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					CONSENT AGENDA
7.   APPROVAL OF MINUTES:
     September 9, 2009, Regular Meeting
     September 15, 2009, Regular Meeting

8.     Award of a Contract to Harrison Uniform Company
       The City Commission will consider awarding a contract to Harrison Uniform Company for the
       purchase of law enforcement uniforms and accessories.

9.     Digital Copier Lease With Konica Minolta Business Solutions USA
       The City Commission will consider entering a lease with Konica Minolta Business Solutions USA
       Inc. to replace digital copiers currently utilized by the City under an expiring lease.

10.    Lake Wales High School Homecoming Parade – Street Closing
       Approval of the street-closing request will allow the Lake Wales High School Homecoming
       Parade to be held on Thursday, October 8, 2009.

11.    34th Annual Pioneer Days Celebration – Street Closing
       This is the Pioneer Days event permit application and car parade road closure request.

12.    Veterans Day parade – Street Closing
       Approval of the street closing request will allow the Veterans Day Parade to be held on Saturday,
       November 14, 2009.

13.    “Lowe’s of Lake Wales” Commercial Subdivision, East side of US Highway 27 North – Final
       Plat
       Approval of a final subdivision plat is requested to divide 33 acres of commercial land on the east
       side of US Highway 27 North into 5 parcels, including a parcel where the Lowe’s Home
       Improvement Center was built, a drainage parcel and 3 out-parcels along the highway.
City Commission Meeting
September 9, 2009
Page 1 of 37

The regular meeting of the Lake Wales City Commission was held on September 9, 2009 at 6:00 p.m. in the
Commission Chambers at the Municipal Administration Building. The meeting was called to order by Mayor L.
Jack Van Sickle.

    INVOCATION

    The invocation was given by Dr. Jim Moyer, Warner University.

    PLEDGE OF ALLEGIANCE

    COMMISSIONERS PRESENT: Terrye Y. Howell; Lee A. Wheeler, III.; Jonathan Thornhill; John Paul
    Rogers; Mayor L. Jack Van Sickle.

    COMMISSIONERS ABSENT: None.

    CITY REPRESENTATIVES PRESENT: Judith H. Delmar, City Manager; Albert C. Galloway, Jr., City
    Attorney; Clara VanBlargan, City Clerk.

MAYOR

Commendation: Lifesaving Award – Captain Patrick Quinn

Mayor Van Sickle presented a Lifesaving Award to Captain Patrick Quinn for his heroic lifesaving actions
that saved a woman and her children from serious injury and possible death during a storm on the
evening of September 5, 2009 at the Lake Wailes Boat Ramp.

BUDGET HEARINGS

Agenda Item 5.            Ordinance 2009-20, Adopting a Millage Rate for FY09’10 – 1st Reading &
                          Public Hearing
                          Ordinance 2009-21, Adopting a Budget for FY09’10 – 1st Reading & Public
                          Hearing

Ms. Delmar reviewed Agenda Item 5. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The Commissioners will consider adopting a millage rate of 7.3277 mills for Fiscal Year 2009-2010 which
is the same as the current year’s rate. The Commissioners will also consider adopting the proposed
operating budget. A separate public hearing will be held on each matter.

RECOMMENDATION

After first reading and separate public hearings, it is recommended that the City Commission take the
following actions:

1. Approve Ordinance 2009-20 adopting an FY09'10 millage rate of 7.3277 mills.

2. Approve Ordinance 2009-21 adopting the proposed FY09'10 operating budget with revisions.

BACKGROUND
City Commission Meeting
September 9, 2009
Page 2 of 37

In accordance with Florida Statutes and the City Charter, Ordinances 2009-20 and 2009-21 are
presented for first reading and public hearing. Ordinance 2009-20 establishes the millage rate for
FY09'10, and Ordinance 2009-21 adopts the proposed FY09'10 budget.

The proposed FY09'10 budget document includes the revenue and expenditure details for the General
Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Fund, Utility System Fund and Airport
Fund. This document was previously forwarded to the City Commission for review and was discussed at a
workshop held on August 17.

This budget has been prepared in accordance with Article VI, Section 6.04 of the City Charter which
requires that the budget provide a complete financial plan of municipal funds and activities. Estimated
current year ending fund balances have been considered and are included in the budget.

PROPERTY TAX

The proposed budget is based on the current millage rate of 7.3277 per $1,000 of taxable valuation. This
is 10.44% below the rolled-back rate of 8.1817 mills that was adopted as the interim millage rate. The
rolled-back rate is the rate that will generate the same amount of revenue with 2009 property values as
the current rate generated with 2008 property values. The following chart shows the difference between
the rolled-back rate and the current/proposed rate for taxpayers at various assessed valuations:

In accordance with Florida Statutes and the City Charter, Ordinances 2009-20 and 2009-21 are
presented for first reading and public hearing. Ordinance 2009-20 establishes the millage rate for
FY09'10, and Ordinance 2009-21 adopts the proposed FY09'10 budget.

The proposed FY09'10 budget document includes the revenue and expenditure details for the General
Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Fund, Utility System Fund and Airport
Fund. This document was previously forwarded to the City Commission for review and was discussed at a
workshop held on August 17.

This budget has been prepared in accordance with Article VI, Section 6.04 of the City Charter that
requires that the budget provide a complete financial plan of municipal funds and activities. Estimated
current year ending fund balances have been considered and are included in the budget.

                                  Taxable Value                Tax Rate per $1,000          Difference
                            with 1 st         st
                                         with 1 & 2  nd                                   between rolled-
          Assessed                                                        7.3277 mills
                           $25,000         $25,000        8.1817 mills                     back rate and
           Value                                                           (current &
                          homestead      homestead        (rolled-back)                  current/proposed
                                                                           proposed)            rate
                          exemption       exemption

           $60,000         $35,000            -             $286.36        $256.47           $29.89
           $75,000         $50,000            -             $409.09        $366.39           $42.70
          $100,000            -            $50,000          $409.09        $366.39           $42.70
          $150,000            -           $100,000          $818.17        $732.77           $85.40
          $175,000            -           $125,000         $1,022.71       $915.96           $106.75
          $200,000            -           $150,000         $1,227.26      $1,099.16          $128.10

USER FEES

A series of ordinances adopted by the City Commission in September 2007 authorized annual increases
in city user fees based on June’s annual CPI or 2.5%, whichever is greater. The change in the CPI
City Commission Meeting
September 9, 2009
Page 3 of 37

measured from June 2008 to June 2009 was -1.4%, and all user fees (i.e., water and sewer, solid waste
collection, facility rental, development fees, etc.) will be increased by 2.5% on October 1.

Although a 2.5% increase in user fees will generate some additional revenue for the General Fund, ad
valorem proceeds and development-related revenues have declined dramatically during the past two
years. Revenues from state and other intergovernmental sources are also projected to be lower than last
year. As a result, General Fund revenues in FY09'10 are projected to be $418,060 less than budgeted in
FY08'09 and $1,005,824 less than actually received in FY07'08.

EXPENDITURE CHANGES SINCE PRESENTATION OF BUDGET

The budget that was originally presented on August 11 and discussed during the budget workshop has
been revised to include increases and reductions of expenditures as follows:

           Expenditure     Item Description
                 -83,400   Reduction in City-paid Health Insurance costs
                283,153    Increase in Payroll - 3% COLA
                  38,269   Increase in Fire Dept C/O - grant-funded Mobile Radios
                 -33,138   Reduction in Gen Fund transfer to Airport Fund
                   1,820   Increase in Gen Fund transfer to Streets Div
                  -1,560   Net effect of Change in Allocated expenses
                316,230    CRA transfer to Gen Fund (Coop Fruit Prop Proceeds - Escrow Acct)
                  -3,836   Reduction in budget for Road Repairs
                           Increase in Cap Proj Fund C/O - grant-funded Kiwanis Park
                250,000
                           Improvements
                   3,648   Increase in Gen Fund admin charge to Utilities Admin
                122,692    Increase in Airport grant-funded MITL construction budget
                748,762    Increase in Airport grant-funded Runway construction budget
                 -40,000   Deletion of Airport fuel truck purchase

              1,602,640    Total change in expenditure budget (All Funds Combined)

The changes shown in the table above affect expenditures in the General Fund, Transportation Fund,
CRA Fund, Library Fund, Capital Projects Fund, Utilities Fund and Airport Fund.

It is anticipated that a surplus of at least $183,000 will be carried forward from the current budget year to
FY09'10 because fuel costs have been so much lower than anticipated. Soaring fuel prices during the
spring and summer of 2008 caused us to increase our fuel budget for FY08'09 at the expense of
purchasing much needed equipment for the parks and streets divisions. The proposed FY09'10 budget
will utilize this surplus to fund parks equipment ($88,000), streets division equipment ($13,000), 2 marked
police vehicles ($50,000), and a projector for Commission Chambers ($2,000). In addition this surplus will
fund the $30,000 local match required for the $20,000 Urban Forestry grant that will be used to purchase
a bucket truck to be shared by several departments. An additional 4 marked police vehicles ($125,000)
will be purchased from CRA funds for use by the Community Policing unit that will be assigned primarily
to the Downtown and Lincoln Avenue commercial districts.

Initial budget requests submitted by the departments exceeded General Fund revenue projections by
more than half a million dollars. By utilizing the surplus mentioned above for capital purchases and
significantly reducing the initial requests, staff has been able to balance the proposed budget at the
City Commission Meeting
September 9, 2009
Page 4 of 37

current millage rate while avoiding measures that some cities and counties have been forced to
implement (i.e, employee lay-offs, salary reductions, and days off without pay).

The proposed General Fund operating budget totals $10,835,431. This represents an increase of 0.7%
over the current year’s budget and a 5.1% reduction compared to actual expenditures in FY07'08.

Following the direction expressed by the City Commission during the June budget workshop, the
proposed budget contains $132,000 in reduced costs for maintaining or operating various recreational
facilities. Also discussed at the budget workshop was the possible closing of the garage and contracting
with a local dealer for fleet maintenance services. Rather than closing the garage, however, we have
entered into an interlocal agreement with Polk County for the management of our fleet maintenance
operation using our facility and equipment. It is anticipated that this arrangement will save approximately
$135,000 next year. These cost savings will be discussed later in this memorandum.

As strongly recommended by the City’s auditors, it has been the City’s goal to increase the General Fund
balance to 15-20% of the total operating budget. In terms of the proposed FY09'10 budget, this would
require a General Fund balance of $1.6 to $2.17 million.

On September 30, 2008, the total fund balance of the General Fund was $2,596,546 or 24.1% of the total
operating budget for FY08'09. Excluding the Tax Anticipation Reserve/Pool Construction Account
($1,037.852), the fund balance of the General Fund was $1,558,694 or 14.5% of the FY08'09 budget.

If revenue and expenditure levels reported at June 30 are maintained through the end of the year, it is
estimated that revenues will exceed expenditures by approximately $200,000 at 9/30/09 allowing us to
carry forward a fund balance of $2,814,025 –the equivalent of 26.4% of the proposed FY09'10 General
Fund budget. However, we are conservatively budgeting a fund balance forward of $2,596,546 in order to
allow for unanticipated expense in the 4th quarter of this fiscal year.

SUMMARY OF ALL FUNDS

                              General Fund                         $10,544,589
                              Special Revenue Funds                  6,308,559
                              Debt Service Fund                      2,363,120
                              Capital Projects Fund                    645,000
                              Utility System Fund                   10,297,566
                              Airport Fund                           1,607,313
                              TOTAL                                $31,766,147

The expenditure total of $31,766,147 is comprised of operating costs in the amount of $22,190,074 and
capital outlay in the amount of $9,576,073. Transfers in the amount of $4,126,861 bring total expenditures
plus transfers to $35,893,007. The proposed operating budget expenditures for FY09'10 are 49.8% less
than the actual total expenditures for FY07'08 (projects funded by bond proceeds are excluded from this
calculation).

Capital expenditures include utility system improvements such as the rehabilitation and upgrade of the
wastewater treatment plant and asbestos pipe removal, airport taxiway lighting improvements, Lincoln
Avenue parking improvements, Downtown improvements, purchase of police vehicles and miscellaneous
equipment purchases budgeted as follows:

                          General Fund                                      213,269
                          Special Revenue Funds                           2,352,343
City Commission Meeting
September 9, 2009
Page 5 of 37


                          Capital Projects Fund                             645,000
                          Utility System Fund                             4,865,518
                          Airport Fund                                    1,499,943
                          TOTAL                                          $9,576,073



REVIEW OF DEBT SERVICE

As required by Charter, a summary of the City's outstanding debt at September 30, 2009 is presented as
follows:

Public Improvement Bonds, Series 1997; issued to refund Public Improvement Bond Series, 1991 which
refinanced Public Improvement Bond Series, 1989 funding capital projects. Balance: $1,990,000; last
payment October 2014.

         SunTrust 2003 Note; issued to accomplish advance refunding of Capital Improvement Revenue
         Bonds, Series 1996 ($4,666,859), to refinance Non-Ad Valorem Revenue Bonds, Series 1999
         ($4,757,115) and to finance interest and issuance costs ($125,716). Annual interest rate, 3.84%.
         Balance: $6,883,127; last payment 2016.

         SunTrust 2005 Note; issued finance construction of chlorine contact chamber at Wastewater
         Treatment Plant and city’s cost portion of reuse transmission lines. Annual interest rate, 4.2%.
         Balance: $673,059; last payment 2015.

         Wachovia Utility System Improvement Refunding Revenue Note, Series 2006A; issued to refund
         existing bonds and fund Water and Sewer system improvements. Balance: $4,894,870; last
         payment October, 2016.

         Utility System Revenue Note, Series 2006B, is an authorized credit line in the principal amount of
         not to exceed $3,100,000 to finance the cost of constructing and acquiring certain additions,
         extensions and improvements to the utility system. Current variable interest rate as of August 8,
         2008 based on 74% of 1-Month LIBOR plus 95 basis points. Balance: $2,550,000; last payment
         2026.

         CRA Redevelopment Revenue Note, Series 2007; issued to finance redevelopment capital
         improvement projects. Balance: $8,760,417; last payment October 2027.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with Wastewater Reuse Project, Phase I. Annual interest rate, 2.56%.
         Balance: $873,576; last payment February 2019.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with Wastewater Reuse Project, Phase II. Annual interest rate, 3.05%.
         Balance: $542,978; last payment August 2022.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with sludge dewatering Improvements to the Wastewater Treatment Plant.
         Annual interest rate, 2.14%. Balance: $1,081,451; last payment October 2024.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of pre-construction costs associated with the Wastewater Treatment Plant Expansion Project.
         Annual interest rate, 1.88%. Balance: $961,181; last payment October 2028.
City Commission Meeting
September 9, 2009
Page 6 of 37

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of pre-construction costs associated with the Wastewater Treatment Plant Expansion Project.
         Unless this agreement is amended to provide construction funding, the first semi-annual loan
         payment in the amount of $11,567 will be due on December 15, 2012. Principal amount of loan is
         approved at $350,000; current amount drawn down is $180,000. Annual interest rate: 2.30%.
         Balance: $180,000; last payment 2022.

         Florida League of Cities Master Lease Program, 2004 for lease-purchase of Fire Truck. Annual
         interest rate: 2.37%. Balance: $63,334; last payment 2010.

         Florida League of Cities Master Lease Program, 2006 for lease-purchase of Fire Truck. Annual
         interest rate: 4.28%. Balance: $267,321; last payment 2012.

         Motorola Capital Lease Program for lease-purchase of Public Safety communications equipment
         and other equipment. Annual interest rate: 6.263%. Balance: $138,526; last payment 2012.

         Fixed Base Operator’s Prepayment Credit for $300,000 in leasehold improvements done by the
         FBO on airport property. Annual interest rate: 0%. Balance: $49,500; last payment 2012.

The City's total indebtedness at 9/30/09 is $29,909,340 which is equal to 3.9% of the 2009 taxable
valuation of 757,664,673. Debt payments due during FY09'10 total $3,879,333 and represent 17.6% of
the City’s operating budget (excluding interfund transfers and capital outlay). A schedule showing the
City’s outstanding debt at September 30, 2009 is included in the Charts & Graphics portion of the
proposed budget (page C-2).


BUDGET HIGHLIGHTS

A summary of the important aspects of the proposed FY09'10 budget document is provided as follows:

1.       A 3.0% COLA is proposed for all employees. For police officers and firefighters, this is contingent
         upon negotiations with the police and firefighter bargaining units. The budget was initially
         presented without a pay increase for employees. At the budget workshop on August 17, it was
         the consensus of the Commissioners to transfer the remaining $300,000 in proceeds from the
         sale of the Cooperative Fruit Property to the General Fund in order to fund a 3% employee pay
         increase.

2.       A 10% increase for workers' compensation, liability, property and casualty insurance premiums is
         budgeted. There is no increase in cost for the period 10/1/09 to 3/31/10; this period is covered for
         the rates that went into effect on 4/1/09. Our current insurance policies will renew on 4/1/10. A
         rate increase, if any, will apply to the period 4/1/10 to 3/31/11, of which only 6 months are
         included in the FY09'10 budget. Because the term of coverage is from 4/1/ to 3/31, it will not be
         possible to estimate a rate increase until we get closer to the renewal date.

3.       The budget that was initially presented allowed for an increase of 10% over current year costs for
         city-paid employee health care coverage. Following a request for proposals and input from city
         employees, a change in health care provider will result in an actual increase of only 1.6% over
         current year costs. The city-paid premium for each employee will increase from $489.75 per
         month to $497.68 per month. The cost to employees for family coverage will decrease 1.1% from
         $503.00 per month to $497.65 per month.

4.       Pension contribution rates have been budgeted for FY09'10 to yield the actuarially determined
         funding requirements calculated by the actuaries retained by the City's pension boards as follows:
City Commission Meeting
September 9, 2009
Page 7 of 37


                                General Employees        Police Officers        Firefighters

                  FY 08'09              6.0%                 17.3%                 23.7%
                  FY 09'10              1.4%                 21.9%                 26.9%
                  Change               -4.6%                 +4.6%                 +3.4%


5.        Changes in departmental staffing in FY09'10 as compared to the FY08'09 amended budget are
          detailed in the following chart:

     City Manager                     - 1.00 Assistant City Manager position eliminated
     Human Resources                  + 0.50 Switchboard/Receptionist position added (position shared
                                              with Clerk’s Office)
     City Clerk’s Office              + 0.50 Minutes Clerk position added (position shared with HR)
     Information Technology           + 1.00 Computer Technician position added
     Permits & Inspections            - 1.00 50% of Office Manager and Admin Asst positions reclassified
                                              to Planning & Zoning Dept
     Permits & Inspections            - 0.75 Bldg Inspector eliminated 6/30/09
     Planning & Zoning                + 1.00 50% of Office Manager and Admin Asst positions reclassified
                                              from Permits & Inspections
     Finance Department               - 0.25 Clerk position eliminated (shared with Utilities Cust Svc)
     Utility Customer Service         - 0.75 Clerk position eliminated (shared with Finance)
     Utility Customer Service         - 1.00 Clerk position transferred to Utilities Admin
     Utility Customer Service         - 0.75 Clerk position transferred to Support Services
     Utilities Admin                  + 1.00 Clerk position transferred from Utility Customer Service
     Support Services                 + 0.75 Clerk position transferred from Utility Customer Service
     Support Services                 - 1.00 Assistant to City Manager position eliminated
     Support Services                 + 0.25 Administrative position transferred from Streets Division
     Fleet Maintenance                - 3.00 Mechanic positions eliminated from city payroll; employees
                                              added to county payroll
     Parks Division                   - 7.00 Positions transferred to Field Operations
     Streets Division                 - 6.00 Positions transferred to Field Operations
     Cemetery Division                - 1.00 Position transferred to Field Operations
     Recreation Facilities Division   - 1.00 Position transferred to Field Operations
     Field Operations                 + 15.00 Positions transferred from Parks, Streets, Cemetery & Rec
                                              Facilities to consolidate field work force
     Field Operations                 + 2.00 Maintenance Worker I position added
     Field Operations                 + 0.75 Maintenance Worker III position added at 1/1/10 to maintain
                                              US27 medians between SR60 and Towerview
     Streets Division                 - 0.25 Administrative position transferred to Support Services
     Public Services Admin            + 0.50 Public Works Director position added, shared with Utilities
                                              Admin
     Library                          - 0.50 Position transferred to Books-by-Mail
     Books-by-Mail                    + 0.50 Position transferred from Library
     Community Policing               + 1.00 Officer added with emphasis on Housing Authority property;
                                              50% of position funded by LWHA
     Community Policing               + 1.00 Officer added for increased patrol presence in downtown
                                              commercial district
     Utilities Admin                  - 1.00 Utility Director position eliminated
     Utilities Admin                  + 0.50 Public Works Director position added, shared with Public
                                              Services Admin
     Utility Operations               + 2.00 System Maintenance Technicians added (1 for water and 1
                                              for wastewater operations)
                                      + 2.00 Net Change in positions since amended FY08'09 Budget
City Commission Meeting
September 9, 2009
Page 8 of 37


6.       Capital expenditures proposed for FY09'10 are itemized in the following chart, however it should
         be noted that projects funded by the CDBG grant and the CRA bond may be modified during the
         budget adoption process. The inclusion of the 1919 School grant-funded project is dependent on
         approval by the State regarding expenditure of the $300,000 local match. It is anticipated that
         these modifications and other matters of concern will be determined before adoption of the
         FY09'10 budget but, if not, they will be included in the first budget amendment of FY09'10.



                          Item                           Cost                Funding Source

 IMPROVEMENTS

 Airport - Runway Extension                          1,084,396    Airport Grants

 Airport - Medium Intensity Taxiway Lights           393,497      Airport Grants, Airport Revenues

 Drainage Improvements - Twin Lakes                  770,702      CRA Bond, SWFWMD Grant

 Parking Improvements - Lincoln Ave                  75,000       CDBG Commercial Vitalization Grant

 Parks & Recreation - Hardman Hall (1919 School) 650,000          State Grant, CRA Tax Increment

 Parks & Recreation - Kiwanis Park Improvements      250,000      FRDAP Grant

 Streetscape Improvements – Dr ML King Jr            200,000      CRA Bond

 Streetscape Improvements - Downtown                 331,390      CDBG Commercial Vitalization Grant

 Streetscape Improvements – Lincoln Ave Lights       145,000      CRA Bond

 Streetscape Improvements – Lincoln Ave Lights       150,000      CDBG Commercial Vitalization Grant

 Reuse System – Misc New Services                    25,000       Utility System Operating Revenues

 Reuse System – Monitoring Wells                     50,000       Impact Fees, Operating Revenues

 Reuse System – Ground Storage Tank                  200,000      Impact Fees, Operating Revenues
 (Engineering)

 Sewer System – Lift Station Pump Replacement        73,663       CRA Bond

 Sewer System – Treatment Plant Rehabilitation       1,000,000    Loan Proceeds, Operating Revenues

 Sewer System – Force Main/Lft Stn Crooked Lake 450,000           Loan Proceeds, Impact Fees

 Sewer System – Treatment Plant                      2,025,000    Loan Proceeds, Impact Fees
 Upgrade/Expansion

 Water System – PRV at 9th, Scenic, SR 60            45,000       Utility System Operating Revenues

 Water System – PRV at Hunt Bros & Scenic            60,000       Impact Fees, Operating Revenues

 Water System – Misc New Services                    25,000       Utility System Operating Revenues

 Water System – Interconnect at N US 27              92,000       Impact Fees, Operating Revenues

 Water System – Minnesota/Grove Area Upgrades 100,000             Utility System Operating Revenues

 Water System – Southwest Line Extensions            100,000      Utility System Operating Revenues
City Commission Meeting
September 9, 2009
Page 9 of 37


                          Item                         Cost                Funding Source

 Water System – Asbestos Pipe Removal              566,855      CRA Bond

 LAND

 Airport - Avigation Easements                     22,050       Airport Grants

 VEHICLES & EQUIPMENT

 Streets Division – Mower                          13,000       General Fund Revenues

 Commission – Projector for Commission Chambers 2,000           General Fund Revenues

 Parks & Recreation – Tractor                      40,000       General Fund Revenues

 Parks & Recreation - Stump Grinder                20,000       General Fund Revenues

 Parks & Recreation – Mowers                       28,000       General Fund Revenues

 Fire Dept - Mobile Radios                         38,269       AFG Grant, General Fund Revenues

 Police Dept – Generator                           35,000       Insurance Proceeds

 Police Dept – Vehicles                            50,000       General Fund Revenues

 Police Dept – Community Policing - Vehicles       125,000      CRA Revenues

 Police Dept – Community Policing - Weapons        5,000        CRA Revenues

 Police Dept – Misc Equipment                      25,000       Forfeiture Funds

 Police Dept – Computers                           74,000       Byrne Law Enforcement Grants

 Police Dept – Video Systems/Cameras               25,000       Byrne Law Enforcement Grants

 Police Dept – Weapons                             23,251       Byrne Law Enforcement Grants

 Parks, Streets – Bucket Truck                     50,000       Urban Forestry Grant, General Fund

 Water System – Misc Equipment                     4,000        Utility System Operating Revenues

 Sewer System – Misc Equipment                     4,000        Utility System Operating Revenues

 Reuse System – Booster Station                    45,000       Impact Fees, Utility System Operating
                                                                Revenues

 OTHER CAPITAL OUTLAY

 Library - Books & Subscriptions                   85,000       Library Fund Revenue

 TOTAL CAPITAL EXPENDITURES                        9,576,073




7.       In accordance with Ordinance 2007-07 adopted by the City Commission on September 18, 2007,
         water and sewer rates and charges will be adjusted to reflect a 2.5% increase based on June’s
         annual CPI. The increase will be applied to service provided on or after October 1, 2009.
City Commission Meeting
September 9, 2009
Page 10 of 37


                              WATER CHARGES                              SEWER CHARGES
                                                                                 rate per 1,000
                                    Rate per 1,000 gallons
                                                                                     gallons
                base                                                   base
               charge                 5,001 –   10,001 -      over    charge              5,001 -
                          0-5,000                                              0 -5,000
                                      10,000     25,000      25,000                       15,000

Current         5.20       2.06        2.78       4.32        7.11    18.47      2.43       4.25

10/1/09         5.33       2.11        2.85       4.43        7.29    18.93      2.49       4.36

For inside-city residential customers using an average of 8,000 gallons per month, water charges will
increase from $23.84 to $24.43, and sewer charges will increase from $43.37 to $44.46; the combined bill
for water and sewer will increase from $67.21 to $68.89.

8.        The FY09'10 Budget includes a 2.5% increase in all General Fund user fees and charges. For
          residential solid waste collection and recycling, fees will increase from $18.82 per month to
          $19.29 per month.

9.        Organizational changes are proposed that will reduce costs in some areas and reallocate
          resources to others:

          Fleet Maintenance. At the June budget workshop, the Commission expressed an interest in
          closing all or part of the city’s fleet maintenance operation and contracting with a local dealer for
          fleet maintenance services. Prior to investigating the privatization of fleet maintenance
          operations, staff contacted Polk County Fleet Maintenance (PCFM) to see if that agency could
          provide services to us through an interlocal agreement with the Board of County Commissioners.
          PCFM submitted a proposal to provide a full-time on-site supervisor to run the fleet maintenance
          operation using the City’s garage facility and equipment. The three mechanics currently employed
          by the City will be employed by the County subject to successful completion of the County’s
          routine screening process mandatory for all new employees.

          The proposal was subsequently approved by the City Commission and will save the City an
          estimated $135,000 in vehicle and equipment maintenance and repair costs in FY09'10. The
          anticipated cost savings permits the funding of a fire prevention specialist that would have
          remained unfunded following the retirement of the employee currently holding that position
          ($59,163), tuition assistance in the amount of $22,610, and site licenses for upgrading 58
          computers from Microsoft Office 97 to the 2003 edition ($15,000).

          City Manager’s Office. While it may be necessary or desirable to restore an assistant city
          manager position at some time in the future, several department heads have expressed a
          willingness to assume some of the duties previously assigned to the assistant city manager and
          city manager. This organization-wide support of the City Manager’s Office permits the reallocation
          of resources to areas in serious need of additional workers. Specifically, we are recommending
          the addition of the following positions:

          1. A computer technician position is recommended for the Information Technology (IT)
             department. The city administrative and public safety functions are highly dependent on
             computer technology. Two employees currently maintain more than 17 servers with 4
             firewalls and other networking equipment, 201 desktop and laptop computers, 25 in-car video
             systems, the new MOTOMESH system, the FLEXNET meter reading system, and the
             telephone system. The workload is currently more than can be handled by two employees in
             a normal workweek and will only increase as the MOTOMESH and FLEXNET systems
             expand.
City Commission Meeting
September 9, 2009
Page 11 of 37

         2. A maintenance worker position is recommended for the Field Operations division (see
            below), primarily to improve our ability to keep rights-of-way and open areas maintained
            properly.

         3. A switchboard operator/minutes clerk position is recommended for addition to the
            administrative staff. Adding a switchboard operator will eliminate the need to navigate the
            automated message system when calling City Hall. The person filling this position will also
            assist the city clerk with minutes of the City Commission, the CRA, and other city boards.

         Public Works. While it may be necessary or desirable to restore these positions at some time in
         the future, the resignation of the utilities director and the assistant to the city manager have freed
         up resources to fund the following:

         1. A public works director who is licensed as an engineer in the State of Florida will head both
            the Public Services Department (parks, streets, cemetery, airport) and the Utilities
            Department (water, wastewater, reuse). Having a licensed engineer on staff will expedite our
            dealings with regulatory agencies and provide savings in small project design costs.

         2. Two system technician positions are recommended for addition to the Utilities Department,
            one for water operations and one for wastewater operations. The water position is necessary
            to maintain compliance with increasing DEP regulatory requirements, and the wastewater
            position is necessary to perform routine maintenance on lift stations and other system
            components.

         3. A maintenance worker III position is recommended for addition to the Field Operations
            division to maintain the landscaped and grass medians on US 27 between SR 60 and
            Towerview Drive (at entrance to Tower Wood). The City will be required to maintain these
            medians after 12/31/09.

         Field Operations. Workers currently assigned to the Streets, Parks, Cemetery, and Recreational
         Facilities divisions will be transferred into a single General Fund operational division effective
         10/1/09. Although this will not result in a cost savings, combining all field employees into the Field
         Operations division will improve productivity by facilitating scheduling, cross-training, and more
         efficient utilization of workers.

         It is proposed that the cost of a maintenance worker will be allocated to the CRA, and the duties
         of that employee will consist of maintaining the landscaped areas in the downtown business
         district, on Lincoln Avenue, and on Central Avenue. This cost allocation will free up General Fund
         resources for the addition of a third new maintenance worker position to improve our ability to
         keep city-owned property maintained properly elsewhere in the city. This item is subject to the
         approval of the CRA Board.

         Staff is currently in discussions with Polk County Corrections to secure a second prisoner work
         crew for utilization on weekdays. If successful, this will increase the manpower available to
         maintain city rights-of-ways and park areas. It is anticipated that this will also reduce the use of
         “weekend warriors” and cut down on city overtime costs incurred in supervising weekend work
         crews.

         Community Policing. The budget includes an additional officer in the Community Policing unit
         who will be assigned to Grove Manor; the Lake Wales Housing Authority will fund 50% of this
         position and 50% will be funded by CRA revenues. This position and its funding sources were
         approved during FY08'09. A second officer is added to the unit for increasing the law
         enforcement presence in the downtown commercial district; this position will be funded by CRA
         revenues subject to the approval of the CRA Board.
City Commission Meeting
September 9, 2009
Page 12 of 37

10.      Following the direction expressed by the City Commission during the June budget workshop (i.e.,
         that funding of public safety and other core services must take precedence over funding of culture
         and recreation), the proposed FY09'10 budget as presented reduces funding for the operation of
         various city-owned recreational facilities. The cost to restore all of the budget cuts discussed
         below is $131,859 – the millage equivalent of .2218 mills.

              Albert Kirkland Sr. Gymnasium. It is recommended that the Kirkland Gymnasium be
              closed unless the City can provide sufficient funding for two employees to supervise the
              facility during all hours of operation, preferably through a contract with the Boys & Girls Club.

              During FY08'09 the City paid the Boys & Girls Club $15,312 to operate the Kirkland
              Gymnasium. The Boys & Girls Club agreed to provide one person to supervise the gym for 8
              hours/day on weekdays and 2 part-time persons to supervise on weekends. This level of
              supervision proved to be inadequate, and, as a result, the downstairs area and the weight
              room, in particular, suffered damage from improper use of equipment, inappropriate
              horseplay, and vandalism. Although not as severe as the damage done in the downstairs
              areas, the upstairs area was damaged too. Further, the City’s exposure to liability for injuries
              in an insufficiently supervised and maintained facility is currently high and must be reduced.

              Vandalism and damage from unsupervised horseplay have been problems for the past
              several years, but can be controlled in the future through adequate staffing during operating
              hours and effective security during non-operating hours. Security measures have recently
              been implemented to include installing a motion-sensitive alarm system and closing the
              building when an employee of the Boys & Girls Club is not present. The downstairs area
              (showers and weight room) has been closed to public access.

              The Boys & Girls Club has quoted a price to provide supervision for the gym at various levels
              of service. To maintain the current level of service (i.e., keeping the gym open for the same
              number of operating hours as in the current year) with two employees on the premises at all
              times, the Boys & Girls Club will charge $55,698.
                                                                                Needed to restore
                                                      Current       Proposed     to current level
                   Culture/Recreation Reductions      FY08'09        FY09'10        of service

                   Kirkland Gym Contract (B&G Club)   $15,312              $0        $55,698
                   Kirkland Gym Utilities             $15,000          $1,500        $13,500
                   LWLL Field Maint Contract          $60,000         $30,000        $30,000
                   NW Complex Maint Contract          $11,500              $0        $11,500
                   Depot Contract (HLWS)              $51,161         $30,000        $21,161

                   TOTAL NEEDED TO RESTORE TO CURRENT LEVEL OF SERVICE              $131,859



As previously stated, the City Commission authorized the transfer of the remaining proceeds from the
sale of the Cooperative Fruit Property to the General Fund. With interest, the amount to be transferred is
$316,230 and has been included in the FY09'10 budget. The General Fund portion of savings from lower
than anticipated health insurance costs is $60,287. After funding employee pay increases, there are
unappropriated revenues in the amount of $193,462 in the General Fund. If the Commission wishes to
restore all or some of the recreation cuts, this unappropriated balance could be used in lieu of a millage
rate increase or cuts to other parts of the budget.

Staff recommends that, at a minimum, the Commission restore funding for the Kirkland Gym management
contract and utilities (+$69,198) because this facility is so heavily used by young people who will have no
other recreation alternatives if the gym is closed.
City Commission Meeting
September 9, 2009
Page 13 of 37

If the contract with the Little League organization is terminated, staff recommends reallocation of the
$30,000 that is budgeted for that contract to fund an additional employee for assignment to maintain
these fields.

If the Commission does not wish to restore the recreation cuts, all or a portion of the unappropriated
revenues of $193,462 can be used for other purposes that include:

         1. Adding staff. In particular, adding a facilities maintenance worker would be the first priority
            (+$40,500 salary and benefits). The facilities maintenance department has consisted of two
            employees since the department was created in the mid-70's. Since that time, the number of
            buildings and other facilities and playgrounds for which these employees are responsible has
            more than tripled. Routine maintenance is nearly impossible to schedule because our two
            employees are continually responding to requests for work that often reach the level of
            emergency repairs. Complaints that city facilities do not receive adequate maintenance are
            justified, but this is the result of having too many facilities for existing staff to attend to
            properly.

         2. Establishing a capital equipment reserve in the General Fund.

         3. Reducing the millage rate below the proposed 7.3277 (each $100,000 reduction in revenue =
            -0.1680 mills; a $200,000 reduction would result in a 0.3360 reduction in the rate with a new
            rate of 6.9917 mills).

         4. Paying off the 2006 Fire Truck Capital Lease. After making the budgeted FY09'10 payment of
            $96,841 ($85,400, principal and $11,441 interest), a balance of $181,921 remains to be paid
            over the next two years.

         5. Increasing unrestricted fund balance in the General Fund by $193,462.

[End agenda memo]

Ms. VanBlargan read Ordinance 2009-20 by title only

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, ADOPTING THE
FINAL LEVYING OF AD VALOREM TAXES FOR THE CITY OF LAKE WALES, POLK COUNTY,
FLORIDA FOR FISCAL YEAR 2009-2010; PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

A Lake Ashton resident asked if the proposed millage rate would cause a surplus in the proposed budget.
He said what he read on his tax bill from the county indicates that we are going to have a $5 million
surplus. Ms. Delmar said that it is possible that the tax bill mentioned does not pertain to the City of Lake
Wales. The City is proposing a millage rate of 7.3277 mills, which is the same as it was last year. There
will not be a $5 million surplus or a $5 million shortfall. The Lake Ashton resident asked if the City of Lake
Wales is responsible for taking care of City streets. Ms. Delmar said yes, but not in Lake Ashton because
the streets are owned and maintained by a CDD. The Lake Ashton resident asked if the people of Lake
Ashton get any kind of tax break because the City does not take care of the streets. Ms. Delmar said no.
Gas taxes fund street maintenance, not ad valorem taxes. Ad valorem taxes fund police and fire services,
and general city services of that nature. The other taxes included on the referenced tax notice are not city
taxes.

CLOSED PUBLIC HEARING

Commissioner Rogers thanked Ms. Delmar and her staff for their fine job and hard work on preparing the
budget.
City Commission Meeting
September 9, 2009
Page 14 of 37

Commissioner Van Sickle proposed a lower millage rate. Ms. Delmar said we could come down in the
millage rate between first and second reading, but we cannot go up.

Commissioner Thornhill made a motion to approve Ordinance 2009-20, adopting a FY09'10 millage rate
of 7.3277 mills, after first reading and public hearing. The motion was seconded by Commissioner
Rogers.

         Roll Call:

                   Commissioner Thornhill        “YES”
                   Commissioner Rogers           “YES”
                   Commissioner Howell           “YES”
                   Commissioner Wheeler          “YES”
                   Mayor Van Sickle              “YES”

         The motion carried 5-0

Ms. VanBlargan read Ordinance 2009-21 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, RATIFYING,
APPROVING, ACCEPTING AND ADOPTING THE ESTIMATES OF EXPENDITURES FOR THE
OPERATION OF THE SEVERAL DEPARTMENTS OF SAID CITY, AND ALL NECESSARY AND
ORDINARY EXPENSES OF SAID CITY FOR THE 2009-2010 FISCAL YEAR, APPROPRIATING ALL
FUNDS TO BE RAISED AND COLLECTED FROM ALL SOURCES SET FORTH IN THE ESTIMATE
OF REVENUES & BALANCES FOR SAID FISCAL YEAR, AND THE REPEALING OF ALL
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

Cliff Tonjes, 1001 Campbell Avenue, said at the July budget workshop the Commission discussed
reducing the Little League contract from $60,000 to $30,000. He said the City contracted that work out to
the Lake Wales Little League several years ago because it could not properly maintain those fields. In
June, an agreement was reached for $60,000. Ms. Delmar said that agreement was for this current fiscal
year. Mr. Tonjes said the Little League group would like to continue maintaining those fields, but it would
be impossible for $30,000.

Jim Maggard, president of the Lake Wales Little League, said about 10 years ago, when the Little League
program was offered for free, there were about 1,200 to 1,300 kids in the program. Last year, there were
only about 600 kids because of a $45.00 per child fee to play. He said his goal for the next few years is to
have a free program with 1,200 to 1,500 kids. Mr. Maggard said other organizations, such as churches
and ball teams, also use the fields. Every child should have an opportunity to play on the fields free. He
urged the Commission to keep the contract at $60,000 so they could properly maintain the fields without
increasing the charge to play.

Jim Hurst, Lake Wales Little League volunteer, said he has been a volunteer since 1982. The Lake Wales
Little League was founded in 1954 and is one of the oldest, if not the oldest, continuously running
programs in Lake Wales. The Lake Wales Little League is a not-for-profit organization. He said they have
a contract with the City to maintain the fields at a superior level. There are dangerously, substandard
lights with wood poles on the fields. A grant is being pursued to replace them for they were the only lights
and poles that were not destroyed by the hurricanes. Three bathroom buildings were built at the expense
of sponsors and are now city-owned buildings. Bathroom maintenance, supplies, and repairs are provided
by the Little League organization. The organization also provides the maintenance of two city-owned
mowers, field maintenance, fertilizer, Roundup, fuel, blades, payroll, payroll taxes, and workers
compensation. One of the mowers no longer covered by a warranty is in dire need of repair. Sponsors
have agreed to pay $1,700 for the parts and the City has agreed to pay the $561.00 labor cost. There
City Commission Meeting
September 9, 2009
Page 15 of 37

have been other repairs done at the expense of the organization outside the contract, such as a recent
broken water line, fence repair, and painting the buildings with paint purchased by the City.

CLOSED PUBLIC HEARING

Ms. Delmar reviewed the agenda information for adoption of the FY09’10 budget. She said if the
Commission does not wish to restore the recreation cuts, all or a portion of the unappropriated revenues
of $193,462 can be used for other purposes. Ms. Delmar recommended that when the Commission
considers appropriating the $193,462 that it considers adding a facilities maintenance staff person at the
same time. She said that the facilities maintenance department has consisted of two employees since the
department was created in the mid-1970's. Since that time, the number of buildings and other facilities
and playgrounds for which these employees are responsible has more than tripled. Routine maintenance
is nearly impossible to schedule because the two employees are continually responding to requests for
work that often reach the level of emergency repairs. Complaints that City facilities do not receive
adequate maintenance are justified, but this is the result of having too many facilities for existing staff to
attend to properly.

Mayor Van Sickle said he is in favor of adding a maintenance person because that is probably one of the
most critical areas. If we are planning to have a lot of heavy activity at the gym, then we need to repair the
building and staff it correctly. We need to lower the millage rate to reduce the tax bills for people during
these difficult economic times and so we can attract business. Mayor Van Sickle said reducing the millage
rate does not allow us to add every thing back. It will at least show we are trying to help all the people by
trying to reduce taxes and providing as much facilities as possible with what dollars we have. He said he
would love to look at reducing some of the City’s debt by paying off the 2006 Fire Truck Capital Lease,
but we cannot do that this year.

Commissioner Wheeler said he is not in favor of decreasing the Little League contract. He asked Mr.
Maggard what he thought would be an appropriate amount to cover the additional operational cost. Mr.
Maggard said the operational expense for this year was a negative $20,944.35. Commissioner Wheeler
asked if the City increased the contract enough to cover the additional operational expense, would it allow
them to reduce the $45.00 per child entry fee to $10.00. Mr. Maggard said no, but they are hoping to
reduce the fee a little each year beginning next year. He said his goal is to one day offer a free program.

Commissioner Wheeler said in this country there are certain things we do not want to mess with and the
Little League is one of them, because it is needed. When taking away from recreation, it puts a burden on
our Police Department because they have to keep up with people with not much to do. The more we can
help, the more we could save on the cost of providing police services. Commissioner Wheeler said Ms.
Delmar did a wonderful job at presenting the Commission with scenarios. His proposal is Scenario 3:
restore the Kirkland Gym contract at $69,198; add a facilities maintenance employee at $40,500. In
addition, restore the NW Complex field maintenance contract at $11,500 and increase the LW Little
League maintenance contract to $80,000 or match their cost.

Commissioner Howell said she would like to keep the gym open, take it out of the hands of the Boys and
Girls Club, and put it in the hands of city workers. That way, someone will be in charge of the building at
all times. She is in favor of restoring the Little League contract and the NW Complex field maintenance
contract, because we should not take everything from our children and adults in Lake Wales.
Commissioner Howell said she does not understand why the maintenance of the NW Complex could not
be incorporated into the Little League field contract. She said she did not know the Commission was
getting a 3% raise. Commissioner Wheeler said everyone is getting a 3% raise. Commissioner Howell
said everyone needs a raise, but she would not want to raise fees so high that our children cannot
participate in anything in Lake Wales.

Commissioner Rogers said everyone is concerned about the youth in Lake Wales and everyone is
concerned about taxes. He asked Ms. Delmar what she would recommend to be the most feasible plan
for the City that would leave money for reserves. Ms. Delmar said the scenario presented by
Commissioner Wheeler; i.e., fund the Kirkland Gym contract with the Boys and Girls Club, increase the
City Commission Meeting
September 9, 2009
Page 16 of 37

Lake Wales Little League field maintenance contract to $80,000, fund the facilities maintenance
employee, and fund the NW Complex field maintenance contract would allow a return to fund balance of
$22,264. Commissioner Wheeler said that is almost the same as Scenario 4.

Ms. Delmar said we have no other recreational options for our young people and we have no recreation
program or a recreation director to put programs together. The Lake Wales Little League and the Kirkland
Gym are about the only recreational options that we have. To take those away at this point would leave
our children with nothing to do. This is certainly money well spent. Commissioner Rogers said only if we
could do it without raising the ad valorem.

Ms. Delmar said we have to caution that, going into the following fiscal year, the $300,000 [that we’re
using to fund raises and recreation next year] will be gone and, in the meantime, we will have established
a higher payroll cost because we are adding employees and giving a pay increase. We will have to make
that up with additional revenues the following year.

Commissioner Howell said she discussed today with Ms. Delmar the possibility of getting two part-time
30-hr workers for the Kirkland Gym instead of two full-time employees. Ms. Delmar said each 30-hr part-
time worker would cost approximately $20,000, which would be a total cost of $40,000 compared to the
$57,000 for two full-time employees with the Boys and Girls Club. Commissioner Rogers said that due to
the condition of the gym, we should use city employees instead. Ms. Delmar said either way, there has to
be two employees in the gym at all times during the time it is open. Commissioner Rogers said we need
to catch whoever is vandalizing the gym and put them in jail, because there is no sense in people abusing
the city taxpayer’s property.

Commissioner Thornhill apologized for not being able to attend the June budget workshop. He said he
does see where it mentions the soccer fields. Ms. Delmar said the soccer fields are a slightly different
situation. That was a FRDAP and Polk County grant-funded project. The City is obligated to maintain the
soccer fields for public use, and a full-time city employee maintains those fields. Commissioner Thornhill
asked if the soccer fields could be bid out. Ms. Delmar said yes, as long as we are maintaining them.
Staff is in the process of obtaining quotes for that maintenance. We bid that out in the past, but it was
more feasible at that time to hire an employee, because the contract was going to cost the City about
$100,000. Harold Gallup, Economic Development Director, said the soccer fields have not had the benefit
of longevity in terms of being nurtured, manicured, fertilized, etc. like the ball fields. It will take a great
number of years to get there. Commissioner Thornhill said we could still bid the soccer fields out to see if
we could save money.

Commissioner Thornhill asked the Boys and Girls Club representative who was present if they contracted
the gym out each year. The representative said no, the Boys and Girls Club maintains the gym with two
employees. They are responsible for cleaning the bathrooms and doing all the necessary repairs,
replacing light bulbs, etc. Commissioner Thornhill said he would like to see his tax money well spent. If we
want to attract people and businesses, we have to offer them other things besides a bike path. The
younger people do not seem to enjoy a walking path as much as the older people. He said he is in favor
of having two-full time employees at the gym, because we have to take on the responsibility. We have to
make sure there is a sign-in sheet so we can monitor who is in the gym at all times. That way, we will
know who damages what. Commissioner Thornhill said he is in favor of Scenario 3 with the addition of
the $20,000 for the Little League field maintenance and the $11,500 for the NW Complex field
maintenance contract.

Mayor Van Sickle said there is still a difference in the $2.8 [million projected fund balance] number versus
the $2.5 number that Ms. Delmar is using [in the budget as fund balance forward]. Dropping below the 7
mill rate may really be only psychological. After calculating his property taxes, he said it would only
change about $30.00 as compared to last year; but if we lower the millage rate, if would help attract more
business if the economy turns around. It is starting to change, but it is not going to happen in the next six
months. However, he would like to be prepared when people go to vote on coming to Winter Haven or
coming to Lake Wales. Mayor Van Sickle asked if we could lower the millage rate. Ms. Delmar said we
would have to reduce fund balance if we use the unappropriated revenue [to fund Scenario 3]. We are
City Commission Meeting
September 9, 2009
Page 17 of 37

anticipating a $300,000 increase in fund balance at the end of this September, but we are appropriating
$183,000 of that balance forward to fund our capital next year. That money comes from the savings in the
fuel budget. So, another $200,000 would go into fund balance. Mayor Van Sickle said we would still have
the $2.6 million and we are budgeting on $2.5, so we would have $100,000, which is a little tighter. He
asked if it is that risky. Ms. Delmar said it is $200,000 that we would not be putting into fund balance at
the end of 2009/2010. Mayor Van Sickle said we are still over the magical number as recommended by
the auditors. Ms. Delmar said we are at 14% now, which is the base level that the auditors recommended.
If we lower the millage rate this year, it would be difficult to raise it next year if we need to. It would
probably require a super majority vote to increase the millage rate from 6.9917 mills back to where it is
now at 7.3277. It could present a significant future problem, but if the economy turns around it might be
okay.

Commissioner Howell asked Ms. Delmar if she happened to work out the numbers to see how low we
could lower the millage rate, so we would not be sweating at the end of next year.

Dorothy Pendergrass, Director of Finance, said that, coming from the Five-Year Forecast standpoint, her
concern would be having sufficient recurring revenue to fund recurring expenditures. A 3% increase for
employee raises in this budget would be a recurring expenditure using a non-recurring revenue source. It
is optimistic that the market is turning around and that there is going to be recurring revenue to cover the
$268,000 being built into payroll expense as we move forward and also the millage decrease. The millage
rate can be lowered as much as the Commission would like, but the money would come out of reserves
this year and would have to be covered next year. We need to maintain our reserves where we need our
reserves to be and hold our debt down and make it manageable, so we do not have a lot of unfavorables.

Commissioner Wheeler pointed out that if we make our community more amenable to businesses by a
combination of this budget amendment proposal and the Mayor’s millage reduction, we could have more
businesses coming into town. Our fee revenue and tax revenue would go up. He commented that
everything is a gamble, nothing in life is certain, and sometimes we have to take a leap of faith.

Mayor Van Sickle said he thinks that the consensus of the Commission is to fund what has been stated
without lowering the millage rate to 6.9917 mills.

Ms. Delmar asked if what she is hearing is to increase the Little League field maintenance contract to
$80,000, add a facilities maintenance employee, add back the NW Complex field maintenance contract,
and staff the Kirkland Gym with two full-time employees or two 30-hr part-time employees.

Mayor Van Sickle asked how many hours a day the gym is in use. Mr. Gallup said it varies. During the
summer, the gym is open almost all day. During the school year, it is open after school for a while and
then again in the evening. To keep the gym open seven days a week for 30 hours a week would be
tough. Mayor Van Sickle said a 40-hour week would be a challenge. Mr. Gallup said if we were to make
the gym a controlled facility with set hours we would need two 40-hour people there. There may be a few
hours a day where only one employee would be there. Commissioner Thornhill said we might need to
look at getting volunteers to fill in the gap.

Curtis Knowles, Boys and Girls Club, said the gym is currently staffed seven hours a day during the week
and six hours a day on Saturdays and Sundays. Currently, the gym is open fewer hours a day during the
week to allow for the necessary repairs. He said when the Boys and Girls Club first took over the gym
there were two part-time employees there. A lot of the damage occurred due to break-ins and there are
police reports to show that. Some of the damage is due to kids playing.

Commissioner Thornhill made a motion to approve Ordinance 2009-21, adopting a budget for FY09’10 as
amended after first reading and public hearing. The motion was seconded by Commissioner Howell.

         Roll Call:

                   Commissioner Thornhill        “YES”
City Commission Meeting
September 9, 2009
Page 18 of 37

                   Commissioner Howell           “YES”
                   Commissioner Rogers           “YES”
                   Commissioner Wheeler          “YES”
                   Mayor Van Sickle              “YES”

         The motion carried 5-0.

CONSENT AGENDA

Agenda Item 6.            APPROVAL OF MINUTES: August 17, 2009, Budget Workshop Meeting;
                          August 18, 2009, Regular Meeting; August 20, 2009, Special Meeting

Agenda Item 7. 9-1-1 Dispatch Interlocal Agreement with Polk County

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Jerry Brown, Fire Chief]

SYNOPSIS

The City Commission will consider approval of the 9-1-1/Dispatch Interlocal Agreement between the City
and Polk County for fire dispatch services.

RECOMMENDATION

It is recommended that the City Commission authorize the City Manager to execute the attached
9-1-1/Dispatch Interlocal Agreement which states that the City of Lake Wales will pay Polk County
$27,100 for dispatch services during the 2009-2010 fiscal year.

BACKGROUND

All 911 calls are received at the 911 Call Center on Brice Blvd. in Bartow, regardless of whether they
originate inside or outside of the city limits of Lake Wales. Emergency calls are then transferred to the
Fire/EMS dispatch center on Clower Lane in Bartow. Dispatchers notify the fire department by radio
pager and continue communications with responding personnel and equipment for the duration of the
emergency call.

This agreement is similar to the agreement entered into by the cities of Winter Haven, Haines City,
Auburndale, Frostproof, Fort Meade and Mulberry.

OTHER OPTIONS

Do not approve the agreement and hire full time dispatch personnel.

FISCAL IMPACT

The $27,100 is included in the proposed FY 09-10 Budget as presented to the Commission.

[End agenda memo]

Agenda Item 8.            Award of Bid: Force Main Cleaning for the Eagle Ridge Mall and Southside Force
                          Main Areas

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Sarah Kirkland, Utilities Project Manager]
City Commission Meeting
September 9, 2009
Page 19 of 37


SYNOPSIS

Staff is requesting that the Commission consider awarding the bid for force main cleaning services to
Professional Piping Services.

RECOMMENDATION

It is recommended that the City Commission take the following actions:

1. Approve the award of bid #09-179 to Professional Piping Services for the Eagle Ridge Mall and
   Southside Force main cleaning in an amount not to exceed $80,000.

2. Authorize the City Manager to execute the appropriate documents, on the City’s behalf, in regards to
   the cleaning and restoration service.

BACKGROUND

The Eagle Ridge Mall force main and the Southside force main require annual cleaning due to the
distance both these lines have to travel to reach the wastewater treatment plant and the low flow
conditions that both these lines are experiencing due to the lack of development in both areas. Sediment
such as sand, plastics and paper tend to settle to the bottom of the pipe due to the low velocities of the
liquid pushing the sediment. The method proposed for the cleaning of these sections of force main is
called the “progressive poly pig procedure”, hence the name “pigging”.

Staff issued an invitation to bid on force main cleaning services with a bid opening date of August 12,
2009 and received two responsive bids (Infrastructure Restoration, Inc and Professional Piping Services),
of which one was disqualified (Infrastructure Restoration, Inc). The disqualified bidder failed to produce
all the required documentation as requested by the bid document. The particular items missing in the bid
request were:

    1. Item B #6-An experienced supervisor shall provide a list of projects, all done within the last five
       years.
    2. Business References
    3. Contractor Responsibilities Item D-Equipment Documentation required as part of the contractor’s
       bid submittal.

Therefore, staff requests commission approval to award the bid for force main cleaning services to
Professional Piping Services. Professional Piping Service (PPS) has performed this cleaning in the past
with staff being very satisfied with their job performance.

FISCAL IMPACT

$80,000 is budgeted in the Wastewater Division’s FY ‘08-‘09 M & R Lines and Mains Operating Budget
for this purpose. Funding is provided from the utilities operating revenue.

OTHER OPTIONS

None. Without this required annual cleaning, the force main would become plugged and become
inoperable. This in turn would cut off the sewer service for the developments that are being serviced by
these two force mains.

[End agenda memo]

Agenda Item 9.            Award of Bid – Health Insurance Coverage
City Commission Meeting
September 9, 2009
Page 20 of 37

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Sandra D. Davis, Human Resources Director]

SYNOPSIS

The Commission will consider awarding the bid for Health Insurance coverage to Aetna.

RECOMMENDATION

Staff recommends that the City Commission take the following action:

1.       Award the Bid for Health Insurance to Aetna (City pays 100% for employee)

2.       Authorize the City Manager to execute all applicable contract documents.

BACKGROUND

In an effort to control insurance costs and continue to offer City employees competitive insurance benefits, the
City’s Broker/Agent shopped the market for Health Insurance coverage. Health insurance premiums have been
rapidly increasing over the last few years. Factors fueling the increases are increasing numbers of hospital
admissions, higher charges for hospital care, an aging workforce, increased use of prescription drugs, an
increase in the number of claims and an increase in expensive claims. In spite of the health insurance market,
we have been able to reduce cost for FY 09’10 due to a reduction in the City’s claims over the last two years.


We received a total of five bids in response to our request for proposals. Bids included levels of insurance
coverage, i.e. amount of deductibles, associated out of pocket expenses and physician co-payments, etc.
Humana declined to bid on health insurance coverage. We evaluated the proposals received based on
provision of the highest level of coverage at the most economical costs to the City and its employees. The
results of the health insurance bids are as follows:


                          Company             F UNDING           B ID A MOUNT

           AvMed                              Fully Funded                 1,296,475.92
           Cigna                              Fully Funded                 1,263998.76
           United Healthcare                  Fully Funded                 1,202,029.44
           Florida League of Cities           Fully Funded                 1,170,411.48
           Aetna                              Fully Funded                 1,152,620.04



Employees will continue to pay 100% of the premium for dental and vision coverage. The proposed
employee rate for medical insurance is $497.68 and the family rate is $497.65. The current family rate
with Cigna is $503.00.

FISCAL IMPACT

Awarding the bid to Aetna will result in a 1.6% increase over current year costs per employee. This is 9.4% less
than the amount included in the proposed 09’10 budget and allows the reallocation of $83,400 for other
purposes.

OTHER OPTIONS
City Commission Meeting
September 9, 2009
Page 21 of 37

Don’t approve any of the recommendations.

[End agenda memo]

Agenda Item 10.           Auditing Services Agreement and Audit Engagement Letter

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Dorothy Pendergrass, Finance Director]

SYNOPSIS

Acceptance of the proposal submitted by Purvis Gray & Company, LLP will provide for professional
auditing services for fiscal year ending September 30, 2009, with the option to renew for four additional
years.

RECOMMENDATION

The Audit Selection Committee recommends that the City Commission execute an agreement with Purvis
Gray & Company, LLP for professional auditing services.

Pursuant to the recommendation of the Audit Selection Committee, staff recommends that the City
Commission take the following actions:

1. Authorize the City Manager to execute the Auditing Service Agreement between the City of Lake
   Wales and Purvis Gray & Company, LLP., after approval by the City Attorney; and ,

2. Approve the Auditing Engagement Letter submitted by Purvis Gray & Company, LLP for the City’s
   financial statements for Fiscal Year Ending September 30, 2009.

BACKGROUND

On July 7, 2009, the City Commission approved issuance of a request for proposal for professional
auditing services. On August 4, 2009, in compliance with state statute 218.391, the City of Lake Wales
established an audit committee. The primary purpose of the audit committee is to assist the governing
body in selecting an auditor to conduct the annual financial audit. The Audit Selection Committee met on
August 25, 2009 to:

    1. Evaluate proposals provided by qualified firms.
    2. Rank and recommend in order of preference no fewer then three firms deemed to be the most
       highly qualified to perform the required services after considering the factors established within
       the RFP.

The audit selection committee members who evaluated the firms were:

    1.   Commissioner Lee A. Wheeler, III
    2.   Linda Kimbrough, Board Member of General Employee Pension Plan
    3.   Robert Kelly, Board Member of the Airport Authority
    4.   Bridget Denihan, Accounting Manager

The audit selection committee ranked the top three firms as follows:

    1. Purvis Gray & Company LLP
    2. Crown Howarth
    3. James Moore & Co
City Commission Meeting
September 9, 2009
Page 22 of 37

The audit selection committee recommends awarding the auditing services agreement to Purvis, Gray &
Company, LLP. Evaluation included the following factors:

    1.   The firm’s experience/performance on comparable government engagements (20 points),
    2.   Quality of the firm’s professional personnel to be assigned to engagement (20 points),
    3.   Price quote for service (20 points), adequacy of audit approach (20 points),
    4.   Approach to the management letter (10 points), and
    5.   Familiarity with Certificate of Achievement in Financial Reporting (10 points)

A total of 100 points was possible from each evaluator with an aggregate possible evaluation score of 400
points for each firm.

Mr. Joseph Welch of Purvis, Gray & Company has provided an Audit Engagement Letter for the fiscal
year ending September 30, 2009. The letter provides a detailed description of the services that will be
provided through the audit process.

The Auditing Service Agreement is for a period of five years. The agreement may be terminated at will by
the City at any time by giving thirty (30) days written notice thereof or at the end of any year by refusing to
sign the succeeding years’ annual engagement letter. The Auditors may terminate the Agreement at the
end of any year by simply refusing to sign the succeeding years’ annual engagement letter.

FISCAL IMPACT

The all-inclusive maximum fee for the City audit report and interim work will not exceed $67,000 for
2008/2009 audit. The next four years have all-inclusive maximum price options of:

         2009/2010                $ 69,000
         2010/2011                  71,100
         2011/2012                  73,200
         2012/2013                  75,400

The $67,000 proposed fee for 2008/2009 represents a 26.4% decrease ($24,020) in comparison to the
2007/2008 audit fees of $91,020, which was charged for performing five separate audits. This does not
included a discount of $2,225; actual fees original were projected as $93,245.

The $67,000 proposed fee for 2008/2009 represents a 31.8% decrease ($31,240) in comparison to the
projected 2008/2009 fees of $98,240, which were expected to be charged prior to the request for
proposals and consolidation of the five separate audits.

[End agenda memo]

Mayor Van Sickle, referring to Agenda Item 8, Award of Bid: Force Main Cleaning for the Eagle Ridge
Mall and Southside Force Main Areas, said the Commission is being asked to approve an amount not to
exceed $80,000. He said he saw prices for various feet of pipe, but not for how many feet of pipe we want
to have cleaned for the $80,000. Sarah Kirkland, Utilities Project Manager, said the price was based on
the size of the pipe and the footage for that particular size. Based on that information, the price came to
$80,000. Mayor Van Sickle asked Ms. Kirkland to include the bid package in the agenda packet in the
future. Ms. Delmar asked the Mayor if he only wanted the specifics of the bid and not the repetitive
material standard to every bid. Mayor Van Sickle said yes.

Commissioner Thornhill made a motion to approve the Consent Agenda. The motion was seconded by
Commissioner Rogers.

         By voice vote:

                   Commissioner Thornhill          “YES”
City Commission Meeting
September 9, 2009
Page 23 of 37

                   Commissioner Rogers             “YES”
                   Commissioner Howell             “YES”
                   Commissioner Wheeler            “YES”
                   Mayor Van Sickle                “YES”

                   The motion carried 5-0

OLD BUSINESS

Agenda Item 11.           Ordinance 2009-14, Amendment to Alcoholic Beverage Regulations – Wine & Beer
                          Bars in C-1 Zoning District – 2nd Reading & Public Hearing

Agenda Item 11 was pulled from the agenda.

Agenda Item 12.           Resolution 2009-11, Polk County Comprehensive Water Supply Plan

Ms. Kirkland reviewed Agenda Item 12. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Sarah Kirkland, Utilities Project Manager]

SYNOPSIS

This resolution expresses the City’s support of the 2009 Polk County Comprehensive Water Supply Plan
and approval of the future water supply project listing.

STAFF RECOMMENDATION

It is recommended that the City Commission approve Resolution 2009-11 supporting the Polk County
Comprehensive Water Supply Plan and approving the submission of the complete water supply project
listing to the Southwest Florida Water Management District for inclusion in the Regional Water Supply
Plan.

BACKGROUND

At this time, Lake Wales is the only city that has not approved the plan. County staff is waiting for us to
adopt a resolution indicating our support or lack of support for the plan. In either case, they must move
forward for adoption of the plan by the County Commission.

The Southwest Florida Water Management District (SWFWMD) has mandated that the pumping of
additional groundwater will not be permitted after 2013. In other words, as growth occurs after 2013 and
there is a need for additional water, groundwater will not be a permitted source for that additional water.
Instead, water utilities, including cities and the county, will have to find alternate sources of water to meet
the needs of growth.

Cities and the County entered into an agreement to address regional water supply issues in 2006. The
County hired a consultant to identify additional sources of water, and a countywide plan was issued for all
the cities to review and approve. The plan identifies future water supply projects categorized by short-
term, long-term, and conservation.

The initial plan that County staff submitted to us for review had one particular issue that was of concern to
City staff; i.e. the transition from private water supply to public water supply as development occurs and,
in particular, the assumption of the water pumping capacity that is currently assigned to agricultural wells.
Many of these wells are located on the east side of the county, and a number of them are located within
the Lake Wales utility service area. Because the plan initially called for County control of the capacity of
all the agricultural wells in Polk County, regardless of location, the City was not in favor of approving the
City Commission Meeting
September 9, 2009
Page 24 of 37

plan. Such control by the County would have far-reaching effects on the ability of cities in the county to
grow in the future.

City staff initiated a discussion of this plan at the October 30, 2008 meeting of the 27 East Coalition. The
coalition asked that city representatives seek funding from their respective city commissions for an
engineering review that would address the mutual concerns of the coalition cities. Gerry Hartman of GAI
Consultants would conduct the review and prepare a report that would then be presented to each city
commission with a recommendation for moving forward. Although the Lake Wales City Commission
approved the City’s share of funding for this engineering review, the funding plan was not approved by all
of the cities. As a result, the review contemplated by the 27 East Coalition did not take place.

The County’s Plan has been revised in an attempt to address the City’s concerns. The Plan states that
there are two types of groundwater projects that the Lake Wales could potentially utilize for water supply
needs; i.e. the transition of preciously permitted quantities of water from non-public to public supply and
withdrawing water from the Lower Floridian Aquifer. The Plan states that the City would have the “right of
first refusal” regarding assumption of the water pumping capacity that is currently assigned to agricultural
wells in its water service area.

The final goal of the updated Water Supply Plan is to provide a clear and concise path for the County and
each of the 17 local governments to follow with regards to water supply planning for the planning period.
The City of Lake Wales, as one of the 17 local governments, is specifically analyzed as part of the overall
water supply planning efforts. The City has the choice of implementing any of the specifically identified
project options as needed to meet future water supply needs.

Resolution 2009-11 is proposed for the purpose of expressing support of the County’s water supply plan.
Pursuant to the advice of Gerry Hartman, we are supporting the plan with the following stipulations:

    a. The City’s water service area is defined in the City of Lake Wales/Polk County Water and
       Wastewater Service Territorial Agreement, Contract No. 96-2 as amended on July 29, 2008 by
       the City of Lake Wales/Polk County Florida Settlement of (1.) Past Due Water Bills; (2.)
       Agreement as to Service Area and Assets Ownership and (3.) Future Water Service Interlocal
       Utility Agreement.

    b. All existing water supply facilities, whatever the present use, within the City’s water service area
       vest with the City and will be incorporated into the City’s future resources rather than the into the
       future resources of the County.

    c.   The City can develop not only alternative water supply projects as stated in the County’s master
         plan but also alternative water supply projects as listed in the City’s master plan or other projects
         that are developed cooperatively in the future.

Also with the advice of Gerry Hartman, Resolution 2009-11 states that the City of Lake Wales takes
exception to the Plan’s water supply and demand projections but fully supports the concepts of the Plan.

OPTIONS

Do not participate in the County plan.

FISCAL IMPACT

Participation in the Plan requires no cost on the City’s part because the Plan was funded by SWFWMD in
an effort to assist the surrounding municipalities in their efforts in long range planning for growth. If the
Commission chooses not to participate in the 2009 Polk County Regional Water Supply Plan, the City
would assume the cost of producing a separate plan of its own.
City Commission Meeting
September 9, 2009
Page 25 of 37


[End agenda memo]

Ms. VanBlargan Read Resolution 2009-11 by title only.

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LAKE WALES, FLORIDA,
SUPPORTING THE 2009 POLK COUNTY COMPREHENSIVE WATER SUPPLY PLAN, APPROVING
THE PROJECT LISTING OF SAID PLAN, AND APPROVING THE SUBMISSION OF THE COMPLETE
PROJECT LISTING TO THE SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT FOR
INCLUSION AS PART OF THE REGIONAL WATER SUPPLY PLAN.

Commissioner Thornhill asked if the stipulations needed to be read into the motion. Ms. Delmar said
Danny Kuschner of the Southwest Florida Water Management District is here to talk about why we need
to adopt the Water Management Plan and Gerry Hartman of GAI Consultants is here to talk about why we
have the stipulations.

Mr. Kuschner said the Water Supply Plan is about a year and a half in the making. It involves the county,
all 17 municipalities, and water suppliers, who came up with a list of projects in a three-volume master
plan to the county. Each of the 17 municipalities has or will have received an individual report showing
ways that they can come up with alternative water supplies in the future. The Water Management
District’s Executive Summary did not mention that there is no fiscal impact to the City unless it chooses to
do some of the projects in the future to come up with an alternative water supply. The actual plan itself
was about a million dollars, of which the Southwest Florida Water Management District funded 45%, the
county funded 45%, and the South Florida Water Management District funded 10%.

Commissioner Thornhill asked how many of the 17 municipalities adopted the Water Supply Plan. Mr.
Kuschner said only the major cities within Polk County.

Mr. Hartman said the District did a great job on the Water Supply Plan. He said he recommended that the
City approve the plan only with some necessary stipulations:

         1. Stipulation A is important because the City’s service areas are documented by an Interlocal
         Agreement, which was not defined in the plan correctly. The population projections are based on
         square miles of turf, which limits the water use capabilities on permits if you have a smaller
         service area than you really have.

         2. Stipulation B protects property rights. It states that all existing water supply facilities,
         whatever the present use, within the City’s water service area vest with the City and will be
         incorporated into the City’s future resources rather than into the future resources of the County.

         3. Stipulation C is important because there may be other water supply projects that the City may
         wish to implement that are not listed in the plan and it should not be prohibited from doing so.
         This is important because in order to get funding through the SRF program for water projects they
         have to be consistent with the County Water Supply Plan.

Mr. Hartman said these three stipulations show the maximum support that we can provide. We want to
show that support with the corrections to make sure we have the appropriate service area, the water
supplies within our service area vest with this community, and if we come up with another alternative
water supply project it can be considered as part of the Water Supply Plan so we can get an SRF loan
through FDEP or another entity.

Commissioner Howell made a motion to approve Resolution 2009-11 with the stipulations. The motion
was seconded by Commissioner Wheeler.

         Roll Call:
City Commission Meeting
September 9, 2009
Page 26 of 37

                   Commissioner Howell             “YES”
                   Commissioner Wheeler            “YES”
                   Commissioner Rogers             “YES”
                   Commissioner Thornhill          “YES”
                   Mayor Van Sickle                “YES”

         The motion carried 5-0

Agenda Item 13.           2006B Wachovia Line of Credit

Ms. Pendergrass reviewed Agenda Item 13. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Dorothy Pendergrass, Finance Director]

SYNOPSIS

A decision is requested regarding use of the balance remaining in the 2006B Wachovia line of credit for
expansion of the flex-net project.

RECOMMENDATION

If the City Commission wishes to use $550,000 of the 2006B Wachovia line of credit for the flex-net
equipment project, the City Commission needs to authorize the City Manager to draw down $550,000 for
this purpose before September 30, 2009.

If the City Commission does not wish to use financing for the flex-net equipment project, no action is
needed.

BACKGROUND

In 2006, the City Commission adopted Resolution 2006-14, Utility System Revenue Note, Series 2006B
which authorized issuance of a note in the principal amount not to exceed $3,100,000 to finance the cost
of constructing and acquiring certain additions, extensions and improvements to the City’s utility system
and pledged the revenues of the utility system for the payment of the note.

The Series 2006B note is a line of credit until October 1, 2009, at which time it converts to a fixed rate loan
with a seventeen-year amortization status. The debt serv1ce interest rate on the seventeen- year fixed rate
loan shall be calculated on September 29, 2009 based on the sum of 74% of the LIBOR rate plus 95 basis
points. To a provide meaningful comparison, if this rate was calculated on July 29, 2009, the rate would be
1.1609%, which would be fixed for seventeen years. If the City were to go out for financing at this time, staff
estimates a seventeen-year interest rate to be between 3.75% to 4.35%, at fair market value. Currently, the
City has drawn down $2,550,000 of this line of credit, which is projected as having annual debt service
costs of $167,434. Repayment of principal and interest will begin during fiscal year 2009-20010.

Of the remaining $550,000 line of credit, staff has identified the expansion of the flex-net project as
eligible for debt service funding. The City Commission, during the August 18th Commission meeting,
requested a review of the effects on utility operating expenses relating to the possible use of the 2006B
funding for flex-net equipment.

Flex-net equipment provides the ability to electronically monitor water meter usage. With the use of flex-
net equipment, utility operating costs relating to meter reading efforts are projected to decrease by
$37,533. The utility department would be able to reallocate resources for other uses with the use of flex-
net equipment. Revenues are expected to increase due to the replacement of old water meters and more
accurate readings. The actual increases in revenues are unknown. Based on a projected fixed interest
rate of 1.25%, debt service costs are estimated to increase by $32,830.
City Commission Meeting
September 9, 2009
Page 27 of 37

FISCAL IMPACT

    1. A full purchase of flex net equipment is not possible, at this time, with current cash flow balances.
       Without purchasing this equipment, utility operating cost and debt service balances will continue
       as currently budgeted.

    2. With the purchase of the flex net equipment using the 2006B financing of $550,000:

         a. Utilities staff can complete an additional 40% of the flex-net project. Staff has already
            completed 20% of the project, and the remaining 40% is estimated to cost an additional
            $511,000, to be implemented as funding is available.
         b. Revenues are expected to increase due to the replacement of old water meters and more
            accurate readings. Actual revenue increases are unknown.
         c. Operating costs relating to meter reading activities would decrease by $37,553. The utility
            department would reallocate these resources for other uses.
         d. Annual debt service costs would increase by $32,830.

    3. Market financing of $550,000, is projected to provide the same level of completion and the same
       level of operating cost savings, but is expected to result in annual debt service costs of $40,306,
       resulting in net annual cost increases of $7,476 compared to the 2006B-loan option.

As with all purchases, if the City were able to purchase items without the use of financing this would result
in the lowest overall cost but the greatest single annual cash flow decrease. If the City decided to use
financing options, the 2006B-loan option would result in the lowest financing cost over the life of the loan
and also lower annual debt service payments. The 2006B financing relating to the $550,000 principal
amount is estimated as having annual debt service payments of $32,830, with total interest cost over the
life of the debt issuance of $58,112. A current estimated market financing of $550,000 for a seventeen
year term, is estimated as having annual debt service payments of $40,307, with total interest cost over
the life of the debt issuance of $185,209. interest costs of the 2006B-loan of $58,112, which is $127,097
less then the projected Market Rate cost of $185,209.

[End agenda memo]

Commissioner Rogers said he is not in favor of borrowing any money that is not absolutely necessary at this
time. Our current debt service is high and we are trying to keep the taxes down. If we keep borrowing money,
we would have to increase taxes. Commissioner Wheeler and Commissioner Thornhill agreed.

The consensus of the City Commission was to cap the Wachovia loan at $2.5 million and let the contract run out
without drawing down the remaining balance.

NEW BUSINESS

Agenda Item 14.           Ordinance 2009-22, Five Year Capital Improvement Plan – 1st Reading

Ms. Delmar reviewed Agenda Item 14. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The City Commission will consider adoption of the proposed 5-Year CIP for fiscal years 2009-2010
through 2013-2014. The proposed 5-Year CIP totals $34,979,616 in building and infrastructure
improvements, equipment purchases and land acquisition.

RECOMMENDATION
City Commission Meeting
September 9, 2009
Page 28 of 37

It is recommended that the City Commission approve after first reading Ordinance 2009-22 adopting the
Five-Year Capital Improvement Plan for fiscal years 2009-2010 through 2013-2014.

BACKGROUND

In accordance with section 6.05 of the City Charter, Ordinance 2009-22 approves and adopts the
proposed 5-year Capital Improvement Plan (CIP) for the period FY09'10 through FY13'14. The 5-Year
CIP document was previously distributed to the City Commission for review. Capital improvements and
capital acquisitions proposed for Year 1 of the 5-Year plan are incorporated into the FY09'10 budget, as is
appropriation of funding sources necessary to implement Year 1 of the plan.

The 5-Year CIP document includes a list of all capital facility and infrastructure improvements which are
proposed to be undertaken during the next five years and supporting information to explain the necessity
for the improvements. In addition, the CIP includes all capital equipment proposed for acquisition during
this period. Cost estimates, method of funding and time schedule for the proposed improvements and
equipment acquisitions are identified in the document.

The proposed 5-Year CIP totals $34,979,616 and includes $767,050 in land acquisition, $2,517,630 in
equipment acquisition, $4,672,060 in building improvements, $26,414,876 in infrastructure and recreation
improvements and $608,000 in other capital outlay.

Improvements and equipment needs for the next 5 years were submitted by department heads with a
justification of necessity and a recommended time schedule for completion or acquisition. These requests
were prioritized by the City Manager in view of the available funding resources and urgency of need and
either retained in the proposed 5-Year Plan or deferred until future 5-Year plans are developed.

Items included in the proposed 5-Year CIP can be classified in three categories as follows:

         1    -    Corrects existing or impending deficiency
         2    -    Improves productivity/efficiency or permits reallocation of existing resources
         3    -    Enhances quality of life

Items in Category 1 comprise 22.2% of the cost of the CIP ($7,677,717). These are improvements and
equipment acquisitions which are urgently needed to correct or prevent system or infrastructure failures,
threats to the public safety or welfare, or decline of service levels. Some of our currently utilized
equipment is 10-20 years old or older with high maintenance costs and low operational reliability, making
replacement a high priority. Also included in this category is the $1 million wastewater treatment plant
rehabilitation.

Items in Category 2 are equipment acquisitions or improvements that will improve productivity and
efficiency or otherwise enhance current service levels. These items represent 64.6% of the cost of the
CIP ($22,355,225).

Items in Category 3 are improvements in the area of Culture/Recreation which are viewed as important to
the community in terms of enhancing the quality of life but which might receive a lower priority in view of
the urgent needs which must be addressed. These items represent 13.2% of the cost of the CIP
($4,571,674), however 33.3% of this cost ($1,522,800) is funded by state, county or federal grants or
donations from private sources.

FISCAL IMPACT

Some of the improvements proposed for the utility system are eligible for low-interest SRF financing. With
the exception of the Wastewater Treatment Plant rehabilitation and upgrade improvements which will
require financing, it is anticipated that operating revenues and impact fees will be sufficient to fund the
utility system improvements included in the CIP. Funding of the non-utility system components of the CIP
requires no new taxes or fee increases for our citizens but will be accomplished through utilization of
City Commission Meeting
September 9, 2009
Page 29 of 37

existing cash surpluses and current year operating revenues, future grants, private contributions, and
impact fees.

Costs of all capital improvements and equipment acquisitions are distributed over 5 years as follows:

                                 Year 1 - FY2009'10                      9,576,073

                                 Year 2 - FY2010'11                      5,092,405

                                 Year 3 - FY2011'12                     10,470,859

                                 Year 4 - FY2012'13                      4,652,887

                                 Year 5 - FY2013'14                      5,187,392


                                 5 Year Total                           34,979,616

All items scheduled for Year 1 are included in the proposed FY09'10 operating budget presented to the City
Commission for consideration. Changes since the proposed budget was originally presented to the City
Commission on August 11 are as follows:

             38,269 Adding grant-funded mobile radios for Fire Department
            250,000 Adding grant-funded Kiwanis Park improvements
            748,762 Correcting cost of grant-funded Airport runway extension from $335,634 to $1,083,496
            122,692 Correcting cost of grant-funded Airport MITL project from $196,205 to $318,897
             -40,000 Deleting Airport fuel truck funded by General Fund subsidy
      ___________
          1,119,723 Total change in Year 1 (FY09'10) Capital Outlay budget from original document

OTHER OPTIONS

Items may be re-prioritized or deleted from the 5-Year Plan, and items not currently included may be
added. The City Commissioners may choose to defer adoption of the Plan until a later date, however,
adoption of a 5-year capital program is required by City Charter.

[End agenda memo]

Ms. VanBlargan read Ordinance 2009-22 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, RATIFYING, APPROVING,
ACCEPTING AND ADOPTING A 5-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2009-
2010 THROUGH 2013-2014; REPEALING ALL ORDINANCES IN CONFLICT WITH THIS ORDINANCE
AND PROVIDING FOR AN EFFECTIVE DATE.

Commissioner Thornhill made a motion to approve Ordinance 2009-22 after first reading. The motion was
seconded by Commissioner Howell.

         Roll Call:

                   Commissioner Thornhill             “YES”
                   Commissioner Howell                “YES”
                   Commissioner Rogers                “YES”
                   Commissioner Wheeler               “YES”
                   Mayor Van Sickle                   “YES”
City Commission Meeting
September 9, 2009
Page 30 of 37


         The motion carried 5-0.

Agenda Item 15.             Ordinance 2009-23, FY08’09 Budget Amendment #3, 1st Reading

Ms. Delmar reviewed Agenda Item 15. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The Commission will consider adoption of the third amendment of the FY08'09 Budget adopted on
September 16, 2008.

RECOMMENDATION

It is recommended that the City Commission approve Ordinance 2009-23 after first reading.

BACKGROUND

Ordinance 2008-34 estimating revenues and appropriating funds for Fiscal Year 2008-09 was adopted by
the City Commission on September 16, 2008 and amended by Ordinances 2009-07 and 2009-09. We are
presenting for first reading a third amendment of Ordinance 2008-34 to modify the estimates of revenues
and appropriations budgeted in various funds. Exhibits A and B and supporting attachments provide the
detail for the proposed amendment. This budget amendment is based on financial reports for the
accounting period ending on 7/31/09. The following is a summary of changes included in the proposed
amendment:

        Revenues & Balances Fwd                                               Increase(Reduction)

             General Fund                                                                  516,254

             Special Revenue Funds                                                          60,463

             Debt Service Fund                                                                      0

             Capital Projects Fund                                                          82,750

             Airport Fund                                                                           0

             Utility System Fund                                                          (163,000)

        Total Increase(Reduction) of Revenues & Balances Fwd                               496,467

        Appropriated Expenditures & Reserves

             General Fund                                                                   35,727

             Special Revenue Funds                                                          12,815

             Debt Service Fund                                                                      0

             Capital Projects Fund                                                         102,252

             Airport Fund                                                                           0

             Utility System Fund                                                                    0

             Reserves                                                                      345,673

        Total Increase(Reduction) of Appropriated Expenditures & Reserves                  496,467
City Commission Meeting
September 9, 2009
Page 31 of 37


The proposed budget amendment increases the City’s total budgeted expenditures by $150,794 and
increases reserves by $345,673 for a net increase in appropriated expenditures and reserves of $496,467
(from $57,679,505 to $58,175,972).

Reasons for this amendment include:

         •    balances forward must be adjusted to conform to the audited fund balances at 9/30/08.

         •    revenue projections in the General Fund must be adjusted to reflect the March revision in the
              State revenue estimate for Municipal Revenue Sharing (-$4,477) and Half-Cent Sales Tax (-
              $23,632); these revenues were reduced twice after October 1, with a total reduction from the
              original estimates of $72,398.

         •    revenue projections in the Utilities Fund must be adjusted to reflect the shortfall in water
              service charges relative to budget (-$200,000).

         •    payroll expenditures are increased in the Community Policing Division (+$12,815) to adjust
              for the Police Officer position added on July 1 with 50% funded by the Lake Wales Housing
              Authority.

         •    revenues and expenditures in the General Fund must be adjusted to record donations and
              expenditures related to the Veteran’s Memorial; a tentative budget of $7,000 for donations
              and $5,000 for expense is established

         •    revenues and expenditures must be adjusted in the Capital Projects fund to reflect the
              County funding and the full cost of the Barney’s Dream playground equipment (+$82,750).
         •    expenditures in the Capital Projects fund must be adjusted to carry forward the FY07'08
              encumbrance of $19,502 for Police rifles, funded by impact fees.

         •    funds must be appropriated in the General Fund for the purchase of various items of
              equipment; i.e., In-Car Cameras (+$9,833)for patrol vehicles; a trailer to replace one stolen
              from the Cemetery (+$1,152); and perimeter fencing for Barney’s Dream playground
              (+$,4000).

         •    expenditures must be adjusted in the General Fund for addition of a security system and
              repairs to the Kirkland Gymnasium (+$9,620)

         •    expenditures must be adjusted for repair of the A/C ($+3,700) and other maintenance/repair
              at the Depot (+$4,231); the additional expense is partly offset by the $3,000 reduction in the
              grant to Historic Lake Wales Society that the Commission approved in October 2008. This
              reduction was inadvertently omitted from the previous budget amendments and is included in
              Amendment #3.

         •    expenditures must be increased in the Utilities Fund for M&R related to water lines and
              storage tanks (+$51,110); the additional cost is offset by an equal reduction in capital outlay
              budgeted for replacing the 9th St. booster station.

OTHER OPTIONS

Most of the budget amendment is not optional.

We are required by Charter to reduce budgeted appropriations when it appears that revenues will be
insufficient to meet the amount appropriated; this is the case with state-shared revenues in the General
Fund and water service charges in the Utilities Fund.
City Commission Meeting
September 9, 2009
Page 32 of 37

FISCAL IMPACT

See Exhibit A and Exhibit B attached to Ordinance 2009-23.

[End agenda memo]

Ms. VanBlargan read Ordinance 2009-23 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, AMENDING
ORDINANCE 2008-34 AS AMENDED BY ORDINANCES 2009-07 AND 2009-09TO FURTHER MODIFY
THE ESTIMATES OF EXPENDITURES FOR THE OPERATION OF THE SEVERAL DEPARTMENTS
OF SAID CITY FOR THE 2008-2009 FISCAL YEAR AND TO FURTHER MODIFY THE
APPROPRIATION OF FUNDS RAISED AND COLLECTED FROM ALL SOURCES SET FORTH IN THE
ESTIMATE OF REVENUES FOR SAID FISCAL YEAR; REPEALING ALL ORDINANCES IN CONFLICT
WITH THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE.

Commissioner Wheeler made a motion to approve Ordinance 2009-23 after first reading. The motion was
seconded by Commissioner Howell.

         Roll Call:

                   Commissioner Wheeler           “YES”
                   Commissioner Howell            “YES”
                   Commissioner Rogers            “YES”
                   Commissioner Thornhill         “YES”
                   Mayor Van Sickle               “YES”

         The motion carried 5-0.

Agenda Item 16.           Resolution 2009-10, Professional Services for MITL System

Ms. Delmar reviewed Agenda Item 16. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Teresa Allen, Public Services Director]

SYNOPSIS

The City Commission will consider acceptance of additional grant monies from the FAA for rehabilitation
of Runway 06/24 Medium Intensity Taxiway Lights and authorization of an agreement for professional
services related to construction engineering for the project.

RECOMMENDATION

Staff recommends that the City Commission take the following actions:

1. Accept the grant offer from the Federal Aviation Administration for the rehabilitation of Runway 06/24
   Medium Intensity Taxiway Lights (MITL) at the Lake Wales Municipal Airport; and authorize the City
   Manager to execute the Grant Agreement on the City’s behalf.

2. Approve Resolution 2009-10, which amends Resolution 2008-15, Master Agreement and Task Order #10
   with Hoyle, Tanner & Associates, Inc. to include construction engineering in the amount of $50,000 to
   rehabilitate the Medium Intensity Taxiway Lights (MITL) System on Runway 6-24.

BACKGROUND
City Commission Meeting
September 9, 2009
Page 33 of 37

On May 27, 2008 the City received notification that the Federal Aviation Administration (FAA) had allocated
$92,796 from the Federal Aviation Administration (FAA) for the design phase to rehabilitate the medium
intensity taxiway lights system on Runway 06/24 at the Lake Wales Municipal Airport. The Commission at its
regularly scheduled meeting on June 17, 2008 accepted the grant agreement.

Then at its regular June 2, 2009 meeting, the City Commission approved Resolution 2009-05, Master JPA with
the Florida Department of Transportation to allow their participation in aviation projects at the Lake Wales
Municipal Airport. These projects include a $218,255 project (construction phase) for the rehabilitation of the
medium intensity taxiway lights system on runway 06/24 (FAA: $207,343; FDOT: $5,456.; City: $5,456).

On August 17, 2009, the City received notification of an additional allocation of $95,610 FAA for the construction
phase of the MITL rehabilitation project. This brings FAA’s total share for the project to $302,953.00.

FDOT and the City’s share are increased by $2,516.00, bringing the total share of each to $7,972.00.

FISCAL IMPACT

Funding is allocated as follows:

         FAA       302,953.00
         City        7,972.00 (funds will be available in 09/10 City budget)
         State       7,972.00

Project total:    $318,897.00

OTHER OPTIONS

The City has already accepted the grant agreement for this design phase of this project from FAA

[End agenda memo]

Ms. VanBlargan read Resolution 2009-10 by title only.

A RESOLUTION OF THE CITY OF LAKE WALES, POLK COUNTY FLORIDA, AMENDING
RESOLUTION 2008-15, AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR
PROFESSIONAL SERVICES PERTAINING TO THE CONSTRUCTION ENGINEERING TO
REHABILITATE RUNWAY 6-24 MEDIUM INTENSITY TAXIWAY LIGHTS (MITL) SYSTEM WITH THE
FLORIDA DEPARTMENT OF TRANSPORTATION.

Commissioner Thornhill made a motion to approve Resolution 2009-10. The motion was seconded by
Commissioner Howell.

         Roll Call:

                   Commissioner Thornhill           “YES”
                   Commissioner Howell              “YES”
                   Commissioner Rogers              “YES”
                   Commissioner Wheeler             “YES”
                   Mayor Van Sickle                 “YES”

         The motion carried 5-0.

Agenda Item 17.            “Rumble on the Ridge—A Salute to Veterans”

Mr. Gallup reviewed Agenda Item 17. The full staff memo is incorporated into the minutes.
City Commission Meeting
September 9, 2009
Page 34 of 37

[Begin agenda memo, prepared by Harold Gallup, Economic Development Director]

SYNOPSIS

Approval of the street-closing request will allow the “Rumble on the Ridge” special event be held on
Saturday, November 14, 2009.

RECOMMENDATION

Staff recommends that the City Commission take the following actions:

1. Approve the request from Lake Wales Main Street for a One Day Special Event on November 14, 2009 that
   includes displays, vendors, entertainment, and beer sales areas and consumption of alcohol within the
   event area using “Special Containers” for the event as permitted in Ordinance 2008-30 Sec. 5-5(a)(2);

2. Authorize the closing of that portion of Stuart Avenue and Park Avenue between 1st Street on the West and
   Scenic Highway on the East side of the event area, and that portion of Market Street between Stuart
   Avenue and Central Avenue in the event area on November 14, 2009.

3. Authorize the closing of that portion of 1st Street between Central Avenue and Park Avenue for the
   purpose of parking motorcycles of event attendees after the Veterans Parade on November 14, 2009.

BACKGROUND

This event is planned as part of “A Salute to Veterans” on November 14, 2009. There will be a separate
event / parade request coming from the VFW as they have done in the past.

This event has been in a planning mode for several months and was originally projected as a three-day
event. The organizers and participants have decided that this year the event would be for the one day
and serve as the “model” for expanding the event to a three-day event next year.
The event is being done in cooperation with Hot Tails Cycles located adjacent to the Longleaf Business
Park. The deferral to next year for a three day event will allow coordination of many different facets of
such an event in a way that the merchants and the community can be better prepared to host a
successful expanded event.

In other cities in Florida and Polk County, there are templates of very successful events that have
generated significant funding for Main Street, the local businesses, and the City. The event is projected to
attract between 1,500 to 3,000 attendees, and 25 to 50 vendors. The Main Street organization conducted
a survey of the local retail businesses and professional offices in the event area concerning the closing of
the streets. There are approximately 60 retail shops and/or offices in the event area. There are
approximately 30 in the retail classification. The survey returned 22 responses for a +/- 73% response.
Those supporting the event represented +/- 81% of the response, opposing +/- 4.5% of the response and
partially supporting, i.e. the Veterans Parade was +/- 4.5% of the responses.

CURRENT FISCAL IMPACT

The current fiscal impact will be the use of Police Officers for the event, inclusive of members of Voice
and these are budgeted in the cost of events in the Police Budget for 2009/2010 FY. There is no over-
time hour expense for the event. The cleaning of streets will be on a normal schedule and the event staff
will do trash removal. Any dumpster rental will be at the expense of the event.

Services such as electrical, sound equipment etc. are all part of the cost of the event to Main Street and
Hot Tails Motorcycles. The event sponsors will absorb any and all losses from the event. Any Profits from
the event will be divided, after recovery of expenses, three ways: Main Street, Hot Tails Motorcycles, and
seed money for the projected 2010 event previously referenced.
City Commission Meeting
September 9, 2009
Page 35 of 37


FUTURE ECONOMIC IMPACT

There are no requirements for individual vendor license. However, based on the conservative projected
attendance of 1,500 to 3,000 people the anticipated local Gross Dollar expenditure by attendees could
range from $18,750.00 to $37,500.00 spent in the areas food, gas, and retail purchases. The Sales Tax
impact would be as high as $2,625.00. Theses are conservative estimates for the event.

[End agenda memo]

Mr. Gallup said this event is a one-day model of what they hope to present next year as an extended
event over the same weekend.

Commissioner Wheeler made a motion to:

    1. Approve the request from Lake Wales Main Street for a One Day Special Event on November 14, 2009
       that includes displays, vendors, entertainment, and beer sales areas and consumption of alcohol within
       the event area using “Special Containers” for the event as permitted in Ordinance 2008-30 Sec. 5-
       5(a)(2);

    2. Authorize the closing of that portion of Stuart Avenue and Park Avenue between 1st Street on the West
       and Scenic Highway on the East side of the event area, and that portion of Market Street between
       Stuart Avenue and Central Avenue in the event area on November 14, 2009.

    3. Authorize the closing of that portion of 1st Street between Central Avenue and Park Avenue for
       the purpose of parking motorcycles of event attendees after the Veterans Parade on November
       14, 2009.

The motion was seconded by Commissioner Howell.

         By voice vote:

                   Commissioner Wheeler           “YES”
                   Commissioner Howell            “YES”
                   Commissioner Rogers            “YES”
                   Commissioner Thornhill         “YES”
                   Mayor Van Sickle               “YES”

         The motion carried 5-0

CITY MANAGER’S REPORT

CITY COMMISSION TRACKING REPORT

Ms. Delmar introduced the new Public Works Director Tom Moran, who told the Commission about his
background. Mr. Moran said he is a registered engineer in the State of Florida. He believes in doing
things right the first time so everything turns out right.

Mayor Van Sickle said he has been accused of being somewhat schedule-driven because he is a firm
believer in schedules. Now, that we have a new Public Works Director, he wants to see a utility project
schedule to keep him informed of what is going on and what we need to do before moving to something
else. He said he personally likes to see schedules because it helps to manage the critical areas. Mr.
Moran agreed. He said the ultimate goal is the City and we all have to work together to make that
happen.
City Commission Meeting
September 9, 2009
Page 36 of 37

Adult daycare facility: Mr. Gallup said the project funding is back on track. A guaranteed maximum
contract is scheduled to go before the Board of County Commissioners for approval the first week in
October; the engineering plans are being revised as per City comments; the City’s Building and Fire
Officials will review the changes in hopes of issuing permits by the end of October; demolition of the old
health department building is expected to be completed by the end of November; and then the
construction of the new adult daycare facility should begin.

Mr. Galloway said the county’s attorney spoke to him the day before yesterday and said that this item is
on their budget hearing agenda for tomorrow night. It’s been removed from the agenda once before so
hopefully the county will approve it with their budget tomorrow night.

Commissioner Wheeler said he would like to make it clear that this adult daycare facility will not only be
for people 55 years or older. It is also for any disabled adult to allow their caregivers to work or to take a
break. Mr. Gallup said that is correct.

Rental inspection ordinance: Ms. Delmar reported that the rental inspection ordinance is going to be part
of a broader overhaul of the health and sanitation Code Enforcement ordinance.

Giving preference to local vendors and contractors: Ms. Delmar said we have not forgotten about this
item; however, we have not had time to do it yet.

COMMUNICATIONS AND PETITIONS

There were no comments made by the pubic.

CITY COMMISSION COMMENT

Commissioner Rogers said he had a memo in his Commission mailbox from the Ridge Scenic Highway
Corridor Management Entity asking for a $100.00 donation from the City to defray some of their
expenses.

The consensus of the City Commission was to donate $100.00 to the Ridge Scenic Highway Corridor
Management Entity.

Mimi Hardman, chairman of Ridge Scenic Highway Corridor, thanked the Commission for its $100.00
donation.

Commissioner Thornhill asked the status of the building next to the Gym. Mr. Galloway said probably
within the next 30 days, the property will go to public sale. A new owner will pick it up and then they will
either do something constructive with it or the Code Enforcement process will begin afresh. There are no
liens attached to the property because prior to the filing of the foreclosure action, the City Commission
had released the fines on that structure. The owner of the property made a presentation to the
Commission convincing it that things would improve. The owner then borrowed money against it, but
nothing has been done to the structure. The judgement is probably going to be in the $300,000 range.

Commissioner Thornhill asked if the alley work has begun. Mr. Moran said that he received an email
today from the Streets Division Supervisor, Beverly Pennington, saying that it would be her next project.

Commissioner Howell said there is water built up on Dr. J. A. Wiltshire Avenue again. Ms. Pennington
said FDOT is working to resolve that problem.

Commissioner Howell asked who is responsible for fixing the huge pothole on Washington Avenue near
Florida’s Natural. Ms. Pennington said the county. She has been in contact with the county concerning
that, but they have done nothing about it. She will follow up.
City Commission Meeting
September 9, 2009
Page 37 of 37

Commissioner Howell asked when the 25-mph speed limit sign would be put on Dr. J. A. Wiltshire
Avenue. Police Chief Gillis said he will check on it.

Mayor Van Sickle said about six months ago the City Commission approved lowering the speed limit on
Thompson Nursery Road. Mr. Galloway said that when he had spoken to the county’s attorney he said
that they would have to do an examination of that area to determine whether or not it warrants a reduction
of speed. The attorney also said that the county’s road or transportation division could perform the
needed analysis but not without a formal request. Mr. Galloway said his suggestion would be that if the
Commission would like the examination performed that it direct him to correspond back to the county’s
attorney requesting him to do whatever is necessary to have that done. The County Commission is the
only body to lower that speed limit. Police Chief Herbert Gillis said an AGO (Florida Attorney General's
Office Advisory Legal Opinion) says that a chartered municipality has a right to lower the speed limit on a
county road without the county’s approval. We had the same situation with the county on Chalet Suzanne
Road. This Commission was able to lower the speed limit on that road. He said he would provide the
opinion to Mr. Galloway.

There being no further business, the meeting was adjourned.



                                                          __________________________
                                                          Mayor/Commissioner
ATTEST:


_____________________________________
City Clerk
City Commission Meeting
September 15, 2009
Page 1 of 28


The regular meeting of the Lake Wales City Commission was held on September 15, 2009 at 6:00 p.m. in the
Commission Chambers at the Municipal Administration Building. The meeting was called to order by Mayor L.
Jack Van Sickle.

    INVOCATION

    The invocation was given by Dr. Jim Moyer, Warner University.

    PLEDGE OF ALLEGIANCE

    COMMISSIONERS PRESENT: Terrye Y. Howell; Lee A. Wheeler, III.; Jonathan Thornhill; John Paul
    Rogers; Mayor L. Jack Van Sickle.

    COMMISSIONERS ABSENT: None.

    CITY REPRESENTATIVES PRESENT: Judith H. Delmar, City Manager; Albert C. Galloway, Jr., City
    Attorney; Clara VanBlargan, City Clerk.

MAYOR

Agenda Item 5.            PROCLAMATION: Constitution Week

Mayor Van Sickle read a proclamation proclaiming September 17 – 23, 2009 as “Constitution Week.”
Sylvia Carson, Lake Wales Chapter of the Daughters of the American Revolution (DAR), accepted the
proclamation.

BUDGET HEARINGS

Agenda Item 6.            Ordinance 2009-20, Adopting a Millage Rate for FY09’10 – 2nd Reading &
                          Public Hearing
                          Ordinance 2009-21, Adopting a Budget for FY09’10 – 2nd Reading & Public
                          Hearing

Ms. Delmar reviewed Agenda Item 6. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The Commissioners will consider adopting a millage rate of 7.3277 mills for Fiscal Year 2009-2010 which
is the same as the current year’s rate. The Commissioners will also consider adopting the proposed
operating budget as revised after first reading on September 9. A separate public hearing will be held on
each matter.

RECOMMENDATION

After second reading and separate public hearings, it is recommended that the City Commission take the
following actions:

1. Enact Ordinance 2009-20 adopting a millage rate of 7.3277 mills for FY09'10.

2. Enact Ordinance 2009-21 adopting the proposed FY09'10 operating budget with revisions approved
   on September 9.
City Commission Meeting
September 15, 2009
Page 2 of 28


BACKGROUND

In accordance with Florida Statutes and the City Charter, Ordinances 2009-20 and 2009-21 are
presented for second reading and public hearing. Ordinance 2009-20 establishes the millage rate for
FY09'10, and Ordinance 2009-21 adopts the proposed FY09'10 budget.

The proposed FY09'10 budget document includes the revenue and expenditure details for the General
Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Fund, Utility System Fund and Airport
Fund. This document was previously forwarded to the City Commission for review and was discussed at a
workshop held on August 17. Ordinances 2009-20 and 2009-21 were approved by the City Commission
after first reading and public hearing on September 9.

This budget has been prepared in accordance with Article VI, Section 6.04 of the City Charter which
requires that the budget provide a complete financial plan of municipal funds and activities. Estimated
current year ending fund balances have been considered and are included in the budget.

PROPERTY TAX

The proposed budget is based on the current millage rate of 7.3277 per $1,000 of taxable valuation. This
is 10.44% below the rolled-back rate of 8.1817 mills that was adopted as the interim millage rate. The
rolled-back rate is the rate that will generate the same amount of revenue with 2009 property values as
the current rate generated with 2008 property values. The following chart shows the difference between
the rolled-back rate and the current/proposed rate for taxpayers at various assessed valuations:

                                  Taxable Value               Tax Rate per $1,000           Difference
                            with 1 st         st
                                         with 1 & 2  nd                                   between rolled-
          Assessed                                                        7.3277 mills
                           $25,000         $25,000        8.1817 mills                     back rate and
           Value                                                           (current &
                          homestead      homestead        (rolled-back)                  current/propose
                                                                           proposed)          d rate
                          exemption       exemption
       $60,000             $35,000            -             $286.36        $256.47           $29.89
       $75,000             $50,000            -             $409.09        $366.39           $42.70
       $100,000               -            $50,000          $409.09        $366.39           $42.70
       $150,000               -           $100,000          $818.17        $732.77           $85.40
       $175,000               -           $125,000         $1,022.71       $915.96           $106.75

       $200,000               -           $150,000         $1,227.26      $1,099.16          $128.10

USER FEES

A series of ordinances adopted by the City Commission in September 2007 authorized annual increases
in city user fees based on June’s annual CPI or 2.5%, whichever is greater. The change in the CPI
measured from June 2008 to June 2009 was -1.4%, and all user fees (i.e, water and sewer, solid waste
collection, facility rental, development fees, etc.) will be increased by 2.5% on October 1.

Although a 2.5% increase in user fees will generate some additional revenue for the General Fund, ad
valorem proceeds and development-related revenues have declined dramatically during the past two
years. Revenues from state and other intergovernmental sources are also projected to be lower than last
year. As a result, General Fund revenues in FY09'10 are projected to be $418,060 less than budgeted in
FY08'09 and $1,005,824 less than actually received in FY07'08.
City Commission Meeting
September 15, 2009
Page 3 of 28



EXPENDITURE CHANGES SINCE PRESENTATION OF BUDGET

The budget that was originally presented on August 11 and discussed during the budget workshop has
been revised to include increases and reductions of expenditures as follows:

           Expenditure     Item Description
                 -83,400   Reduction in City-paid Health Insurance costs
                280,432    Increase in Payroll - 3% COLA
                  38,269   Increase in Fire Dept C/O - grant-funded Mobile Radios
                 -32,654   Reduction in Gen Fund transfer to Airport Fund
                   1,371   Increase in Gen Fund transfer to Streets Div
                  -1,696   Net effect of Change in Allocated expenses
                316,230    CRA transfer to Gen Fund (Coop Fruit Prop Proceeds - Escrow Acct)
                  -3,836   Reduction in budget for Road Repairs
                           Increase in Cap Proj Fund C/O - grant-funded Kiwanis Park
                250,000
                           Improvements
                   3,615   Increase in Gen Fund admin charge to Utilities Admin
                122,692    Increase in Airport grant-funded MITL construction budget
                748,762    Increase in Airport grant-funded Runway construction budget
                 -40,000   Deletion of Airport fuel truck purchase
                  50,000   Increase in budget for LWLL field maintenance contract
                  11,500   Addition of budget for NW Complex field maintenance contract
                  40,500   Increase in Gen Fund payroll - Field Maintenance position
                  13,500   Increase in Gen Fund utilities - Kirkland Gym electric, water, gas
                  54,936   Increase in Gen Fund payroll - 2 Recreation Aide positions for Gym

              1,770,221    Total change in expenditure budget after 8/11/09 (All Funds Combined)

The changes shown in the table above affect expenditures in the General Fund, Transportation Fund,
CRA Fund, Library Fund, Capital Projects Fund, Utilities Fund and Airport Fund.

It is anticipated that a surplus of at least $183,000 will be carried forward from the current budget year to
FY09'10 because fuel costs have been so much lower than anticipated. Soaring fuel prices during the
spring and summer of 2008 caused us to increase our fuel budget for FY08'09 at the expense of
purchasing much needed equipment for the parks and streets divisions. The proposed FY09'10 budget
will utilize this surplus to fund parks equipment ($88,000), streets division equipment ($13,000), 2 marked
police vehicles ($50,000), and a projector for Commission Chambers ($2,000). In addition this surplus will
fund the $30,000 local match required for the $20,000 Urban Forestry grant that will be used to purchase
a bucket truck to be shared by several departments. Additional police vehicles ($125,000) will be
purchased from CRA funds for use by the Community Policing unit that will be assigned primarily to the
Downtown and Lincoln Avenue commercial districts.

Initial budget requests submitted by the departments exceeded General Fund revenue projections by
more than half a million dollars. By utilizing the surplus mentioned above for capital purchases and
significantly reducing the initial requests, staff was able to balance the proposed budget at the current
City Commission Meeting
September 15, 2009
Page 4 of 28


millage rate while avoiding measures that some cities and counties have been forced to implement (i.e,
employee lay-offs, salary reductions, and days off without pay).

The proposed General Fund operating budget as revised on September 9 totals $11,001,063. This
represents an increase of 2.2% over the current year’s budget and a 3.6% reduction compared to actual
expenditures in FY07'08.

As strongly recommended by the City’s auditors, it has been the City’s goal to increase the General Fund
balance to 15-20% of the total operating budget. In terms of the proposed FY09'10 budget, this would
require a General Fund balance of $1.6 to $2.17 million.

On September 30, 2008, the total fund balance of the General Fund was $2,596,546 or 24.1% of the total
operating budget for FY08'09. Excluding the Tax Anticipation Reserve/Pool Construction Account
($1,037.852), the fund balance of the General Fund was $1,558,694 or 14.5% of the FY08'09 budget.

If revenue and expenditure levels reported at June 30 are maintained through the end of the year, it is
estimated that revenues will exceed expenditures by approximately $200,000 at 9/30/09 allowing us to
carry forward a fund balance of $2,814,025 –the equivalent of 25.6% of the proposed FY09'10 General
Fund budget as revised. However, we are conservatively budgeting a fund balance forward of $2,596,546
in order to allow for unanticipated expense in the 4th quarter of this fiscal year.

SUMMARY OF ALL FUNDS

                               General Fund                        $10,710,186

                               Special Revenue Funds                  6,310,975

                               Debt Service Fund                      2,363,120
                               Capital Projects Fund                   645,000
                               Utility System Fund                  10,298,311
                               Airport Fund                           1,607,797

                               TOTAL                               $31,935,389

The expenditure total of $31,935,389 is comprised of operating costs in the amount of $22,359,316 and
capital outlay in the amount of $9,576,073. Transfers in the amount of $4,126,896 bring total expenditures
plus transfers to $36,062,285. The proposed operating budget expenditures for FY09'10 are 49.6% less
than the actual total expenditures for FY07'08 (projects funded by bond proceeds are excluded from this
calculation).

Capital expenditures include utility system improvements such as the rehabilitation and upgrade of the
wastewater treatment plant and asbestos pipe removal, airport taxiway lighting improvements, Lincoln
Avenue parking improvements, Downtown improvements, purchase of police vehicles and miscellaneous
equipment purchases budgeted as follows:

                          General Fund                                      213,269

                          Special Revenue Funds                           2,352,343
                          Capital Projects Fund                             645,000
                          Utility System Fund                             4,865,518
                          Airport Fund                                    1,499,943

                          TOTAL                                          $9,576,073
City Commission Meeting
September 15, 2009
Page 5 of 28




REVIEW OF DEBT SERVICE

As required by Charter, a summary of the City's outstanding debt at September 30, 2009 is presented as
follows:

         Public Improvement Bonds, Series 1997; issued to refund Public Improvement Bond Series, 1991
         which refinanced Public Improvement Bond Series, 1989 funding capital projects. Balance:
         $1,990,000; last payment October 2014.

         SunTrust 2003 Note; issued to accomplish advance refunding of Capital Improvement Revenue
         Bonds, Series 1996 ($4,666,859), to refinance Non-Ad Valorem Revenue Bonds, Series 1999
         ($4,757,115) and to finance interest and issuance costs ($125,716). Annual interest rate, 3.84%.
         Balance: $6,883,127; last payment 2016.

         SunTrust 2005 Note; issued finance construction of chlorine contact chamber at Wastewater
         Treatment Plant and city’s cost portion of reuse transmission lines. Annual interest rate, 4.2%.
         Balance: $673,059; last payment 2015.

         Wachovia Utility System Improvement Refunding Revenue Note, Series 2006A; issued to refund
         existing bonds and fund Water and Sewer system improvements. Balance: $4,894,870; last
         payment October 2016.

         Utility System Revenue Note, Series 2006B, is an authorized credit line in the principal amount of
         not to exceed $3,100,000 to finance the cost of constructing and acquiring certain additions,
         extensions and improvements to the utility system. Current variable interest rate as of August 8,
         2008 based on 74% of 1-Month LIBOR plus 95 basis points. Balance: $2,550,000; last payment
         2026.

         CRA Redevelopment Revenue Note, Series 2007; issued to finance redevelopment capital
         improvement projects. Balance: $8,760,417; last payment October 2027.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with Wastewater Reuse Project, Phase I. Annual interest rate, 2.56%.
         Balance: $873,576; last payment February 2019.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with Wastewater Reuse Project, Phase II. Annual interest rate, 3.05%.
         Balance: $542,978; last payment August 2022.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of costs associated with sludge dewatering Improvements to the Wastewater Treatment Plant.
         Annual interest rate, 2.14%. Balance: $1,081,451; last payment October 2024.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of pre-construction costs associated with the Wastewater Treatment Plant Expansion Project.
         Annual interest rate, 1.88%. Balance: $961,181; last payment October 2028.

         Florida Department of Environmental Protection Revolving Loan Program assistance for funding
         of pre-construction costs associated with the Wastewater Treatment Plant Expansion Project.
         Unless this agreement is amended to provide construction funding, the first semi-annual loan
         payment in the amount of $11,567 will be due on December 15, 2012. Principal amount of loan is
         approved at $350,000; current amount drawn down is $180,000. Annual interest rate: 2.30%.
         Balance: $180,000; last payment 2022.
City Commission Meeting
September 15, 2009
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         Florida League of Cities Master Lease Program, 2004 for lease-purchase of Fire Truck. Annual
         interest rate: 2.37%. Balance: $63,334; last payment 2010.

         Florida League of Cities Master Lease Program, 2006 for lease-purchase of Fire Truck. Annual
         interest rate: 4.28%. Balance: $267,321; last payment 2012.

         Motorola Capital Lease Program for lease-purchase of Public Safety communications equipment
         and other equipment. Annual interest rate: 6.263%. Balance: $138,526; last payment 2012.

         Fixed Base Operator’s Prepayment Credit for $300,000 in leasehold improvements done by the
         FBO on airport property. Annual interest rate: 0%. Balance: $49,500; last payment 2012.

The City's total indebtedness at 9/30/09 is $29,909,340 which is equal to 3.9% of the 2009 taxable
valuation of 757,664,673. Debt payments due during FY09'10 total $3,879,333 and represent 17.6% of
the City’s operating budget (excluding interfund transfers and capital outlay). A schedule showing the
City’s outstanding debt at September 30, 2009 is included in the Charts & Graphics portion of the
proposed budget (page C-2).

BUDGET HIGHLIGHTS

A summary of the important aspects of the proposed FY09'10 budget document is provided as follows:

1.       A 3.0% COLA is proposed for all employees. For police officers and firefighters, this is contingent
         upon negotiations with the police and firefighter bargaining units. The budget was initially
         presented without a pay increase for employees. At the budget workshop on August 17, it was
         the consensus of the Commissioners to transfer the remaining $300,000 in proceeds from the
         sale of the Cooperative Fruit Property to the General Fund in order to fund a 3% employee pay
         increase.

2.       A 10% increase for workers' compensation, liability, property and casualty insurance premiums is
         budgeted. There is no increase in cost for the period 10/1/09 to 3/31/10; this period is covered for
         the rates that went into effect on 4/1/09. Our current insurance policies will renew on 4/1/10. A
         rate increase, if any, will apply to the period 4/1/10 to 3/31/11, of which only 6 months are
         included in the FY09'10 budget. Because the term of coverage is from 4/1/ to 3/31, it will not be
         possible to estimate a rate increase until we get closer to the renewal date.

3.       The budget that was initially presented allowed for an increase of 10% over current year costs for
         city-paid employee health care coverage. Following a request for proposals and input from city
         employees, a change in health care provider will result in an actual increase of only 1.6% over
         current year costs. The city-paid premium for each employee will increase from $489.75 per
         month to $497.68 per month. The cost to employees for family coverage will decrease 1.1% from
         $503.00 per month to $497.65 per month.

4.       Pension contribution rates have been budgeted for FY09'10 to yield the actuarially determined
         funding requirements calculated by the actuaries retained by the City's pension boards as follows:


                                General Employees         Police Officers          Firefighters

                    FY 08'09          6.0%                    17.3%                  23.7%
                    FY 09'10          1.4%                    21.9%                  26.9%
                     Change           -4.6%                   +4.6%                  +3.4%
City Commission Meeting
September 15, 2009
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5.        Changes in departmental staffing in FY09'10 as compared to the FY08'09 amended budget are
          detailed in the following chart:

     City Manager                     - 1.00 Assistant City Manager position eliminated
     Human Resources                  + 0.50 Switchboard/Receptionist position added (position shared with
                                             Clerk’s Office)
     City Clerk’s Office              + 0.50 Minutes Clerk position added (position shared with HR)
     Information Technology           + 1.00 Computer Technician position added
     Permits & Inspections            - 1.00 50% of Office Manager and Admin Asst positions reclassified to
                                             Planning & Zoning Dept
     Permits & Inspections            - 0.75 Bldg Inspector eliminated 6/30/09
     Planning & Zoning                + 1.00 50% of Office Manager and Admin Asst positions reclassified from
                                             Permits & Inspections
     Finance Department               - 0.25 Clerk position eliminated (shared with Utilities Cust Svc)
     Utility Customer Service         - 0.75 Clerk position eliminated (shared with Finance)
     Utility Customer Service         - 1.00 Clerk position transferred to Utilities Admin
     Utility Customer Service         - 0.75 Clerk position transferred to Support Services
     Utilities Admin                  + 1.00 Clerk position transferred from Utility Customer Service
     Support Services                 + 0.75 Clerk position transferred from Utility Customer Service
     Support Services                 - 1.00 Assistant to City Manager position eliminated
     Support Services                 + 0.25 Administrative position transferred from Streets Division
     Fleet Maintenance                - 3.00 Mechanic positions eliminated from city payroll; employees added to
                                             county payroll
     Parks Division                   - 7.00 Positions transferred to Field Operations
     Streets Division                 - 6.00 Positions transferred to Field Operations
     Cemetery Division                - 1.00 Position transferred to Field Operations
     Recreation Facilities Division   - 1.00 Position transferred to Field Operations
     Field Operations                 + 15.00 Positions transferred from Parks, Streets, Cemetery & Rec Facilities
                                              to consolidate field work force
     Field Operations                 + 2.00 Maintenance Worker I position added
     Field Operations                 + 0.75 Maintenance Worker III position added at 1/1/10 to maintain US27
                                             medians between SR60 and Towerview
     Streets Division                 - 0.25 Administrative position transferred to Support Services
     Public Services Admin            + 0.50 Public Works Director position added, shared with Utilities Admin
     Library                          - 0.50 Position transferred to Books-by-Mail
     Books-by-Mail                    + 0.50 Position transferred from Library
     Community Policing               + 1.00 Officer added with emphasis on Housing Authority property; 50% of
                                             position funded by LWHA
     Community Policing               + 1.00 Officer added for increased patrol presence in downtown commercial
                                             district
     Utilities Admin                  - 1.00 Utility Director position eliminated
     Utilities Admin                  + 0.50 Public Works Director position added, shared with Public Services
                                             Admin
     Utility Operations               + 2.00 System Maintenance Technicians added (1 for water and 1 for
                                             wastewater operations)
     Facilities Maintenance           + 1.00   Facility Worker position added
     Recreation Facilities            + 2.00   Recreation Aide positions added for Kirkland Gym

                                      + 5.00 Net Change in positions since amended FY08'09 Budget
City Commission Meeting
September 15, 2009
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6.       Capital expenditures proposed for FY09'10 are itemized in the following chart, however it should
         be noted that projects funded by the CDBG grant and the CRA bond may be modified during the
         budget adoption process. The inclusion of the 1919 School grant-funded project is dependent on
         approval by the State regarding expenditure of the $300,000 local match. It is anticipated that
         these modifications and other matters of concern will be determined before adoption of the
         FY09'10 budget but, if not, they will be included in the first budget amendment of FY09'10.

                           Item                          Cost                  Funding Source

 IMPROVEMENTS

 Airport - Runway Extension                             1,084,396 Airport Grants

 Airport - Medium Intensity Taxiway Lights                393,497 Airport Grants, Airport Revenues

 Drainage Improvements - Twin Lakes                       770,702 CRA Bond, SWFWMD Grant

 Parking Improvements - Lincoln Ave                        75,000 CDBG Commercial Vitalization Grant

 Parks & Recreation - Hardman Hall (1919 School)          650,000 State Grant, CRA Tax Increment

 Parks & Recreation - Kiwanis Park Improvements           250,000 FRDAP Grant

 Streetscape Improvements - Dr ML King Jr                 200,000 CRA Bond

 Streetscape Improvements - Downtown                      331,390 CDBG Commercial Vitalization Grant

 Streetscape Improvements - Lincoln Ave Lights            145,000 CRA Bond

 Streetscape Improvements - Lincoln Ave Lights            150,000 CDBG Commercial Vitalization Grant

 Reuse System - Misc New Services                          25,000 Utility System Operating Revenues

 Reuse System - Monitoring Wells                           50,000 Impact Fees, Operating Revenues

 Reuse System - Ground Storage Tank (Engineering)         200,000 Impact Fees, Operating Revenues

 Sewer System – Lift Station Pump Replacement              73,663 CRA Bond

 Sewer System - Treatment Plant Rehabilitation          1,000,000 Loan Proceeds, Operating Revenues

 Sewer System - Force Main/Lft Stn Crooked Lake           450,000 Loan Proceeds, Impact Fees

 Sewer System - Treatment Plant Upgrade/Expansion       2,025,000 Loan Proceeds, Impact Fees

 Water System - PRV at 9th, Scenic, SR 60                  45,000 Utility System Operating Revenues

 Water System - PRV at Hunt Bros & Scenic                  60,000 Impact Fees, Operating Revenues

 Water System - Misc New Services                          25,000 Utility System Operating Revenues

 Water System - Interconnect at N US 27                    92,000 Impact Fees, Operating Revenues

 Water System - Minnesota/Grove Area Upgrades             100,000 Utility System Operating Revenues

 Water System - Southwest Line Extensions                 100,000 Utility System Operating Revenues

 Water System - Asbestos Pipe Removal                     566,855 CRA Bond

 LAND

 Airport - Avigation Easements                             22,050 Airport Grants
City Commission Meeting
September 15, 2009
Page 9 of 28



                             Item                               Cost                    Funding Source

 VEHICLES & EQUIPMENT

 Streets Division - Mower                                         13,000 General Fund Revenues

 Commission - Projector for Commission Chambers                       2,000 General Fund Revenues

 Parks & Recreation - Tractor                                     40,000 General Fund Revenues

 Parks & Recreation - Stump Grinder                               20,000 General Fund Revenues

 Parks & Recreation - Mowers                                      28,000 General Fund Revenues

 Fire Dept - Mobile Radios                                        38,269 AFG Grant, General Fund Revenues

 Police Dept - Generator                                          35,000 Insurance Proceeds

 Police Dept - Vehicles                                           50,000 General Fund Revenues

 Police Dept - Community Policing - Vehicles                     125,000 CRA Revenues

 Police Dept - Community Policing - Weapons                           5,000 CRA Revenues

 Police Dept - Misc Equipment                                     25,000 Forfeiture Funds

 Police Dept - Computers                                          74,000 Byrne Law Enforcement Grants

 Police Dept - Video Systems/Cameras                              25,000 Byrne Law Enforcement Grants

 Police Dept - Weapons                                            23,251 Byrne Law Enforcement Grants

 Parks, Streets - Bucket Truck                                    50,000 Urban Forestry Grant, General Fund

 Water System - Misc Equipment                                        4,000 Utility System Operating Revenues

 Sewer System - Misc Equipment                                        4,000 Utility System Operating Revenues

 Reuse System - Booster Station                                   45,000 Impact Fees, Utility System Operating
                                                                         Revenues

 OTHER CAPITAL OUTLAY

 Library - Books & Subscriptions                                  85,000 Library Fund Revenue

 TOTAL CAPITAL EXPENDITURES                                    9,576,073



7.        In accordance with Ordinance 2007-07 adopted by the City Commission on September 18, 2007,
          water and sewer rates and charges will be adjusted to reflect a 2.5% increase based on June’s
          annual CPI. The increase will be applied to service provided on or after October 1, 2009.

                                 WATER CHARGES                                 SEWER CHARGES

                                     rate per 1,000 gallons                         rate per 1,000 gallons
                base                  5,001 -    10,001 -      over         base                 5,001 -
               charge      0-5,000                                         charge    0 -5,000
                                      10,000      25,000      25,000                             15,000

Current         5.20         2.06      2.78        4.32        7.11        18.47       2.43       4.25

10/1/09         5.33         2.11      2.85        4.43        7.29        18.93       2.49       4.36
City Commission Meeting
September 15, 2009
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For inside-city residential customers using an average of 8,000 gallons per month, water charges will
increase from $23.84 to $24.43, and sewer charges will increase from $43.37 to $44.46; the combined bill
for water and sewer will increase from $67.21 to $68.89.

8.       The FY09'10 Budget includes a 2.5% increase in all General Fund user fees and charges. For
         residential solid waste collection and recycling, fees will increase from $18.82 per month to
         $19.29 per month.

9.       Organizational changes are proposed that will reduce costs in some areas and reallocate
         resources to others:

         Fleet Maintenance. At the June budget workshop, the Commission expressed an interest in
         closing all or part of the city’s fleet maintenance operation and contracting with a local dealer for
         fleet maintenance services. Prior to investigating the privatization of fleet maintenance
         operations, staff contacted Polk County Fleet Maintenance (PCFM) to see if that agency could
         provide services to us through an interlocal agreement with the Board of County Commissioners.
         PCFM submitted a proposal to provide a full-time on-site supervisor to run the fleet maintenance
         operation using the City’s garage facility and equipment. The three mechanics currently employed
         by the City will be employed by the County subject to successful completion of the County’s
         routine screening process mandatory for all new employees.

         The proposal was subsequently approved by the City Commission and will save the City an
         estimated $135,000 in vehicle and equipment maintenance and repair costs in FY09'10. The
         anticipated cost savings permits the funding of a fire prevention specialist that would have
         remained unfunded following the retirement of the employee currently holding that position
         ($59,163), tuition assistance in the amount of $22,610, and site licenses for upgrading 58
         computers from Microsoft Office 97 to the 2003 edition ($15,000).

         City Manager’s Office. While it may be necessary or desirable to restore an assistant city
         manager position at some time in the future, several department heads have expressed a
         willingness to assume some of the duties previously assigned to the assistant city manager and
         city manager. This organization-wide support of the City Manager’s Office permits the reallocation
         of resources to areas in serious need of additional workers. Specifically, we are recommending
         the addition of the following positions:

         1. A computer technician position is recommended for the Information Technology (IT)
            department. The city administrative and public safety functions are highly dependent on
            computer technology. Two employees currently maintain more than 17 servers with 4
            firewalls and other networking equipment, 201 desktop and laptop computers, 25 in-car video
            systems, the new MOTOMESH system, the FLEXNET meter reading system, and the
            telephone system. The workload is currently more than can be handled by two employees in
            a normal workweek and will only increase as the MOTOMESH and FLEXNET systems
            expand.

         2. A maintenance worker position is recommended for the Field Operations division (see
            below), primarily to improve our ability to keep rights-of-way and open areas maintained
            properly.

         3. A switchboard operator/minutes clerk position is recommended for addition to the
            administrative staff. Adding a switchboard operator will eliminate the need to navigate the
            automated message system when calling City Hall. The person filling this position will also
            assist the city clerk with minutes of the City Commission, the CRA, and other city boards.
City Commission Meeting
September 15, 2009
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         Public Works. While it may be necessary or desirable to restore these positions at some time in
         the future, the resignation of the utilities director and the assistant to the city manager have freed
         up resources to fund the following:

         1. A public works director who is licensed as an engineer in the State of Florida will head both
            the Public Services Department (parks, streets, cemetery, airport) and the Utilities
            Department (water, wastewater, reuse). Having a licensed engineer on staff will expedite our
            dealings with regulatory agencies and provide savings in small project design costs.

         2. Two system technician positions are recommended for addition to the Utilities Department,
            one for water operations and one for wastewater operations. The water position is necessary
            to maintain compliance with increasing DEP regulatory requirements, and the wastewater
            position is necessary to perform routine maintenance on lift stations and other system
            components.

         3. A maintenance worker III position is recommended for addition to the Field Operations
            division to maintain the landscaped and grass medians on US 27 between SR 60 and
            Towerview Drive (at entrance to Tower Wood). The City will be required to maintain these
            medians after 12/31/09.

         Field Operations. Workers currently assigned to the Streets, Parks, Cemetery, and Recreational
         Facilities divisions will be transferred into a single General Fund operational division effective
         10/1/09. Although this will not result in a cost savings, combining all field employees into the Field
         Operations division will improve productivity by facilitating scheduling, cross-training, and more
         efficient utilization of workers.

         It is proposed that the cost of a maintenance worker will be allocated to the CRA, and the duties
         of that employee will consist of maintaining the landscaped areas in the downtown business
         district, on Lincoln Avenue, and on Central Avenue. This cost allocation will free up General Fund
         resources for the addition of a third new maintenance worker position to improve our ability to
         keep city-owned property maintained properly elsewhere in the city. This item was approved by
         the CRA Board.

         Staff is currently in discussions with Polk County Corrections to secure a second prisoner work
         crew for utilization on weekdays. If successful, this will increase the manpower available to
         maintain city rights-of-ways and park areas. It is anticipated that this will also reduce the use of
         “weekend warriors” and cut down on city overtime costs incurred in supervising weekend work
         crews.

         Community Policing. The budget includes an additional officer in the Community Policing unit
         who will be assigned to Grove Manor; the Lake Wales Housing Authority will fund 50% of this
         position and 50% will be funded by CRA revenues. This position and its funding sources were
         approved during FY08'09. A second officer is added to the unit for increasing the law
         enforcement presence in the downtown commercial district; this position will be funded by CRA
         revenues and has been approved by the CRA Board.

         Facilities Maintenance. Following the first public hearing on September 9, the budget includes
         an additional facility worker position. The facilities maintenance department has consisted of two
         employees since the department was created in the mid-70's. Since that time, the number of
         buildings and other facilities and playgrounds for which these employees are responsible has
         more than tripled. The addition of this new position will facilitate the establishment of a much-
         needed preventative maintenance program.

         Recreation Facilities. Following the first public hearing on September 9, the budget includes
         two full-time recreation aide positions to supervise use of the Albert Kirkland Sr. Gym.
City Commission Meeting
September 15, 2009
Page 12 of 28




OTHER OPTIONS

The City Commission may make additional modifications to the proposed budget as revised. Following
revisions made at the request of the City Commission on September 9, unappropriated revenues in the
amount of $27,797 remain in the General Fund to increase fund balance at 9/30/10. Any modifications in
excess of this amount will require a draw-down of fund balance or reductions of appropriations elsewhere
in the proposed budget.

[End agenda memo]

Ms. Delmar said the day after the City Commission approved first reading of the budget, John Shoffner,
the director of the basket ball program at Webber University, called to see if the City might be interested
in partnering with Webber University on the operation of the Kirkland Gym. They would operate the gym
and develop a full-pledged basket ball program. Staff called Mr. Shoffner last Friday and he still
expressed a strong interest in operating the gym, but he was dismayed that we were adopting our budget
now and that we needed certain things in place by October 1. It would be difficult for them to work out all
the details by that date. Staff is requesting that the Commission extend the existing contract with the Boys
and Girls Club, going with their proposal for two full-time employees, until the end of this calendar year.
Then, we can try getting something into place with Webber by the first of next year.

Ms. VanBlargan read Ordinance 2009-20 by title only

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, ADOPTING THE
FINAL LEVYING OF AD VALOREM TAXES FOR THE CITY OF LAKE WALES, POLK COUNTY,
FLORIDA FOR FISCAL YEAR 2009-2010; PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

There were no comments made by the public.

CLOSED PUBLIC HEARING

Commissioner Howell made a motion to adopt Ordinance 2009-20, adopting an FY09'10 millage rate of
7.3277 mills, after second reading and public hearing. The motion was seconded by Commissioner
Rogers.

         Roll Call:

                   Commissioner Howell           “YES”
                   Commissioner Rogers           “YES”
                   Commissioner Wheeler          “YES”
                   Commissioner Thornhill        “YES”
                   Mayor Van Sickle              “YES”

         The motion carried 5-0; 6:11 p.m.

Ms. VanBlargan read Ordinance 2009-21 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, RATIFYING,
APPROVING, ACCEPTING AND ADOPTING THE ESTIMATES OF EXPENDITURES FOR THE
OPERATION OF THE SEVERAL DEPARTMENTS OF SAID CITY, AND ALL NECESSARY AND
ORDINARY EXPENSES OF SAID CITY FOR THE 2009-2010 FISCAL YEAR, APPROPRIATING ALL
FUNDS TO BE RAISED AND COLLECTED FROM ALL SOURCES SET FORTH IN THE ESTIMATE
City Commission Meeting
September 15, 2009
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OF REVENUES & BALANCES FOR SAID FISCAL YEAR, AND THE REPEALING OF ALL
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

David Smith, Babson Park, asked what would happen if the proposal with Webber University fell through.
Ms. Delmar said we would re-evaluate at the end of this calendar year if unable to work out arrangements
with Webber University. At that point, we would determine whether to stay with the Boys and Girls Club or
hire two employees to operate the gym. As far as money in the budget, the Kirkland Gym is covered one
way or the other.

Michael Williams, 1127 S. Lake Shore Blvd., said he appreciates everything that all the City employees
do, but he is concerned that we are offering them a 3% raise funded by non-recurring revenue. That
means we are going to be stuck down the road to continue those raises. He said he disagrees when
people say that we can run City government like a business, because no business would give its
employees a raise on non-recurring revenue. The people that live in this City, who cover this tax base,
would have to pay for those raises. The unemployment rate in this county is about 12%. There are a lot of
unemployed people in Lake Wales who are suffering and we are asking them to pay for public servants to
get a 3% raise on non-recurring revenue. Mr. Williams said he does not understand the business logic
here. The top City employees pay nothing or very little toward the City’s tax base, because they do not
live in the City limits. A lot of employees are happy that they still have a job. City employees should also
be thankful that they still have a job at their current pay rate, along with having decent health insurance.
The City of Lake Wales has one of the highest tax rates in the county and we are trying to give raises on
non-recurring revenue. What is going to happen next year when we do not have that non-recurring
revenue? Mr. Williams said he finds it a little hard to believe that we are talking about hiring new workers
when most businesses that we hope will support this community have a hiring freeze or are laying off
workers. He said he does not understand where these business decisions are coming from.

Ruth Dampier, 1154 S. Lake Shore Blvd., said she too is concerned about the money we are spending.
What Mr. Williams said is true, but it is not just true with our employees. It is also true with people taking
advantage of our City recreational programs, such as the Little League program. People pay an initial fee,
but that is not near enough to cover the maintenance of the fields or to pay someone to do it. She said
when her son, now 47 years old, was in the Little League program it cost $45.00 to play. There has not
been too much of an increase since then. We need to outsource to get a program with individuals being
responsible for a certain amount of money. If we are going to work together, it needs to be to the
advantage of the City. We cannot spend down to the last penny. We have to hold money back for
emergencies. City employees do need a raise, if only 1-1/2 percent. A few years ago, the City spent a lot
of money upgrading the gym and now we are spending money to repair it. If people cannot take care of
the gym, it needs to be closed or at least until we can better organize the budget. We are charging for so
many things that we should not be charging for, such as our City parks. Some people use the parks when
there is nobody there just to avoid paying a reservation fee. We need to balance things out a little and see
if we can work closer with the funds that we have.

CLOSED PUBLIC HEARING

Commissioner Thornhill said he would rather go back to the original amount of $60,000 versus the
$80,000 for Little League field maintenance, because the Lake Wales Little League organization said they
are willing to work with the City. He said he called a few people that are familiar with the cost of field
maintenance and found that the amount we are currently paying is at the right price. Commissioner
Thornhill asked the last time City employees received a raise. Ms. Delmar said employees received a 1%
increase last year. Commissioner Thornhill said we have about $55,000 budgeted for the operation of the
Kirkland Gym. He asked if that amount would be sufficient if everything works out with Webber University.
Ms. Delmar said that is our hope.
City Commission Meeting
September 15, 2009
Page 14 of 28


Commissioner Wheeler said the firm that he works for does the accounting for the Lake Wales Little
League. He would guarantee that it costs them more than $80,000 to maintain the fields. If we lower the
amount to $60,000, we are asking them to support us. He said he is opposed to reducing the amount for
Little League.

Commissioner Howell said she understands giving raises if we have the money to do it. She does not see
taking away from what little recreation that we have to cover it next year. Commissioner Howell said she
has not had a raise in four years and does not see getting one in the future. Yet, she continues to go to
work everyday and on the weekends. Ms. Delmar said when we talked about the 3% raise, it was pointed
out at that time that our payroll base is going to be 3% higher next year and that payroll is the largest
expenditure of our budget. Commissioner Howell said she understands that. However, she does not see
taking away from recreation to cover it next year. She said it was sad to think that we would be doing
nothing at all for our recreation department by closing the gym and giving the Lake Wales Little League
nothing. It is good that we have the money to do what we want to do this year, because we would not be
going backwards. Employees may not necessarily get a raise next year, because this 3% raise would
give them a raise for a long time. She hopes that next year, we would not have a problem with giving
raises.

Commissioner Rogers said he appreciates the Little League baseball program and the fine job that Mr.
Maggard and his family have done. However, he also appreciates reality. He said people are continuously
asking him questions about the ball fields. They would like to know why the City does not bid out field
maintenance on a competitive basis to private companies to see if they could beat the price that we are
paying. If not, should the City take it over or leave it in the hands of Little League? People are asking if
the people that use the Little League facilities or their parents are City residents or City taxpayers, and if
the other groups using the fields pay anything to use them. If the other groups do pay something, to
whom and how much? People are wondering why the amount that the City has been paying Little League
is not enough, because it seemed to have worked in the past. Commissioner Rogers said people are not
only asking him about Little League, but about employee raises as well. The $300,000 to give employees
a raise with is non-recurring revenue, because that money came from the sale of the Cooperative Fruit
property. Before that, we got about $3 million from the sale of that property. He does not know where that
money went to, but he does know that we no longer have it. Commissioner Rogers said he understands
why the taxpayers are concerned about employee raises, how private industries operate, and why the
county is proposing to increase its park rental fees. He does not want to deprive any child of the
opportunity to play ball, because it is a wonderful way to keep kids off the streets. This needs to be
approached in a common sense, business-like manner to see how we can best do this to get the most for
our money and not do it based on emotional issues.

Mayor Van Sickle said he was the one who had recommended giving City employees a 3% raise and he
did so for several reasons. Over the last two years, he observed considerably understaffed departments
trying to do work that needed done, which was almost impossible to do with the number of people they
had. However, they did a great job. We found the money to give raises. Although he is not a budget
person, he does understand recurring and non-recurring revenue. The money for raises is coming out of
non-recurring funds. The City’s estimated reserves for next year is a little over $2.8 million, of which Ms.
Delmar is using $2.5 million for budget purposes to be conservative. That leaves about 3% we could use
if we have difficulty managing the cutbacks on our expenditures this year. That is a recurring expense.
Hopefully, next year we will not have to use the money that is still there. The City employees deserve a
raise. They have been working 110%. If they get a raise, they may work 115%, which would be to the
good of the City. Mayor Van Sickle said we do need to keep kids off the streets, but how many of those
kids are actually non-City residents. Commissioner Wheeler said about 10%. Ms. Delmar pointed out that
although they are not taxpaying individuals, non-city residents do pay a surcharge on the water and
sewer rates. They pay 25% higher water and sewer charges than residents of the City. The surcharge
has always funded the recreation program because taxes are only sufficient to fund public safety costs.

Mayor Van Sickle said the Commission seems to only disagree on one thing, which is to pay the Lake
Wales Little League group $80,000 or the original amount of $60,000. The $60,000 is still $30,000 more
City Commission Meeting
September 15, 2009
Page 15 of 28


than what we were proposing a week and a half ago. He asked if the Commission should vote on that
issue separately. Ms. Delmar said probably so. Commissioner Wheeler said he does not think this is the
time or place to reopen a budget hearing. What we are focusing on is very small. Mayor Van Sickle said
he was only using the same example that Commissioner Wheeler used last week when saying that this
Commission should forgo its $9 a month raise. That is not really helping the budget either. Commissioner
Wheeler said it was only a symbolic gesture.

Mayor Van Sickle said the Commission is now disagreeing on two issues and that we are still in the
budget hearing. Commissioner Wheeler said he does not disagree with giving raises. He said there has
been a lot of unfounded talk tonight, such as the need to bid out the maintenance of the Little League
fields to a private enterprise. That’s happing right now, because the Lake Wales Little League is a private
group. It cost a lot more than what we have been paying to maintain those fields. Mayor Van Sickle said
he understands that, but times are hard. We cannot just dump more money into recreation when we may
need it somewhere else. Commissioner Wheeler asked if the Commission gave a $210,000 raise instead
of a $250,000 raise, would it make a significant difference to the employees. What percentage would that
be? Ms. Delmar said it would be about a 2.8% increase instead of 3%. Mayor Van Sickle said we
probably should go with the issues the way they are now instead of trying to negotiate. Commissioner
Wheeler said he believes that kids come first. Mayor Van Sickle said he is sorry that some people do not
look at it that way.

Mayor Van Sickle said the Commission needs to vote on two issues: City employee raises and the dollar
amount for Little League maintenance. Commissioner Thornhill asked how the vote on the Little League
maintenance would affect the Little League contract that is coming up on the Consent Agenda. Ms.
Delmar said, depending on the outcome of the vote, the Commission could pull that item and vote on it
separately.

Mayor Van Sickle asked for a motion to give City employees a 3% raise. There was no response, so the
Mayor made the motion. There was no second of the motion. Commissioner Wheeler said he would
second the motion if the Mayor would lay off Little League. The Mayor made no response. The motion
died for lack of a second.

Mayor Van Sickle asked for a motion to give Lake Wales Little League $80,000 to maintain the Little
League fields. Commissioner Wheeler made the motion, and Commissioner Howell seconded the motion.

Commissioner Rogers asked for more discussion. He said he is very much in favor of Little League, but if
we bid this out, we might find people who would do the job cheaper, but maybe not as often as the Little
League would like. It is wonderful to have a play-off in Lake Wales and a lot of people would enjoy it. But,
we have to do it as cheap as possible and he sees no other way around it. He said he really feels bad
that we are in such shape that we cannot fund our recreational facilities, as we should. Commissioner
Rogers said the taxpayers come first. He suggested looking into getting some competitive bids.

Mayor Van Sickle said we have a motion and a second to give the Lake Wales Little League $80,000 to
maintain the Little League fields. He asked for a Roll Call.

         Roll Call:

                   Commissioner Wheeler          “YES”
                   Commissioner Howell           “YES”
                   Commissioner Thornhill        “NO”
                   Commissioner Rogers           “NO”
                   Mayor Van Sickle              “NO”

         The motion failed 3-2.
City Commission Meeting
September 15, 2009
Page 16 of 28


Commissioner Thornhill made a motion to approve $60,000 for the Lake Wales Little League to maintain
the Little League fields. Commissioner Wheeler seconded the motion.

         Roll Call:

                   Commissioner Thornhill      “YES”
                   Commissioner Wheeler        “YES”
                   Commissioner Rogers         “YES”
                   Commissioner Howell         “YES”
                   Mayor Van Sickle            “NO”

         The motion carried 4-1.

Commissioner Howell said the Commission only voted on giving employees a 3% raise. Commissioner
Wheeler said he is in favor of giving City employees a 2.5% raise if we restore the funding to the Lake
Wales Little League. Commissioner Howell said we should be asking if we are going to give the City
employees a raise, and then discuss the amount.

Mayor Van Sickle said his motion was to give City employees a 3% raise. If the Commissioners feel that
there should be a symbolic raise for the employees, then there should be a motion. He said, in his
opinion, we are not really looking out for the benefit of the employees, as well as we should.

Mayor Van Sickle asked for a motion to give City employees a percentage of a raise.

Commissioner Wheeler made a motion to grant a 2.5% raise conditioned on restoring the additional
$20,000 for Little League. Mayor Van Sickle said he is not sure if we should accept a motion with
conditions. Commissioner Wheeler said that is his motion. The motion was seconded by Commissioner
Howell.

         Roll Call:

                   Commissioner Wheeler        “YES”
                   Commissioner Howell         “YES”
                   Commissioner Thornhill      “NO”
                   Commissioner Rogers         “NO”
                   Mayor Van Sickle            “NO”

         The motion failed 3-2.

Commissioner Howell said we probably should vote again. Mayor Van Sickle said it seems like the
Commissioners want to play games tonight.

Mayor Van Sickle made a motion to give City employees a 2.5% raise with no conditions established for
that. The motion died for a lack of a second.

Commissioner Howell said if the $300,000 is non-recurring revenue, then how much of a raise can we
grant based on our projected recurring revenues. Ms. Delmar said that would be the 0% that staff
presented to the Commission in the proposed budget. Anything else would be based on non-recurring
revenue. Commissioner Howell asked if the economy changes for the better within the next year, could
the Commission address raises again next year. Ms. Delmar said yes.

Mayor Van Sickle asked for a motion on Ordinance 2009-21.

Ms. Delmar summarized the budget as proposed. She said this is a proposed budget based on 7.3227
mills that includes a 0% increase for employees and a $60,000 contract for the Lake Wales Little League.
City Commission Meeting
September 15, 2009
Page 17 of 28




Mayor Van Sickle asked if the $300,000 could be used to pay down debt. We could pay off the $250,000
debt on the fire truck or whichever debt Dorothy Pendergrass, Finance Director, recommends to be the
best to pay off. He asked if we could add it to the motion that way. Ms. Delmar said we could utilize that
$300,000 to pay down debt. Commissioner Howell asked if we are all agreeing on this. Mayor Van Sickle
said that is why we are summarizing. Commissioner Howell asked if we Commissioners agreeing on this.
Are we going to pay down debt, are we going to put the money in the General Fund for emergency uses,
or are we going to put the money in a emergency fund. She said no one has said anything. Mayor Van
Sickle said the reserve money we have now is $2.8 million. The reason we are in such bad shape is that
our auditors are saying that our reserve fund balance is great, but we still have indicators that are poor,
one of which is our debt. Paying down debt is a way to get that indicator starting to look better.

Commissioner Wheeler suggested making a motion to adopt Ordinance 2009-21 to include the
amendments just stated and a revision to earmark the $300,000 for debt reduction, and for whichever
debt Ms. Pendergrass recommends paying off. Some debt cannot be paid off ahead of schedule. Ms.
Delmar suggested bringing this back to the Commission. She said we could let this $300,000 flow back
into General Fund Balance. Then, after September 30, we would have a better idea of what our fund
balance forward will actually be. At that time, if we want to pay down additional debt we can. Either way,
the expenditure would have to come back to the Commission for approval as a budget amendment.
Commissioner Rogers asked if any of our notes include a pre-payment penalty clause. Ms. Pendergrass
said there are some debts that we have with SunTrust Bank that have a pre-payment penalty clause. If
we pay them off early, we would still pay the same amount of interest as if we had waited. So, there
would be no benefit in paying them off early. She said she would bring back all the options relating to debt
to the Commission.

Mayor Van Sickle said the consensus from the Commission is as stated on the debt and on the $300,000
by Ms. Delmar. He asked for a motion.

Commissioner Howell made a motion to adopt Ordinance 2009-21, adopting a budget for FY09’10 as
amended including the modifications as stated by Ms. Delmar on the debt and on the $300,000, after
second reading and public hearing. The motion was seconded by Commissioner Thornhill.

         Roll Call:

                   Commissioner Howell           “YES”
                   Commissioner Thornhill        “YES”
                   Commissioner Wheeler          “YES”
                   Commissioner Rogers           “YES”
                   Mayor Van Sickle              “YES”

         The motion carried 5-0; 6:49 p.m.

CONSENT AGENDA

Mayor Van Sickle asked if Agenda Item 8, Renewal of Agreement with Lake Wales Little League, would
need to pulled, discussed or modified before being voted on. Ms. Delmar said the amount of the contract
renewal would be modified from $80,000 to $60,000.

Agenda Item 7.            Award of Bid: Electrical Installation of Emergency Generator

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Sara Kirkland, Utilities Projects Supervisor]

SYNOPOSIS
City Commission Meeting
September 15, 2009
Page 18 of 28




Staff is requesting that the Commission consider awarding the bid to Estes Electric, Inc. for the electrical
installation of the emergency generator located at Water Treatment Plant #3 (Burns Ave Water Plant).

STAFF RECOMMENDATION

It is recommended that the City Commission:

1. Award bid #09-182 to Estes Electric, Inc for the electrical installation of the emergency generator
   located at Water Treatment Plant #3 (Burns Ave Water Plant) in an amount not to exceed $15,640.

2. Authorize the City Manager to execute the appropriate documents on the City’s behalf in regards to
   this electrical installation contract.

BACKGROUND

The Burns Ave. Water Treatment Plant emergency power system consists of a 500 KW generator and
associated electrical components which interface with primary power and a diesel fuel system. These
components were a part of the plant’s emergency power upgrade approved at the March 4, 2008 City
Commission meeting.

Staff has had the generator installed and partially wired. The project is now at the point where it is
necessary to have the remaining components (see attached requirements) wired for immediate use in the
event this treatment plant loses primary power for basic operation.

An invitation to bid on the remaining electrical installation of the emergency generator at the Burns Ave
Water Treatment plant was advertised with a bid opening date of August 25, 2009. Staff received five
responsive bidders (see attached bid tabulation sheet), with Estes Electric being the lowest bidder and a
local vendor.

Therefore, staff recommends that the Commission award bid #09-182 to Estes Electric, Inc for the electrical
installation of the emergency generator located at Water Treatment Plant #3 (Burns Ave Water Plant).

OPTIONS

None. The Department of Environmental Protection regulations stipulate that water treatment facilities
must have an emergency back-up power supply to allow for 24-hour operation capability under primary
power loss conditions.

FISCAL IMPACT

Funding in the amount of $225,000 was initially included in the FY’07-08 Water Division Capital
Improvements Budget for the engineering and generator purchase. Actual expenditures were as follows:
$101,315.00 for the purchase of the larger generator, $24,200.00 for the engineering and $17,959.00 for
the first phase of generator wiring.

Funds are available for the completion of this project in the FY’08-09 Water Division Capital
Improvements Budget.

[End agenda memo]

Agenda Item 8.            Renewal of Agreement with Lake Wales Little League

The full staff memo is incorporated into the minutes.
City Commission Meeting
September 15, 2009
Page 19 of 28


[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

Staff is submitting for renewal the City’s agreement with the Lake Wales Little League for mowing and
maintenance of the Little League fields.

RECOMMENDATION

Staff recommends that the City Commission approve the renewal of the agreement with the Lake Wales
Little League, Inc. for the period October 1, 2009 through September 30, 2010 with an addendum
reflecting the approved change in compensation.

BACKGROUND

The City of Lake Wales entered into an agreement with the Lake Wales Little League, Inc. to mow and
maintain the Little League fields and the area between the fence and the edge of the surrounding
roadway. The agreement began on October 1, 2008 and will expire on September 30, 2009. The
agreement may be renewed for four additional 12-month periods upon the agreement of both parties.
This will be the first renewal period.

The agreement stipulates that any changes in the term of the agreement be written as an addendum. An
addendum has been prepared to reflect the increase in compensation from $60,000 to $80,000 approved
by the City Commission with the adoption of the FY09’10 budget. All other terms and conditions of the
agreement remain unchanged.

OTHER OPTIONS

Renewal of the agreement is a necessary formality. The City Commission has already approved the
increase in compensation for next year.

FISCAL IMPACT

$80,000 is included in the FY09’10 budget for this contract.

[End agenda memo]

Agenda Item 9.            Renewal of Agreement with Florida KD Enterprises, Inc.

The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Teresa Allen, Public Services Director]

SYNOPSIS

Staff is submitting for renewal the City’s agreement with Florida KD Enterprises, Inc. for mowing and
maintenance of softball fields at the Northwest Complex.

RECOMMENDATION

Staff recommends that the City Commission approve the contract renewal with Florida KD Enterprises, Inc. for
maintenance of softball fields #1 & #2 at the Northwest Complex at an annual compensation of $11,500.00.

BACKGROUND
City Commission Meeting
September 15, 2009
Page 20 of 28


The original contract for maintenance for softball fields #1 and #2 at the Northwest Complex was entered into on
April 6, 2006 and expired on April 30, 2007. The contract could be renewed for four (4) additional twelve (12)
month periods, up to a maximum of sixty (60) months upon mutual agreement by both parties. On November 7,
2007 the contract was extended to September 30, 2007 (Amendment No. 1) which put the contract renewal on
the same time basis as the City’s fiscal year.

In October 2007, due to revenue reductions caused by the tax reform act, Amendment No.2 and contract
renewal reduced the annual compensation for the maintenance of softball fields #1 and #2 at the
Northwest Complex from $12,300.00 to $11,500.00.

OTHER OPTIONS

Do not approve the contract renewal

FISCAL IMPACT

Following first reading of Ordinance 2009-22 adopting the FY 09’10 budget, $11,500 was added by the
City Commission to fund this contract for 12 months, i.e., October 2009 through September 2010.

[End agenda memo]

Commissioner Rogers made a motion to approve the Consent Agenda with the modification of Agenda
Item 8 to decrease the amount of the Little League contract from $80,000 to $60,000. The motion was
seconded by Commissioner Wheeler.

         By voice vote:

                   Commissioner Rogers             “YES”
                   Commissioner Wheeler            “YES”
                   Commissioner Howell             “YES”
                   Commissioner Thornhill          “YES”
                   Mayor Van Sickle                “YES”

                   The motion carried 5-0.

OLD BUSINESS

Agenda Item 10.           Ordinance 2009-22, Five Year Capital Improvement Plan – 2nd Reading &
                          Public Hearing

Ms. Delmar reviewed Agenda Item 10. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The City Commission will consider adoption of the proposed 5-Year CIP for fiscal years 2009-2010
through 2013-2014. The proposed 5-Year CIP totals $34,979,616 in building and infrastructure
improvements, equipment purchases and land acquisition.

RECOMMENDATION

It is recommended that the City Commission enact Ordinance 2009-22 adopting the Five-Year Capital
Improvement Plan for fiscal years 2009-2010 through 2013-2014.
City Commission Meeting
September 15, 2009
Page 21 of 28


BACKGROUND

In accordance with section 6.05 of the City Charter, Ordinance 2009-22 adopts the proposed 5-year
Capital Improvement Plan (CIP) for the period FY09'10 through FY13'14. The 5-Year CIP document was
previously distributed to the City Commission for review. Capital improvements and capital acquisitions
proposed for Year 1 of the 5-Year plan are incorporated into the FY09'10 budget, as is appropriation of
funding sources necessary to implement Year 1 of the plan. Ordinance 2009-22 was approved by the
Commission after first reading on September 9.

The 5-Year CIP document includes a list of all capital facility and infrastructure improvements which are
proposed to be undertaken during the next five years and supporting information to explain the necessity
for the improvements. In addition, the CIP includes all capital equipment proposed for acquisition during
this period. Cost estimates, method of funding and time schedule for the proposed improvements and
equipment acquisitions are identified in the document.

The proposed 5-Year CIP totals $34,979,616 and includes $767,050 in land acquisition, $2,517,630 in
equipment acquisition, $4,672,060 in building improvements, $26,414,876 in infrastructure and recreation
improvements and $608,000 in other capital outlay.

Improvements and equipment needs for the next 5 years were submitted by department heads with a
justification of necessity and a recommended time schedule for completion or acquisition. These requests
were prioritized by the City Manager in view of the available funding resources and urgency of need and
either retained in the proposed 5-Year Plan or deferred until future 5-Year plans are developed.

Items included in the proposed 5-Year CIP can be classified in three categories as follows:

         1    -    Corrects existing or impending deficiency
         2    -    Improves productivity/efficiency or permits reallocation of existing resources
         3    -    Enhances quality of life

Items in Category 1 comprise 22.2% of the cost of the CIP ($7,677,717). These are improvements and
equipment acquisitions which are urgently needed to correct or prevent system or infrastructure failures,
threats to the public safety or welfare, or decline of service levels. Some of our currently utilized
equipment is 10-20 years old or older with high maintenance costs and low operational reliability, making
replacement a high priority. Also included in this category is the $1 million wastewater treatment plant
rehabilitation.

Items in Category 2 are equipment acquisitions or improvements that will improve productivity and
efficiency or otherwise enhance current service levels. These items represent 64.6% of the cost of the
CIP ($22,355,225).

Items in Category 3 are improvements in the area of Culture/Recreation which are viewed as important to
the community in terms of enhancing the quality of life but which might receive a lower priority in view of
the urgent needs which must be addressed. These items represent 13.2% of the cost of the CIP
($4,571,674), however 33.3% of this cost ($1,522,800) is funded by state, county or federal grants or
donations from private sources.

FISCAL IMPACT

Some of the improvements proposed for the utility system are eligible for low-interest SRF financing. With
the exception of the Wastewater Treatment Plant rehabilitation and upgrade improvements which will
require financing, it is anticipated that operating revenues and impact fees will be sufficient to fund the
utility system improvements included in the CIP. Funding of the non-utility system components of the CIP
requires no new taxes or fee increases for our citizens but will be accomplished through utilization of
City Commission Meeting
September 15, 2009
Page 22 of 28


existing cash surpluses and current year operating revenues, future grants, private contributions, and
impact fees.

Costs of all capital improvements and equipment acquisitions are distributed over 5 years as follows:

                               Year 1 – FY2009'10         9,576,073
                               Year 2 – FY2010'11         5,092,405
                               Year 3 – FY2011'12         10,470,859
                               Year 4 – FY2012'13         4,652,887
                               Year 5 – FY2013'14         5,187,392


                               5 Year Total               34,979,616

All items scheduled for Year 1 are included in the proposed FY09'10 operating budget presented to the
City Commission for consideration. Changes since the proposed budget was originally presented to the
City Commission on August 11 are as follows:

             38,269 Adding grant-funded mobile radios for Fire Department
           250,000 Adding grant-funded Kiwanis Park improvements
           748,762 Correcting cost of grant-funded Airport runway extension from $335,634 to
                   $1,083,496
           122,692 Correcting cost of grant-funded Airport MITL project from $196,205 to $318,897
            -40,000 Deleting Airport fuel truck funded by General Fund subsidy
    ___________
         1,119,723 Total change in Year 1 (FY09'10) Capital Outlay budget from original document

OTHER OPTIONS

Items may be re-prioritized or deleted from the 5-Year Plan, and items not currently included may be
added. The City Commissioners may choose to defer adoption of the Plan until a later date, however,
adoption of a 5-year capital program is required by City Charter.

[End agenda memo]

Ms. VanBlargan read Ordinance 2009-22 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, RATIFYING, APPROVING,
ACCEPTING AND ADOPTING A 5-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2009-
2010 THROUGH 2013-2014; REPEALING ALL ORDINANCES IN CONFLICT WITH THIS ORDINANCE
AND PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

There were no comments made by the public.

CLOSED PUBLIC HEARING
City Commission Meeting
September 15, 2009
Page 23 of 28


Commissioner Howell made a motion to adopt Ordinance 2009-22 after second reading and public hearing.
The motion was seconded by Commissioner Rogers.

         Roll Call:

                   Commissioner Howell         “YES”
                   Commissioner Rogers         “YES”
                   Commissioner Wheeler        “YES”
                   Commissioner Thornhill      “YES”
                   Mayor Van Sickle            “YES”

         The motion carried 5-0.

Agenda Item 11.            Ordinance 2009-23, FY08’09 Budget Amendment #3, 2nd Reading & Public
                           Hearing

Ms. Delmar reviewed Agenda Item 11. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Judith H. Delmar, City Manager]

SYNOPSIS

The Commission will consider adoption of the third amendment of the FY08'09 Budget adopted on
September 16, 2008.

RECOMMENDATION

It is recommended that the City Commission adopt Ordinance 2009-23 after second reading and public
hearing.

BACKGROUND

Ordinance 2008-34 estimating revenues and appropriating funds for Fiscal Year 2008-09 was adopted by
the City Commission on September 16, 2008 and amended by Ordinances 2009-07 and 2009-09. We are
presenting for second reading a third amendment of Ordinance 2008-34 to modify the estimates of
revenues and appropriations budgeted in various funds. Exhibits A and B and supporting attachments
provide the detail for the proposed amendment. This budget amendment is based on financial reports for
the accounting period ending on 7/31/09. The following is a summary of changes included in the
proposed amendment:



             Revenues & Balances Fwd                                Increase(Reduction)

                  General Fund                                      516,254

                  Special Revenue Funds                             60,463
                  Debt Service Fund                                 0

                  Capital Projects Fund                             82,750
                  Airport Fund                                      0

                  Utility System Fund                               (163,000)
             Total Increase(Reduction) of Revenues & Balances Fwd   496,467
City Commission Meeting
September 15, 2009
Page 24 of 28



             Appropriated Expenditures & Reserves
                  General Fund                                          35,727
                  Special Revenue Funds                                 12,815

                  Debt Service Fund                                     0
                  Capital Projects Fund                                 102,252

                  Airport Fund                                          0
                  Utility System Fund                                   0

                  Reserves                                              345,673
             Total Increase(Reduction) of Appropriated Expenditures
                                                                        496,467
             & Reserves

The proposed budget amendment increases the City’s total budgeted expenditures by $150,794 and
increases reserves by $345,673 for a net increase in appropriated expenditures and reserves of $496,467
(from $57,679,505 to $58,175,972).

Reasons for this amendment include:

•   balances forward must be adjusted to conform to the audited fund balances at 9/30/08.

•   revenue projections in the General Fund must be adjusted to reflect the March revision in the State
    revenue estimate for Municipal Revenue Sharing (-$4,477) and Half-Cent Sales Tax (-$23,632);
    these revenues were reduced twice after October 1, with a total reduction from the original estimates
    of $72,398.

•   revenue projections in the Utilities Fund must be adjusted to reflect the shortfall in water service
    charges relative to budget (-$200,000).

•   payroll expenditures are increased in the Community Policing Division (+$12,815) to adjust for the
    Police Officer position added on July 1 with 50% funded by the Lake Wales Housing Authority.

•   revenues and expenditures in the General Fund must be adjusted to record donations and
    expenditures related to the Veteran’s Memorial; a tentative budget of $7,000 for donations and
    $5,000 for expense is established

•   revenues and expenditures must be adjusted in the Capital Projects fund to reflect the County funding
    and the full cost of the Barney’s Dream playground equipment (+$82,750).
•   expenditures in the Capital Projects fund must be adjusted to carry forward the FY07'08
    encumbrance of $19,502 for Police rifles, funded by impact fees.

•   funds must be appropriated in the General Fund for the purchase of various items of equipment; i.e.,
    In-Car Cameras (+$9,833)for patrol vehicles; a trailer to replace one stolen from the Cemetery
    (+$1,152); and perimeter fencing for Barney’s Dream playground (+$,4000).

•   expenditures must be adjusted in the General Fund for addition of a security system and repairs to
    the Kirkland Gymnasium (+$9,620)

•   expenditures must be adjusted for repair of the A/C ($+3,700) and other maintenance/repair at the
    Depot (+$4,231); the additional expense is partly offset by the $3,000 reduction in the grant to Historic
City Commission Meeting
September 15, 2009
Page 25 of 28


    Lake Wales Society that the Commission approved in October 2008. This reduction was inadvertently
    omitted from the previous budget amendments and is included in Amendment #3.

•   expenditures must be increased in the Utilities Fund for M&R related to water lines and storage tanks
    (+$51,110); the additional cost is offset by an equal reduction in capital outlay budgeted for replacing
    the 9th St. booster station.

OTHER OPTIONS

Most of the budget amendment is not optional.

We are required by Charter to reduce budgeted appropriations when it appears that revenues will be
insufficient to meet the amount appropriated; this is the case with state-shared revenues in the General
Fund and water service charges in the Utilities Fund.

FISCAL IMPACT

See Exhibit A and Exhibit B attached to Ordinance 2009-23.

[End agenda memo]

Ms. VanBlargan read Ordinance 2009-23 by title only.

AN ORDINANCE OF THE CITY OF LAKE WALES, POLK COUNTY, FLORIDA, AMENDING
ORDINANCE 2008-34 AS AMENDED BY ORDINANCES 2009-07 AND 2009-09TO FURTHER MODIFY
THE ESTIMATES OF EXPENDITURES FOR THE OPERATION OF THE SEVERAL DEPARTMENTS
OF SAID CITY FOR THE 2008-2009 FISCAL YEAR AND TO FURTHER MODIFY THE
APPROPRIATION OF FUNDS RAISED AND COLLECTED FROM ALL SOURCES SET FORTH IN THE
ESTIMATE OF REVENUES FOR SAID FISCAL YEAR; REPEALING ALL ORDINANCES IN CONFLICT
WITH THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE.

OPENED PUBLIC HEARING

There were no comments made by the public.

CLOSED PUBLIC HEARING

Commissioner Howell made a motion to adopt Ordinance 2009-23 after second reading and public hearing.
The motion was seconded by Commissioner Rogers.

         Roll Call:

                   Commissioner Howell           “YES”
                   Commissioner Rogers           “YES”
                   Commissioner Wheeler          “YES”
                   Commissioner Thornhill        “YES”
                   Mayor Van Sickle              “YES”

         The motion carried 5-0.

NEW BUSINESS

Agenda Item 12.           Resolution 2009-12, Revenue Note Series 2009/Refinancing Portion of
                          Current Debt
City Commission Meeting
September 15, 2009
Page 26 of 28


Ms. Pendergrass reviewed Agenda Item 12. The full staff memo is incorporated into the minutes.

[Begin agenda memo, prepared by Dorothy Pendergrass, Finance Director]

SYNOPSIS

Staff is requesting that the City Commission authorize issuance of Refunding Revenue Note, Series 2009
in an amount not to exceed $2,000,000 in order to refinance two current obligations at a lower interest
rate.

RECOMMENDATION

It is recommended that City Commission authorize the issuance of not to exceed $2,000,000 Refunding
Revenue Note, Series 2009 to refinance the issuer’s outstanding Public Improvement Refunding
Revenue Bonds, Series 1997 and the Motorola Equipment Lease-Purchase Agreement.

BACKGROUND

The 1997 Public Improvements Bond with an outstanding principal balance of $1,695,000 currently has
an interest rate of 5%. The 2006 Motorola Lease for public safety radios with an outstanding balance of
$138,527 currently has an interest rate of 6.12%. The finance department recommends refinancing these
loans for a lower negotiated average coupon rate of 3.19% (All-In TIC 3.80%, which includes cost of
issuance $29,950 and underwriter discount of $2,500).

FISCAL IMPACT

The 1997 Public Improvement Revenue Bond expires on 10/1/2014 (5 years remaining debt service) and
the 2006 Motorola Lease expires on 10/1/2012 (3 years remaining debt service). The negotiated
refunding with SunTrust Bank would result in net savings of $57,524.37 over the remaining life of the
outstanding debt.

[End agenda memo]

Ms. VanBlargan read Resolution 2009-12 by title only.

A RESOLUTION OF THE CITY OF LAKE WALES, FLORIDA, AUTHORIZING THE ISSUANCE OF THE
NOT TO EXCEED $2,000,000 CITY OF LAKE WALES, FLORIDA REFUNDING REVENUE NOTE,
SERIES 2009, TO CURRENTLY REFUND THE ISSUER'S OUTSTANDING PUBLIC IMPROVEMENT
REFUNDING REVENUE BONDS, SERIES 1997 AND THE EQUIPMENT LEASE-PURCHASE
AGREEMENT #22904; PLEDGING CERTAIN FRANCHISE FEES TO SECURE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON SUCH NOTE; DESIGNATING THE NOTE FOR THE EXCEPTION
FOR CERTAIN TAX-EXEMPT OBLIGATIONS CONTAINED IN SECTION 265 OF THE INTERNAL
REVENUE CODE OF 1986; AUTHORIZING THE NEGOTIATED SALE OF THE NOTE; ACCEPTING
THE COMMITMENT OF SUNTRUST BANK TO PURCHASE SUCH NOTE; PROVIDING FOR THE
RIGHTS OF HOLDERS OF SUCH NOTE; MAKING CERTAIN COVENANTS AND AGREEMENTS IN
CONNECTION THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE.

Commissioner Thornhill made a motion to approve Resolution 2009-12. The motion was seconded by
Commissioner Rogers.

         Roll Call:

                   Commissioner Thornhill      “YES”
                   Commissioner Rogers         “YES”
                   Commissioner Wheeler        “YES”
City Commission Meeting
September 15, 2009
Page 27 of 28


                   Commissioner Howell                “YES”
                   Mayor Van Sickle                   “YES”

         The motion carried 5-0.

CITY MANAGER’S REPORT

CITY COMMISSION TRACKING REPORT

Adult daycare center: Ms. Delmar said the Board of County Commission would be voting on the funding
for the adult daycare center project tomorrow.

Commissioner Wheeler asked for an update on the stop light at Mountain Lake Cut-off Road and Scenic
Highway. Police Chief Herbert Gillis said he would find out the status and report back to the Commission.

Commissioner Thornhill suggested taking the economic summit item off the Tracking Report until after the
first of the year.

COMMUNICATIONS AND PETITIONS

David Smith, Babson Park, said the Commission voted on employee raises and on the amount to pay the
Lake Wales Little League. He said the Kirkland Gym was part of the discussions since the first reading of
the budget ordinance. The City Manager said tonight that Webber University would like to operate the
gym somewhere down the line, but the Commission did not decide on whether to let them do that or not.
Mr. Galloway said the only thing that Commission did tonight is to allocate funds for the operation of the
gym. The fact that Webber is interested in helping the City provide a program is not a funding-based
issue. It would be an issue of a discussion as to whether they could make that program work or not. The
Commission would vote on that after having the opportunity to discuss it.

Jean Scott, 306 Townsend Avenue, asked who is responsible for the mowing of the rights-of-way from
Central Avenue going north on Hwy. 27. She said there is high grass there. Ms. Delmar said Prince Land
Services currently mows that area. The City will be taking over January 1.

Ms. Scott said some of the Little League parents might not live in Lake Wales, but they probably buy their
gas, food, clothing, etc. in Lake Wales. That is contributing to the City, which is much needed support.

Jack Neal, 435 E. Central Avenue, thanked the Commission for doing a great job at trying to solve a
problem that we did not have enough money to solve.

CITY COMMISSION COMMENT

Commissioner Rogers said he believes that the Commission is making a little progress by discussing some
things together though not always agreeing together. However, that is good because different views bring out
different points. The Finance Director is looking out for the City financially by going out to bid in hopes of saving
the City money. We are making progress. It might be slow, but at least we are making progress. He said he
appreciates the fine job that the Finance Director and other City staff are doing for the betterment of the City.
Commissioner Rogers thanked the Commission for working together tonight and sharing viewpoints.

Commissioner Howell asked why there is a turn signal arrow mounted in the median at the intersection of Hwy.
27 by Huston Motors [Mt. Lake Cutoff Rd.], but not at the intersection of Washington Avenue and Hwy. 27.
Police Chief Herbert Gillis said he is not sure, but he felt it had something to do with the width of the intersection
and visibility of the turn signal. He would ask the engineer with FDOT.
City Commission Meeting
September 15, 2009
Page 28 of 28


Commissioner Wheeler said for many years, he has watched the Lakes Wales’ Commissioners vote 5-0 on
almost everything. To see some discourse in the discussions among the Commissioners in the Commission
Chambers is a refreshing sign of democracy at work, which makes the public feel better about things.

Mayor Van Sickle said he agrees with both Commissioner Wheeler and Commissioner Rogers. He has always
stated that if you have people who think alike, you would not get much done, but you can get better answers
from different views.

There being no further business, the meeting was adjourned.



                                                          __________________________
                                                          Mayor/Commissioner
ATTEST:


_____________________________________
City Clerk
            L ake Wales Police Department

                  133 East Tillman Avenue – Lake Wales, Florida 33853
                     (863) 678-4223 Office    (863) 678-4298 Fax




                              Memorandum
To:             Honorable Mayor and City Commission

Via:            Herbert E. Gillis, Chief of Police
                                                     jhd
                Judith H. Delmar, City Manager

From:           Patrick Quinn, Captain

Date:           September 22, 2009

Subject:        Award of a Contract to Harrison Uniform Company.

Synopsis:       The City Commission will consider awarding a contract to Harrison Uniform
                Company for the purchase of law enforcement uniforms and accessories.



RECOMMENDATION

It is recommended the City Commission:

1. Award a contract to Harrison Uniform Company for the purchase of law enforcement
   uniforms and accessories.
2. Authorize the city manager to execute the contract documents.

BACKGROUND

The Lake Wales Police Department has 65 paid and volunteer members that require uniforms and
related accessories. The Police Department seeks authorization from the City Commission to
purchase uniforms from Harrison Uniform Company as uniform expenditures will exceed $10,000
in Fiscal Year 2009/2010.

In January of 2009 the City Commission approved an agreement with PRIDE Enterprises to
provide law enforcement uniforms for the Police Department. Due to budget cuts within the
State, PRIDE Enyerprises was unable to provide uniforms.

Staff has since received authorization from the Commission to issue an invitation to bid for law
enforcement uniforms and accessories. A total of 4 uniform suppliers responded (see attached
bid tabulation).

Overall the uniform prices bid by Harrison Uniform Company are less expensive than any of the
other suppliers. Staff has asked for and received a sample uniform from Harrison and is satisfied
with the quality of the garments.



                         Building Partnerships for a Safer Community
OTHER OPTIONS

The Commission may choose not to authorize the Police Department to purchase uniforms from
Harrison Uniform Company.

FISCAL IMPACT

The Fiscal Year 2009/2010 Operating Budget provides $20,000 for the purchase of law
enforcement uniforms and accessories.

ATTACHMENTS

Bid Tabulation Sheet




                       Building Partnerships for a Safer Community
                                BID TABULATION - POLICE UNIFORMS BID# 09-180
                                                PLEXUS INC      PATRICK'S UNIFORMS     RIVERSIDE MFG. HARRISON UNIFORMS
MEN'S PANTS                               44-50     $     31.95           $    33.75           $ 35.26         $   25.89
                                          52-54     $     33.95
WOMEN'S PANTS                             4-18      $     29.95           $    33.75          $ 35.26          $   25.89
                                          20-24     $     31.95
MEN'S EXPLORER PANTS                      28-42     $     29.95           $    33.75          $ 35.26          $   25.89
                                          44-50     $     31.95
                                          52-54     $     33.95
WOMEN'S EXPLORER PANTS                    4-18      $     29.95           $    33.75          $ 35.26          $   25.89
                                          20-24     $     31.95
UNISEX BDU'S K9                           XS-XL     $     24.90           $    28.75          $ 42.75          $   25.25
                                          XXL       $     25.90
SRT BLACK BDU'S                           XS-XL     $     24.90           $    28.75          $ 42.75          $   22.99
                                          XXL       $     25.90
SRT OD GREEN BDU'S                        XS-XL     $     24.90           $    28.75          No Bid           $   22.99
                                          XXL       $     25.90
MEN'S SHORTS                              28-42     $     30.95           $    33.75          $ 48.10          $   25.89
                                          44-50     $     32.95
                                          52-54     $     34.95
WOMEN'S SHORTS                            4-18      $     30.95           $    33.75          $ 28.84          $   25.89
                                          20-24     $     32.95
MEN'S SHORT SLEEVE SHIRT                  S-XL      $     31.95           $    36.75          $ 29.91          $   26.99
                                          XXL       $     34.95
                                          XXXL      $     37.95
                                          XXXXL     $     40.95
WOMEN'S SHORT SLEEVE SHIRT                XS-XL     $     31.95           $    36.75          $ 29.91          $   26.99
                                          XXL       $     34.95
MEN'S LONG SLEEVE SHIRT                   S-XL      $     32.95           $    39.75                           $   29.99
                                          XXL       $     35.95
                                          XXXL      $     38.95
                                          XXXXL     $     41.95
WOMEN'S LONG SLEEVE SHIRT                 XS-XL     $     32.95           $    39.75                           $   29.99
                                          XXL       $     35.95
M/W SHORT SLEEVE EXPLORER SHIRT           XS-XL     $     31.95           $    34.00          $ 38.47          $   35.00
                                          XXL       $     34.95
                                          XXXL      $     37.95
                                          XXXXL       $     40.95
M/W V.O.I.C.E. SHORT SLEEVE SHIRT         XS-XL       $     34.95             $    36.75   $ 38.47        $   35.00
                                          XXL         $     37.95
                                          XXXL        $     40.95
                                          XXXL        $     43.95
PE WOMEN'S SHORT SLEEVE SHIRT             XS-XL       $      9.95             $    25.75   $ 25.63        $   13.99
                                          XXL         $     11.55
UNISEX BICYLCE SHIRT                      S-XL        $     34.95             $    39.99   $ 39.54        $   49.99
                                          XXL         $     36.95
                                          XXXL        $     36.95
                                          XXXXL       $     38.95
UNISEX BDU LONG SLEEVE SHIRT              XS-XL       $     32.95             $    33.75   $ 42.75        $   27.99
                                          XXL         $     33.95
UNISEX BDU SHORT SLEEVE SHIRT             XS-XL       $     30.95             $    30.75   $ 39.54
                                          XXL         $     31.95
UNISEX BDU LONG SLEEVE SHIRT              XS-XL       $     27.95             $    30.75   $ 42.75        $   25.99
                                          XXL         $     28.95
UNISEX BDU SRT GREEN LONG SLEEVE SHIRT    XS-XL       $     27.95             $    30.75   No Bid
                                          XXL         $     28.95
COVERALLS                              REGALL SIZES   $     26.95             $    44.75   No Bid         $   53.99
                                       TALALL SIZES   $     29.95
WINTER JACKET                             S-XL        $     99.95             $   104.75   $ 139.05       $   91.00
                                          XXL         $    109.95
                                          XXXL        $    119.95
DRESS HAT                                             $     49.95 W/O VISOR   $    58.75   108.61/80.25   $   46.99
                                                                  W/VISOR     $    88.75
CORDS W/ACORNS                                        $8.95/CORD              $     8.99   $   7.49       $    5.99

PLASTIC HAT COVERS                                    $     2.95              $     3.95   No Bid         $    2.99

TIES                                                  $     3.95              $     4.50   $ 10.70        $    2.99

PARADE DICKEYS                                        $     4.95              $     8.99   No Bid         $    3.99

CITATION CORDS                                        $     9.95              $    21.99   $ 12.84        $   15.99

PARADE GLOVES                                                                 $     2.99   $   7.49       $    2.99
                                MASTER PURCHASE AGREEMENT

This Agreement is made this     day of October, 2009 by and between the City of Lake Wales with
offices at 201 Central Avenue W., Lake Wales, FL 33853 (hereinafter “City”) and Harrison Uniform
Company, with offices at 4065 L.B. McLeod Rd., Ste. F, Orlando, FL 32811 , (hereinafter "Seller").


1.     SCOPE OF AGREEMENT

A.     This Agreement shall apply to the Lake Wales Police Department division of City which, for
       purposes hereof, shall be included within the definition of “City”.

B.      This Agreement shall apply to the purchase of the Products set forth in Exhibit A, attached
hereto, during the term of this Agreement. The prices for the Products and quantities are listed on
Exhibit A. The terms and conditions of this Agreement shall apply to all purchase orders issued
hereunder, and all other terms and conditions contained in either party's documents shall be
inapplicable.

C.      This Agreement does not constitute a purchase order. Purchases under this Agreement
shall be made only with purchase orders issued by City. Seller agrees that City has made no
guarantee or commitment that City will purchase any minimum quantity of Products under this
Agreement, and it is understood that the quantities of individual parts purchased may vary.

D.      The sole liability of the City shall be limited to the payment for all acceptable Products
delivered under this Agreement as authorized by City's issuance of purchase order(s). City's
Purchasing Department is the only department authorized to issue purchase orders under this
Agreement. City shall have no liability to Seller for any orders issued by anyone other than City's
Purchasing Department.

2.     TERM AND TERMINATION

A.      This Agreement shall commence on              and expire on September 30, 2010], with the
option to renew for two (2) consecutive one (1) year terms, except that purchase orders under this
Agreement may call for delivery after the expiration of the Agreement.

B.     City may terminate this Agreement at any time on giving Seller thirty (30) days prior written
       notice.

3.     PRODUCTS AND PRICING

A.     The City is obligated to buy, and is liable only for, the quantity of Products stated on each
purchase order issued to Seller.

B.      If at any time during this Agreement, Seller offers for sale any of the Products covered by
this Agreement at a lower price for similar quantities, then it shall be deemed as of the effective date
thereof that prices hereunder have been amended to reflect such lower prices for similar quantities.
Seller shall promptly notify City of any such price reduction.
4.      PURCHASE ORDERS

A.     City shall use reasonable efforts to ensure that all purchase orders issued by City hereunder
reference this Agreement. This Agreement shall, however, apply to any purchase order issued
hereunder whether or not such reference has been placed on the purchase order.

B.    This Agreement and all purchase orders issued hereunder shall be subject to the Terms
and Conditions of Purchase, as set forth in Exhibit B, unless there is a conflict with the terms of this
Agreement. If a conflict exists, the terms of this Agreement will take precedence.

C.    The invoice payment terms for the purchase orders placed hereunder shall be net forty-five
days.

D.      The FOB point specified on purchase orders shall be, Lake Wales Police Department, 133
East Tillman Avenue, Lake Wales, Florida, 33853, (“City facility”).

E.      1.      Delivery dates for the Products shall be those stated on City's purchase orders.
Such delivery dates are "on dock" at City's facility. Seller will notify City immediately of any
anticipated late deliveries or any impending shutdown of facilities for any reason. City's acceptable
delivery window is within (15) fifteen calendar days from date of order. For “New Hire” uniforms,
delivery must be made within seven (7) calendar days from date of order.

        2.     If Seller fails to meet any such delivery with the result that the City requires, and
Seller makes, express shipments, partial shipments, or both, then Seller agrees to assume all
resulting excess shipping charges.

F.        City may terminate any purchase order, in whole or in part, at no cost and without any
liability upon giving Seller (30) thirty days written notice prior to the delivery date. In addition, City
may reschedule delivery of any Products by giving Seller at least (10) ten days notice prior to the
scheduled delivery date.

5.      ACCEPTABLE QUALITY LEVELS

A.       Seller agrees to maintain a quality control system for all Products to be delivered hereunder
that will eliminate rejects and will strive toward a goal of zero defects. Such a system shall include
process controls that will provide for inspection and verification of all critical parameters or
operations on a regular or continuing basis throughout the manufacturing process.

B.      City may terminate this Agreement, with no liability, on (15) fifteen days written notice if
Seller's quality falls below a minimum acceptable quality level, which level shall be determined in
City’s sole discretion.

6.      ADMINISTRATION AND REPORTING

A.     City and Seller shall each assign an individual to administer this Agreement throughout its
term. The City's administrator shall be Captain Patrick Quinn. The Seller's administrator shall be
Marcia McClain. Each party shall inform the administrator of the other in writing of any change in an
administrator or such administrator's location or telephone number.

7.      GENERAL PROVISIONS
A.     This Agreement is nonexclusive, and its validity, performance and construction shall be
governed by the laws of the state of Florida.

B.      Seller may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of City.

C.     Seller shall, at City's request, renegotiate in good faith any provision of, or addition to, this
Agreement. Such mutually agreed upon changes shall be signed by both parties and incorporated
as an amendment to this Agreement.

D.      In performing this Agreement, Seller shall comply with all applicable federal, state and local
laws and regulations and with all quality control and quality assurance procedures specified by City.
Seller shall make its production facilities and production records and documentation available for
inspection by City, upon reasonable prior notice.


E.     Any notice, request or other document (with the exception of purchase orders and invoices)
deemed by City or Seller to be necessary to be given to the other shall be in writing, delivered either
personally or by certified mail to the following addresses:

       To City:        City of Lake Wales Purchasing Agent
                       P.O. Box 1320
                       Lake Wales, FL 33859-1320


       To Seller:      The President
                       Harrison Uniform Company
                       4065 L.B. McLeod Rd., Ste F
                       Orlando, FL 32811
F.      This Agreement, in combination with the purchase orders issued pursuant hereto,
constitutes the entire Agreement between the parties relative to the Products listed in Exhibit A, and
supersedes all prior or contemporaneous agreements, written or oral, between the parties
regarding such Products. Any addition to or modification of this Agreement shall not be binding
unless in a writing signed by an authorized representative of both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.



City                   Seller

By:                             By:


Printed Name                    Printed Name

Title:                          Title:

Date:                           Date:




Exhibit A:     Products and Pricing

Exhibit B:     Terms and Conditions of Purchase Order
                                            MEMORANDUM

September 28, 2009


TO:               Honorable Mayor and City Commission

                                                jhd
VIA:              Judith Delmar, City Manager

FROM:             James Slaton, Information Technology Director

RE:               Digital Copier Lease With Konica Minolta Business Solutions USA

Synopsis:         The City Commission will consider entering into a lease with Konica Minolta Business
                  Solutions USA Inc. to replace digital copiers currently utilized by the City under an
                  expiring lease.

RECOMMENDATION

Staff recommends the Commission approve a 36-month lease agreement with Konica Minolta Business
Solutions USA Inc., with an optional 12-month extension at the same monthly price, for 9 digital copiers.

BACKGROUND

The existing lease with Ricoh Americas Corporation for copier machines has expired. We have
experienced a sub-standard level of service from Ricoh, our current provider, in the critical areas of
technical support and device stability. After approval of the RFP document by the City Commission, staff
advertised a Request for Proposals to acquire a new copier machine provider. Machines for which a
proposal was requested are as follows:

           •   7 Multi-Function machines at 32 pages per minute
           •   1 Multi-Function machine at 65 pages per minute
           •   1 Color laser printer at 35 pages per minute B&W / 21 pages per minute color

Four companies responded to the RFP with proposals: Xerox Corporation, Ricoh Americas Corporation,
Dex Imaging (Kyocera), and Konica Minolta.

City staff reviewed each of the four proposals and ranked them based on the following criteria:

      1.   Quality and performance of the equipment and network security
      2.   Maintenance, supply and repair services
      3.   Experience of the bidder and demonstrated ability to provide the equipment
      4.   References
      5.   Additional benefits to customer

After reviewing the proposals, Xerox Corporation was ranked highest based on the given criteria, Konica
Minolta second, Dex Imaging third, and Ricoh Americas Corporation fourth.

Due to the significantly higher cost of the Xerox equipment, staff’s recommendation is to select Konica
Minolta Business Solutions USA Inc. as our new copier machine provider because of pricing and support
capability. Konica Minolta proposed a multi-function color copier/printer/scanner that is more cost-
effective for the City to lease than a single-function color laser printer, therefore staff is recommending
the lease of 9 multi-function copiers instead of the 8 copiers and 1 color laser printer originally
envisioned.

Although we specified a 48-month lease term in our RFP, Konica Minolta only offers a 36-month or a 60-
month lease with an option for a 12-month extension. Staff is recommending a 36-month lease with a
12-month extension option; i.e., the equivalent of a 48-month lease term.

All of the vendors responding to the City’s RFP submitted proposals based on state contract pricing or
agreements with other governmental agencies. Konica Minolta, our recommended vendor, submitted a
proposal based on a Memorandum of Understanding (MOU) with the University of Florida that they
consider their standard pricing offered to all municipalities at this time.

OTHER OPTIONS

The Commission may choose not to approve the lease with Konica Minolta Business Solutions Inc. and to
award the contract to one of the other companies responding. Alternatively, the City Commission may
direct staff to re-advertise the Request for Proposal for a copier machine vendor.

FISCAL IMPACT

The total cost for the Konica Minolta equipment, including our average monthly usage multiplied by per
click charges of .0056 for the 75-ppm machine and .0075 for the 36-ppm machines, is approximately
$1,932.34 per month. This is approximately $167.66 per month less than the funds included in the
FY09’10 budget for a copier machine lease.

ATTACHMENTS

Konica Minolta Proposal
Staff RFP Ranking Form
Proposals from other Vendors
                                         MEMORANDUM

October 1, 2009

TO:            Honorable Mayor and City Commissioners

                                                  jhd
VIA:           Judith H. Delmar, City Manager

FROM:          Katie Kinloch, Administrative Assistant to City Manager

SUBJECT:       Lake Wales High School Homecoming Parade and Road Closings

SYNOPSIS: Approval of the street closing request will allow the Lake Wales High School
          Homecoming Parade to be held on Thursday, October 8, 2009.



RECOMMENDATION

It is recommended that the City Commission approve the special permit application from Lake
Wales High School for the Homecoming Parade to be held Thursday, October 8, 2009 from 4:00 pm
to 6:00 pm.. The application also includes a request for the road closing of First Street from SR60
to Central Avenue, Central Avenue from First Street to Lakeshore Boulevard, and from Lakeshore
Boulevard to Legion Field.

BACKGROUND

Ms. Tami Lefstead from the Lake Wales High School submitted a special event permit application
 for the Homecoming Parade to be held on Thursday, October 8, 2009 between the hours of 4:00
pm and 6:000 pm. The requested temporary street closings will involve the following streets;

               First Street from State Road 60 beginning at Polk Avenue Elementary School north
               to Central Avenue, turn right and head east on Central Avenue crossing Scenic Hwy.
               (SR 17) to Lakeshore Boulevard, turn left on Lakeshore Boulevard, continue to
               Legion Field where the parade ends.

The crossing of Scenic Hwy (SR 17) requires a road closing permit from the Florida Department of
Transportation. This permit request has been submitted to the FDOT office in Bartow. All
Departments have reviewed the application and have approved the event. Lake Wales Police
Department and VOICE will be available to provide escort for the parade and for traffic control. The
Streets Department will be providing assistance with the barricades for the street closings and will
take care of normal street cleaning on Friday. The school has provided the required proof of liability
insurance.

OTHER OPTIONS
Do not approve the request for the road closings for the event.

FISCAL IMPACT

Cost for in-kind services provided by the Lake Wales Police Department will be $740.00. VOICE
will also be assisting with the event.

ATTACHMENTS

Application for Special Event Permit
Agreement to assume Financial Responsibility
Parade Route Map
                                      MEMORANDUM

October 1, 2009

TO:           Honorable Mayor and City Commission

                                            jhd
VIA:          Judith Delmar, City Manager

FROM:         Jennifer Nanek, Grants Administrator

RE:           34th Annual Pioneer Days Celebration and Road Closure

SYNOPSIS      The Historic Lake Wales Society requests that the City Commission authorize the
              temporary closing of certain streets for the car parade that will take place during
              the Pioneer Days event.

RECOMMENDATION

Staff recommends the closing of Seminole Ave. from Scenic Hwy. to First Street; First
Street from Seminole Ave. to Central Ave.; Central Ave. from First Street to Lake Shore
Blvd.; Lake Shore Blvd. from Central Ave. to Wales Blvd. and 5th Street from Lake
Shore Blvd. to Crystal Lake Park for the Car Parade on October 24, 2009 from 11:00 a.m.
to 1:30 p.m.

BACKGROUND

Mimi Hardman, President of the Historic Lake Wales Society, submitted a special event
application for the annual Pioneer Days celebration held from October 23, 2009 through
October 25, 2009. They will have a car parade on Saturday, October 24 with a need of
temporary closure of streets associated with the parade route. Approval from FDOT is pending.

OTHER OPTIONS

Do not approve the road closure.

FISCAL IMPACT

In-Kind services were approved for this special event in the FY-09'10 budget: $1,760 for
Police Department services; $4,540 for Field Operations and $4,000 cash.

ATTACHMENTS

Special Event Permit Application
Location Map of Activities
Map of Carriage Tour
Financial Liability Form
Map of Car Parade Route
                                        MEMORANDUM
October 1, 2009

TO:            Honorable Mayor and City Commissioners

                                                 jhd
VIA:           Judith H. Delmar, City Manager

FROM:          Katie Kinloch, Administrative Assistant

SUBJECT:       Veterans Day parade

SYNOPSIS:      Approval of the street closing request will allow the Veterans Day Parade to be held
               on Saturday, November 14, 2009.

RECOMMENDATION

It is recommended that the City Commission approve the special permit application from the VFW
for the Veterans Day Parade to be held Saturday, November 14, 2009 from 11:00 am to Noon. The
application includes a request for the road closing of Lakeshore Boulevard at Park Avenue,
intersection of Park Avenue and Scenic Highway (SR 17), Scenic to First Street, First Street south
to Stuart Avenue, Stuart Avenue east to Scenic, south on Scenic to Central Avenue, Central Avenue
west to the VFW.

BACKGROUND

Ed Perkins of the VFW submitted a special event permit application for the Veterans Day Parade
to be held November 14, 2009 between the hours of 11:00 am and Noon. Line up for the parade
entries will begin at 10:00 am at Lake Wailes Park.. This parade is an integral part of the Lake
Wales Main Street and Hot Tails Cycles “Rumble on the Ridge – A Salute to Veterans” that was
approved by the City Commission at its meeting on September 9, 2009.

The requested temporary street closing will involve the following streets;

       Lakeshore Boulevard beginning at Lake Wailes Park, head west on Park Avenue to
       Scenic Highway (SR 17), cross Scenic and continue west to First Street, turn south on
       First Street to Stuart Avenue, continue east on Stuart Avenue to Scenic and head south to
       Central Avenue, continue west on Central to the VFW located at Central and Martin
       Luther King Blvd where the parade ends.

The crossing of Scenic Hwy (SR 17) requires a permit from the Florida Department of
Transportation. This permit request has been sent to FDOT in Bartow and approval is pending. All
Departments have reviewed the application and have approved the event. Lake Wales Police
Department and VOICE will be available to provide escort for the parade and for traffic control. The
Streets Department will be providing assistance with the barricades for the street closing The event
sponsor is responsible for the trash clean up after the event is concluded. The Streets Department
will take care of the normal street cleaning and trash pick up during the week. The VFW is providing
proof of liability insurance as required.

OTHER OPTIONS

Do not approve the request for the road closings for the event.

FISCAL IMPACT

There is $21,000 budgeted for in-kind services for special events.

ATTACHMENTS

Application for Special Event Permit
Agreement to assume Financial Responsibility
Parade Route Map
                                      MEMORANDUM

September 30, 2009

TO:           Honorable Mayor and City Commissioners

VIA:          Judith Delmar, City Manager jhd

FROM:         Margaret Swanson, Director of Planning and Development

RE:           “Lowe’s of Lake Wales” Commercial Subdivision – Final Plat
              East side of US Highway 27 North

SYNOPSIS: Approval of a final subdivision plat is requested to divide 33 acres of commercial
          land on the east side of US Highway 27 North into 5 parcels, including a parcel
          where the Lowe’s Home Improvement Center was built, a drainage parcel and 3
          out-parcels along the highway.

Recommendation: Approval of plat as submitted.

No recommendation from Planning Board or public hearing is necessary for approval of a final
plat. Provided the plat meets all of the requirements of state statutes and local ordinances,
approval by the city commission is a formality.

Background: Brian Spiess of CPH Engineering requests the plat approval on behalf of Lowe’s.
The property is approximately 33 acres located at the northeast corner of Highway 27 and south
of the Eagle Ridge Mall.

Land use designations on the property are RAC– Regional Activity Center (Future Land Use
Map) and C-3 Highway Commercial district (Zoning Map). These designations allow a variety
of commercial and professional uses. Lowe’s Home Improvement Center encompasses 27.87
acres including tract “A” which is designated for retention. Out parcel lot 2, consisting of 1.7
acres, is approved for construction of an ABC Liquor store; lots 1 and 3 are not currently
proposed for development.

The requirements for approval of the final subdivision plat are:
• Consistency with the approved preliminary plat (confirmed)
• Compliance with PDP approval for dimensional requirements (confirmed)
• Approval of the plat and survey by the city’s consulting surveyor (confirmed)
• Approval of the title opinion and associated documents by the city attorney (completed)

Attachments:
Final plat, “Lowe’s of Lake Wales”

				
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