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2014-05-06230 CITY OF OKEECHOBEE MAY 6, 2014 REGULAR CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 SUMMARY OF COUNCIL ACTION AGENDA I. CALL TO ORDER - Mayor Pro - Tempore. May 6, 2014, City Council Regular Meeting; 6:00 p.m. II. OPENING CEREMONIES: Invocation given by Reverend Edward Weiss, Church of Our Saviour; Pledge of Allegiance led by Mayor Pro - Tempore. III. MAYOR, COUNCIL AND STAFF ATTENDANCE - City Clerk. Mayor James E. Kirk Council Member Mike O'Connor Council Member Devin Maxwell Council Member Dowling R. Watford, Jr. Council Member Clayton Williams City Administrator Brian Whitehall City Attorney John R. Cook City Clerk Lane Gamiotea Deputy Clerk Melisa Jahner Police Chief Denny Davis Fire Chief Herb Smith Public Works Director David Allen IV. PROCLAMATIONS AND PRESENTATIONS - Mayor Pro - Tempore. A. Proclaim the month of May 2014 as "National Teen Pregnancy Prevention Month." PAGE 1 OF 11 COUNCIL ACTION - DISCUSSION - VOTE In the absence of Mayor Kirk, and there being no objections, Council Member Watford will serve as Mayor Pro - Tempore to chair the May 6, 2014, City Council Regular Meeting, and he called the session to order at 6:00 p.m. The invocation was offered by the Very Reverend Edward Weiss of the Church of Our Saviour; the Pledge of Allegiance was led by Mayor Pro - Tempore Watford. City Clerk Gamiotea called the roll: Absent Present Present Present Present Present Present Present Present Present Present Present Mayor Pro -Tem Watford presented the National Teen Pregnancy Prevention Month proclamation to Ms. Rosalind Brown, of the Okeechobee Teen Pregnancy Prevention Task Force, and read it in its entirety: "WHEREAS, teen pregnancy is a critical issue facing Okeechobee County; and WHEREAS, in Okeechobee County in the years 2010 to 2012 for every 1000 females between the ages of 14 to 19, 221 gave birth to a child and 38 of those were repeat pregnancies; and WHEREAS, the Teen Pregnancy Prevention Task Force believes that the parents are the first and most influential source of sexual education for children and adolescents; and WHEREAS, the goal of the Teen Pregnancy Prevention Task Force is to decrease teen pregnancy through collaborative efforts in promoting comprehensive education, self-respect and healthy decision. NOW THEREFORE, I, (continued) AGENDA IV. PROCLAMATIONS AND PRESENTATIONS CONTINUED. A. Proclaim the month of May 2014 as "National Teen Pregnancy Prevention Month" continued. V. MINUTES - City Clerk. A. Motion to dispense with the reading and approve the Summary of Council Action for the April 15, 2014, Regular Meeting. VII. AGENDA - Mayor Pro - Tempore. A. Requests for the addition, deferral or withdrawal of items on today's agenda. VIII. UNFINISHED BUSINESS. A. Reconsider funding the Crosswalk Installation for the 441/70 Improvements Project, with FDOT concession that the increased post - bid costs not be required to be escrowed by the City, until the City's next Fiscal Year (after October 1, 2014). Note: Original escrow: $72,112.00; Bid opened cost: $110,208.54, increase escrow: $38,096.54 - City Administrator. MAY 6, 2014 - REGULAR MEETING - PAGE 2 OF 11 231 COUNCIL ACTION - DISCUSSION - VOTE R. Watford, Jr., by virtue of the authority vested in me as Mayor Pro - Tempore of the City of Okeechobee, Florida, do hereby proclaim the month of May 2014, as "National Teen Pregnancy Prevention Month" in the City of Okeechobee." Council Member Williams moved to dispense with the reading and approve the Summary of Council Action for the April 15, 2014, Regular Meeting; seconded by Council Member O'Connor. There was no discussion on this item. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. Mayor Pro -Tem Watford asked whether there were any requests for the addition, deferral or withdrawal of items on today's agenda. There were none. The matter of reconsidering the installation of patterned crosswalks within the Florida Department of Transportation (FDOT) 441/70 Improvements Project, was left unresolved at the previous meeting to allow Administrator Whitehall and Public Works Director Allen time to research answers to questions surrounding annual maintenance and required friction testing costs. Director Allen reported the product proposed by FDOT is Traffic Patterns XD, manufactured by Ennis - Flint, located in Thomasville, North Carolina, a thermoplastic pavement marking material. According to a letter dated February 14, 2014, addressed to FDOT, from Mr. Mark Lamar, Ennis -Flint Specialty Project Manger, the manufacturer is responsible for the Dynamic Friction Testing in accordance with ASTM E1911. The City's responsibility would be to schedule the testing, report the results to FDOT, and provide traffic control during the testing. Should the testing have to be completed at night, overtime could be slightly impacted. 232 MAY 6, 2014 - REGULAR MEETING - PAGE 3 OF 11 AGENDA COUNCIL ACTION - DISCUSSION - VOTE VIII. UNFINISHED BUSINESS CONTINUED. A. Reconsider funding the crosswalk installation at the 441/70 intersection project with the FDOT concession that the increased post -bid costs not be required to be escrowed by the City until the City's next Fiscal Year (after October 1, 2014) continued. Director Allen's report further detailed information on the durability, maintenance, and replacement of the product. According to the project documents, the crosswalk material is projected to last eight to 14 years. Municipalites contacted in Florida were City of Port Saint Lucie, City of Clearwater, City of Melbourne, and City of Lakeland, all were very pleased. Outside of Florida was the Town of Mt. Pleasant, South Carolina, who has used it for more than 10 years, and will only use this product. Finally, the City of Middletown, Connecticut, has used the product for four years with no repairs to date. At the end of the usable life of the product there are two alternatives for replacement. The first would be to apply an overlay of similar material, the second is to replace the walks with new material by milling out the old crosswalk, replace the asphalt, and reinstall the new. The current estimated cost of option one is $90.00 per square yard, and would extend the life span by two to four years. The estimated per square yard cost of option two is $40.00 for removal and $160.00 to install the new material. Given this information, combined with the product lasting 10 to 12 years, the annual cost of the crosswalks would be approximately $11,600.00 to $14,000.00. The report was accompanied with photographs showing color and pattern options (distributed prior to the meeting, and added to the minute file). Council Member Maxwell thanked Director Allen for his extensive research, and stated he was in favor of accepting the counter offer from FDOT. However, Council Member Williams commented the cost was still an issue with him. He offered whether decreasing the number of crosswalks from the project would be an option in order to reduce the cost. Council Member Maxwell moved to proceed with the current FDOT offer, confirm they [FDOT] will fund the additional escrow amount for the crosswalk project, and the increase be in the [City's] next budget for Fiscal Year 2014/2015; seconded by Council Member O'Connor. Mayor Pro -Tem Watford questioned the rules for allocating funds in future budgets. Attorney Cook answered there is no legal issue with a vote to approve the funds for another budget year. The question would be whether the Council at that time would approve the allocation. Council Member Maxwell noted, within the funding agreement, there is a provision which protects each party's obligation that is based on Florida Statute 339.135(6)(a). VOTE KIRK - ABSENT MAXWELL - YEA O'CONNOR - YEA WATFORD - YEA WILLIAMS - No MOTION CARRIED. 1 1 AGENDA VIII. NEW BUSINESS. A. Discuss Fiscal Year End 2013 Audit/Financial Report - Deborah A. Goode, CA, Carr, Riggs & Ingram, LLC. MAY 6, 2014 - REGULAR MEETING - PAGE 4 OF 11 233 COUNCIL ACTION - DISCUSSION - VOTE The presentation of the City's Financial Statement (Audit Report), Fiscal Year October 1, 2012, through September 30, 2013, was given by Ms. Deborah A. Goode with Carr, Riggs & Ingram, LLC. Prior to the meeting, copies of the report were distributed to the Mayor and Council. The independent audit report reflects there were no compliance issues and the City is in a secure financial position, with total assets exceeding liabilities by $18,970,682.00. The total net position decreased from 2012 by $379,434.00. This was due to two reasons, the first being a $302,262.00 decrease in total assets, primarily from selling police vehicles (capital assets) with a net book value of $305,227.00. The second is a $77,172.00 increase of total liabilities due to a $178,665.00 increase of noncurrent liabilities, mainly caused by increases in the net Other Post Employment Benefits (OPEB) obligation. Ms. Goode explained the Fund Balance Categories and amounts, total revenues increased approximately 9.4 percent to $6,109,473.00, primarily due to a $459,666.00 increase in capital grants, contributions for the rehabilitation grant and an economic development grant. Other factors included an increase in property tax revenue of $32,522.00 due to new construction, increase in the State Shared Revenue, approximately $42,044.00, and a $15,451.00 increase in investment income in the State Board Accounts. However, the Franchise Fee revenues decreased $14,741.00 based on lower consumer paid utilities. Total expenses were $6,488,907.00, which is an increase of $713,829.00 due to the expenditure of funds for the grants and higher costs in public safety, physical environment, and general services. The combined ending fund balance increased $181,540.00 from 2012 to equal $11,686,199.00, of which approximately $9,470,608.00 (or 81 percent) is unassigned and available for spending at the City's discretion. Assigned fund balances include $955,633.00 for subsequent year's expenditures. Future Capital Improvement Projects of$300,000.00; $63,514.00 for future qualified Impact Fee expenditures; $850,970.00 for Public Facilities Improvement Fund; $5768.00 for Law Enforcement Special Fund; and $4,002.00 for Grant Funds. The remaining $35,704.00 is non - spendable inventory. The Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual for General Fund reports: Final Budgeted Revenues at $5,439,907.00, compared to actual being $5,543,410.00, an increase of $103,503.00, Final Budgeted Expenditures at $6,238,772.00, compared to actual being $5,668,793.00, spending $569,976.00 less than budgeted. This was largely contributed to the overall decrease in general government expenses, fire and police public safety expenses, and transportation expenses. Reviewing the Capital Assets and Long -Term Liabilities shows the investment in capital assets of $7,670,339.00 which includes land, building, improvements, equipment and construction in progress. The net asset balance decreased by $364,717.00. Major additions of $473,743.00 included computers, Public Works Director office renovations; Police vehicles and equipment; Firefighters bunker gear; Bush -hog mower; and various infrastructure improvements. 234 AGENDA VIII. NEW BUSINESS CONTINUED. A. Discuss Fiscal Year End 2013 Audit /Financial Report - Deborah A. Goode, CA, Carr, Riggs & Ingram, LLC, continued. MAY 6, 2014 - REGULAR MEETING - PAGE 5 OF 11 COUNCIL ACTION - DISCUSSION - VOTE However, these were offset by depreciation expense of $533,233.00 and disposal of the 14 police cars previously mentioned. Ms. Goode then turned to the breakdown of the three Pension Trust Funds: Police Officers, Firefighters and General /OUA Employees, which are defined benefits plans. The Plans are audited by a separate firm who then provides the information to the City. Members of the Police Officers and Firefighters Plan contribute 5 percent of their covered annual salary, the City is required to contribute an amount equal to the difference in each year between the total aggregate member contributions for the year, plus the state contributions, and the normal cost for the year, as shown by the most recent actuarial valuation of the plan. For this Fiscal Year, the City's contributions were 17.59 percent for the Police Officers Plan, and 11.80 percent for the Firefighters Plan. The City General /OUA Employees contribute 6 percent of their covered annual salary. The City is required to contribute at an actuarially determined rate, this Fiscal Year's rate was 12.19 percent. The Pension Funds are in good shape, the City has one of the best funded ratio's of all their clients, with 85 percent being the target, the Police Officers funded ratio is at 98.5 percent and the Firefighters is at 101.7 percent. Projections for the City General /OUA fund were not provided. Mayor Pro -Tem Watford asked for clarification of the OPEB, to which Ms. Goode responded, the City administers a single employer defined benefit healthcare plan that provides medical insurance to its employees and their eligible dependents, and as per F.S. 112.0801, the City is required to provide eligible retirees the opportunity to participate in this plan at the same cost. The City has not established a trust or agency fund for the plan, and does not issue stand alone financial statements for the plan. All financial information related is accounted for in the basic financial statements. The City is funding the plan on a pay -as- you -go basis. The City's contribution for this Fiscal Year was $38,537.00. The audit report also reflects information on economic factors and next year's budget. The current Fiscal Year adopted millage rate is 7.7432, which is .03 percent less than the roll -back rate and will generate an estimated $42,648.00 less in ad valorem revenue than the previous Fiscal Year. The adopted budget revenues are approximately $8,423,558.00, a projected increase of $829,551.00 from the prior year. The total budgeted expenditures are $5,621,007.00, a projected increase of $342,169.00 more than the prior budget year. The Council thanked Ms. Goode for the report and added their appreciation to City Staff as well. No official action was necessary for this item. 1 1 1 AGENDA IX. NEW BUSINESS CONTINUED. B. Consider a Temporary Street Closing Application, submitted by First Baptist Church for D -Now Weekend Event, May 17, 2014, from 7:00 a.m. to 8:00 p.m., Southwest 4`h Street from ROC entrance to Southwest 6'h Avenue - City Administrator (Exhibit 1). C. Consider a Temporary street Closing Application, submitted by First Baptist Church for a celebration to honor Youth Ministry Graduating Seniors, May 31, 2014, from 7:00 a.m. to 11:00 p.m., Southwest 4th Street from ROC entrance to Southwest 6`h Avenue - City Administrator (Exhibit 2). D. Motion to concur with FDOT's proposal to initially paint the traffic signal mast arms in connection with the Highway 441 /State Road 70 improvement project, with the City absorbing the maintenance cost - City Administrator. MAY 6, 2014 - REGULAR MEETING - PAGE 6 OF 11 235 COUNCIL ACTION - DISCUSSION - VOTE Council Member O'Connor made a motion to temporarily close Southwest 4th Street, from the ROC [south] entrance to Southwest 6'h Avenue, from 7:00 a.m. to 8:00 p.m. on May 17, 2014, for safety and pedestrian crossing during the D -Now Weekend Event, as submitted by First Baptist Church; seconded by Council Member Williams. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. Council Member Williams made a motion to temporarily close Southwest 4'h Street, from the ROC [south] entrance to Southwest 6'h Avenue, from 7:00 a.m. to 11:00 p.m. on May 31, 2014, for safety and pedestrian crossing during the Celebration to Honor the Youth Ministry Graduating Seniors Event, as submitted by First Baptist Church; seconded by Council Member O'Connor. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. Council Member Maxwell moved to concur with the FDOT proposal to initially paint the traffic signal mast arms in connection with the Highway 441 /State Road 70 Improvement Project, with the City absorbing the maintenance cost; seconded by Council Member O'Connor. Administrator Whitehall explained, at the meeting of October 1, 2013, Resolution No. 2013 -11 was denied, which would have approved a Locally Funded Agreement addressing the City's costs to have the traffic signal mast arms painted black, that were to be replaced throughout the FDOT 441/70 Improvements Project. The Council expressed their disappointment with FDOT for not disclosing this information and fiscal responsibility during the planning sessions with City Staff. Since that time, they have changed their policy. FDOT will be responsible for the estimated $24,800.00 expense. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. 236 AGENDA IX. NEW BUSINESS CONTINUED. E. Motion to adopt proposed Resolution No. 2014 -01 approving a Traffic Signal Maintenance and Compensation Agreement with FDOT - City Administrator (Exhibit 3). MAY 6, 2014 - REGULAR MEETING - PAGE 7 OF 11 COUNCIL ACTION - DISCUSSION - VOTE Council Member O'Connor moved to adopt proposed Resolution No. 2014 -01, approving a Traffic Signal Maintenance and Compensation Agreement with FDOT (from June 1, 2014 through June 30, 2017); seconded by Council Member Maxwell. Attorney Cook read proposed Resolution No. 2014 -01 by title: "A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE." The adoption of this resolution and agreement replaces the current Traffic Signal Maintenance Agreement Contract No. AM978, dated June 1, 2004, as authorized by Resolution No. 2004 -05. Its purpose is to regulate the responsibilities of traffic signals and the equipment located at intersections on State roadways (SR 70 and 15). Public Works Director Allen compared the two agreements and reported the analysis in a memorandum dated May 1, 2014. The annual funding changed from $9,072.50 to $9,713.71 due to a 3 percent increase, and the addition of an intersection. As listed in Exhibit A of the Agreement, the traffic signal's that the City receives 50 percent reimbursement on are located at the intersections of South Parrott Avenue (SR 15) and South 21' Street, North Park Street (SR 70) and West 5th Avenue, North Park Street and East 8th Avenue, and added North Park and 3`d Avenue (Emergency Only). The City receives a 67 percent reimbursement on one located at North Park Street and East 10`h Avenue, and 100 percent reimbursement for the main intersection at Parrott Avenue and North Park Street. The maintenance detail was not specifically covered in the previous agreement, the new one clarifies the maintenance responsibilities. Highlights of the City's areas of responsibility would include preventative type maintenance such as spot painting or repainting; replacing missing and /or deficient cap covers and cover plates; cleaning and graffiti removal; wiring issues; all signal related issues; respond to traffic impact for repair or replacement of all components damaged by traffic impact. Should there be major damage or replacement needed due to an accident, the City will cover the costs, with the authority to seek reimbursement from the responsible third party. Should the third party not render reimbursement, FDOT would reimburse the City. Exhibit B of the Agreement lists the compensation formula, the projection reimbursements for periods covering FDOT Fiscal Year beginning 2011 through 2017, and reflects a unit rate for each Fiscal Year with a 3 percent increase from the previous year. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. 1 i 1 1 1 AGENDA IX. NEW BUSINESS CONTINUED. F. Discuss the Summer Meeting Schedule - City Clerk (Exhibit 4). IX. OPEN PUBLIC HEARING FOR GRIEVANCE APPEAL - Mayor Pro - Tempore. A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee - City Attorney. MAY 6, 2014 - REGULAR MEETING - PAGE 8 OF 11 237 COUNCIL ACTION - DISCUSSION - VOTE Council Member Williams moved to approve the summer meeting schedule as submitted, which will cancel the first meetings in June through August, regular meetings will be held on June 17, 2014, July 15, 2014, and August 19, 2014; seconded by Council Member O'Connor. There was no discussion on this item. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA MAYOR PRO -TEM WATFORD CALLED FOR A RECESS AT 6:43 P.M. O'CONNOR - YEA MOTION CARRIED. MAYOR PRO -TEM WATFORD RECONVENED THE MEETING AND OPENED THE PUBLIC HEARING FOR GRIEVANCE APPEAL AT 6:48 P.M. Mayor Pro -Tem Watford began by thanking the Grievance Committee and Chairperson Phil Conroy for their service and administering the request by Mr. Lawrence "Larry" Parzygnat, Jr., for a hearing regarding his employment termination by Police Chief Davis. He then offered this is a challenging issue, it will be required that everyone be civil, conduct themselves accordingly, and treat each other with respect. Attorney Cook relayed the procedures to be observed, as set out by the City of Okeechobee Personnel Policies and Procedures, Chapter Seven, Employee Relations, Grievance Procedures, the Grievance Committee held a meeting on March 13, 2014, to review an appeal as requested by Mr. Parzygnat. The Committee recommended to uphold the position of Chief Davis regarding the termination. The evidentiary portion for this grievance appeal took place at the Grievance Committee Meeting, this is not a re -trial or to present testimony. The Council's decision shall be based on the documents provided in the binders that were distributed prior to the meeting. Mr. Parzygnat has a right to appeal to this Council and present additional mitigating circumstances or reasons as to why this decision should not be upheld. His Counsel, Attorney Ralph "Rick" E. King III, of the Police Benevolent Association, Inc., also has a right and will be granted the opportunity to present his legal argument. The Council may ask questions of all parties during this proceeding. The action of the Council in this appeal is to confirm, modify, amend, or reverse the recommendation of the Department Head, and this decision shall be final. Mr. Parzygnat addressed the Council by offering an emotional plea, admitting he had no ill intentions when he sent photographs from an accident scene to the media. He made a mistake, and would like another chance to make atonement for it. He admitted to lying to his superiors when questioned about the pictures, but immediately recanted his statement and then told the truth. Finalizing that he loved his job and his reputation has always been good. 238 AGENDA IX. PUBLIC HEARING FOR GRIEVANCE APPEAL CONTINUED. A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee continued. MAY 6, 2014 - REGULAR MEETING - PAGE 9 OF 11 COUNCIL ACTION - DISCUSSION - VOTE Attorney King then addressed the Council by asking them to ponder four points before taking any action. One, according to a disciplinary action, effective October 28, 2013, Mr. Parzygnat was placed on disciplinary probation from October 28, 2013 until October 28, 2014 based on internal investigation. Attorney King noted the inconsistency of the dates of disciplinary action from when the Chief of Police signed the document, October 28, 2013, and the date of refusal of the employee December 13, 2013, as well as the other required signatures, dated December 4th, 5th 6th and the 13th. The disciplinary action for this probation was predicated on a complaint at McDonald's, in which a report was filed on September 24, 2013. The Final Adjudication Report's findings are: SUSTAINED, disobedience of lawful orders of all superior officers, (the investigation produced clear and convincing evidence to either prove or disprove the allegations), and NOT SUSTAINED, harassment and/or slander (the investigation failed to produce clear and convincing evidence to either prove or disprove the allegations). Attorney King also noted that according to a letter dated October 29, 2013, Mr. Parzygnat was placed on administrative leave for five days, which he has not served, nor did he sign any documentation to justify. Point Two, Mr. Parzygnat's credibility. When questioned by his superiors regarding the photographs, he answered abruptly and untruthfully, but then recanted immediately and then answered truthfully. Attorney King gave an example of an employee calling in sick. Are they really sick? In some instances they are not; and are they fired? Mr. Parzygnat was not under oath, nor sworn in, and was not testifying. He was an employee caught in the line of fire, caught off guard by his superiors, and he redeemed himself and spoke the truth immediately. Point Three, Attorney King cited the Loudermill Right Case, and claimed violation of Mr. Parzygnat's property rights. According to a letter dated December 4, 2013, from Police Chief Davis, the last line reads: "You were recently placed on probationary status and your employment here has been terminated effectively immediately." The City Policy according to the Evaluation Period, Chapter Two, Employment, of the Personnel Policies and Procedures, indicates the Department Head has authority to dismiss an employee without notice and without cause being given. The Loudermill Right Case protects the non - probationary employee who can only be terminated for cause, a standard also applying to other levels of discipline, but not to reprimands. Attorney King noted whether Chief Davis's termination was using `just cause' action. He called attention to a memorandum from Attorney Cook (included in the materials) which states: "in cases of employee discipline or terminations, the Department Head must show the action taken was based upon just cause." As cited from Loudermill Right Case, Mr. Parzygnat must be given proper notice and an opportunity for a hearing, before being deprived of any significant property right. AGENDA IX. PUBLIC HEARING FOR GRIEVANCE APPEAL CONTINUED. A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee continued. MAY 6, 2014 - REGULAR MEETING - PAGE 10 OF 11 239 COUNCIL ACTION - DISCUSSION - VOTE Attorney King then called attention to the City's Understanding of Exit Interview Form, signed by the employee at the time of hire, dated February 6, 2007. He read the first paragraph: "I understand, as an employee of the City of Okeechobee, I have the right to an Exit Interview with the City Personnel Administrator before I am discharged or resign." The form further states, "It is my responsibility to request this interview through my Department Head or I may contact the City Personnel Administrator." Attorney King offered that Chief Davis should have directed Mr. Parzygnat and explained that the proposed discipline was termination, and he would be afforded a pre- determination meeting, to give his side of the story. The City violated Mr. Parzygnat's rights since he did not get an opportunity to be heard and defend himself before he was terminated. Additionally, Attorney King listed the protection guaranteed by Florida Statute 112.532, stating he has the right to know the nature of the investigation, complainants, witnesses, and all evidence against him. He had the right to have the interview audio or video recorded, but most of all, he had the right to Counsel. The Exit Interview Form signed by Mr. Parzygnat on December 13, 2013, has a notation by the City Clerk that the employee requested to postpone scheduling an exit interview after the hearing. His termination date was December 4, 2013. This violated his rights. Attorney King questioned whether these policies are equally served to all employees and was the discipline reasonable and appropriate. The fourth and final point, considering the seven factors defining "just cause" as follows: a) Was the employee aware of the City Policy; b) Are the policies of the City reasonable; c) Did the Department Head investigate the situation to determine that the employee violated a policy; d) Was the investigation fair and objective; e) Is there substantial evidence that the employee violated the policy; f) Are the policies of the City consistently and evenly applied to employees; g) Is the discipline reasonable and proportionate under the circumstances, (does the punishment fit the crime). Attorney King refuted the reasoning for the termination, and asked whether there was just cause. Was Mr. Parzygnat aware of the City policy of the zero tolerance? He argued there was no due process so how could it be reasonable, fair, or objective. There was evidence, since Mr. Parzygnat admitted his mistake, but how do we know the policy was consistent and evenly applied to all employees. He then asked the Council to consider something less than termination for Mr. Parzygnat. At the conclusion of Attorney King's presentation, Attorney Cook offered that those were valid points. The principles talked about were discussed at the Grievance Committee Hearing. Chief Davis was well aware of the requirements of the Police Officer's Bill of Rights. Attorney Cook and Attorney King have a difference of opinion as to its applicability in this instance. The Grievance Committee's determination was that the Police Chief acted in accordance to his rights under the Florida Statute Police Officer's Bill of Rights, and the City Personnel Manual. 240 MAY 6, 2014 - REGULAR MEETING - PAGE 11 OF 11 AGENDA COUNCIL ACTION - DISCUSSION - VOTE IX. PUBLIC HEARING FOR GRIEVANCE APPEAL CONTINUED. A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee continued. CLOSE PUBLIC HEARING FOR GRIEVANCE APPEAL - Mayor Pro - Tempore. X. ADJOURN MEETING - Mayor Pro - Tempore. Please take notice and be advised that when a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting, he/she may need to insure that a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk media are for the sole purpose of backup for official records of the Clerk. 1 , Mayor Pro -Tem Watford opened the floor for Council questions and discussion. Council Member Williams stated his disappointment of Mr. Parzygnat's maturity level, and offered as advice, truth is always the best answer. Mayor Pro - Tem Watford stated he appreciated Mr. Parzygnat's service to the City, most especially his work to collect historic photographs and the tribute to the former Police Chief's. The City operates as a family, and as with families, discipline is sometimes necessary even though unpleasant. Council Member Maxwell made a motion to uphold the termination of Larry Parzygnat by Chief Davis, and the decision of the Grievance Committee, based upon the evidence contained within the provided ()note binder, including the prior evaluations from the personnel files, as well as documents pertaining to disciplinary action, and including the transcript of the Grievance Committee Hearing, which indicated the conduct that was the basis of the action was not disputed; seconded by Council Member Williams. Mayor Pro -Tem Watford then added, in a previous employment termination in the Police Department, the employee was offered resignation, and asked whether that could be taken under consideration in this situation. Attorney Cook responded that it was an available alternative. Council Member O'Connor interjected, "I call the question." Mayor Pro - Tem Watford announced the question had been called, in keeping with consistency of practice, discussion ended promptly and called for a vote. VOTE KIRK - ABSENT MAXWELL - YEA O'CONNOR - YEA WATFORD - YEA WILLIAMS - YEA MOTION CARRIED. MAYOR PRO -TEM WATFORD CLOSED THE PUBLIC HEARING FOR GRIEVANCE APPEAL AT 7:27 P.M. There being no further discussion nor items on the agenda, Mayor Pro - Tempore Watford adjourned the meeting at 7:27 p.m. The next regular scheduled meeting is May 20, 2014. °Council was reminded that the materials distributed in the binders, which included all pertinent information in relation to this appeal and an audio CD of the Employee Grievance Hearing, was to be returned to the City Clerk at the conclusion of the meeting. ATT ST: Bowling R. Watford, Jr., yor Pro - Tempore Cif 1 Lane Gamiotea, C C; City Clerk w+ar INDEPENDENT NEWSPAPERS OKEECHOBEE NEWS 107 S.W. 17th Street, Suite D, Okeechobee, FL 34974 J STATE OF FLORIDA COUNTY OF OKEECHOBEE Before the undersigned authority personally appeared Tom Byrd, who on oath says he is Publisher of the Okeechobee News, a three times a week Newspaper published at Okeechobee, in Okeechobee County, Florida, that the attached copy of advertisement being a.. in the matter of c in the •.9th Judicial District of the Circuit Court of Okeechobee County, Florida, was published in said newspaper in the issues of 51.1/4 Affiant further says that the said Okeechobee News is a newspaper published at Okeechobee, in said Okeechobee County, Florida, and that said newspaper has heretofore been published continuously in said Okeechobee County, Florida each week and has been entered as second class mail matter at the post office in Okeechobee, in said Okeechobee County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement, and affiant fur- ther says that she has neither paid nor promised any person, firm or corporation any discount, rebate, corn - mission or refund for the purpose of securing this advertisement for publication in the said newspaper. Toni Byrd Sworn to and subscribed before me this day of __ _ 1! \-� G__ -___ AD Notary Public, State of Florida at Large ' y % ANGIE BRIDGES ** *- • 2 . += MY COMMISSION # EE 177653 •, . ; EXPIRES: April 20, 2016 0, 4•' Bonded Thru Notary Pubhc Underwriters (863) 763 -3134 PUBLIC NOTICE: CITY COUNCIL MEETING & PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Coundl for the CRy of Okeecho- bee, will meet in Regular Session on Tuesday May 6 2018, 6:00 p.m., or as soon thereafter as possible, at City Hall, 55 Sri 3rd Ave, Rm 200, Okeechobee, Florida. The public is Invited and encouraged to attend. Con- tact City Administration at 863- 763 -3372; or website www.citvofokeechobee.com, to obtain a copy of the agenda. NOTICE IS ALSO GIVEN that during this proceeding, a Public Hearing will be conducted to consider a Grievance Appeal request by L. Parzygnat. ANY PERSON DECIDING TO APPEAL any decision made by the Gty Council with respect to any matter considered at this meeting will need to ensure a verbatim record of the proceeding Is made and the record Includes the testimony and evidence upon which the appeal will be based. In accor- dance with the Americans with Disabilities Act (ADA), any person with a disability as defined by the ADA, that needs special accommodation to par- ticipate in this proceeding, contact the City Cerk's Office no later than two business days prior to proceeding, 863 - 763 -3372. BE ADVISED that should you intend to show any document, picture, video or items to the Council in support or opposition to any item on the agenda; a copy of the document, picture, video, or item MUST be provided to the City Clerk for the City's records. By: lames E. Kirk, Mayor lane Gamiotea, CMC, qty Clerk 465201 ON 5/2/2014 Cy1oi )0r4 in cntcte ra CITY OF OKEECHOBEE MAY 6, 2014 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 REGULAR CITY COUNCIL MEETING OFFICIAL AGENDA I. CALL TO ORDER - MAYOR PRO TEMPORE: May 6, 2014, City Council Regular Meeting, 6:00 p.m. II. OPENING CEREMONIES: Invocation given by Rev. Edward Weiss, Church of Our Saviour; Pledge of Allegiance led by Mayor. III. MAYOR, COUNCIL MEMBERS, AND STAFF ATTENDANCE - City Clerk Mayor James E. Kirk Council Member Devin Maxwell Council Member Mike O'Connor Council Member Dowling R. Watford, Jr. Council Member Clayton Williams City Administrator Brian Whitehall City Attorney John R. Cook City Clerk Lane Gamiotea Deputy Clerk Melisa Jahner Police Chief Denny Davis Fire Chief Herb Smith Public Works Director David Allen IV. PROCLAMATIONS AND PRESENTATIONS - Mayor Pro Tempore A. Proclaim the month of May 2014 as "National Teen Pregnancy Prevention Month." May 6, 2014 PAGE 2 of 3 V. MINUTES - City Clerk A. Motion to dispense with the reading and approve the Summary of Council Action for the April 15, 2014 Regular Meeting. VI. AGENDA - Mayor Pro Tempore A. Requests for the addition, deferral or withdrawal of items on today's agenda. VII. UNFINISHED BUSINESS. A. Reconsider funding the crosswalk installation at the 441/70 intersection project with the FDOT concession that the increased post -bid costs not be required to be escrowed by the City until the City's next fiscal year (after 10/1/14). Note: Original escrow - $72,112; bid opened cost - $110,208.54, increase escrow - $38,096.54 - City Administrator. VIII. NEW BUSINESS. A. Discuss FYE 2013 Audit/Financial Report - Deborah A. Goode, CPA, Carr, Riggs & Ingram, LLC. B. Consider a Temporary Street Closing Application submitted by First Baptist Church for D -Now Weekend Event, May 17, 2014 from 7:00 a.m. to 8:00 p.m., SW 4th Street from ROC entrance to SW 6th Avenue - City Administrator (Exhibit 1). C. Consider a Temporary street Closing Application submitted by First Baptist Church for a celebration to honor Youth Ministry Graduating Seniors, May 31, 2014 from 7:00 a.m. to 11:00 p.m., SW 4th Street from ROC entrance to SW 6th Avenue - City Administrator (Exhibit 2). D. Motion to concur with FDOT's proposal to initially paint the traffic signal mast arms in connection with the 441/70 improvement project, with the City absorbing the maintenance cost- City Administrator. E. Motion to adopt proposed Resolution No. 2014 -01 approving a Traffic Signal Maintenance and Compensation Agreement with FDOT - City Administrator (Exhibit 3). F. Discuss the Summer Meeting Schedule - City Clerk (Exhibit 4). May 6, 2014 PAGE 3 OF 3 IX. OPEN PUBLIC HEARING FOR GRIEVANCE APPEAL - Mayor Pro Tempore A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee - City Attorney. CLOSE PUBLIC HEARING. X. ADJOURN MEETING. PLEASE TAKE NOTICE AND BE ADVISED that if any person desires to appeal any decision made by the City Council with respect to any matter considered at this proceeding, such interested person will need a record of the proceeding, and for such purpose may need to ensure a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk tapes are for the sole purpose of backup for official records of the Clerk. In accordance with the Americans with Disabilities Act (ADA), any person with a disability as defined by the ADA, that needs special accommodation to participate in this proceeding, contact the City Clerk's Office no later than two business days prior to proceeding, 863 - 763 -3372. BE ADVISED that should you intend to show any document, picture, video or items to the Council in support or opposition to any item on the agenda; a copy of the document, picture, video, or item must be provided to the City Clerk for the City's records. 5/6/14 CC Mtg Page 1 of 5 CITY OF OKEECHOBEE MAY 6, 2014 REGULAR CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 I. CALL TO ORDER - MAYOR PRO TEMPORE: In the absence of Mayor Kirk (out of town visiting family), and there being no objections, Council Member Watford will be serving as Mayor Pro - Tempore, and called the May 6, 2014, City Council Regular Meeting to order at 6:00 p.m. U 11. OPENING CEREMONIES: The invocation was offered by the Very Reverend, Father Edward Weiss of the Church of Our Savior; the Pledge of Allegiance led by Mayor Pro -Tem Watford. 111. MAYOR, COUNCIL MEMBERS, AND STAFF ATTENDANCE - City Clerk. City Clerk Gamiotea called the roll: Mayor James E. Kirk Absent Council Member Devin Maxwell Present Council Member Mike O'Connor Present Council Member Dowling R. Watford, Jr. Present and serving as Mayor Pro -Tem Council Member Clayton Williams Present City Administrator Brian Whitehall Present City Attorney John R. Cook Present City Clerk Lane Gamiotea Present Deputy Clerk Melisa Jahner Present Police Chief Denny Davis Present Fire Chief Herb Smith Present Public Works Director David Allen Present IV. PROCLAMATIONS AND PRESENTATIONS - Mayor Pro Tempore. A. Proclaim the month of May 2014 as "National Teen Pregnancy Prevention Month." Mayor Pro -Tem Watford presented to Ms. Rosiland Brown of [ get name of organization: ? ?], the National Teen Pregnancy Prevention Month, which was read in its entirety as follows: "WHEREAS, teen pregnancy is a critical issue facing Okeechobee County; and WHEREAS, in the State of Florida, in the years 2010 to 2012 for every 1000 females between the ages of 14 to 19, 221 gave birth to a child and 38 of those were repeat pregnancies; and WHEREAS, the Teen Pregnancy Prevention Task Force believes that the parents are the first and most influential source of sexual education for children and adolescents; and WHEREAS, the goal of the Teen Pregnancy Prevention Task Force is to decrease teen pregnancy through collaborative efforts in promoting comprehensive education, self - respect and healthy decision. NOW THEREFORE, 1, Dowling R. Watford, Jr., by virtue of the authority vested in me as Mayor Pro - Tempore of the City of Okeechobee, Florida, do hereby proclaim the month of May 2014, as "National Teen Pregnancy Prevention Month" in the City of Okeechobee." Ms. Brown addressed the council thanking them, for acknowledging the issue, and hope to bring attention to this issue. V. MINUTES - City Clerk. A. Motion to dispense with the reading and approve the Summary of Council Action for the April 15, 2014 Regular Meeting. Council Member Williams moved; seconded by Council Member O'Connor. discussion: none VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. VI. AGENDA - Mayor Pro Tempore. A. Mayor Pro -Tem Watford asked whether there were any requests for the addition, deferral or withdrawal of items on today's agenda. There were none. VII. UNFINISHED BUSINESS. A. Reconsider funding the crosswalk installation at the 441/70 intersection project with the FDOT concession that the increased post -bid costs not be required to be escrowed by the City until the City's next Fiscal Year (after October 1, 2014). Note: Original escrow: $72,112.00; Bid opened cost: $110,208.54, increase escrow: $38,096.54 - City Administrator. DM -will begin the discussion, after sting of DOT, given a different view on it, leave as it, and fund the additional money in next fiscal year. [? ?refered to D. Allen's 3 -page memo, a 1 -page letter from Mark Lamar of Traffic Patterns XD to Amy Stchell of FDOT with 20 -pages of photos featuring the thermoplastic types, colors and installation, used in patterned crosswalks. Clerks Office wasn't provided a copy, will need to obtain a copy after the meeting] Pg 2 of memo approx $11,600 to $14,000 noted by DW. 5/6/14 CC Mtg Page 2 of 5 DW - longest city have installed, mt pleasant SC, they haven't had to replace theirs. David, ones listed in the table you expect them to give good reviews, maintenance has been minimal. DW - to BW what's the testing, do we pay? BW- We don't pay for the testing. Found in records between the testing company and FDOT there would not be an fee on the testing. Budget funding for current year, not yet. CW - know it looks good but is it worth the $110,200.00. In Gainesville, had just one, not all four and it caught my eye, only on one side not all four, not know if that's something we need to rethink. Stick with my that its too much. Council Member Maxwell moved to proceed with the current FDOT offer, and confirm, they will escrow the additional, project and escrow increase in next budget year; seconded by Council Member O'Connor. [may need to listen to audio to verify exact wording of his motion] DW - where do we stand on budgeting money on future funds, what's the rule on that? JC - vote to move to another budget year, council at that time can make that decision, it would be decided by the seating council. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - No O'CONNOR - YEA MOTION CARRIED. VIII. NEW BUSINESS. A. Discuss the Fiscal Year End 2013 Audit/Financial Report - Deborah A. Goode, CPA, Carr, Riggs & Ingram, LLC. Goode - it is a clean report, use to call them unqualified, changed to clean unmodified report by new langauge in the standards. Pg 20 General Fund includes capital improvements , Community Deve pg 47 budget to actual comparison pg 48 pension plan, police is 98.54% funded ratio, firefighters is 101.68% funded ratio. Pg 51 is the management letter, didn't find anything with internal controls, pg 53 -54 tested compliance with that CDBG grant, cost, reporting done right, happy to report no internal controls or findings. Pg 57 59 independent audirots management letter, nothing to report to you all, everything agrees like it should. DW - thank to Goode, India and city staff for the good report. CW - Pg 33, plan B only have $59,135., got money back from them, last year had $100,000. DW - pg 11, other post employment benefit pg 14 is the total $628,643, vacation is the other amount. Pg 21, $17,592 net effect of overfunded pension contrubution that are reproted as (are on page 17 -18) full rev, exp, depreciation, reconcile the fulle and modified bases. Don't record that in the modified expenses. Pg 17 pg 28 2a7 fund? DM -pg19 VIII. NEW BUSINESS CONTINUED. B. Consider a Temporary Street Closing Application submitted by First Baptist Church for the D -Now Weekend Event, May 17, 2014, from 7:00 a.m. to 8:00 p.m., Southwest 4th Street, from the Recreational Outreach Center entrance to Southwest 6th Avenue - City Administrator (Exhibit 1). Council Member O'Connor moved; seconded by Council Member Williams. discussion: CW - says event is from May 16 -18, and motion only for 1 day? CCG - correct the event will be for 3 days but they only need the street to be temporarily closed on Saturday only. DW - and its okay to close only 2/3 of it? CCG - yes because they still use the ingress /egress from the ROC parking lot out onto 5th Avenue. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. C. Consider a Temporary street Closing Application submitted by First Baptist Church for a celebration to honor Youth Ministry Graduating Seniors, May 31, 2014, from 7:00 a.m. to 11:00 p.m., Southwest 4th Street from Recreational Outreach Center entrance to Southwest 6th Avenue - City Administrator (Exhibit 2). Council Member Williams moved; seconded by Council Member O'Connor. discussion: none. 5/6/14 CC Mtg Page 3 of 5 VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. D. Motion to concur with Florida Department of Transportation proposal to initially paint the traffic signal mast arms in connection with the Highway 441 /State Road 70 Improvement Project, with the City absorbing the maintenance cost - City Administrator. Council Member Maxwell moved to concur with FDOTproposal to paint the traffic signal mast arms (black to match lamps on park street); seconded by Council Member O'Connor. discussion: BW's explanation, October 2013 council denied the adoption of Res # , where the city would have bore the burden of painting the mast arms and accepted maintenance. Just want to clarify the Council accepting that the FDOT will bear the burden of painting them now, as explained at the April 15, 2014 meeting. The next item will accept the maintenance. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. E. Motion to adopt proposed Resolution No. 2014 -01 approving a Traffic Signal Maintenance and Compensation Agreement with Florida Department of Transportation - City Administrator (Exhibit 3). Council Member O'Connor moved; seconded by Council Member Maxwell. Attorney Cook read proposed Resolution No, 2014 -01 by title: "A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE." BW - on last page of agreement, see the contract is through DOT FY 2016 -2017 and the lists and amounts [insert this info in the minutes]. David, compared older agreement with newer agreement, responsibilities maintenance on us, but same types of maintenance we'd be doing in that intersection anyway, larger long time items are covered by FDOT, ours is more house keeping items. DW - sounds like good news. CW - crash involving equipment, wed be responsible for the replacement of it, authorized to send damage to a 3rd party, uninsured motorist can apply to FDOT to recover those costs. $700 increase in reimbursement. VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. F. Discuss the Summer Meeting Schedule - City Clerk (Exhibit 4). Council Member Williams moved to approve the summer meeting schedule that will cancel the first meetings from June through August, the City Council will conduct regular meetings on June 17, 2014, July 15, 2014, and August 19, 2014; seconded by Council Member O'Connor. discussion: none VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA MOTION CARRIED. Mayor Pro -Tem Watford called for a Recess at 6:43 p.m., and Reconvened the meeting at 6:48 p.m. IX. OPEN PUBLIC HEARING FOR GRIEVANCE APPEAL - Mayor Pro Tempore. Mayor Pro -Tem Watford opened the public hearing for grievance appeal at 6:48 p.m. A. Consider an appeal requested by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee - City Attorney. DW - thank the GC and chairman Conroy, all know the difficult decision they had. Return items to clerk afterwards. Is challenging issue. Everyone be civil, don't raise your voice, treat each other with respect. Cook [may need to listen to audio to get exactly what he said here] - procedure in personnel manual, haven't' had to use very often, the evidence portion took place at the GC hearing, you received all the relevant documents and copy of the meeting on CD. Tonight is not designed for re -trial or testimony. Make a decision based upon the documents in the booklets 2 5/6/14 CC Mtg Page 4 of 5 provided. It is LP's right to appeal. Council can modify or reverse decision of GC. If the officer wants to present any additional mitigating circumstances, he needs to be offered that opportunity and legal argument is his right. DW - questions on procedures? DM - findings of motion, base motion on evidence on packet of information? JC response. DW - officer LP, Atty King, will the city be presenting any testimony or statements? Chief Davis - no don't have any additional comments or information to make. DW clarified, to JC, council can ask any questions of anyone, correct? Yes. Lawrence Parzygnat, Jr. - I know I made a mistake taking the pictures and uploading them to the news web site. My repetition at the dept has been good. I had no ill intentions when I gave the pictures to the reporter. When Sgt. Bernst asked me for the pictures the next day, I gave him what he asked for. When I was brought into the office, yes I panicked and said I didnt' remember, less than 45 minutes I recanted and admitted it. I love working in the city of okeechobee, I enjoyed doing all the history of the department, providing the calendars each year to everyone, I believe the community still loves me, people have been gracious, just want my job back. Don't park my car under a tree and reading a book. So enthusitic about the job, hope you'll give me the consideration, I'll never be dear in the headlights again. Attorney Rick King, PBA, in unique position with a client who admitted what he did. Have 4 points for you to think about. hief made a point to noting LP was on probation, and could be suspended for any reason. He didn't' sign for the paperwork until after he was terminated, (,) =case for probation was around a McDonalds incident. - chiefs real argument is LP credibility. He didn't make that statement under oath, it was not a sworn statement, he was caught off guard when called in with the 3 highest ranking people in the - department. Employees lie all the time, 'I'm sick today' can he testify in court? Yes, because he didn't lie under oath, he's still receiving ✓� case: letterman ?? Termination doc section, 12/4/13 from chief to LP, terminated immediately. Go to first page memo from cook to grievance committee # 3, "just cause" you have now given him property for the job. xit interview form statement. V Chief should have said Larry_we'Le looking at termination, we're going to hold a hearing. Dates of signatures. :BAs a police officer under F.S. 112, they are protected. 7 items to find 'ust cause. n. Zero tolerance policy, did he "` °ow of it? Reasonable knowledge of the policy and fired for it? Investigation fair and objective. Substantial evidence - there's no due process, but he admitted it so yes evidence he did it. Are the policies evenly applied to all employees Is the discipline reasonable and proportionate under the circumstances (does the punishment fit the crime). Where is this guys heart and head. Some officers made mistakes from the head, it's the mistakes of the heart that are hard to fix. The head guys are the ones you can fix, this is the guy who takes the pictures, does the history research, he got his rights violated. DW - councils going to discuss it. Cook any comments before we start our discussion? JC - King raised valid points, he knows the law very well. We discussed the officers bill of rights and we have a difference of opinion, GC was aware of that, the arguments made by king chief acted within his rights of the police officers bill of rights and the personnel manual. DW - before call for a vote, have a few comments, I do appreciate your service, as a history buff, I appreciate that and all the hard work you've done and I appreciate it very much, and want you to know that. Difficult decision to make , really tough decisions. Listened to the meeting, you have a very good attorney, he's made some valid points. First of all big issue is the probation, that is an issue, however we have evidence he knew he was on probation, and I think in the hearing he admitted that. The McDonald's issue is only a part of the whole picture. Cant speak from the state attorney office, king gave a good example of how that could or could not happen. As far as the police officers bill of rights, the word `Investigation' don't think it came to that, in my mind doesn't come into play here, an official investigation. Said a GH, mayor said many times, we are a family here, unfortunately you have to discipline your family or children. Hardest thing for a parent. Management style is different for everyone. Decision we have before us and to deal with. Last thing I keep dealing with, when you look at the total picture, accumulative, if this had been the first issue the dept had, maybe the punishment doesnt fit the crime, cumulitive decsion processed and all areas evaluations enter into it, difficult decision for chief, GC and council to make. Form of a motion on the options. Council Member Williams, Mr king like to ask you a person shouldn't be truthful unless they are under oath; king - no sir they should be truthful, in this case he panicked, and came back to fix the lie. CW - LP made in his opening statement, 48 years old, not a 22 year old and not first job, kind of disappointed me that his level of maturity, truth is always the best answer one can give, level of maturity just reinforces that. 5/6/14 CC Mtg Page 5 of 5 Council Member Maxwell moved to uphold the termination based on the evidence contained din the binder, evaluations, disciplinary action, transcript of the GC, basis of the action was not disputed; seconded by Council Member Williams. DW - another unpleasant situation with an employee, gave him the opportunity to resign; is that possible in this case? Cook, yes that is possible. DW - something we want to consider, would the officer consider it? MO - call the question. DW - ok no furtherr discussion, the question has been called, VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA Mayor Pro -Tem Watford CLOSED the PUBLIC HEARING at 7:28 p.m. O'CONNOR - YEA MOTION CARRIED. X. ADJOURN MEETING - Mayor. Mayor Pro -Tem Watford adjourned the meeting at 7:28 p.m. 5/6/14 CC Mtg Page 1 of 4 CITY OF OKEECHOBEE MAY 6, 2014 REGULAR CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 I. CALL TO ORDER - MAYOR PRO TEMPORE: In the absence of Mayor Kirk, and there being no objections, Council Member Watford will be serving as Mayor Pro - Tempore, and called the May 6, 2014, City Council Regular Meeting to order at 6:00 p.m. II. OPENING CEREMONIES: The invocation was offered by the Very Reverend, Father Edward Weiss of the Church of Our Savior; the Pledge of Allegiance led by Mayor Pro -Tem Watford. III. MAYOR, COUNCIL MEMBERS, AND STAFF ATTENDANCE - City Clerk. City Clerk Gamiotea called the roll: Mayor James E. Kirk Absent Council Member Devin Maxwell Present Council Member Mike O'Connor Present Council Member Dowling R. Watford, Jr. Present ,/742 Council Member Clayton Williams Present,/ City Administrator Brian Whitehall Present City Attorney John R. Cook Present City Clerk Lane Gamiotea Present Deputy Clerk Melisa Jahner Present Police Chief Denny Davis Present Fire Chief Herb Smith Present ✓ Public Works Director David Allen Present IV. PROCLAMATIONS AND PRESENTATIONS - Mayor Pro Tempore. A. (Proclaim the month of May 2014 as "National Teen Pregnancy Prevention Month." `c\ t- slat.;( _ 2 �'7 0� C!/c4 � L'-Zt1 ci t jA4 . —' %(� ,, (�: c71 /.?('4.7`''"i.. "WHEREAS, teen pregnancy is a critical issue facing Okeechobee County; and g WHEREAS, in Okeechobee County in the years 2010 to 2012 for every 1000 females between the ages of 14 to 19, 221 gave birth to a child and 38 of those were repeat pregnancies; and WHEREAS, the Teen Pregnancy Prevention Task Force believes that the parents are the first and most influential source of sexual education for children and adolescents; and WHEREAS, the goal of the Teen Pregnancy Prevention Task Force is to decrease teen pregnancy through collaborative efforts in promoting comprehensive education, self - respect and healthy decision. NOW THEREFORE, 1, Dowling R. Watford, Jr., by virtue of the authority vested in me as Mayor Pro - Tempore of the City of Okeechobee, Florida, do hereby proclaim the month of May 2014, as "National Teen Pregnancy Prevention Month" in the City of Okeechobee." L16 -1'79,91 V. MINUTES - City Clerk. A. Motion to dispense with the reading and prove the Summary of Council Action for the Apr' 15, 2014 Regular Meeting. Council Member C moved; seconded by Council Member Ji/fi discussion: VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA TION CARRIED.` VI. AGENDA - Mayor Pro Tempore. A. Mayor Pro -Tem Watford asked whether there were any requests for the addition, deferral or withdrawal of items on today's agenda. VII. UNFINISHED BUSINESS. A. Reconsider funding the crosswalk installation at the 441/70 intersection project with the FDOT concession that the increased post -bid costs not be required to be escrowed by the City until the City's next Fiscal Year (after October 1, 2014). Note: Original escrow: $72,112.00; escrow: $38,096.54 - City Administrator. Council Member Member �h t.) ('�' X n z �„ c;vrx,c''u�x: opened cost: $110,208.54, increase moved; seconded by Council 1-447, . . { h discussion: E KIRK - ABSENT WATFORD - YEA O'CONNOR -YEA CI CARRIED 5/6/14 CC Mtg Page 2 of 4 VIII. NEW BUSINESS. A. Discuss the Fiscal Year End 2013 Audit/Financial Report - Deborah A. Goode, CPA, Carr, Riggs & Ingram, LLC, ije c/ (2(.44- t(fjcpt.--Lie-- 1124 /1_,L4-? (!LtLt /7 mp6-(4) Itud ilk/0-x_ 7), ce‘ A 411-e-e eit li(Le*.) 4-1-746.4 clot 611 - ,44LA, '((ly y-tzl d (.4 xit70 .6.-Hcitte-e7 tL 7rwu; 11— ) 1).2()-/-“/ )uiri- it-LP (J074/ 46r- 6Y1 CAL La Pt 0-1-6-61 -710 crlz (t&& /6' / /a_tr-yve jt.tt/ke flu 1L-11\ 4.( rkad /Le e'LL, , -C eff_i.,,),,,„9 -1k—c Ata ro , 5/6/14 CC Mtg Page 3 of 4 VIII. NEW BUSINESS CONTINUED. B. Consider a Temporary Street Closing Application submitted by First Baptist Church for the D -Now Weekend Event, May 17, 2014, from 7:00 a.m. to 8:00 p.m., Southwest 4m Street, from the Recreational Outreach Center entrance to Southwest 6'h Avenue . City Administrator (Exhibit 1). Council Member ` itt moved; seconded by Council Member C"-(� )1-ti discussion: VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA OTION CARRIED:., (7 C. Consider a Temporary street Closing Application submitted by First Baptist Church for a celebration to honor Youth Ministry Graduating Seniors, May 31, 2014, from 7:00 a.m. to 11:00 p.m., Southwest 4th Street from Recreational 0 treach Center entrance to Southwest 6th Avenue - City Administrator (Exhibit 2). Council Member (!LL) moved; seconded by Council Member »- discussion: VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA ___O'CONNOR-4 WILLIAMS - YEA C MOTION CARRIED. D. Motion to concur with Florida Department of Transportation proposal to initially paint the traffic signal mast arms in connection with the Highway 441 /State Road 70 Imp ,vement Project, with the City absorbing the maintenance cost - City Administrator. Council Member kVin moved; seconded by Council Member ND discussion: J; d441 - `(- l" �f� 6 G ek-- KIRK - ABSENT WATFORD - YEA , 1)ta notf-t,11:4 la -? l'U VOTE MAXWELL - YEA WILLIAMS - YEA l)( O'CONNOR - YEA MOTION CARRIE . E. Motion to adopt proposed Resolution No. 2014 -01 approving a Traffic Signal Maintenance and Compensation A re9ment with Florida Department of Transportatjon - City Administrator (Exhibit 3). Council Member j moved; secondel by Council Member L' J J . r L'1 ^(L discussion: (c) J 2. -1CO- 13 0 (, FpL F- VOTE MAXWELL - YEA WILLIAMS - YEA KIRK - ABSENT WATFORD - YEA C 60.(7..d (3 t.r_r ,C 70 a (IA �, f J- 0'ONNOR- YEA MOTION CARRIED. F. Discuss the Summer Meeting Schedule - City Clerk (Exhibit 4). Council Member moved; seconded by Council Member . discussion: iltma VOTE KIRK - ABSENT WATFORD - YEA MAXWELL - YEA WILLIAMS - YEA O'CONNOR - YEA 07ION CARRIED. IX. OPEN PUBLIC HEARING FOR G ublic hearin• for •rievance as seal A. ),0 VA 5/6/14 CC Mtg Page 4 of 4 APPEAL - Mayor Pro Tempore. Mayor Pro -Tem Watford opened the Consider an appeal reques fce by Larry Parzygnat regarding his employment termination by Chief Davis, which was subsequently upheld by the Grievance Committee - City Attorney. J - yC'Llit r:cL ` ({.j/ C (C.. ..1 2.k ( t% /e e-c. V�.- �(C „te i e J tJ_Q r 7) ( -1 l 6'L' 2 „.? 1 G-. peL4.0- Ire L�L� x� � L; � z�av ek c (L4 ( �� i� _1(v_ t 6 , itY2P-kigei 67 t;2-2xle(1)24',/ C �. (7C,,r) Zv>� I z Z, 0 -)t 6`( L.,411' t -1 ,/ C a -lt It f- /t_F -� _1 --t-4 (3 /-4- LJ / /I^ _: (, r2- zv ' 2 1.31 ��A 6(1 e :/� FI fry tcE f. vie 11-147 10,E it C ,1. J e PL L d {{ � (LL L p'(c 1 7 tt.L(, i (J2 tt%y;/. ' t;cin _ (, t)(i / 6 � �,z�n t. -4j- !J 7 lL /6,4 n:rte( A , �t /Yy i f <1 / % • J p �Jek .(� L v( L' '. C <i `� /�2 -(y ti'( y v{: /;q Y C ,(E)f) ,° -AY (1-04 k try ,7). .cp — Mayor Pro -Tem Watford CLOSED the PUBLIC HEARING at p.m. X. ADJOURN MEETING - Mayor. Mayor Pro -Tem Watford adjourned the meeting at O.M. V•idio y1f ,st, :tA 1,4 k_ JLa 0j/ 71-d-e 16- adreLd )644„1-4, )» b6' /gti /r),Lo /iLo - J0-64A like Jt (›<? tu'A A)24i-Latz)4 tC to- 6-LID ticif f `‘ St ezz), ‘2- IL pt t .A-4et 4 s ( (idax) OE cfi.:Lt—: 7)02,1( F-J _ /)tc4,-/ yj. 217ir-y, ' WWL Lui <_1/Le e2--/AJ ktix,-4-eett;t1, u 63--),-Ly_ ) 7)124-ty1-11 e-L9r)k-b(lei — X221/4 Lk)) 1.6 ThLIA_ p-z--711 pdV- aylf-v-td--.41/ ("1-24) r s, scic5 3 39 /3 2 77, 1-0V (1,60 eA 17 /5-19- rd- vv1,6,4-1.24k. P 11017)) p, If-1S o_ceitiGuL0 weAct,c2, p/f/fp,uizd 0,6eAta 5, 10-4-/ 91. LiA4, S 6P Z/1/1L4_44-t: ) 4/716(17 j 61z4 0a.12/(71/-1 &IP-7 ILI-a-14 A tikk 4-4-617i 0Y( g,,qaAs y-4-4411-64, / ;2- a-Crk:tiz otild jdz tura-0 1)--x ( J14-6 7),0A. AcAAid 6 6 d? 70-V4 4,(. aAttei A2Cc hk,0 d/M 1(1,(11 pALLtcL(-11L 7CeLt.tlh La_t`,1 - ^ 44 -eik-.144-6L- C--g-ILL -o-rkf-69-r-4-) 0-6--)a-e Jizithi_ JLL a 4 eAd(Zei' Aye' via. ,/9/171//.3 r,L(Lc‘c,_6(,_ izah Crx_."%cf-d-i uzit L-LLto •e./4-0,L(21AAA Ada- ,jh ,1? IL a -(L At„)) ir=:_s, /0, 5-2, th) f, n (1 (.adtmL- \,t4 Athaa 4,-)c 7rIt_t‘. pc-0,1w-t-e-qJ 7 ,ott dto ( (c.-1 i-14-41e-4 # cLo tOe It1L-o-iJ? d-- bf-x /6"7-{i ' /747/- ,thie/ _ Cjcie,e kPA, it Le, c( Ay64 (-M) ,:c.).%?L• (7--u1/9 etc() JUL2 110112 fa(;itibv 6-e - 1( it-a d--t#1)-(' e yQ-ezit--(-6z tLre,) (LA-k d-A-0 /Y/L Jh44. (LS LeAk Altd /51,e. 4-0 a j Cr? 0 (r/th?z-it d=c, S — Le Al a- a,2 p-c.,: 6ad J& C CLZ- fl" e)/C — at d/4_,- / )24 ef tdg /Le c.1.-11-o - ( 7)L6)- 4A4 4)-tkitt.641Ld b-te-io 61-7-k-iki -e_LJ AP) b ( W'-ZA6 JQi bo-7-Aid 61-p_i /( T , : '/ - j 4 decJ 7)..e.--/ a_ ),-6 ,-A-- -- 7-0,-a_ A--77,-TIL-c ---( 4 6Ly,u7nc_, Liii e...J 6yd- yit- mw-t7/6.1 _ C 4L d "I a (4-6a It zri a C)) /4'4 (c4 x V\LL/ 1.7 /but--4 g-4-? Judi" 1T pjzuz.t./ — 1 61-1G-1 C AL(At- te, 6?1' d NV( c 2 e-e-e:/Le C / 1t_ zc 9'1L /.s -ems Ci (;!ft D tick /Liz /6° f2i /( ( AL- 6 r-c2—a;6--,0j Office of the Mayor Okeechobee, Florida WHEREAS, teen pregnancy is a critical issue facing Okeechobee County; and WHEREAS, in Okeechobee County in the years 2010 to 2012 for every 1000 females between the ages of 14 to 19, 221 gave birth to a child and 38 of those were repeat pregnancies; and WHEREAS, the Teen Pregnancy Prevention Task Force believes that the parents are the first and most influential source of sexual education for children and adolescents; and WHEREAS, the goal of the Teen Pregnancy Prevention Task Force is to decrease teen pregnancy through collaborative efforts in promoting comprehensive education, self - respect and healthy decision. NOW THEREFORE, 1, Dowling R. Watford, Jr., by virtue of the authority vested in me as Mayor Pro - Tempore of the City of Okeechobee, Florida, do hereby proclaim the month of May 2014, as "National Teen Pregnancy Prevention Month" in the City of Okeechobee. In witness whereof I have hereunto set my hand and caused this seal to be affixed. Dowling R. Watford, Jr., Mayor Pro - Tempore Attest: Date: Ma To: From: Date: Re: Jim Kirk, Mayor Devin Maxwell, Councilman Mike O'Connor, Councilman Dowling Watford, Councilman Clayton Williams, Councilman Brian Whitehall, City Administrator David Allen, Dir Public Works 5/6/2014 Decorative Crosswalk material testing /durability /long term maintenance cost CITY OF OKEECHOBEE, r 'BLIC WORKS Mem Disthn ht -e cL - o �Yl o Of Cc c 43e,s vo6-to 5---tb-t A-Tido,.. 11-, kQd4- A- pg '(Z4 Per your request, I have researched the patterned crosswalk product that has been proposed by FDOT for use on the SR70 /US441 project. I have spoken to the manufacturer's representative, checked with several references including both those that the manufacturer supplied and two independent sources that I was able to locate. The comments I received are included below. The general consensus is that the product is very durable and absolutely an enhancement to the community. Testing: Per the attached letter, the manufacturer of the product to be used has to complete the testing at no cost to the City. It will be the City's responsibility to schedule the testing and report the results to FDOT. The City will also responsible for providing Maintenance of Traffic (MOT) during the testing, which could result in minimal overtime if the required testing must be done at night due to traffic concerns. Durability: The manufacturer's representative that I spoke to indicated that depending on traffic conditions, the TrafficPatterns XD product specified for the project should last from 8 to 14 years. All of the references that I spoke to indicated that the Ennis -Flint products that they use have been very durable. Eric Demoura from the town of Mt Pleasant SC has had experience with a variety of similar products and will only specify the Traffic Patterns XD product. Ken Sides from Clearwater uses the lighter weight TrafficPatterns product and is using the product on a regular basis. Because of their satisfaction with the product, Clearwater has purchased the equipment needed to install the TrafficPatterns themselves. As to the loss of Dynamic Friction, the consensus from those that I talked to is that the material should actually exceed the friction capacity life of the surrounding asphalt. While an exact life expectancy estimate is difficult to accurately determine, based on the discussions that I have had with the manufacturer and others using the product, the City should probably expect the crosswalks to last at least 10 to 12 years. Pg �la� Product maintenance /replacement: At the end of the usable life of the product there are two alternatives to rehabilitate the crosswalk. The first option would be to apply an overlay of similar material over the existing crosswalk. This option is viable as long the existing stamp is in good condition. The estimated cost for this option is $90 per sqyd vs the $160 price for the initial installation. Rehabilitation of the crosswalks using this method would extend the Iifespan of the walks by 2 -4 years. The product information sheet for this product (TrafficPatterns LT) is attached to this memo. The second option available is to replace the existing walks with new material by milling out the old crosswalk, replacing the asphalt and then reinstalling the crosswalk. Milling and replacing the old cross walks would cost an estimated $40 /sqyd (2 " -3" depth) and based on the initial installation, the cost to replace the walks would be $160 /sqyd. Given these costs and the estimated Iifespan of the product, the annual cost of the walks would be approximately $11,600 to $14,000 depending on the actual life of the product. Summary of Comments Received from Product References Municipality Yrs in svc Traffic Volume Comments Jim Angstadt Public Works Director City of PSL 772 - 871 -5174 6 High Product in place since 2008 with very satisfactory results. No major maintenance issues. Did note that they had an incident where someone 'burned out' on one of the walks which did leave a visual mark but not a structural problem.. Independent source, not from manufacturers list. Troy McCain, City of Lakeland Troy.McCain @lakeland.gov New XD user, has used other Flint prod David, we just recently put down this product at an intersection about 2 months ago. Obvious too early for long term but I was impressed with the product as it was being laid. We have used Flint products for many years and have been happy with the durability of their products. Independent source, not from manufacturers list. Ken Sides City of Clearwater ken.sides @myclearwater.com 727 - 562 -4792 (Using TrafficPatterns for 4+ years) 4+ Using Traffic patterns which is lighter than XD. They have been very pleased with the product to the extent that they purchased the equipment to install it themselves (Approximately $10K). Product has been lasting as long as the pavement or other thermoplastic products. Can be used on existing pavement. Eric Demoura - Town Administrator Town of Mt. Pleasant, SC (843) 884 - 8517 edemoura @tompsc.com 10+ 30 -60K vehicles /d ay Has used other products from other manufacturers with unsatisfactory results. Will only use Traffic patterns XD and plans to use on future projects. Tom Nigosanti - 2010 City of Middletown, CT (860) 344 -3549 tom.nigosanti @middletownct.gov 4 We used the XD crosswalks on Main Street, it gets a fair amount of traffic, especially truck and bus traffic. We have not performed any friction testing. Just walking on the material you can feel that it's coefficient of friction is above that of the pavement. We installed the crosswalks over new pavement in November of 2010. We have not performed any maintenance on them, and have had nothing but compliments. Wesleyan University wants to use the XD product on some of their crosswalks, and we are considering using it on the north half of Main Street, which is owned by the State of Connecticut. Four years later, the crosswalks still look good, no repairs necessary. i) 344 Tami Gillen, P.E., Assistant City Engineer City of Melbourne Office: 321.608.7311 Cell: 321.288.2832 tgillen@melbourneflorida.org 4 16 -18K vehicles /d ay Including large trucks Very happy with product, no friction testing has been done but the friction values are better than the surrounding friction course in the judgment of the Asst. city engineer. Crosswalks have been a great amenity to the community. Attachments: Ennis -Flint letter to FDOT regarding product testing Product specification sheets for TrafficPatterns XD, TrafficPatterns, and TrafficPatterns LT TrafficPatterns XD product information /installation section from a American Society of Civil Engineers conference presentation made in April 2013 -114 ENNIS F LINT ATraffic Safety Solutions Company February 14, 2014 Ms. Amy tchell Florida DOT 801 N. Broadway Ave Bartow, FL 33830 FEE Project F f I D # - 425846- 1 -52 -01 Limits- 5870 at US441 Intersection Improvement City - Okeechobee County - Okeechobee Dear Ms tchell, p Corporate Office: 115 Todd Court Thomasville, NC 27360 Phone: 336.475.6600 Toll Free: 800.331.8118 sales@ennisflint.com www.ennisflint.com Thank you for the opportunity to provide TrafficPatternsXDT" preformed thermoplastic pavement marking material for your traffic calming and streetscape projects. This letter isto confirm that Ennis -Flint will provide Dynamic Friction Testing (DFT) in accordance with ASTM E1911 using a Dynamic Friction Tester for Project FPID# 425846- 1 -52 -01 in the City of Okeechobee, as required in Topic625- 000 -007 Plans Preparation Manual, Volume 1, section 2.1.6.2. The City of Okeechobee will be responsible for notifying Ennis -Flint when the DFTskid testing isto be completed and will work with Ennis-Hint to schedule the testing at an agreeable time for each entity. It is also the City of Okeechobee's responsibility to provide traffic control for the duration of the testing. It is noted that Ennis - Flint's agreement to provide t his test ing in no way alters t he Terms and Conditions of Sale for our products. Thank you again for specifying the TrafficPatternsXD preformed thermoplastic material on your project. If you have any questions, please feel free to contact me at 336 -475 -6600 or mlamarlinttradinq.com. Sncerely, Mark Lamar Specialty Product Manager cc 3ephanie Williams -Mock, ETrafficScapes Regional Sales Manager Enclosures: TrafficPatternsXD Specification Ennis-Hint Terms and Conditions of S3Ie Traffic Patterns® A Tia:t cScopes 'SoiLtic;: by Ennis-Flint Interconnected, Surface - Applied Preformed Thermoplastic Crosswalks and Traffic Calming Surfaces for Asphalt and Concrete TrafficPatterns® provides a cost - effective, traditional look and alternative to the use of brick and stone pavers be- cause the material is surface applied and virtually maintenance free. The pattern and color combinations of the interconnected sheets allow designers the flexibility to create the ideal crosswalk or traffic calming pattern that complements the overall streetscape design. PREFORMANCE -BASED FEATURES AND BENEFITS • Engineered as heavy -duty intersection grade pavement marking material with enhanced durability • 125 -mil; interconnected sheets of material • High skid /slip resistant for safety. As material wears, new anti -skid elements are exposed. • Can be applied on newly- stamped asphalt as soon as the road surface cools and sets • Does not alter substrate • Does not require stamping templates or grids • Open to traffic minutes after application • ADA compliant - Pedestrian and wheelchair friendly surface • Eliminates the maintenance and safety concerns of loose pavers • All preformed thermoplastic materials are made at Ennis - Flint's manufacturing facility which is ISO 9001:2008 certified for design, development and manufacturing of preformed thermoplastic. Quality, value and long -term performance are built into the marking. Anti -skid elements are added at time of manufacturing for optimized application at thejobsite. TrafficPatterns® does not require expensive capital equipment, customized tools, templates or grids for application.The 2'x 2'sheets of interconnected material are easily lifted and positioned onto an asphalt or concrete surface. Border seg- ments can be added for design variability. Application is simple with a large infrared heater or a propane heat torch. Irdr yyigyL;rliyjf STANDARD PATTERNS SINIUMS ENIMIMIE RUNNING HERRINGBONE PLAIN WEAVE 3ASKET WEAVE ASHLAV BOND Kai !!!1 (2'x2' Sheets) 111 =111= m u = 111 =111 ,.am' 111 =111= •.1'. = 111 =111 mile ■ ■M■ ■ ■.0 REIM am.■ MEE Fee �iiii ��►��� /te• r. lira LARGE STACKED TILE LARGE DIAGONAL HONEYCOMB STACKED TILE DIAGONAL RLE TILE rofigin WON mamma -alllAr OURTYARD QUARTER TERRAllO ROUND STANDARD BORDERS Iwo .i _i R• _ _.I II. an N mg �i • ■ Imo TP36 TP37 ▪ TP38 TP39 TP40 TP41 TP42 STANDARD COLORS BLACK WHITE SAND TAN BRICK RED COLONIAL BRICK HERITAGE FIELD SONOMA CINNAMON SANTA FE CHESTNUT RFD GRAY SAND CLAY GREY DARK KHAKI SIENNA COCOA BRICK RFD PREMIUM COLORS HIM immul 1 ■•1 DUO-TONE TRI-TONE COMBINATION (TERRAZZO ONLY) MIS= Z' NATURAL Po goy( TrafficScapes Surface Systems for Enhanced Safety CROSSWALKS • MEDIANS • ISLANDS • ROUNDABOUTS • ENTRYWAYS • LOGOS TrafficScapesTM is a portfolio of preformed thermoplastic pavement marking materials engineered for durability, safety, and aesthetics for the streetscape and traffic calming market designed to: • Improve traffic safety especially at intersections and multi -use paths • Enhance visibility for pedestrians, motorists, and cyclists • Provide design elements that complement a Complete Streets community • Channel pedestrians across busy commercial parking areas • Promote and /or revitalize community image • Attract new business development in livable communities • Create low -cost median or island effect without the use of raised curbs Each product offers its own unique application and performance approach to streetscape projects where shared roadway safety and aesthetic appeal need to work in conjunction. DuraThermfi TrafcPatterns by Ennis -Flint by Ennis -Flint INLAID s/ ENNIS-FLINT A Traffic Safety Solutions company IMPRESSED // TrafJicPatterns. TrafficPatterns DecoMark- by Ennis -Flint try Ennis -Flint by Ennis-Flint INTERCONNECTED OVERLAY When used on public roadways and private properties open to public travel, decorative crosswalks require proper demarcation with white linear boundaries according to the Manual on Uniform Traffic Control Devices IMUTCD). Ennis -Flint • 115 Todd Ct. Thomasville, NC • 336.475.6600 trafcscapes@flinttrading.com • www.ennisflint.com MKT -00015 SURFACE SIGNS sss TrafficPattrnsI TratficScapes °'Sclu' by Ennis -Flint • TrafficPatternsLT"" is a preformed thermoplastic pavement marking material that provides a more durable and skid - resistant surface than typical epoxy coatings or paint. Application is simple with a propane heat torch or an infrared heater. It can be applied over newly- stamped asphalt or used as a refurbishment where previous coat- ings have worn away.This durable alternative eliminates the need to repaint again and again. TrafficPatternsLT' is supplied in 2 ft. x 2 ft. sheets of non - reflective preformed thermoplastic material that is 90 -mil thick. After proper surface preparation, the material is positioned over stamped asphalt or worn coating, then heated until molten to allow for proper bond. The TrafficPatternsLT"" material itself should not be stamped; rather - when heated, the material flows into the grooves of the previously stamped pattern. HIGH SKID /SLIP RESISTANT FOR SAFETY TrafficPatternsLT"" is designed to ensure that skid and slip resistance is maximized especially where loss of traction in wet conditions can occur. Anti -skid elements are intermixed throughout the material. ENHANCED DURABILITY • Engineered as a durable intersection grade pavement marking,TrafficPatternsLT"" vides optimum wear in adverse conditions. • TrafficPatternsLP can last 6 to 8 times longer than painted surfaces. COMPOSITION, ENVIRONMENTAL SAFETY, MAINTENANCE • Oil and gas impervious, yet compatible with all asphalt surfaces.TrafficPatternsLT"" can be applied on newly - stamped asphalt as soon as the road surface cools and sets • Non- hazardous based on current EPA and OSHA standards either during application or removal - Pedestrian and wheelchair - friendly surface. Does not leave a bumpy, rigid feel as with pavers • Eliminates the maintenance and safety concerns of loose pavers • Repairs can be made with minimal traffic disruption MANUFACTURING CONTROL All preformed thermoplastic materials are made at Ennis-Flint's manufacturing facility which is ISO 90012008 certified for design, development and manufacturing of preformed thermoplastic Quality, value and long- term performance are built into the marking. STANDARD COLORS ■ BLACK WHHE SAND TAN BRICK RED HERITAGE FIELD GRAY SONOMA CINNAMON RED SAND KHAKI • • SIENNA COCOA COLONIAL CHESTNUT SALMON SANTA FE GREY DARK BRICK BRIO( CLAY RED D TrafficScapeSTM Surface Systems for Enhanced Safety CROSSWALKS • MEDIANS • ISLANDS • ROUNDABOUTS • ENTRYWAYS • LOGOS TrafficScapesTM is a portfolio of preformed thermoplastic pavement marking materials engineered for durability, safety, and aesthetics for the streetscape and traffic calming market designed to: • Improve traffic safety especially at intersections and multi -use paths • Enhance visibility for motorists, cyclists and pedestrians • Promote and /or revitalize community image and pride; attract new business • Create attractive walkways in pedestrian and parking areas • Create low -cost median or island effect without the need for raised curbs Each product offers its own unique application and performance approach to streetscape projects where shared roadway safety and aesthetic appeal need to work in conjunction. DuraTherm® by Ennis -Flint INLAID • Requires Certified Applicator • 90-mil thickness TrafficPatterns by Ennis Flint IMPRINTED • Requires Certified Applicator •150 -mil thickness • Asphalt only • Asphalt only • Pre -cut patterns inlaid • Surface of preformed thermo- into asphalt that has been plastic material is stamped with stamped with a template specialized grid to create pattern • Design flexibility • Traditional "brick" look • Moderate ADT • Life cycle dependent on asphalt conditions • Non- retroreflective ENNIS-FLINT A Traffic safety Solutlon, company • Heavy ADT • Non - retroreflective TraffcPatter`'ns® by Ennis -Flint vi Tr JicPatternsa" by Ennis -Flint P 9 V.)1f /r DecoMark© byEnnisfint INTERCONNECTED DURABLE COVERING SURFACE SIGNAGE • Certified Applicator recommended; not required • 125 -mil thickness • Asphalt and concrete • Surface - applied, interconnected sheets of material; no stamping or templates • Design flexibility • Heavy ADT • Non - retroreflective • Certified Applicator recommended for large applications, but not required • 90-mil thickness • Asphalt or concrete • Durable alternative to coating over stamped asphalt; material shall not be stamped • Light to moderate ADT • Non - retroreflective When used on public roadways and private properties open to public travel, decorative crosswalks require proper demarcation with white linear boundaries according to the Manual on Uniform Traffic Control Devices (MUTCD). Ennis -Flint • 115 Todd Ct. Thomasville, NC • 336.475.6600 trafficscapes@Hinttrading.com • wwwennisflint.com MKT -00011 Certified Applicator recommended for large applications, but not required • 90-mil thickness • Asphalt or concrete • Surface - applied, interconnected sheets of preformed thermo- plastic; no stamping templates or grids • Available retroreflective or non - retroreflective Traffic Patt&n5XDTM by Ennis -Flint Impressed Preformed Thermoplastic Crosswalks and Traffic Calming Surfaces for Asphalt TrafficPatternsXD'" is an extremely durable preformed thermoplastic material that incorporates a unique aggregate- reinforced formula with unprecedented wear resistance. The result is a traffic -tough crosswalk that provides traditional brick -like aesthetics built to last. PERFORMANCE -BASED FEATURES AND BENEFITS • Designed for extreme use and wear in high -traffic crosswalks and traffic calming surfaces. • 150 -mil thickness engineered for a robust application system and enhanced durability • Enhanced performance in all climates • Applied to high - quality, stable asphalt, with minimal substrate impact • Fast installation; minimal traffic downtime • High skid /slip resistant for safety. As material wears, new anti -skid elements are exposed. ADA compliant - Pedestrian and wheelchair friendly surface Eliminates the maintenance and safety concerns of loose pavers All preformed thermoplastic materials are made at Ennis - Flint's manufacturing facility which is ISO 9001:2008 certified for design, development and manufac- turing of preformed thermoplastic. Quality, value and long -term performance are built into the marking. Anti -skid elements are added at time of manufactur- ing for optimized application at the jobsite. TrafficPatternsXD"" is installed by a network of Certified Applicators so you can be confident that your design intentions will translate to fully -met expectations on the job site. The 2 ft. x 2 ft. sheets of mate- rial are positioned on the non - stamped, prepared asphalt surface. The material is heated to allow proper embedment of the anti -skid elements. A specialized grid gently stamps a pattern into the material and just into the top layer of the asphalt. STANDARD PATTERNS OFFSET BRICK KKKKKK DIAGONAL HERRINGBONE STANDARD HERRINGBONE SLATE COBBLE EUROFAN SCALLOP STONE .••••••■ MMMENNEN ■I••UU•■ ■MMENEM■ ••■ ■...■ ■MENEMM■ TILE STANDARD BORDERS STANDARD COLORS 121 121 121 121 121 121 121 • MACK WHITE SAND TAN BRICK RED COLONIAL BRICK Nil HERITAGE FIELD SONOMA CINNAMON SAWTA FE CHESTNUT RED GRAY SAND CLAY ■ ■ 111 GREY DARK KHAKI SB MA COCOA SALMON BRICK I® v J TrafficScapes�M Surface Systems for Enhanced Safety CROSSWALKS • MEDIANS • ISLANDS • ROUNDABOUTS • ENTRYWAYS • LOGOS TrafficScapes'" is a portfolio of preformed thermoplastic pavement marking materials engineered for durability, safety, and aesthetics for the streetscape and traffic calming market designed to: • Improve traffic safety especially at intersections and multi -use paths • Enhance visibility for pedestrians, motorists, and cyclists • Provide design elements that complement a Complete Streets community • Channel pedestrians across busy commercial parking areas • Promote and /or revitalize community image • Attract new business development in livable communities • Create low -cost median or island effect without the use of raised curbs Each product offers its own unique application and performance approach to streetscape projects where shared roadway safety and aesthetic appeal need to work in conjunction. DuraTherm® by Ennis Flint INLAID ENNIS-FLINT A Traffic Safety Solutions Company TrafcPatterns " TraffcPatterns® TrufcPatternsLT° DecoMark® by Ennis -Flint by Ennis -Flint by Ennis-Flint by Ennis -Flint IMPRESSED INTERCONNECTED OVERLAY When used on public roadways and private properties open to public travel, decorative crosswalks require proper demarcation with white linear boundaries according to the Manual on Uniform Traffic Control Devices (MUTCD). Ennis -Flint • 115 Todd Ct. Thomasville, NC • 336.475.6600 trafficscapes@flinttrading.com flinttrading.com • www,ennisflint.com MKT -00016 P9 /040 SURFACE SIGNS high performance crosswalks Making Asphalt Beautiful Conventional thermoplastic, 90 mil, glass bead structure al& — ni • • . .4 Aid lygi;ALI _P Making Asphalt Beautiful Making Asphalt Beautiful Installation Process Making Asphalt Beautiful Installation Process Making Asphalt Beautiful Making Asphalt Beautiful Installation Process * ■ Making Asphalt Beautiful Installation Making Asphalt Beautiful Making Asphalt Beautiful by Ennis-Hint Metro Vancouver, BC Installed Fall, 2007 akes economic se Long life cycle Fast installation Minimal community disrupti Easily maintained Making Asphalt Beautiful Patterns etro Vancouver, B Installed Fall, 2007 • Smooth and trip-hazard free Skid and slip resistant ADA compliant • Making Asphalt Beautiful Metro Vancou r, BC Installed Fall, 2007 As at Winter 2010 TratficPatterns by Ennis-Flint 1 'may.. xe i a � t '.w Angeles, CA 06v;✓L l e Kt r t o y F Y 12- (3.4 uctct cc". 0qr ACRICARR CRI RIGGS & INGRAM CPAs and Advisors Communication with Those Charged with Governance To the Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259 -8648 (fax) www.cricpa.com We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Okeechobee, Florida (the "City ") for the year ended September 30, 2013. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and OMB Circular A -133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated September 23, 2013. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. During fiscal year 2013, the City adopted GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The only effect to the City's financial statements as a result of adopting the new standard is changing the terms used on the financial statements from net assets to net position. Accordingly, there is no cumulative effect of an accounting change as of the beginning of the year related to this standard. The application of existing policies was not changed during 2013. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Management's estimate of the useful lives of capital assets is based on the historical lives of similar assets and market prices. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements taken as a whole. Management's estimate of the City's liability for its self- insured worker's compensation claim is based on management's understanding of the circumstances surrounding the claim and information provided by the City's third party claims administrator. We evaluated the key factors and assumptions used to develop the estimated liability in determining that they are reasonable in relation to the financial statements taken as a whole. The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Page Two Management's estimate of the other postemployment benefit liability is based on healthcare costs and employment assumptions developed by management. A third party actuary utilized these assumptions to calculate the yearend liability. We evaluated the key factors and assumptions in determining they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: The disclosure of pension trust funds in Note S.B. to the financial statements due to the reported performance of plan assets. The disclosure of other postemployment benefits in Note 5.C. to the financial statements due to GASB Statement No. 45, Accounting and Reporting by Employers for Postemployment Benefits Other than Pensions (OPEB), for certain postemployment health care benefits provided by the City. The financial statement disclosures are neutral, consistent and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial and communicate them to the appropriate level of management. There were no such misstatements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 28, 2014. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. • To the Honorable Mayor and City Council of the City of Okeechobee, Florida Page Three Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the City Council and management of the City of Okeechobee, Florida and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, (tee "cif cfzri I. Melbourne, Florida April 28, 2014 City of Okeechobee "Gateway to South Florida' CITY OF OKEECHOBEE, FLORIDA Financial Statements For Year Ended September 30, 2013 CITY OF OKEECHOBEE, FLORIDA Table of Contents For Year Ended September 30, 2013 Introductory Section Title Page 1 Table of Contents 2 City Officials 3 Financial Section Independent Auditors' Report 5 Management's Discussion and Analysis 9 Basic Financial Statements Government -wide Financial Statements • Statement of Net Position - Governmental Activities 17 • Statement of Activities - Governmental Activities 18 Fund Financial Statements Governmental Funds • Balance Sheet 19 • Statement of Revenues, Expenditures and Changes in Fund Balances 20 • Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Fiduciary Funds (Component Units that are Fiduciary in Nature) • Statement of Fiduciary Net Position - Pension Trust Funds 22 • Statement of Changes in Fiduciary Net Position - Pension Trust Funds 23 Notes to Financial Statements 25 Required Supplementary Information Other Than Management's Discussion and Analysis • Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 47 • Required Pension Supplementary Information - Schedule of Funding Progress 48 • Required Other Postemployment Benefits Supplementary Information - Schedule of Funding Progress 49 • Notes to Required Supplementary Information 50 Reports on Internal Control and Compliance Matters • Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 51 • Independent Auditors' Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by OMB Circular A -133 53 • Schedule of Findings and Questioned Costs 55 • Schedule of Expenditures of Federal Awards 57 • Independent Auditors' Management Letter 59 Page 2 CITY OF OKEECHOBEE, FLORIDA City Officials For Year Ended September 30, 2013 James E. Kirk Mayor, Chairman Devin R Maxwell Dowling R. Watford, Jr. Clayton Williams Mike O'Connor Council Members John R. Cook City Attorney Brian Whitehall City Administrator Lane Gamiotea City Clerk India Riedel Finance Director Herbert Smith Chief of Fire Denny Davis Chief of Police David Allen Director of Public Works 3 CRI CARR RIGGS & INGRAM CPAs and Advisors INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Report on the Financial Statements Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259-8648 (fax) wvvw.cricpa.com We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Okeechobee, Florida, as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the City of Okeechobee, Florida's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the fiduciary fund type and the discretely presented component unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the fiduciary fund type and the discretely presented component unit is based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 5 Honorable Mayor and Members of the City Council City of Okeechobee, Florida Page Three The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2014 on our consideration of the City of Okeechobee, Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Okeechobee, Florida's internal control over financial reporting and compliance. 64 2, RA*, 4 Melbourne, Florida April 28, 2014 7 AIN AMP CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 Our discussion and analysis of the City of Okeechobee, Florida's (the City's) financial performance provides an overview of the City's financial activities for the year ended September 30, 2013. Please read it in conjunction with the City's basic financial statements, which immediately follow this discussion. FINANCIAL HIGHLIGHTS The following are highlights of financial activity for the year ended September 30, 2013: • The City's total assets exceeded its liabilities at September 30, 2013 by $18,970,682. • The City's total revenues were $6,109,473 for the year ended September 30, 2013, compared to total expenses of $6,488,907, which resulted in a $379,434 decrease in net position. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to basic financial statements. A. Government -Wide Financial Statements The government -wide financial statements, which consist of the following two statements, are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private sector business. The statement of net position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government -wide financial statements can be found on pages 17 and 18 of this report. B. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City's funds can be divided into two fund types: governmental funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near -term financing requirements. 9 CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 B. Fund Financial Statements (continued) Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the Tong -term impact of the City's near -term financing decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide reconciliations to facilitate this comparison between governmental funds and governmental activities. The basic governmental fund financial statements can be found on pages 19 through 21 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found on pages 22 and 23 of this report. C. Notes to Basic Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government -wide and fund financial statements. The notes to basic financial statements can be found on pages 25 through 43 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of financial position. The following table reflects the condensed government -wide statement of net position. City of Okeechobee Statement of Net Position 2013 2012 Current and other assets $ 12,643,327 $ 12,580,872 Capital assets 7,670,339 8,035,056 Total assets 20,313,666 20,615,928 Current liabilities 362,065 463,558 Noncurrent liabilities 980,919 802,254 Total liabilities 1,342,984 1,265,812 Net position: Net investment in capital assets 7,670,339 8,035,056 Restricted 860,740 888,161 Unrestricted 10,439,603 10,426,899 Total net position $ 18,970,682 $ 19,350,116 10 CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 Governmental Activities Total net position decreased by $379,434 primarily as a result of a $302,262 decrease in total assets, and a $77,172 increase of total liabilities. The decrease in total assets was primarily due to selling a capital asset, police vehicles with a net book value of $305,227. The increase in total liabilities was due to a $178,665 increase of noncurrent liabilities due mainly to increases in the net OPEB obligation. The net change in current and noncurrent liabilities was $77,172 as current liabilities decreased by $101,493 related to the timing of payables. The following table shows condensed revenue and expense data: City of Okeechobee, Florida Statement of Activities 2013 2012 REVENUES: Program revenues: Charges for services $ 609,205 $ 657,237 Operating grants and contributions 729,829 744,966 Capital grants and contributions 565,863 106,197 General revenues: Property taxes 1,786,371 1,753,849 Public utility taxes 776,493 723,650 Franchise fees 476,697 491,438 Shared revenues 1,121,364 1,079,320 Investment income and other 43,651 28,200 Total revenues 6,109,473 5,584,857 EXPENSES: General government 1,107,412 1,047,664 Public safety 3,302,097 3,227,399 Transportation 632,237 538,315 Physical environment 1,447,161 959,233 Interest on long -term debt - 2,467 Total expenses 6,488,907 5,775,078 Change in net position (379,434) (190,221) Net position, beginning 19,350,116 19,540,337 Net position, ending $ 18,970,682 $ 19,350,116 11 CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 The City experienced an increase of approximately 9.4% in total revenues — a $524,616 increase to $6.1 million. The increase is primarily due to a $459,666 increase in capital grants and contributions for the rehabilitation grant and an economic development grant, both funded by the Small Cities Community Development Block Grant Program. New construction added to the assessed taxable values and was the contributory factor in the increase in property tax revenue of $32,522. Franchise Fee revenues decreased $14,741 based on lower consumer paid utilities. The Shared Revenue for the State of Florida (SRS) increased approximately $42,044. The $15,451 increase in investment income is due primarily to an increase in the value of the State Board Account investment accounts. Total expenses increased $713,829 due primarily to the expenditure of funds for the rehabilitation grant and the economic grant as well as higher public safety costs, physical environment costs and general services. FUND FINANCIAL ANALYSIS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near - term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $11,686,199, an increase of $181,540 in comparison with the prior year. Approximately 81 % of this total amount $9,470,608, constitutes unassigned fund balance, which is available for spending at the government's discretion. Assigned funcL balances include 95, 3 for subsequent year's expenditures, :;$300,000 for future capital projects and $63,514 for future qualified impact fee expenditures. Public Facilities fund balance of $850,970 plus law enforcement $5,768, and community development of $4,002 are restricted funds based on their specific stipulated purpose. The remainder of fund balance is non - spendable inventory of $35,704.' The general fund is the chief operating fund of the City. At the end of the current fiscal year, assigned and unassigned fund balance of the general fund was $10,726,241 while total fund balance was $11,612,915. As a measure of the general fund's liquidity, it may be useful to compare both assigned and unassigned fund balance and total fund balance to total fund expenditures. The total assigned and unassigned fund balance and total fund balance represent approximately 190% and 205% respectively of total general fund expenditures. The community development capital project fund, a major fund, recorded a year -end fund balance of $4,002. Revenues from the rehabilitation grant and an economic development grant were used in the construction of infrastructure and other improvements in the City. General Fund Budgetary Highlights The amount appropriated for expenditures in the original 12/13 budget decreased from $6,613,498 to $6,238,772 in the final 12/13 budget, a decrease of $374,726. The decrease in general government expenses, fire and police public safety expenses and transportation expenses largely contributed to the overall decrease in expenditures. 12 CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 CAPITAL ASSETS AND LONG -TERM LIABILITIES Capital assets. The City's investment in capital assets as of September 30, 2013, amounted to $7,670,339 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, equipment and construction in progress. During the year, the City's net capital asset balance decreased $364,717. The City's major additions of $473,743 to capital assets during the current fiscal year included the following: • Replacement computers for (2)- Police Department, (1) Code Enforcement • Renovation of office (Director of Public Works) along with office furnishings • Replaced 14 police vehicles including equipment • Replacement bunker gear for firefighters • Bush -hog mower and rotary cutter • Various infrastructure improvements including the SW Street Drainage Project These additions were offset by depreciation expense of $533,233, and disposals with a net book value of $305,227, which largely relates to the sale of 14 police vehicles. Land Buildings Improvements other than buildings Equipment Total City's Capital Assets (net of depreciation) 2013 $ 1,378,744 1,158, 562 4,023,525 1,109,508 $ 7,670,339 2012 $ 1,378,744 1,208,723 4,211,613 1,235,976 $ 8,035,056 Additional information on the City's capital assets can be found in Note 4.C. on page 35 of this report. 13 CITY OF OKEECHOBEE, FLORIDA Management's Discussion and Analysis For Year Ended September 30, 2013 Long -term Liabilities City's Outstanding Debt Long -term Liabilities 2013 2012 Net OPEB obligation $ 628,643 $ 456,060 Compensated absences 352,276 346,194 Total $ 980,919 $ 802,254 The City's long -term liabilities increased by $178,665 during the current fiscal year. The largest contributing factor is the additional liability for the OPEB liability of $172,583. This is the fourth year of implementation of GASB 45, which caused the increase in Net OPEB liability. Additional information on the City's Tong -term debt can be found in Note 4.E. on page 36 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City Council adopted a millage rate 7.7432 for budget year 2014. The adopted millage rate is Tess than 1% of the roll -back rate. A $42,648 increase in budgeted ad valorem revenue for the new year is due to new construction added to this years assessed tax rolls. Revenues for the fiscal year 2014 adopted budget for all funds of the City total approximately $6,093,297, a decrease from the prior year budget of approximately $149,162. These revenues include the General, Public Facility, Capital Projects and Special Law Enforcement fund revenues. The change in revenue is based mostly on the expected decrease in grant funds provided for economic development. Expenditures for the fiscal year 2014 adopted budget for all funds of the City total approximately $7,523,324, an increase of less than 1 %, $8,317 from the prior year budget. The decrease in grant expenditures offset the increase in public safety cost. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Okeechobee's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Okeechobee, 55 S.E. Third Avenue, Okeechobee, Florida 34974. 14 BASIC FINANCIAL STATEMENTS 15 THIS PAGE IS INTENTIONALLY LEFT BLANK. 16 CITY OF OKEECHOBEE, FLORIDA Statement of Net Position - Governmental Activities September 30, 2013 ASSETS Cash and cash equivalents $ 11,595,218 Investments 59,085 Accounts receivable 97,752 Due from other governments 260,505 Inventory 35,704 Overfunded pension costs 595,063 Capital assets: Nondepreciable Land 1,378,744 Depreciable, net of accumulated depreciation Buildings 1,158,562 Improvements other than buildings 4,023,525 Equipment 1,109,508 Total assets 20,313,666 LIABILITIES Accounts payable Accrued expenses Unearned revenue Noncurrent liabilities: Due within one year Due in more than one year Total liabilities 124,239 196,169 41,657 149,511 831,408 1,342,984 NET POSITION Net investment in capital assets 7,670,339 Restricted for: Community development 4,002 Law enforcement 5,768 Public facilities 850,970 Unrestricted 10,439,603 Total net position $ 18,970,682 The accompanying notes are an integral part of these financial statements. 17 CITY OF OKEECHOBEE, FLORIDA Statement of Activities - Governmental Activities Year Ended September 30, 2013 Functions /Programs Expenses General government Public safety Transportation Physical environment Total governmental activities $ 1,107,412 3,302,097 632,237 1,447,161 Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions $ 543,227 $ 132,007 $ 23,222 2,202 42,756 595,620 565,863 $ 6,488,907 $ 609,205 $ 729,829 $ 565,863 Net (Expense) Revenue and Changes in Net Position $ (432,178) (3,276,673) 6,139 (881,298) (4,584,010) General revenues: Property taxes Public utility taxes Franchise fees Shared revenues not restricted to specific programs Unrestricted investment earnings Miscellaneous Total general revenues Change in net position Net position, beginning Net position, ending 1,786,371 776,493 476,697 1,121,364 11,108 32,543 4,204,576 (379,434) 19,350,116 $ 18,970,682 The accompanying notes are an integral part of these financial statements. 18 CITY OF OKEECHOBEE, FLORIDA Balance Sheet - Governmental Funds September 30, 2013 ASSETS Cash and cash equivalents Investments Accounts receivable Due from other funds Due from other governments Inventory Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Accrued expenses Due to other funds Unearned revenue Total liabilities Fund balances: Nonspendable for: Inventory Restricted for: Public facilities Law enforcement Community development Assigned for: Subsequent year's expenditures Future capital projects Impact fees Unassigned Total fund balances Total liabilities and fund balances General $ 11,502,376 59,085 97,752 96,209 180,877 35,704 $ 11,972,003 Community Development Nonmajor Capital Project Funds Total Governmental Funds $ 23,560 $ 69,282 $ 11,595,218 - 59,085 97,752 96,209 79,628 - 260,505 35,704 $ 103,188 $ 69,282 $ 12,144,473 $ 121,262 $ 196,169 41,657 359,088 35,704 850,970 955,633 300,000 63,514 9,470,608 11,612,915 4,002 69,282 $ 11, 972, 003 $ 103,188 $ 69,282 2,977 $ 96,209 99,186 4,002 5,768 Amounts reported for governmental activities in the statement of net position are different because: Negative net pension obligation resulting from overfunding of the police officers' and firefighters' pension plans. Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Long -term liabilities, including the net OPEB obligation and compensated absences are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities $ 124,239 196,169 96,209 41,657 458,274 35,704 850,970 5,768 4,002 955,633 300,000 63,514 9,470,608 11,686,199 595,063 7,670,339 (980,919) $ 18,970,682 The accompanying notes are an integral part of these financial statements. 19 CITY OF OKEECHOBEE, FLORIDA Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended September 30, 2013 Revenues Taxes Intergovernmental Charges for services Permits and fees Fines and forfeitures Investment earnings Miscellaneous Total revenues Expenditures Current: General government Public safety Transportation Physical environment Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in /(out) Proceeds from sale of capital assets Total other financing sources (uses) Net change in fund balances Fund balances, beginning of year Fund balances, end of year Community Total Development Nonmajor Governmental General Capital Project Funds Funds $ 2,468,199 2,048,800 419,588 534,842 26,543 23,841 21,597 5,543,410 1,000,453 3,000,393 986,156 192,635 473,743 5,653,380 (109,970) $ $ 565,863 10,871 576,734 572,764 572,764 3,970 97 285,863 285,960 175,990 11,436,925 $ 11,612,915 $ 3,970 32 4,002 $ 2,468,199 75 2,614,738 419,588 - 534,842 1,890 28,433 23,841 97 32,565 2,062 6,122,206 - 1,000,453 385 3,000,778 986,156 765,399 - 473,743 385 6,226,529 1,677 (104,323) (97) - 285,863 (97) 285,863 1,580 181,540 67,702 11,504,659 $ 69,282 $ 11,686,199 The accompanying notes are an integral part of these financial statements. 20 CITY OF OKEECHOBEE, FLORIDA Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended September 30, 2013 Net change in fund balances - total governmental funds $ 181,540 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period. In the statement of activities, only the gain on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. The net effect of overfunded pension contributions that are reported as expenditures in the fund financial statements and are recorded as a net pension asset on the statement of net position. Other postemployment benefit obligation reported in the statement of activities does not require the use of current financial resources; therefore, is not reported as an expenditure in governmental funds. Compensated absences are reported in the statement of activities when earned. As they do not require the use of current financial resources, they are not reported as expenditures on governmental funds until they have matured. This is the amount of compensated absences reported in the statement of activities in the prior year that has matured in the current year. (59,490) (305,227) (17,592) _ (172,583) (6,082) Change in net position of governmental activities $ (379,434) The accompanying notes are an integral part of these financial statements. 21 CITY OF OKEECHOBEE, FLORIDA Statement of Fiduciary Net Position - Pension Trust Funds September 30, 2013 COMPONENT UNIT General Pension Employees' Trust Funds Pension Trust ASSETS Cash equivalents $ 246,846 $ 211,317 Investments: Mutual funds 2,848,468 2,617,654 Common equity securities 6,690,619 6,127,932 Receivables 90,352 28,297 Accrued interest and dividends 27,019 23,908 Total assets 9,903,304 9,009,108 LIABILITIES Accounts payable 27,769 32,597 Total liabilities 27,769 32,597 NET POSITION Held in trust for pension benefits $ 9,875,535 $ 8,976,511 The accompanying notes are an integral part of these financial statements. 22 CITY OF OKEECHOBEE, FLORIDA Statement of Changes in Fiduciary Net Position - Pension Trust Funds Year Ended September 30, 2013 ADDITIONS Contributions: State City Employees Total contributions Investment earnings: Net appreciation in the fair value of investments Interest and dividends Total investment earnings Less investment expenses Net investment earnings COMPONENT UNIT General Pension Employees' Trust Funds Pension Trust $ 132,007 $ 219,298 65,624 416,929 534,403 239,833 774,236 (70,406) 703,830 361,172 169,160 530,332 523,281 216,540 739,821 (49,167) 690,654 Total additions 1,120,759 1,220,986 DEDUCTIONS Benefits paid to participants 256,742 290,578 Refunds on termination 113,477 DROP payment 124,216 - Administrative expenses 47,820 22,212 Total deductions 428,778 426,267 Change in net position 691,981 794,719 Net position held in trust for pension benefits, beginning of year 9,183,554 8,181,792 Net position held in trust for pension benefits, end of year $ 9,875,535 $ 8,976,511 The accompanying notes are an integral part of these financial statements. 23 THIS PAGE IS INTENTIONALLY LEFT BLANK. 24 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY The City of Okeechobee (the "City ") was originally incorporated in 1915 and its present charter was adopted in 1919 under Chapter 8318 of Special Acts of 1919. The City operates under the council form of government and provides the following services: general government, public safety, transportation and physical environment. These financial statements present the primary government and its component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. The City has no blended component units. Discretely presented component units are entities that are legally separate from the City, but whose relationship with the City are such that the exclusion would cause the City's financial statements to be misleading or incomplete. The financial data of this entity is reported in a separate column in the combined financial statements. Discretely Presented Component Unit City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System — Substantially all of the City's general employees and the employees of the Okeechobee Utility Authority participate in this cost sharing, multiple employer public employee retirement system. The plan was established by City Ordinance No. 655, as amended and restated by City Ordinance No. 686. Complete financial statements for this component unit may be obtained from the City's administrative offices located at: 55 S. E. Third Avenue Okeechobee, Florida 34974 B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The government -wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government. Governmental activities are those which normally are supported by taxes and intergovernmental revenues. Likewise the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. 25 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The community development capital project fund accounts for the assets, liabilities, revenues and expenditures related to the construction of infrastructure and other improvements in the City. The City reports the following nonmajor governmental funds: The impact fees capital project fund accounts for the City's collection and expenditure of impact fees, which are restricted to be spent on capital projects related to law enforcement, fire protection and transportation. The law enforcement special revenue fund accounts for the assets that are restricted to fund certain expenditures of the City's police department. 26 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (CONTINUED) Additionally, the City reports the following fund types: The pension trust fund account is used to account for assets held by the City in a fiduciary capacity for the police officers' and firefighters' pension plans. The funds are operated by carrying out specific terms of statutes, ordinances and other governing regulations. The effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Expenses for compensated absences are allocated based on the assigned function of the related employee. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. ASSETS, LIABILITIES AND NET POSITION OR EQUITY 1. Cash and investments The investment of municipal funds is authorized by local ordinance and Florida Statutes, which allow the City to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, SEC registered money market funds with the highest credit quality rating, interest- bearing time deposits or savings accounts in qualified public depositories, direct obligations of the U.S. Treasury, commercial paper with certain ratings, pre - refunded municipal obligations, banker's acceptances maturing within one year, investment agreements, direct and general long -term and short-term obligations of any state with proper credit rating and full faith and credit pledge, municipal obligations with proper credit rating and repurchase agreements with maturities of 30 days or less with organizations with certain stipulations and requirements. The City invests certain surplus funds in an external investment pool, the Local Government Surplus Funds Trust Fund (the "State Pool "). The State Pool is administered by the Florida State Board of Administration ( "SBA "), who provides regulatory oversight. On September 30, 2008, the SBA reported that the State Pool was exposed to potential risks due to indirect exposure in the sub -prime mortgage financial market. Consequently, the SBA placed some restriction on how participants could access portions of their surplus funds and ultimately restructured the State Pool into two separate pools ( "Florida PRIME" (formerly "LPIG ") and "Fund B "). 27 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. ASSETS, LIABILITIES AND NET POSITION OR EQUITY (CONTINUED) 1. Cash and investments (continued) The Florida PRIME has adopted operating procedures consistent with the requirements for a 2a7 -like fund. The City's investment in the Florida PRIME is reported at amortized cost. The fair value of the City's position in the pool is equal to the value of pooled shares. Fund B is reported at fair value, determined by the fair value per share of the pool's underlying portfolio. The City pools the investments of its governmental funds. Investment earnings of the pool are allocated to the participating funds at the end of each month based on the ratio of each participant funds' investment to the total pooled investment. Cash and cash equivalents include cash deposits, cash funds held in broker accounts and investments held in the Local Government Surplus Funds Trust Fund (Florida PRIME). Within the pension trust funds, plan assets are managed by Bowen, Hanes and Company. The plans follow the investment guidelines as established within the ordinance. The pension trust funds are allowed to invest in the State Pool; obligations of the U.S. Government or agencies thereof; banking institutions within the state and other such institutions within the guidelines of the state statutes which are insured by the Federal Deposit Insurance Corporation; investments agreements; direct and general long -term obligations of any state with proper credit rating and full faith and credit pledge; municipal obligations with proper credit rating; annuity and life insurance contracts; bonds issued by the State of Israel; and stocks, bonds, and commingled funds administered by National or State banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, provided that the corporation is listed on a nationally recognized exchange and holds proper credit ratings as set forth by a major credit rating service. These equity investments are not to exceed 60% of the assets of the pension trust funds on a cost basis. Temporary investment funds held by the custodian in a money market fund are classified as cash equivalents within the investment account. Pension trust fund investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Shares of mutual funds, including proprietary funds and common and collective funds, are valued at quoted market prices, which represent the net asset value of shares held by the pension trust fund at year end. Interest is recognized when earned. Gains and losses from the sale or exchange of investments are recognized on the transaction date. The difference between the excess of fair value over cost represents unrealized gains. 28 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. ASSETS, LIABILITIES AND NET POSITION OR EQUITY (CONTINUED) 2. Receivables and payables All trade and property tax receivables are considered to be fully collectible. The City's property tax is levied annually on the real and personal property located in the City on January 1st of the prior year. Tax collections by the Okeechobee County tax collector begin in November of each year with a due date of March 31 of the following year. All property taxes remaining unpaid at May 30 are subject to a tax certificate sale. The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. During a Special Session in June, 2007, the Florida Legislature adopted HB1 B which limits municipal property tax rates beginning in the 2008 fiscal year. This legislation established reductions in the millage rate based on a calculated growth in per capita taxes between the 2002 and 2007 fiscal years. The Legislature did authorize local governments to use the rolled back millage rate if approved by a super majority vote of the governing body. The Okeechobee City Council levy for the fiscal year ended September 30, 2013 was 7.7432 mills, which is 5.84% less than the rolled back rate. The City Council determines the millage rates and adopts a tax levy by resolution prior to September 30 to fund the next ensuing fiscal year's budget. The assessment of all properties and collection of municipal taxes are provided by the County's Property Appraiser and Tax Collector. The ad valorem tax calendar is as follows: Lien date Levy date Due date Delinquent date - January 1 Prior to September 30 - November 1 - April 1 All property taxes remaining unpaid at May 30 are subject to a tax certificate sale by the Tax Collector. 3. Inventory Inventories are valued at cost which approximates market, using the first -in /first -out (FIFO) method. The costs of inventories are recorded as expenditures when used (consumption method). 4. Capital assets Capital assets, which include: property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the government -wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 29 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. ASSETS, LIABILITIES AND NET POSITION OR EQUITY (CONTINUED) 4. Capital assets (continued) The costs of normal maintenance and repairs that do not add to the value of the extend assets' lives are not capitalized. Major outlays for capital assets and capitalized as projects are constructed. Property, plant and equipment are depreciated using the straight -line method over the useful lives: Assets Buildings Building improvements Vehicles Equipment 5. Compensated absences Years 25 -60 12 -20 10 5 -15 asset or materially improvements are following estimated It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All sick and vacation pay is accrued when incurred in the government -wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 6. Unearned revenues Unearned revenues include amounts collected before the revenue recognition criteria are met. The unearned items consist primarily of business tax revenues. 7. Long -term obligations In the government -wide financial statements, Tong -term debt and other long -term obligations are reported as liabilities in the statement of net position. In the governmental fund financial statements, the face amount of debt issued is reported as other financing sources. 30 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. ASSETS, LIABILITIES AND NET POSITION OR EQUITY (CONTINUED) 8. Fund equity The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable Fund Balance — Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. "Not in spendable form" includes items that are not expected to be converted to cash (such as inventories and prepaid amounts) and items such as long -term amounts of loans and notes receivables, as well as property acquired for resale. The corpus (or principal) of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact. Restricted Fund Balance — Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance — Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Council, the Council's highest level of decision making authority. Commitments may be changed or lifted only by the council taking the same formal action (resolution) that imposed the constraint originally. The City had no committed fund balance at year end. Assigned Fund Balance — Includes spendable fund balance amounts established by the City Administrator or the Council that are intended to be used for specific purposes that are neither considered restricted or committed. Unassigned Fund Balance — Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to specific purposes within the general fund. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those specific purposes. The City would typically use restricted fund balances first, followed by committed resources and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds. E. ACCOUNTING CHANGES The City has implemented GASB Statement No. 62, "Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements ". The Statement is intended to enhance the usefulness of GASB Codifications by incorporating certain accounting guidance issued by the FASB and the AICPA that is applicable to state and local governments. 31 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. ACCOUNTING CHANGES (CONTINUED) The City has implemented GASB Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position ". The Statement requires governments to account for deferred outflows of resources, deferred inflows of resources, and net position elements in GASB Concepts Statement No. 4 as it relates to GASB Statement No. 53, "Accounting and Financial Reporting for Derivative Instruments" and GASB Statement No. 60, "Accounting and Financial Reporting for Service Concession Arrangements ". The City does not have derivatives or service concession arrangements, and therefore does not report deferred outflows of resources or deferred inflows of resources in the financial statements dated September 30, 2013. The Statement of Net Position incorporates GASB Statement No. 63 by displaying three components of net position: net investment in capital assets, restricted and unrestricted. NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net position - governmental activities as reported in the government -wide statement of net position. One element of that reconciliation states that "Iong -term liabilities, including the net OPEB obligation and compensated absences, are not due and payable in the current period and, therefore, are not reported in the funds." The details of this $(980,919) difference are as follows: Net OPEB obligation $ (628,643) Compensated absences (352,276) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities $ (980,919) B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $(59,490) difference are as follows: Capital outlay $ 473,743 Depreciation expense (533,233) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ (59,490) 32 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. BUDGETARY INFORMATION As permitted by GASB Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments, the City has elected to disclose all budgetary information in the notes to the required supplementary information. NOTE 4 — DETAILED NOTES ON ALL FUNDS A. DEPOSITS AND INVESTMENTS At September 30, 2013, the City's carrying amount of deposits was $11,594,844 and the bank balance was $11,718,532. In addition, the City maintained $324 of petty cash. As of September 30, 2013, $250,000 of the City's bank balances are covered by federal depository insurance (FDIC). Monies invested in amounts greater than the insurance coverage are secured by the qualified public depositories pledging securities with the State Treasurer in such amounts required by the Florida Security for Public Depositories Act. In the event of a default or insolvency of a qualified public depositor, the State Treasurer will implement procedures for payment of losses according to the validated claims of the City pursuant to Section 280.08, Florida Statutes. At September 30, 2013, the City had the following investments: Investment type Investment Maturities (in years) More Fair Value Less than 1 1 - 5 6 -10 than 10 Rating Agency Primary government: SBA (Florida Prime) $ 50 $ 50 $ - $ $ - AAAm S &P SBA Fund B 59,085 59,085 - Not rated $ 59,135 $ 50 $ 59,085 $ $ - Pension trust funds: Money market fund $ 458,163 $ 458,163 $ - $ - $ - Not rated - Mutual funds 5,466,122 - 5,466,122 BBB -AA S &P Common equity securities - domestic 11,870,406 11,870,406 - - - Not rated - Common equity securities- foreign 948,145 948,145 - - Not rated - $ 18,742,836 $ 13,276,714 $ - $ 5,466,122 $ - Credit risk Fixed income securities have inherent financial risks, including credit risk and interest rate risk. Credit risk for fixed income securities is the risk that the issuer will not fulfill its obligations. The City's investment policy and the investment policies for the pension trust funds limit investments to securities with specific ranking criteria. 33 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 4 — DETAILED NOTES ON ALL FUNDS (CONTINUED) A. DEPOSITS AND INVESTMENTS (CONTINUED) Interest rate risk Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment's fair value. In accordance with Florida Statute 218.415(6), the City's policy is to match investment maturities with known cash needs and anticipated cash flow requirements. The City's pension trust funds do not address interest rate risk. Concentration of credit risk Concentration of credit risk is an increased risk of Toss that occurs as more investments are acquired from one issuer (Le. lack of diversification). The City's investment policy and the investment policies for the pension trust funds do not specifically address concentration of credit risk. Foreign currency risk The City's pension funds contain investments in foreign corporate bonds; however, all of the investments are denominated in U.S. dollars and are not exposed to foreign currency risk. B. RECEIVABLES Receivables as of September 30, 2013 are as follows: Franchise /Utility taxes Contributions Other Receivables, net General Fund $ 97,535 217 $ 97,752 Municipal Police Officers' Pension Trust Municipal Component Unit Firefighters' General Pension Employees Trust Pension Trust 56,053 34,299 28,297 $ 56,053 $ 34,299 $ 28,297 34 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 4 — DETAILED NOTES ON ALL FUNDS (CONTINUED) C. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2013 was as follows: Governmental activities: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements other than buildings Equipment Total capital assets, being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Equipment Total accumulated depreciation Beginning Balance $1,378,744 1,378,744 Increases Decreases $ - $ - $ 1,378,744 - - 1,378,744 Ending Balance 1,909,216 10,369 6,238,227 93,828 2,608,525 369,546 10,755,968 473,743 (700,493) (2,026,614) (1,372,549) (4,099,656) (60,530) (281,916) (190,787) (533,233) (385,375) (385,375) 80,148 80,148 Total capital assets, being depreciated, net 6,656,312 (59,490) (305,227) 1,919,585 6,332,055 2,592,696 10,844,336 (761,023) (2,308,530) (1,483,188) (4,552,741) 6,291,595 Governmental activities capital assets, net $ 8,035,056 $ (59,490) $ (305,227) $ 7,670,339 .• The current year increase in capital assets does not include any donated capital assets. Depreciation expense was charged to functions /programs of the government as follows: Governmental activities: General government Public safety Physical environment Total depreciation expense - governmental activities D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS $ 47,590 162,612 323,031 $ 533,233 Interfund loans of $96,209 for short term operating purposes resulted in a due to the General Fund from the Community Development Capital Project Fund. All amounts are expected to be repaid within one year. 35 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 4 — DETAILED NOTES ON ALL FUNDS (CONTINUED) D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED) During the year ended September 30, 2013, the Impact Fee Capital Project fund (a nonmajor fund) transferred $97 to the General fund. The transfer represented administrative fees that were earned from collecting impact fees for the County, School Board and the City, and was transferred for the purpose of removing all balances and activity unrelated to the collection and expenditure of impact fees. E. CHANGES IN LONG -TERM LIABILITIES Long -term liability activity for the year ended September 30, 2013, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Net OPEB obligation $ 456,060 $ 172,583 $ - $ 628,643 $ - Compensated absences 346,194 151,246 (145,164) 352,276 149,511 Long -term liabilities $ 802,254 $ 323,829 $ (145,164) $ 980,919 $ 149,511 For the governmental activities, compensated absences are generally liquidated by the general fund. NOTE 5 — OTHER INFORMATION A. RISK MANAGEMENT The City is exposed to various risks of loss, including, but not limited to theft, damage or destruction of its buildings, equipment, records and monetary assets, and liability for personal injury, property damage and consequences of employee and public official actions. The City participates in a non - assessable public risk pool to cover significant loss exposure and purchases commercial insurance for third party pollution liability coverage. The pool maintains a loss reserve and purchases specific excess insurance, aggregate excess insurance and multiple loss coverage from commercial carriers and underwriters. B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS Plan Descriptions — The City contributes to two single - employer defined benefit pension plans: City of Okeechobee Municipal Police Officers' Pension Trust Fund and City of Okeechobee Municipal Firefighters' Pension Trust Fund (the Plans). The Plans provide retirement, disability and death benefits to plan members and their beneficiaries. Chapters 185 and 175 of the Florida Statutes establish the minimum benefits and the minimum standards for the operation and funding of the Police Officers' and the Firefighters' Municipal Pension Trust Funds, respectively. Per City Ordinances Nos. 750 and 749, sole responsibility for administering the Plans is vested in the Board of Trustees of each plan. The Boards cannot amend the provisions of the plans without the approval of the City. The Plans issue publicly available financial reports that include financial statements and required supplementary information. The reports are available from the City of Okeechobee, Florida, 55 S.E. Third Avenue, Okeechobee, Florida 34974. 36 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (CONTINUED) Funding Policies— The contribution requirements of plan members and the City are established and may be amended by City ordinance. Plan members are required to contribute 5% of their annual covered salary for the Police Officers' and Firefighters' Municipal Trust Funds. The City is required to contribute an amount equal to the difference in each year between the total aggregate member contributions for the year, plus state contributions for such year, and the normal cost for the year, as shown by the most recent actuarial valuation of the plan; the current contribution rate as a percentage of covered payroll is 17.59% for the Police Officers' plan and 11.80% for the Firefighters' plan. The City recognized as revenues and expenditures on- behalf payments relating to pension contributions for its public safety employees that the State of Florida paid to the Police Officers' and Firefighters' Plans in the amounts of $75,947 and $56,060, respectively. These contributions are funded by an excise tax upon certain casualty insurance companies on their gross receipts of premiums from policy holders. Annual Pension Cost — The annual required pension contributions for the Plans were determined as part of the October 1, 2013 actuarial valuations using the aggregate actuarial cost method. The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. The actuarial assumptions included (a) 7% investment rate of return (net of administrative expenses) for both the Police Officers' Trust and Firefighters' Trust and (b) projected salary and cost -of- living increases of 6% and 7% for the Police Officers' Trust and Firefighters' Trust, respectively. Both (a) and (b) included an inflation component of 3.5% for the Police Officers' Trust and Firefighters' Trust. The actuarial value of assets was determined using a method which recognizes actual investment return in excess of the assumed return evenly over a four year period. Trend information for each of the City's defined benefit plans: Net Annual Percentage Pension Year Pension Of APC Obligation Ended Cost (APC) Contributed (Asset) Municipal Police Officers' 9/30/11 $ 253,958 95 % $ (286,526) 9/30/12 220,605 95 (274,642) 9/30/13 249,342 95 (263,654) Municipal Firefighters' 9/30/11 $ 102,099 96 % $ (343,855) 9/30/12 103,865 94 (338,013) 9/30/13 110,519 94 (331,409) 37 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (CONTINUED) Funding Status and Funding Progress — The funded status of the Plans as of October 1, 2013, the most recent actuarial valuation date, is shown below: Unfunded Actuarial (Assets in UAAL as a Accrued Liability excess of) % of Actuarial Value (AAL) —Entry AAL Funded Covered Covered of Assets Age * (UAAL) Ratio Payroll Payroll (a) (b) (b) -(a) (a) /(b) (c) (b- a) /(c) Police Officers': $ 6,534,588 $ 6,631,287 $ 96,699 98.5% $ 928,602 10.4% Firefighters': $ 2,795,908 $ 2,749,620 $ (46,288) 101.7% $ 473,939 (9.8)% * For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method. Note that the ARC for the Plan is calculated using the aggregate actuarial cost method. The schedule of funding progress presented as required supplementary information (RSI) immediately following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the AAL for benefits. Pension Plan — Discretely Presented Component Unit Plan Description - The City contributes to the City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System (the "System "), a cost - sharing multiple employer defined benefit pension plan administered by the System's Board of Trustees. The System provides retirement, disability and death benefits to plan members and their beneficiaries. The Board of Trustees is authorized by City Ordinance No. 686 to establish and amend all plan provisions. The System issues a publicly available financial report that includes financial statements and required supplementary information. That report is available from the City of Okeechobee, Florida, 55 S.E. Third Avenue, Okeechobee, Florida 34974. Funding Policy - The contribution requirements of the plan members and the City are established and may be amended by City ordinance. Plan members are required to contribute 6% of their covered annual salary. The City is required to contribute at an actuarially determined rate; the current rate is 12.19% of covered payroll. The City's contributions for the years ended September 30, 2013, 2012 and 2011 were $361,172 $359,298, and $389,940, respectively, and were equal to the required contributions for each year. 38 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (CONTINUED) Pension trust funds fiduciary net position activity as of September 30, 2013 was as follows: ASSETS Cash equivalents Investments: Mutual funds Common equity securities Receivables Accrued interest and dividends Total assets LIABILITIES Accounts payable Total liabilities COMPONENT UNIT Police Total General Firefighters' Officers' Pension Employees' Pension Pension Trust Funds Pension $ 96,939 $ 149,907 $ 246,846 $ 211,317 818,015 1,986,421 34,299 7,805 2,943,479 2,030,453 4,704,198 56,053 19,214 6,959,825 9,383 18,386 9,383 18,386 2,848,468 6,690,619 90,352 27,019 9,903,304 2,617,654 6,127,932 28,297 23,908 9,009,108 27,769 32,597 27,769 32,597 NET POSITION Held in trust for pension benefits $ 2,934,096 $ 6,941,439 $ 9,875,535 $ 8,976,511 39 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 - OTHER INFORMATION (CONTINUED) B. RETIREMENT COMMITMENTS - DEFINED BENEFIT PLANS (CONTINUED) Pension trust funds increase in fiduciary net position activity as of September 30, 2013 was as follows: COMPONENT UNIT Police Total General Firefighters' Officers' Pension Employees' Pension Pension Trust Funds Pension ADDITIONS Contributions State $ 56,060 $ 75,947 $ 132,007 $ City 55,917 163,381 219,298 361,172 Employees 21,822 43,802 65,624 169,160 Total contributions 133,799 283,130 416,929 530,332 Investment earnings: Net appreciation in the fair value of investments 159,377 375,026 534,403 523,281 Interest and dividends 70,647 169,186 239,833 216,540 Total investment earnings 230,024 544,212 774,236 739,821 Less investment expenses Net investment earnings Total additions DEDUCTIONS Benefits paid to participants Refunds on termination DROP payment Administrative expenses Total deductions Change in net position Net position held in trust for pension benefits, beginning of year (28,778) (41,628) (70,406) (49,167) 201,246 502,584 703,830 690,654 335,045 785,714 1,120,759 56,346 200,396 256,742 124,216 - 124,216 22,296 25,524 47,820 202,858 225,920 428,778 132,187 559,794 691,981 2,801,909 6,381,645 1,220,986 290,578 113,477 22,212 426,267 794,719 9,183, 554 8,181, 792 Net position held in trust for pension benefits, end of year $ 2,934,096 $ 6,941,439 $ 9,875,535 $ 8,976,511 40 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION As of October 1, 2009, the City implemented Governmental Accounting Standards Board Statement No. 45, Accounting and Reporting by Employers for Postemployment Benefits Other than Pensions (OPEB), for certain postemployment health care benefits provided by the City. The City elected to implement this statement prospectively. Plan description. The City of Okeechobee, Florida administers a single - employer defined benefit healthcare plan (the "Plan ") that provides medical insurance to its employees and their eligible dependents. Pursuant to Section 112.0801 Florida Statutes, the City is required to provide eligible retirees (as defined in the City's pension plans) the opportunity to participate in this Plan at the same cost that is applicable to active employees. Benefit provisions for the Plan were established by City Council on January 7, 1991 and may only be amended by City Council. The City has not established a trust or agency fund for the Plan. The City does not issue stand -alone financial statements for this Plan. All financial information related to the Plan is accounted for in the City's basic financial statements. Employees and their dependents may elect to remain in the Plan upon retirement up to age 65. After age 65 the City's insurance coverage becomes secondary to the retiree's Medicare insurance. The Plan has 3 retirees and spouses receiving benefits and has a total of 60 active participants and dependents. Funding policy. The City is funding the plan on a pay -as- you -go basis. Employees and their dependents are required to pay 100% of the insurance premiums charged by the carrier. There is an implied subsidy in the insurance premiums for these employees because the premium charged for retirees is the same as the premium charged for active employees, who are younger than retirees on average. For the year ended September 30, 2013, the City's contribution is $38,537, which represents an estimate of the implied subsidy described above. Contributions of plan members totaled approximately $39,893 for the year ended September 30, 2013. Annual OPEB cost and net OPEB obligation. The City's annual OPEB cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount determined using the Alternative Measurement Method, permitted by GASB Statement No. 45 for employers in plans with fewer than 100 total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial accrued liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year ended September 30, 2013, the amount actually contributed to the Plan, and changes in the City's net OPEB obligation to the Plan: 41 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase in net OPEB obligation Net OPEB obligation — beginning of year Net OPEB obligation — end of year The City's annual OPEB cost, the percentage of annual OPEB cost contributed OPEB obligation for the fiscal year ending September 30, 2013 was as follows: Year Ending 9/30/13 9/30/12 9/30/11 Annual OPEB Cost $ 211,120 164,841 160,520 Percentage of Annual OPEB Cost Contributed 18% 6% 5% $ 212,216 13,682 (14,778) 211,120 (38,537) 172,583 456,060 $ 628,643 to the Plan, and the net Net OPEB Obligation $ 628,643 456,060 301,348 Funded status and funding progress. Because the Plan has fewer than 200 members, the City is required to obtain an actuarial valuation at least every three years. The most recent actuarial valuation was performed as of September 30, 2013. Accordingly, the City will be required to obtain a subsequent actuarial valuation within three years of that date. As of September 30, 2013, the actuarial accrued liability for benefits was $1,255,666, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the Plan) was $2,345,956, and the ratio of unfunded actuarial accrued liability (UAAL) to the covered payroll was 54 %. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, future interest rates, mortality, medical cost inflation, Medicare coverage and changes in marital status. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. The schedule of funding progress presented as required supplementary information following the notes to the financial statements, will present multiyear trend information that shows whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Because fiscal year 2010 was the year of implementation of GASB Statement No 45 and the City elected to apply the statement prospectively, only one year is presented in the schedule at this time. In future years, required trend data will be presented. 42 CITY OF OKEECHOBEE, FLORIDA Notes to Financial Statements For The Year Ended September 30, 2013 NOTE 5 — OTHER INFORMATION (CONTINUED) C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (CONTINUED) Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the September 30, 2013 valuation, the entry age normal cost method was used. The assumptions included a discount rate of 3.0 %, a general inflation rate of 2.8 %, and an annual healthcare cost trend rate of 10% initially, increased to an ultimate rate of 20% after nine years. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payrolls on a closed basis over a period of 30 years. As authorized by GASB Statement No. 45, the Alternative Measurement Method with its simplifications of certain assumptions was employed in measuring actuarial accrued liabilities and the ARC. D. CONCENTRATION — COLLECTIVE BARGAINING UNIT Members of the City's fire department are covered by a collective bargaining agreement. The agreement with the employees covered by the International Association of Firefighters (IAFF) extended through September 30, 2009 and has not been renewed as of the date of our report. NOTE 6 — FUTURE ACCOUNTING PRONOUCNEMENTS The Governmental Accounting Standards Board ( "GASB ") has issued statements that will become in subsequent fiscal years. The Statements address: • Items previously reported as assets and liabilities; • Accounting and financial reporting for pensions; • Mergers, acquisitions and transfers of operations; and • Financial guarantees. The City is currently evaluating the effects that these statements will have on its financial statements for subsequent fiscal years. NOTE 7 — SUBSEQUENT EVENT During November 2013, the City awarded the annual police vehicle purchase bid to an unrelated vendor for 13 police vehicles in the amount of approximately $275,000. 43 THIS PAGE IS INTENTIONALLY LEFT BLANK. 44 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT'S DISCUSSION AND ANALYSIS 45 THIS PAGE IS INTENTIONALLY LEFT BLANK. 46 CITY OF OKEECHOBEE, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund Year Ended September 30, 2013 Revenues Taxes Intergovernmental Charges for services Permits and fees Fines and forfeitures Investment earnings Miscellaneous Total revenues Expenditures Current: General government: Legislative Executive City clerk Financial services Legal council General services Total general government Public safety: Fire Police Total public safety Transportation Physical environment Capital outlay Total expenditures Deficiency of revenues under expenditures Other financing sources Operating transfers in Sale of capital assets Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, beginning of year Fund balances, end of year Reconciliation of budgetary to GAAP basis Current year encumbrances Prior year encumbrances Fund balance on GAAP basis Original Budget $ 2,299,745 1,881,838 400,079 543,470 22,900 7,100 3,000 5,158,132 Final Budget $ 2,449,097 1,986,835 413,551 532,576 25,225 17,979 14,644 5,439,907 Actual (on Budgetary Basis) Variance with Final Budget Positive (Negative; $ 2,468,199 $ 19,102 2,048,800 61,965 419,588 6,037 534,842 2,266 26,543 1,318 23,841 5,862 21,597 6,953 5,543,410 103,503 115,919 109,273 109,171 174,334 168,149 166,697 190,416 190,416 172,301 256,404 215,551 210,666 71,823 47,957 44,284 374,595 351,862 297,334 1,183,491 1,083,208 1,000,453 1,320,331 1,261, 322 1,245,473 1,962,012 1,800,031 1,761,166 3,282,343 3,061,353 3,006,639 1,067,746 1,014,293 994,623 620,823 620,823 312,653 459,095 459,095 354,428 6,613,498 6,238,772 5,668,796 (1,455,366) 500 252,000 252,500 (798,865) (125,386) 97 97 252,000 285,863 252,097 285,960 102 1,452 18,115 4,885 3,673 54,528 82,755 15,849 38,865 54,714 19,670 308,170 104,667 569,976 673,479 33,863 33,863 (1,202,866) (546,768) 160,574 707,342 11, 436, 925 11, 436, 925 11, 436, 925 $10,234,059 $ 10,890,157 11,597,499 $ 707,342 19,614 (4,198) $ 11,612,915 The accompanying notes to required supplementary information are an integral part of this schedule. 47 CITY OF OKEECHOBEE, FLORIDA Required Pension Supplementary Information - Schedule of Funding Progress Last Six Fiscal Years Police Officers' Pension Plan Actuarial Valuation Date 2013 2012 2011 2010 2009 2008 Actuarial Value of Assets (a) $ 6,534,588 6,044,391 5,712,560 5,666,207 5,424,146 5,253,380 Actuarial Accrued Liability AAL* Entry Age (b) $ 6,631,287 6,187,990 5,886,480 5,659,633 5,201,828 4,966,790 Firefighters' Pension Plan Actuarial Valuation Date 2013 2012 2011 2010 2009 2008 Actuarial Value of Assets (a) $ 2,795,908 2,595,508 2,428,618 2,417,688 2,330,746 2,255,117 Actuarial Accrued Liability AAL* Entry Age (b) $ 2,749,620 2,556,559 2,318,524 2,215,619 2,104,641 1,898,670 Unfunded (Assets in excess of) AAL (UAAL) (b -a) $ 96,699 143,599 173,920 (6,574) (222,318) (286,590) Unfunded (Assets in excess of) AAL (UAAL) (b -a) $ (46,288) (38,949) (110,094) (202,069) (226,105) (356,447) Funded Ratio (a /b) 98.54% 97.68% 97.05% 100.12% 104.27% 105.77% Covered Payroll (c) $ 928,602 928,285 936,580 967,957 947,296 917,647 Funded Ratio Covered (a /b) Payroll (c) 101.68% $ 473,939 101.52% 429,008 104.75% 457,776 109.12% 438,787 110.74% 456,742 118.77% 461,494 UAAL as a % of Covered Payroll ((b -a) /c) 10.4% 15.5% 18.6% -0.7% - 23.5% - 31.2% UAAL as a % of Covered Payroll ((b -a) /c) -9.8% -9.1% -24.0% - 46.1% -49.5% - 77.2% *The annual required contribution (ARC) is calculated using the aggregate actuarial cost method. Information in this schedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress of the Plan. 48 CITY OF OKEECHOBEE, FLORIDA Required Other Postemployment Benefits Supplementary Information Schedule of Funding Progress UAAL Actuarial Unfunded a % of Actuarial Actuarial Accrued AAL Funded Covered Valuation Value of Liability (UAAL) Ratio Covered Payroll Date Assets (a) AAL (b) (b -a) (a /b) Payroll (c) ((b -a) /c) 9/30/2013 $ $ 1,255,666 $ 1,255,666 0.0% $ 2,345,956 53.5% 8/1/2010 $ $ 776,235 $ 776,235 0.0% $ 2,515,729 30.9% Because fiscal year 2010 was the first year of implementation of GASB Statement No. 45 and the City elected to apply the statement prospectively, only two actuarial valuations are presented in the schedule at this time. In future years, required trend data will be presented. Note: 49 CITY OF OKEECHOBEE, FLORIDA Notes to Required Supplementary Information For Year Ended September 30, 2013 A. BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City Administrator may make transfers of appropriations within a department as long as the total budget of the department is not increased. Transfers of appropriations between departments require the approval of the council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. The council made certain supplemental budgetary appropriations during the year. Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as restricted or assigned fund balances and do not constitute expenditures or liabilities because the commitments will be re- appropriated and honored during the subsequent year. B. ADDITIONAL ACTUARIAL INFORMATION The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return* Projected salary increases* Cost -of- living adjustment *Includes inflation at: Firefighters' Pension Plan 10/01/13 Aggregate N/A N/A Four year smoothed Market 7.0% 7.0% 0.25% 3.5% Police Officers' Pension Plan 10/01/13 Aggregate N/A N/A Four year smoothed Market 7.0% 6.0% 0.25% 3.5% 50 £CRICARR RIGGS & INGRAM CPAs and Advisors Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259 -8648 (fax) www.cricpa.com Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Okeechobee, Florida, as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the City of Okeechobee, Florida's basic financial statements, and have issued our report thereon dated April 28, 2014. Other auditors audited the financial statements of the fiduciary fund type and the discretely presented component unit, as described in our report on the City of Okeechobee, Florida's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Okeechobee, Florida's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Okeechobee, Florida's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Okeechobee, Florida's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies, and therefore material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 51 The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Page Two Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Okeechobee, Florida's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Melbourne, Florida April 28, 2014 52 C R I ACRICARR RIGGS & INGRAM CPAs and Advisors Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259 -8648 (fax) www.cricpa.com Independent Auditors' Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by OMB Circular A -133 The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Report on Compliance for Each Major Federal Program We have audited the City of Okeechobee, Florida's compliance with the types of compliance requirements described in the OMB Circular A -133 Compliance Supplement that could have a direct and material effect on each of the City of Okeechobee, Florida's major federal programs for the year ended September 30, 2013. The City of Okeechobee, Florida's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditors' Responsibility Our responsibility is to express an opinion on compliance for each of the City of Okeechobee, Florida's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Okeechobee, Florida's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City of Okeechobee, Florida's compliance. Opinion on Each Major Federal Program In our opinion, the City of Okeechobee, Florida complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended September 30, 2013. 53 The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Page Two Report on Internal Control Over Compliance Management of the City of Okeechobee, Florida is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City of Okeechobee, Florida's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Okeechobee, Florida's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is Tess severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A -133. Accordingly, this report is not suitable for any other purpose. __)-frtiie 1,_4( Melbourne, Florida April 28, 2014 54 THE CITY OF OKEECHOBEE, FLORIDA Schedule of Findings and Questioned Costs Fiscal Year Ended September 30, 2013 SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditors' report issued: Unmodified Internal control over financial reporting: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified: yes X none reported Noncompliance material to financial statements noted? Federal Awards yes X no Internal control over major federal programs: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified? _ yes X none reported Type of auditors' report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A -133? yes X no Identification of major federal program: Federal CFDA Numbers Federal Program or Cluster 14.228 Community Development Block Grant — 2011 -2012 Dollar threshold used to distinguish between type A and B programs was $300,000 for major federal programs. Auditee qualified as a low -risk auditee for federal purposes? yes X no 55 THE CITY OF OKEECHOBEE, FLORIDA Schedule of Findings and Questioned Costs (Continued) Fiscal Year Ended September 30, 2013 FINDINGS - FINANCIAL STATEMENTS AUDIT No matters were reported. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS No matters were reported. OTHER ISSUES No Summary Schedule of Prior Audit Findings is required because there were no prior audit findings related to federal programs or state projects. No Corrective Action Plan is required because there were no findings required to be reported under OMB Circular A -133. 56 CITY OF OKEECHOBEE, FLORIDA Schedule of Expenditures of Federal Awards For the Year Ended September 30, 2013 Federal Agency/ Pass - through Entity/ Federal Program U.S. Department of Housing and Urban Development Indirect Program Passed through Florida Department of Economic Opportunity Community Development Block Grant 2011 Community Development Block Grant 2012 Total - U.S. Department of Housing and Urban Development U.S. Department of Justice Indirect Program Passed through Florida Department of Law Enforcement Justice Assistance Grant (JAG) Total Expenditures of Federal Awards CFDA No. Grant Contract No. Expenditures 14.228 11DB-05-07-57-02-H 08 $ 533,853 14.228 12DB- OH- 07- 57- 02 -E08 38,465 572,318 16.738 2013 - JAGD - OKEE -1 D8 -133 2,202 $ 574,520 Note A - Significant Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the City's federal award programs presented on the accrual basis of accounting in accordance with generally accepted accounting principles. 57 THIS PAGE IS INTENTIONALLY LEFT BLANK. 58 VINO iCRICARR RIGGS & INGRAM CPAs and Advisors Independent Auditors' Management Letter The Honorable Mayor and Members of the City Council Of the City of Okeechobee, Florida Carr, Riggs & Ingram, LLC 215 Baytree Drive Melbourne, Florida 32940 (321) 255-0088 (321) 259 -8648 (fax) www.cricpa.com We have audited the financial statements of the City of Okeechobee, Florida as of and for the fiscal year ended September 30, 2013, and have issued our report thereon dated April 28, 2014. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards, Independent Auditors' Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A -133 and Chapter 10.550 Rules of the Florida Auditor General, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated April 28, 2014, should be considered in conjunction with this management letter. ••• Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned ,.. auditors' reports or schedule: ❖ Section 10.554(I)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. ❖ Section 10.554(I)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the City of Okeechobee, Florida complied with Section 218.415, Florida Statutes. ❖ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. ❖ Section 10.554(I)(i)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 59 The Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida Page Two ❖ Section 10.554(I)(i)5., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The legal authority of the City of Okeechobee, Florida and its component units are disclosed in the footnotes. ❖ Section 10.554(I)(i)6.a., Rules of the Auditor General, requires a statement be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Okeechobee, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. ❖ Section 10.554(I)(i)6.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the City of Okeechobee, Florida for the fiscal year ended September 30, 2013, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2013. In connection with our audit, we determined that these two reports were in agreement. ❖ Pursuant to Sections 10.554(i)6.c. and 10.556(7), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor City of Okeechobee, Florida's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. I Melbourne, FI rida April 28, 2014 60 Exhibit 1 Ney May 6, 2014 CITY OF OKEECHOBEE 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 Tele: 863 -763 -3372 ext. 218 Fax: 863- 763 -1686 SPECIAL EVENTS AND /OR, TEMPORARY STREET AND SIDEWALK CLOSING PERMIT APPLICATION Date Received: 1. -a3- ,.9O12/ Date Issued: Contact Person: DaS +or i'Y1L4 -c'ir) IY1Lt.r(JVIA_ 1 agt: 1 U1.3 Application No: NM Pi/t)- //_)- Date(s) of Event: Date Paid: Mat • t it//9 �, — ' � :� : �ciN Fee: Information: Organization: 1 FA Q. gott 11' f1Ltt'tish' j I Tax Exempt No: 1 jC) - O 1-1 7 0(1 Mailing Address: L401 SW 5yc. A jit.n u_L . t` e ediniae.e, FL 34q'y Contact Person: DaS +or i'Y1L4 -c'ir) IY1Lt.r(JVIA_ E -Mail Address: • - c '.,c -" u n c('1 a • c.tiner ')Cie." (1k3 a+ i-iz.c. P100_, Work: 1 rl — rj 0,225 Summary of activities: 1 Home: 1 Cell: 1 • -i\l otO (a e_.� .eY1eL- a)erri-- Dp.e�) +0 a. I f (pi i -lc 1 D Lk J rc«ier6 LtCr51�r) r hhCR 6-ht/ • • /J • ` ' i ) .9c 6-I-Uri p.il-!,S L�1c i lac o(r)c back 4 ' st -f h 4!a rn -I �e. 6Q�1L-l-t oxq " -o +I , ! ► • c l L. L 4 " _'.e► - . ,-i t ` r -f 1 f-eCrC.cdio- . L 1 d Rv . c1 , Y ", • • - c '.,c -" u n c('1 a • c.tiner ')Cie." (1k3 a+ i-iz.c. P100_, PrRceeds usage: -1-R.121 Please check requested Parks: j� //) Flagler Parks: o City Hall Park o #1 Memorial Park o #2 0 #3 o #4 o #5 o #6 OR Address of event: Parcel ID: Page 3 of 3 I hereby acknowledge that I have read and completed this application, the attached Resolutions No.(s) 03- 08 and 04 -03, concerning the use and the rules of using City property, that the information is correct, and that I am the duly authorized agent of the organization. I agree to conform with, abide by and obey all the rules and regulation, which may be lawfully prescribed by the City Council of the City of Okeechobee, or its officers, for the issuance of this Charitable Function Permit. CERTIFICATE OF INSURANCE MUST NAME CITY 01? O +ECHOBEE AND R.E. IIAMRICK TESTAMENTARY TRUST AS ADDITIONAL INSURED. 1V:k 11 f(1Lh /a� Applicant Signature th y r Cat_ * 41-1J-3/ Date ° 0 0 °OFFICE USE_ONLY a ° ° ° Staff Review 01 ng121CCY: ..__ - Date: .. _ .� r /f / Fire Department: �/ '/ , Date: Z' Building Official: �`J V Date: Public Works: 114W- /f / Date: -�• ,ei. /J 4 -V• z7-/ / q .-2 3 -`i, 4/2 cif r Police Department: rilir�r� ilir Date: BTR Department: r _ ii ' C i,/ /WI/ Date: City Administrator: �— ��!i'� Date: City Clerk: / fa/ ' iii /per Date: 4 3 J' NOTE: APPLICATION AND INSURANCE CERTIFICATE MUST BE COMPLETED AND RETURNED TO THE GENERAL SERVICES DEPARTMENT TIIIRTY (30) DAYS PRIOR TO EVENT FOR PERMITTING. Temporary Street and Sidewalk Closing submitted for review by City Council on Temporary Street and Sidewalk Closing reviewed by City Council and approved Date Date Exhibit 2 At_ May 6, 2014 CITY OF OIEEECIIOBEE 55 SE THIRD AVENUE OICEECIIOBEE, FL 34974 Tele: 863 - 763 -3372 ext. 218 Fax: 863- 763 -1686 SPECIAL EVENTS AND /OR, TEMPORARY STREET AND SIDEWALK CLOSING PERMIT APPLICATION • Date Received: ! f - a- e9)0/1 Date Issued: " ' * E -Mail Address: 4 ex-e5,10 a(.ia r r drag as gJi +mYl c i/• C'OM 1 qAV 1 VA J Application No: '�;��t . C . 0scdo mt. ,,, -. Date(s) of Event: 6Ge4 , (fl c 1 0/4 d Fee: NI a . Date Paid: N (a - Information: Organization: 1 F6 e. Voctih /Y/Ins 1 Tax Exempt No: 1 I.5-q-, OcjL)L 7Drl Mailing Address: ) j 8 L 5q-k Av'(n (It , VCeec:.ho bee. 1 -I'LL sop) Contact Person: " ' * E -Mail Address: 4 ex-e5,10 a(.ia r r drag as gJi +mYl c i/• C'OM eiepnone: Work: 1 Home: 1 Summary of activities: 1 Cell: 034 -- (v3 i i -- ' a • honor ct I i k 62t#) -1 Li IS' di r .t.0 c,.. ' '1 • /4 • (( I C S etyP 0 y �) 1 & u *oar t , �. : I f oz h . C . 0scdo mt. ,,, -. I- 'r .,%f - r' ' ,.-e. ; •j 4 Sinr c d .i_, - OM) UM bL ..Q4 --e nciAcI ' ,'a1 uc& .-!-D .-1-fu --c trc-6, • Proceeds usage: Min •Pp i t P Gu? Please check requested Parks: Flagler Parks: ❑ City Hall Park o #1 Memorial Park o #2 ❑ #3 o #4 o #5 o #6 OR Address of event: Parcel ID: Page 3 of 3 I hereby acknowledge that I have read and completed this application, the attached Resolutions No.(s) 03- 08 and 04 -03, concerning the use and the rules of using City property, that the information is correct, and that I ani the duly authorized agent of the organization. I agree to conform with, abide by and obey all the rules and regulation, which may be lawfully prescribed by the City Council of the City of Okeechobee, or its officers, for the issuance of this Charitable Function Permit. CERTIFICATE OF INSURANCE MUST NAME CITY OF OKEECHOBEE AND R.E. HAMRICK TESTAMENTARY TRUST AS ADDITIONAL INSURED. (LrtoO irvIS 4 /q /a0 /V Applicant Signature 4 (J e1 Date °° °°OFFICE USE ONLY"" Staff Review -el . En : ear /— / Date: i \ /,!) Fire De • artment: -' 't Date: ,, 'L,61,9//f E��e� Canianni .y. ZZ ,-" Buildin_ Official :�i� Date: Date: Public Works: _, _ ,' is Police De artxnent: i�� Date: BTR De 1 artment: ,t Date: - Ci Administrator: ilitt "Age Date: IV >Arm City Clerk: x -{ -1n„ Date: NOTE: APPLICATION AND INSURANCE CERTIFICATE MUST BE COMPLETED AND RETURNED TO THE GENERAL SERVICES DEPARTMENT TIIIRTY (30) DAYS PRIOR TO EVENT FOR I':ERMITTING. Temporary Street and Sidewalk Closing submitted for review by City Council on b -1.o•• t t-f Date Temporary Street and Sidewalk Closing reviewed by City Council and approved Date • RESOLUTION NO. 2014 -01 r• Exhibit 3 AO r May 6,2014 A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA AUTHORIZING THE EXECUTION AND ACCEPTANCE OF A TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the State of Florida Department of Transportation (FDOT) has requested that the City of Okeechobee, Florida, consider an agreement with the FDOT to transfer the responsibility of maintenance of traffic signal devices within the City of Okeechobee, from FDOT to the City of Okeechobee; and WHEREAS, in return for such responsibility FDOT has agreed to pay compensation to the City of Okeechobee for such maintenance; and WHEREAS, the City of Okeechobee finds that the compensation for maintenance in • relation to the responsibility is reasonable and within the capabilities of existing City Public Works Department; and WHEREAS, the City Council of the City of Okeechobee, Florida, believes such an agreement to be in the best interest of the citizens of the City of Okeechobee. NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee, Florida; presented at a duly advertised public meeting; and passed by majority vote of the City Council; and properly executed by the Mayor or designee, as Chief Presiding Officer for the City: 1. The Mayor is authorized to execute an agreement entitled "Traffic Signal Maintenance and Compensation Agreement" between the City of Okeechobee, Florida, and the FDOT upon terms and conditions set out in said agreement, attached herewith as Attachment No. 1. 2. That, upon acceptance by FDOT, the City of Okeechobee Public Works Department, shall thereafter, maintain the traffic signal devices in the City of Okeechobee at the locations set out in the agreement, Exhibit A; and upon the terms and compensation set forth in the agreement, Exhibit B, submitted by FDOT, effective July 1, 2014 to June 30, 2015; and thereafter, as approved and executed by the City of Okeechobee Public Works Director, David Alien. 3. That as the agreement is contingent upon annual funding to the Department by the legislature, the authorization by this resolution for entry into this agreement and continued maintenance shall terminate upon notice from the Department that funding is not available for maintenance during any calendar year without further action by the City Council. Conflict. All Resolution or parts of Resolutions in conflict herewith are hereby repealed. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or application thereof shall for any reason be held invalid or unconstitutional by any court of competent jurisdiction, such portion or provision and such holding shall not affect the validity of the remaining portions or applications here. Effective Date. This resolution shall become effective immediately upon its adoption. Resolution No. 2014 -01 Page 1 of 8 Vu` INTRODUCED AND ADOPTED in regular session this 6th day of May, 2014. ATTEST: James E. Kirk, Mayor Lane Gamiotea, CMC, City Clerk REVIEWED FOR LEGAL SUFFICIENCY: John R. Cook, City Attorney Resolution No. 2014 -01 Page 2 of 8 RESOLUTION NO. 2014 -01 ATTACHMENT NO. 1 STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT CONTRACT NO. FINANCIAL PROJECT NO. F.E.I.D. NO. 750-010-22 TRAFFIC OPERATIONS 4/14 Page 1 of 8 THIS AGREEMENT, made and entered into this day of by and between the Florida Department of Transportation, an agency of the State of Florida, herein called the "Department ", and City of Okeechobee~ Florida, herein called the "Maintaining Agency ". WITNESSED: WHEREAS, the Maintaining Agency has the authority to enter into this Agreement and to undertake the maintenance and operation of traffic signals or signal systems on the State Highway System, and the Department is authorized under Sections 334.044 and 335.055, Florida Statutes, to enter into this Agreement, and; • WHEREAS, the Maintaining Agency has authorized its undersigned representative to enter into and execute this Agreement; NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein to be undertaken by the respective parties hereto, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties mutually agree and covenant as follows: 1. The Maintaining Agency shall be responsible for the maintenance and continuous operation of the traffic signals, traffic signal structures (including signal mast arm structure or strain pole), traffic signal systems (central computer, cameras, message signs, communications devices, interconnect / network, vehicle, bicycle & pedestrian detection devices, traffic signal hardware and software), and control devices (intersection control beacons, traffic warning beacons, illuminated street name signs, pedestrian flashing beacons (school zone flashing beacons, pedestrian crossing beacons, Rectangular Rapid Flashing Beacons), emergency /fire department signals and speed activated warning displays). The Maintaining Agency shall be responsible for the payment of electricity and electrical charges incurred in connection with operation of such traffic signals and signal systems and devices upon completion of their installation. All traffic signals and control devices mentioned in this paragraph shall hereafter be referred to 'Traffic Signals and Devices'. 2. The Department agrees to pay to the Maintaining Agency, an annual compensation based on Department's fiscal year for the cost of the maintenance and continuous operation of the Traffic Signals and Devices as identified in Exhibit A. Payments will be made in accordance with Exhibit B. Should the Maintaining Agency withdraw from the compensation portion of this Agreement, the Maintaining Agency will still be responsible for the maintenance and continuous operation of the above items. In the case of construction contracts, the Maintaining Agency shall be responsible for the payment of electricity and electrical charges incurred in connection with the operation of the Traffic Signals and Devices, and shall undertake the maintenance and continuous operation of said Traffic Signals and Devices upon final acceptance of the installation by the Department. Prior to any acceptance by the Department, the Maintaining Agency shall have the opportunity to inspect and request modifications /corrections to the installation(s) and Department agrees to undertake those prior to acceptance so long as the modifications /corrections comply with the contract and specifications previously approved by both the Department and Maintaining Agency. Repair or replacement and other responsibilities of the installation contractor and the Department, during construction, are contained in the Department's Standard Specifications for Road and Bridge Construction. 3. The Maintaining Agency shall maintain and operate the Traffic Signals and Devices in a manner that will ensure safe and efficient movement of highway traffic and that is consistent with maintenance practices prescribed by the International Municipal Signal Association (IMSA) and operational requirements of the Manual on Uniform Traffic Control Devices (MUTCD), as amended. 4. The Maintaining Agency's maintenance responsibilities shall include, but not be limited to, preventive maintenance (periodic inspection, service and routine repairs) and emergency maintenance (trouble shooting in the event of equipment malfunction, failure, or damage). Restoration of services may include temporary poles, stop signs or other methods to maintain traffic. The Maintaining Agency shall record its maintenance activities in a traffic signal maintenance log. 5. The Department intends to conduct an inspection of the mast arm structures and strain poles every 60 months. The inspection report will document deficiencies that necessitate preventative maintenance and periodic maintenance. Preventative maintenance includes but is not limited to: spot painting or repainting; tightening of nuts and replacing missing or deficient bolts (not including anchor bolts); replacing missing cap covers or equivalent; cleaning; replacement of missing or deficient access hole cover plates; all wiring issues, including improper grounding; graffiti removal; all signal related issues (lighting, signs and connections); and response to traffic impact including repair and replacement of all components damaged by the traffic impact. Damaged mast arm replacement shall be repaired or replaced by the Maintaining Agency and the Maintaining Agency is authorized to seek reimbursement from the responsible 3rd party. If the Maintaining Agency is unable to recover the costs from a 3ru party, then the Department intends to reimburse the Maintaining Agency for repair or replacement of the mast arm. The Maintaining Agency shall be responsible for preventative maintenance of the mast arm structures. Failure to perform preventative maintenance after notification of inspection deficiency may result in the Maintaining Agency being responsible for the corrective actions. 6. Periodic maintenance includes but is not limited to: repair of cracks in the mast arm structure; removal and /or repair of grout pads; resetting of anchor bolts; repair or replacement of deteriorated anchor bolts and nuts; and replacement of the mast arm when it is determined through the inspection process that the mast arm has reached the end of its service life unless this is due to lack of STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT 750.010.22 TRAFFIC OPERATIONS 4/14 Page 2 of 6 preventative maintenance by the Maintaining Agency. For any new mast arm installations after the date of this Agreement, if a Maintaining Agency requests a painted mast arm, the Maintaining Agency agrees to perform all required periodic and preventative maintenance. Any periodic maintenance performed on the mast arm structure by the Maintaining Agency needs Department approval prior to commencement of work unless under an emergency situation. Any and all work performed by the Maintaining Agency shall conform to the current Department Standard Specifications for Road and Bridge Construction. The Table below summarizes the roles of the Maintaining Agency and the Department with regard to preventative and periodic maintenance: Maintaining Agency Florida DOT Preventative maintenance of all mast arm structures Periodic maintenance of all mast arm structures (except for any new painted and existing painted structures with signed separate Agreement) Periodic maintenance of structures (for any new painted and existing painted structures with signed separate Agreement) Damage repair or replacement of structures with recoverable costs May compensate Maintaining Agency for damage repair or replacement of structures when costs are non - recoverable Replacement at end of life cycle of the structure 7. The Maintaining Agency may remove any component of the installed equipment for repair; however, it shall not make any permanent modifications and /or equipment replacements unless the equipment provided is capable of performing at minimum the same functions. The Department shall not make any modifications and /or equipment replacements without prior written notice to and consultation with the Maintaining Agency. 8. The Maintaining Agency shall implement and maintain the timing and phasing of the traffic signals in accordance with the Department's timing and phasing plans, specifications, special provisions, and the Department's Traffic Engineering Manual. The Maintaining Agency shall obtain prior written approval from the Department for any modification in phasing of signals and flash times (where applicable). Signal Systems timings (cycle length, split, offsets, sequence) are considered operational changes and may be changed by the Maintaining Agency to accommodate. changing needs of traffic. The Maintaining Agency may make changes in the signal timing provided these changes are made under the direction of a qualified Professional Engineer registered in the State of Florida. The Maintaining Agency shall make available a copy of the timings to the Department upon request. The Department reserves the right to examine equipment, timing and phasing at any time and, after consultation with the Maintaining Agency, may specify modifications. If the Department specifies modification in timing and /or phasing, implementation of such modifications shall be coordinated with, or made by, the Maintaining Agency. 9. The Maintaining Agency shall note in the maintenance log any time /phasing changes and keep a copy of the timings and any approval documentation in a file. A copy of the log shall be provided to the Department upon request. Maintaining Agencies may provide this information electronically. 10. The Maintaining Agency and the Department will develop annually the Exhibit A which by this reference is made a part of this Agreement as though fully set forth herein. Exhibit A shall contain all Traffic Signals and Devices on the State Highway System, applicable to the jurisdiction of the Maintaining Entity, those that are maintained by the Maintaining Agency and those that are maintained but not included for compensation. No changes or modifications will be made to Exhibit A during the year for compensation. New Traffic Signals and Devices added by the Department during the fiscal year shall be maintained and operated by the Maintaining Agency upon Department final acceptance as stated in paragraph 1. The Maintaining Agency and the Department, preceding each fiscal year, shall develop and execute a new Exhibit A, which shall include all new Department Traffic Signals and Devices added during the previous fiscal year and delete those removed. The Maintaining Agency shall begin receiving compensation for new Department's Traffic Signals and Devices in the next fiscal year. In the event that no change has been made to the previous year's Exhibit A, a statement to this effect should be included. The annual compensation will be a lump sum payment detailed in Exhibit B. Future payments will be based on the information provided in Exhibit A, in accordance with the provisions as detailed in Exhibit B, attached and made a part hereof. a) Payment shall be made only after receipt and approval of service. b) Payment shall be made in accordance with Section 215.422, Florida Statutes. c) Bills for fees or other compensation for services or expenses shall be submitted in detail sufficient for a proper pre -audit and post -audit thereof. d) Record of costs incurred under terms of this Agreement shall be maintained and made available upon request to the Department at all times during the period of this Agreement and for three (3) years after final payment for the work pursuant to this Agreement is made. Copies of these documents and records shall be furnished to the Department upon request. Record of costs incurred include the Maintaining Agency's general accounting records, together with supporting documents and records of the Maintaining Agency and all subcontractors performing work, and all other records of the Maintaining Agency and subcontractors considered necessary by the Department for proper audit of costs. 11. Maintaining Agency providing goods and services to the Department should be aware of the following time frames. Upon receipt, the Department has five (5) working days to inspect and approve the goods and services, unless the Agreement specifies otherwise. The Department has twenty (20) days to deliver a request for payment (voucher) to the Department of Financial Services. STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT 750 - 010.22 TRAFFIC OPERATIONS 4/14 Page 3 of 6 The twenty (20) days are measured from the latter of the date the invoice is received or the goods or services are received, inspected and approved. 12. If a payment is not available within forty (40) days, a separate interest penalty at a rate as established pursuant to Section 215.422, Florida Statutes, shall be due and payable, in additional to the invoice amount, to the Maintaining Agency. Interest penalties of less than one (1) dollar shall not be enforced unless the Maintaining Agency requests payment. Invoices returned to a Maintaining Agency because of Maintaining Agency preparation errors shall result in a delay in the payment. The invoice payment requirements do not start until a properly completed invoice is provided to the Department. 13. A Vendor Ombudsman has been established within the Department of Financial Services. The duties of this individual include acting as an advocate for contractors /vendors who may be experiencing problems in obtaining timely payment(s) from a state agency. The Vendor Ombudsman may be contacted at (850) 413 -5516. 14. An entity or affiliate who has been placed on the discriminatory vendor list may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity. 15. A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, Florida Statutes, for CATEGORY TWO for a period of thirty -six (36) months from the date bf being placed on the convicted vendor list. 16. The Department shall consider the employment by any contractor of unauthorized aliens a violation of Section 274A(e) of the Immigration and Nationality Act. If the contractor knowingly employs unauthorized aliens, such violation shall be cause for unilateral cancellation of this Agreement. 17. The State of Florida's performance and obligation to pay under this Agreement is contingent upon an annual appropriation by the Legislature. In the event this Agreement is in excess of $25,000 and has a term for a period of more than one year, the provisions of Section 339.135(6)(a), Florida Statutes, are hereby incorporated: (a) The Department, during any fiscal year, shall not expend money, incur any liability, or enter into any contract which, by its terms, involves the expenditure of money in excess of the amounts budgeted as available for expenditure during such fiscal year. Any contract, verbal or written, made in violation of this subsection shall be null and void, and no money may be paid on such contract. The Department shall require a statement from the Comptroller of the Department that funds are available prior to entering into any such contract or other binding commitment of funds. Nothing herein contained shall prevent the making of contracts for periods exceeding one year, but any contract so made shall be executory only for the value of the services to be rendered or agreed to be paid for in succeeding fiscal years, and this paragraph shall be incorporated verbatim in all contracts of the Department which are for an amount in excess of $25,000 and which have a term for a period of more than one year. 18. The'Maintaining Agency may be subject to inspections of Traffic Signals and Devices by the Department. Such findings will be shared with the Maintaining Agency and shall be the basis of all decisions regarding payment reduction, reworking, Agreement termination, or renewal. If at any time the Maintaining Agency has not performed the maintenance responsibility on the locations specified in the Exhibit A, the Department shall have the option of (a) notifying the Maintaining Agency of the deficiency with a requirement that it be corrected within a specified time, otherwise the Department shall deduct payment for any deficient Traffic Signal(s) and Device(s) maintenance not corrected at the end of such time, or (b) take whatever action is deemed appropriate by the Department. Any suspension or termination of funds does not relieve any obligation of the Maintaining Agency under the terms and conditions of this Agreement. 19. The Department intends to monitor the performance of the Maintaining Agency in the fulfillment of the agreement. The Maintaining Agency is required to submit an annual Report on April 1 of each year detailing the following: a. Detection device malfunctions shall be repaired or restored within sixty (60) days of discovery and such events shall be logged into the annual report. If repairs cannot be performed within 60 days, the agency shall document the reasons why. Discovery of such events shall be logged into the annual report. b. All traffic signals shall receive at least one (1) minor preventative maintenance inspection, preferably two inspections, within a twelve (12) month period. At a minimum, minor preventative maintenance inspection includes verification that all detection is working, the signal is cycling properly, the ventilation system is functioning and filters are clean. The inspection report should note the location, date of inspection and any items noted. 20. The Maintaining Agency may enter into agreements with other parties pertaining to Traffic Signals and Devices including, but not limited to, agreements relating to costs and expenses incurred in connection with the operation of traffic signals and signal systems STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT 750-010-22 TRAFFIC OPERATIONS 4/14 Page 4et0 on the State Highway System, provided that such Agreements are consistent with the mutual covenants contained in this Agreement. The Maintaining Agency shall furnish a copy of such agreements to the Department. 21. This Agreement may not be assigned or transferred by the Maintaining Agency in whole or in part without consent of the Department. 22. The Maintaining Agency shall allow public access to all documents, papers, letters, or other material subject to provisions of Chapter 119, Florida Statutes, and made or received by the Maintaining Agency in conjunction with this Agreement. Failure by the Maintaining Agency to grant such public access shall be grounds for immediate unilateral cancellation of this Agreement by the Department. 23. This Agreement shall be govemed by and construed in accordance with the laws of the State of Florida. The invalidity or unenforceability of any portion of this Agreement shall not affect the remaining provisions and portions hereof. Any failure to enforce or election on the part of the Department to not enforce any provision of this Agreement shall not constitute a waiver of any rights of the Department to enforce its remedies hereunder or at law or in equity. • 24. This Agreement shall remain in force during the life of the original installed equipment and /or the life of any replacement equipment installed with the mutual consent of the parties hereto. 25. Upon execution, this Agreement cancels and supersedes any and all prior Traffic Signal Maintenance Agreement(s) between the parties, except specific separate Agreements covering painted mast arm maintenance. 26. This Agreement contains all the terms and conditions agreed upon by the parties. IN WITNESS WHEREOF, the parties have caused these presents to be executed, the day and year first above written. STATE OF FLORIDA DEPARTMENT OF City of Okeechobee , Florida TRANSPORTATION By (Maintaining Agency) By: (Authorized Signature) Print/Type Name: Dowling R. Watford Print/Type Name: Title: Mayor Pro - Tempore Title: Attest: Attest: Lane Gamiotea, City C1eieaI if Applicable) Reviewed: Attorney John R. Cook Date (Authorized Signature) Legal Review: EXHIBIT A TRAFFIC SIGNAL INTERSECTIONS AND INTERSECTION CONTROL BEACONS MAINTAINED AND OPERATED FOR FY 2014/2015 Effective Date: 7 /1/2014 To: 6/30/2015 Maintaining Agency: Okeechobee City . Intersection Locations Compensation (Yes or No) Traffic Signal (TS) Intersection Control Beacon (ICB) Emergency Fire /Dept (FDS) Pedestrian Flashing Beacon (PFB) Traffic Warning Beacon (TWB) speed Activated Warning Displays (SAWD) FDOT FY Unit Rate (refer to Exhibit B) % of State (Ex. 25, 33, 50,75,or 100) Total Amount (Unit Rate x Percent) SR 15 /US 98 SR 15 / WAL MART YES TS $2,951.00 (50 %—) $1,475.50 SR 15 /US 98 SR 70 / SR 700 / US 98 YES TS $2,951.00 100% $2,951.00 SR 70 /N PARK ST NW 5TH AVE °j YES TS $2,951.00 50% i $1,475.50 SR 70 /N PARK ST SE 3RD AVE YES i FDS $2,951.00 '50 o $368.88 SR 70 /N PARK ST SE 8TH AVE d YES TS $2,951.00 '500 $1,475.50 SR 70 /N PARK ST SE 10TH AVE (01 YES TS $2,951.00 67% $1,967.33 Total Lump Sum $ 9,713.71 I certify that the above traffic signals will be maintained and operated in accordance with the requirements of the Traffic Signal Maintenance and Compensation Agreement. For satisfactory completion of all services detailed in the Agreement for this time period, the Department will pay the Maintaining Agency a Total Lump Sum of 9,713.71 David Allen, Director Public Works Department EXHIBIT B STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT TRAFFIC SIGNAL MAINTENANCE AND COMPENSATION AGREEMENT 750 -01022 TRAFFIC OPERATIONS 4/14 Page 6 of 6 1.0 PURPOSE This exhibit defines the method and limits of compensation to be made to the Maintaining Agency for the services described in this Agreement and in Exhibit A and Method by which payments will be made. 2.0 COMPENSATION For the satisfactory completion of all services detailed in this Agreement and Exhibit A of this Agreement, the Department will pay the Maintaining Agency the Total Lump Sum in Exhibit A. The Maintaining Agency will receive one lump sum payment at the end of each fiscal year for satisfactory completion of service. Total Lump Sum Amount for each fiscal year is calculated by adding all of the individual intersection amounts. The individual intersection amounts are calculated by taking the FY Unit Rate times the percent of State Road Approaches to Total Approaches. Intersection Control Beacons are paid at 25% of the Unit Rate for full traffic signal. Pedestrian Flashing Beacon: includes school zone beacons, pedestrian crossing beacons and rectangular rapid flashing beacons (RRFB). School zones, crosswalks and warning sign locations shall be paid at a unit rate regardless of the number of individual beacons. Example 1: For a traffic signal intersection with 4 approaches with 2 approaches (50 %) being state roads, the intersection amount for FY 10 -11 will be: $2,622 x (2/4) = $1,311 Example 2: For an intersection control beacon with 3 approaches, with 2 approaches being state roads, the intersection amount for FY 11 -12 will be $675 x (2/3) = $450 Example 3: For a location with a school zone flashing beacon and two speed activated warning displays, the intersection amount for FY 14 -15 will be {($295 *1) + ($148 *2)} = $591 Unit Rates per 100% State Intersections Speed Intersection Pedestrian Emergency Activated Traffic Traffic Control Flashing Fire /Dept. Warning Warning Signals Beacon Beacon Signal Displays Beacon (TS) (ICB) (PFB) (FDS) (SAWD) (TWB) (0.25 *TS) (0.10 *TS) (0.25 *TS) (0.05 *TS) (0.05 *TS) FY 11 -12 $2,701 $675 12 -13 $2,782 $696 13 -14 $2,866 $716 14 -15 $2,951 $738 $295 $738 $148 $148 15 -16 $3,040 $760 $304 $760 $152 $152 16 -17 $3,131 $783 $313 $783 $157 $157 The Unit Rate for each fiscal year is 3% more than the Unit Rate for the previous fiscal year, unless otherwise specified in an amendment to this Agreement. 3.0 PAYMENT PROCESSING The Maintaining Agency shall invoice the Department yearly in a format acceptable to the Department. CITY OF OKEECHOBEE, P' IBLIC WORKS ' r s,!tiu Nome To: Jim Kirk, Mayor Devin Maxwell, Councilman Mike O'Connor, Councilman Dowling Watford, Councilman Clayton Williams, Councilman Brian Whitehall, City Administrator From: David Allen Date: 5/1/2014 Re: FDOT Traffic Signal Maintenance and Compensation Agreement changes f dilrtic Ad me iy zo144ge-u. � y/L I have reviewed the latest Traffic Signal Maintenance and Compensation Agreement that we received from FDOT and compared it with the previous agreement which we currently have with FDOT. In general, the changes proposed appear to be "housekeeping" type changes rather than a significant departure from previous policies. In summary, the proposed changes are: • Funding Levels The funding levels proposed by FDOT have increased by approximately 3% over the FY 13 -14 level. • Traffic Signals Funded FDOT added funding four additional signal types under the proposed agreement. The city currently maintains one of the four new types, an Emergency Fire Department (FDS) signal located at the intersection of SR 70 and East 3`d Avenue. The funding increase to the City for the addition of this signal is $368.88 • Traffic Signal structures The maintenance detail of the traffic signal structure, i.e. mast arms and strain poles was not specifically covered in the previous agreement. The new agreement has added clarification as to the maintenance responsibilities by the City and FDOT, Specifically: o The City Preventative maintenance of the signal structure to include spot painting or repainting; tightening nuts and replacing missing or deficient bolts (not including anchor bolts); replacing missing cap covers or equivalents; cleaning; replacement of missing or deficient access hole cover plates; all wiring issues, including improper grounding; graffiti removal; all signal related issues (lighting, signs and connections); and response to traffic impact including repair and replacement of all components damaged by the traffic impact. Damaged mast arm replacement shall be repaired or replaced by the maintaining agency and the maintaining agency is authorized to seek reimbursement from the responsible 3`d party. If the maintaining agency is unable to recover the costs from a 3rd party, then the Department intends to reimburse the maintaining agency for the cost of the repair or replacement of the mast arm. P/ o FDOT Periodic Maintenance including repair of cracks in the mast arm structure; removal or repair of grout pads; resetting of anchor bolts; repair or replacement of deteriorated anchor bolts and nuts; and replacement of the mast arm structure when it is determined through the inspection process that the mast arm has reached the end of its service life unless this is due to lack of preventative maintenance by the City. FDOT will conduct an inspection of all mast arm and strain pole structures every 60 months. The inspection report will document deficiencies that necessitate preventative maintenance and period maintenance. • Restoration of services. The use of temporary poles, stop signs, or other methods to maintain traffic is specifically added under the new agreement. • Monitoring An additional paragraph has been added to the agreement requiring the City to submit an annual report each year on April 1 detailing the maintenance performed by the City. 2014 TUNE SUNDAY OD MONDAY TUESDAY WEDNESDAY i THURSDAY FRIDAY SATURDAY T1; CO ›., CZ 2 3 CCMtg6pm (Recommend Cancelling) 4 5 6 .7 8 9 10 CEB Mtg 6:30 1 pm 11 12 13 14 Flag Day 15 Fathers Day 16 17 CC Mtg 6 pm 18 19 TRC 10 am PB /BOA 6 pm 20 21 j Summer Begins':, e 0O- 0 22 23 24 25 26 27 28 29 30 Summer Meetinj Schedule: Recommend cancelling the first meetings of each month being: June 3rd July is; and August 4th w ww.free- printable- calendar.net free-printable-calendar.net 2014 JULY SUNDAY MONDAY . TUESDAY : WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 , CC Mtg 6 pm 1 (Recommend 1 Cancelling) 3 4 Independence Day ,Or,i1V,W, ..:( W Ok. - AR i allf ZL , 5 I: 6 1 7 8 I CEB Mtg 6:30 pm 9 10 11 12 13 , , 14 1 15 16 ;cc Mtg 6 pm I 1 , 1 17 TRC Mtg 10 am PB/BOA 6 pm 18 19 120 21 11 22 11 23 24 25 26 27 28 . 129 , . 30 31 free-printable-calendar.net 2014 AUGUST SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 3 4 5 Pension 5 pm CC Mtg 6 pm (Recommend Cancelling) 7 9 10 11 12 CEB Mtg 6:30 pm 13 14 15 16 17 18 School Begins / ® �\� 19 CC Mtg 6 pm (Possible Budget Workshop) 20 21 TRC Mtg 10 am PB /BOA 6 pm . 22 23 24 25 26 27 28 29 30 31 \v\vw .free - printable- calendar.net The U'ates! from the City Administrator's Desk 55 SE 3rd Av., Okeechobee, FL 34974 City Council meeting of May 6, 2014 - 6:00 PM • Former Police Officer Larry Parzygnat filed a grievance for his employment termination, which was on 12/4/13. On 3/13/14, the Grievance Committee findings upheld the termination. As per Ch 7 of the Pers Code, Mr. Parzygnat is now appealing the Committee findings to the Council and it's on the Agenda. You have been supplied with a binder that contains the pertinent information. • 441/70 intersection proiect — Crosswalks — For the 3rd meeting in a row we will be discussing this matter and as you recall, the Council directed staff to investigate the future costs associated with the proposed crosswalk installation prior to taking it up again. For this Agenda item, enclosed in the packet, please find a memo from DPWks Allen describing costs /analysis and references. Attached is a letter from FDOT responding to Mayor Kirk's 4/7/14 letter. I wrote the following email to FDOT's Chris Smith, Secty Hattaway's rep: I want to follow up on your 4/18/14 letter, on behalf of Mayor Kirk, wherein you indicated that the City would be required to commit to contribute an additional $38,096.54 on or before October 31, 2014 in order for the crosswalk installation at the subject intersection to be included therein. I think I advised that the City Council reevaluated the crosswalk installation at the last Council meeting. However, there was not a consensus to approve the proposition until after staff would be able to identify all peripheral costs associated with the commitment, such as estimated testing and maintenance costs. Since that time, staff has determined that all testing mentioned in the Maintenance, Agreement, would not be paid for by the City. As mentioned in the contractual arrangement, the City would incur some incidental costs associated with traffic control. We continue to investigate the expected costs to maintain the crosswalk surface and have discovered that we can expect a 10 -year life of the friction -based surface. After that time the City would be faced with a choice of reapplying a friction coat at an estimated $90 /sq yd or complete replacement which w/ FDOT's bid is $160/sq yd and would necessitate milling out the old material (est of approx $40 /sq yd at 2 " -3 "). Clearwater, Pt St Lucie, Lakeland and Melbourne are some of the Florida cities our Public Works Director has contacted to determine durability /replacement costs. Having elaborated on our progress so far, there still remains the matter of City Council approval for unbudgeted, unauthorized staff expenditures and that will be on the agenda for next Tuesday's City Council meeting. I appreciate your continued patience! Note: Original escrow - $72,112; bid opened cost - $110,208.54; increased escrow - $38,096.54 Page 1 5/6/14 Activity Rpt Cont'd (Cross walk project dialog) • 441/70 intersection project — Mast arm agreement — I've been told that the City simply needs to reduce to written form our approval for FDOT to paint the mast arms originally expected to be paid for by the City at a cost of $24,000 ($6200 @). I've had some dialog on the color code and DPWks Allen tried to match the black decorative downtown lamp color as well as possible. FDOT indicated that they would approach the City immediately prior to mast arm installation to confirm the color again. I've added the matter to the Agenda for formality and expect the text to simply read: In reference to the mast arm structures in the above - mentioned project, it is the City's understanding the Department will cover the cost of painting the mast arm structures. The City of Okeechobee agrees to maintain the painted mast arm structures for the FPID: 425846 -1, SR70/US441 project after the initial application. • FDOT Traffic Signal maint/reimbursement Agreemnt Resolution on Agenda - you'll notice the City now receives reimbursement for the Fire Dept signal at E 3rd Av. As of Friday, I'm waiting on a return call from FDOT on some calculation clarification. In addition, the Agreemn't clarifies that mast arm maint is the responsibility of the local jurisdiction. From what I can gather, that policy is simply clarifying past practice. DPWks Allen supplied a memo regarding the Agreement and it's attached. • Surplus equipment sold at auction Sat., 4/26/14: ►1988 1/2-ton GMC pickup w/ a protected price of $350 (est scrap value) Rec'd $1200 ►1990 F 350 dump truck protected at $600 (est scrap value) Rec'd $2400 ►5' bucket that doesn't fit any of our current equipment Rec'd $150 There's a 10% commission and $50 in title transfers making the total proceeds $3,350. • 2014 legislative appropriation requests — I reported earlier about the legislative financial requests as follows: 1. Complete the Storm water retrofit...conveyance (canal demuck) at an est cost of $254, 444 2. Commence bank improvements at the Taylor Creek Park area. The bank has eroded and will result in stabilization of same - $195,556 I'II spare you the back and forth efforts from Tallahassee and advise that as of this Friday, it appears that the funding will end up being $100k +/- assuming there's no last minute legislative changes (State budget page #238, line item #1668A). I reported in a 4/23/14 email that the House had budgeted up to $400k, but unfortunately, the Senate appropriation of $100k came to fruition. Dale Milita indicated that OUA and the County were cut by similar numbers. The session is scheduled to end Friday. Page 2 5/6/14 Activity Rpt Conks,,,. • Investigate City Courthouse (Judicial Ctr) security — I was recently asked by the county Admin as to whether the City would have an interest in assuming the Ct House security, if /when the Sheriff's Office decided to drop the responsibility and I wrote the following: Some time ago (This was last year) I had a staff conference w/ Chief Davis and Major Peterson. We briefly analyzed the proposition with the information available and our instinct was, while it might be feasible, not to get into a controversial position wherein the Sheriff would feel undermined by the City's intrusion and it's my understanding that Major Peterson conveyed that to you. I've read the recent dialog in the paper and see the County is at a point where you really don't have much of a choice but to investigate all the possibilities...at least it appears that way. Having said all that, I think we would at least entertain analyzing a bit more info, but if it's all the same to you, I'd like to see what the Sheriff's approach is. I hope you get my drift that I don't want to put the City in a position to antagonize the Sheriff, or for that matter, the Commissioners. It's the Admin's intention to at least investigate alternatives which incl the City of an outside agency. I know the matter is complicated and one of my biggest concern would be that the City's budget to cover the applicable expenses would be subject to the County's budgeting process. • Parking lot downtown — As you are aware, the City continues to experience a bit of an overcrowded parking issue downtown. On the one hand, it's good to see the activity, but it's certainly creating a cumbersome issue. I'd like to investigate the acquisition of the empty 50 X 142.5 lot at the intersection of SW Park & SW 4th Av (where the Christmas trees were sold). I know it's not a solution to a bigger parking problem but it could be a piece to the puzzle and the lot now serves as nothing more than a cavity on our downtown store front area. City Atty: • FDOT / Hamrick litigation — The Mar 27 meeting wherein, Atty Cook and I were to meet w/ our Atty Weaver and reps from the Hamricks and FDOT at City Hall to discuss the litigation was cancelled and hasn't been rescheduled. • Barbara Mills, 406 NW 5th St, nuisance property resolution — At the Mar 18th meeting the Council voted to proceed w/ foreclosure on about $20k in fines after Atty Cook was unable to secure a Judgment in order to gain access to the property to abate the weed nuisance. City Clerk: • Summer Schedule - Clerk Gamiotea consulted w/ all staff to determine a potential 'summer schedule' wherein the first regular meetings for the months of Jun, Jul & Aug are cancelled and it's on the agenda. • Centennial celebration — Clerk Gamiotea has developed a Resolution (enclosed in the packet) to form an Ad Hoc Committee for you to review. As you know, July 15, 2015 marks the City's 100 -year anniversary. Page 3 5/6/14 Activity Rpt Con Finance: • F/Y /E 9/30/13 Audit/Financial report is on the Agenda to be presented by Debbi Goode, Carr, Riggs & Ingram. • Business Tax Receipt (BTR) fee change — we anticipate a proposal for the next meeting (Ord 1st rdg) where the BTR fee would be increased 5 %, the amount that has always been provided for by statute. We briefly discussed this at the 2013 (for 2014) budget hearing and, if adopted, the fees would be applicable for the renewals for f /y /e 2015, due 9/30/14. By the way, notices are normally mailed out in July to the businesses. In the mean time, Atty Cook advised that the City should meet a publication requirement for the 1st rdg of the proposed Ord #1111 to be taken up at the May 20th meeting...so you will see that in the paper prior to your deliberation. Fire: • Fire Dept bathroom remodel — As mentioned prior hereto, the Fire Dept was successful in obtaining a grant from the Charmin company for a year's supply of tissue and then a bathroom remodel...they've started the remodel program General Services / Planning Board: • Building permit fee revenue — has increase approx $8973 for the first 6 months vs prior rate structure based on about $1,039,000 in building permitted value /cost. • Air conditioner in Dep Clk's office replacement — Unfortunately, we have found that the A/C needs to be replaced. The air handler is above Dep Clk Jahner's desk and the condenser is outside the B/O window. We expect the cost to be $5k or Tess and are sending out requests for quotes from all local vendors. • Budgeted for lounge remodel — we expect to eventually get to the budgeted remodel of the City Hall lounge. Also, the Gen Sery & Cty Clk area was budgeted for a remodel this year. Public Works: • Canals demucking grant funded ($250k) project — SE Storm water conveyance (canal demucking) has been underway for a few weeks. The west leg, that area south of SE 7th St, approx 1,375 If, has been completed. We rec'd an invoice for $58,750, but am seeking a bit more clarification on the invoice... requirements from DEP to receive grant reimbursement. If there's anything interesting I'll attach /send to you when rec'd. Note: Notice to proceed was on December 16 and they executed it on Dec 18. TSI has until Sep 16, 2014 to complete the project. Page 4 5/6/14 Activity Rpt Con Public Works) • 441 median landscaping — At the last meeting the Council awarded the bid to Tree Locators (TL) at a bid price of $72,987.60, the lowest of 3 bids. I advised that the original grant contract called for a completion deadline of 6/30/14 but FDOT has extended the deadline to 7/30/14. We met with TL in a precon meeting on 4/22/14 but have had some delay getting the appropriate insurance and performance bond info from them. I'm glad we rec'd the extension but we informed TL that the absolute deadline is June 20...they indicated 30 -45 days of construction is probably adequate. • City grounds maint contract — It was mentioned at the last meeting and this is to advise that the City renewed our year -to -year contract w/ Quality Lawn Care at the same annual rate of $18,759 thru 3/31/15. I spoke to owner, Roberto Casas and advised about the 441 Landscape project and that we would have to work around same and perhaps re- evaluate the contract upon completion of that project. • Sidewalk project — Vest Construction started the project along SE 2nd Av into SE 7t St. • City median landscaping — Nothing to report except spoke to Mark Goodbread again last week and they are finally excavating trees. As I may have mentioned to you before, both Mark and Brad indicated it's better to set the trees aside for a week or two before replanting them vs immediate transplant. Page 5 End.... To: Brian Whitehall, City Administrator Mayor and City Council Members From: David Allen, Public Works Director Date: 5/1/2014 Re: Public Works Activity Report Per the norm, the last few months have been very busy for the Public Works Department. In addition to the ongoing activities, mowing, general maintenance, BTR applications and other issues, the following projects have been completed. ® Street Issues. The public works department has addressed several road hole issues in the last few months including issues at NW 6th St at ;. ---«. 2nd Ave, The 100 block of SE 4th OOP� Street, and SW 2nd Ave at 8th St. The holes are typically caused by either the failure of a culvert in the road or joint issues in an existing storm drain. As water slowly infiltrates through the faulty joint or culvert, small amounts of sand or other material are washed into the pipe. Over a period of time, the amount of material that is washed away results in a cavity under the pavement which then results in a small cave -in in the road structure. The repair of the problem entails cutting the existing asphalt, determining the cause of the hole, repairing the fault, filling and compacting the street and then patching the repair with new asphalt. The issues in South 4th Street and SE 2nd Avenue at 8th Street are of particular concern. In the case of South 4th Street, a reinforced concrete storm sewer runs from Taylor Creak to the west in 4th Street. The pipe is old, however the structure of the pipe appears to be good but the many of the joints appear to be to be having seeping issues. Ultimately the pipe will have to be rehabilitated or replaced. At SE 2nd Avenue and 8th St, the catch basin structure on the SW corner of the intersection has settled significantly. The structure will have to be removed and replaced and the lines running into the structure will have to be reset. Damaged culvert discovered after removing asphalt Replacing culvert Area where drain structure has settled causing joint problems in surrounding drain pipes both to the east and west of structure SW 2nd Ave at 8th St Street Repair and Maintenance Public Works completed two grading /milling project, One on SW 10th street and another in an alley behind SW South Park Street. The SW 10th Street project alleviated a longstanding maintenance issue. Previous to installing the millings PW had been frequently called to fill potholes in the stree ,}� �,.:,. �: � �nr _� j `��''�ll,'�llll��lll�llf� Signal light LED upgrade Public Works completed an signal light upgrade to all the traffic signals at SW 5th Avenue and 6th St adjacent to Central Elementary School. The signal lamps for all the signal fixtures at the intersection were upgraded from Incandescent to LED fixtures. The LED fixtures offer several advantages including lower electrical consumption, increased life, and brighter light output. The upgrade of this intersection was selected to pilot the upgrade of the other signals in the city in the future. Because of traffic issues, the remaining signals will need to be completed at nigh LED vs Incandescent signal light fixture SW South Park Street Pressure Washing beds on each biock and re-planting of the beds. The plant Pressure washing of the sidewalks and decorative pavers has been completed along SW South Park street. In the immediate future, the pavers on the side streets on SW South Park Street will also be cleaned. Other scheduled improvements include repair of the sprinkler systems in the fiower selection for the beds will be consistent with the landscaping to be installed on SE US441 and visibility triangle considerations. Pressure Washing Other PW related activities work done with photos and other research. Two additional p jects managed by PW are also currently in progresS, Canal cleaning ancl the sidewalk program. In addition to the bid preparation for the sidewalk program, a significant amount of time was spent by the Public Works Director documenting hurricane damage repair irom previous storms. Although the storrns were several years ago, the City was audited by FEMA thus requiring the effort to document the FY2014 Sidewalk Project t11,I1V1JLL Friday, May J, 2014 iY?d'A33€�1}°se&u"Mld3¢: Pe 'il'di v "v a r, E"f Y°f ^Amo ,'. is:.: ^."<tS' 'e `.R - "tiY:F.T.i&?n �R 7fr" aR )ut Future of county jail By Katrina Elsken Okeechobee News The future of the county jail is still uncertain following Thursday's meeting of the Okeecho- bee County Board of County Commissioners. At the meeting, county administrator Rob- bie Chartier asked the board for direction re- garding the jail and courthouse security. At the last meeting, Sheriff Paul May an- n nced that he would be resigning as chief correctional officer effective Sept. 30, 2014, as well as discontinuing to provide courthouse security. "While administration regrets his decision, with only 5 months remaining, a number of de- cisions need to be made," said Mrs. Chartier. The options available to the county in- clude: • Hire an experienced jail administrator and retain/transfer, where appropriate, exist- Okeechobee News /Charles Murphy Mayor Pro-Tem Dowling Watford hands a proclamation for May as Teenage Preg- nancy Prevention Month to Rosalind Brown of the Okeechobee Teen Pregnancy Prevention Task Force. City upholds police officer's firing By Charles ) . Murphy fatal crash scene that involved an Okeechobee Y deputy to a West Palm Beach television sta- tion. News tion. City attorney John Cook said the appeal was not designed to be a retrial of the griev- ance hearing Mr. Parzygnat attended in March. The council was asked to confirm whether the See CITY Page 5 1 ing sis, me pr( do ate The Okeechobee City Council voted, 4 -0, to uphold the termination of former Okeechobee City Police Department officer Larry Parzygnat after a hearing at City Hall Tuesday night. Mr. Parzygnat was reportedly fired for lying to a superior officer after he sent photos of a B 0 le lc re p 1loslclaw.con1 ay 9, 2014 Okeechobee News CITY Continued From Page 1 city employee grievance committee had the grounds to uphold the termination notice from Police Chief Denny Davis. Chief Davis offered no additional testimony or argument Tuesday. Mr, Parzygnat offered an emotional plea to the council in an attempt to save his job, "I know I made a mistake by sending the photos. My reputation at the department has always been good. I had no ill intentions," he stated. Mr. Parzygnat said he had dedicated his life and career to Okeechobee and simply Panted another chance to atone for his mis- take. "I love the City of Okeechobee. I loved my job here," he said. "I ,just want my job back so I can do it well. If I could take back ne moment in my life, it would be that mo- t. JAIL Continued From Page 1 Titre en r,n+ Attorney D.E. King who represented Mr. Parzygnat said the city violated his rights be- cause the officer did not get an opportunity to be heard and defend himself before he was terminated. He argued the city policy was unreasonable. "I wonder if my client knew there was zero tolerance in the city," he said. "There was no due process. He admitted it so there was some evidence. My question is are these policies equally served to all employees and was the discipline reasonable and appropri- ate." Mr. King said officers can learn from mis- takes that are done in his head but not ones that are done with their heart, "He wasn't trying to hurt anybody or get one over on the agency," he said. "He asked for help and we request something less than termination." Councilman Dowling Watford said he ap- preciated the service of Mr. Parzygnat. Mr. Watford said he is a history buff and he en- joyed the work Mr. Parzygnat did to gather together old police chief and police depart- ment photos and other projects he tackled. "I think it's going to be an unmitigated di- saster," said Commissioner Bryant Culpep- per. He said the sheriff has maintained he cannot safely run the jail on the money bud- "This is an extremely difficult decision. Your attorney makes valid points. The city is a family and discipline of family members is unpleasant," he said. City Councilman Clayton Williams said he was disappointed by the level of maturity Mr. Parzygnat showed at the age of 48 and offered this advice. "Truth is always the best answer that one can give," he said. Mr. Watford gave Mr. Parzygnat an op- portunity to resign before the final vote was taken. In other business, the city council voted, 3 -1, to move ahead with crosswalks in the downtown area that are part of the main in- tersection widening project due to begin this summer. They approved an additional payment of $38,096 in the 2014 -2015 fiscal year budgets to fund the project. City Councilman Devin Maxwell said the city has budgeted money for the project and he supported spending the extra money. The city had objected to the procedure used in the Florida Department of Transportation Project as the bid came in much higher than expected at $110,208. At first the state hinted they would fund improvements that benefitted the down- town business district like these 14 cross- walks, mast arms for the red lights and other improvements. They later pushed much of the cost onto the city. PILLS Continued From Page 1 S.W. 17th St., Okeechobee, was arrested Tuesday, May 6, on one felony count of grand theft. She was booked into the Okeechobee County Jail on a bond of $2,500. Jail records indicate she has been released on bond. Sparks is accused of stealing about 300 hydrocodone pills that have a value of ap- proximately $1 each. An arrest report by Sergeant P.C. Eddings, of the Okeechobee City Police Department (OCPD), stated he was told by a loss pre- vention officer for the pharmacy that a pre- scription drug monitoring report showed discrepancies when scripts of the pain killer were being filled. Sgt. Eddings pointed out in his report that as Sparks would fill a prescription for hydro - codone she would keep one pill in her hand then put it in her pocket later. She apparently wnnlrl Ars thic twn tr. thror> tir , r+.1. STEWARD STATEMENT December 2005 1E The Loudermill Right: One of an Employee's Most Important Rights More than 20 years ago, the United States Supreme Court issued a hugely important ruling to public sector employees. It stated that non - probationary public employees, who are facing discipline, are entitled to certain due process rights. This case became known as the "Loudermill Right" and provides constitutional protection, even if an employees' contract does not mention this representational right. Loudermill mandates that public employees are entitled to an oral or written notice of charges or allegations made against them and that an explanation be given outlining the employer's evidence. Besides the notification of those issues, it is primarily an opportunity for the employee (member) to meet with the employer's representative (or appointing authority) to offer its version of the circumstances prior to the employer making a final decision. At this time, the employer may consider on what level, if any, disciplinary action will be taken. Employees are given a choice of in- person presentation or the option to write a statement. The formal letter advising the employee that discipline is being considered, and offering the opportunity for the employee to discuss or present his or her version and mitigating evidence, may be the first time the employee is even aware that certain allegations have arisen or that an investigation has been concluded. The letter usually states that the employee may contact his union representative. The governing contract language may also state that the union representative will receive a copy of the letter. Stewards should counsel any employee who approaches them with a question about such a letter to immediately contact the union representative. Within the Loudermill decision, are elements that reinforce how important it is for employees to have notice, disclosure and the opportunity to defend themselves against charges in which the employer may decide to use severe disciplinary sanctions, including the loss of employment. The Loudermill Right is based on these five components: 1. Property Right — Non - probationary public servants are considered to have a property right to their employment and can only be terminated for cause, a standard also applying to other levels of discipline, but not to reprimands. 2. Due Process — If one's employment is a property right, the employee must have proper notice and an opportunity for a hearing, before he or she is deprived of any significant property right. 3. Employee's Case — There are limits to the employee presentation during a Loudermill hearing. The meeting usually involves a manager from the human resources department and one at the highest program administrator level. The employee does not have an opportunity to cross - examine other people involved, or who may have given a witness statement in the investigation. Prior to the hearing, the employee needs to prepare their case presentation with the union staff. This will include decisions about the role each will play. The statements and information are important to emphasize as mitigating information. 4. Before Final Decision — Following the common understanding of due process, the hearing, or written explanation from the member must occur prior to the final decision on discipline (termination, suspension or demotion). Even if the original letter cites termination as the contemplated decision, the hearing is a unique and extremely important opportunity to present all rationale for the employer to dismiss, an erroneously - based investigation and therefore, its contemplated discipline. Or, at the least, the employee may provide such explanation that will cause the original sanction to be reduced. 5. Hearing Check Against Mistakes — The Louderm i l l "hearing" sounds like more of a formal process than it usually is. The courts use this hearing to fulfill due process rights. The goal of the meeting is to verify truth of the allegations, and whether or not the anticipated level of discipline can be substantiated and then justified. Remember, the member needs to contact his or her union representative if he or she receives a disciplinary letter, and work closely with union staff to craft both explanation and defense. More information about this can be found in the Local 17 Steward Resource Guide. —By Kathy Cunningham, Local 17 Union Representative please post and distribute at your workplace