gone from the floor up like this right you got to start you got to start at the level good evening and welcome to the regular commission meeting for April 1st 2025 i'd like to call this meeting to order now if we could please stand for
the pledge of allegiance i pledge algiance to the flag of the United States of America and to the republic for which it stands one nation under God indivisible with liberty and justice for all
city clerk please call the role vice Mayor Basquez here commissioner Clark is absent commissioner Sison here commissioner Dicki here mayor doctor here thank you all right do we have approval for the regular and workshop agenda
yes yep that's good we're good all right no proclamations tonight so we'll move to public comments for non-aggenda items and the first one is Carrie Arbach hi everybody thanks for having me good
evening i'm Carrie Hourbach Treasure Island Adopted Beach i live in St petersburg off of Dartmouth um I am here tonight to tell you all that turtle season is coming up May 1st through October 31st in Florida the five species
of sea turtles loggerhead green leatherback Kemp's Ridley and Hawksville are protected under federal and state law as either endangered or threatened in 2 weeks on Tuesday and Wednesday April 15th and 16th at 6:00 p.m right
under city hall stairs at the picnic tables I will be hosting a turtle talk free parking first come first serve guest speakers from our own code enforcement fire department as well as Clearwater Marine Aquarium and the National Wildlife Federation will be
attending and speaking it will be the same information for both nights so hopefully we gain a lot of support uh what we're looking for are spotters um there is and will be ongoing construction obviously all along our beaches so we will be training our
volunteers how to educate our beach visitors how to spot the areas for holes obstacles improper lighting and of course trash and then how to report the violation information so we have a successful turtle season i hope uh you
can all attend and if anybody's wondering why I wear this boot it's because I stepped in a hole and fractured a fibula so let's uh all be diligent and I hope to see many faces there thanks for your time thank you
Carrie next up Mark Hoey uh good evening i won't belabor uh my comments too much we have a busy evening ahead i just wanted to uh comment on the what is going to be your last presentation of the evening about uh
debt borrowing and possible changes to the debt ceiling all uh issues that should be near and dear to all our hearts and I think that's something we we need to reflect on the uh conversations of just a few short years
ago in which most of you were a part of when that whole issue of trying to adjust or change the debt ceiling came up at that time i I would hope that we have uh learned a bit of a lesson i know we are in a point where money is tight
and I know uh Chuck and the team of the city is trying to do everything they can to go after public funds from wherever we can find right Ardan uh and that'll come that'll come but I I beg you not to so quickly look at changing charters or
ordinances for a shortterm squeeze i would much rather have the commission u expect from the city to to do some belt tightening where necessary and then to look very closely at major expenditures
and what can be done that can maybe uh either defer a bit or trade off to a lesser costly matter i I think it's kind of ironic that one of the examples in the presentation of the consultant late
tonight about borrowing is actually this city hall building and I think again it is ironic because they're making it that that was a big win that we borrowed $8 million for a 40-year-old archaic wore out
building and then put at least $5 million more in uh to bring it up to the stage that it is today and it's still not hurricane compliant so uh anyway please have your ears on about the borrowing and the changes and let's see
if we can get by without that or without heavy borrowing thank you thank you Mark brandy Long hi Brandy Long um G Boulevard i just want to let everyone know that something
completely amazing happened and I was very glad about it i mentioned the walkovers last time um at the meeting and they've been ours was repaired i mean it took a day and it's it's instances like that that I know that on
an individual basis if somebody can just sensibly go out and actually look at what needs to be done it doesn't have to be this huge scale thing to to get accomplished so that's all I have to say i'm just
really happy um Commissioner Chris Clark worked on it for us and also Kathy Haduk she emailed me back and forth so I know both of them were like very important in seeing that it is all done so I just really wanted to thank them thank you
great thank you Brandy sarah Pennington hey guys uh good evening i wanted to actually tie into what Brandy was just talking about with the Dune walkovers um I did want to thank um Brandy Long the citizen who brought that up and
Commissioner Clark Kathy Hadoop public works for getting that all fixed it's such an awesome accomplishment that improves our town what I wanted to talk about is that we were told at the last meeting that it would take years to repair our dune walkovers we would need
to hire design services put out RFPs go through turtle season it would be sometime in 2026 when these dune walkovers would be repaired i do understand since that beach was hit a lot harder i don't expect every dune repair to be as quickly as this one um
but when we heard that that it was going to take years it was the perfect example of what I found sitting in this audience of hearing things coming from city staff that just doesn't ring true to me and doesn't align with my common sense i
just kept thinking why would it take years like we actually went over to that dune walkover and it was like 85% of it still perfect and it just needed some repairs done and they did that in one day so I thought this is such a great example again of of what we've been
experiencing here in the city um how we actually got to this elevate TI situation is very similar we were told that it would take 12 months 18 months a very long time to create a fill dirt ordinance and it didn't happen the whole time the citizens were saying that
doesn't ring true to us we feel like that could happen much more easily and efficiently but it never did and this is just another example of it and I wanted to point out that core issue that the status quo seems to be that government is slow i've heard that from the deis
recently and it doesn't have to be slow we've seen on a federal level since January this year and locally this dune walkover is also a great example so more often than not when presented with a challenge or project we're hearing "Oh that's not possible that's going to take
a long time that's going to be difficult." We're hearing no more than we're hearing yes and we need problem solving just like happened with that Dune walkover so I'd love for our city staff and city council to really start putting their heads together thinking about ways that we can deal with problems in a much more
efficient way there's no reason for a town this size to deal with so much red tape and bureaucracy we have a new commission and I challenge you to not follow the previous commission and just accept that everything has to go slow and cost a lot of money this is your chance to be the change to embrace
efficiency and fiscal responsibility thank you thank you Sarah and last uh Gary Patenziano correct did I get it right got it you got close
nice job thank you uh I'm back up here to talk about the pumping station a little bit and uh um it's getting to a point I think we're starting to get tired we have to do some things about this pumping station uh we're going to get ourselves in trouble i did a little work uh history and I see that back in
2012 we did a rehab uh on the pump station and included in that was we had new pumps put in construction done wet walls construction of new a wet wall another wet wall electrical controls uh new above grade fuel tank a new
generator and miscellaneous other stuff that goes with this is this all included in this pumping station and where's that money coming from and when we going to get started on it i've asked and asked for a little bit it seems to be not I got to see what's going on where we're going with this thing because it's going to get critical
thanks thank you Gary all right i Any other public comments hearing none we will close the public comment section and we'll move on to commissioner reports and our first is
Tammy Vasquez commissioner Tammy Vasquez i actually wrote mine down today because I just I had quite a little bit to say so um bear with me a little bit i've got a lot to tell it's been a a busy couple weeks um I'm going to start with a little information um that I brought
back from Tallahassee uh for those who don't know um the mayor and I uh traveled to Tallahassee during the legislative session last week and um along with mayors from all and commissioners from all over the state my primary focus was to meet with everyone
that could help us secure the $6 million uh for our public safety building i was fortunate enough to enlist the support of an individual who is deeply rooted and committed to Treasure Island someone who accompanied the mayor and I and has
connections and got us into the places and offices we needed to be so I want to give a special thanks to Miss Bobby Shaye who actually is here with us tonight so thank you Bobby um you uh you are amazing and um not only were we able to
get in to see Representative Linda Cheney but also Senator Nick Diggley uh Senator and Vice Chair of Appropriations Rousson and the Chair of Appropriations Senator Who uh Senator Hooper who literally no one could get an
appointment with there were lines outside his door um for people trying to meet with him and they couldn't get in with him and amazingly we got right through and he gave us um probably 10 to 15 minutes which is like having two hours quite frankly um because of that
um after pleading our case in each of these offices we gained tremendous amount of support although we did not make the initial funding cut senator Hooper and Senator Diggley continue to advocate for us in conference discussions so they are doing everything
they can to keep our request alive and we are cautiously optimistic that we could still at least bring a portion of that money home uh we keep in touch with them or I keep in touch with um Senator Diggley almost daily and I will tell you that he is not backing down he is
fighting for us so thank you to everyone in Tallahassee fighting for us um also we had the opportunity to meet with several mayors um from across Florida many that have had the same challenges that we currently face one particular mayor has dealt with everything that we
are currently dealing with and his city has come out on the other side and the results are just amazing uh we were able to build a relationship with him and he and his team have offered to come over for a visit and help us in any way we
can and so that was pretty amazing to be able to really talk to him and and get to know what his city did his beach city did um so that's pretty much about the trip to Tallahassee um this Saturday don't forget April 5th from 4 to 8 is
the Treasure Island Community Appreciation Day unfortunately I will not be able to attend um I had planned a trip months ago before this was announced but definitely encouraging everybody to get out and have fun with your neighbors and also don't forget the
14th annual Sons of the American Legion car show is April 12th 10 to 3 um and that is going to be in the park as well so in closing I just want to express my gratitude and um to our dedicated police and fire departments for their ongoing
sacrifices as we work toward establishing a permanent facility and I know they're working very very hard as well trying to do the same and I also want to extend my appreciation to the city staff for their unwavering commitment during a very challenging time we really appreciate it and that's
it thank you Tammy commissioner Clark is not with us tonight but he has sent some comments um and I believe that Chuck Anderson is going to read those for us thank you Mayor first off I want to again
apologize for missing tonight's meeting i had a prior work commitment that I had to commit to prior to knowing whether I was going to be elected this should be the last meeting that I miss a few items that I would like to update district 2 residents on this evening permitting
remains my highest priority on behalf of the residents in district 2 it is now over six months since the first hurricane while there are over 2,300 permits open at this point I was notified by the city manager that he has not extended the contract with Jacobs that provided the city permitting
department with additional resources this notice did not contain a plan to address how the city intends to staff and manage the inspections closeouts and FEMA audits that all residents with permits will face perhaps he will provide that detail to the community
tonight i want to thank city staff for working with concerned District 2 residents on the beach walkovers in Sunshine Beach after going out and doing an inspection and relaying that information to city staff it was determined that that many of the sun
sunshine beach walkovers did not need to be completely rebuilt as is the case in Sunset Beach and can simply be repaired many of those walkovers have now been repaired and are back in use helping both residents and business owners thanks to all involved I am getting
questions every day about when to expect refunds on prior building permit payments i've asked the city manager to provide at least an estimated date that will that will be paid so residents can plan i suggested picking a date that may be farther out than most would like but
one that can be certainly used can certainly be hit and maybe even beat this will at least give residents a planning tool i also continue to field questions on the 115th seaw wall as its condition continues to rapidly deteriorate the city manager provided
information that the 115 seaw wall will be one of the first to be completed in the first round and again I have asked for an approximate date for when the project will begin so residents have this information as most of my district 2 residents are aware I voted no on the
TMM last meeting my no vote is based on many consultations with the residents and homeowners in my district if I were here tonight I would do the same i feel that I feel this is just too complicated and our residents face sticker shock when they find out what it will cost
them to implement this inefficient and complicated plan note that for all the talk of this not being mandatory the word requirement appears about 800 times in the elevate TI manual and the modified ordinances there is an interim
solution while drafting a simple field dirt ordinance several commissioners here tonight previously supported an alternative fil dirt ordinance to this unwanted remnant of elevate TI i shared this at the last meeting but I have two more things to add mayor Doctor
commented at the first reading that he wanted to pass this and then simply and simplify it my fear is that once we get these 150 pages into an ordinance it it is going to be very hard to get them out we will see where this ends up as the permits are submitted under the
burdensome TMM requirements i hope I am wrong but I think that for many residents that want to bring in fill and maximize the size of their house on their lots this TMM ordinance is going to wind up costing them much more than expected if this happens I am sorry i
tried to call this out again tonight i do have some other issues around the $12 million fire station now that we did not get the $6 million in funding and our contract with Advanced Engineering and Design but I will save those items until I am back in person on the 15th thank
you Chris Clark Commissioner District 2 thank you next Commissioner Arthur Sison how you doing um Treasure Island Day April 5th from 4 to 8 um uh Paradise Island Civic Association will be having a booth
at the event where they will have beer and selzers for donation proceeds will go to the Treasure Island Police and Fire and Recreation Departments for rebuild um the 14th annual Spring Slooh car show will be in the parking lot on
April 12th from 10 to 3 and that's all I have great thank you Arthur and Commissioner Ardan Dicki thank you thank you mayor uh last week I got three inquiries from residents about their permit status so I did a little research on that and what I found out is that uh
the building department is caught up on permit applications uh the response turnaround time for complete applications and I emphasize complete uh is pretty quick these days though with most people getting their permits issued within a few days of application any
delays that we're having are coming from applications that are not completely filled out uh as of yesterday there are 224 permit applications in a holding pattern waiting for additional information from the applicant i know the city has been actively trying to
contact these applicants if you have applied for a permit and have been waiting for more than a few days for it please contact the building department because your application uh may be one of those 224 uh also as a reminder to everyone
that the waving of permit fees uh related to hurricane damage ends May 31st so uh do what you can to get uh to to beat that deadline and then just one other comment regarding Mark Hoe's uh question about uh extending the debt uh
to my knowledge there's no discussion tonight about extending the the current uh uh levels of debt that uh that the city is allowed there's there's a there there are some slides in that presentation that talk about what uh
what the uh debt levels are uh what we currently have but there's no no discussion been made at all about extending that that's all I have thank you and then now for uh for my uh presentation
it's always tough to go uh last everybody's already taken all the good stuff but let me uh let me just talk a few minutes about Tallahassee uh we were there we were represented tammy and I both were there um unfortunately there
weren't there wasn't a lot of representation from the cities on the coast um it was basically us and Clearwater and uh so but uh I'll tell you we we made a difference we talked to
a lot of folks um they understand where we are um they're trying still to especially the Senate is still trying to fight for us um it might go over multiple years if they would win the fight um but uh we need to begin moving
on as quickly as possible because our fire department needs to get into a a permanent home uh our police department needs to get a permanent home so um so that we'll be moving on these relatively quickly but we still will be keeping in
touch with the folks up in Tallahassee uh to see if anything changes so um couple of other things uh they're more minor than they are anything else but uh there are a couple of bills that are out
there um that are in the Senate um that are not necessarily favorable to uh to smaller uh cities like our own um and that uh there is going to be some processes taking place uh that what
they're pushing for is uh is cities to be uh at 10,000 uh population or greater um I I don't know that it's going to have a chance of of winning but it is this is the kind of the mindset that there is some uh up in Tallahassee to uh
to do some consolidating possibly and um and that kind of concerns me a bit like I said I I don't think there would be anything to worry about uh this would have to go through the constitution and everything else but uh there are people out there with mindsets of the smaller communities
um not having the um the wherewithal to to fix themselves up and repair and and uh and work through things so I think that uh that we'd like to uh or I'd like to at least say that u you know that that we're working hard we're working
with those folks and uh and we're trying to make sure that we rebuild in a in a conscious manner and uh and a quick uh turnaround and when I say a quick turnaround um you know that I'd like to see in two years from now something uh much different than what we have today
when it comes to our infrastructure our buildings and everything else um there is also one other bill that is out there uh that basically wants to raise the level from uh it's an insurance issue from a million dollar to $3 million um
per incident and uh it also those type of of bills uh make it very difficult on the smaller cities because we don't have all of the you know the the 100,000 folks that are all paying their property tax and everything else so when it goes
up you know of course our insurance is going to go up just like theirs is going to go up for the same number of commissioners um but you know it's takes a much bigger bite out of out of what we have um so that's a that's a little you
know it's a little bit a problem i I even read some of the articles that basically say that uh that this is maybe even a gift to the uh to the trial attorneys um and uh and that's one of the things as well so anyhow that I had
a great trip and uh and I enjoyed it and I enjoy being back here and uh getting the business done tonight so with that being said um we're going to move on we do not have any minutes tonight and uh so we're going to move to
the consent agenda so I move to approve the Florida Communities Trust dedication to public use and the declaration of restrictive covenant for the purchase of the Isisle of Palms Park
18-013- FF19 i second that okay we actually have two and what what we have two items in the consent agenda and so we're we're a new new commission here uh what we do is we basically just read one that asks for
the consent agenda the consent agenda be approved okay it makes it that much easier on everyone got it so just move to approve consent agenda okay as written we'll just move um to approve consent agenda as written mhm i second
that thank you i have a motion a second um do we have any public comment hearing none we'll move on to um N roll call i'm sorry oh I'm sorry go on okay
we'll move on for a roll call uh on this approve or consent agenda vice Mayor Bazquez yes commissioner Vicki I commissioner Zison is on I mayor doctor I all right so now we'll uh let's see
consent agenda okay the first item of business tonight is the second reading for the public hearing of the terrain modification program so I have to read all the titles again so you may want to get comfortable and just give me a moment
okay okay so ordinance 202411 an ordinance of the city of Treasure Island Florida establishing the city's terrain modification manual and adopting appendix B as the city of Treasure Island's terrain modification manual and part of the city's land development regulations superseding ordinances or
parts thereof in conflict with herewith um providing for severability providing for conflict providing for cotification and providing for an effective date ordinance 2024-12 an ordinance of the city of Treasure Island Florida amending chapter
8 building regulations and fire code of the city of Treasure Islands or city of Treasure Island code of ordinance by revising 8-1 building codes adopted to remove references to specific years to reference the flood resistant amendments to the building code that were moved to
chapter 66 of the code and to reserve the owner builder provision I'm sorry revise the owner builder provisions in accordance with Florida statutes section 8-72 Florida Fire Prevention Code adopted to clarify adoption of the entire code and remove references to
specific years section 8-88 append appendices B E and G of NFPA fire prevention code adopted is deleted provided for fiscal impact statement providing for transmission to the Florida Building Commission providing
for conflict providing for codification and providing for an effective date ordinance 24 or 2024-13 an ordinance of the city of Treasure Island Florida amending chapter 54 utilities of the city of Treasure Island's code of ordinances by deleting article 2 storm water management from chapter 54 moving
article 2 from um chapter 75 to chapter 54 and providing for severability providing for conflict providing for codification and providing for an effective date okay ordinance 2024-14 an ordinance of the city of Treasure Island Florida amending chapter
66 floodplane management of the city of Treasure Islands Code of Ordinances by revising section 66-102.3 basis for establishing flood hazard areas to update the address of city hall revising section 66-104.1 permit required section
66-301 minimum requirements section 66-301.1 minimum requirements and section uh 307.4 for other development in coastal high hazard areas zone V and coastal A zones to reference the city's terrain modification manual revising
section 66-1 04.3 application for permit or approval to update the requirements for the applications for flood development permits revising section 66-105.1 information for development and flood hazard areas to update the requirements for site plans and
construction documents for developing subject to the chapter revising article two definitions to update the applicable definitions for the terms used in the chapter creating section 66-301.5 Florida Building Code Administrative Amendment to require the
submitt of certification forms for certain elev elevations of the building in flood hazard areas creating section 66-301.6 Six Florida building code technical amendments to provide certain limitations on the building code and
flood hazard areas revising section 66-303-5 limitations on the placement of Phil to substantially revise the city's regulation of Phil revising section 66-304.1 general to revise the definitions of manufactured homes in this section revising
66-306.1 underground tanks to require protective measures when submerging underground tanks revising section 66-306.2 above ground tanks not elevated to require protective measures when submerging above ground tanks revising section 66-307.2
concrete slabs used as parking pads enclosure floors landings decks walkways patios and similar nonstructural uses in coastal high hazard areas zone B and coastal A zones to require that such
labs have no turndown or thickened edges revising section 66307-3 decks and patios in coastal high hazard area zone V and coastal A to revise zones to revise the regulations of certain decks and patios deleting
section 66-307.5 non-structural fill and coastal high hazard area zone B and coastal A zones in its entirety providing for severability providing for conflict providing for cotification and providing for an effective Eight ordinance
2024-15 an ordinance of the city of Treasure Island regulating I'm sorry amending chapter 68 zoning regulations of the city of Treasure Island Code of Ordinances by amending section 68-2 definitions to revise the definitions of building building height development fence grade pvious area structure and
create definitions for open Fence base floor lowest floor natural gate guard portable retaining wall terrain modification height adjustment factor terrain modification setback adjustment factor terrain modification
manual and wall amending section 68-34 pre-development review committee um 6 68-431 schedule of lot bulk regulations and 68541 setback classifications to recognize the terrain modification
adjustment factor amending sections 68-152 adopting adopted levels of service and 68-159 appeals to update the reference to the Treasure Island watershed management plan amending section 68-195 application of zoning district
regulations to require permits deleting sections 68-224 design standard 68225 exemptions and 68-410.69 storm water because they are now addressed in chapter 76 amending
section 68-410.09 setbacks 68-41038 setbacks and 68-410.68 68 signage 68-483 swimming pools and 68-561 alternate setback procedures to
define grade as natural or finished amending the remaining I'm sorry amending and renaming section 68-458 garden walls retaining walls fences and hedges to address retaining walls guards revisions defenses and
providing for severability providing for conflict providing for cotification and providing for an effective Eight ordinance 2024-16 or the city of Treasure Island Florida amending chapter 69 marine structures and commercial fishing of the city of Treasure Island's code of
ordinances by revising section 69-31 general requirements to address coastal armoring requirements revising sections 6932 definitions to include definition terms included in chapter 69 by this ordinance and revising the definitions of repair for seaw walls revising
section 69-51 application to revise the requirements for applications for seaw wall and living shorelines and structural calculation requirements revising section 69-53 expiration to remove language relating to permits for repairs to seaw
walls revising section 69-72 Seaw walls to include language related to seaw wall construction requirements revising section 69-74 construction materials to significantly revise the requirements for various types of seaw walls and living shorelines revising 69-75
maintenance and repair of seaw walls and requirements related to major seaw wall repairs creating section 69-77 supplemental criteria to create additional requirements related to seaw wall construction providing for severability providing for conflict providing for codification and providing
for an effective date ordinance 2024-7 an ordinance of the city of Treasure Island Florida amending chapter 75 utilities to retitle as portable water sanitary sewer and reclaimed water of the city of Treasure Island's code of ordinances by and by
deleting article 2 division 4 section 75-121-75-123 from chapter 75 and moving to chapter 54 deleting article 3 drainage section 75151 through 75-209 from chapter 75 providing for severability providing for conflict
providing for codification and providing for an effective date and last but not least ordinance 2024-18 an ordinance of the city of Treasure Island Florida creating chapter 76 storm water of the city of Treasure Islands Code of Ordinances by creating article one in general to provide
definitions to be used throughout the chapter creating article two storm water management moving article 2 section 75-201 through 75-209 to article 3 storm water and surface water pollution section
76-71 through 76 through um 76-79 providing for severability providing for conflict providing for codification and providing for an effective date easy for you to say okay Katherine please are there any changes from the first reading no good
evening mayor and commissioners uh there are no changes from the first reading and I'm happy to answer any questions you may have any uh questions for staff any public comment okay hearing none public hearing portion
is now closed do I have a motion i motion to approve uh the second reading and public hearing on the terrain modification program as outlined um as mentioned um ordinance 2024 11 and
everything mentioned below second all right any discussion nope roll call please vice Mayor Vazquez i commissioner Sison I commissioner Dicki I mayor Doctor I thank you
so is unanimous the majority vote motion carries okay moving on to H2 the first reading of ordinance 2025-03 because you just can't get enough ordinance 2025-03 an ordinance of the city of
Treasure Island Florida amending the fiscal year 2025 general fund budget to recognize insurance proceeds of 1,879,849.97 for flood damages providing for severability conflict and an effective date
all right do we have staff presentation well I'll keep it short um essentially what this does is for the new commissioners is that whenever we receive funding like this in in this case insurance proceeds it's it by law
we have to make a budget amendment so in other words that gives us permission to utilize those funds against those damage against those damages so in other words what we'll do is we'll book a million a
million n into a revenue a million n into uh an expense expenditure account and then any expenditures that are made you know pursuant to those damages then we'll be booking it against those uh
against those expenditures great thank you any other questions are there plans to use that money specifically for the items that were repaired or or damaged destroyed that's a plan i know it can get a little murky with all the different damages and
everything that have been flying through the city uh but uh we haven't really started yet that uh process of of rebuilding and repairing and that type of thing so uh that's the plan but we'll just have to wait and see what actually
comes in by way of what we need to do to repair these things and before we uh before we put money against it is there a way to get a more detailed breakdown of the coverages for each building and the deductible for each building contents and so on for example like if
we got insurance money for a Treasure Bay building I really don't feel it necessary to spend money on that building other than Terry i can give you a complete breakdown of that thank you all right any public comments hearing none closing the public hearing
portion i move to approve ordinance number 25 202503 at this public hearing and schedule it for first reading at the regular commission meeting that must be wrong yeah it should be I believe that
was changed it should be at second uh schedule second reading on the April 8 15th date yes I second all right any discussion i would just I will say I would agree
with Arthur on that as far as Treasure Bay I definitely would want to look at that because I think we need to make some decisions with that before we spend any money on it i think all the buildings that we're getting proceeds for we got to figure out if it's if the juice is worth the squeeze to put money into it absolutely
and I know uh our city manager Chuck is uh is taking care of that they're they have a committee and we're working through it so okay so uh roll call please commissioner Sison I Commissioner Dicki I vice Mayor Vasquez I mayor
Doctor thank you all right moving on item number H3 approval expenses for USA Voltage LLC for installation of light poles
good evening mayor commissioners i'm up here tonight to request approval of expenses to USA Voltage for installation of light poles that match the existing Basco Bridge fixtures and set lighting in the bridge control house in the amount of $94,000 237
um 94237 um as you all know the Basel Bridge was built in 2007 street lights were replaced in 2019 they should have lasted 10 years the storm basically
um high winds took them down so they have to be replaced we got a quote for the amount uh from um USA Voltage we did figure out that there was a that their um they had expired their uh their
contract had expired so with this proposal I have a an extension for six months to their contract uh due to the storm and so there's an extension in there for 6 months and after the 6 months we'll have already gone out to
bid again for uh electrical services so there's two items that we have on there one is the proposal and then the other is to sign the contract okay any questions for
staff any public comments hearing none we'll close the public comments um we've got Do we have a motion and I I move that the city commission approve the expenses to USA
Voltage LLC for the installation of light poles that match the existing Bascu Bridge fixtures and set lighting on bridge control house in the amount of $94,237 i second we have a motion and a second any discussion
just to clarify um then there'll be two motions with this item because they're asking for two things one with regard to the extension and then one um to approve the attached work authorization you can certainly handle that as two separate motions but I just wanted to make sure that the commission was aware that won't
conclude this item okay so so we need to do a motion on the second one after this one after this one okay so uh roll call please commissioner Sison I vice Mayor Vasquez I commissioner Dicki I mayor Doctor I i
make the motion to approve uh the contract extension to USA Voltage LLC i second we have a motion and a second any discussion any public comment okay hearing none close public comment
uh roll call please commissioner Zison I vice Mayor Vasquez I commissioner Dicki I mayor Doctor I thank you all right moving on to uh item H4 authorization to purchase as needed
engineering services from Michael Baker tonight I'm up here uh requesting authorization to purchase as needed engineering services to Michael Baker in the amount of 368,223.58 for uh boardwalk and dune
walkover replacement and repairs damaged by uh the hurricane Alene uh Michael Baker has been providing continuous engineering services uh with us for a while in October of 2019 they awarded multiple a multi-year contract that continues until
October 2026 and then we'll have one more year extension on that the city uses the engineering services uh for civil structural environmental and storm water needs so this proposal fits those needs in there
um during Hurricane Helen most of the dune walkovers and boardwalks were damaged severely um by the tidal surge generated by the high winds damage assessments was made by uh Kimley Horn with the assistance of Florida Department of Envir
environmental management personnel and contractors the city prepared a uh damage inventory for submitt to FEMA uh for reimbursement on the boardwalk and dune walkovers in the amount of approximately 4.4 $4 million in construction
costs public works is proposing a 3 to fiveyear construction contract to repair and replace boardwalks and dune walkovers public works requested a proposal from Baker International to assist in the preparation of the
invitation to bid package as you can see in your agenda items those are the tasks that are used to to complete it the deliverables of course will be uh one draft submitt to the city for review and then a final submitt and
we'll have a civil structural plan replacement of dune walkovers a geotechnical report dune crossover design calculations technical specifications package a bid schedule and a completed FD form 73100 application with project narrative etc
etc to go to the state for a permit funding for the design of the boardwalk is already in our budget um in fiscal year 2025 in the maintenance fund of the amount of
$610,720 i'm asking uh the commission to approve this authorization all right any questions for staff yes go first i was going to ask Mike given what we heard earlier about some of the walkovers being easily relatively easily
repairable and this proposal is for 27 uh walkovers is are there a few a handful that that can be deducted from that therefore decreasing the amount of of money that we need for design during the damage inventory and
the assessment every single dune walkover every single boardwalk was damaged and needed to be repaired what we have done is done a temporary repair it's not final it's temporary and that is
it okay thank you i somewhat had the same question um I know that many people went out and inspected them but I was just curious um but you kind of answered that um if you have gone out and inspected them and seen if there's any way that they can
just be repaired without being replaced or if they're not doing walkovers if we have the ability to do like a wheelchair mat or something um to that effect um I was curious on that to try to not only save time but money as well
you're allowed these dune walkovers as walkovers of the dune when we're when we have a dune walk over that is flat on the ground it's not a dune walkover it goes right through the the
dunes right that is not allowed we're making temporary repairs so that we can get a more people across and satisfy the the citizens that can't stay that way okay um we're we're we have a risk
of of in liability for people getting hurt we also have the the risk and liability of being fined so we're doing the best we can at this point but we have to go back and these every single one of the dune
walkovers were damaged all the boardwalks were damaged on 126 that dune walkover would which had just been repaired wound up on Lagoon Avenue okay so the ones that did
stay very miraculously they stayed so they're not in good shape we made it available to the citizens because they asked for it but it is not it safe condition okay and is that a liability you said
that could be a possibility liability that's a little scary well we have signs on each end that basically it's a rustic boardwalk and you've you've used at your own risk okay all right thanks Mike does that include the uh Dune Walkovers by
Land's End in your district most of those are I think the only one that that made it through was the far south one dune walkover but there's no wall on the other side of it so I don't know if it's even being used but I
believe it made it through it it looks the least damaged do you know that yeah I I know it's not being used because there's an abrupt drop off there and it's about an 8ft drop off uh so it would be very unsafe for anyone to be uh using that board
wall and that would any of these uh projects affect any future beach reourishment well first of all we would not replace anything in the Sunset um beach area until after reourishment
there's there's no reason to we need to get those dunes in there and then we put our our uh our new ones in in there i do not believe that any on the north side on Sunshine Beach will be in the way of
reourishment understood thank you because they're so far away in the south you just don't have you don't have enough room thank you all right anything else from staff nothing else for me
okay and we do have public comments the first one is Andrew Vasey andrew Vasey District 2 um it was mentioned that Michael Baker
went under a uh on call services in 2019 i'd like to read a Michael Baker press release from August of 23 michael Baker International a global leader in engineering planning and consulting announced today that the firm
has acquired Tidal Basin a leading comprehensive emergency and disaster management consulting firm tidal Basin will complement Michael Baker's efforts to support the nation's recovery efforts and rebuild infrastructure to be safer and more resilient
we're excited to welcome Titlebase and as a sister company to Michael Baker this relationship is a tremendous opportunity for the two firms who work closely together and drive more value for a shared client base anybody remember Title Basin here
so this contract for $368,000 of our money is going to the company that bought Tidal Basin who many of you spent a lot of time certainly on the resident side people spent a lot of time in
aggravation i'd ask you to reconsider awarding this contract take a look into this and maybe look at other options since some of you raised other questions rather than give an award of our money to the people that own Tidal Basin thank you
[Applause] Sarah Pennington hi Sarah Pennington District 2 um that's very interesting comments from citizen Andy Vasey and I am in full agreement with that that I feel like Tidal Basin
or whoever owns Tidal Basin is just not a company that um is known for doing good business in Treasure Island at this point i had a couple things planned to say so I might overlap some of the commissioners because it sounds like we're all kind of thinking the same thing when we hear about this um kind of
like what I was saying earlier some things you hear and you're thinking it just doesn't ring true to me and it doesn't doesn't make a lot of sense i think spending $368,000 just on design services and engineering for dune walkovers and boardwalk repairs seems very excessive i
did notice on the contract that it calls for engineering and design for 27 walkovers and there are some questions I think that should be asked before this contract is signed um Commissioner Dicki asked an important question which is "Have we looked at every single walkover
and ensured that it cannot be repaired i understand now we hear that some are temporary repairs but are there not some permanent repairs that could be easily made?" I also noticed that the public's director did not answer Commissioner Vasa's question if he has personally
visited each walkover and I would like to know the answer to that from him please yes okay great thank you um additionally uh can we not just use the exact same designs used to build the previous dune walkovers i understand some will need a
lot more attention possibly in Sunset Beach but I'm also wondering why are we spending this money and adding this additional time onto the project overall it just seems like the city could get together with T public works and figure
out a much more efficient solution that does not cost millions of dollars and take all these years of time just for simple dune beach walkovers i know they're not simple but I don't think is as complicated as this is sounding so far thanks
thank you Sarah brandy Long hi um the public works director actually mentioned the liability associated with the temporary fix um I think there's a huge liability with the one at 123rd it
was 14 stairs about to have to go down and up to get to the beach i think that that's a pretty big liability whenever you figure the average person when they set off for a beach trip they've they have their chairs and their coolers and everything and they they think they're going to be going trudging across the
sand but they come up to the end of a boardwalk that they have to walk 14 stairs down and then at the end of the day whenever they're really tired our seniors and everybody else has to climb those 14 stairs to get back so as it sits right now at least with the walkover I'm familiar with it's it's
pretty much leveled out because the dunes are washed out and flattened and and pretty much gone so the fact that it can empty where it is right now whether it's a temporary fix or that can become per permanent I think is a really good
solution to accessibility for everyone um for the height of the stairs whenever it was first modified um two three years ago now was um a pretty excessive modification I thought for especially
like our snowbirds and and folks that are a little bit um higher in age and so climbing up and down I just think that that's a big liability if we're talking about liabilities so that's all thank you
[Applause] thank you very much Randy Carlos Mero thank you mayor um everyone it's a pleasure to be here today with you and I want to congratulate the new commissioners i looking forward to your term i'm I'm sure you're going to and
the current one of course Ardent you know I'm sure that uh you're all going to make us all proud and and I certainly hope so i I just have one comment to say and ideally Mr mayor and commissioners um we would look at spending money as if
it was our own money when we uh allocate m funds to good co good causes good reasons to spend money i I I understand that but we we really should look at it and I'm speaking to you too Mr manager
uh as as our own money it's not free money and unfortunately too many elected officials and too many city bureaucracy and city administrators look at it as free money it's like oh we've got this money here let's go ahead and do something with it you know and but
behind every dollar that government spends at whatever level whether it's federal state county or city there's a person behind that that dollar a person who worked hard who's trying to make ends meet yes I know we're a well-off city but there's people
in Treasure Island who aren't well off and and I think that we we have to recognize that behind every dollar that the city spends uh there's someone who's worked hard to make that dollar you know they're trying to make ends meet they're trying to put food on the table not just
u you know certainly the waterfront properties um that's probably not the case but there's a lot of older homes people on on on um on pensions or only social security income coming in fewer now than before of course because a lot
of those homes have been destroyed um either by the hurricane or by the storm of of u developers coming in to to buy property and build it up so any anyway I I I digress i I just would like you commissioners to think in terms of let's
try to save money right it's not free money someone's worked hard for that money so that's all I have to say thank you so much thank you Carlos anyone else yes West Evans isa Palms uh $368,000
uh 27 boardwalk beach walkovers that comes out to $13,629 per walkover uh which you might say that sounds like a lot to build a walkover except you have to keep in mind that that's not even to build the walkover that's for uh them to consult on it so I
just want to point that out thank you thank you Wes anyone else hearing none we'll close the public hearing all right [Music]
um do we have a motion well I have a question yeah same too early for a question too late no no okay on the Michael Baker contract why don't we get competitive bids from other engineers that was exactly what I was going to ask
is have we gotten other bids or just this I feel like with on callers we've been having we've been striking out lately AED Jacobs hasn't given what they promised they've so when you have when you have a
continuous engineering services contract you can't compete engineering companies against each other it's called CNNA so you don't go out and get two competitive engineering bids you only do that with construction not engineering any
professional services that engineering architect landscape architects you can't can you explain what you can't means i'd like to know the explanation of that as a maybe the attorney can answer that so generally when you go out for
engineering services you um the what Florida statute dict dictates is is that for engineers in particular you want the most qualified person not the lowest rate so the the statutory and actually I'm going over this later tonight but in
procuring them you go out you basically select engineers based on their qualifications once the commission has ranked them we enter in and then we go to enter into a contract you have negotiations with those engineers for um
what those contractual rates are so whenever you're procuring an engineering contract that's the process that you go through these have all been competitively procured i believe this is a continuing contract so they've all been competitively procured you've entered into contracts with all of these
engineering companies multiple ones and then they've identified what their rates are then you take the engineering company that has the you know the best experience for this particular service and that's who you then negotiate a um a
work authorization with so when you had multiple engineers that you entered in that contract with they could be for all sorts of things you could have a structural engineer you may have um landscape um architects you could have um I don't Yeah surveying i was just
trying to think of different engineering um electrical civil there you go that's why I'm the attorney and not the engineer but there are many different landscape yeah and when was that contract when were they picked did you say 2019 2019 and it's a five-year with
a two-year option uh one-year option two years so they're going to this is on their sixth year and then you'll have one more year which would be a seventh year but when they were chosen they did not own tidal basin which to me that is
a huge red flag um I would agree with the statements that were made that that to me is a huge red flag because they've not proven to be a reliable resource and it just it's concerning to me when we're talking about that amount of money is
there no way to I mean with the conflict of the city having the issues um and all the different things with tidal basin is there a way to figure it out I guess is what I'm asking do we have more than one engineer
that could uh could do this work uh I think we have three or four or you could put an RFP out separate you'd have to do an RFQ i'm just concerned because of the the
title basin link um them proven not to be good and then only having I mean that's a lot of money to only have from one but I also understand that legally you do understand that they're like in two different departments i of course I
understand that of course I do um but I uh if I can ask done by this Michael Baker Oh yeah recently uh the most recent one would be the end streets we did the uh the new drainage and pavement with them which would have
been um uh 1 Avenue over in uh Alakapri Island Drive over in uh Paradise Islands and then we did uh West Gulf Boulevard so we've done
million-dollar designs with them that are you know not million-dollar design i'm sorry over a million-dollar construction projects you mean the paving and the drainage drainage and paving and we've done some in streets with them which would be drainage and
paving um we've done some environmental work with them they did our dune uh vegetation um work where we would identify non-native they'd come in and they'd pull it out you know but they were the designers and then we had the
you know the actual weeders well a lot has changed in six years so since in 2019 they've been contracted i'm not a fan of this same
well the I'm going to push back here a little bit because the alternative would is going to be extending out the time that we start this process is that correct i mean if we do an RFQ or whatever we do to go get additional bids it's going to extend an already pro a
process that's strung out that you described I think uh uh two weeks ago that could take three to five years to do this now we're talking about adding on additional four to 6 months is that is that a fair statement
if we go out for RFQ um let's say it takes us two to four month two to four weeks um we send it out for 30 plus days we
review it for 30 plus days and then we um we then select it we negotiate it we get a price for it so what are you looking at six months five months do we have any idea when we're going to do the
dune replacement because we really won't build this out until the dune is replaced you all know probably more than I do about the the dune reourishment yeah and I I don't see where we're going to get our dune uh renourishment uh in six months no or eight months or even a
year so I with within a year yes within a year yeah yes you think it will be done within a year or we will be told how long it will be within a year no it's on a less than a 360day calendar okay
through the county and it's probably about the 350day calendar now i'm just concerned because it just seems like you know everything that's putting forward it's like oh it's it's only this amount of money it's only that amount of money um all those only amount of monies add up a lot and it I just I don't like I
mean personally I don't like the idea that we have no idea what any other firm would charge for this and it's I mean commissioner if I could I think what um it's okay no what what was trying to be
explained over here when we have on call service contracts like this that vetting part has been done previously and you're right it is a lot of money and I and I'm glad that we're able through FEMA to apply for reimbursement of the money because it is a reimburseable expense that was directly related to the
hurricanes so so that's a good option that we do have and I did hear what Mr merrell was talking about that yes it is a lot of money um but it is 29 or 27 to 29 walkovers plus boardwalks and when you think about the boardwalks that are
at the southern side of the city you know the ones that are down there's a lot of work to be done which is why it's 4.3 4 4.4 million if you take an engineering design most of the time architecture and engineering depending on what the
structure is and of course how complicated is either you're looking at 15 10 to 15% this is less than that because there's going to be a redundancy in the design process right but each side has to be do its certain things you
have to survey it you have to do a geotech on it um so you know those those are what's driving a lot of the cost up and it's going to be that way for any engineering firm that you get so I would expect the same amount if not more from
other firms yeah it's reason it's reasonably priced i mean how do we know it's reasonably priced when we have no other Because it's less than 10% and I understand they've been vetted but they were vetted in 2019 it's less than 10% of the construction cost
well as a hotel here on Treasure Island you know the beaches are lifeblood so waiting that additional time is concerning for me you know yes it's a lot of money uh just it's kind of like a seessaw it's I'm at like 50/50 but still
it's it's a lot of money and I don't think we could wait but and uh they the fact that they acquired Tidal Basin doesn't I'm not at all pleased with the results we got from Tidal Base and the how long it took us to get the
information uh so I uh I'm not happy about that particular discovery but having said that that we're talking about building sand dunes uh or not sand dunes but building uh walk dune walkovers uh I can't imagine that that
uh you know that it's I'm not going to say it's that difficult it's too difficult for me to do it but I would hope just about any of the engineering firms that we have vetted out could handle this job right so do we have another firm that uh is already been
vetted and we don't have to do an RFQ and we just switch to another firm just to compare and throw it on the next commission meeting that's what I'm asking for i would just like some kind of a comp not be on the next commission meeting they have to generate the documents and go through their own
proposal writing and and generate their own numbers so it won't be on the next one what's the timeline for that and I would say um it could go on the 1st of May around the first meeting in May even a second meeting of Maine I'm okay with
Okay and pushing it to the future do you want me to discontinue using Michael Baker i would say no i would say then why are we not using them for this one i want to come
back i just I just want to know publicly what is well in in any business whether it's a city non-for-profit city or a for-profit business you need something to compare it to and right now I'm just being told that oh well that's a good price and I just if we have other
engineers at our disposal I understand it'll take a little bit longer but we don't have dunes to put these over anyway so yeah you that's my that's my concern so with engineering services you're not going to get a comparison just So you know what you'll do is if you don't want to go forward with this
engineer which is perfectly within your discretion then he can negotiate with a different um engineer and they will provide a price but let's say their price was higher you're not going back to this one there's no comparison on that scale so I just wanted you to know
like when you're dealing with bids but um that next even if you did an RFQ or an RFP no so with engineering you do an RFQ you pick who are the most qualified after you pick that we start with number one and we negotiate and if we come to a
successful negotiation with regard to their rates that's the contract that comes before you that was done with each one of these continuing contractors i'm just saying I don't want you when you made the comparison business i just didn't want you to think well I can go and I can look at the price of this one
look at the price of this one and pick it with engineering services the law doesn't provide for that okay so if we were to table it so that we could possibly have further discussion on it um no that's I mean I think if if you're
I just I'm very very concerned at the fact that they own Tidal Basin very concerned about that right and if you have a concern with that company um you know I mean there's no requirement that you do business with that company i would say we go out for RFQ or
RFP we're not going to start construction anytime soon uh because of turtle season right turtle season starts May 1st and we rebid it and hopefully we get it done before beach nourishment and to answer your
question I really don't want to do business with a firm that now owns Tidal Basin and owned Tidal Basin when we just went through what we went through the last six months we're dropping these companies like flies commissioner if I could clarify I I think what you said was you know do an
RFP RFQ but I think what we were talking about was to go to our next on call engineering services got it yes not to go out with an RFP RFQ that I retract that statement yeah that's what I've asked for so we we have like three firms
that could do this for us that are already under contract and been vetted and I can go out and request who would you like what are the options kimley Horn and Okay I was just waiting for like a
shake or anything kimley Horn AED any questions on that one no keep going um [Music] no i I don't think the names are going to
mean mean that much to us mike why don't you They don't mean that much yeah Kimberly Horn is fine with me why don't you You want me to try Kimly Horn yeah please thank you Mike yep thanks sorry sorry for that all right thank you okay so we are
basically just taking this off of the agenda for this evening there's no motion second so this item has failed and they'll bring you back something else okay so then we just move on all right so let's
move on to uh H5 Treasure Island Historical Society City Hall Project good evening former city manager Amy Davis had worked with the historical society prior to moving into city hall to create some art for
our city hall um the historical society's been working with uh DJR Enterprises to create the wall wraps that you see one behind us here in the chamber one in the second floor um opposite the elevator the third design
that they have completed and there are five that they're um scheduled to complete is the one that's going to be on the elevator wall on the second floor and that is dedicated to our police and fire past and present the police and
fire chiefs did look at it they seem to like the design and um we just need your consensus on whether or not you like the design and if approved they'll be installing it probably within the next few weeks and then there'll be a reception with the police and fire
dedicating the wall any questions do you like the design the only change that the police department had asked is they had a really old police car with a dog in front of it i guess it was because of the dog not the police car so the fire
or the police department asked that their antique be placed on the wall just like the fire department's antique that was the only change they had and they have no problem with it nope they like it now okay i see uh police officers of past looks like in the 50s
based on the vehicle age what about a group picture of our current uh police force we can add that if you'd like i mean that's that's why the design is here to see whether or not it's dedicated to our hero heroes past and present so I would like to see that okay
possible i can't ask that the whole department uh sure myself as well that would be up to them to get the photo they have it oh all right well peanut gallery do like a background shot before the fireworks that's the only time we all work
together so they have for the last three years does the fire department have their photo chief you like the one that you have we need on record yes um we take a group photo every fourth of July because that's the only time of the year we all work together we
have a dinner and uh we all before the the shift splits but we been for the last four years we've done group photos and they're good yep okay absolutely that would that that would be really nice and that'd be a real good morale booster as well yeah great and you guys need that right now
all right i will pass that on to them that means you have to get pictures trip you'll have to get photos and then um they'll install it and we'll dedicate the the wall all right great thank you very much don't we got a vote um no just
consensus yep i All right and that uh concludes our uh items for tonight we will be doing a workshop uh and let's get back together in about 10 minutes hopefully around 7:30
okay hi [Laughter] Good evening and welcome to the commission workshop April 1st 2025 i'd like to call this meeting to order the first item of business is for the city attorney and city manager to
give us their reports i have no report this evening okay thank you Mayor Doctor and commissioners over in economic development they wanted me to pass on that Penllis County needs our help in shaping the county's action plan that will help rebuild our homes
and businesses help renters restore infrastructure and make communities safer from future storms county is asking that residents go to the website recover.panelis.gov and take the Panelis recover survey so they can speak up and
see how the $813 million in federal funds that have been awarded to Panelis County will be spent public works asked to pass sign that the RFQ for engineering services to reconstruct the master pump station and public works facility was due on March
26 only one firm submitted an SOQ for review and after consulting internally and reviewing state statutes we are readvertising due to the fact that the city did not receive a minimum of three statements of qualifications the next due date for this will be May 2nd good
news for beachgoers and has been mentioned previously public works completed an assessment of the dune walkovers and will be performing repairs where they are be able to from a feasibility and permitting standpoint currently 99th 100th 103rd 120th 121st
and 123rd Street accesses are open with their dune walkovers over in the fire department the public safety facility design pre-bid meeting conducted was conducted this week with six design firms in attendance chief Bars will be attending the regional state emergency management
prehurricane season meeting and also will be in Tallahassee this week to lobby for our public safety funding request and to participate in the fire service capital day the police department want everyone to know that the police officers and communication staff created 608 records in the
computed computer aided dispatch program between Friday March 21st and Friday March 28th the se selective traffic enforcement program resulted in 30 traffic citation citations and 44 written warnings during this period 132
parking citations were also issued along with three dog on the beach violations over in park and wreck they asked me to pass on to please mark your calendars for next Saturday April 5th to join us for Treasure the Island Day our annual community appreciation day from 4
to 8:00 p.m in front of city hall this is your chance to connect with city staff meet local organizations and enjoy a fun-filled evening with activities for kids such as a petting zoo and pony rides but there will also be live music delicious food and drinks and more in
other news Roselli Park will have an egg eggs egg sighting Easter celebration on April 19th at 10:00 a.m the Easter Bunny will arrive at the park at 9:45 a.m to get ready for a fun-filled egg hunt and showcasing your creativity in the Easter
hat and bonnet contest and that would be Sorry Commissioner but that's for kids 10 and under thank you bring your baskets and your Easter spare for a hopping good time summer camp registration started March 3rd and camp will be from June 2nd to August 8th
enrollment to date is we have 104 individuals that are signed up for the 10-week full camp enrollies and we have 78 for the weekly camp enrollies revenue collected to date is about approximately a little bit more than $82,000 comparable to comparable excuse
me to last year where the 2024 revenue was about $35,000 hot off the press this afternoon we were notified that Park and Wreck had received $281,650 from the United States Tennis Association Florida Section Foundation
for Hurricane Relief this money will be used for work at the Treasure Bay and will include tennis court fence repairs resurfacing of clay tennis courts and the electrical work needed to repair and mitigate the electric to the tennis court light
poles over in community development they asked me to pass on the city of Treasure Island recognizing recognizes that permitting process can seem overwhelming and often often complicated you might be wondering why permits are so important permits are essential for ensuring
community safety safeguarding property investments and maintaining guidance with federal state and local regulations following these guidelines also helps our city stay eligible for vital programs like federal disaster assistance city codes reflect these
requirements and any development in the flood hazard area of which the city is entirely in must have the proper permits and approvals before work begins these regulations aren't just about following rules they're about safeguarding Treasure Island for future generations
to assist residents city staff are reaching out to those with pending or missing permits to provide guidance and support additionally permitting 101 workshops with Renee are now available Monday through Wednesday to help answer questions and clarify the process to further protect our community ensure
compliance the city is increasing our monitoring efforts for unpermitted work here's what people can expect stop work orders will be issued for projects that lack required permits remember all permits must be fully approved before work can begin and our
code compliance team will report any un unlicensed contractors to the appropriate agencies seaw walls are part of our critical infrastructure here on the barrier islands and many have sustained damage code code compliance will begin contracting and contacting
property owners regarding the necessary repairs and replacements people are asked if you notice unpermitted work debris and easements or damaged seaw walls please report these to the code compliance team at codes at mytasreasure island.org we're here to support you and
we thank the community for their cooperation as we work to work together to rebuild and strengthen our community over in the administration section Wednesday marks six months since Helen hit and after witness seeing the impact hurricanes can have on our beautiful
city it is crucial to ensure you're prepared for the upcoming hurricane season which will be here before we know it mark your calendars for May 28th from 6:00 to 8:00 p.m to get storm ready the city of Treasure Island will host our annual hurricane expo on the fifth floor
of city hall once again Mike Clay chief meteorologist for Spectrum Bay 9 News will will discuss this year's hurricane season predictions and more more details will be forthcoming last week crews started demolishing the old Treasure Island City
Hall a building that has stood since 1952 marking the end of an era it served the city for many years and became a cherished landmark just next door the former public works administration building has also been demolished plans are underway for public works to
construct a new facility in the near future as mentioned earlier for Turtle Talk Treasure Island Adopted Beach will be presenting a turtle talk on April 15th and 16th at 6 PM under the city hall building at the picnic
tables lastly just a couple of items i met with the city of St peter St petersburg chief administrative officer about their property on Gulf Boulevard their parking lot is now open and they will be working with their community development staff to get a demo permit for their snack bar which was
substantially damaged the parking lot will remain open while some minor maintenance is completed for the parking lot and along the trail yesterday the city was notified actually it was last night that FEMA will not be extending funding for the
1206 program this is the program that FEMA has which authorizes FEMA to provide funding to state and local governments for permitting building code and flood plane administration and enforcement that is the program that we are currently using to augment our staff
with representation from Jacobs and also from up at the state the f the current funding will expire on April 8th and community development and HR are working to put together a list of critical positions and the costs associated with those positions that we need to continue
our recovery actions as I get that together I'll be meeting with the commissioners individually to appraise them on what those positions and those costs look like and then bringing that back to the commission meeting and for a commission meeting for consideration and that's all I have if you have any questions
yeah I do uh are we going to hold a meeting uh next Tuesday a workshop i I do have um a consensus for being able to do a meeting for next Tuesday
mayor having uh I I will not have public works representation there at the meeting but if if if we just wanted to have it for is it a singular subject for um multiple subjects it's multiple
subjects that all take place at a similar time okay and and I can work on what that looks like um because I think there was a few items on there having to do with um a fee and rebuild uh excuse me fee for rebuild and elevations public
safety facility and also um solid waste correct correct but I I just want to reiterate I will not have any or excuse me Mike Hilfri is not available because he's on pre-approved vacation okay yeah yeah I I think that uh we need to do that cuz we need to start making some
decisions before we can uh move forward and um if we're going to get anything done in a timely manner and who knows what that is um we need to to start taking it um I I'd like us to see maybe even um every month for the next few
months anyhow to see that there is a meeting on the off week between the first uh Tuesday and the third Tuesday i agree with that we got a lot a lot to do
i also agree thank you and you just said between the first and the third Tuesday so the So the second Tuesday of each month would be a workshop okay i'll work with the uh city clerk okay in order to schedule it make sure notification is done once we get a full
agenda put together for you great thank you all right let's move forward then uh we only have uh a government accounting review and uh I understand that we have three groups that are going to be
presenting um so Mike if you would Jason we need you okay it's that one yeah I have to sit down because I've got a Okay okay
so this is uh the purpose of this is to familiarize you with some of the some of the can you hear me some of the differences between public and private accounting now most
of my background is public SEC private equity all that gobbleygook but I I'm very knowledgeable of the government side as well and it's
a completely different animal so oh so again uh it's designed to just give you an overview of some of the differences give you a quick historical background talk about financial statement users because they're completely different uh fund accounting
which is the basis of governmental accounting uh some accounting basis uh basics of accounting and then financial reporting so historical it was started in
1913 the whole regulatory atmosphere uh to do that i won't read all of this but basically um we've had about a hundred years to get hip deep in regulations and rules and that's on both the private and
the public side but so the differences in ownership on the government side it's it's state or public more regulations so forth on the private side it's either individuals corporations the funding you get taxes
appropriations that type of thing private side investments loans sales revenue and the like decision making decisions are made by elected officials and decisions are made by the owners or of the management of the company profit
motive there is none here private obviously there is accountability we're accountable here at the government to the public and private you're accountable to the shareholders or the owner the users
um the I think the biggest difference is is the general public is a big user of the financial information and a lot of that information has to be crafted with that in mind on the private side you know it's the owners and the
shareholders EBITDA cash flow that type of thing um on on another user is obviously the management administrators that would be uh that would be the team here uh in the private it would be the management team uh within within the
company uh also uh users are grtors donors and lenders when we write a grant we have to provide you know any any number of financial information to them and obviously on the private side you've got the SEC
investors uh and banks and then on the and then on top of that we have legislative bodies and other government entities uh that are using our financial statements and I know that there's any number of document requests that I get
from any number of of sources where we have to provide that information so fund accounting is basically the kind of the foundation of the whole thing and I'm not going to read all that to you but think of it
this way you've got a bucket you've got several buckets of money and a fund is one of those buckets and that bucket account has specific revenues and expenditures that are designated within that bucket or silo so you have the
general fund you'll have enterprise funds that type of thing and we'll get into that but conceptually that's the way I think about it but I'm simple uh so so on fund accounting uh there's there's three types there's
government funds proprietary and fiduciary now Treasure Island has no fiduciary funds proprietary we have enterprise funds we have no internal service funds and then then on the left hand side uh the general fund special
revenue capital debt we have all of those we don't have the permanent funds we'll get into a little bit more detail on those funds but that's that's the overview so the general fund
um it's it's essentially this is the the basic fund this is the big one if you want to call it that essentially this is where most of the a lot of the taxes go primarily at Balorum you got permitting and fees franchise fees which are fees
charged by the city uh for public use of rightaway that type of thing intergovernmental grants state revenue sharing all those types of things are falling into the general fund on the spending side you've got administrative staff expenditures public safety
physical environment those types of things one of the and we'll get into it a little bit later one of the most things that that the the untrained eye is not used to seeing is the fact that um when you look at what's known as an
income statement capital spending is right there on the income statement in the private world it's all capitalized you see depreciation but you don't see that in the private world and that is that is probably one of the biggest
differences you'll see is like wow what is it why are why are things so expensive well we just bought a facility and that's showing up in the income statement uh special revenue funds these are funds are used to record proceeds
from certain revenue sources one is penny for panelis uh it's a 1 cent uh sales tax or yeah sales tax um and it's going to run probably for the next you know till 2030 anyway uh right now the
city is using the funds for you know facility rehab public safety vehicle and equipment replacements road surfacing seaw wall rehab and the like we have the county gas tax uh these
are uh from the local option motor fuel tax act beginning in 1985 and basically that's for paving projects there was a transportation trust fund that was established years ago but a few years ago it it it's no longer in use it's
it's gone by the wayside and the building fund was created in 19 uh to administer the restricted use of building permit fees and by the way this is where the refunds are coming from it's coming out of this
fund and then there's the debt service fund and this is used to administer the debt that we carry uh we have uh Isaac Capri and Palms Bridges outstanding principal of about
294 the new city hall we've got outstanding principal of about 6.7 and we have two revolving loans of uh about a million dollars maturing in in uh 35 and 37 mike would you happen to know the
interest rate that we're we have on at least the two big big loans there um I'd have to double check but I think it's in the neighborhood of four and a half to five i'd have to double check that please do yeah sure
now the island also has an enterprise fund and the difference between a special revenue fund and an enterprise fund is the fact that that an enterprise fund uh it's called enterprise because it's theoretically a business right
there's there's a product or service that the city provides in exchange for the services themselves so we have the wastewater fund which supports the collection and transmission of all wastewater solid
waste that kind of speaks speaks for itself and then the storm water fund uh and again these are feebased uh funds that either us directly or through the county we rece like the sewer bill we get reimbursements from the county for
our share of uh of the of the uh of the sewer and then there's the capital projects uh fund and this is really used to um account for all of the capital that uh the island uh the island has um
there's the Gulf Boulevard undergrounding undergrounding project and then there's a facility facil city facilities fund that was to track the remodeling of city hall but it also has built into it the future public works
facility and the safety building okay u going off course just a little bit here uh I wanted to give you just a real topline flash report for the month of February now I'll be giving them a very much more detailed report
for the second quarter but this gives you kind of a punchline to the whole deal so uh through uh through February total revenues uh were about $18.7
million and it was below it was 680 driven 680,000 below last year a lot of it was uh wastewater uh sewage but it was or wastewater usage but it was there were a
lot of ups and downs if you really go through all of the details and it's very difficult to assign one one single thing expenditures uh that was a little bit simpler to uh sort out we were um it's funny we
we were below we we we spent more but we spent $3 million in hurricane cleanup and it was offset by almost $800,000 in lower capex and then everything else was you know 90,000
better but it was all hurricane driven it really was and to a certain extent hurricane driven on on the revenue side as well um just a quick insurance government update uh I reported the uh
the first reading tonight of a million8 uh second reading last week of 484 and then 34,000 was baked into the million nine that that you saw tonight so right now we've we've collected about 2.4 4
million uh on insurance on the government's side uh we've submitted if you add it up quickly a million4 and seven is about 2221 that we've submitted to FEMA on debris removal uh we submitted the
million4 on the first uh January 6th and we submitted the second trunch in uh on on the 7th um we have other things cooking as well um with FDM we've got the Jacobs we've got IT equipment uh
we've got the FEMA CATB the terms just drive me crazy um anyway uh the fire and police pod rentals that's essentially $80,000 a month uh and that'll be ongoing but we have to apply to get reimbursed that
type of thing i have a question on the last slide can you go back to that please whoops whoops how do I go backwards oh I'll try this one well apparently you're not allowed to
ask questions because I can't move this damn thing here let's do this that one yes so Oh okay thanks thanks to my assistant property property taxes were due obviously yesterday so when people finish paying property taxes in
Treasure Island where does that money go into what fund goes into the general fund adalum taxes oh and and just so you know um most of the property taxes if you look at it on a month-to-month cash
flow basis it's really front-loaded so in other words we get we get a lot in the in the first twothirds of the year but then it falls off dramatically in say the last quarter so it's it's it's a reason that we look we we are flush and
we will be flush but monthto month it it will get the revenue stream will go down but that's expected gotcha thank you okay 15 16 Oh okay um I am not going to spend a lot of time
on accounting basics because when I was in school I didn't stay awake that much um so essentially in the private sector there's what's known as full acrruel accounting it's it's it's you know you're you're accounting for dollars
that that are anticipated to come in or anticipated to go out and in the government it's called modified acrruel accounting which only means that they acrew for some things but the upshot of it all is that most of government
accounting is almost like on a cash basis you the cash comes in bang it's revenue the cash goes out bang it's it's expenditures it generally works that way but when you get into this a lot of the balance sheet items that I won't bore
you with that that's when the modified acrruel accounting comes in um the big difference is in terminology private expense government it's an
expenditure that that is just the way it rolls um and it debt service expenditures or claims on adjustments there's there's all kinds of things that we can like obviously get
into but essentially all the expenditures are recognized when the liability occurs so when you get the bill you got to pay it that's when you that's when you recognize it so audit requirements so we are going through an audit right
now uh basically we are required to have an audit from a certified public account accounting company right now we're using car rigs in Ingram in Tampa uh the
commission awarded the firm in 2021 uh this year's audit should be uh complete by around the end of April or so and um the city will and the result will be something called an ACER the annual
comprehensive annual report which is about that thick and once it's available I'll be happy to issue it u and we are required by law to produce this report um so that's
that parenthetically the uh car rigs and Ingram were awarded in 2021 and their contract is set so that they will do their their last audit under contract
will be for next year's audit FY25 could I was just going to hop in real quick and just say this is in Florida law there are particular procurements that are unique in statute selecting your auditor is one of them so after um
this audit probably at the beginning of next year you'll go start to go through that auditor selection process um and it like I said it's very statutory driven there will be a commissioner that's involved in um the selection just the preliminary selection before it's
brought back to the board but this is just one of those unique ones I just want to draw your attention to and Chuck when when this year's audit is complete rather than submitting a a booklet uh that thick to us could we
have the auditing firm here present to us their findings of the uh audit the key the key findings i'll have to check we always have we do yes absolutely i didn't remember seeing that last year yep okay okay uh a couple of terms that have
become popular in this chamber uh one is called encumbrance and essentially that's a restricted use on funds so in other words at at at the end of the fiscal year the city of Treasure Island will
essentially add up all of the purchase orders that were that were authorized at year end and those purchase orders because they've been approved obviously for projects that improved and expenditures those are committed funds
and so consequently you'll hear about this term incumbrance so if we have you know you've got a surplus revenues expenditures you're you say you're plus 10 then beginning of the of the year we
were we had incumbrances of about $9 million from the from the jump so those have funds have already been committed and obviously the incumbrance at some point goes down to zero and then right at year end you have to just add it all
up and you run through the cycle again the other thing is called a carry forward and what this represents is the unspent balance of any appropriation so in other words if if you have a if we
have a project that runs over multiple years that's been approved well it's going to carry forward so that just rem represents a future capital obligation may not it may not it doesn't mean that
the total carry forward is something that that needs to be burned off that year it's just it's it will be reduced over the year but it and it may go up because of new new projects but it's it's don't think of it as something that
oh my gosh we've got carry forwards of $17.3 million it that doesn't mean we've got to stroke a check for $17.3 million by the end of the year all it means is that we've got many projects some of
which go over a period of years and those totals are represented in the carry forwards and there's not cash reserved for all of those projects in other words we if we have $17 million worth of projects is
there 17 million of cash somewhere uh well like I just said we're not spending $17 million this year we're spending $17 million over some period of time depending upon the project priority
that the commission provides and the project itself some may be a one-off and others may may go multiple years so but from a cash but from a pure cash standpoint we're fine we're not going
but we're not going to drop a check for $17 million tomorrow no I I understand that but but when we carry forward projects do we also carry forward the revenue to pay for those projects or the cash to pay for Oh yeah yeah of course
yeah yeah and I know there's some exceptions like that underground uh utilities uh I know the 1.5 million that we got for that and that's in our carry forwards but it doesn't it's not money or cash that we have in our bank we can
go to the county and get it but we can't we don't have it in our funds well that discussion is a little bit beyond the scope of what we're trying to do here and and you know I'm open you know I love talking about that stuff right okay
uh the budget and uh I like I was telling Chuck I'm I'm like in the first level of Dante's Inferno but it's the budget inferno at the moment um but Florida statute provides that that uh we
have to create a budget and it has to be balanced period full stop and that's what we do uh speaking of the first layer of the inferno uh the the process is underway
um I'm starting to work with all the department heads on getting everything together so that's this essentially April and May uh in June um I'll be getting uh some estimates from the property appraiser i've got a call with
them tomorrow to try to get a sneak peek on things to see where they're see where it's looking um July we'll have a budget august uh we'll have a budget workshop september uh that's when we've got to roll everything out and get it uh uh
finalized with all the all the authorities uh that type of thing and that's called a trim calendar which is truth and millage thanks thank you any questions
are we getting away from flatline budgeting for the for the fiscal year 25 or 26 rather oh that's a loaded question ardan you know that i know but no we are going to seize it we're so just to bring you up to speed when the budget was
created last year I mentioned the adalorum taxes well I was first I did the first quarter i'm going like well gosh what's going on with Adalorum taxes well truth truth be known when it was budgeted it was budgeted as a flat line
same every month when in fact it's more like this so when we do the budget this year it's going to be more like this and not like that so we can like time this thing and have something that makes a budget comparison more comparable
all right the only other question I had then was uh regarding operating expenses and capital expenses and I know I've mentioned this to the city manager before it's very difficult to track how we're doing relative to budget uh when we intermix the two because we can be we
could be I'm not saying that we are we could be overbudget on expenses on operating expenses but if we didn't uh go forward with some capital improvements that we had planned that would show underbudget on that and therefore it's really confu it's very
very difficult to see how we're doing versus budget and what I was hoping we could do going forward uh even if the state or or government accounting procedures require us to to combine the two for the purpose of No we can split it yeah we need to have that split
you're operating versus the the capital spend yeah i appreciate that mhm thank you you bet okay okay the next presentation tonight is the municipal um debt discussion points
and uh Molly Clark who is a senior managing director with public resource advisory group is here to speak with you about it you also have uh Matt Sanssbury and Dwayne Draper on the phone this makes up your uh basically your public
finance group these are financial advisors prag is your financial adviser and then um Dwayne serves as bond counsel hi looks like that was a to the right
and how do I Good evening i'm Molly Clark with Public Resources Advisory Group serving as financial adviser to the city and as Jen mentioned my colleague Matt Sansbury who works with me at Prague and Dwayne Draper who's with Bryant Miller Olive and serves as bond counsel to the city
they are available on the on the Zoom um I've asked each of them to feel free to jump in during my presentation dwayne will speak to a couple slides specifically um related to some of the legal aspects of um issuing taxexempt debt so as we go feel free to interrupt
and jump in with questions or hold them to the end whichever you prefer works for me so um again just a quick overview of what we'll talk about this evening the city's current needs as well as government's roles and responsibilities
as far as funding essential services we'll talk generally about an overview of municipal debt and specifically financing options for the city's current needs i'll talk a little bit about the the city's current charter restrictions and we'll kind of look at if if the city
does choose to move forward with the issuance of debt how that will look within the parameters of the charter restrictions that we work within at the very end I'll talk through a couple of case studies one is a is the bank loan that the city um entered into to finance
the purchase of this building and another is a bank loan that I worked with the city of Tampa in doing that one is sort of relevant here too because that was also a loan they issued in the face of unanticipated capital needs so
as we jump in um just as an overview or sort of a quick overarching statement the city doesn't have a lot of outstanding debt and the last time debt was issued was 2020 so I realize that many of you most of you may have not had the opportunity to go through the debt
issuance process that is something that Matt and I do and Dwayne does every day and we have been doing for the past 20 plus years so it's unfamiliar territory for you but it's very familiar territory for us and please answer ask any question that you'd like to and know
that um it's something we do all the time and it the process is organized as it may sound sort of complicated from your standpoint because it's unfamiliar territory but to the extent we go that direction you have a team of good professionals we actually like what we
do we do it on a daily basis supporting um Florida issuers so that's the business we're in and we're happy to be of support to you should you chose to choose to go that route so some of what I'm going to go over is no is you know you guys know a
lot of this stuff but we'll go through this part of it sort of quickly again if you do has if you do have questions as I go just please feel free to stop me so as you know no this is no news to anyone the city sustained damage during the two
24 uh hurricanes and those you know the damages we sort of chalk up to both public safety needs that were introduced and public health risks public safety was affected by the loss of the police department and fire department
headquarters public health is affected by the accumulation of storm debris that needs to be removed so despite you know the fact that these projects have come your way unanticipated they should not be delayed and I understand that the
engineering and design process is underway for the joint police and fire complex and as that is underway a next step will be determining how that project will be paid for um the city has the legal authority to issue debt to
cover those project costs subject to the debt issuance limitations of the charter and issuing municipal debt to uh fund these projects would be appropriate and reasonable we um Mike touched upon the differences between private debt and
public debt and really in public debt the debt a municipality is would issue is taxexempt and so that the benefit there is taxexempt interest rates the the interest to the investor is taxexempt so the investor is willing to
receive a lower rate of interest which saves you money the responsibilities so you have the benefit of the taxexempt rate you also have the responsibilities that come along with issuing taxexempt debt which are you know you cannot run a foul of any of the provisions in the US
tax code that would make that debt become taxable that's why you have Dwayne on your side he's your bond council he will guide that process from a legal side um public debt also the benefit goes to all of your stakeholders all of the
residents of the city of Treasure Island and at the same time they are on the hook there the revenues that will support the debt are made up largely of taxes and fees paid primarily by the residents of the city and so you you as
the governing body should you approve debt for these projects you um each stakeholder doesn't have the chance to v voice their opinion you're doing that as their representatives and so you have this balance of making a decision for other
people which involves putting some of their um revenues at risk but but then it's also your responsibility to to um ensure that the government continues to function and providing essential services to your residents is really one
of the key ways that a government does function so talking a little bit further about that government's roles and responsibilities a government is tasked with providing various essential services among them we include public safety and public health capital assets
are certain assets that enable the delivery of those essential services such as a police department headquarters a fire department headquarters and so on so there may be instances where an issuer uses a capital improvement plan to sort of plan out how spending will be
done on projects that ensure the ongoing delivery of essential services in the absence of a formal capital improvement plan or in the face of unanticipated projects that you need to do outside of a priority order that may have already been established the
government would sort of take a look at these on a case- by case basis which is really what we're doing right now and again this is somewhat redundant but just driving it home even when
unforeseen events led to unanticipated expenses it doesn't take away government's responsibility to provide the essential services and continue that you know ongoing functionality of government and the delivery of public safety the delivery of public health are
both you know clearly essential services so again we go back to our question and what we're here to hear tonight is to talk about how you know the city will make a decision as to how it will fund debris removal and the replacement of police department headquarters and fire department
headquarters so that kind of wraps up current needs and government's roles and responsibilities and we'll look here for a few minutes at different uses of municipal debt so again when we talk about funding essential services essential services can be funded with
reserves or paid on a payo basis or when that when those are not options you can fund essential services using debt proceeds so PIGO funding works for smaller projects and assets with a shorter useful life those types of
assets would be vehicles IT equipment items that may be expensive but are replaced somewhat more frequently and you don't necessarily want to issue long-term debt for short-term asset um the advantage there is there is no interest cost if you're paying upfront
out of pocket in full for an item it's interest free the disadvantage is you are paying out of cop there's a big capital outlay to acquire these assets whatever they may be and the entirety of that cost is borne by your current
taxpayers there is no sharing of the cost of that asset with the future generations who may use it in the case of a vehicle IT equipment etc the life of the useful life of that asset is short enough that it makes sense for it to be born by the current users of that
asset long-term financing works for larger projects and assets with a longer useful life for example water and sewer systems police department headquarters this building your city hall this these types of assets will be used or could be used for 30 years maybe longer than that
so it makes sense to finance that asset using long-term debt you can match the maturity of your debt to the expected useful life of your asset in this case the disadvantage you do pay interest on that you're borrowing upfront in order
to stretch the repayment of that debt over a long period of time and that uh that comes with the carry cost of your interest could I ask a question real quick on that absolutely um if on this particular kind of loan on the long-term
financing if we get a grant and is there a early penalty um how how does that work with this particular kind yep when we look at um different types of long-term financing if there's an expectation that grant funding or other
funding may come in before the maturity of that debt we can write into the bank note or if it's a a long-term bond issue you can um design what we call prepayment provisions and we'll say with a bank you can say
"Hey um we'd like to issue a loan with a 10-year maturity but with the option to prepay in part or in full starting on the 3rd anniversary of the closing date of the loan or the first anniversary or
anytime on or after July 1st 2026 depending on when you anticipate those funds might come in and if the funds don't come in you you pay the debt as it was scheduled you still have your final maturity date as was stated okay there
can be if you have a loan or long-term bond issue that's not prepayable that might come at a slightly lower interest cost than when you add in the prepayment provisions the bank might say "Yeah we'll offer that to you but it's going to increase your interest rate a little
bit because now we're not going to get that return over the life we thought." So it comes at a cost but it's very worth having most of the time depending on what that added cost is and so we sort of take a look at Thank you what
they may offer and go from there to evaluate um you're welcome so another advantage to long-term financing um we create what we call intergenerational equity that's we are
able to spread the cost of the asset over gener the generations of users of that asset so in the case of this building this was a 15-year loan we could have gone as long as 30 years but the city didn't need to we the this
building will be in place for at we don't know but you you know you could expect you'll use it for a couple of decades and it makes sense in that case to spread the cost of that building over the lifetime of users who will be able to benefit from the city owning this
building now as we look to benefits and considerations of issuing debt for the city's current needs debris removal typically debris removal in normal circumstances would be
sort of part of your ongoing capital or your operating budget you wouldn't necessarily need to issue debt to fund debris removal however in the case of your current situation where the de the amount of accumulated debris is much more than your public works department
would normally have to handle and the expense of getting rid of it is much higher than would normally be have been the case this would be deemed an extraordinary capital expenditure making it eligible for long-term or or you know debt financing will determine what term
is appropriate you also have um opportunities for FEMA reimbursement uh which could be used to offset the debt and the trouble there is we don't know how much or when but it's we have some comfort to think there should be FEMA reimbursement opportunities out there do
we still have enough debris removal and this is probably more of a question for Chuck do we still have enough debris removal that we would it would be cost prohib I mean that we would need a loan on it i mean we really don't have that
much debris no but we haven't been reimbursed from FEMA and dependent upon the length of time that it could take to be to be reimbursed you know it might be something we would want to consider okay for expenditures already out the door um same with police and fire department
these are long-term assets they're eligible for debt financing and in both cases you have access to capital financing these are projects that are eligible appropriate you have access to capital markets or bank markets for
financing solutions and you have an experienced team of people who do this considerations timing the these projects do need to commence and we cannot wait for FEMA so that's a little bit of a you
know not ideal situation we will as we consider issuing any date debt we need to work within the constraints of the city's charter limitations and we also are aware of the community sentiment regarding the use of debt in the past
possibly present as well so it it's important to be sensitive to that and aware of you know that as part of the entire decision-making process now talking to some of the financing options for the city's current capital needs and during this section Dwayne
who's your bond council will jump in to present some of the um materials related to the legal aspects of issuing tax exempt debt as we look at it um the police and fire department headquarters would be great financing candidates for a bank
loan similar to the financing that was used for the acquisition of this building um the interest again is taxexempt to the holder which results in a lower cost of financing for the city should we move forward with the issuance of this debt we would go through a
validation process which this that was also done on the bank loan that was used for the acquisition of this building this protects the city from future challenges that regarding the use of tax exempt debt and again Dwayne your bond council will speak to that later in a
couple of minutes um I think moving on to debris removal again to the extent there is enough reimbursement to be done there again we could do this with the short-term bank note as a tax exempt note again we would
also validate that to protect the city from any future challenges but Chuck the the uh debris removal have we paid for that already and we're just waiting to be reimbursed correct yes okay and that money came just out of our
uh reserve fund right yeah okay so there's no need for at least here in the short run to borrow money to fund that okay and then on the slide you also had um the last slide you also identified a
line of credit structure i know you've presented this under the guise of a debris removal but with in responding to the hurricane if there was a cash flow concern could the city do a line of credit yes and we there's um different
programs that are out there for operating line of credit um that we could look to for you know currently or for future events god forbid um but yes those a line of credit is um just like
it sounds you know you you you have an available line that you may or may not draw on if you need to you can and the provisions for repayment of that line are worked into the financing agreement you would make between the city and the bank providing the line of credit it's
it can be a useful um structure i have no position on this but I just wanted to make sure that that was drawn out to you because there are other cities that have um set up lines of credit just be so that they don't have a cash flow issue when they're waiting for
the reimbursement from FEMA which could be very quickly on some issues but could be several years on others so just so you know one of the tools that's available to you okay um I will like Mike did with some of his slides there was a lot of detail
and he saved somewhat on the higher level which I'm going to do here because sometimes this gets into a level of detail that we may not need to do tonight although if we can always come back the as as a municipal government Treasure Island is able to issue taxexempt debt and again the advantage
there is the lower cost of financing the holder of the note is willing to accept a tax exempt rate saving you money basically by issuing your debt at a lower interest rate um we we got a couple of indicative rates
interest rates move around all the time right now a 10-year level debt service would be about a 3.95% on a taxexempt basis 15 year was a 399 20-year 406 so you can see the yield curve is quite
flat in that portion of the of the curve this moves around it could it could be vastly different by the time we do issue any debt if the city goes that route just as an indication and when we're working with a with an issuer as we did in 2020 for the for this
loan as we're um structuring and trying to anticipate what the debt might look like we can get current rates amvertise over a certain period of time come up with what that annual debt service payment would look
like and say is this a comfortable amount if it's too high we can stretch it out longer if the 10-year payment is too high we can go to 15 if 10-year payment is hey you know what we can actually afford a little bit more let's go down to 8 years that'll lower the rate so you know we can take a look at
the project amount take a look at the existing interest rates depending on the maturity date you're targeting and find a solution that works um and that everybody is comfortable with and it's sort of transparent at the entire time as we work through
so again we'll go through a little bit when would a municipal entity issue a bank loan um and this basically here you've made a determination we want to use debt to finance this project and you can issue a bank loan you might issue long-term bonds in the capital markets a
bank loan is a really nice solution for smaller to medium-sized projects and from that 1 to 50 million honestly 50 million is a fairly large amount it doesn't necessarily sound very medium but it depends on who the issuer is and what their needs are and historically
how they've issued their debt um bank loans also work for financings with a short to medium-term maturity date and what we mean there a very typical uh bond issue maturity date would be 30 years many banks are not willing to go
that long we'll see lots of banks very comfortable lending within a 5 to 10 year range fewer will will go sort of 10 to 15 to 20 but you'll have a smaller universe of banks willing to lend depending on how long your maturity date
is and as you know the fewer banks you're that are available to you to provide that financing the likelihood is that you may end up paying a slightly higher interest rate so a short to medium-term maturity date a small to medium-siz
project how does the issuance occur and this um this sort of timeline or you know series of events is very much what we did in 2020 with the bank loan for this building we will and as you'll see this list here
many of the elements of this process will happen simultaneously and my role the role of your municipal adviser is sort of to coordinate and make sure that things are happening as they should and along the appropriate timeline and everybody sort of has the information
they need in order to keep this getting done efficiently and properly you have Dwayne as well who will jump in um to make sure that everything is functional and legal and you know you're sort of protected from financial aspects by my firm and from your legal aspects by your
outside bond council so the issuance process basically first you identify your financing team and the timing requirements when do you want to have the proceeds of your debt available to you dwayne will speak to this one but you'll adopt a reimbursement resolution
if that's applicable sometimes it isn't sometimes it is it may be in your case at this time next week I've identified the financing structure i believe a bank loan would fit best however I'll double check i'll look at capital markets rates i will make sure
that you're looking at the best possible solution and getting the best possible rate for the structure that you choose validation dwayne will also speak to this one if applicable you'll go through the validation process once you have these sort of milestones
accomplished you'll um enter an RFP process where you you present your proposed financing to a number of different banks and take in bank RFPs deter and identify from there who offered you the lowest cost of financing from there you'll select your bank and
their council prepare bank loan documents which in this case you're you have a bond loan documents basically for a bank loan you don't have a marketing document because you're doing this directly with one bank you're not marketing to a large group of potential
investors come back get approvals of the governing body as needed execute those documents and that basically consummates the closing when bank loan documents are executed it's sort of a somewhat anticlimactic event loan documents are
executed and then the bank sends you a wire basically the following day so it's a um it's a fairly straightforward process and one that the city hasn't you know it hasn't been all that long since the city has done it although I don't think anybody of any of you were here
for that particular financing so Dwayne if you can jump in and speak to adoption of the reimbursement resolution sure I'm happy to can you hear me we can awesome thank you and I'm sorry I'm not
able to be there in person and uh I'm also a shareholder at Bryant Mill and Olive with Jennifer and we privileged to be able to serve as your bond counsel and I wrote a few notes down here based upon some of the items that Molly would like me to cover and then I'll jump back in later uh once she introduces some of
the charter limitations um but uh uh one of the the questions that one of the commissioners or two commissioners raised was you know we paid for our debris removal already why why would we borrow and um the idea there is to the
extent that headed into the next um hurricane season the city felt exposed in terms of its liquidity levels um one option available to you would be able to um reimburse certain prior expenditures
uh that are eligible with the proceeds of a future taxexempt borrowing um you're not ready to borrow now you may not borrow at all but to the extent that um you make that decision several months down the road here for example and consummate a loan we're recommending
that at your next city commission meeting you consider the adoption of a reimbursement resolution which preserves the flexibility from a federal tax law perspective in the case where the city wishes to reimburse prior uh
expenditures and debris removal would qualify um from a future tax exempt borrowing the um you're allowed to go 60 days backwards from when you adopt that resolution so for example if you were to
adopt that resolution at the um city council level in on you know April 15th you'd be able to go back and reimburse monies paid to debris removal haulers um within the prior 60 days um on a tax
exempt basis in the future uh the adoption of a a reimbursement resolution is pure purely creating flexibility it's non obligatory so you don't have to issue debt in the future but it allows you to put the flag in the sand in terms
of how far back you can go uh to reimburse those expenditures so we we recommend that you you consider that um Marley also mentioned um a municipal bond validation which we successfully used in connection with the financing of
the city hall uh there are uh under chapter 75 of the Florida statutes the municipalities like Treasure Island are afforded a unique opportunity uh to in essence get a declar de declaratory judgment on the validity of of your your debt incurrence prior to
incurring the debt and therefore put to bed any potential legal challenges thereafter it's a very fairly expedited process um in in situations where it's uncontested and not appealed it typically um is a process that goes it
takes about um 60 to 90 days and while that is occurring uh some of the other steps on the previous slide that Molly mentioned could be occurring on a on a parallel track and in fact that's what what we did back in uh with the city hall financing while the RFP is going
out to select the bank proposal that has the lowest cost net interest cost rate as required by your your charter that process in of itself probably takes 45 days from beginning to end and you can be working on the bond validation pro
procedure um so with that I'll I'll stop and hand it back over to Molly and then I'll jump back in a little bit when we talk about your unique charter thank you Dwayne and we're actually jumping right into the charter requirements now so I'll kind of um go
over what the what the charter requirements speaking to the issuance of debt are and Dwayne please jump in as you'd um as you'd like to so in section 410 of the city's charter there are provisions laid out um governing the
issuance of debt i have these um discussed here in the next few pages and we'll just kind of go through what the words in the charter say and then what it looks like when we put the numbers to it right now um so this the first provision we'll look at
um talk speaks to the city's total debt and the charter requires that the outstanding debt of the city excluding debt directly related to the treasure island causeway shall not exceed 3 and a.5% of the city's annual assessed valuation of the total taxable property
within the city so as of the 2023 audit the total assessed valuation was about 3.05 05 billion 3 and a half% of that is was 106.8 million the city's current
outstanding principal on its outstanding loans is about 8.9 million so we we pass that test this is a pass fail you're well below 3% of your assessed valuation so you pass and then
just subtracting 8.9 million from 106.8 8 million you have theoretical capacity of 97.8 million only provided that the other tests are met so now we're going to test
two which is the single project test the charter requires that no single project shall be approved for debt financing without an affirmative vote of the electors of the city if the cost of said project shall exceed 15% of 3 and a.5%
of the city's annual assessed valuation so again the 2023 audit were about 3.05 billion in total assessed valuation 3 and a half% of that is the same 106.8 8 million 15% of that is just over $16
million so currently the single project limit is $16 million give or take um so when we look back to part one we know we have nowhere near you know that in a single issue we have nowhere near that theoretical capacity in the you know the
portion above our single project limit is just about $16 million going on to the next test this is the annual debt service test and the charter requires that total annual debt service of the city including res required
reserves but excluding all debt service relating to the Treasure Island Causeway shall never exceed 20% of the total annual revenues of the city from all sources excluding revenues from the Treasure Island Causeway and federal and state revenue sharing funds so from from
the 2023 audit total net revenues excluding causeway revenues was about 34.2 million 30 34.3 million 20% of that is about 6.868 million and our existing annual
debt service is just you know it's about 1.05 million so again there we pass theoretical issuance capacity shows a higher number but we're limited by the single project test which is sort of that highest hurdle to clear and we're
limited to a single debt issuance no more than that 16 million approximately additional charter requirements related to municipal borrowing could I interrupt real quick oh yes just on all those tests I just want to remind everybody that's an
annual number so it changes every single year so as property values go up your single project value may go up if property values go down your single project um threshold may go down thank you other charter requirements um
borrowing power shall only be exercised upon an affirmative vote of four-fifths of the city commission in accepting any bid on the obligations of the city the city must accept the bid which produces the lowest net interest
cost for the indebtedness this is a net interest cost there's many different ways of sort of measuring the interest cost over the life of a a type of debt there's different calculations we do um this this provision
um is creates a certain amount of inflexibility and going to the question that you asked earlier sometimes we go out for an RFP and we say hey bank this is what we're looking for and from time to time a bank might come back with what
we call a nonconforming response saying you know this is slightly different than what you asked for but do you like this And sometimes that non-conforming response is actually attractive and you think "Oh my goodness that really works quite well we're going to take it." It I
just did this a little bit less than a year ago with the city of Tampa we found a bank came up with something different that really really worked so when you really lock in how you must select your financing partner that that creates a
bit of inflexibility it's sort of a nuanced um very financingoriented provision and so the re I I just point out what it what it means um because it's a little it's kind of particular um I'm also going to hop
in one more time on that one which is just um so this was something that we experienced when they were going out for the debt for this building is one of the things that had to be done is everything had to be identified so if you wanted that prepayment option you had to specifically identify that within the
RFP if you had a a maturity date that you were looking for so you only wanted it for 10 years you identified that and they bid on that instead of bidding on um let's say well you could have this rate for this length but if you do this length you could have this rate you're not going to get that information you're
going to get within the parameters of whatever you decide it should be yeah um and the last charter requirement related to municipal borrowing this states that in the preparation of any bond city commission shall give
particular consideration to all factors that will achieve the highest possible rating of the national bond rating services and secure the lowest net interest cost which is the same as the prior um test for the indebtedness here when we're talking about ratings that
really only applies to bonds issued in the public markets long-term bonds in the capital markets if you do a bank loan though the banks do not want a rating and you won't get a rating so this provision would not likely apply to debt we're talking about for the current
projects and would only apply if you do a long-term bond issue on the in the capital markets again go ahead oh no i'm sorry i I was going to jump in when you were finished oh thank you no no Dwayne go ahead yeah so great so I I I wanted to round back
uh that with regard to your charter you know being able to borrow uh to finance long useful life capital assets is a powerful tool that's available to municipalities um and you
know that you you always hear about good debt and bad debt and and and bad debt is the you know what the federal government does to to meet its current expenses when it borrows that's that's not that's not really necessarily you know a good way to go
about it and uh but also um that um debt good debt uh matched up with long useful life assets like your police station like your fire station can be very helpful and powerful because it it allows you not to overburden your current taxpayer and your current
rateayer uh in the case of potentially water and sewer debt looking at it this from 35,000 ft your charter um has restrictions in it that puts you at a at a disadvantage when compared to other uh
the vast majority of municipalities um in terms of being able to do good debt for long useful life assets or to respond in situations of emergency um and and as was noted by a
city commissioner during the um regular board meeting um that's a conversation for another day what we need to do in connection with helping you navigate some of the challenges that you have now is to is to work work uh with those uh
work with those limitations um going forward you know an example that Molly referenced um in in the charter that um you know we need to respect and recognize is the single project debt financing requirement um and and and I
think um earlier um there was a reference to a joint project with police and fire and and and a joint project with police and fire in terms of headquarters makes an abundant amount of sense when you think about things like
econ economies of scale and commonalities in terms of timing and scope um and contracting but your charter um requires us with in and maths involved in this in certain instances to
separate uh projects um uh without without having to go to the voters and so that's that's something that we would need to to work through um that charter provision that's unique to Tre Treasure Island with
regard to this potential joint financing to see if it can be joint or whether it would need to be done on a on a separate a separate uh perhaps less efficient basis you know keep in mind in the background of all of this the Florida
Constitution applies to all municipalities and it requires it already requires a referendum uh to authorize debt by municipality to finance capital projects if it matures in greater than 12 months and is payable
from adalorum taxes you know no matter what the underlying municipalities uh charter says back to the liquidity restoration um discussion we had earlier uh headed into the next hurricane season i did
want to point out um piggybacking on some of Jennifer's comments that we also serve as bond council to the city of St petersburg and we helped them put a funded bank loan solution in place um for $50 million back in December
uh which allowed uh them to deal with some of the debris removal costs as well as some of the capital repairs in the community and we're currently working with them on a potentially larger uh line of credit solution
um all on a on a tax exempt basis much of which um much of which is uh designed to be repaid uh with future FEMA at least in poor all or a portion to be paid with future FEMA
dollars and insurance recoveries the timing of which may be unknown to some degree and may you know may be um after a couple more hurricane cycles so I did I did mean to mention that I I did mean to mention that earlier so I
think that that kind of covers some of the points I wanted to to piggyback on with regard to Molly's u recitation of the of the unique charter limitations at Treasure Island thanks Dwayne um now just quickly this was sort of a
point in time I got some indicative rates on a sort of generic basis from someone I work with at one of the banks and for a $12 million issuance as of last week with a 10-year maturity that might result in a in debt service this
is principal and interest advertised over a 10-year period of about 1.5 million per year if we stretch it out a little further your rate goes up but you have more time over which to repay that debt so it comes down a bit as of last
week this indicative rate maybe that was about 1.1 million stretch it out further to 20 years now we're just under $1 million in debt service a year at about 965,000 if we increase the size of the loan to 16 million sort of saying okay what
would it look like if we were maxing out to about our single project limit at a 10-year mark you're right around $2 million a year 15-year again your rate goes up but you're stretching it out over a longer period of time so there you're maybe around one.5 million a year
if you go as long as 20 years now you're closer to $1.3 million a year these numbers change all the time indicative you know rates come up rates go down but that this would be part of the process if we do explore opportunities for issuing debt this would be you know
interest we're sharing with your CFO and staff as we go through that process a couple of case studies so first just talking about the process we went through when we issued the $8 million loan in 2020 to purchase and
renovate this building the first step the finance director at that call at that time called us and said "Hey we're looking at purchasing this building we've identified a building we seem to have identified an agreed upon purchase price what do we do
now?" So we we sort of um took a look at what I just showed you on the prior page i said "Okay how about we look at 10-year 15-year and 20-year maturities?" Our loan amount was $8 million we sort of went back and forth and landed on a
15 million a 15-year deal looks about right then we reviewed the city's charter requirements to make sure that if we do that deal the $8 million deal at you know 15-year with interest rates at that time we weren't going to violate any of those
provisions next we worked to draft the bank loan RFP the RFP also was drafted to comply with the city's charter requirements um requiring that the bid um the bidder the winning bidder be that bidder who's providing the lowest net interest cost
to the city we went through the RFP process determined the uh low bidder that was truest at that point we moved into documentation and closing and we closed that loan March 5th of 2020 so you know that really kind of went through the steps that I outlined
earlier it was very straightforward this next one I won't go into too much detail but this this also was in 2020 and the city of Tampa which is also a client at that time was um you know cash flow was different we had the pandemic
going on and they had some a debt profile where there were some high payments due in fiscal years 21 22 and 23 and the prospects for being comfortable making those higher debt service payments just it didn't feel good to the city at that time so we sort
of this was a financial restructuring in your case the bank loan you did purchased an asset we also do financial transactions where we're really just there's no asset but we're re um refinancing restructuring existing financing in this case to create debt
relief and here it the part of the reason we went with a bank loan structure is they wanted to get these loans closed pretty quickly um that it was a sort of time is of the essence type of situation they wanted to get these loans closed in about eight weeks
and the bank loan market works uh quite well for something that's a little bit expedited so just pointing out this transaction because it was an unanticipated need we looked at it we figured out what's a good solution and we were able to get it done so next
steps this is this kind of wraps it up if you as you think about it please ask questions this evening or as follow-ups to tonight if you'd like to if we determine a path forward we'll be issuing debt for any of these projects the parties involved will include you
sorry that should say city commission city commission finance director city attorney Dwayne the bond council and my firm and when I say you are involved basically we are all responsible for being completely transparent to you and so we'll be sort of you know going
through the process and vetting what's going to work well what is the best financing solution and then we will keep you informed and involved and be available to answer questions at any time the goals would include developing clear objectives communicating with each
other commuting communicating with the public as needed through you through staff finalizing the financing plan and executing the financing plan so with that I've sort of thrown a lot your way but you're probably happy to hear I'm done
essentially this is like a sales pitch based on what uh large construction projects we have in the future so what are your fees our fees we have a contract we have a long-term contract with the city and it the the fees are
outlined in that contract we're paid only if debt issuance closes we're paid a per bond fee and for some work we are we have an hourly contract that we you know it's it's all executed in this
long-term contract that we have with the city so I obviously you guys did work for us in 2020 i wasn't here for I've been paying attention but what was your fee for this eight $8 million bond issuance i have to go back and check
which I can get but I we were somewhere between 15,000 and $20,000 that amount I believe may have changed because we have re-executed our contract with the city since then but it would not be um drastically different
from where we were then thank you and if and if I can hop in just so that you know the reason why this even came about is because of a couple of things first of all um you were paying uh large amounts to um your debris haulers your
the bills were coming in and so the question became and what came up from um finance and even with Chuck and stuff was we're going to pay this when are we going to get reimbursed what are the options this isn't a a trying to get you
to do um any kind of borrowing it's simply to tell you what the tools are in the box and that this is your team that you've currently hired to perform that the other way it came up was there was a loan that the city was considering with that was um from one of the government agencies i
can't remember which one community disaster loan yeah the community disaster loan even something like that a community disaster loan which is offered by the federal government would still have to meet your charter restrictions um and so that was one of the things that we were looking at is can it meet
that and is the interest rate that they're charging you market rate or better um and so this is how it all came up is because the city was starting to look at do we you know are how are we on financing are we
going to need a line of credit are we going to need these tools and rather than come to you at a time period where there was any kind of recommendation with regard to the tools the thought process was we'll do an education piece on here's the
financial here's um borrowing as a whole and then the last part that I've some of you have seen before sorry but some of you haven't is procurement so it was just trying to give you an overall viewpoint of of that and what the tools are
thank you molly I assume I heard you say that you work with the city of Tampa and the city of St petersburg do you work with other cities our size yes yeah and I I actually Dwayne works with the city of St pete okay i don't my firm does not work with them but I do work with city
of Tampa how does our debt compare to other cities of our size um you gosh the other city that quickly comes to mind I work with the city of Palmetto and they don't have a lot of
outstanding debt either but they have a they have a little bit more than the city of Treasure Island my firm i personally don't work with Safety Harbor but colleagues of my that's a client of our firm as well and I think Safety
Harbor probably has a little bit less but not you know it's within increments of $5 million is you know they're fairly small pieces to sort of work within so I'd say other small cities have maybe a little bit more other small cities have
maybe a little bit less those are the two that most quickly come to mind we do a lot of work with not me personally but one of my colleagues with the Florida Municipal Loan Council and they issue debt on behalf of small cities who don't issue their debt because they are
infrequent issuers and sometimes the the municipal loan council has a program that sort of facilitates the issuance of debt by infrequent issuers i don't cover them but again that's just our firm covers issuers large and small we do work with lots of
smaller Florida municipalities we work with you know Miami Dade County as well so we sort of cover the bases and it's it's helpful really to be honest because we sort of see different things that happen at different issuers and almost
regardless of size we have lessons we can apply from one issuer situation to another it doesn't the the dollars don't always matter it's sort of how the process went we can apply that elsewhere and um and take lessons learned
circumstances to avoid and it you know it's Yeah and I'll jump I'll jump in to to say just to looking back at the fees on the $8 million city hall transaction um the uh the the financial advisory fee was $15,000 molly you have a good good
memory thank you our bond council fee was $27,500 the um bank council fee was $7,500 and the city attorney fee was $9,000 um which um a total uh cost of issuance budget of
$61,500 which is um percentage-wise um you know uh very you know very small uh given this the the magnitude of the of the loan we we also represent a number of of smaller municipalities in Penllis County for example city of Tarpon
Springs city of Deneden city of Safety Harbor along with Prague um city of Largo city of Madiraa Beach and I think the really the difference between Treasure Island and those local governments is that they are able to um
they have more flexibility to be able to to structure debt in certain instances if it makes financial and policy sense um and and and to to to Jennifer's point I think um this is you know a gratus um
workshop for you all just to understand as as Molly said the tools in your toolbox and this this is coming up because of some of the questions which are being generated as a result of kind of the circumstances that you're in uh the needs that you have and um you know
some of the um proposals that have already come across your desk and and and just certainly can you know kind of The way I would like to leave this is that Molly's firm and our firm along with your city attorney sit on the same
side of the table as you do we're your fiduciaries legal and financial across the table from us is the lender and the lender's council the lender wants the best terms from its perspective and the uh both economically and legally and
we're here to assist you all in that circumstance to the extent that you go down the debt road to put in place um the best possible financial and legal deal from the standpoint of the city it's its its taxpayers and its and its
uh and its you utility users in from the standpoint of um of of of accessing that that debt market which is similar but very different from some of the commercial borrowing um experiences that you all have probably had in your
personal life or in your business life mark uh that $8 million loan that we did in 2020 how how would those fees compared to today like what percentage higher would they be are to you know um I can only speak from
the standpoint of bond council but you know the there pricing those services is kind of a three components molly mentioned the contingent nature so the transaction um you only get paid uh a legal fee if
the transaction closes um so that you have a funding source with regard to that transaction the there is also uh what's called opinion liability so uh the the the cost of our services would differ from a in terms of a $2 million
uh transaction versus an $8 million transaction versus a $20 million transactions the liability for the tax exempt opinion um differs in that regard and then there's a guesstimate of labor and um and so you know typically I would
say that the city of Treasure Island deals are relatively small compared to many of the local governments that we work with and so most of what we would be doing here is in our minimum fee territory um which is just you know kind of bare bones because while these this
is an enormously large transaction that you might have considered on the $8 million borrow for the city hall building um and super important from the standpoint of yours it's more on the smaller size of stuff that that that we typically work on in a day in and dayout
basis um uh but nevertheless we put the same time and energy into that financing as we do into some of the others and that's why I call it minimum fee territory so I'll I'll let Molly speak to the the other cost of issuance yeah that thanks Dwayne that that's
helpful and you know the our PRAS fee would be somewhere in that range again I do have to go back and check our contract there are times we increase the minimums because our our costs of operating increase just like everyone's do so I need to go back to our contract but it wouldn't be dramatically
different than our fee in 2020 molly our minimum fee now is 20,000 as opposed to 15 back then okay thank you Matt so our minimum fee is 20,000 we and we would likely hit the minimum threshold level um so that's up from 15,000 to 20 i
would expect Banks Council would likely a little higher than be Okay where was Banks Council in 2020 7,500 7,500 okay we would expect that to come in a little bit higher and again because of the nick
requirement I we have to go back to how we did this in 2020 but the nick is calculated total interest plus bank fees divided by the bond number of bond years it's a it's a finances calculation so I think in 2020
we basically said this is you're limited to your council maxing out at a certain level we I think we sort of did some pre-serveillance of banks and said here's what we're looking at we need to lock in a a fee for your attorney that that number we don't have
total control we can set it as low as we want to the risk there is we don't get as many banks responding to the RFP so we would again surveil the banks who typically respond to these RFPs i think like Matt said it's likely that fee will be higher but it should maybe it goes up
to 15,000 which is double but again from the magnitude of the um financing size which we don't quite know yet what the amount is going to be it's a it's a small component when compared to the total financing size so fees are likely
to be higher but they should not double you know we should be within a fair reason sorry i know that's fake no problem thank you okay yep well done good good
great thank you so much okay um the next item you've seen before um or some of you have seen before which is and it's just a few slides um but it's just on
procurement in general so part of the the thought process was I was asked to do this again since there were several members that um weren't on the commission at the time in which I gave it initially and so um it's just a quick overview of procurement and how
it's very different in the private sector as it is in the public sector so in the private sector you have much more flexibility with regard to um responding quickly and being able to go out and and get quotes or prices on things than you do oftent times in a public procurement
because public procurement it first of all it's heavily regulated and second um it is the entire intent of it is that there be favors competitive procurement so that you would have more than one your stewards of the um public coffers
and so you want to make sure you're getting the best price for your residents the next slide so some of the legal considerations that we deal with in procurement first of all the constitutional prohibition so is this for a public purpose making sure that
we're not lending um credit this has indemnifications implications are we following sunshine public records those issues with regard to procurement there are statutory um provisions that impact or determine procurement uh if you are
getting a grant or an appropriation from the federal government then there are going to be federal um terms and conditions that have to be included in all of your procurements we actually ran into this with regard to um FEMA and some of the some of the contractors that we're using and you may have noticed
some of them coming across the DIS when we were doing amendments we were including all the necessary FEMA terms in hopes of being able to um you know demonstrate compliance and being able to get those reimbursements for the city um with regard to state um I say there's 40
plus laws but probably more than that um the state has a tremendous amount of laws on procurement and each and every year at least for the last six seven years um we haven't had a legislative session where they haven't changed something in procurement um you
have procurement restrictions regarding public construction regarding um bonding regarding um like we were talking about earlier tonight the auditor selection um also the engineering that we were talking about earlier again all driven by statute there are also ethical
considerations there are requirements with regard to use of timber steel there's requirements with regard to who can even um come in to procure and the different forms and affidavit that they must file
even to have a contract with the city so much more ownorous than you would um than you might think at first then there are local provisions there could be provisions within your charter within your code and then of course the city has adopted a procurement policy you've um set up thresholds for instance the
city manager has a set spending threshold everything above that will come to the commission there are also there could be grant restrictions so again this goes back to how it's funded um is it funded with um like a Florida D
grant or an FDA grant or things like that you've gotten procurements that have those grants and those restrictions then have to be incorporated as well next slide so briefly and I'm kind of doing this backwards i'm going to talk about construction and I'm going to talk about design but with regard to
procuring construction depending on the size of the project um first of all there could be a requirement that you have to go out to bid so if it's over 300,000 or more you must go out to bid there are some exceptions i'm not going to go through those exceptions because they're they're
very specific depending on the circumstance but just in general for your kind of general knowledge is if it's over 300,000 you have to go out to bid um then also um and 75,000 for electrical work and
you you see that there okay let me see next slide before you move before you move on from that one Jennifer I was just curious the uh it appears that most of these uh numbers that uh that you've used here 300,000 75,000 250,000 Yep
were done in 2009 so 16 years ago when you said so the new the new new amount has been adjusted by some kind of uh uh cost of living index or some some kind of index here correct uh so that was 16 years ago so the amounts are probably
much higher than what's on here or is this the is this the adjusted ones with the cost no these are the amounts that are within the statutory uh which are specifically straight out of the statute and then you would do the adjustment based on um the building index
so so numbers are much higher than what what these are probably i don't think that they're much higher but they're they are higher okay so um but this is a good rough estimate particularly because what you'll see in the next one go ahead
oh here you are um is that what isn't adjusted by statute um is that they've forgot I guess the legislature forgot to adjust it which is this statute regarding notices so you still have to publish in the newspaper if it's over 200,000 if it's um 500,000 or more you
have to publish and you have to publish for longer which would be 30 days okay um the next slide and I'm basically brought up the notice one just to give you an idea um when it comes to timing of these of how fast it happens when you're procuring a professional service
so we were talking about this earlier you're doing engineering you're doing architecture um landscaping mapping surveying uh those are all governed by what's called um the consultants competitive negotiation act or you'll hear us often call it CCNA you can go
ahead the difference when you go out for bid for construction it's all about the bid what is the cheapest price that I can get for this project ccna quite different what is the best experienced person I can get for this project so um
if it's over 35,000 then you go out to um for CCNA um and with that let's see hello Um okay
and so there are two costs there's the study cost let me see about this yeah and then um for professional services involving construction projects when there's a fee if it exceeds category 5 325 then you go out if it's a study then
it's over 35,000 you would go out the significance of um why cities will often use um continuing contracts like we were talking about earlier is because going out to RFP um or RFQ I should say is a lengthy process
because you go through uh two distinct processes one the qualifications and then you get to negotiate the contract you have at least two public meetings so it tends to be more lengthy when you do that process and you select multiple engineers then you have you've still
gone through the competitive process you have that continuing contract and you can utilize that um for construction projects any construction project that's under 7.5 million so without having to rego through the process so this is the two steps we were talking about you would
announce it the qualifications there would be a competitive selection there's a ranking and then the board approves the ranking then you go into negotiations and authorizes negotiation you go into the negotiations you negotiate with the first one don't get anywhere you go to the second don't get anywhere you go to the third that's the
process you go through but you can't go back so you start all over again or you start all over again and then once let's say you've had a successful negotiation then it comes back before the board and the board approves the contract um let's see there are also
variations on a theme so when you go out to construct a building um for a con public construction project you can have design bid build which is where you hire an engineer they go ahead and um design
the project you then go out for a construction contract the contractor constructs it um or well sends in a bid you award it and they construct it variations on a theme is there's design build in that you actually go out once
and the person who's designing it is also going to be the company that's building it um that's used occasionally uh I don't see that as popular in uh with local governments as
just the traditional design bid build i can't tell you that that's because one is necessarily better than the other i think it's done more from the standpoint of one is traditional and has been used for a long time design build um has been around for a while but folks just in my
experience haven't used it as much there's also a construction manager at risk which is kind of in between um you actually have someone who designs the project you have a construction manager at risk who comes in early work you know kind of evaluates the design does some value engineering and then will um
construct the project all of these have pros and cons um so you know with regard to that I I can't tell you that one is is definitely cheaper i can tell you that when you do a design bid build if there's something
that goes wrong you're going to have the engineer saying "It's the contractor's fault." You're going to have the contractor saying "It's the engineer's fault." when you do a design build you have less of that but there'll still be well you didn't include this in the solicitation so I didn't know that was one of the
criteria I had to meet um so you're going to have conflict no matter which process uh or I shouldn't say that if something goes wrong you're going to have conflict no matter which process um but there is there there can be less
with the less number of people involved which uh design build contract did we use for the beach trail the first time i think we did I think it was a design bid build so basically you had an engineer who designed it and then you had somebody else who constructed it i
wasn't here during that time but I believe um there was litigation that stemmed from that where they both went like this where the designer blamed the contractor and the contractor blamed the designer thank you all um next slide please and again
um this is my I think this is my last slide i've gone very fast i'd be happy to go through any of this more but I also realize it's late and I'm the last thing um but this was just to give an idea of a time frame so staff develops the procurement documents sends it to legal review and there may be revisions
depending on if there have been changes in the law if there's something unique to this project after um that you go through the process of the two steps with CCNA if we're doing a design bid build you go through those two steps which can take approximately
24 weeks they design the project they go through all the permitting and then they goes out to bid um once the bid has occurred and you've awarded the contract then you go through a notice to proceed and there you have
mobilization this timeline is just a rough timeline if you don't have to go through the CCNA project because you're using a continuing contract that might reduce time if you don't have big permitting issues with it but you just have minor permitting issues so for
example permitting on a traditional build versus like permitting on the living um shoreline huge difference in um permitting time frame because of the nature of what you were trying to construct and the number of agencies that were involved uh and then with
regard to uh the construction project again some of this would change depending on the type of vehicle you want to use so just to give you an idea and this was more just to kind of when you're planning and you're looking at projects
and you're thinking about okay I've got to go get my financing i've then got to go through this procurement process when am I going to go from an idea in my head to a shovel in the ground and this that was the purpose of this well back to the design build contract uh what direction
was used for city hall city Hall was again um a design bid build so you had it was a renovation so you had the engineer or architect who did all the um drawings for the renovations and then you had a separate
contract you entered into with the construction company to perform all the renovations and then as for that uh large construction project timeline um by the time you're shovel ready and you put pilings in the ground it's on average anywhere from a year and a half
to two years so I counted 3.1 years by time people moved into say a public works facility potentially potentially potentially it depends on the again it'll depend on like that one I don't anticipate to have
the same kind of permitting um issues or I don't know that that one would have as many permitting agencies involved let's say as like the living shoreline and so the permitting might be faster so that would cut down on some of the time frame depending on um you you have do you have
all the funding in place for public works and um the master pump station I I I can't remember whether you have all the funding in place but I know you have a good amount of it in place from the grants that you've received so that too would take out if if you have the funding in place you don't have to go
through any kind of borrowing or anything like that that would shrink your time frame um and then of course depending on the uh process you use and I believe you're using a construction manager at risk on that so right now you
are out to bid on the design professional who will design it and then you're also getting ready to go out to bid on the construction manager at risk who will work with that design professional to go ahead and do some value engineering and then construct the project here's a silly question does any of our
permitting department deal with that permitting yes if you're constructing in Treasure Island whether you're um the local whether you're the city or whether you're a resident you have to put in the good word so they expedite it
that's all you got on something uh not a large construction project let's use Seaw Walls as as an example seaw walls has a time frame like if we decide we need to do the 108th Avenue seaw wall as soon as possible it's not 70 to 80 weeks
out that's something we could do much quicker so so yeah I mean scope will pay obviously play into it but it depends on um like what the cost of that construction will be so for instance if the cost of that construction is under
7.5 million you may be able to use a design professional that you already have um a contract for if you want to go ahead and design that if it's over the 7.5 million then of course you're going to have to you don't have a choice you're going to have to go out to the RFQ so just that simple do I have to go
out to RFQ or not can save a tremendous amount of time and then um also um like I said I don't think that that'll have I I don't know about the permitting on that i believe it'll just be through the city um and then with regard to construction
you would still go out and have to bid it competitively so I I think that that time frame um again that time frame if you're using construction documents that you already have like our templates it's much easier to go out to bin so you have
templates for design bid build you have templates already set up for um construction manager at risk so when you're using those it's much faster than if you've never done a project in that particular tool like a design build we would be creating those um procurement
documents from scratch which would take longer so on something like what you were talking about I think that you have those in place so it could be shorter than that time frame i certainly would hope so yeah yeah and and and I gave this as a a general but I mean the person that you would want to ask is the
person who's heading up that project because they can identify they are familiar with the cost they're familiar with the the process as well and can give you a better time frame this was just more generic to kind of much like with the bonding where they picked out a couple of issues that might be of
concern that was just generic coverage thank you okay so let's now take public comment and the uh the first one is Mark Hoey uh good evening again Mark Hoey District
3 uh first let me clarify my comments earlier and Ardan was right to to call me out uh but I wanted to make sure you understood I I in no means inferred that the commission was considering adjusting
the debt cap uh or challenging the debt cap that we have my point was this though um there there's a reason that exists uh this community is debt adverse not saying no debt but debt adverse and
there's a reason that uh resoundingly was rejected when it was tried to be changed you know three and a half years ago so that's the point I wanted to make was uh I think we have to be very cautious in any discussion of that and I
think Molly did a a very good job in her presentation overall but she even mentioned public view has to be taken into consideration and I think as we start talking about all of these various capital projects it's going to be
instrumental that the commission and and the city team communicates exactly what why and how and to what degree of due diligence has been done not only to justify the the need but that the due
diligence was done to find the best lowest cost for the project as well i mean we're throwing out numbers now you know I've been coming to this thing for a while we've been talking about police fire some of the the numbers have more than doubled in just a couple of short
years and that may be it but certainly the people who haven't kind of paid attention to this are going to be shell shocked when you tell them it's going to be a 12 or$15 million uh public safety complex or any of the
other items that are coming our way to be dealt with so that's a big number to start kicking around and I think it bears very close scrutiny understand sense of urgency Ardan you know we've got needs and you look at the timeline you go "Wow this is
going to be a while." But we don't throw caution to the wind and just blindly go out there and say "Open the wallet or let's go borrow $25 million and knock these things out." So all something to consider and again I think uh the public
needs to know exactly the detail of the path that is going to be taken and at what cost thank you all thank you Mark andrew um so I want to talk a little bit about the debt issuance presentation that was
given um um in my work on airports I participated probably I don't know 510 billion dollars worth of municipal uh debt financing um and so one of the things that we're going to be looking at is as you all go through this is that
debt issuance on Treasure Island is going to equate to a tax increase on the residents and that's because the city has grown the government cost 50% over the last 5 years as the property taxes have increased the revenues um we've
talked about this many times the current fiscal 25 property tax revenue was about 13.2 2 million so if you can bring other taxes in from businesses in Treasure Island or parking revenues then you'll offset the
straight impact this is going to be when you go when you say you're issuing debt you're really increasing taxes we don't have free cash in the budget because the cost of government has swept up all the free cash that's been generated by the annual increase in our property
valuation and our property tax um for the new buildings you're talking about whether it's lift station public works police fire um you wouldn't do a short-term debt a bank loan or something like that you're talking about buildings
that have 20 30 years of useful life and so you're going to go in some kind of if you go with with a um a municipal bond you're going to get the lowest possible interest rate um on that you're going to do it over 20 30 years that's going to produce the lowest annual debt service
which is what you want to do as you put this on now and you try to reserve for whatever the city needs to build in 5 10 15 years when you're drawing down your your capacity of the 5.8 million you have in debt service right now um part
of what you have to consider when you do that kind of debt is that the for the fees the fees tend to run about 1% so the numbers that they gave for 8,60,000 it's pretty pretty good but they tend to run around 1% when we
budget for for bond issues you also have to consider capitalized interest and debt service coverage reserve so you actually borrow more than if your buildings cost 15 million you got to borrow $18 million because first of all you owe interest from day one so while
you're building things nobody seems to build anything quickly here so the meter's running on your capitalized interest you borrow that as part of your issuance cost and then you also have a debt service coverage reserve that you have to hold so it's going to be
somewhere of 1 1.2 to 1.5% so on again if you have a million in debt service you got to have a million in the bank and you got to capitalize the interest so you got to go borrow 20 to net 18 or 17 it just depends on what it is um the
I mentioned TI property taxes uh were 13.2 in the fiscal year so if you put out a bond issue that was around $15 million brings a debt service about $1.3 million that's a 10% increase to
Treasure Island property taxes now you can offset that if you can get more business taxes property taxes from business and development you can offset that if you can get more parking revenue but that's going to be your your debt service roughly all in on if you're
trying to net proceeds and you're you're doing capitalized interest uh debt service coverage and everything um so the um city has 5.8 million in debt service capacity based on the three
tests that she ran through um that's 44% of the annual property tax revenue so if you think you want to max that out your taxes are going to go up 44% so think of sort of every $15 million of proceeds you need are going to raise property
taxes 10% unless you can positively identify other revenues other than from residential property taxes or the property taxes that are coming in at the 13.2 to pay that debt service on any new debt you issue so I'm not taking a
position on any of the projects right now but I'm simply letting you know as a commission what we as the residents know and what we're going to look for and where the challenges are going to come from so in the hopes of having a dialogue about this um because that's um
part of how this uh is going to work with issuing new debt and the fact that if you're doing new buildings you're not going to be doing bank loans for five or 10 years you're going to be doing long-term debt thank you thank you
Andrew all right any other public comment all right hearing none we are adjourned