health Plan), Chapt 116 (Employees & Employee Benefits), Ord Code, to make certain changes to the composition of the Special Committee on Group Health Benefits, revise & clarify the role of the Special Committee on Group Health Benefits, & make certain changes to the request for proposal procedure for the Group Health Plan. (Davis) (Introduced by CP Hazouri) 6/22/21 CO Introduced: NCSPHS, F 7/19/21 NCSPHS Read 2nd & Rerefer 7/20/21 F Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER 14. 2021-0379 ORD Approp $51,000 from the SJCIC Contingency for an expansion to the JaxCareConnect Prog; Apv, & Auth the Mayor, or his Designee, & Corp. Secretary to execute & deliver, a 1st amendment to the agreemnt btwn the City of Jax & We Care Jax, Inc. for the JaxCareConnect Prog; Invoking the exception in Sec 126.107 (G), Ord Code, providing for direct contract with We Care Jax, Inc. Svcs; Providing for Oversight by the Office of Grants & Contract Compliance. (Sidman) (Introduced by CM Boylan)(Co-Sponsor CMs Salem,Newby, DeFoor,Priestly Jackson,White & Carlucci) 6/22/21 CO Introduced: NCSPHS, F, R 7/19/21 NCSPHS Read 2nd & Rerefer 7/20/21 F Read 2nd & Rerefer 7/20/21 R Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER Page 17 of 21 Finance Committee Meeting Minutes July 20, 2021 15. 2021-0380 ORD Auth the Borrowing from the City’s Commercial Paper Facility &/or Issuance of Fixed-Rate Debt in the Cumulative, not to exceed amt of $1,500,000, or such lesser amt as determined Pursuant to the agreemnt (defined below), & approp thereof to provide funding for the Palm Ave improvemnts; purpose of approp; Amending the 2021-2025 5 Yr CIP Apvd by Ord 2020-505-E to provide addn’l funding for the Proj entitled “Palm Ave Improvements” (The Project”); Amending 2020-504-E, the FY 2021 Budget Ord, to replace the 3rd revised schedule B4, the FY 20-21 Debt Mgmt Fund Detail, & 2nd Revised Schedule B4B, the FY 2020-2021 Capital Improvement Projs funded via borrowing, to auth the borrowing &/or the issuance of debt for the Proj; Auth the borrowing & approp of funds; Auth the Mayor, or his Designee, & Corp. Secretary to execute & deliver, for & on behalf of the City, a public infrastructure Capital Improvemnts Costs Disbursemnt Agreemnt (“Agreemnt”) for the reconstruction of Palm Ave btwn the City & Southern Baptist Hospital of Florida, Inc. (The “Developer”), which agreemnt auths the Developer to provide for the design, engineering, permitting, construction, engineering & inspection svcs, & construction of certain improvemnts to Palm Ave on behalf of the City, to be funded by the City as set forth in the agreemnt, with cost overruns the responsibility of the Developer; Providing for Oversight by the Public Works Dept. (B.T. 21-085) (Wilson, IV)(Req of Mayor) 6/22/21 CO Introduced: NCSPHS,TEU, F 7/19/21 NCSPHS Read 2nd & Rerefer 7/19/21 TEU Read 2nd & Rerefer 7/20/21 F Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER 16. 2021-0381 ORD-MC Amending Sec. 106.201 (Final Annual Budget; Time of Submission), Chapt 106 (Budget & Acct Code), Ord Code, to Create a time certain for filing the Mayors Annual Budget. (Sidman) (Introduced by CP Designate Newby) 6/22/21 CO Introduced: F 7/20/21 F Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER Page 18 of 21 Finance Committee Meeting Minutes July 20, 2021 17. 2021-0382 ORD Approp $300,000 from the SJCIC Contingency to Historic Stanton, Inc. Contingency to be used for Bldg Improvemnts at the Historic Stanton School at 521 W. Ashley St; Oversight by the Dept. of Public Works (Sidman) (Introduced by CMs R. Gaffney & Priestly Jackson) (Co-Sponsor CMs Salem,Newby,Boylan DeFoor,White & Carlucci) 6/22/21 CO Introduced: NCSPHS, F 7/19/21 NCSPHS Read 2nd & Rerefer 7/20/21 F Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER 18. 2021-0385 ORD Regarding Septic Tank including drain field (“Septic Tank”) & Sewer Connection Grants for “For Profit” businesses & “Not for Profit” businesses in the NW Jax Economic Developmnt Area; Amending the Septic Tank Repair & Replacement & Sewer Connection Grant Prog Grant Criteria; Auth the General Counsel to prepare an agreemnt in accordance with the failing non-residential Septic Tank System Grant Process; Req that the Public Works Dept. & the OED Oversee the Grant Process & Prog. (Sidman) (Introduced by CM Priestly Jackson) 6/22/21 CO Introduced:NCSPHS,TEU, F 7/19/21 NCSPHS Read 2nd & Rerefer 7/19/21 TEU Read 2nd & Rerefer 7/20/21 F Read 2nd & Rerefer Public Hearing Pursuant to Chapt 166, F.S. & CR 3.601 –7/27/21 READ 2ND & REREFER Public Comment Carnell Oliver said he does not see enough detail in the Mayor’s proposed budget about the sources and uses of federal and state funding sources. There needs to be more information available in simple terms that is understandable to average citizens. He wants more citizens involved in the budget process to know where the dollars are coming from and going to for better accountability. Page 19 of 21 Finance Committee Meeting Minutes July 20, 2021 Council Auditor’s Office Bill 2021-375 One or Two Read Resolution – Two Date Provided to Council Auditor – 6/16/21 Company Name – The Boeing Company Project Location – Cecil Airport (5868 Approach Road) Incentives Provided - $425,000 Infrastructure Grant • 50% to be provided after minimum capital investment of $85,000,000 • 50% to be provided upon satisfaction of the job creation requirements Number of Jobs to be Created – • 334 new permanent jobs no later than Dec. 31, 2026 • Average wage - $65,000 plus benefits Number of Jobs to be Retained – 336 Capital Investment - $116,500,000 ($85,000,000 minimum) to be expensed by JAA and paid back by Boeing in the form of a lease JSEB Contract Requirement - $85,000 Record Retention/Audit Clause – Yes Clawback Language – • Section 9.2(a) – In the event reporting requirements are not met, the City will be entitled to withhold any installments of the Infrastructure Grant for any year during which any reporting requirements are not met. • Section 9.2(b) – If the Company, JAA or its affiliates fails to invest $85,000,000 in funding by December 31, 2023, the Infrastructure Grant will be terminated and the Company will repay the City the entire amount of the Infrastructure Grant that has been previously paid to the Company, if any. • Section 9.2(c) – In the event the Company fails to retain 336 jobs and create 334 new jobs at the project location at an average wage of $65,000 by December 31, 2026 (for a total of 670 jobs), the Infrastructure Grant shall terminate and the City shall have no obligation to pay the final $212,500 of the Infrastructure Grant to the Company. ROI – 1.02 Page 20 of 21 Finance Committee Meeting Minutes July 20, 2021 NOTE: The next regular meeting will be held on Tuesday, August 3rd, 2021. *****Note: Items may be added at the discretion of the Chair.***** Pursuant to the American with Disabilities Act, accommodations for persons with disabilities are available upon request. Please allow 1-2 business days notification to process; last minute requests will be accepted; but may not be possible to fulfill . Please contact Disabled Services Division at: V 904-255-5466, TTY-904-255-5476, or email your request to KaraT@coj.net. Rollcall Present: 7- Chair Ron Salem, Vice Chair Danny Becton, Council Member Michael Boylan, Council Member Matt Carlucci, Council Member Terrance Freeman, Council Member Reggie Gaffney and Sam Newby Excused: 1- Council Member Ju'Coby Pittman Jeff Clements - Council Research Division jeffc@coj.net 904-255-5137 Posted 7.21.21 4:00 p.m. Page 21 of 21