Okaloosa County BOCC — May 19, 2015 — April 21, 2015 Regular Meeting — reading text

Insurance Agent of Record and authorize staff to re-advertise RFQ Purchasing: Sale of scrap non-ferrous metal through quotes Public Works: Approval of new contract with Department of Corrections for Inmate Work Sqguad Public Works: Request from Boomer Beach Fitness LLC for Qualified Beach Vendor Certificate for calendar year 2015 Public Works: Public Event Permit Request from Truth Evangelistic Ministries for Rice & Bean Rumble 5K on May 9 Public Works: Schedule Public Hearing on May 19, 2015 at 9 a.m. in Fort Walton Beach to consider request of Dennis Ritter to vacate portion of Scallop Court right-of-way Public Works: Request to allow Choctawhatchee Basin Alliance staff and Fifth Grade students from Longwood and Kenwood Elementary Schools access to Longwood Park to plant grasses for shoreline restoration Public Works: Request from Island Sand Beach Weddings for Qualified Beach Vendor Certificate for calendar year 2015 Risk Management: Authorize staff to proceed with issuance of Request for Proposals for Flexible Spending Account Administrative Services and appointment of review committee Tourist Development: Amendment No. 1 to Agreement for Property Appraiser Services Tourist Development: Peter Mayer Advertising Task Order No. 150 Revision #2 for $195.943 on Contract C1l2-2007-TDC Tourist Development: Peter Mayer Advertising Task Order No. 148 Revision #2 for $648,750 on Contract Cl2-2007-TDC April 21, 2015 -6- Minute Book 72, Page 260 Okaloocsa County Board of County Commissioners 24. Tourist Development: Proclamation designating May 2-10, 2015 as Okaloosa County Tourism Week 5 yeas. 3. County Administration: Schedule Airports Strategic Planning Workshop for June 9, 2015 Mrs. Ketchel stated this is an important workshop and time 1is needed to organize it properly. She suggested moving the workshop to the fall. Mr. Harris responded that he is happy with that recommendation and suggested an entire day be set aside for the workshop rather than three or four hours. Mrs. Ketchel made motion, seconded by Mr. Harris, to delay the Airports Strategic Planning Workshop until September 2015. Mr. Boyles remarked there are many issues to be covered and expressed uncertainty in being able to cover them all in one day. 4 yeas, 1 nay. (Mr. Boyles voted no.) PURCHASING - REVISION TO THE TANGIBLE PERSONAL PROPERTY, COMMODITY INVENTORY & ACCOUNTABILITY MANUAL Mrs. Zan Fedorak, Purchasing Manager, stated staff requests a revision to Section 7(4) (B) of the Tangible Personal Property, Commodity Inventory & Accountability Manual. The current language references collection and sale of scrap metals by invitation to bid via advertisement in a local newspaper. Mrs. Fedorak reported staff has conducted research on this issue and use of quotes can be used in lieu of the formal bid process. She asked for approval of the revision: Scrap metals may be sold by public auction or by attempting three (3) quotes to obtain the highest possible price whichever process is determined by the Purchasing Manager to be in the best interest of the County. Mr. Harris made motion, seconded by Mrs. Ketchel, to revise Section 7(4) (B) of this manual as outlined above. 5 yeas. WATER & SEWER SYSTEM - RESOLUTIONS FOR SALE OF WATER & SEWER BONDS Mr. Jeff Littrell, Water & Sewer System Director, stated the following members of the bond refunding team are present: Mark Galvin, financial advisory with First Southwest Company; Mark Mustian, Bond Counsel with the Nabors, Giblin & Nickerson Ilaw firm; and Jody Bear with Crews & Associates, Bond Underwriters. April 21, 2015 -7- Minute Book 72, Page 261 Okaloosa County Board of County Commissioners He said staff recommends approval of the issuance of not-to- exceed $75 Million in Water and Sewer Refunding Revenue Bonds, Series 2015 and to authorize the Chairman to execute two resolutions. The first resolution authorizes the issuance of the Water and Sewer Bonds. The second, or supplemental, resolution delegates the authority to make certain covenants and agreements in connection with the bond issuance to the Chairman and the County Administrator. Mr. Mark Galvin, financial advisor with First Southwest Company, began a PowerPoint presentation of the Final Financing Plan Overview for the Water and Sewer Refunding Revenue Bonds, Series 2015. He stated at the February 17, 2015 meeting, the Board authorized county staff, its financial advisor and financing team to proceed with preparation of the necessary documents and reports to refund the county’s outstanding Water and Sewer Revenue Bonds, Series 2004, 2006, and 2012 loan. The goal was to obtain debt service savings, releasing the existing debt service reserves ($7.4 Million) on the outstanding bond issues and to vrefund $3 Million in construction proceeds for the acceleration of the county’s meter replacement program. Mr. Galvin highlighted the following objectives of the financing plan: e Release of over $7.4 Million 1in existing debt service reserve funds by eliminating the requirement to fund a new debt service reserve, due to the county’s strong credit ratings (Aa3/AA-from Moody’s and Fitch). e Eliminate the requirement to deposit the final $652,000 payment into the existing debt service reserve account on October 15, 2015. e Eliminate tax-exempt bond-related restrictions associated with leasing the Water and Sewer Administration Building. e Eliminate the provisions regarding bond insurer imposed restrictions, including minimum ratings for future bond insurers and debt service reserve surety policy providers. Mr. Galvin reviewed the steps completed for this issuance, the bond rating reports, and what steps are now required. The parameters for the 2015 Water and Sewer Refunding Revenue Bonds are: e Not to exceed issue size of $75 Million e Not to exceed final maturity of July 1, 2036 e Not to exceed maximum True Interest Cost of 3.50% April 21, 2015 -8- Minute Book 72, Page 262 Okaloosa County Board of County Commissioners ¢ Underwriters’ Discount not to exceed $5 per bond e Optional redemption no later than July 1, 2025 at a price no greater than 101% e Not to exceed the estimated Cost of Issuance of $381,056 (excluding Underwriters Discount and bond insurance, if any) The preliminary timetable includes approval of document by the Board on April 21; print/post and mail POS on April 23; Pre- price, price and award bonds the week of 2April 27; and closing/transfer of funds on May 21. Mr. Harris made motion, seconded by Mr. Goodwin, to approve the recommendations and to adopt the two resolutions as presented: RESOLUTION NO. 15-99 RESOLUTION NO. 15-100 TOURIST DEVELOPMENT - AD AGENCY CONTRACT COMPLIANCE AUDIT Mr. Ed Schroeder, Tourist Development Department (TDD) Director, recommended the issuance of a Request for Proposals (RFP) for advertising agency contract compliance audit services. He also recommended appointment of a RFP review committee consisting of the TDD Director; Finance, Administration & Compliance Manager; and a member of the Tourist Development Council or a member of the Board of County Commissioners. Mr. Peacock stated when this idea of a compliance audit for advertising agency services was first brought up by Mr. Windes, he did research. He noted that he briefly spoke with Mr. Windes on this issue. Mr. Peacock said he believes the described scope of work can be provided by the Internal Audit Office. He underscored his desire to build confidence in the county’s Internal Audit Department, saying he believes the department has come a long way. Mr. Peacock stated he also believes we have come a long way in management of the TDD. Mr. Peacock reiterated his confidence in the Internal Audit Department to perform the desired services. He stated the external audit firm currently under contract could provide additional sgervices, adding a dquote from the current vendor could be brought to the Board with confirmation from Tourist Development. Mr. Windes said the reason he wanted the TDD to carry the ball was because he did not want the county to pay for the audit April 21, 2015 -9- Minute Book 72, Page 263 Okaloosa County Board of County Commissioners services. He then asked Mr. Stewart 1f the Internal Audit Department can provide this service with the Tourist Development paying the costs. Mr. Stewart replied they could submit a proposal and Tourist Development could fund it. He, however, questioned the scope of services going beyond the Internal Audit Department and requiring assistance from an outside entity and did not feel it appropriate for Warren Averett to do that. Mrs. Ketchel commented that she supported Mr. Windes’ previous recommendation/motion because of the history (involving advertising agencies). She said she would like to go forward with the RFP and obtain an in-depth audit. Mrs. Ketchel added that she respects what Mr. Peacock has done. Mr. Harris stated he pretty much feels the same way. Mrs. Ketchel made motion, seconded by Mr. Harris, to approve staff’s recommendation to authorize the issuance of a RFP for advertising agency contract compliance audit services and appointment of the review committee. Mr. Harris remarked this is not a slam against the Clerk’'s Office but he believes the original intent was to issue a RFP. Mrs. Ketchel stated she too has the utmost respect for Mr. Peacock and the duties of the Clerk. Mr. Windes said he has the utmost confidence in the Clerk's Office but he based his decision on the County Attorney’s and staff’s recommendations. 5 yeas. FACILITIES MAINTENANCE - AMENDED LEASE WITH OKALOCOSA COUNTY COUNCIL ON AGING FOR SPACE IN OLD FORT WALTON BEACH HOSPITAL Mr. James Puckett, Interim Facilities Maintenance Director, presented for consideration an amended ten-year lease with the Okaloosa County Council on Aging (Elder Services) for space in the old Fort Walton Beach Hospital. He said on October 7, 2014, the Board approved space allocations for the Council on Aging and the Okaloosa Walton Homeless Continuum of Care (Opportunity, Inc.) and directed staff to prepare leases to reflect the terms and conditions for the use of the approved spaces for both lessees. Mr. Puckett stated the County Attorney prepared the amended lease and staff prepared Exhibit A. Exhibit A is a color coded attachment depicting the boundaries of the leased area and specifically addresses the lessee’s occupancy rights, common area and where the lessee has exclusive maintenance responsibilities. Mr. Puckett stated Exhibit B is entitled “0ld Fort Walton Beach Hospital Utilities Cost Split Agreement.” Staff facilitated the April 21, 2015 -10- Minute Book 72, Page 264 Okaloosa County Board of County Commissioners agreement regarding the portion of utility bills for which Opportunity, Inc. will reimburse Elder Services. Mr. Puckett stated the last item in the packet is a Letter of Consent for Elder Services to continue the use of two portable storage buildings located in the parking lot of the subject building. He pointed out these storage buildings are the property of Elder Services and have been on site for quite some time. Mr. Puckett said staff has no objection to the request from Elder Services to retain use of these two buildings. Mr. Goodwin stated the ambiguities of the previous lease have been corrected and the guess work has been taken out of the relationship of the two lessees. Mr. Goodwin then made motion, seconded by Mr. Harris, to approve staff’s recommendation for the amended lease. 5 yeas. FACILITIES MAINTENANCE -~ AMENDED LEASE WITH OPPORTUNITY, INC. FOR SPACE IN OLD FORT WALTON BEACH HOSPITAL Mr. Puckett presented for consideration an amended ten-year lease with the Okaloosa Walton Continuum of Care, Opportunity, Inc. for space in the old Fort Walton Beach Hospital. As in the previous item, Exhibit A is a color coded attachment depicting the boundaries of the lease area and specifically addresses exclusive maintenance vresponsibilities.