HomeMy WebLinkAbout02-28-2011 Regular MeetingPublic Meeting Notice
Committee: Fairhope Financial Advisory Committee
Date & Time: Monday, February 28, 2011 at 4:45 p.m.
Place: Council Chambers
161 North Section Street
Subject: See Posted Agenda
Notice must be stamped, dated and initialed before posted on
bulletin board.
POSTED
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SIGNATURE
City of Fairhope Financial Advisory Committee
Agenda -Monday, February 28, 2011
4:45 p.m. in the Delchamps Room
City Hall-161 N. Section St., Fairhope, AL
1. Approval of Minutes for January 24 , 2011.
2. Review of cost reduction projects , as follow-up from May 17 , 2010 City Council
Workshop .
3. Discussion -use of NG to power city vehicles.
4. Discussion -short term & long term capital projects .
5. Request -Approval to apply for a National Estuary Program grant.
6. Request -Approval to purchase street sweeper.
7. Information from Recreation Board.
8. Discussion -Strategic Plan (Stan Grubin).
Schedule Of Future Meetings
(Note: Regular meetings are on the 4th Monday of each month at 4:45 p.m. in the
Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.)
• Next regular meeting: Monday , March 28 , 20 11
STATE OF ALABAMA )(
COUNTY OF BALDWIN )(
The Financial Advisory Committee met at 4:45 p.m .,
City Hall , Delchamps Room, 161 North Section Street,
Fairhope , Alabama 36532 , on Monday, 28 February 2011.
Present were:
Chuck Zunk, Chairman
Members: Stan Grubin , Mac Mccawley, Marvin Wilder , and John Brown ,
Ex -Officio Members: Debbie Quinn , Dan Stankoski , Lonnie Mi x on , Mike Ford , and
Rick Kingrea.
Mayor Kant was absent.
Chuck Zunk called the meeting to order at 4:45 p.m. He announced that the first item
is to approve the minutes from the January 24 , 2011 Financial Adv isory Committee
meeting. Marvin Wilder moved to approve the minutes from the January 24 , 2011
Fairhope Financial Advisory Committee meeting . Seconded by Stan Grubin, motion
passed unanimously by voice vote.
The next item on the agenda was the review of cost reduction projects , as follow-up
from May 17, 2010 City Council Work Session . City Administrator Gregg Mims stated
the only item as this time is an update on the Custodial Services bid and the City would
like to recommend rejecting all bids because our custodial costs were lo w est. We want to
keep our employees and look for future ways to lower costs. Stan Grubin moved to
recommend to the City Council to reject all bids for Custodial Services and look for
additional money savings for the future. Seconded by Mac McCawley, motion passed
unanimously by voice vote.
The discussion for using CNG to power City vehicles was the next item to be
discussed. Mr. Zunk stated the City has its own natural gas and the cost is lower than
regular fuel , but in order to do switch over would be a capital purchase. Mr. Zunk
proposed and appointed a study group to in vestigate the numbers: Marvin Wilder, Mac
Mccawley, Steve Seay, Ron Heveran, and Jim Homer. Steve Seay, Gas Superintendent,
explained the City looked at doing this in the early 80s , but technology was not there.
The biggest hurdle will be the cost.
Item number 4 is the discussion of short-term and long-term capital projects . Mr.
Zunk commented that Mayor Kant would like a little more time to work on this capital
projects list, so we will defer for a couple weeks .
Financial Advisory Committee
Monday, 28 February 2011
Page-2-
The request for approval to apply for a National Estuary Program grant was next on
the agenda. Jennifer Fidler, Public Works Director, explained the 50/50 grant and the
funding would be used for the Volanta Watershed system. We would apply for the grant
and spending would be in the next budget cycle. The application deadline is March 11,
2011 . After further discussion , Lonnie Mixon moved to approve the grant application for
the National Estuary Program grant. Seconded by Mac McCawley, motion passed
unanimously by voice vote.
Mr. Zunk mentioned they needed to add on to the agenda an item for the discussion
of a contract between the City of Fairhope and PRA Government Services, LLC d/b/a
RDS Discovery/Recovery. John Brown moved to add the above mentioned item to the
agenda. Seconded by Lonnie Mixon, motion passed unanimously by voice vote.
Yolanda Watkins with RDS addressed the Financial Advisory Committee regarding
the contract and briefly explained what services would be done by RDS for the City of
Fairhope. Ms. Watkins explained that normally they receive 50% for their services, but
had previously agreed to give the City of Fairhope a reduced rate of 40 % on Business
License Revenue Discovery and Recovery. After further discussion, Rick Kingrea
moved to recommend to the City Council to approve the contract subject to legal review .
Seconded by Mac Mccawley, motion passed unanimously by voice vote.
The request for approval to purchase a street sweeper was the next agenda item to be
discussed . Jennifer Fidler mentioned that the useful life of our street sweeper is close to
the end. The cost for a new street sweeper is approximately $145 ,000 to $155 ,000. Stan
Grubin stated that this sweeper was dropped out of the budget and should have been left
in. Lonnie Mixon moved to recommend to Council the purchase of the street sweeper
contingent upon finding funds . The motion was seconded by Council Stankoski.
Nancy Wilson, City Treasurer, said when we first realized the sweeper was left out of the
budget, we looked for options for funding. One option is to take $150 ,000 from the
General Fund. This is not budgeted and Ms. Fidler would need to take the funding away
from another item. Rick Kingrea questioned where the funds are in the General Fund;
and we will not use reserves. Gregg Mims agreed with Ms . Wilson and said if we use
$150 ,000 from the General Fund, Ms. Fidler would have to take away funds from another
item.
Mr. Zunk commented that the $1.1 million asphalt paving streets plan has not been
submitted. The $150 ,000 for the street sweeper to reduce the $ 1. 1 million is an option.
Mr. Zunk asked how can we allow the funding to come out of this project when a plan
has not been submitted. The budget was passed in October, but still no plan.
Financial Advisory Committee
Monday, 28 February 2011
Page-3-
Dan Stankoski stated the budget has been passed and no plan yet. Mr. Stankoski
questioned refurbishing the one we have right now. Arthur Bosarge, Assistant Public
Works Director, replied our sweeper broke down last year and repaired twice. After
further discussion, Lonnie Mixon moved to table until next month's agenda. Seconded
by Mac Mccawley, motion passed unanimously by voice vote .
The next item to be discussed was the Information from Recreation Board. Vann
Saltz, Chairman of the Fairhope Recreation Board, stated the Board was working on its 5-
year plan. The newly acquired land on Manley Road and its development will be part of
the 5-year plan .
Mr. Zunk stated if there were no objections the discussion of the Strategic Plan by
Stan Grubin would be deferred to the next meeting .
Dan Stankoski moved to adjourn the meeting. Seconded by Marvin Wilder, motion
passed unanimously by voice vote .
There being no further business to come before the Financial Advisory Committee,
the meeting was duly adjourned at 5:27 p .m.
Chuck Zunk, Chairma
Location
Quail Creek, City Hall, Public Works
James P. Nix Center
Recreation/Community Center
FICA/Medicare
Worker's Comp Insurance
Public Works Recommendation:
Custodial Costs
for
City of Fairhope Buildings
City Labor/ Vendor A Vendor B
Supply Cost Jani King 360 Clean
48,560.25 55,126.00 78048
9,324 .00 14 ,56 8.00 18600
28,841.28 31,716.00 99768
5,235.44
5,360.61
$97,321.58 $101,410.00 $196,416.00
Keep the services as they are, without a cost of living increase for FY 2012
We wo uld like to work with the employee schedules to keep costs lower
* Price also includes a full time employee, who had been re-assigned this lighter job task
Vendor C
Serv Master Clean
90180
44796
No Bid
$134,976.00
f1~1iliic \I: i,'1111111. -I(.\\ c'
Memorandum
To : Financial AdYisory Board. C it y Counci l
,,,
From: Public Works ' .✓:.--r✓'
/ I
Date : February 28, 2011
Re : Mobile Bay Nat ion a l Estuary Pro gram
We have recei ved notice that there is funding opportunities for implementation of
projects related to management of s torm water, wetlands and sediment transport
from the Mobile Bay National Estuary Program. The grant ranges between
$22,500 and $75,000 and requires a 1: l match.
Public Works is requesting funding to study the watershed a t the Volanta Gulley
System in the FY 2012 budget cycle. The Volanta water system was the site of an
emergency hi ghway project in 2005 (when the highway washed away). In this
same s torm, Patl ynn Street had up to 18 inches of water over the road .
Public Works is requesting to s tudy the watershed area and develop plans for
areas w hich m ay act as detention for the watershed .
Public Works is request ing an esti mated S45-55,000 a llotment which could cover
engineering costs for the watershed and construction material costs. Public
Works would pro v ide labor to implement the project.
l\rl·rnly L;rl'~':.! \\:l:'-.
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Rkk Kingrt'd
Daniel It Srank,1,f-i. C . .\l.c'
Memorandum
To: Financial Ad\'iso ry Committee
From: Public Wor~
Date : February 28, 2011
Re ; Requested Sweeper
Requested sweeper is a three wheel mechanical sweeper. This sweeper will
replace our 1983 model three wheel broom sweeper that is no longer in use ,
because of disrepair. Without the use of this older sweeper, we do not have a
b ac kup sweeper when the second swee per (a 2003 vacuum type model) is in need
of repair. The second sweeper is in constant use, running almost continually
throughout the year. It has 8,533 hours . Usefu l life on a sweeper of this type is
seven to fifteen years or 7 ,000 hours .
The estimates we have received range between $145 ,0 00 and $155 ,000.
RESOLUTION NO. ---
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF
FAIRHOPE, ALABAMA, that Mayor Timothy M. Kant is hereby authorized to execute
a Tax Revenue Enhancement Agreement between PRA Government Services, LLC d/b /a
RDS and the City of Fairhope for Business License Discovery/Recovery.
DULY ADOPTED THIS 28TH DAY OF FEBRUARY, 2011
Timothy M. Kant, Mayor
Attest:
Lisa A. Hanks , City Clerk
Tax Revenue Enhancement Agreement
Business License Discovery /Recovery
This agreement made as of the __ day of __ ~ 2011 by and between PRA Government Services,
LLC d/b/a RDS and City of Fairhope, Alabama, an Alabama CITY ("CITY").
A. Business License Discovery /Recovery Services
1. Discovery /Recovery Services include :
i. Analysis of two or more municipal lists . These lists could include: current business
license data, sales tax data, property tax lists and telephone directories at least once a
year.
ii. Properties/entities that are not in one or all of the databases are presumed unlicensed.
iii. RDS will generate a letter requiring payment, proof of payment, or documented response
for all properties/entities presumed unlicensed. If no response, RDS may mail
additional letters and contact the property/entity via phone call before proceeding with
additional collection procedures .
2 . Taxpayer Remittance: Taxpayers will remit payments to City of Fairhope, P.O . Box 830725,
Birmingham, AL 35283-0725. Upon reasonable notice to CITY, RDS may change the P.O. Box
for City of Fairhope payments. CITY will be responsible for renewals. RDS will provide a list to
CITY.
3. Deposit Process: Deposits are made to the extent that funds have been received, via
Automated Clearing House of the amounts and to the designated recipients as instructed by the
CITY for each type of tax collected, as shown in more detail on Exhibit A.
4 . Posting Process: Taxpayer accounts are posted with payment information captured in the RDS
revenue system. Additional information such as net sales, deductions, credit sales, measure of
tax, name change and address change is captured and added to payment data and taxpayer
master file (as determined necessary by RDS). Late payments (postmarked by U.S. Postal
Service after due date) are invoiced at penalty amounts required by State code. Under-
payments are invoiced for remaining tax due plus any required penalties.
5. Changes to Exhibit A: CITY shall notify RDS in writing immediately of all changes in amounts
to be deposited into the accounts of designated recipients. An amended Exhibit A shall be
prepared and executed by the Parties as soon as reasonably possible. In addition, RDS shall
provide documentation confirming each change under the preceding sentence with the first
monthly report reflecting the applica ble change. If the changes reflected in the monthly report
do not properly reflect the intended changes of the CITY, then the CITY shall immediately
notify RDS and, thereafter, RDS shall take the steps necessary to insure that designated
recipients receive the amounts intended by CITY.
6. Notification, Reporting to CITY: RDS will provide CITY with timely reports including, but not
limited to, payment listings showing all monies received, a detail and summary reconciliation
report that corresponds to CITY'S account numbers and a ll fees paid to RDS.
RDS City Contract 2011
B. General Provisions
1. Taxpayer service: RDS will provide a taxpayer assistance number for taxpayer questions.
2 . RDS, in collecting any fee, tax, interest, court cost, or penalty shall have no authority to
determine the amount of fee, tax, interest, court cost, or penalty owed the state, county, or
municipal governing a uthority.
3. Consideration for Discovery/Recovery Services :
i. RDS Fee for Discovery /Recovery Services : RDS will receive forty percent ( 40%) of
business license revenue collected by RDS.
ii. RDS fee for copies of business license applications: RDS will receive an amount equal to
$1.75 per business license application ma iled or faxed to the City . RDS will provide at no
additional cost a detailed payment listing that includes taxpayer name, address, schedule
number, and license year.
4. Company Audit: Once a year RDS will have an a uditor prepare an Independent Service
Auditor's Report on Controls Placed in Operation and Tests of Operating Effectiveness. This
report is commonly called a SAS 70 Type II report and will be made available upon request
5. Term of the Agreement: This Agreement shall be for a term of one year following the date of
execution. Either party shall have the right to terminate this Agreement in the event of a
material breach by the other party. Any such termination may be made only by providing
ninety (90) days written notice to the other party, specifically identifying the breach or
breaches on which termination is based. Following receipt of such notice, the party in breach
shall have thirty (30) days to cure such breach or breaches. In the event that such cure is not
made, this Agreement shall terminate in accordance with the initial ninety (90) days notice .
6. Effect of Termination: Notwithstanding non-renewal or termination of this Agreement, CITY
shall be obligated to pay RDS for services performed through the effective date of termination
for which RDS has not been previously paid. In addition, because the services performed by
RDS prior to termination or non-renewal of this Agreement may result in the CITY's receipt of
revenue after termination which are subject to RDS' fee, the CITY shall remain obligated after
termination or non-renewal to provide to RDS such information as is necessary for RDS to
calculate compensation due as a result of the receipt of revenue by the CITY. The CITY shall
remain obligated to pay RDS' invoices therefore in accordance with the terms of this
Agreement.
7. Indemnity: To the fullest extent allowed by law, RDS hereby agrees to indemnify and hold
CITY harmless from any claims and against all costs, expenses , damages , claims and liabilities
based upon or arising solely out of a breach of this Agreement by RDS . Except as set forth in
the preceding sentence, to the full extent allowed by law, CITY hereby agrees to indemnify and
hold RDS harmless from any claims and against all costs, expenses, damages, claims and
liabilities relating to sales, use and other taxes of CITY, including, but not limited to,
determination of taxes due from taxpayers, the collection thereof, the Deposit Process, Section
A(3), above, and any refunding related thereto.
8. Limitation of Liability : To the maximum extent permitted by law, in no event shall RDS, its
employees, contractors, directors, affiliates a nd/ or agents be li a ble for any special, incidental
RDS City Contract 2 011
or consequential damages, such as, but not limited to, delay, lost data, disruption, and loss of
anticipated profits or revenue arising from or related to the services, whether liability is
asserted in contract or tort, and whether or not RDS has been advised of the possibility of
any such loss or damage. In addition, RDS' total liability hereunder, including reasonable
attorneys fees and costs, shall in no event exceed an amount equal to the fee paid by the
CITY for the affected service to which the claim pertains. The foregoing sets forth the CITY'S
exclusive remedy for claims arising from or out of this Agreement The provisions of this
section allocate the risks between RDS and the CITY and RDS' pricing reflects the allocation
of risk and limitation of liability specified herein.
9. Equal Opportunity to Draft: The Parties have participated and had an equal opportunity to
participate in the drafting of this Agreement. No ambiguity shall be construed against any
Party upon a claim that that party drafted the ambiguous language.
l 0. Assignment: This Agreement shall be binding upon and inure to the benefit of the Parties, their
successors; representatives and assigns. RDS shall not assign this Agreement, or delegate its
duties or obligations under this Agreement, without the prior written consent of CITY, which
consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the
foregoing, RDS may assign this Agreement, in whole or in part, without the consent of CITY to
any corporation or entity into which or with which RDS has merged or consolidated; any
parent, subsidiary, successor or affiliated corporation of RDS; or any corporation or entity
which acquires all or substantially all of the assets of RDS. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the parties and their successors or
assigns.
11. Force Majeure: RDS shall not be in default of its obligations hereunder to the extent that its
performance is delayed or prevented by causes beyond its control, including but not limited to
acts of God, government, weather, fire, power or telecommunications failures, inability to
obtain supplies, breakdown of equipment or interruption in vendor services or
communications.
12. Subcontractors: RDS shall have the right to hire assistants as subcontractors or to use
employees to provide the Services required by this Agreement. RDS , in rendering performance
under this Agreement shall be deemed an independent contractor and nothing contained
herein shall constitute this arrangement to be employment, a joint venture, or a partnership.
RDS shall be solely responsible for and shall hold CITY harmless from any and all claims for any
employee related fees and costs including without limitation employee insurance, employment
taxes, workman's compensation, withholding taxes or income taxes.
13 . Intellectual Property Rights: The entire right, title and interest in and to RDS' database and all
copyrights, patents, trade secrets, trademarks, trade names, and all other intellectual property
rights associated with any and all ideas, concepts, techniques, inventions, processes, or works
of authorship including. but not limited to, all materials in written or other tangible form
developed or created in the course of this Agreement (collectively, the "Work Product") shall
vest exclusively in RDS . The foregoing notwithstanding, in no event shall any CITY-owned data
provided to RDS be deemed included within the Work Product.
14 . Entire Agreement: This Agreement constitutes the entire agreement between the parties
hereto and supersedes any prior understandings or written or oral agreements between the
RDS City Contract 2011
parties respecting the subject m atter contained herein. Sa id Agreement shall not be amended,
a ltered, or changed, except by a written Agreement signed by both parties hereto.
15. In va lidity: If any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, ill ega l, or unenfo rceab le in any respect, such invalidity, illega lity,
or unenforceability shall not affect any other provision thereof, and this Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained
thereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein.
16. Effective Date: The effective date for the perfo rmance o f services under the terms of this
agreement shall commence ___ l, 2011.
IN WITNESS WHEREOF , the parties hereto as of the date first above written h ave duly execute d this
Agreement.
PRA GOVERNMENT SERVICES, LLC
d/b/a RDS
By: ________ _
Its: President
CITY OF FAIRHOPE
By: ________ _
Its : ___________ _
Proposed pricing contained herein valid for 60 days from date of issuance. Issued 1/27 /11 (SC)
RDS City Contract 201 1
January 27, 2011
Lisa Hanks
City of Fairhope
P.O. Drawer 429
Fairhope, AL 36533
Dear Ms. Hanks:
EXHIBIT A
CITY DISTRIBUTION
Funds will be distributed in the following accounts pursuant to this Agreement:
Agency Routing# Account# Distribution % Tax Type/Rate Code
Business License
Fairhope 100% Discovery /Recovery
If at any time there are any discrepancies between the schedule set out above and your
Municipality's records, please notify us in writing immediately.
IT IS YOUR RESPONSIBILITY TO PROVIDE NOTICE TO US OF ANY CHANGES IN TAX RATES
OR IN THE DISTRIBUTION OF FUNDS. NOTICE MUST BE IN WRITING AND SENT, VIA
CERTIFIED MAIL, TO:
PRA Government Services, LLC (d/b/a RDS)
2317 Third Avenue North, Suite 200
Birmingham, Alabama 35203
ATT: Kennon Walthall, President
Thank you for your assistance. If you have any questions, or if I may be of assistance, please
let me know.
Sincerely Yours,
Paige Tortorich
Client Relations Manager
RDS
205-423-4141 direct dial
205-423-4097 direct fax
I have reviewed the above distribution and verify that it is correct.
By :
Name: RDS President
Title:
RDS City Contract 2011