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Home My WebLink AboutPacket 03-18-2003 54ACE Aid City of Cape Canaveral CITY OF CAPE CANAVERAL CITY COUNCIL REGULAR MEETING CITY HALL ANNEX 111 Polk Avenue, Cape Canaveral, Florida TUESDAY March 18, 2003 7:00 PM AGENDA CALL TO ORDER: PLEDGE OF ALLEGIANCE: ROLL CALL: PRESENTATIONS: Student Art Show Award Winners, Business and Cultural Development Board CONSENT AGENDA: 9. City Council Regular Meeting Minutes of March 4, 2003. 2. Resolution No. 2003-09; Appointing an Alternate Member to the Planning & Zoning Board. (Dennis Jenkins). CONSIDERATIONS: 3. Motion to Approve: Annual Audit for the Year Ending September 30, 2002 as Presented by Bray, Beck and Koetter, CPAs, P.A. 4. Motion to Approve: Design Build Proposal for the North Ridgewood Avenue Stormwater Detention Basin, Stottler, Stagg and Associates in the Amount of $37,000. 105 Polk Avenue • Post Office Box 326 • Cape Canaveral, FL 32920-0326 Telephone (321) 868-1220 • FAX(321) 799-3170 • www.fcn.state.fl.us/cape e-mail. ccapecanaveral@cfl.rr.com II �scGP' of Cape Canaveral, Florida City Council Regular Meeting March 18, 2003 Page 2 ORDINANCES: Second Public Hearing: 5. Motion to Adopt: Ordinance No. 08-2003; Providing for the Advance of Funds to Construct Required Sidewalks and Impose a Sidewalk Impact Fee. ORDINANCES: First Public Hearing: 6. Motion to Adopt: Ordinance 09-2003; Amending Section 110-171; Providing for Filing Requirements; Providing for the clarification of Code Requirements, for second reading. RESOLUTIONS: 7. Motion to Adopt: Resolution No. 2003-10; Legal Services Contract with Brown, Ward, Salzman and Weiss, P.A. DISCUSSION: 8. Review of Manatee Park Pavilion Preliminary Plans. REPORTS: 1. City Manager 2. Staff 3. City Council ADJOURNMENT: Pursuant to Section 286.0105, Florida Statutes,the City hereby advises the public that: If a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting,that person will need a record of the proceedings, and for such purpose that person may need to ensure that a verbatim record of the proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission into evidence of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law. Persons with disabilities needing assistance to participate in any of these proceedings should contact the City Clerk's office(868-1221)48 hours in advance of the meeting. City Managers Office Me To: BENNETT C. BOUCHER, TY MANAGER Front KIM M.MC INTIRE, BOARD SECRETARY TO THE BUSINESS&CULTURAL DEVELOPMENT 130ARD Date: 3/11/2003 Ree CAPE CANAVERAL'S FOURTH ANNUAL STUDENT ART SHOW The City's Business & Cultural Development Board hosted the Fourth Annual Student Art Show on Saturday, March 8, 2003 at the Cape Canaveral Library. Top honors went to the following students: AWARD STUDENT SCHOOLIGRADE Poster Contest Winner Danielle Granier Rockledge High School, 12 grade Judges Choice Christine Moore Merritt Island High School, 12 grade Best In Show Brody Heitman Capeview Elementary School, Exceptional Education Best In Show Richard Thorsen Roosevelt Elementary School,e grade Best In Show Barbara Kalimnios Merritt Island high School, 12th grade Best In Show Brouce Allen Rockledge High School, I Om grade Best In Show Robert Peters Cocoa Beach Jr1Sr High School, 1 Grade All of the students who participated in the show, as well as their families and the art teachers have been invited to attend the March le City Council Meeting. Five of the above winners submitted one- dimensional artwork, and the City will present those students with their artwork framed as well as a certificate for a$100 EE Savings Bond for those students who were not in attendance to receive them during the awards portion of the art show on March 8. e Page 1 CITY COUNCIL REGULAR MEETING CITY HALL ANNEX 111 Polk Avenue, Cape Canaveral, Florida TUESDAY March 4, 2003 7:00 PM MINUTES CALL TO ORDER: ROLL CALL: Council Members Present: Mayor Rocky Randels Mayor Pro Tem Buzz Petsos Council Member Bob Hoog Council Member Jim Morgan Council Member Richard Treverton Staff Present: City Manager Bennett Boucher City Attorney Anthony Garganese City Clerk Susan Stills Public Works Director Ed Gardulski Assistant Public Works Director Walter Bandish Acting Building Official Todd Morley BOARD INTERVIEWS: Dennis R. Jenkins, Planning &Zoning Board Attorney Garganese asked if all questions were answered to the best of the applicant's knowledge. Mr. Jenkins affirmed. Mr. Jenkins stated that he is an engineer by training and found the Board's background relative to his interest. His site plan experience is in the space industry. Attorney Garganese inquired about his philosophy on vested rights. Mr. Jenkins replied that if a reasonable amount of time has transpired then vested rights would super cede the code. However, to the matter in question further thought is required on his part. Mr. Morgan stated that he would be an asset to the Board. Mayor Pro Tem Petsos expressed his appreciation for his interest and stated that Mr. Jenkins' manner of logic and common sense are valuable. Mayor Randels explained that the next step in the process is a Resolution on the next City Council Meeting Agenda to appoint Mr. Jenkins to the Board. City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 2 PRESENTATION: Reclaimed Water Distribution System Improvements Study, Brown & Caldwell Mayor Randels explained that this presentation would provide input on the continued build-out for the reclaimed water system. Mr. Ted Hortenstine began his presentation by outlining the goals of the overall system: improved pumping efficiency, modifications to allow system build out, evaluate resource management options and to provide an opinion of probable costs for recommendations. He stated the initial purpose of reclaimed water: to remove effluent from the Indian River. Reclaimed water is now viewed as a critical service. He focused on two main issues: reclaimed water as a resource and reclaimed water for pumping and distribution. Mayor Pro Tem Petsos clarified that the City is committed to the City of Cocoa Beach only for distribution through an agreement and not to the Port. Some improvements considered for the water supply: additional operational storage such as aquifer storage and recovery well, also, installing another valve to allow easier tank cleaning. Mr. Hortenstine reviewed data analysis regarding meeting system demands. A system model was developed using H2ONet software to manipulate the system's data. Some improvements considered during the Modeling: A Conservation Based Approach, Zone Approach and System Build-Out to Include Remaining Streets. Mr. Hortenstine reviewed the cost for System Build Out and Recommendations. A recommended approach to System Build Out is a Phased Approach. Phase 1 and 2 would evaluate the effectiveness of improvements and determine if Phase 3 were needed. Phase 3 would provide additional storage. Phase 4 stated that system build out could be done over several years. Other improvements are to consider conservation measures during drought conditions. Mr. Hortenstine stated that reclaimed water has become a valuable commodity due to changing perceptions in water conservation. Mayor Randels stated the proposal provided no new insight to what the Public Works Director had already reported. He also asked to know when the finished system would be available and noted the expense to connect one household. Mr. Hortenstine explained that providing an uninterruptible service required more effort and the system was not established for such an operation. Mayor Pro Tem Petsos expressed that an informed decision could be made using the data provided along with a report from the City Manager on the reuse agreement with the City of Cocoa Beach. Mr. Boucher informed that Mr. Hortenstine would contact the Florida Department of Environmental Protection on some type of protocol with the onset of a dry season. Mayor Pro Tem Petsos pointed out that the City is still only using an average .55 and sending .77 million gallons per day to the river and stated that an additional tank might better conserve the resource. Mr. Paul Hurley inquired if any mechanisms were built-in for growth due to the Port. Mr. Hortenstine stated that the Port is self-sustaining on the reuse issue. Mr. John Pekar pointed out that the stormwater study gave consideration to infuse that program into the City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 3 reuse sytstem. The City of Cocoa is re-circulating stormwater through a plant however the City of Oviedo is using a chemical treatment process. CONSENT AGENDA: 1. City Council Regular Meeting Minutes of February 18, 2003. 2. Resolution No. 2003-08; Appointing an Alternate Member to the Business and Cultural Development Board. (Bill Leach). 3. Proclamation for Irish-American Heritage Month. Mayor Randels asked if City Council member, staff or interested party requested to remove an item from the Consent Agenda for discussion. There was no request to remove an item for discussion. A motion was made by Mayor Pro Tem Petsos and seconded by Mr. Morgan to Approve Consent Agenda Items No. 1, 2 and 3. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. CONSIDERATIONS: 4. Design Proposal from Stottler Stagg &Associates for the North Ridgewood Avenue Stormwater Detention Basin in the Amount of 13,200. Mayor Randels expressed that this project would proceed as a pilot program. Mr. Pekar explained that on the road there are catch basins however he suggested a dry, recessed catch basin. This would prevent saltwater intrusion of the dune and would reduce down stream discharges. Mayor Randels stated for the audience that this project is proposed for the east end of Ridgewood Avenue. Mr. Pekar replied to Mr. Treverton that using Public Works staff might reduce cost however no exact cost analysis was considered at this time. Mr. Treverton introduced the feasibility of a design build plan into discussion. Mr. Nicholas suggested using the rest of the easement in the Harbor Heights area for stormwater drainage as well. Mr. Hoog inquired about setting a lump sum price in this cost with a limitation not to exceed a set amount. The City Engineer will propose a design build project. 5. Renewal of the Landscaping and Mowing Service Agreement with Nick's Landscaping. Mr. Nick Stipanovich requested to increase the company's pricing due to additional mowing to accommodate Manatee Sanctuary Park, maintenance on additional trees and the growing season. Mr. Hoog asked about bagging and not blowing grass into the storm City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 4 drains. Mr. Stipanovich responded that his staff has been instructed to blow the grass back toward the property and not into the storm drains. This is the fourth annual renewal of the contract. A motion was made by Mr. Morgan and seconded by Mr. Hoog to Approve the Renewal of the Landscaping and Mowing Service Agreement with Nick's Landscaping in the Amount of$102,940.44. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. 6. Proposal from J & S Curb/ Concrete for SR A1A Sidewalk and Drainage Improvements. Mr. Gardulski stated that J & S Curb was quoted considerably lower in light of the blanket purchase option. Mayor Pro Tem Petsos expressed concern with acquiring a contractor and then dispensing the bid to go out for quote. He requested to see the City use the bid process in light of an upcoming project_ Mayor Pro Tem Petsos also inquired about the $19,200 cost for drainage improvements. Mr. Gardulski explained that sidewalk construction was restricting the flow of drainage and pipe is need under the sidewalks. The Florida Department of Transportation requires drainage improvements for the permitting process. A motion was made by Mr. Morgan and seconded by Mr. Treverton to Approve the Proposal to J & S Curb/Concrete for SR A1A Sidewalk and Drainage Improvements in the Amount of$32,098. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. 7. Development Agreement with the Seaport Oceanfront Condominium Association, Inc., for a Perpetual Public Beach Access Easement. Mayor Randels inquired why the easement would be done contingent until the dedication of public access. He also pointed out that the landscaping requires a large amount of work on the City's part. Ms. Bea McNeely, Planning and Zoning Board Chair, stated that the City could not take a dedicated road and make a connection to a destination that does not belong to the City. Ms. Shannon Roberts expressed concern on behalf of Solana residents with the congestion due to vehicular as well as pedestrian traffic. She asked if public access is needed between Solana and Shorewood? Mr. Treverton related the resistance from the developers to provide any public beach access in that area and related where beach access was lacking. Attorney Garganese explained that the City would accept the site plan review and take possession of the easement and Item 7.0 would authorize the City to provide a crossover. Mr. Tom Garboski states that Shorewood owns the right-of- way however Mayor Randels clarified Towne Realty owns the property. Mr. Bill Craig expressed that he had no problem with the easement however his concern is with security in that there were no requirements in the agreement for a fence. Attorney Garganese City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 5 stated that an amendment could be made to the development agreement. Mr. Pat Salamone agreed that the developer would install the requested fence. Discussion followed on how the residents in the area would acquire access to the beach. Attorney Garganese stated that the developer can only give what is his however there is an additional part to consider regarding the Towne Realty portion to acquire beach access. Ms. Roberts stated that the residents in the area should be notified of continued discussion since the effects are significant to that community. Mr. Salamone stated that the Planning and Zoning Board has tied all three conditions to the agreement and no further construction can proceed without the conditions. Mr. Craig requested that the City Attorney draft the agreement with the proposed chain link fence consistent in height with the existing fence. Mayor Pro Tem Petsos requested the minutes from the previous meeting when .Jim Boris made a commitment for beach access. Mayor Randels encouraged Ms. Roberts to attend the Planning and Zoning Board meetings for any further discussion. The Development Agreement amendments are: 1) City will take the easement upon effective date of the development agreement, and 2) the developer will construct a 6-foot chain link security fence equal to the north-side height within 60-days. A motion was made by Mr. Treverton and seconded by Mayor Pro Tem Petsos to Approve the Development Agreement with the Seaport Oceanfront Condominium Association, Inc. for a Perpetual Public Beach Access Easement as Amended. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. ORDINANCES: Second Public Hearing: 8. Motion to Adopt: Ordinance No. 02-2003; Amending Code Sections 110-334 & 110,383; Adopting a New Section 110-556; Providing for Supplementary Regulations for Vehicle Rental Facilities within the C-1 and C-2 Zoning Districts. Mayor Randels read Ordinance No. 02-2003 by title. AN ORDINANCE OF THE CITY OF CAPE CANAVERAL, FLORIDA, AMENDING CODE SECTIONS 110-334 & 110-383; ADOPTING A NEW SECTION 110.556; PROVIDING FOR SUPPLEMENTARY REGULATIONS FOR VEHICLE RENTAL FACILITIES WITHIN THE C-1 & C-2 ZONING DISTRICTS; PROVIDING FOR THE REPEAL OF PRIOR CONFLICTING ORDINANCES AND RESOLUTIONS; PROVIDING FOR INCORPORATION INTO THE CODE; PROVIDING FOR SEVERABILITY;AND PROVIDING FOR AN EFFECTIVE DATE. Council removed this item from the table for discussion. Mr. Keith Duncan, of Hertz Agencies, asked if the existing agencies would be grand-fathered in. Attorney Garganese clarified that: 1)this ordinance does not affect any conditions already applied through previous special exceptions, and 2) the intent of the ordinance would apply to the new establishments. Attorney Garganese recommended language that clearly states, "these conditions apply to any special exceptions granted after the effective date of this City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 6 ordinance." Mr. Hoog inquired about Section 556, Paragraph 8 regarding the 30-day time limit. Attorney Garganese stated the need to eliminate Paragraph 8 since the time limit is addressed under the 72-hour ordinance. Mayor Randels noted that the 72-hour time limit is in Chapter 34-181. Mr. Boucher stated that Paragraph 8 would be removed and the ordinance re-numbered. A motion was made by Mr. Hoog and seconded by Mayor Pro Tem Petsos to Adopt Ordinance No. 02-2003 amended as follows: "The requirements apply to any special exception approved after March 4, 2003 and strike sub-paragraph 8 and renumber accordingly. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. 9. Motion to Adopt: Ordinance No. 07-2003; Amending Sections 22-37, 22-43 and 224A of the City of Cape Canaveral Code Relating to the Community Appearance Board. Mayor Randels read Ordinance No. 07-2003 by title. AN ORDINANCE OF THE CITY OF CAPE CANAVERAL, FLORIDA, AMENDING SECTIONS 22-37, 22-43 AND 22-44 OF THE CAPE CANAVERAL CODE RELATING TO THE COMMUNITY APPEARANCE BOARD; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, INCORPORATION IN TO THE CODE, SEVERABILITY AND EFFECTIVE DATE. There was no public comment. A motion was made by Mayor Pro Tem Petsos and seconded by Mr. Morgan to Adopt Ordinance No. 07-2003. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. ORDINANCES: First Public Hearing: 10. Motion to Adopt: Ordinance No. 08-2003; Providing for the Advance of Funds to Construct Required Sidewalks and Impose a Sidewalk Impact Fee, for second reading. Mayor Randels read Ordinance No. 08-2003 by title. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, RELATING TO SIDEWALK CONSTRUCTION; AMENDING SECTION 110-475 OF THE CAPE CANAVERAL CODE TO INCLUDE PROVISIONS FOR THE CITY TO ADVANCE FUNDS AND CONSTURCT REQUIRED SIDEWALKS WITHIN THE CITY AND THEN IMPOSE A SIDEWALK IMPACT FEE UPON NEW DEVELOPMENT ABUTTING THE SIDEWALK; PROVIDING FOR A METHOD FOR CALCULATING THE IMPACT FEE AND APPORTIONING THE COST OF SIDEWALK CONSTRUCTION TO PROPERTY City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 7 OWNERS RECEIVING THE BENEFIT OF THE SIDEWALK; PROVIDING FOR SEVERABILITY; REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, INCORPORATION INTO THE CODE AND AN EFFECTIVE DATE. The Planning and Zoning Board forwarded the item back to the City Council with the position that imposing fees was not the Board's responsibility. Garganese replied to Mayor Pro Tem Petsos that for a minimal cost the City would pay the recording fee for the notice referred to in Paragraph 3. Mr. Tom Garboski asked if the City would maintain the sidewalk and make the future owner aware of the sidewalk's condition when payment is due. Mr. Gardulski stated that if the sidewalk is damaged during construction the contractor is responsible for repairs. Mayor Randels said that the City repairs sidewalks within the right of way. Mr. Todd Money, Acting Building Official, asked if there were a mechanism to indicate when these fees are required. Mr. Boucher responded that a collaborative effort among Public Works, Finance Office and the Building Department would develop a pian for fees. Attorney Garganese stated that there is a recorded document. A plan would be presented at the next scheduled City Council meeting. A motion was made by Mayor Pro Tem Petsos and seconded by Mr. Treverton to Adopt Ordinance No. 08-2003 for second reading. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. DISCUSSION: 11. Florida Department of Environmental Protection, Stormwater Permit Application. Mr. Boucher announced that the State office changed the deadline between May 1 and June 1, 2003. Mr. Bandish performed extensive research to prepare the correct forms. Mr. Boucher reported that the application is ready for submittal and would be mailed by May 2, 2003. REPORTS: 1. City Manager • Mr. Boucher reported that a local government liasion is needed for the St. John's Water Management District. Mr. Morgan accepted the position. • Mr. Boucher reported that Brevard County postponed the Water District Ordinance. + Mr. Boucher reported that he met with representatives from the City of Cocoa Beach on the Cocoa Beach reuse issue and stated their findings that the drought protocol is effective and also that they would like to extend the agreement for two years. • Mr. Boucher reported on the vested rights issue regarding Ms. Collette Cannon and Sand-in-the-Shoes, City of Cape Canaveral, Florida City Council Regular Meeting March 4, 2003 Page 8 o City Attorney provided a synopsis: The Planning and Zoning Board had considered this issue—Competent substantial evidence was provided that the site plan was vested. A previous Council approved a final plat and the site plan approved was in compliance with the plat. Development is a two- phase project. The Planning and Zoning Board has denied the vested right claim. Ms. Cannon's attorney is preparing a Court appeal to the Planning and Zoning Board's decision. The fire truck turning safety has been removed from consideration. Attorney Garganese advised waiting until the appeal is filed to discuss potential litigation. Attorney Garganese stated that the Council could request that the Planning and Zoning Board reconsider their position. A motion was made by Mr. Morgan and seconded by Mr. Treverton to request that the Planning and Zoning Board reconsider their position on the site plan review for Sand-in the-Shoes. The motion carried 5-0 with voting as follows: Mr. Hoog, For; Mr. Morgan, For; Mayor Pro Tem Petsos, For, Mayor Randels, For and Mr. Treverton, For. There being no further business, the Chair adjourned the meeting at 10:00 P.M. Rocky Randels, MAYOR Susan Stills, CITY CLERK E Meeting Type: Regular ' dS 5 Meeting Date 03-18-03 i AGENDA Heading Consent CffY OFw item 2 CAPE CANAVERAL No. AGENDA REPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: CONSENT: RESOLUTION NO. 2003-09, APPOINTING AN ALTERNATE MEMBER TO THE PLANNING&ZONING BOARD DEPT./DIVISION: LEGISLATIVE Requested Action: City Council consider the adoption of Resolution No. 2003-09 appointing Mr. Dennis Jenkins as an alternate member of the Planning&Zoning Board. Summary Explanation& Background: The Planning & Zoning Board interviewed Mr. Jenkins at their 02/'12/03 meeting and recommended his appointment to City Council. Term will expire 07/15/2005. Exhibits Attached: Resolution No. 2003-09;P&Z Cbairperson's memo 7cityra 's Office Department LEGISLATIVE c im\myd current n\council\meed 12003\03-18-0312003-09.doc RESOLUTION NO. 2003-09 A RESOLUTION OF THE CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA; APPOINTING AN ALTERNATE MEMBER TO THE PLANNING AND ZONING BOARD OF THE CITY OF CAPE CANAVERAL, FLORIDA; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Cape Canaveral, Florida, has by City Code Section 58-26 has created a Board known as the Planning and Zoning} Board; and WHEREAS, it is now incumbent upon the City Council of the City of Cape Canaveral to appoint one (1) Alternate Member to said Board. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cape Canaveral, Florida, as follows: SECTION 1. David R. Jenkins is hereby appointed as an Alternate Member of the Planning and Zoning Board of the City of Cape Canaveral, Florida, with a term to expire on September 15 2005. SECTION 2. This Resolution shall take effect immediately upon its adoption. ADOPTED BY the City Council of the City of Cape Canaveral, Florida, this 18tH day of March,2003. Rocky Randels, MAYOR ATTEST: FOR AGAINST Bob Hoog Susan Stills, CITY CLERK Jim Morgan Buzz Petsos Rocky Randels APPROVED AS TO FORM: Richard Treverton Anthony Garganese, CITY ATTORNEY rF.:. s� 3 Z Y4� City of Cape Canaveral utv os can cuuvwi 4 k ; Date: February 14, 2003 To: Bennett Boucher, City Manager Susan Stills, City Clerk From: Bea McNeely, Chairperson, Planning& Zoning Board Re: Interview of Prospective Board Member Dennis R. Jenkins ------------------------------------------------------------------------------------------------------------ At the Planning & Zoning Board meeting held on February 12, 2003 the Board members interviewed Mr. Jenkins and recommended that the City Council appoint Mr. Jenkins as an alternate member. This will allow him to gain experience and knowledge of the city zoning regulations, comprehensive plan; history of existing, new, future and ongoing projects (i.e. site plans, plats, special exceptions); and planning issues. Thank-you for your consideration. 105 Polk Avenue • Post Office Box 326 • Cape Canaveral, FL 32920-0326 Telephone: (321) 868-1220 • SUNCOM: 982-1220 • FAY- (321) 868-1248 www.myflorida.com/cape • e-mail: ccapecanaveral0cfl.mcom FROM : Specialty Press FAX NO. : 321-868-2592 Jan. 08 2003 06:39PM P2 r unrr,IM Jw�?'Nlli C.J.n,ya-v ep�p.1 City Council 1 Ciry HaFI 1 Home Pane City of Capc Canivernl City Board:^.pplicafion Please fiWitz Lind fax ro Our(llji a az(3?))86i-121,Y: Appliamr Name:_ fknnis R Jenkins Roma,address: 423 Pierce Avenue, Unit 403 Cape Cam vera4 FL 32920 Basin-m: USA te: Office Addz%"— Briefd)=xipuon of E&=dm 9nd Expaicnec. PzTiD Le� aw — .�✓• Sit h Art you S tegistaad voteY!Yes• ')( No: ITatoe you beta a resident of ilea Gty for 12 tnombs or long&?Yes: X Na: Do you currcnrly hold a public off,cc?Yw. NO: X Art:you pec emly employed by the Qty?Yes: No: )K At the present time,do you nerve Cat a City 1B4atd?Yee: No: At+ht prxseut time do my of die following relwives Pf your save on ilia City Counci I.falter,modter,son,daughter,brotber,sister,uncle,sunt,first cousin,rttpbew,niece,htteltand, wife.ganeparcoL MTmdchild.father-in-law.traothcr itt-lino,son-i t-laser,d=&LO-in-61m,brotherrndaw,ficin-Nw,oepfuher,aur—other,oepson,stapdattP-W"etepbmther, stepsists half brother or half sister? Yrs: No: A, At the prewtt time,do any of the IbIlowing retarives ofyoum serve on any other City board,commininm or quteial district speuse,parent,child,V=dparentor sibling of rite ttrltole or halfblcod? Y Ycs i�Ia `` Plewe specify en wbia It Ciry Barred you are inrarened in serving;(Indicate Preference,ISL2nd.3rd,ole.) �vtilitatira �aatl of Adj�emcnt: sµs,aus h.Gulwrar De•elagattet Gwk t:.r,«c: • C-7 arr--—' _ LnnrauetKQ bora of na)asm,mt d Arr— G�'ry _ �I'leoninE!£lx+t,+stf• RvYaaitioa *Mem b0 s of Ame Bom&are required ro con pleit Financial Diadonor Form upon app obuntent to said Board wvl prior w July 1 Srh of enrh year fe,llowing zAa initial app oLu nsxt while dill ed mem&er of Said Rliard Phase list what you feel arc your quali(itgaiona b ane as s%vembar on one oC the City,*Bo*rrL: _1&& C.r P_ %x Y" ,I2S . tt Gf}L SOLUj) i4no W Row wt—o.? ALiLoct1mg, Wk%rd yin cedsidar serving do another Cny Dowd usher%hats the oad:)You have selcacd m the&ant of obis form? Yes: X No:`. AppGcaat's Vzz, mre: Dat%. wnprNew e,a,e.n.wue.nweo.ry.�.,n�i Meeting Type: Regular Meeting Date 03-18-03 Z AGENDA Heading Considerations CITY OF CAPE CANAVERAL Item 3 No. AGENDA REPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: CONSIDERATION: APPROVAL OF THE ANNUAL AUDIT FOR THE YEAR ENDING 09-30-02 DEPT./DIVISION: ADMINISTRATION/MNANCE Requested Action: City Council consider approval of the annual audit for the year ending 09-30-02 as presented by the audit finn of Bray,Beck&Koetter. Summary Explanation& Background: The annual independent audit is required by State law and the city has a clean audit report with no material findings. I want to thank the city treasurer and her staff for another great year in managing our city's finances. I recommend approval. Exhibits Attached: Audit report was distributed on 03-11-03 City Man Mee Department ADMINISTRATIONNINANCE \meeting\2 003\03-18-03\audit.doc COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CAPE CANAVERAL, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 PREPARED BY THE FINANCE DEPARTMENT INTRODUCTORY SECTION - Table of Contents - City Treasurer's Letter of Transmittal Organization Chart - List of Principal Officials CITY OF CAPE CANAVERAL,FLORIDA Comprehensive Annual Financial Report Table of Contents Year Ended September 30,2002 Page INTRODUCTORY SECTION Table of Contents....................... City Treasurer's Letter of Transmittal....................... .......... Certificateof Achievement .....----......------.........---...........................-- ........,..................................... ..................xi Organizational Chart......I.-.......I............. List of Principal Officials.............................................................._........, ......................................................... .....xv FINANCIAL SECTION IndependentAuditor's Report..............................................................................................................................1 Combined Financial Statements-Overview: Combined Balance Sheet-All Fund Types and Account Groups................................--...............................4-7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All Governmental Fund Types and Expendable Trust Funds...................................................8-9 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-All Governmental Fund Types and ExpendableTrust Funds.........................................................................................................................10-13 Statement of Revenues, Expenses and Changes in Retained Earnings-Proprietary Fund..................................—...................................................................................14 Statement of Changes in Plan Net Assets -Pension Trust Fund.......................................................................15 Statement of Cash Flows - Proprietary Fund........... ............... ....--................................. ................... ....16-17 Notes to Financial Statements......................................................................................................................19-37 Combining and Individual Fund Statements/Schedules Special Revenue Funds: CombiningBalance Sheet......................................................................................................................40-41 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances-Budget and ActuaI..............................................................................................42-45 Trust Funds: Combining Balance Sheet-All Trust Funds...............................................................................................43 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-Expendable Trust Funds........................................................................................49 General Fixed Assets Account Group: Schedule of General Fixed Assets-By Source....................--..........................-......--............................53 Schedule of Changes in General Fixed Assets -By Source...................................................................54-55 Schedule of Changes in General Fixed Assets-By Function and Activity.................................................56 Schedule of General Fixed Assets-By Function and Activity...................................................................57 i CITY OF CAPE CANAVERAL,FLORIDA Comprehensive Annual Financial Report Table of Contents Year Ended September 30,2002 Page STATISTICAL SECTION Table General Fund Expenditures and Other Financing Uses by Function-Last Ten Fiscal Years 1 60 General Fund Revenues and Other Financing Sources - Last Ten Fiscal Years 2 61 Property Tax Levies and Collections -Last Ten Fiscal Years 3 62 Assessed and Estimated Actual Value of Taxable Property-Last Ten Fiscal Years 4 63 Property Tax Rates - Direct and Overlapping Governments-Last Ten Fiscal Years 5 64 Principal Taxpayers-September 30,2002 6 65 _ Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita-Last Ten Fiscal Years 7 66 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures -Last Ten Fiscal Years 8 67 , Computation of Direct and Overlapping Bonded Debt-General Obligation Bonds -September 30, 2002 9 68 Revenue Bond Coverage- Sewer System-Last Ten Fiscal Years 10 69 Demographic Statistics -Last Ten Fiscal Years 11 70 Construction,Property Value and Bank Deposits-Last Ten Fiscal Years 12 71 Miscellaneous Statistics-September 30,2002 13 72 Miscellaneous Statistics-Salaries and Bond Coverage of Principal Officials- September 30, 2002 14 73 COMPLIANCE SECTION Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards......................................................................................................................... ..75 Independent Auditor's Management Letter Comments ....................................................................................77-80 Auditee's Response.......................................................................................................................... .............. ...81 ii l is h4.: {�4XCE q hs Ci f Cape Canaveral r � oap .44 CITY OF .. CAPE CANAVERAL January 29, 2003 The Honorable Mayor,Members of City Council and City Manager City of Cape Canaveral 105 Polk Avenue Cape Canaveral,FL 32920 Dear Mayor,Council Members and City Manager: I am pleased to present the Comprehensive Annual Financial Report(CAFR)of the City of Cape Canaveral,Florida, for the fiscal year ended September 30, 2001 The CAFR is a valuable analytical tool that illustrates the City's financial position to a variety of interested parties; i.e., citizens, legislative bodies, investors, and creditors. As an addendum to the financial statements, this report provides statistical, historical and demographic data indicative of the City's economic health, growth, population and financial position for the most recent ten year period. Responsibility for the accuracy of the date presented and the completeness and fairness of the presentation (including all disclosures),rests with the management of the City of Cape Canaveral. OUTLINE OF CONTENTS The CAFR is segregated into four independent sections: Introductory Section: This section outlines the scope and intent of this document, defines the reporting entity, overviews economic condition and future outlook, and outlines major initiatives undertaken and proposed by the F City's governing and advisory boards. — Financial Section: This section includes the general purpose financial statements accompanied by the independent auditor's report and the combining financial statements and schedules. Statistical Section: This section illustrates historical, operational, and fiscal activity experienced by the City over the past ten years. Compliance Section: This section contains the independent auditor's report on compliance and internal control structure related matters based on a financial statement audit in accordance with Government Auditing Standards. The enclosed data is accurate in all material respects and is presented in a manner designed to fairly set for the financial position(and the results of operations of the various funds and account groups) of the City in accordance " with the authoritative promulgations by the Governmental Accounting Standards Board. 105 Polk Avenue • Post Office Box 326 • Cape Canaveral, FL 32920-0326 Telephone (321) 868-1220 • FAX(321) 799-3170 • www.fcn.state.fl.uslcape iii e-mail: ccapecanaveral@cfl.rr.com The Honorable Mayor, et al _ Page Two THE REPORTING ENTITY The City of Cape Canaveral is a small beachside community located in Brevard County, nestled between the Atlantic Ocean and the Banana River on the East Coast of Central Florida. A residential community spanning 1.9 square miles, the community populous remains relatively constant at 9,161 for year round residents. Our seasonal population increases this number significantly. Since incorporation in 1963, Cape Canaveral is administered via an electoral form of government. The chief legislative body is comprised of the mayor, mayor pro tem and three council members. The City maintains a centralized Council/Manager form of government,representing a downward chain of command and vertical conununication flow. 1 The City, in its entirety,provides a broad realm of services for its citizens including: Zoning and code enforcement; growth management, community development and architectural review; road maintenance; landscaping and beach maintenance; sewer and reuse water service to City residents, businesses; a public library facility; recreation and leisure facilities including passive and xeriscape parks and a city ballfield; and general administrative support. A ^ wide range of public services are provided on a contract basis such as law enforcement, fire protection, refuse and yard waste collection,community recycling programs,legal and engineering services. The mission statement of the City of Cape Canaveral is"Welcome to the City of Cape Canaveral,promoting a safe, clean, residential beachside community with tree-lined streets". FINANCIAL INFORMATION INTERNAL AND BUDGETARY CONTROL In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. The City has internal controls in place that are designed to provide reasonable, but not absolute, assurances regarding the following: (1) assets of the City are protected against loss from unauthorized use or disposition; and (2) all financial transactions are executed in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived,and the evaluation of costs and benefits requires estimates and judgments by management. The annual zero based budgeting process is a team effort whereby all departments submit their anticipated operating expenses for future year(s). Budgetary control is maintained at the departmental level via monthly financial statements which compare actual expenditures with budgeted appropriations. The governing body is kept abreast of the City's current financial position through monthly financial statements and quarterly presentations by the City Treasurer. GENERAL GOVERNMENTAL FUNCTIONS The General Fund encompasses the majority of overall operations for the City. Revenues(exclusive of transfers)for general government functions recorded in the General Fund in 2002 were$4,870,467, an increase of approximately 11% from the prior year's revenues of $4,388,670. The majority of this increase is due to the extensive development being experienced within the City. This development has affected not only the revenue derived from ^ permits issued,but also increased impact fees and the tax base, The taxing authority for the City of Cape Canaveral is unique within the State of Florida. While most municipalities ^ maintain a General Government Ad valorem tax to be used as needed, Cape Canaveral's Charter imposes _ restrictions as to specific activity and amount levied. The General Fund maintains two Ad valorem taxes, intended to offset contract service expenses which are contained and appropriated through the General Fund. These Ad — valorem taxes were voter approved in 1990. The Fire and Police Ad Valorem rates are currently assessed at.5000 and 1.000 mills respectively. iv The Honorable Mayor, et al Page Three A comparison of revenues for General Fund operations follows: Increase Source 2002 2001 (Decrease) Taxes $ 2,391,813 $ 2,065,382 $ 326,431 Licenses and Permits 559,631 308,429 251,202 Integovernmental 786,31.7 831,068 (44,751) Charges for Services 946,714 859,790 86,924 Fines and Forfeitures 126,561 138,371 (11,810) Interest and miscellaneous 59,431 185,630 (126,199) Total $ 4,870,467 $ 4,388,670 $ 481,797 Expenditures for 2002 were$4,802,731 compared to$4,205,681 in 2001 -an increase of$597,050 or approximately 14%. A comparison of expenditures for General Fund operations by major function follows: Increase Function 2002 2001 (Decrease) General Government $ 510,457 $ 407,517 $ 102,940 Public Safety 2,666,823 2,246,255 420,568 Transportation 482,814 467,308 15,506 Physical Environment 844,965 685,710 159,255 Culture/Recreation 260,270 398,891 (138,621) Debt Service 37,402 - 37,402 Total $ 4,802,731 $ 4,205,681 $ 597,050 SPECIAL REVENUE FUNDS The City manages special revenue funds supported by ad valorem taxes. Included in such are: 1. Beautification taxes which were initiated in 1987 through referendum, not to exceed .5000 mills to implement and maintain various aesthetic improvements and projects. Ad Valorem tax rate for 2002 is .4504. 2. The library fund initially established in 1985 through referendum provides Ad Valorem taxes not to exceed .5000 mills to construct a City-owned, County-operated library facility. The millage for 2002 is .0500 mills, used to support the exterior maintenance of this facility and provide property/liability insurance. v The Honorable Mayor, et al Page Four SEWER ENTERPRISE FUND The Sewer Enterprise fund is a proprietary fund allowing for operations that are financed and supported entirely through user fees. This fund can be compared to a private business enterprise as net income (or loss) is determined on an accrual basis. Sewer operating revenue increased$96,909 over the prior year. This increase is primarily due to the 3%rate increase and additional customers from new development. Comparative data for 2002 and 2001 are presented below: Increase 2002 2001 (Decrease) Operating Revenues $ 2,030,318 $ 1,933,409 $ 96,909 Operating Expenses 2,143,170 2,027,004 116,166 Operating Income(Loss) (112,852) (93,595) (19,257) Non Operating Revenues(Expenses),Net 367,674 390,364 (22,690) Operating Transfers Out (100,000) (75,000) (25,000) Net Income $ 154,822 $ 221,769 $ (66,947) CAPITAL PROJECT FUNDS y The Capital Projects Fund was made inactive with this fiscal year in an attempt to provide a simplified budget and to prepare for the implementation of GASB 34. All capital expenditures are now recorded in their respective departmental budgets. TRUST FUND A Special Law Enforcement Rust Fund is maintained on behalf of the Brevard County Sheriff's Department. This find is supplemented by contraband income and proceeds are used to fund the City's portion of the school resource officer at the local high school in accordance with Florida Statutes. DEBT ADMINISTRATION As of September 30,2002, debt service to maturity(including interest)was as follows: The City has outstanding long-term debt from a Master Lease Agreement used to purchase an Aerial Ladder Fire engine in partnership with the Canaveral Port Authority. General Obligation.......................................................................................................$ 224,412 The City has outstanding long-term debt from its State Revolving Loan Funds. SewerSystem.............................................................................................................$ 8,912,663 vi t The Honorable Mayor, et al Page Five CASH MANAGEMENT The City maintains a cash balance to adequately satisfy short-term operational liabilities. Funds deemed in excess of current debt requirements are transferred to one of a number of investment instruments maintained to provide a maximization of interest income. As of September 30, 2002, these included the Florida State Board of Administration (SBA) Investment Pool. Funds, Money Market funds meld at Admiralty Banks and Intermediate High Quality Bonds held with the Florida League of Cities Investment Division. RISK MANAGEMENT Risk management is more than just insurance; insurance is part of a safety net in the City's risk management program. Some elements of the City risk management program are manifested through: ■ General Liability,property damage and workers' compensation coverage and claims management from the Florida League of Cities. ■ Volunteer protection,a valuable human resource • Safety, employee assistance and drug free workplace program for all employees • Human resource training—i-e. sexual harassment and cultural diversity ■ Screening staff and volunteers for background and reference checking. MAJOR INITIATIVES The City Council and City Staff continued to implement the goals and objectives that are part of our Community Visioning process. t New construction continued to increase at an all time high with total valuation of$103 million. The Building Department worked closely with the Fire Department,to insure compliance with Iocal codes. In an effort to be more Service Friendly, City Hall experienced a major renovation, opening up the lobby to create a positive experience for our citizens. Both the City Clerk's office and the Treasurer's office now open onto the lobby with service desks. The Building Dept. also experienced reorganization in their office space,utilizing the available space more efficiently. The Parks and Recreation Department continues to increase its service to the community with special events including a Halloween Street Party, two racquetball tournaments, a Senior Health fair, Holiday crafts classes, summer youth activities, Patriots Day Parade, an Easter Egg Hunt and many more activities, designed to teach, entertain and provide a recreational diversion for our citizens. Grant funds made available by the State of Florida are being used to renovate some of the facilities at City Park. The addition of a picnic/restroom pavilion, an educational kiosk and a walking/jogging trail, utilizing grant funds, awarded by the State has been shifted to the coming year. Construction of new sidewalks continued, as part of our Walkable Community program. Trees were planted w Citywide and planning for the landscaping of SR A l A remains an ongoing effort,with completion expected in 2003. Our Community Policing program was involved with many community events and crime prevention programs during the year. The City received grants from the St. John's River Water Management District for a baffle box on International Drive and to implement a Storm Water Utility. Projects are slated to be completed in 2003. vii The Honorable Mayor, et al Page Six ECONOMIC OVERVIEW AND OUTLOOK The City closed fiscal year 2001102 in a positive financial position. In the General Fund, revenues and other financing sources exceeded expenditures and other financing uses by $500,322. This excess of funds was due primarily to the implementation of the Communications Services Tax and the unprecedented construction activity. The Sewer Enterprise Fund closed with a net income of$154,822. This is due to increased building activity and the related impact fees. Growth was primarily residential for 2001102, with predictions for more than moderate growth continuing in both the residential and commercial sectors for fiscal year 2002/03. Through vision, dedication and teamwork, our elected officials, management and the citizenry of Cape Canaveral can work together to achieve increased economic activity,productivity and an aesthetically enhanced and improved community to be enjoyed by all. INDEPENDENT AUDIT Pursuant to Section l 1.45, Florida Statutes, an audit of the financial statements has been completed by the City's independent certified public accountants, Bray, Beck & Koetter, CPA's, P.A. Their opinion is included in the Financial Section of this report. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cape Canaveral, Florida for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2001. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of a state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report(CAFR), whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable Iegal requirements. A Certificate of Achievement is valid for a period of one (1) year only. The City of Cape Canaveral, Florida had received a Certificate of Achievement for the last 6 years. We believe our current report continues to conform to the Certificate of Achievement program requirements,and we are submitting it to GFOA. viii The Honorable Mayor, et a] Page Seven ACKNOWLEDGMENTS The culmination of this superb document is attributable to numerous facets of this organization. Special recognition is credited to the Finance Department staff for their dedication to accurate and thorough financial reporting and accountability. My appreciation is extended to the City Manager and the governing body for their dedication to proactive fiscal policies. Thanks are also extended to the City's independent auditing firm of Bray, Beck&Koetter, CPA's, P.A., for their assistance with compiling the City's Comprehensive Annual Financial Report. This document is a fine example of dedication and teamwork throughout all facets of this organization. For your review, 1 am pleased to present the Comprehensive Annual Financial Report of the City of Cape Canaveral for the year ended September 30,2002. Respectfully submitted, Andrea Bowers City Treasurer ix Certificate of Achievement for Excellence in Financial Reporting Presented to City of Cape Canaveral, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. SCE OFpjC 1N1E° ti�lISTATES y AND ;o CANADA President s C°AP°RATION `7 SF moi. SOS CNIt0.GG �p0 Executive Director Xi 0 w � c O O Y 0 y Qt O ❑ qj Qj , a�. a T a N � CL ° � 0 0 U C3 Z O O. °� w. c, J N w az o'. a O.S y O _ Eta ,E R. CL d .,._ C N J cs °tf o c a �' L _ CL �. O :d �, v W R, U d 111 y � R. �. CL. LL 0 �. L � N V O " LCn O o C U m ii U c O a, E ;n c f9 N N O (� O t � v N X111 CITY OF CAPE CANAVERAL,FLORIDA LIST OF PRINCIPAL OFFICIALS September 30,2002 ELECTED OFFICIALS Mayor Rocky Randels Mayor Pro Tem Arthur Pestos Council Member Richard Treverton Council Member Larry Weber Council Member Jim Morgan APPOINTED OFFICIALS City Manager Bennett Boucher City Clerk Susan Stills City Treasurer Andrea Bowers City Attorney—through May 2002 Kohn Bennett City Attorney—as of.Tune 2002 Anthony Garganese Public Works Director Edward Gardulski Police Chief Major George McGee Fire Chief Chief David Sargeant Recreation Director Nancy Hanson Purchasing Agent Kim McIntire Building Official Morris Reid xv FINANCIAL SECTION - Independent Auditor's Report - General Purpose Financial Statements - Combining and Individual Fund Statements and Schedules Bill Bray, Beck & Koetter CERTIFIED PUBLIC ACCOUNTANTS, P.A. 7351 Office Park Place, Suite A Melbourne, Florida 32940 _ (321) 751-6270 FAX(321) 751-1385 410 Indian River Avenue, Suite A Titusville, Florida 32782 (321)269-0732 FAX (321)264-0925 39 South Atlantic Avenue, Suite A Post Office Box 321057 Cocoa Beach, Florida 32932-1057 (321)783-8321 INDEPENDENT AUDITOR'S REPORT FAX(321)799-0925 The Honorable Mayor and City Council _ City of Cape Canaveral, Florida We have audited the accompanying general purpose financial statements of the City of Cape Canaveral, Florida, as _ of and for the year ended September 30, 2002, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Cape Canaveral, Florida management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards and the standards generally accepted in the United States of America applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An _ audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the _ financial position of the City of Cape Canaveral, Florida, as of September 30, 2002, and the results of its operations and the cash flow's of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2003 on our co sideration, of the City of Cape Canaveral, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this _ report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and supporting schedules listed in the table of contents is presented for purposes of additional analysis and are not a required part of the financial " statements of the City. Such information has been subjected to the auditing procedures applied in the audit of the _ general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. _ The accompanying statistical information listed with table references under the caption "Statistical Section" in the table of contents was not audited by us and, accordingly,we do not express an opinion on it. Melbourne, orida January 29, 2003 1 CITY OF CAPE CANAVERAL, FLORIDA General Purpose Financial Statements The General Purpose Financial Statements provide a summary of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that are in the following subsections. 3 CITY OF CAPE CANAVERAL, FLORIDA Combined Balance Sheet- All Fund Types and Account Groups September 30, 2002 (With Comparative Totals for 200 1) Governmental Fund Types Special Capital -- General Revenue Projects ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents $ 2,455,940 $ 477,090 $ 359,250 Accounts receivable,net of allowance for uncollectibles accounts 242,497 - - Unbiiled revenue 42,344 - - Due from other governments 36,984 286 Due from other funds 37,698 - Inventory 5,086 - - Prepayments 224,882 209 Restricted assets: Cash and cash equivalents - - - Investments - - Land - Buildings - - Improvements other than buildings - - Machinery and equipment - - - Construction in progress - - - Accumulated depreciation - - - Unamortized loan costs Other debits: Amount to be provided for retirement ^ of general long-term debt - - - Total assets and other debits $ 3,045,431 S 477,585 S 359,250 4 Proprietary Fiduciary Totals _Fund Type Fund Types Account Groups (Memorandum Only) General General Fixed Long-Term Entel2rise Trust Assets Debt 2002 200I $ 1,932,281 $ - $ - $ 5,224,561 $ 5,048,035 319,494 - - - 561,991 426,503 119,100 - - 161,444 161,444 - - - 37,270 219,436 - - - 37,698 55,779 - - - 5,086 5,166 34,606 - 259,697 49,419 r 1,423,124 2,195 - - 1,425,319 1,125,405 - 1,049,892 - - 1,049,892 3,033,795 351,084 - 2,494,562 - 2,845,646 2,845,646 954,444 - 1,121,415 - 2,075,859 2,053,136 18,758,548 - 4,226,156 - 22,984,704 22,300,678 565,991 - 2,245,553 - 2,811,544 2,613,150 1,500 - 81,754 - 83,254 27,158 (5,544,622) - - - (5,544,622) (4,945,647) 124,652 - - 124,652 133,943 - - - 226,794 226,794 33,133 $ 19,040,202 $ 1,052,087 $ 10,169,440 $ 226,794 $ 34,370,789 $ 33,186,178 Continued 5 CITY OF CAPE CANAVERAL, FLORIDA �- Combined Balance Sheet -All Fund Types and Account Groups-Continued ^ September 30, 2002 (With ComEarative Totals for 2001) _ Governmental Fund Types Special Capital _ LIABILITIES, EQUITY AND OTHER CREDITS Genera[ Revenue Projects ' Liabilities: Accounts payable and accrued liabilities $ 100,469 $ 16,33 t $ - ' Due to other funds _ - 37,698 Deferred revenue and deposits 183,684 - - Payable from restricted assets: Current portion of long-term debt(Note 7) - _ - Accrued interest payable - - - Deferred revenue and deposits _ - _ -- Long-term debt(Note 7) _ _ _ Accrued compensated absences 33,134 3,048 - Total liabilities 317,287 19,379 37,698 Equity and other credits: _ Investment in general fixed assets _ _ _ Contributed capital _ _ `- Retained earnings: y Reserved for: Debt service _ ' Capital expansion _ _ Unreserved _ Fund balances: Reserved for: Employees'retirement system _ _ Law enforcement education _ _ Inventory 5,086 Prepayments 224,882 Unreserved: Designated for subsequent years expenditures - _ _ Undesignated 2,498,176 458,206 321,552 Total retained earning&Tund balances 2,728,144 458,206 321,552 Total equity and other credits 2,728,144 458,206 321,552 ' Total liabilities,equity and other credits $ 3,045,431 S 477,585 $ 359,250 See accompanying notes to financial statements. 6 Proprietary Fiduciary Totals Fund Type Fund Types _ Account Groups (Memorandum Only) General General Fixed Long-Term Enterprise Trust Assets Debt 2002 2001 $ 310,338 $ - $ - $ - $ 427,138 $ 222,734 - - - - 37,698 55,779 - - - - 183,684 183,798 431,833 - - 28,039 459,872 418,948 65,767 - - - 65,767 73,198 1,110 - - - 1,110 1,110 6,804,961 - - 162,295 6,967,256 7,236,794 61,517 - - 36,460 134,159 123,341 t 7,675,526 - - 226,794 8,276,684 8,315,702 - - 10,169,440 - 10,169,440 9,694,186 397,670 - - - 397,670 397,670 126,993 - - 126,993 119,563 1,029,554 - - - 1,029,554 724,533 9,810,459 - - - 9,810,459 9,968,089 - 1,049,892 - - 1,049,892 1,051,876 2,195 - - 2,195 566 - - - - 5,086 5,166 - - - - 224,882 21,655 ' - - - 167,981 - - - - 3,277,934 2,719,191 10,967,006 1,052,087 - - 15,526,995 14,778,620 11,364,676 1,052,087 10,169,440 - 26,094,105 24,870,476 $ 19,040,202 $ 1,052,087 $ 10,169,440 $ 226,794 $ 34,370,789 $ 33,186,178 7 CITY OF CAPE CANAVERAL, FLORIDA Combined Statement of Revenues, Expenditures and Changes in Fund Balances- All Governmental Fund Types and Expendable Trust Funds Year Ended September 30,2002 (With Comparative Totals for 2001) _ Governmental Fund Types Special Capital General Revenue Projects Revenues: Taxes $ 2,391,813 $ 2I7,740 S - Licenses and permits 559,631 Intergovernmental 7$b,317 - Charges for services and impact fees 946,714 19,633 120,760 Fines and forfeitures 126,561 9,701 - Interest 50,573 10,615 7,026 Miscellaneous 8,858 3,327 - Total revenues 4,870,467 261,016 127,786 Expenditures: Current: General government 451,032 - _ Public safety 2,172,609 10,000 - Transportation 460,119 185,315 Physical environment 723,030 - _ Culture and recreation 223,498 19,720 - Capital outlay 735,041 26,015 21,532 Debt service: Principal 29,618 - _ Interest 7,784 Total expenditures 4,802,731 241,050 21,532 Excess (deficiency) of revenues over (under)expenditures 67,736 19,966 106,254 Other financing sources (uses): �. Proceeds from capital lease 219,953 - _ Proceeds from sale of capital asset 80,000 Operating transfers in 132,633 Operating transfers out _ p (19,633) (13,000) Total other financing sources(uses) 432,586 (19,633) (13,000) Excess (deficiency)of revenues and other financing sources over(under)expenditures and other financing uses 500,322 333 93,254 Fund balances,beginning of year 2,227,822 457,873 228,298 Fund balances, end of year $ 2,728,144 S 458,206 $ 321,552 See accompanying notes to financial statements. _ 8 Fiduciary Totals Fund Type (Memorandum Only) Expendable Trust 2002 2001 $ $ 2,609,553 $ 2,262,289 - 559,631 308,429 - 786,317 831,068 - I,087,107 993,260 - 136,262 147,891 - 68,214 138,063 2,229 14,414 385,158 2,229 5,261,498 5,066,158 - 451,032 407,517 600 2,183,209 2,069,023 - 645,434 598,246 - 723,030 686,845 - 243,218 204,380 - 782,588 496,826 - 29,618 - - 7,784 - t 600 5,065,913 4,462,837 1,629 195,585 603,321 - 219,953 - 80,000 - - 132,633 99,964 - (32,633) (24,964) - 399,953 75,000 1,629 595,538 678,321 566 2,914,559 2,936,238 $ 2,195 $ 3,510,097 $ 2,914,559 9 CITY OF CAPE CANAVERAL, FLORIDA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - .Budget and Actual - All Governmental Fund Types and Expendable Trust Funds Year Ended September 30,2002 ' General Fund Variance Amended Favorable Budget Actual (Unfavorable) -- Revenues: Taxes $ 2,298,190 S 2,391,813 $ 93,623 Licenses and permits 504,600 559,631 55,031 Intergovernmental 757,715 786,317 28,602 Charges for services and impact fees 937,755 946,714 8,959 Fines and forfeitures 123,000 126,561 3,561 Interest 46,600 50,573 3,973 Miscellaneous 33,500 8,858 (24,642) Total revenues 4,701,360 4,870,467 I69,107 Expenditures: Current:: General government 512,547 451,032 61,515 Public safety 2,276,884 2,172,609 104,275 Transportation 478,318 460,119 18,199 ' Physical environment 729,452 723,030 6,422 Culture and recreation 215,037 223,498 (8,461) Capital outlay 816,946 735,041 81,905 Debt service Principal 37,402 29,618 7,784 Interest - 7,784 (7,784) Contingency 73,278 - 73,278 Total expenditures 5,139,864 4,802,731 337,133 Excess (deficiency)of revenues over (under) expenditures (438,504) 67,736 506,240 Other financing sources (uses): Proceeds from capital lease 219,953 219,953 - Proceeds from sale of capital asset 80,000 80,000 - Operating transfers in 146,701 132,633 (14,068) Operating transfers out (8,150) - 8,150 Total other financing sources(uses) 438,504 432,586 (5,918) Excess(deficiency)of revenues and other financing sources over(under)expenditures and other financing uses - 500,322 500,322 Fund balances, beginning of year 2,227,822 2,227,822 - Fund balances,end of year $ 2,227,822 $ 2,728,144 $ 500,322 Continued 10 Special Revenue Funds Capital Projects Fund Variance Variance Amended Favorable Amended Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 216,185 S 217,740 $ 1,555 $ - $ - $ - 200,000 - (200,000) - - - 19,633 19,633 - 82,000 120,760 38,760 8,000 9,701 1,701 - - - 11,000 10,615 (385) 5,600 7,026 1,426 1,100 3,327 2,227 - - - 455,918 261,016 (194,902) 87,600 127,786 40,186 10,000 10,000 - - - 531,367 185,315 346,052 - - 22,200 19,720 2,480 - - - - 26,015 (26,015) 113,450 21,532 91,918 563,567 241,050 322,517 113,450 21,532 91,918 r (107,649) 19,966 127,615 (25,850) 106,254 132,104 (19,633) (19,633) - (13,000} (13,000) - (19,633) (19,633) - (13,000) (13,000) - " (127,282) 333 127,615 (38,850) 93,254 132,104 457,873 457,873 - 228,298 228,298 - $ 330,591 $ 458,206 $ 127,615 $ 189,448 $ 321,552 $ 132,104 Continued 1] CITY OF CAPE CANAVERAL,FLORIDA Combined Statement of Revenues,Expenditures and Changes in Fund Balances- Budget and Actual-All Governmental Fund Types and Expendable Trust Funds-continued Year Ended September 30,2002 Expendable Trust Funds Variance Amended Favorable Budget Actual (Unfavorable) Revenues: Taxes $ _ Licenses and permits - Intergovernmental _ Charges for services and impact fees - Fines and forfeitures - Interest _ Miscellaneous 1,050 2,229 1,179 Total revenues 1,050 2,229 1,179 y Expenditures: Current: General government - _ _ Public safety 1,616 600 1,016 Transportation - _ _ Physical environment - Culture and recreation - Capital outlay _ Debt service Principal Interest Contingency _ _ _ Total expenditures 1,616 600 1,016 Excess(deficiency)of revenues over ' (under)expenditures (566) 1,629 2,195 Other financing sources (uses): Proceeds from capital lease - _ _ Proceeds from sale of capital asset - - _ Operating transfers in _ - _ Operating transfers out _ _ _ Total other financing sources(uses) - Excess(deficiency)of revenues and other financing sources over(under)expenditures and other financing uses (566) 1,629 2,195 Fund balances,beginning of year 566 566 - y Fund balances,end of year $ - $ 2,195 $ 2,195 See accompanying notes to financial statements. 12 Totals(Memorandum Only) Variance Amended Favorable Budget Actual (Unfavorable) $ 2,514,375 $ 2,609,553 $ 95,178 504,600 559,631 55,031 957,715 786,317 (171,398) 1,039,388 1,087,107 47,719 131,000 136,262 5,262 63,200 68,214 5,014 35,650 14,414 (21,236) 5,245,928 5,261,498 15,570 512,547 451,032 61,515 2,288,500 2,183,209 105,291 1,009,685 645,434 364,251 729,452 723,030 6,422 237,237 243,218 (5,981) 930,396 782,588 I47,808 37,402 29,618 7,784 - 7,784 (7,784) 73,278 - 73,278 5,818,497 5,065,913 752,584 (572,569) 195,585 768,154 219,953 219,953 - 80,000 80,000 - 146,701 13 2,6 33 (14,068) (40,783) (32,633) 8,150 405,871 399,953 (5,918) (166,698) 595,538 762,236 2,914,559 2,914,559 - $ 2,747,861 $ 3,510,097 $ 762,236 13 CITY OF CAPE CANAVERAL,FLORIDA Statement of Revenues, Expenses and Changes in Retained Earnings- ' Proprietary Fund Year Ended September 30,2002 Enterprise Fund Operating revenues: Service charges S 2,025,007 Other 5,311 Total operating revenues 2,030,318 Operating expenses: Operating and maintenance: Personal services 902,665 Materials and supplies 99,485 Other operating and maintenance 531,252 Depreciation 609,768 Total operating expenses 2,143,170 Operating(loss) (112,852) Nonoperating revenues(expenses): Interest income 63,111 Connection fees 537,191 Interest expense (223,004) Amortization of loan costs (9,291) �- Loss on disposal of assets (333) Total nonoperating revenues(expenses) 367,674 Income before operating transfers 254,822 Operating transfers out (100,000) Net income 154,822 Retained earnings,beginning of year 10,812,184 Retained earnings,end of year S 10,967,006 See accompMing notes to financial statements. 14 CITY OF CAPE CANAVERAL,FLORIDA Statement of Changes in Plan Net Assets-Pension Trust Fund Year Ended September 30,2002 Defined Contribution Additions: Plan Contributions from City $ 85,576 Investment(loss) Net(depreciation) in fair value of investment (32,911) Less investment expense (502) Net investment(loss) (33,413) Total additions 52,163 Deductions: Withdrawals 54,147 Total deductions 54,147 Net decrease (1,984) Net assets held in trust for pension benefits: Beginning of year 1,051,$76 End of year S 1,049,892 See accompanying notes to financial statements. 15 CITY OF CAPE CANAVERAL,FLORIDA Statement of Cash Flows -Proprietary Fund Year Ended September 30,2002 Enterprise Fund Cash flows from operating activities: Cash received from customers $ 2,010,008 Cash payments to suppliers for goods and services (387,606) Cash payments to employees for services (910,266) -^ Other operating revenues 5,311 Net cash provided by operating activities 717,447 Cash flows from non-capital financing activities: Operating transfers out to other funds (100,000) Net cash used by non-capital financing activities (100,000) Cash flows from capital and related financing activities: Connection fees received from customers and developers 537,191 Acquisition and construction of capital assets (497,112) Principal paid on state revolving loan (418,948) Interest paid on state revolving loan (230,435) ' Capital grant received 20,900 Net cash used by capital and related financing activities (588,404) Cash flows from investing activities: Interest income received 63,111 Net cash provided by investing activities 63,111 Net increase in cash and cash equivalents 92,134 Cash and cash equivalents, beginning of year 3,263,251 Cash and cash equivalents,end of year S 3,355,405 Cash and cash equivalents for the purposes of this statement consisted of the following at September 30,2002: Unrestricted cash and cash equivalents $ 1,932,281 Restricted cash and cash equivalents 1,423,124 Total cash and cash equivalents $ 3,355 405 Continued. 16 CITY OF CAFE CANAVERAL,FLORIDA Statement of Cash Flows - Proprietary Fund -Continued Year Ended September 30, 2402 Enterprise Fund Reconciliation of operating(loss)to net cash provided by operating activities Operating(loss) $ (112,852) Adjustments to reconcile operating(loss)to net cash provided by operating activities: Depreciation expense 609,768 Change in assets and liabilities: Increase in accounts receivable (14,999) Increase in prepayments (6,843) Decrease in due to other funds (10,953) Increase in accounts payable 249,974 Increase in accrued compensated absences 3,352 Total adjustments 830,299 Net cash provided by operating activities $ 717,447 Non-cash investing,capital and financing activities: Amortization of loan costs $ 9,291 See accompanying notes to fmancial statements. 17 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30, 2002 1. Summary of Significant Accounting Policies The City of Cape Canaveral, Florida(City), was created pursuant to Chapter 73-129, Laws of Florida, in 1962. The City operates under a Council-Manager form of government and provides the following services: public safety,highways and streets,sanitation, culture and recreation and general and administrative services. The financial statements of the City of Cape Canaveral, Florida, have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity_ As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended components units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Each blended component unit has a September 30, 2002 year end. Blended Component Units: The Beautification Board is responsible for promoting and providing for beautification programs and projects in the City. The members of the advisory board are appointed by the City Council. The Project is funded by City and voter approved ad valorem taxes and the legal liability for any payables remain with the City Council, The Board is reported as a special revenue fund. The Library Fund (Fund) is responsible for exterior maintenance of the library. The members of the Fund's advisory board are appointed by the City Council. Funds are derived by voter approved ad valorem taxes and the legal liability for all payables remain with the City Council. The Fund is reported as a special revenue fund. The Cape Canaveral Public Library is funded through the Brevard County Free Public Library District, a separate taxing authority. It is governed by a separate board (appointed by the Brevard County Board of Commissioners) having authority to employ its own management, approve financial transactions and having accountability for fiscal matters. The Library Board's Budget is approved by Brevard County and its personnel t are governed by the policies and procedures of Brevard County, The Cape Canaveral Public Library is therefore not included under the reporting entity definition in the City's financial statements. t Complete financial statements for each of the individual component units may be obtained at the City of Cape Canaveral City Hall at the following address: City of Cape Canaveral, 105 Polk Avenue, Cape Canaveral, FL 32920. B. Fund Accounting The City uses funds and account groups to report its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. I9 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 1. Summary of Significant Accounting Policies,continued B. Fund Accounting,continued A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds are classified in three categories; governmental, proprietary and fiduciary. Each category, in turn, is divided into separate"fund types". Governmental Funds Governmental Funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects fund), and the servicing of general long-term debt (debt service funds). The City's Governmental Funds are described as follows: w General Fund The General Fund is the general operating fund of the City and is used to account for all financial resources except for those required to be accounted for in another fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects)that are legally restricted to expenditures for specified purposes. Special Revenue Funds of the City are: Fire Protection Fund - This fund accounts for impact fees collected under the authority of Chapter 381, Fire Prevention and Protection Recognition of the Code of Ordinances to finance the purchase of fire protection equipment. Beautification Fund - This fund accounts for voter-approved ad valorem taxes used to finance .. beautification programs and projects in the City. Police Education Fund - This fund accounts for certain revenues of the City for the specific purpose .. of police training, and for the expenditures related to providing that training in accordance with Florida Statutes. -- Library Fund - This fund accounts for voter-approved ad valorem taxes used for certain operations and maintenance costs of the library. -� 20 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 _ 1. Summary of Significant Accounting Policies,continued B. Fund Accounting, continued Capital Projects The Capital Projects fund-type is used to account for major capital acquisitions and projects, separate from normal operations. The Capital Projects fund-type of the City is: Capital Expansion - This fund accounts for impact fees collected to provide for capital acquisitions and capital projects for general City development. Proprietary Funds Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies r primarily within the government (internal service funds). The government applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations. Enterprise Fund The Enterprise Fund is used to account for operations(a)that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs (expenses,including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses, incurred and/or net income is appropriate for capital maintenance,public policy,management control,accountability, or other purposes. The Enterprise Fund of the City is: Sewer Fund - This fund accounts for the collection of utility revenues and the operation and maintenance of the City-owned sewer and reuse systems. Fiducialy Funds Fiduciary Funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. When these assets are held under the terms of a formal trust agreement, either a pension trust fund, a nonexpendable trust fund or an expendable trust fund is used. The terms "nonexpendable" and "expendable" refer to whether or not the government is under an obligation to maintain the trust principal. 21 CITY OF CAPE CANAVERAL, FLORIDA Notes to Financial Statements September 30, 2002 I. Summary of Significant Accounting Policies, continued B. Fund Accounting, continued Fiduciary Funds, continued Expendable Trust Fund These funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations,other governments, and/or other funds. The Expendable Trust Fund of the City is: Special Law Enforcement Trust Fund - This fund is used to account for the receipt and disbursement of confiscated contraband property proceeds from certain criminal cases pursuant to Florida Statutes. Pension Trust Fund - This fiend is used to account for the defined contribution pension plan for the City's employees. Pension Trust Funds are accounted for in essentially the same manner as Proprietary Funds, Account Groups i An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the assets or liabilities of any funds because they do not directly affect net expendable available financial resources. The City's account groups are described as follows: General Fixed Assets Account Group This account group is used to account for all property and equipment of the City except for those accounted for in Proprietary Funds. General Long-Term Debt Account Group Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group. 22 _ CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 1. Summary of Significant Accounting Policies,continued C. Basis of Accountin The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds and expendable trust fund are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are included on the balance sheet. Operating statements of these funds present increases(i.e.,revenues and other financing sources) and decreases(i.e.,expenditures and other financing uses)in net current assets. All governmental fund types and expendable trust fund are maintained on the modified accrual basis of account- ing. Under this method, revenues are recognized when they become measurable and available to finance operations of the current period. Primary revenue sources that are determined to be susceptible to accrual include taxes and special assessments, intergovernmental shared revenues and operating grants, charges for services, and interest earnings on investments. Those that are determined not to be susceptible to accrual include licenses, permits, fines and forfeitures. Expenditures are recognized when the related fund liability is incurred, except for the long-term portion of accumulated unused vacation and sick pay which is not accrued, and principal and interest on general long-term debt which is recognized when due. The proprietary fund and the pension trust fund are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. In accordance with Government Accounting Standards Board (GASB) Statement No_ 20, "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting," the City has selected one of the two options available for proprietary fund reporting. The City will apply all applicable GASB pronouncements and all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict GASB pronouncements. Utility service receivables are recorded currently on a monthly basis. The City does not utilize cyclical billing, therefore all customers are billed on the same date once each month for services consumed. t The government reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the government before it has a legal claim to them, as when grant monies are received prior to the occurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. D. Budutary Data An annual budget is prepared for all funds of the City except for the Pension Trust Funds which are effectively controlled through governing agreements and related City ordinances. The annual operating budgets are prepared on a basis consistent with generally accepted accounting principles and adopted by the City Council pursuant to City Charter_ 23 CITY OF CAPE CANAVERAL,FLORIDA ^ Notes to Financial Statements September 30, 2002 1. Summary of Significant Accounting Policies, continued D. Budgetary Data, continued ^ The budgets, as adopted,are reviewed quarterly by the City Council. Budgetary integration is established in the ^ accounting records for management control purposes at the object of expenditure level; however, the City Charter establishes the level at which expenditures may not legally exceed the total City-wide appropriations. The City manager has the authority to make budget transfers between line items, expenditure classifications and departments without formal approval by City Council. However, any revisions that increase the total ^ appropriations of the City must be approved by the City Council. The annual budgets shown in the financial statements include all amendments as approved during the year by the City Council (see Note 6). Annual budget appropriations lapse at the end of each fiscal year. E. Budgetary Accounts The City Council budgets all governmental funds and expendable trust funds on the modified accrual basis of accounting which is consistent with generally accepted accounting principles. ^ F. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods and services. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal _ budgetary integration in the General, Special Revenue and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. These comrriitments will be honored during the subsequent year. The subsequent year's appropriations provide authority to complete these transactions_ Encumbrances are not recognized as expenditures until the period in which the goods or services are received and a liability is incurred. There were no outstanding encumbrances at September 30, 2002. G. Cash Cash Equivalents, and Investments Cash includes amounts in demand deposits as well as short-term investments with a maturity date within three (3) months of the date acquired by the City. For purposes of the statement of cash flows the City considers all highly liquid investments with a maturity date of three (3) months or less when purchased to be cash ^ equivalents. The City has a pooled investment account which allows the City to invest temporarily idle monies , at more favorable interest rates by consolidation of its resources. All funds, except fiduciary funds, participate in the SBA pooled investment account. The investments are stated at cost, which together with accrued interest receivable, approximate market value. Investment earnings of the pool are allocated to the participating funds at the end of each month based on the ratio of each fund's investment to the total pooled investment. 24 ^ CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30, 2002 1. Summary of Significant Accounting Policies,continued H. Investments Investments are stated at cost and interest is accrued as earned in all funds except for the Pension Trust Fund, where investments are stated at fair value. The average cost method is used for computing realized gains and losses on marketable securities in the pension fund. I. Accounts receivable An allowance for doubtful accounts has been established for the General Fund and the Enterprise Fund. J. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date donated. Assets in the general fixed assets account group are not depreciated. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. ^ Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets, sidewalks, drainage systems and lighting systems are capitalized along with other general fixed assets. Contributions received in aid of construction are credited to contributions accounts and do not reduce the cost of the assets acquired with such contributions. Property and equipment used in proprietary fund type operations are accounted for in the City's Enterprise Fund (Sewer Fund). Capital additions and the cost of improvements and replacements which extend the useful lives of the assets are capitalized. Other recurring costs for repairs and maintenance are charged to operations when ^ incurred. Depreciation has been provided in the Enterprise Funds using the straight-line method over the estimated useful lives of the various assets,which range as follows: Buildings 20-40 years Improvements other than buildings 10-40 years Machinery and equipment 3-40 years Interest is capitalized on proprietary fund assets constructed with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of borrowing until completion of the project, with interest earned on investment proceeds over the same period. 25 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30, 2002 1. Summary of Significant Accounting Policies,continued K. Restricted Assets Certain assets of the City's Enterprise Funds are classified as restricted assets on the balance sheet because their use is limited for specified purposes other than normal operations. These assets include proceeds from issuance of revenue bonds, capital grants from other governments, and that portion of operating revenues set aside pursuant to ordinances and loan agreements. Special restricted asset accounts have been established to account for the sources and uses of these limited use assets, as follows: - Bond Debt Service - Renewal and Replacement - Capital Improvement and Construction State Revolving Loan Fund Escrow State Revolving Loan Fund Replacement Retained earnings of the Enterprise Funds are reserved for that portion of restricted assets funded from operating revenues. L. Inventory Inventories are stated at cost(first-in, first-out)and are accounted for under the consumption method. M. Prepaid ItemslEx enses Payments made to vendors for services that will benefit periods beyond the current fiscal year are recorded as prepaid items/expenses. N. Lona-Term Obligations ^ The City reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the debt using the effective interest method. Bonds payable are reported net of the _ applicable bond premium or discount. Issuance costs are reported as deferred charges. 26 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 1. Summary of Significant Accounting Policies,continued O. Fund E uit Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The proprietary fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. P. Revenues,Contributions, xpenditures and Expenses The City's accounting treatment and recognition policies for certain revenues, expenditures, and expenses having unique accounting requirements are discussed below. Property Taxes Property taxes are billed in November and attach as a Iien on property as of January I of each year. Taxes become delinquent on April 1 and tax certificates on all property on which taxes are delinquent are sold on or about June 1 of each year. In accordance with NCGA Interpretation 3, property tax revenues are ^ recognized when they became both measurable and available_ Because tax certificates on all property are sold in June,there are no material amounts of property taxes receivable as of each fiscal year end. Administrative Service Charyes Administrative services are provided to certain Enterprise Fund activities by various departments within the ` General Fund. These charges are recorded as revenues in the General Fund and as operating expenses in the appropriate Enterprise Fund. ^ Capital Grants and Contributions Program grants and capital grants for general fixed assets are recorded in the appropriate Governmental ^ Fund as receivables and revenues at the time reimbursable project costs are incurred. Grant revenues, if any, received in advance of meeting all major grant restrictions are deferred. Capital grants in the Proprietary Funds awarded for the construction of fixed assets are recorded as receivables and contributed equity at the time reimbursable project costs are incurred. Compensated Absences Vacation and sick leave benefits are recorded in expenditures and in fund liabilities of the Governmental Funds at amounts accruing during the year that normally would be liquidated with expendable available _ financial resources in such Funds. Amounts earned at year end in excess of the amount accrued are recorded in the General Long-Term Debt Account Group. Such benefits are accrued in the Proprietary Funds when earned by employees. 27 CITY OF CAPE CANAVERAL,FLORIDA — Notes to Financial Statements September 30, 2002 1. Summary of Significant Accounting Policies, continued Q. Interfund'Transactions Quasi-extemal transactions are accounted for as revenues, expenditures or expenses. Reimbursements are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the — fund that is reimbursed. All other interfund transactions are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported — as operating transfers. R. Comparative Data Comparative total data for the prior year have been presented in selected sections of the accompanying financial "– statements in order to provide an understanding of the changes in the government's financial position and — operations. S. Memorandum Only-Total Columns Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles and such data is not comparable to a consolidation. lnterfund eliminations have not been made in the aggregation of this data. — 2. Stewardship,Compliance and Accountability Fire Protection Services The City contracts with the Cape Canaveral Volunteer Fire Department, Inc. for fire fighting and advanced life support services. The basic service contract for fiscal year 2002 was $455,704 plus additional related — expenditures for workers' compensation, property and liability insurance, fire fighting equipment and — maintenance and fire hydrant rental fees. The City expended a total of$907,116 for fire protection during fiscal year 2002. — Police Protection Services — The City contracts with the Brevard County Sheriff to provide law enforcement services. The amount paid — under the contract for fiscal year 2002 was S1,371,174, for operating costs. Educational costs totaled $10,000. The City expended a total of S 1,468,814 for police protection during fiscal year 2002. 28 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements Seep ember 30, 2002 3. Budgetary Compliance The City's budgetary data and actual data are presented on the modified accrual basis for all governmental funds in accordance with generaIIy accepted accounting principles. 4. Detail Notes-All Funds and Account Groups Cash and Cash Equivalents The City maintains centralized checking accounts for all funds(except Pension Trust Funds). Cash equivalents, including those classified as restricted assets, consist of pooled investments with the State Board of Administration, which at September 30, 2002, were earning interest at approximately 1.93%. The market value of these investments approximates cost. The State Board of Administration Funds are fully secured by Government Securities as required by Florida Statutes Chapter 215.47. Deposits At September 30, 2002, the carrying amount of cash deposits was $792,679 and the bank balance was $1,187,260. All deposits with financial institutions were 100% insured by Federal depository insurance or by collateral pursuant to the Public Depository Security Act of the State of Florida. Investments The investment of municipal funds is authorized by Section 166.261, Florida Statutes which allows the City to invest in the Local Government Surplus Funds Trust Fund administered by the State Board of Administration, direct and indirect obligations of the United States Government, obligations of Federal Government agencies, time deposits or savings accounts of financial institutions under Federal and State regulation, and mutual funds that invest solely in obligations of the United States government or its agencies. The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7 of the Florida Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide guidance and establish the general operating procedures for the administration of the Local Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General performs the operational audit of the activities and investments of the State Board of Administration. The Local Government Surplus Funds Trust Fund is not a registrant with the Securities and Exchange Commission(SEC);however the Board has adopted operating procedures consistent with the requirements for a r 2a-7 fund. In accordance with the regulations of 2a-7-like pools, the method used to determine the participant's shares sold and redeemed is the amortized cost method. The amortized cost method is the same method used to report investments. Amortized cost includes accrued income and is a method of calculating an investment's value by adjusting its acquisition cost for the amortization of discount or premium over the period from purchase to maturity. 29 CITY OF CAPE CANAVERAL,FLORIDA -- Notes to Financial Statements September 30, 2002 4. Detail Notes-All Funds and Account Groups,continued There is no requirement under Florida Statues for any local government or state agency to involuntarily participate in the Local Government Surplus Funds Trust Fund Investment Pool. Total cash and cash equivalents included in the accompanying balance sheet include the following: _ Unrestricted Restricted Total Total carrying amount S 5,223,370 $ 1,425,319 $ 6,648,689 Cash on hand 1,191 - 1,191 Total cash and cash equivalents $ 5,224,561 $ 1,425,319 $ 6,649,880 Investments in the Pension Trust Fund are stated at fair value. There were no amounts classified as investments which are requited to be classified by categories of credit risk. Following is a summary of these investments at September 30,2002: Investments: y Pooled Pension Trust Fund Investment Accounts $ I,049,892 Total investments $ 1,049,892 Property Taxes The City is permitted to levy taxes up to 10 mills on assessed valuation. However, Chapter 74-430, Laws of Florida, a special act applicable only to governmental mitts in Brevard County, limits the annual increase to 10% of tax revenues of the preceding year (exclusive of new construction and improvements not appearing in the previous year's tax Toll) without voter approval by referendum. The millage rates levied by the City for fiscal year ended September 30, 2002 were .4504 mills for beautification projects, .0500 mills for the library fund, .5000 for fire rescue and 1.0000 for police service. Tax collections for the City were approximately 98%of the total tax levy. The City Council determines the millage rates and adopts a tax levy by resolution prior to September 30 to fund the next ensuing fiscal year's budget. The assessment of all properties and collection of municipal taxes are , provided by the County's Property Appraiser and Tax Collector. The ad valorem tax calendar is as follows: Lien date-January 1 Levy date-Prior to September 30 Due date-November 1 Delinquent date -April 1 30 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 4. Detail Notes-All Funds and Account Groups,continued All property taxes remaining unpaid at May 30 are subject to a tax certificate sale by the Tax Collector, therefore, taxes which would be susceptible to accrual are collected prior to the end of the City's fiscal year. Property tax revenues are recognized in the fiscal year for which they are budgeted and also become due and payable. Accounts Receivable Net Accounts receivable are recorded net of allowance for doubtful accounts of$2,464 and 54,348 in the General Fund and Enterprise Fund,respectively. Receivables in all other funds are considered to be fully collectible. Interfund Transactions There are two types of interfund transactions and transfers that are reported as interfund items between the funds. Quasi-extemal interfund transactions treat revenues, expenditures or expenses as if the transactions were occurring outside the government. Interfund transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund and which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund. Nonrecurring or nonroutine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from fund balance or, in the case of a proprietary fund,to contributed capital and retained earnings. All other transfers are treated as operating transfers and are included in the results of operations for both Governmental and Proprietary funds statements. Interfund operating transfers at September 30,2002 are summarized as follows: Transfers Transfers In Out All Governmental Funds and Expendable Trust Funds $ 132,633 $ 32,633 Proprietary Fund - 100,000 Total $ 132,633 $ 132,633 Interfund Receivables and Payables The composition of interfund balances as of September 30, 2002 is as follows: Receivable Payable Fund Fund General Fund $ 37,698 $ - Capital Expansion Capital Projects Fund - 37,698 Total $ 37,698 $ 37,698 31 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 4. Detail Notes-All Funds and Account Groups,continued Fund Equity Changes in reserved and designated fund equity during 2002 were as follows: — Balances Balances October 1, Increase September 30, 2001 (Decrease) 2002 Reserved retained earnings: ^ Reserved for debt service $ 119,563 $ 7,430 $ 126,993 Reserved for capital expansion 724,533 305,021 1,029,554 Reserved fund balances: Reserved for employees'retirement system 1,051,876 (1,984) 1,049,892 — Reserved for law enforcement education 566 1,629 2,195 Reserved for inventory 5,166 (80) 5,086 Reserved for prepayments 21,655 203,227 224,882 — Designated fund balances: Subsequent year's expenditures 167,981 (167,981) - 5. General Fixed Assets — Changes in general fixed assets during fiscal year 2002 are summarized as follows: Balances Balances October 1, September 30, ^ 2001 Increase Decrease 2002 Land $2,494,562 $ - $ - $ 2,494,562 Buildings 1,115,014 8,297 1,896 1,121,415 ^ Improvements other than buildings 4,125,368 108,878 8,090 4,226,156 Machinery and equipment 1,959,242 583,659 297,348 2,245,553 Construction in progress - 81,754 - 81,754 Total $9,694,186 $ 782,588 $ 307,334 $ 10,169,440 32 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements Se tember 30, 2002 5. General Fixed Assets,continued w Sources of investment in general fixed assets are summarized as follows: General Fund $ 3,429,665 Special Revenue Funds 1,799,336 Capital Projects Fund 3,593,314 Special Assessments 830,756 Expendable Trust Funds 29,388 Donations 486,981 Total $ 10,169,440 Summary of Enterprise Fund Fixed Assets Property and equipment in the Sewer Fund include the following: Accumulated Net Book Estimated Cost Depreciation Value Life Sewer Fund: Land $ 351,084 $ - $ 351,084 - Buildings 954,444 621,937 332,507 50 years Improvements other than buildings 18,758,548 4,507,285 14,251,263 30-50 years Equipment 565,991 415,400 150,591 5 years Construction in progress 1,500 - 1,500 - Total $ 20,631,567 $ 5,544,622 $15,086,945 6. Budget Amendments Amendments made to the annual operating expenditure budgets (excluding other uses of governmental funds) for the year ended September 30, 2002, are summarized by fund as follows: Original Total Amended Budget Amendments Budget General Fund $4,575,641 $ 564,223 $ 5,139,864 Special Revenue Funds 532,285 31,282 563,567 Capital Projects Fund 118,600 (5,150) 113,450 Expendable Trust Funds 1,610 6 1,616 Enterprise Fund 2,787,530 - 2,787,530 Total $8,015,666 $ 590,361 $ 8,606,027 33 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements Se tember 30, 2002 7. Long-Term Debt Changes in long-term debt during fiscal year 2002 are summarized as follows: Obligation Accrued for Capital Compensated Enterprise Lease Absences Fund Total Long-term debt, October 1,2001 $ - $ 33,133 $ 7,655,742 $ 7,688,875 Debt issued 219,952 - - 219,952 Debt retired (29,618) - (418,948) (448,566) Change m compensated absences - 3,327_ - 3,327 Long-term debt, September 30,2002 $ 190,334 $ 36,460 $ 7,236,794 $ 7,463,588 During 1995 and 1996, the City entered into revolving loan agreements with the State of Florida to provide financing of sewer capital improvements. The loans are made on a draw basis and are subject to service fees charged by the State. Long-term debt at September 30,2002 is comprised of the following: General Long-Term Debt Outstanding Accrued compensated absences $ 36,460 $219,952 capital lease obligation with financial institution held jointly with the Canaveral Port Authority; due $37,402 annually on May 1 including �- interest at 4.919%; secured by fire equipment 190,334 Total general long-term debt outstanding 226,794 Enterprise Fund Long-Term Debt Outstanding y $7,559,685 State Revolving Fund Loan Agreement with the State of Florida Department of Environmental Protection; due $251,694 semi-annually on January 1 and July 1 including interest at 2.92%to 3.17%;secured by pledge of the net revenues from operation of the sewer system 5,526,864 $2,182,000 State Revolving Fund Loan Agreement with the State of Florida Department of Environmental Protection; due $72,998 semi-annually on April 15 and October 15 including interest at 2.97%;secured by pledge of the net revenues from operation of the sewer system 1,709,930 Total Enterprise Fund long-term debt outstanding 7,236,794 _ Total long-term debt-all funds $ 7,463,588 34 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30,2002 7. Long-Term Debt,continued Summary of Debt Maturity The annual debt service requirements for the next five years and in the aggregate thereafter on long-term debt outstanding as of September 30, 2002, including interest payments of $1,709,949 and excluding accrued compensated absences, are as follows: General Year Ending Enterprise Long-Term September 30 Fund Debt 2003 $ 649,383 $ 37,402 2004 649,383 37,402 2005 649,383 37,402 2006 649,383 37,402 2007 649,383 37,402 Thereafter 5,665,748 37,402 Total $8,912,663 $ 224,412 8. Defined Contribution Pension Plan The City of Cape Canaveral Employees' Pension Plan provides pension benefits for all full-time employees of the City. The plan is a defined contribution plan administered by the Florida League of Cities and features participant directed investments. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate after one year of employment with 1,000 hours of service each year. The City contributes an amount equal to 7% of the employee's base salary l each month. The City's contributions for each employee (and earnings allocated to the employee's account)are fully vested after five years' continuous service. The forfeited portion, and earnings thereon, for employees who leave employment are used to reduce the City's current-period contribution requirement. The plan is funded solely by employer contributions pursuant to City Resolution 01-27. The City's total payroll in fiscal year 2002 was $1,4I3,980. The City's contributions were based on eligible compensation of$1,222,509. The required contribution of 7% of covered payroll amounted to $85,576 for fiscal year 2002. The City's annual pension report was filed and accepted by the Department of Administration, Retirement Division, State of Florida,in accordance with Section 22D-1.06, Florida Administrative Code. 35 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30, 2002 9. Liability for Compensated Absences y All permanent employees of the City are eligible for paid vacation and sick leave. Earned vacation and sick Ieave can be carried forward to subsequent years. Accumulated unpaid vacation and sick pay are accrued when earned in the Proprietary Fund. As of September 30, 2002,the long-term liability for compensated absences of the governmental funds was$36,460. -� In accordance with generally accepted accounting principles, the amount of accrued liability for compensated absences recorded in the General Fund and the Special Revenue Fund (both Governmental Funds) represents the amount of the liability that is expected to be liquidated with expendable available financial resources. The remainder of the liability related to employees in the General Fund and the Special Revenue Fund is recorded in the General Long-Term Debt Account Group. 10. Deferred Revenue and Deposits Deferred revenue and deposits of$183,684 in the General Fund represent revenues and deposits collected in advance of earnings recognition. Amounts included in deferred revenue and deposits are for various street paving, traffic light projects, and occupational licenses. Also included in deferred revenue is $79,462 of fine and forfeiture monies that were overpaid by Brevard County. 11. Risk Management The City is exposed to various risks of loss related to torts;theft of, damage to and destruction of assets, errors and omissions; and natural disasters. In order to limit its exposure to these risks, the City is a participant in the T Florida League of Cities (a not-for-profit corporation) self-insurance program for workers compensation, general and auto liability, and property insurance. The self-insurance program purchases excess and specific coverages from third party insurance carriers. Participants in the program are billed annually for their portion of the cost of the program adjusted for actual experience during the period of coverage. Participants are not assessed for unanticipated losses incurred by the program. There have been no significant reductions in insurance coverages during fiscal year 2002. Settled claims have not exceeded commercial excess coverages in ' any of the past three years. 36 CITY OF CAPE CANAVERAL,FLORIDA Notes to Financial Statements September 30, 2002 12. Segment Information The City has one Enterprise Fund which is used to account for the provision of sewer services. Segment information relating to this Fund for the year ended.September 30,2002, is summarized as follows: Operating revenues 2,030,318 Depreciation 609,768 Operating(loss) (112,852) Net income 154,822 Operating transfers out (100,000) Property and equipment additions 497,112 Net increase in cash and cash equivalents 92,154 Total assets 19,040,202 Long-term debt due after one year 6,804,961 Total equity 11,364,676 37 CITY OF CAPE CANAVERAL, FLORIDA COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS CITY OF CAPE CANAVERAL, FLORIDA SPECIAL REVENUE FUNDS Special Revenue Funds account for specific financial resources (other than expendable trusts or capital projects) which require separate accounting because of legal, regulatory, or administrative action. Fire Protection Fund - To account for resources collected to finance the purchase of fire protection equipment. Beautification Projects Fund - To account for resources used to finance beautification programs and projects in the City. Police Education Fund - To account for resources provided for the specific purpose of police training in accordance with Florida Statutes. Library Fund - To account for resources used for certain operations and maintenance costs of the library. 39 CITY OF CAPE CANAVERAL,, FLORIDA Special Revenue Funds Combining Balance Sheet September 30, 2002 (With Comparative Totals for 2001) ASSETS Cash and cash equivalents Due from other governments Prepayments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to other funds Accrued compensated absences Total liabilities Fund balances: Reserved for prepayments Unreserved: Undesignated Total fund balances Total liabilities and fund balances Fire Beautification Police Protection Projects Education $ - $ 449,181 $ 13,003 39 243 209 - $ - $ 449,429 $ 13,246 $ - $ 16,331 $ - 3,048 - - 19,379 - - 430,050 13,246 - 430,050 13,246 S - $ 449,429 S 13,246 40 Totals Library Fund 2002 2001 $ 14,906 $ 477,090 $ 495,394 4 286 170 $ 14,910 $ 477,585 $ 495,564 $ - $ 16,331 $ 34,736 - 294 - 3,048 2,661 19,379 37,691 14,910 458,206 457,873 14,910 458,206 457,873 $ 14,910 $ 477,585 $ 495,564 41 CITY OF CAPE CANAVERAL, FLORIDA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended September 30,2002 (With Comparative Total Actual Amounts for 200 1) Revenues: Taxes Intergovernmental Impact fees Fines and forfeitures Interest Miscellaneous Total revenues Expenditures: Current (includes departmental capital outlay): Public safety Transportation Physical environment Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, beginning of year Fund balances, end of year Continued Fire Protection Variance Amended Favorable Budget Actual (Unfavorable) 19,633 19,633 - 19,633 19,633 - 19,633 19,633 - (19,633) (19,633) - (19,633) (19,633) - 42 - - - 10,000 10,000 - 531,367 211,330 320,037 - - _ 531,367 211,330 320,037 10,000 10,000 - (125,282) (1,953) 123,329 (2,000) (86) 1,914 (125,282) Beautification Projects 123,329 Police Education Fund (86) 1,914 Variance 432,003 285,281 Variance Amended 377 Favorable Amended $ 123,329 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 194,585 $ 195,983 $ 1,398 $ - $ 200,000 - (200,000) - - - - - - 8,000 9,701 1,701 10,400 10,067 (333) - 213 213 1,100 3,327 2,227 - - - 406,085 209,377 (196,708) 8,000 9,914 1,914 - - - 10,000 10,000 - 531,367 211,330 320,037 - - _ 531,367 211,330 320,037 10,000 10,000 - (125,282) (1,953) 123,329 (2,000) (86) 1,914 (125,282) (1,953) 123,329 (2,000) (86) 1,914 432,003 432,003 285,281 13,332 13,332 377 $ 306,721 $ 430,050 $ 123,329 $ 11,332 $ 13,246 $ 2,291 43 CITY OF CAPE CANAVERAL, FLORIDA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Year Ended September 30, 2002 (With Comparative Total Actual Amounts for 200 1) Revenues: Taxes Intergovernmental Impact fees Fines and forfeitures Interest Miscellaneous Total revenues Expenditures: Current (includes departmental capital outlay): Public safety Transportation Physical envirorunent Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, beginning of year Fund balances, end of year Library Fund Variance Amended Favorable Budget Actual (Unfavorable) $ 21,600 $ 21,757 $ 157 600 335 (265) 22,200 22,092 (108) 22,200 19,719 2,481 22,200 19,719 2,481 2,373 2,373 - 2,373 2,373 12,538 12,538 - $ 12,538 $ 14,911 $ 2,373 44 2002 Totals Variance Amended Favorable 2001 Budget Actual (Unfavorable} Actual $ 216,185 $ 217,740 $ 1,555 $ 196,907 200,000 - (200,000) - 19,633 19,633 - 24,964 8,000 9,701 1,701 9,520 11,000 10,615 (385) 24,115 1,100 3,327 2,227 302,400 455,918 261,016 (194,902) 557,906 10,000 10,000 - 9,600 531,367 211,330 320,037 217,616 - - -1,135 22,200 19,720 2,480 17,617 563,567 241,050 322,517 245,968 (107,649) 19,966 127,615 311,938 (19,633) (19,633) - (24,964) (19,633) (19,633) - (24,964) (127,282) 333 127,615 286,974 457,873 457,873 2,741 170,899 $ 330,591 $ 458,206 $ 127,615 $ 457,873 45 CITY OF CAPE CANAVERAL, FLORIDA TRUST FUNDS Trust funds are used to account for assets held by the City in a trustee capacity. Expendable Trust Funds: Special Law Enforcement Trust Fund This fund is used to account for the receipt and disbursement of confiscated contraband property proceeds from certain criminal cases pursuant to Florida Statutes. Pension Trust Fund: Defined Contribution Pension Plan To account for the accumulation of resources to be used for retirement payments to City employees. 47 CITY OF CAPE CANAVERAL, FLORIDA All Trust Funds Combinin.- Balance Sheet September 30, 2002 (With Comparative Totals for 2001) FUND BALANCES Fund balances: Reserved for employees' retirement system $ - $ 1,0.49,892 $1,049,892 $1,051,876 Undesi.-hated 2,195 - 2,195 566 Total fund balances $ 2,195 $1,049,892 $1,052,087 $1,052,442 48 Special Law Totals Enforcement Pension Trust Trust 2002 2001 ASSETS Restricted assets: Cash $ 2,195 $ - $ 2,195 $ 566 Due from other funds - - - 18,081 Investments - 1,049,892 1,049,892 1,033,795 Total assets $ 2,I95 $1,049,892 $1,052,087 $ 1,052,442 FUND BALANCES Fund balances: Reserved for employees' retirement system $ - $ 1,0.49,892 $1,049,892 $1,051,876 Undesi.-hated 2,195 - 2,195 566 Total fund balances $ 2,195 $1,049,892 $1,052,087 $1,052,442 48 CITY OF CAPE CANAVERAL, FLORIDA Expendable Trust Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended September 30, 2002 (With Comparative Totals for 2001) 49 Special Law Enforcement_ Trust Variance Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Miscellaneous revenues $ 1,050 $ 2,229 $ 1,179 $ 566 Total revenues 1,050 2,229 1,179 566 Expenditures: Current: Public safety 1,616 600 1,016 2,000 Contingency - - - - Total expenditures 1,616 600 1,016 2,000 Excess (deficiency) of revenues over (under) expenditures (566) 1,629 2,195 (1,434) Fund balance, beginning of year 566 566 - 566 Fund balance, end of year $ - $ 2,195 $ 2,195 $ (868) 49 CITY OF CAPE CANAVERAL, FLORIDA GENERAL FIXED ASSETS ACCOUNT GROUP This account group is used to account for all property and equipment of the City except for those accounted for in Proprietary Funds. 51 CITY OF CAPE CANAVERAL, FLORIDA Schedule of General Fixed Assets - By Source September 30, 2002 General fixed assets: Land $ 2,494,562 Buildings 1,121,415 Improvements other than buildings 4,226,156 Machinery and equipment 2,245,553 Construction in progress 81,754 Total general fixed assets $ 10,169,440 Investment in general fixed assets by source: General Fund $ 3,429,665 Special Revenue Fund 1,799,336 Capital Projects Fund 3,593,314 Special Assessments 830,756 Expendable Trust Fund 29,388 Donations 486,981 Total investment in general fixed assets $ 10,169,440 53 CITY OF CAPE CANAVERAL, FLORIDA Schedule of Changes in General Fixed Assets - By Source Year Ended September 30, 2002 Total General fixed assets, September 30, 2002 S 9,694,186 Additions: General Fund 735,041 Special Revenue Fund 26,015 Capital Projects Fund 21,532 Expendable Trust Fund - Donations - Total additions 782,588 Total balances and additions 10,476,774 Deductions: General Fund 304,134 Special Revenue Fund 3,200 Capital Projects Fund - Total deductions 307,334 General fixed assets, September 30, 2002 $10,169,440 54 Improvements Machinery Construction Other Than and in Land Buildings Buildings Equipment Progress $ 2,494,562 $ 1,115,014 $ 4,125,368 $ 1,959,242 $ - 8,297 82,863 583,659 60,222 - 26,015 - - - - 21,532 - 8,297 108,878 583,659 81,754 2,494,562 1,123,311 4,234,246 2,542,901 81,754 - 1,896 7,290 294,948 - - Soo 2,400 - - 1,896 8,090 297,348 - $ 2,494,562 $ 1,121,415 $ 4,226,156 $ 2,245,553 $ 81,754 55 CITY OF CAPE CANAVERAL, FLORIDA Schedule of Changes in General Fixed Assets - By Function and Activity Year Ended September 30, 2002 Balances Balances 10/1/2001 Additions Deductions 9/30/2002 General government: Legislature $ 6,250 $ - $ - $ 6,250 Planning and zoning - 10,500 - 10,500 Finance/Administration 231,479 36,918 7,491 260,906 237,729 47,418 7,491 277,656 Public safety: Police 724,340 120,144 - 844,484 Fire 760,440 347,627 264,303 843,764 Building department 35,710 39,180 - 74,890 Code enforcement - 5,445 - 5,445 Inspection 31,059 - - 31,059 1,551,549 512,396 264,303 1,799,642 Highway and streets: Street 2,888,321 144,630 21,327 3,011,624 Beautification 383,942 26,015 - 409,957 3,272,263 170,645 21,327 3,421,581 Culture/Recreation: Library 113,455 - - 113,455 Parks 2,801,115 37,723 14,213 2,824,625 2,914,570 37,723 14,213 2,938,080 Nondepartmental: Nondepartmental 1,718,075 14,406 - 1,732,481 Totals $ 9,694,186 $ 782,588 $ 307,334 $10,169,440 56 CITY OF CAPE CANAVERAL, FLORIDA Schedule of General Fixed Assets - By Function and Activity Year Ended September 30, 2002 Public safety: Police Improve- 71,918 - 772,566 ments Machinery - - other than and 843,764 Land Buildings_ Buildings _ Equipment Total General government: 74,890 Code enforcement - Legislature $ - $ - - $ 6,250 $ 6,250 Planning and zoning - - - 10,500 10,500 Finance/Administration - 68,421 - 192,485 260,906 - 68,421 - 209,235 277,656 Public safety: Police - 71,918 - 772,566 844,484 Fire - - - 843,764 843,764 Building department - - - 74,890 74,890 Code enforcement - - - 5,445 5,445 Inspection - - 31,059 31,059 - 71,918 - 1,727,724 1,799,642 Highway and streets: Street - 2,209 2,800,647 208,768 3,011,624 Beautification - - 394,371 15,586 409,957 - 2,209 3,195,018 224,354 3,421,581 Culture/Recreation: Library - 80,455 - 33,000 113,455 Parks 1,921,036 173,223 682,676 47,690 2,824,625 1,921,036 253,678 682,676 80,690 2,938,080 Nondepartmental: Nondepartmental 573,526 733,772 425,183 - 1,732,481 Totals $2,494,562 $1,129,998 $4,302,877 $2,242,003 $10,169,440 57 CITY OF CAPE CANAVERAL, FLORIDA Statistical Section The Statistical Schedules differ from the other financial statement presentations because they generally disclose more than one fiscal year. They also present non - accounting data such as social and economic data and financial trends of the City. The City's Charter does not state a legal debt margin, therefore, a table depicting such has been omitted. 59 CITY OF CAPE CANAVERAL, FLORIDA Table 1 General Fund Expenditures and Other Financing Uses by Function - Unaudited Last Ten Fiscal Years General Physical Culture Operating Fiscal Govern- Public Trans- Environ- and Capital Transfers Debt Year _ ment Safety portation went Recreation Outlay Out Total (a) ,Service 002 1,032 S2,172,609460,119 $723,030 $223,498 $735,041 S S37,402 S4,802,'731 2001 407,517 2,057,423 432,827 685,710 186,763 435,441 - - 4,205,681 2000 490,616 1,935,314 374,001 667,487 169,869 6,088 359,234 - 4,002,609 1999 382,319 1,817,705 343,230 622,192 157,150 808,800 185,654 - 4,317,050 1998 347,990 1,714,001 341,274 682,105 162,934 24,388 184,117 - 3,456,809 1997 310,688 1,534,432 307,959 671,464 161,864 1,084,156 402,946 - 4,473,509 1996 343,373 1,495,126 300,952 668,712 159,691 65,586 144,532 - 3,177,972 1995 33I,671 1,299,390 281,546 679,221 147,917 13,448 63,791 - 2,816,984 1994 316,300 1,358,991 299,649 634,603 140,829 12,521 65,017 - 2,827,910 1993 354,046 1,241,362 281,826 632,091 136,335 44,958 24,524 - 2,715,142 GENERAL FUND EXPENDITURES AND OTHER USES BY FUNCTION - 2002 Capital Outlay Public Safety 15% 45% Debt Service I% General Government 9% Culture & Physical Transportation Recreation Environment 10% 5% 15% Notes: (a) This schedule represents expenditures and other Financing uses of the General Fund. 60 CITY OF CAPE CANAVERAL, FLORIDA Table 2 General Fund Revenues and Other Financing Sources - Unaudited Last Ten Fiscal Years Licenses Charges Fines Miscel- Operating Fiscal and lntergovern- for and laneous Transfers Year Taxes Permits mental Services Forfeitures Revenue in Total (a) 2002 $2MI,813 S50;331 S786,317 $946,714 $126,561 $59,431 $132,633 S5,0037M 2001 2,065,382 308,429 831,068 859,790 138,371 185,630 99,964 4,488,634 2000 1,840,953 230,789 756,004 812,929 109,250 132,144 89,894 3,971,963 1999 1,802,310 223,555 1,455,712 824,400 103,040 168,305 65,034 4,642,356 1998 1,748,032 149,552 550,146 817,366 100,273 117,504 54,324 3,537,197 1997 1,589,198 166,701 1,728,905 890,301 100,223 86,821 82,022 4,644,171 1996 1,560,314 188,759 586,854 744,405 67,053 86,923 60,691 3,294,999 1995 1,422,082 100,922 511,425 728,783 49,124 81,271 40,000 2,933,607 1994 1,394,946 130,751 499,971 710,141 64,425 65,836 56,800 2,922,870 1993 1,319,013 92,612 504,126 689,541 44,695 57,647 35,000 2,742,634 Taxes 47% Operating Transfers in Miscellaneous 3% Revenues 1% Licenses and Permits Charges for Services 11% Interg°Vern- Fines and Forfeitures 19% mental 3% 19% Notes: (a) This schedule represents revenues and other financing sources of the General Fund. 61 CTrY OF CAPE CANAVERAL, FLORIDA Property Tax Levies and Collections - Unaudited Last Ten Fiscal Years Table 3 f Tax Levies (approximates collections) Data source: Brevard County Tax Collector Notes: (a) Includes current tax collections, delinquent tax collections and penalties on such. (b) Represents the difference between current tax levy and total tax collections as defined above. 62 Total Ratio of Total Fiscal Tax Total (a) Net (b) Tax Collections Year Levy _ Collections Uncollected to Total Tax Levy 12002 933,694 5 863,397 5 70,297 0 2001 790,454 775,610 14,844 98% 2000 646,896 616,064 30,832 95% 1999 568,768 556,048 12,720 98% 1998 513,044 491,088 21,956 96% 1997 486,955 483,569 3,386 99% 1996 439,042 418,220 20,822 95% 1995 454,805 437,589 17,216 96% 1994 463,780 441,721 22,059 95% 1993 471,121 453,954 17,167 96% f Tax Levies (approximates collections) Data source: Brevard County Tax Collector Notes: (a) Includes current tax collections, delinquent tax collections and penalties on such. (b) Represents the difference between current tax levy and total tax collections as defined above. 62 CITY OF CAPE CANAVERAL, FLORIDA Table 4 Assessed and Estimated Actual Value of Taxable Property - Unaudited Last Ten Fiscal Years $600 $500 Coll c $400 $300 $200 $100 VALUE OF TAXABLE PROPERTY; 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 ■ Taxable Value ® Estimated Actual Value Data source: Brevard County Property Appraiser (Form DR-403AM) Notes: (a) Assessed Value includes taxable and exempt property from 1991 - 1992 63 Ratio of Fiscal Assessed Total Value Assessed Taxable Property Assessed to Year Real and Personal Property Real and Personal Property Actual Value 0 2001 462,257,236 404,218,846 87.4% 2000 438,439,602 386,448,002 88.1% 1999 430,900,990 365,374,360 84.8% 1998 407,558,484 352,402,764 86.5% 1997 398,631,166 344,184, 916 86.3% 1996 391,376,959 338,098,549 86.4% 1995 379,676,926 327,840,666 86.3% 1994 372,623,717 322,307,062 86.5% 1993 (a) 325,124,507 n/a $600 $500 Coll c $400 $300 $200 $100 VALUE OF TAXABLE PROPERTY; 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 ■ Taxable Value ® Estimated Actual Value Data source: Brevard County Property Appraiser (Form DR-403AM) Notes: (a) Assessed Value includes taxable and exempt property from 1991 - 1992 63 CITY OF CAPE CANAVERAL, FLORIDA Table 5 Property Tax Rates - Direct and Overlapping Governments - Unaudited Last Ten Fiscal Years TAX RATES FOR RESIDENT'S OF THE CITY OF CAPE CANAVERAL 20 19 18 d 17 cd 16 15 H 14 l3 1z 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Data source: Brevard County Tax Collector I Mills $1,000 of assessed valuation) Fiscal _ Year City- County Schools Total _ _ 2002 2.7064 6.3623 IM 17.67,37 2001 2.0004 6.1381 8.6740 16.8125 2000 1.6739 6.0404 8.908 16.6223 1999 1.6539 6.2017 9.578 17.4336 1998 1.6139 6.2604 9.459 17.3333 1997 1.4905 6.2926 9.662 17.4451 1996 1,4727 6.3114 9.195 17.4451 1995 1.4110 6.5237 9.215 17.1497 1994 1.4264 6.4534 9.002 16.8818 1993 1.4689 6.5664 8.823 16.8583 TAX RATES FOR RESIDENT'S OF THE CITY OF CAPE CANAVERAL 20 19 18 d 17 cd 16 15 H 14 l3 1z 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Data source: Brevard County Tax Collector I CITY OF CAPE CANAVERAL, FLORIDA Table 6 Principal Taxpayers - Unaudited !ember 30, 2002 Percentage Tax of Total Assessed Assessed LaxELers as of 1/l/02 Value Cocoa Beach Motel Two, Inc. $ 18,004 2.60% Cape Canaveral Joint Venture 12,803 1.85% Oceanside Village Apartments LLC 8,602 1.24% S. Craig Wakefield, Trustee 8,074 1.17% Palms East Partners Ltd. 8,002 1.1611/o Solana Lake, Inc. 7,108 1.03% Johnson Controls World Services 6,001 0.87% AJT Ltd. 5,201 0.75% Canaveral Properties LLC 4,601 0.66% Vacation Ownership of Cape Canaveral 3,940 0.57% Total $ 82,336 11.90% TAXES ASSESSED' TO PRINCIPAL TAXPAYERS soba Vacation C Beecati nevelopme� lac. Ownership of Mold Two, hw. 101% Cape Cwwfelal 2l% S% ]ohm Caahols Wodd Services S. crag walm 7% Twee 100/0 Cape Caaavend laird Vero= Palms Cwmveat O de Vfflw i'Al 15°h Payers LtU d. A]'F' Ltd 10% Wopews LLC 6% Apwftnmts LLC 6% 9% Date source: Brevard County Tax Collector's Office 65 CITY OF CAPE CANAVERAL, FLORIDA Table 7 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - Unaudited Last Ten Fiscal Years 40 NET BONDED DEBT PER CAPITA 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Sources: (a) University of Florida, Bureau of Economic and Business Research Population Program 1994 - Brevard County Demographics Office 1990 - U.S. Census Bureau, 1990 Census (b) Brevard County Property Appraiser 66 Ratio of Net Net Bonded Debt Net Bonded Fiscal Assessed Bonded to Assessed Debt Per Year Population (a) Value (b) Debt_ Value Capita 9,161 S 451,745191 3 0.00% 0.00 2001 8,941 404,218,846 - 0.00°/a 0.00 2000 8,829 386,498,002 - 0.00% 0.00 1999 8,900 365,374,360 10,000 0.00% 1.12 1998 8,731 352,402,764 10,000 0.00% 1.15 1997 8,492 344,184,916 10,000 0.000/0 1.18 1996 8,399 338,098,549 10,000 0.000/0 1.19 1995 8,400 327,840,666 67,000 0.02% 7.98 1994 8,337 322,307,062 132,000 0.04% 15.83 1993 8,177 325,124,507 204,000 0.06% 24.95 40 NET BONDED DEBT PER CAPITA 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Sources: (a) University of Florida, Bureau of Economic and Business Research Population Program 1994 - Brevard County Demographics Office 1990 - U.S. Census Bureau, 1990 Census (b) Brevard County Property Appraiser 66 CITY OF CAPE CANAVERAL, FLORIDA Table 8 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Unaudited Last Ten Fiscal Years Ratio of Debt Total Total Service to Fiscal General Obligation Debt Debt General Fund General Fund Year Principal Interest Service Expenditures (a) Expenditures RATIO OF DEBT SERVICE TO GENERAL GOVERNMENT EXPENDITURES: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Notes: (a) Represents General Fund expenditures and operating transfers out. 67 " -5 1X2,731o 2001 - - - 4,205,681 0.00 2000 - - - 4,002,609 0.00 1999 - - - 4,317,050 0.00 1998 - - - 3,456,809 0.00 1997 - 1,150 1,150 4,473,509 0.00 1996 57,000 2,127 59,127 3,177,972 1.86 1995 65,000 8,223 73,223 2,816,984 2.59 1994 72,000 11,471 83,471 2,827,910 2.95 1993 69,000 15,884 84,884 2,690,648 3.15 RATIO OF DEBT SERVICE TO GENERAL GOVERNMENT EXPENDITURES: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Notes: (a) Represents General Fund expenditures and operating transfers out. 67 CITY OF CAPE CANAVERAL, FLORIDA Table 9 Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds - Unaudited September 30, 2002 (1) Percentage of Net Debt Debt Applicable City's Share Outstanding to the City of Debt Direct: City of Cape Canaveral Brevard County: General Obligation Debt Recreation District 2 Total direct and overlapping debt $ - 00/0 $ - 92,948,913 2.47% 2,295,838 92.9U.913 S 2 Data Source: Brevard County Finance Department (Statistical Data Tables) (1) Based on 2001 taxable assessed valuation. 68 CITY OF CAPE CANAVERAL, FLORIDA Table 10 Revenue Bond Coverage - Server System - Unaudited Last Ten Fiscal Years COVERAGE RATIO 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Notes: (a) Total pledged revenues (b) Total operating expenses net of depreciation (c) Debt service requirements equal the current year's principal and interest payments (d) Required coverage is 1.25 for Bonds (1.15 and 1.20 for State Loans) 69 (b) Direct Operating Net Revenue (a) Expenses Available (c) Fiscal Gross (Excluding For Debt Debt Service Requirements (d) Year Revenues Depreciation) Service Principal Interest Total Coverage - 2001 2,578,413 1,418,749 1,159,664 406,449 242,934 649,383 1.79 2000 2,850,717 1,281,320 1,569,397 394,322 255,061 649,383 2.42 1999 2,824,872 1,199,403 1,625,469 382,559 266,824 649,383 2.50 1998 2,662,902 1,182,202 1,480,700 372,704 277,406 650,110 2.28 1997 2,694,228 1,011,435 1,682,793 413,306 186,792 600,098 2.80 1996 2,291,047 921,944 1,369,103 174,264 108,923 283,187 4.83 1995 1,465,280 864,632 600,648 90,000 3,445 93,445 6.43 1994 1,736,483 928,616 807,867 90,000 5,564 95,564 8.45 1993 1,460,954 863,183 597,771 85,000 12,390 97,390 6.14 COVERAGE RATIO 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Notes: (a) Total pledged revenues (b) Total operating expenses net of depreciation (c) Debt service requirements equal the current year's principal and interest payments (d) Required coverage is 1.25 for Bonds (1.15 and 1.20 for State Loans) 69 CITY OF CAPE CANAVERAL, FLORIDA Demographic Statistics - Unaudited Last Ten Fiscal Years Table 11 (c) Fiscal (a) (b) Unemployment Year Population Median Age Rate 2002 9,161 41.2 5.2% 2001 8,941 412 3.9% 2000 8,829 36.7 3.5% 1999 8,900 36.7 3.9% 1998 8,731 36.7 4.6% 1997 8,492 36.7 5.4% 1996 8,399 36.2 6.5% 1995 8,400 36.2 6.4% 1994 8,337 36.2 6.8% 1993 8,177 36.2 7.6% POPULATION (BASE YEAR 1990) 9,400 9,200 9,000 8,800 8,600 8,400 8,200 8,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Data sources: (a) University of Florida (b) Brevard County Growth Management (figures are for Brevard County) (c) Economic Development Commission of Florida's Space Coast, Inc., Federal Department of Labor or Florida ]obs and Benefits 1996 Data Abstract (figures are for Brevard County) 70 CITY OF CAPE CANAVERAL, FLORIDA Table 12 Construction, Property Value and Bank Deposits - Unaudited Last Ten Fiscal Years Commercial Residential (b) (c) Construction (a) Construction (a) Brevard County Real Bank Fiscal # of # of and Personal Property Deposits Year Units Value Units Value Taxable Value (in thousands) 2001 3 636,000 128 23,220,268 16,987,115,227 4,318,000 2000 4 700,338 105 14,494,518 15,956,788,303 4,234,000 1999 7 5,099,735 78 11,186,579 15,068,074,109 4,183,000 1998 5 2,672,752 6 739,002 14,629,726,807 3,600,766 1997 6 767,694 61 7,444,906 14,223,813,299 3,089,758 1996 13 10,580,640 123 11,613,974 13,985,407,758 3,139,118 1995 15 1,103,440 16 1,675,885 13,931,474,068 3,120,132 1994 43 1,268,457 114 10,217,941 13,674,271,784 3,092,501 1993 31 1,804,371 95 2,974,278 13,508,682,709 3,005,789 COMMERCIAL AND RESIDENTIAL BUILDING PERMITS 55 50 45 40 m 35 25 20 a 15 10 5 0 1993 1994 1995 19% 1997 19% 1999 2000 2001 2002 ■ Conrrllerical ■ Residential Data sources: (a) City of Cape Canaveral Building Department (b) Brevard County Tax Collector (c) Florida Bankers Association (figures are for Brevard County) 71 CITY OF CAPE CANAVERAL, FLORIDA Table 13 Miscellaneous Statistics - Unaudited 2.8 miles Member 30, 2002 9.5 miles Reclaim Lines 11.3 miles Date of Incorporation May 16, 1963 Form of Government Council - Manager Area/Square Miles 1.9 sq. miles Miles of Streets: Paved 16 Unpaved .2 miles Street Lights 540 Fire Protection: Number of stations I Number of firefighters (volunteer) 35 Number of firefighters (paid) 17 Police Protection: Number of stations I Number of police officers 19 Recreation: Parks 21.29 acres Number of special use facilities 2 Number of neighborhood parks 4 Undeveloped land, dedicated for recreation use 15.66 acres Sewers: Gravity Sewer mains 16.5 miles Force mains 2.8 miles Storm sewers 9.5 miles Reclaim Lines 11.3 miles Number of reuse customers 577 Number of consumers (sewer) 7,445 Schools: Elementary I Building Permits Issued 803 Number of City Employees (excluding police officers and firefighters) 50 72 CITY OF CAPE CANAVERAL, FLORIDA Table 14 Miscellaneous Statistics - Salaries and Bond Coverage of Principal Officials - Unaudited September 30, 2002 Elected Officials Mayor/Commissioner Commissioners Appointed Officials City Manager Director of Finance Director of Public Works/City Engineer Director of Parks and Recreation City Clerk Director of Building (a) Annual Bond Salaries Coverage $ 3,200 $ - 2,400 - 67,304 49,225 25,000 55,771 - 52,243 - 41,111 48,810 - Data source: Annual salaries - December 31, 2002 W -Ts Notes: (a) These coverages are under the Public Employee Blanket Bond and the Treasurer's Bond. An additional $500,000 in coverage is executed under the Public Errors and Omissions Policy (Florida League of Cities - Municipal Trust). 73 COMPLIANCE REPORTS AND RESPONSES 74 Bill Bray, Beck & Koetter CERTIFIED PUBLIC ACCOUNTANTS, P.A. 7351 Office Park Place, Suite A Melbourne, Florida 32940 (321) 751-6270 FAX (321) 751-1385 410 Indian River Avenue, Suite Titusville, Florida 32782 (321) 269-0732 FAX (321) 264.0925 INDEPENDENT Al DITOR'S REPORT ON 39 South Atlantic Avenue, Suite A COMPLIANCE AND ON INTMNAL CONTROL Post Office Box 321057 Cocoa Beach, Florida 32932-1057 OVER FINANCIAL REPORTING (321) 783-8321 BASED ON AN AUDIT OF FINANCIAL STATEMENTS FAX (321) 799-0925 PERFORMED IN ACCORDANCE WITH GOVERMWENT A UDITING ST4NDARDS The Honorable Mayor and City Council City of Cape Canaveral, Florida We have audited the general purpose financial statements of City of Cape Canaveral, Florida as of and for the year ended September 30, 2002, and have issued our report thereon dated January 29, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Xuditing Standards, issued by the Comptroller General of the United States. and the Rules of the Auditor General of the State of Florida. Compliance As part of obtaining reasonable assurance about whether the City of Cape Canaveral, Florida's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions — of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests — disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards- Intemal Control Over Financial Reporting In planning and performing our audit, we considered the City of Cape Canaveral, Florida's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in _ which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements tieing audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting that we have reported to management of the City of Cape Canaveral, Florida, in a separate letter dated January 29, 2003. — This report is intended solely for the information and use of management, the City Council, the Office of the Auditor General of the State of Florida, and other funding agencies. However, this report is a matter of public record and its distribution is not limited. f� Melbourne, Florida January 29, 2003 75 CITY OF CAPE CANAVERAL, FLORIDA MANAGEMENT COMMENTS Year Ended September 30, 2002 76 Bray, Beck & Koetter CERTIFIED PUBLIC ACCOUNTANTS, P.A. MANAGEMENT LETTER 7351 Office Park Place, Suite A Melbourne, Florida 32940 (321) 751-6270 FAX (321) 751-1385 410 Indian River Avenue, Suite A Titusville, Florida 32782 (321)269-0732 FAX (321) 264-0925 39 South Atlantic Avenue, Suite A Post Office Box 321057 Cocoa Beach, Florida 32932-1057 (321)783-8321 FAX (321) 799-0925 The Honorable Mayor and City Council City of Cape Canaveral, Florida In planning and performing our audit of the general purpose financial statements of the City of Cape Canaveral, Florida, for the year ended September 30, 2002, we considered the City's internal control over financial reporting to plan our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, during our audit, eve noted certain matters involving the internal control and its operation. Our comments and recommendations on these matters as well as other rnatters required to be reported to state agencies are included in the following sections for your consideration. This letter does not affect our report dated January 29, 2003, on the financial statements of the City of Cape Canaveral, Florida. We will review the status of these comments during our next audit engagement. Our comments and recorurnendations, all of which have been discussed with appropriate members of management, are intended to improve the internal control structure or result in other operating efficiencies. I'Ve will be pleased to discuss these comrnpnts in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. �,� �� 0 4�4�40 d& Melbourne, Florida January 29, 2003 77 Management Letter Points Prior Year Comments Not Repeated in the Current Year Purchasing During the prior year, some purchases that ranged between $500 to $5,000 were missing the required approval of the City Manager. We commend the City on the measures taken to correct this oversight and controls implemented to ensure necessary approval is obtained. Prior Year Comments Repeated in the Current Year Fine and Forfeiture Receipts As in the prior year, current year cash receipts include monies received from Brevard County, Florida for fines and forfeitures. Due to problems encountered during a computer conversion in 1999, Brevard County has been unable to determine the exact amount of fine and forfeiture monies due to the City and has been distributing these dollars based on an estimate calculated using prior years' distributions until April of this fiscal year. The City has been notified by the County that an overpayment has been distributed to the City during that time in the amount of $89,098. As indicated in prior years' management comment, the City elected to escrow a portion of the fines and forfeitures receipts in anticipation of future adjustments by the County. At the point in time that the City was notified of the overpayment, the escrow account balance was $91,666. The City plans to reimburse the County from the escrow account until the assessment is paid in full, no later than September 30, 2003. GASB 34 Implementation In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No, 34, Basic Financial Statements -and Management's Discussion and 4nalysis- for State and Local Governments. This pronouncement represents a major change in the way governments like the City of Cape Canaveral report their financial information. Some of the most important changes to the financial reporting model include: • Government -wide reporting. In addition to the traditional fund financial statements prepared on the modified accrual basis of accounting, the City will also be required to present financial statements that focus on the overall government, "entity -wide" financial statements prepared on the accrual basis of accounting, similar to private -sector accounting. • Infrastructure reporting and depreciation accounting. For the first time, state and local governments will be required to capitalize infrastructure assets (i.e. roads, bridges, etc.). In addition, governments will be required to compute and report depreciation of capital assets. • Net expense format for entity -wide statement of activities. The new entity -wide statement of activities is designed to report expenses by program, net of related revenue. Based upon fiscal year 2001 revenues, the City of Cape Canaveral will be required to implement GASB 34 beginning with the 2004 fiscal year, although early implementation is encouraged. With such a major overhaul of the financial accounting and reporting standards for state and local governments, it will take a substantial amount of time and effort to prepare for these changes. The accounting systems will have to be redesigned to capture and report new information. Policies and procedures may need to be revised to support the accrual basis of accounting. In this regard, we are pleased to note the City Treasurer has attended specialized courses and has become knowledgeable of these new requirements. 78 Management Letter Points, continued Prior Year Comments Repeated in the Current Year, continued GASB 34 Implementation, continued We recommend the City establish an implementation plan along with a timetable for completion of the various stages. At a minimum, the plan should address the following, education and training of personnel; evaluation of current accounting procedures and systems for compliance with and adaptability to the new standards; methods and processes for calculating accumulated depreciation of capital assets as of the implementation date; and the approach to reporting expenses and revenues by program in the entity -wide financial statements. Current Year Comments Fund Balances The fund balance account represents the amount of financial resources remaining as of the statement date (i.e., the fund's assets minus it liabilities). As the General Fund is the primary operating fund of the City, its fund balance should normally be maintained at a level that would temporarily sustain operations during short-term adverse economic conditions. Essentially, it should provide a contingency for any operating cash flow deficiencies in the short-term and/or provide for unexpected, emergency expenditures. Accordingly, it is common practice and advisable to maintain an operating fund balance at an amount equal to two to three months budgeted expenditures. We believe that an amount approximating a minimum of three -months of average operating expenditures should be considered an absolute minimum fund balance position over the long-term. Presently, based on the City's actual expenditures during the fiscal year ended September 30, 2002, a three-month operating level would amounts to $1,200,683. As of September 30, 2002, the unreserved/undesignated fund balance of the City's General Fund was $2,498,176. At September 30, 2002, total fund balance, which includes reserves and designations increased by $500,322; however, it should be noted that this increase includes $299,953 of other financing source income that is not expected to reoccur in the next fiscal year. We encourage the City to review its policies related to fund balances and consider formally designating a portion of the fund balance for emergencies and other unforeseen purposes. In addition, we recommend that a policy be developed regarding the use of unreserved fund balance. Capital Asset Capitalization Policy As the City's finance department prepares for the implementation of GASB Statement No. 34, the staff has invested time and energy in the update and maintenance of the General Fixed Assets detail listing. Once GASB Statement No. 34 is implemented, the recording and tracking of capital assets is expanded to include the calculation and recording of depreciation. We noted that purchases of "small dollar" items were included in the asset listing and in the current year's capital outlay accounts. The City's policies and procedures provide for all equipment having a value of at least $500 and an expected life of at least twelve months shall be defined as a fixed asset. Currently, Florida Statute 274.02 requires that assets costing $750 or more be capitalized and carried in inventory. We encourage the City to consider evaluation of its current capitalization policy to determine whether or not an increase in the capital purchase floor is desired. 79 OTHER ITEMS REQUIRED TO PE REPORTED PURSUANT TO THE RULES OF THE AUDITOR GENERAL Prior Year Recommendations Reconunendations made in the proceeding annual audit have been followed. Investments The investment activity of the City is in compliance with Section 218.415(15), Florida Statutes, governing the types of authorized investments and with the City's written investment policy. Legal Authority The City of Cape Canaveral, Florida, (City), was created pursuant to Chapter 73-129, Laws of Florida, in 1962. Component units include the Beautification Board and the Library Fund both of which are composed of members appointed by City Council and included within the City's Special Revenue Funds. All management, administrative and internal controls related to these funds are handled exclusively by the City. Financial Emergency As required by Rules of the Auditor General (Section 10.554(1)(g)(6a)), the scope of our audit included a review of the provisions of Section 218.503(1), Florida Statutes regarding financial emergencies. In connection with our audit, we determined that the City is not in a state of financial emergency as a consequence of the conditions described in Section 218.503(1), Florida Statutes. Annual Financial Report The City's Annual Financial Report for the year ended September 30, 2002, required to be filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual audit report for the same period. Financial Condition Assessment Procedures As required by the rules of the Auditor General (Sections 10.554(g)(6c) and 10.556), we applied financial condition assessment procedures as of the year ended September 30, 2002. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by the same. Other Our audit did not disclose any further items that would be required to be reported under the Rules of the Auditor General, Chapter 10.554. EIC CITY OF CAPE CANAVERAL City of Cape Canaveral RESPONSE TO THE AUDITOR'S COMMENTS AND RECOMMENDATIONS FOR THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING SEPTEMBER 34, 2002 PRIOR YEAR COMMENTS - UNRESOLVED Fine and Forfeiture Receipts The City is amortizing amounts held in escrow over the course of fiscal year 2002/03 until the overpayment is reimbursed in full, no later than September 30, 2003. Revenue continues to be reported at actual values. GASB 34 Implementation The Finance Department continues to acquire education concerning GASB 34. We will work with the City's auditors to prepare a formal implementation plan and timetable for completion of the various tasks associated with compliance. Many of the procedures necessary have already been adopted. CURRENT YEAR COMMENTS Fund Balances The City is currently working on a Fund Balance Policy that would provide for emergencies and also provide the necessary guidelines as to the further use of Fund Balance in excess of the required emergency funding. It is also our intent, within the policy, to provide a framework for the maintenance of the fund balance. Capital Asset Capitalization Poliev Historically the City has followed the State in their requirements concerning Fixed Assets. The increase from $500 to $750 will provide a more realistic capitalization threshold for assets expected to last longer than twelve months. The City will continue to follow the State Statutes concerning the capitalization policy. A listing of all assets currently recorded in Fixed Assets that fall below the increased level will be provided to Council for removal approval. This will be completed prior to implementation of GASB 34, 105 Polk Avenue • Post Office Box 326 • Cape Canaveral, FL 32920-0326 81 Telephone (321) 868-1220 • FAX (321) 799-3170 • www.fcn.state.fl.us/cape e-mail: ccapecanaveral@cfl.rr.com Meeting Type: Regular Meeting Date 03-1"3 AGENDA Pleading Considerations item 4 No. I also would recommend that the stormwater utility reimburse the general fund once billing starts in January 2004. AGENDA REPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: CONSIDERATION: ASSOCIATES FOR BASIN DEPT./DIVISION: PUBLIC WORKS DESIGN/BUILD PROPOSAL FROM STOTTLER, STAGG & THE N. RIDGEWOOD AVENUE STORMWATER DETENTION Requested Action: City Council consider approval of the designtbuild proposal from SSA for the N. Ridgewood Avenue stormwater detention basin in the amount of $37,000. Summary Explanation & Background: City Council requested SSA submit a design/build proposal for the above-mentioned project. The original design proposal was $13,200 (see attached). I also would recommend that the stormwater utility reimburse the general fund once billing starts in January 2004. Please advise. Exhibits Attached: SSA Design/Build Proposal dated 03-11-03; SSA Design Proposal dated 02-17-03 City Man ffice Department PUBLIC WORKS cape- 1my@oc encs\a c ancillmeeiznq\2003\03-18-03\ssa.doc March 11, 2003 Mr. Bennett Boucher City Manager City of Cape Canaveral 105 Polk Avenue Cape Canaveral, FL 32920-0326 RE: SSA Fee Proposal for Ridgewood Right -of -Way Detention Basin Design/Build Dear Bennett: SSA Per the City Council request, Stottler Stagg & Associates, Architects, Engineers, Planners, Inc. (SSA) is pleased to present our fee proposal for a design/build of a detention basin south of Harbor Drive/Ridgewood Avenue. The proposed detention basin would be located in the Harbor Drive/Ridgewood Avenue right-of-way, and would typically be a dry basin with collected stormwater percolating into the sandy soils. SSA's specific Scope of Services include the following: SSA SCOPE OF SERVICES Task 1 — Field Surveys SSA will locate the right-of-way in the field and provide topographic and location surveys in the immediate design area (approximately 0.5 acres). A concept plan of the detention basin will be prepared. Task 2 — Preliminary Designs SSA will first meet with the City's Public Works staff and review the conceptual plan for the proposed detention basin. Maintenance considerations as well as hydraulic concepts will be discussed. Preliminary drawings will be furnished to the City for review along with hydrologic modeling for the detention basin. Upon approval of the City, SSA will prepare final drawings. Task 3 — Final Designs SSA will prepare final drawings for the detention basin. Task 4 — Permit Application SSA will meet with the St. Johns River Water Management District (SJRWMD) at an early stage of the design phase. SSA will prepare the SJRWMD application (exemption S']'OTFLER S'I:AGG & ASSOCIAXFS ARCEI I'ECTS • FNGINEERS • PIANNERS, INC. 8680 North Atlantic .Avenue F. O. Box 1630 Cape Canaveral, Florida 32920 Tel 321-783-1320 Fax 321-783JO65 lac #fL\C000.32q #P:Y>a00NR2, tLPI(C7{7 A' cl jAcwAproiectslpropos0cdy of cape eanamaA2003 prcposalslp-bannett revised ridgewood r detention doc Mr. Bennett Boucher March 11, 2003 Page 2 SSA Fee Proposal — Ridgewood R(W Detention Basin request) and the City will pay all application fees. SSA's application work will include one (1) request for additional information from the SJRWMD. Task 5 - Construction The SSA Design/Build Team will construct the detention basin. No irrigation is proposed for this system and stabilizing plantings will reflect (xeric) or dry/sand dune plantings. The designs of the basin will reflect shallow curvilinear shapes that could be added to at a later date (by Public Works) as a sit down park area - SCHEDULES AND FEES Schedules: Upon receipt of a City of Cape Canaveral Purchase Order SSA complete Tasks 1 and 2 within twenty (20) working days. Final schedules will be issued following the City's review. Fees: SSA will perform the Design/Build project for a lump sum fee of $37,000 Print costs, other than the four (4) sets, will be billed to the City. Fees will be billed monthly based on a percentage of work completed and payment will be due within fifteen (15) days of receipt. Additional work authorized in writing by the City that is not specifically included in this proposal, such as follow-up coordination work with land owners, additional City meetings, etc., will be deemed as additional services upon City's written authorization to proceed and will be billed at SSA's standard hourly rates or negotiated as a lump sum prior to beginning work. Out-of-pocket expenses for hourly work and additional printing will be billed with a fifteen percent (15%) mark-up. Compensation rates are based on ordinances, regulations and procedures in force on the execution date of this Agreement by the appropriate governing bodies having jurisdiction over the project. Any significant modification in these ordinance, regulations, procedures, etc. shall be justification for re -negotiation for the compensation due to the Consultant for the work involved. It is understood that any and all professional liabilities incurred by SSA throughout the course of rendering professional services on this project shall be limited to a maximum of the net fee received by SSA, not including reimbursable expenses and sub - consultants, for all services rendered on the project. Should it become necessary to obtain a third party to collect our fees for services, the City hereby agrees to pay all costs of such collections including Attorney's fees. The City and SSA respectively bind themselves, their partners, successors, assigns and legal representative to the other party to this Agreement and to the partners, successors, assigns, and legal representatives of such other party with respect to all j:kivillpra{ectsl;vropasalkAy of cape caoaveran2993 prnpnsalslp-bnnnell revised r0gewood r -w delention.doo Mr. Bennett Boucher March 11, 2003 Page 3 SSA Fee Proposal- Ridgewood R/W Detention Basin covenants to this Agreement. Neither the City nor SSA shall assign, sublet or transfer any interest in this Agreement without the written consent of the other. The terms and conditions of this proposal are effective through May 15, 2003. Acceptance after this date may necessitate increased fees or altered conditions. Bennett, your authorization of this proposal can be accomplished by the appropriate City signature below and our receipt of a signed copy. SSA is looking forward to working with the City on this project in Cape Canaveral. Sincerely, Stottler Staaa & Associates neers, Planners, Inc. Bino Campanini Senior Vice Presi ent BC:jls J`. lcivinprofeds4proposaRcdy of cape oanavera]WO03 propu"Wp-bennett reined rid pwood r -w detention_doc ACCEPTANCE: M. TITLE-. DATE: February 17, 2003 Mr. Bennett Boucher City Manager City of Cape Canaveral�� 105 Polk Avenue Cape Canaveral, FL 32920-0326 SSA RE: SSA Fee Proposal for Ridgewood Right -of -Way Detention Basin Design Dear Bennett: Per your request, Stottler Stagg & Associates, Architects, Engineers, Planners, Inc. (SSA) is pleased to present our fee proposal for design of a detention basin south of Harbor Heights Boulevard. The proposed detention basin would be located in the Ridgewood Avenue rights-of-way, and would typically be a dry basin with collected stormwater percolating into the sandy soils. SSA's specific Scope of Services include the following: SSA SCOPE OF SERVICES Task 1 — Field Surveys SSA will locate the rights-of-way in the field and provide topographic and location surveys in the immediate design area. A concept map will be prepared showing City maintenance access to the proposed detention basin and available areas for the detention basin itself. Task 2 — Preliminary Designs SSA will first meet with the City's Public Works staff and review conceptual designs for the proposed detention basin. Maintenance considerations as well as hydraulic concepts will be discussed. Preliminary drawings will be furnished to the City for review along with hydrologic modeling for the detention basin. Upon approval of the City, SSA will prepare final drawings. Task 3 — Final Designs SSA will prepare final drawings for the detention basin- The SSA work will include bid documents which will allow the City to contract out the work. SSA will also include an engineers' estimate of probable construction costs. STOTT'LER S'lA(..r(;r & ASSOCIATES A CHrI'E;C.'TS - ENGINEERS v PLANNERS,INC. ,4ri+3U Nualh Athinti .:lvemie R 0. Box 1630 (:ape Canavond, Florida 329'L0 Tel 321-783.1320 Fax 321-7W(065 7065 Lac. MA"00324! #EBUOU0762 4LEi00j7 DO j:k6WOjech%propoOK* of cape car moU003 proposalalp-bemen ridperood r -W detetipn.doc Mr. Bennett Boucher February 17, 2003 Page 2 SSA Fee Proposal - Ridgewood R/W Detention Basin Task 4 - Permit Application SSA will meet with the St. Johns River Water Management District (SJRWMD) at an early stage of the design phase to explore an exemption for this work. If this cannot be issued by the SJRWMD, a minor construction permit will be pursued by SSA. SSA will prepare the SJRWMD application and the City will pay all application fees. SSA's application work will include one (1) request for additional information from the SJRWMD. Task 5 - Construction Services (OPTIONAL TASK) If requested by the City, SSA will provide a construction services proposal following the completion of the drawings and SJRWMD permit. SCHEDULES AND FEES Schedules: Upon receipt of a City of Cape Canaveral Purchase Order SSA complete Tasks 1 and 2 within twenty (20) working days_ Final schedules will be issued following the City's review. Fees: SSA will perform Tasks 1 thru 4 for a lump sum fee of $13,200. Print costs, other than the four (4) sets, will be billed to the City. Fees will be billed monthly based on a percentage of work completed and payment will be due within fifteen (15) days of receipt. Additional work authorized in writing by the City that is not specifically included in this proposal, such as follow-up coordination work with land owners, additional City meetings, etc., will be deemed as additional services upon City's written authorization to proceed and will be billed at SSA's standard hourly rates or negotiated as a lump sum prior to beginning work. Out-of-pocket expenses for hourly work and additional printing will be billed with a fifteen percent (15%) mark-up. Compensation rates are based on ordinances, regulations and procedures in force on the execution date of this Agreement by the appropriate governing bodies having jurisdiction over the project. Any significant modification in these ordinance, regulations, procedures, etc, shall be justification for re -negotiation for the compensation due to the Consultant for the work involved. It is understood that any and all professional liabilities incurred by SSA throughout the course of rendering professional services on this project shall be limited to a maximum of the net fee received by SSA, not including reimbursable expenses and sub - consultants, for all services rendered on the project. Should it become necessary to obtain a third party to collect our fees for services, the City hereby agrees to pay all costs of such collections including Attorney's fees. i'fClYpyfOf Bttslprnpasaf¢it)r Of eve camw7RNM pfoposaW ba" ridgewwo o -w dolaRun.dce Mr. Bennett Boucher February 17, 2003 Page 3 SSA Fee Proal - Rldgewood R/W Detention Basin The City and SSA respectively bind themselves, their partners, successors, assigns and legal representative to the other party to this Agreement and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants to this Agreement. Neither the City nor SSA shall assign, sublet or transfer any interest in this Agreement without the written consent of the other. The terms and conditions of this proposal are effective through April 15, 2003. Acceptance after this date may necessitate increased fees or altered conditions. Bennett, your authorization of this proposal can be accomplished by the appropriate City signature below and our receipt of a signed copy. SSA is looking forward to working with the City on this project in Cape Canaveral. Sincerely, Stottler Stagg & Associates Architects, Engineers, Planners, Inc. John A. Pekar, PE Vice President JAP: jls j'Wvilp*etsiprapa-WY oisaps caw- M proposak%pbemeq hdpwood r -w dOtHion,dx ACCEPTANCE: BY: TITLE: DATE: Meeting Type: Regular Meeting Date 03-1 M3 AGENDA Heading Ordinances -2nd Reading. Item 5 No. the property owner prior to a certificate of occupancy or final inspection being issued by the City for the subject AGENDA REPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: ORDINANCE NO. 08-2003, AMENDING CODE SECTION NO. 110-475, PROVIDING FOR THE ADVANCE OF FUNDS TO CONSTRUCT REQUIRED SIDEWALKS AND IMPOSE A SIDEWALK IMPACT FEE DEPT./DIVISION: PLANNING & ZONING Requested Action: City Council consider the approval of Ordinance No. 08-2003 establishing provisions for the City to advance fim&s and construct required sidewalks within the City and impose a sidewalk impact fee upon new development abutting the sidewalk. Summary Explanation & Background: This ordinance establishes provisions for the City to construct a sidewalk and impose an impact fee that is payable by the property owner prior to a certificate of occupancy or final inspection being issued by the City for the subject property. The city treasurer will keep track of the sidewalk impact fee rolls that are recorded with the .county. The building official will add the sidewalk impact fee to the final inspection checklist for issuance of a certificate of occupancy. See attached. Exhibits Attached: Ordinance No. 08-2003; Memo from the P&Z Chair dated 02/14/03 City Office, Department PLANNING & ZONING DRAFT 1-21-03 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, RELATING TO SIDEWALK CONSTRUCTION; AMENDING SECTION 110-475 OF THE CAPE CANAVERAL CODE TO INCLUDE PROVISIONS FOR THE CITY TO ADVANCE FUNDS AND CONSTRUCT REQUIRED SmEWALKS WITHIN THE CITY AND THEN IMPOSE A SIDEWALK IMPACT FEE UPON NEW DEVELOPMENT ABUTTING THE SIDEWALK; PROVIDING FOR A METHOD FOR CALCULATING THE IMPACT FEE AND APPORTIONING THE COST OF SIDEWALK CONSTRUCTION TO PROPERTY OWNERS RECEIVING THE BENEFIT OF THE SIDEWALK; PROVIDING FOR SEVERABILITY, REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, INCORPORATION INTO THE CODE, AND AN EFFECTIVE DATE. WHEREAS, Section 110-475, Cape Canaveral Code, currently provides that sidewalks shall be required in conjunction with the construction of any building or development abutting any paved street within the City; and WHEREAS, the City of Cape Canaveral has exclusive control of City streets and sidewalks and has the discretion under the Florida Municipal Home Rule Powers Act to say when and where sidewalks shall be constructed in front of abutting property. § 37.I8, McQuillin on Municipal Corporations; and WHEREAS, the City also has the police power to order abutting landowners to construct a sidewalk; and WHEREAS, the City also has the power to recover the cost of constructing sidewalks from abutting property owners that accrue a benefit from the sidewalk. See, e.g., Chapter 170, Florida Statutes; and WHEREAS, the City Council of the City of Cape Canaveral finds that development of all kinds has an impact and burden on pedestrian travel throughout the City and that sidewalks are instrumental in protecting pedestrians and providing ingress and egress to development; and City of Cape Canaveral Ordinance No. Page 1 of 4 DRAFT 1-21-03 WHEREAS, Section 163.3202(3), Florida Statutes, encourages the use of innovative land development regulations which include provisions such as "impact fees '; and WHEREAS, the City Council also finds that the fees required by this ordinance are necessary to mitigate impacts reasonably attributable to development; and WHEREAS, new land development activity generates pedestrian traffic within the City and it is reasonable for the City to require new development to pay a fair share of the cost of expanding new sidewalks attributable to new development; and WHEREAS, the City Council ofCape Canaveral also recognized that the Florida Legislature has mandated that local government plan comprehensively for future growth and that this regulatory ordinance is consistent with that mandate. See e.g., Ch. 163, Fla. Stat.; and WHEREAS, the City Council ofthe City of Cape Canaveral hereby finds that this Ordinance is in the best interests of the public health, safety, and welfare of the citizens and property owners of Cape Canaveral. NOW, THEREFORE, be it enacted by the City Council of the City of Cape Canaveral, Brevard County, Florida, as follows: Section 1. Incorporation of Recitals. The foregoing recitals are deemed to be true and correct and are hereby fully incorporated herein by this reference. Section 2. Code Amendment. Section 110475, Sidewalks Required, Cape Canaveral Code, is hereby amended as follows: (underlined type indicates additions and strikeout type indicates deletions, while asterisks (* * *) indicate a deletion from the Ordinance of text existing in Section 110475. It is intended that the text in Section 110-475 denoted by the asterisks and set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of this Ordinance). Sec. 114-475 Sidewalks required W Prior to the issuance of a certificate of occupancy or final infection for new development or redevelopment_ thg Cily May, at its discretion and expense, cause the construction of the sidewalk as would otherwiscbe required by this section and under the followingtonditions: Prior to the ,commencement of construction. the City shall provide all owners of real property abutting the proposed sidewalk with thirty (30) days written notice of the CAY:s intent to construct the sidewalk and to impose a future impact fee on the prove y owners for City of Cape Canaveral Ordinance No. Page 2 of 4 DRAFT 1-21-03 the costs of the sid walk. 5aid notice shall provide a general desqdption of thepLoiect an estimated cost, and the date, time, and place of the _City Council meeting at which the proposed project will be authorized. At the a meetin _affected property owners will be allowed an opportunity to be heard. Q Ppan completion of the jdewalk by the City, the City Manager shall certify in writing to the City Council at a_public meeting the cost of constructing the sidewalk. The certification shall proRgrtionatUl allocate the cost of constimetion to each cels of real property that has received a s"ecial benefit from the sidewalk. At least fifteen (15) days Rn notice of the certification hearing shall be pvided to those property owners that may be im osed an im act fee. At the hearing,affegied uMperty owners will be allowed an ppoortunity to be heard. Q The City Council shall approve the certification by resolution. The certificamount shall constitute a sidewalk impact fee for each property. The resolution shall be duly recorded in the public records of Brevard County, Florida and sh laI run with the land. W The sidewalk impact fee shall be paid by the propgM owner prior to a certificate of occupancy or final inspecting issued by the City for the propgM. M Prior to payment of -the sidewalk impact fee, thepropertv owner may_pgtition the City_ Council for a waiver or reduction of the sidewalk impact fee, The amount of any reduction or waiver shall be based on the costs incurred by thero pM owner tp replace or modify the sidewalk caused by imp jerngnting a site plan ARproved by the City. The property owner shill be responsible for repairing, at the owner'§ xpense, any sidewalk which is da caged b� construction activities occurring on the propm. J0 in the event the property owner fails to pay the sidewalk impact fee pursuant to this section the Ci1y shall have the ri t to withhold an certificate of occu an o final inspection for the property. The City shall also have the right_to collect the sidewalk impact fee in any manner provided by, lgw and to ley,y interest at a ma�dmum rate allowed by law and penalties not to exceed twenty-five percent on past due amounts. Simon 3. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this ordinance. City of Cape Canaveral Ordinance No. Page 3 of 4 DRAFT 1-21-03 Section 4. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Council, or parts ofprior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Sec ion 5. Incorporation Into Code. This ordinance shall be incorporated into the Cape Canaveral City Code and any section or paragraph number or letter and any heading may be changed or modified as necessary to effectuate the foregoing. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Council of the City of Cape Canaveral, Florida. ADOPTED by the City Council of the City of Cape Canaveral, Florida, this day of 20W. ATTEST: Rocky Randels, Mayor For Against Bob Hoog Jim Morgan Buzz Petsos Susan Stills, City Cleric Rocky Randels Richard Treverton First Reading: Legal Ad published: Second Reading: Approved as to legal form and sufficiency for the City of Cape Canaveral only: Anthony A. Garganese, City Attorney F\DoeslCity of Cape Can"crallOrdinanccslSidewalk_Avessnent,wpd City of Cape Canaveral Ordinance No. Page 4 of 4 F.` WyCW C"M CMUM Date: February 14, 2003 City of Cape Canaveral To: Bennett Boucher, City Manager Susan Stills, City Clerk From: Bea McNeely, Chairperson, Planning & Zoning Board Re: Proposed Sidewalk Impact Fee Ordinance ------------------------------------------------------------------------------ - The attached proposed ordinance was referred to the Planning & Zoning Board for review and recommendation to City Council. The Board reviewed the proposed ordinance and took no action because City Council establishes fees for sidewalks and the method for obtaining those fees. However, the Board does not object to the adoption of this Ordinance. 105 Polk Avenue - Post Office Box 326 - Cape Canaveral, FL 32920-0326 Telephone: (321) 868-1220 - SUNCOM: 982-1220 - FAX -(321)868-1248 www.myflorida.com/cape - e-mail: ccapecanaveral@1cfl.rr.com Dept. Staff 16. County Impact Fees Paid Yes No 17. Capital Expansion Impact Fees Paid Yes No (Paid Receipt) 18. Sewer Impact Fee Paid Yes No ( Paid Receipt) 19. Sidewalk Impact Fee Paid Yes No (Paid Receipt) (NOTE: ALL IMPACT FEES SHALL BE PAID BY CERTIFIED FUNDS) G:\Admin\FORMS\c.o.s - 2nd page. doc/ revised 3/03 FINAL INSPECTION CHECK -LIST FOR ISSUANCE OF CERTIFICATE OF OCCUPANCY/COMPLETION 1. Architects or Engineers statement that building is built in accordance with approved plans and specifications on file with the City. (See Note Below) Date 2. Engineers or Architects statement that site construction is in accordance with the approved Site Plan and that all construction has been in compliance with applicable codes. (See Note Belowl Date NOTE: The above requirements pertain to multi -family (over four units) and all commercial projects. 3. Plumbing Final Inspector 4. Electrical Final Inspector 5. Mechanical Final Inspector 6. Sidewalk/Driveway Inspector 7. Sewer Connection Inspector 8. All debris removed from site Inspector 9. Approved for Electric Service Inspector 10. Building Permit Final Inspector 11. Approved for Hydrant Service (Contact CCVFD) (if applicable) Inspector or Fire Marshall 12. Dune Crossover (if applicable) Inspector 13. D.O.T. Approval (if applicable) Inspector 14. Recorded Final Plat/Survey Dept. Staff 15. F.E.M.A. Certificate Dept. Staff 16. County Impact Fees Paid Yes No 17. Capital Expansion Impact Fees Paid Yes No (Paid Receipt) 18. Sewer Impact Fee Paid Yes No ( Paid Receipt) 19. Sidewalk Impact Fee Paid Yes No (Paid Receipt) (NOTE: ALL IMPACT FEES SHALL BE PAID BY CERTIFIED FUNDS) G:\Admin\FORMS\c.o.s - 2nd page. doc/ revised 3/03 CITY OF CAPE CANAVERAL APPLICATION FOR CERTIFICATE OF OCCUPANCY/COMPLETION Certificate of Occupancy (Habitable Space) Certificate of Completion (Non -Habitable Space) Application is hereby made by the undersigned for a Certificate of Completion at the below specified premises as reflected on Building Permit Number Street Address: Type and/or Name of Building: Legal Description: Zoning District: Special Conditions: Name of Owner: Mailing Address of Owner: Street Address or P.O. Box City, State and Zip Code Area Code and Telephone Number Owners) Signature Date BUILDING AND FIRE DEPARTMENT APPROVAL Fire Inspector: Building Inspector: Building Official: Meeting Type: Regular Meeting Date 03-18-03 AGENDA Heading Ordinances -0 Reading. Item 6 No. See attached correspondence. AGENDA REPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: ORDINANCE NO. 09-2003, AMENDING SECTION 110-171, PROVIDING FOR FILING REQUIREMENTS AND THE CLARIFICATION OF CODE REQUIREMENTS DEPT./DIVISION: P&ZJGROWTH MANAGEMENT Requested Action: City Council consider at first reading Ordinance No. 09-2003 requiring the owner of a restaurant serving alcohol beverages to file an affidavit at the time of occupational license renewal stating compliance with the 51 % food sale rule. The ordinance also clarifies the building floor plan scale for an applicant. Summary Explanation & Background: See attached correspondence. I recommend approval. Exhibits Attached: Ordinance No. 09-2003; P&Z Chairperson's memo; City Attorney's memo City Man ce Department P&ZJGROWTH MGMT awuau%�V. ec4ng%cuuj\us-la-03105-2003.doC ORDINANCE NO. 09-2003 AN ORDINANCE OF THE CITY OF CAPE CANAVERAL, FLORIDA, AMENDING SECTION 110-171 OF THE CITY CODE; PROVIDING FOR FILING REQUIREMENTS; PROVIDING FOR THE CLARIFICATION OF CODE REQUIREMENTS; PROVIDING FOR THE REPEAL OF PRIORCONFLICTING ORDINANCES AND RESOLUTIONS; PROVIDING FOR INCORPORATION INTO THE CODE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under § 2(b), Art. VIII of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, the City desires to clarify and correct the requirements for obtaining and maintaining a special exception for the sale and consumption of alcoholic beverages; and WHEREAS, the City Council of the City of Cape Canaveral, Florida, hereby finds this ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Cape Canaveral. BE IT ORDAINED by the City Council of the City of Cape Canaveral, Brevard County, Florida as follows: Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by reference as legislative findings and the intent and purpose of the City Council of the City of Cape Canaveral. Section 2. Code Amendment. That Section 110-171 of the Code of Ordinances, City of Cape Canaveral, Florida, is hereby amended as follows: (underlined type indicates additions and strikeottt type indicates deletions, while asterisks (* * *) indicate a deletion from the Ordinance of text existing in Section 110-171. It is intended that the text in Sections 110-171 denoted by the asterisks and set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of this Ordinance). Sec. 110-171. Establishments serving alcoholic beverages. (a) Establishments which shall require a special exception under this chapter by the board of adjustment are those, whether or not licensed by the state department of business and professional regulation, division of alcoholic beverages and tobacco which dispense, sell, serve, store or permit consumption on the premises of alcoholic beverages. In consideration of a special exception City of Cape Canaveral Ordinance No. Page 1 of 4 application, the board of adjustment shall not approve the application unless it is totally consistent with all the conditions as set forth in this subsection and also the following: (2) The establishment of a vendor license by the state division of alcoholic beverages and tobacco permitting on -premises consumption of beverages shall not be located within 2,000 feet of another licensed establishment. The specific distance shall be measured in a straight line, without regard to intervening structures, from the closest exterior structural wall of each such establishment. Further, the establishment shall be in compliance with F.S. chs. 561 through 568. Provided, however, exceptions to this subsection are: C. Restaurants licensed by the state division of alcoholic beverages and tobacco for malt beverages only or malt beverages and wine only, provided the following are complied with: 3. A restaurant licensed under this exception shall not derive less than 51 percent of its gross income from the sale of nonalcoholic beverages and food prepared, sold and consumed on the premises. The obligation to sell 51 percent food and nonalcoholic beverages is a continuing obligation. It is a violation of this zoning code to sell wine and malt beverages granted under this exception unless the restaurant has derived at least 51 percent of its gross income from the sale of food and nonalcoholic beverages. Such percentage shall be determined by calculating the average monthly gross revenue from the sale of food and nonalcoholic beverages for the immediately previous 12 - month period. The owner of the restaurant shall submit at time of occupational license renewal a signed affidavit attesting to the compliance of the required percentage. Occupational licenses shall not be renewed without the filing of such affidavit. Such affidavit shall be binding upon the owner of the restaurant. The owner shall also retain cash register receipts, guest checks and ledgers which may be reviewed at the request of the City to determine compliance. Failure to provide records requested shall be grounds for revocation of its occupational license and special exception granted under this section. The restaurant, if advertised, shall be advertised and held out to the public to be a place where meals are prepared and served. City of Cape Canaveral Ordinance No. 0 9— 2 0 0 3 Page 2 of 4 (3) Package retail sales of alcoholic beverages for carryout, except for beer and wine sales, shall comply with subsections (a)(1), (a)(2)c5., (a)(4), (a)(5)a.3. and (a)(5)a.5. of this section only. (5) Each application for a special exception shall be accompanied by a vicinity map, a site plan map and a building floor plan. c. The building floor plan shall be of a scale appropriate for the establishment, but in no case shall the scale be of no less than one-eighth (1/8 inch equals one W foot inch and shall detail room layouts and exits. Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Council, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Incorporation Into Code. This ordinance shall be incorporated into the Cape Canaveral City Code and any section or paragraph number or letter and any heading maybe changed or modified as necessary to effectuate the foregoing. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this ordinance. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Council of the City of Cape Canaveral, Florida. City of Cape Canaveral Ordinance No. 0 9— 2 0 0 3 Page 3 of 4 ADOPTED by the City Council of the City of Cape Canaveral, Florida, this day of .2003. ATTEST: SUSAN STILLS, City Clerk First Reading: Legal Ad published: Second Reading: Approved as to legal form and sufficiency for the City of Cape Canaveral only: ANTHONY A. GARGANESE, City Attorney F.ULawyerlicffblCityoCCape Caa erallOrdbmmeslSpet_6xccp_Alcoholic_Bev_Amendwpd ROCKY RANDELS, Mayor For Bob Hoog Jim Morgan Buzz Petsos Rocky Randels Richard Treverton City of Cape Canaveral Ordinance No. 0 9— 2 0 0 3 Page 4 of 4 Against City of Cape Canaveral CITY OF GAPE CANAVERAL Date: March 4, 2003 To: Bennett Boucher, City Manager Susan Stills, City Clerk From: Bea McNeely, Chairperson, Planning & Zoning Board Re: Proposed Ordinance Amending Section 110-171, Establishments Serving Alcoholic Beverages ----------------------------------------------------------------------------------------------------------- As suggested by the Board of Adjustments the attached proposed ordinance was referred to the Planning & Zoning Board for review and recommendation to City Council. The proposed ordinance establishes guidelines that the owner of the restaurant shall submit at time of occupational license renewal a signed affidavit attesting to the copliance of the required 51 percentage of sales from food prepared, sold and consumed on premises. The proposed ordinance also clarifies the size of the floor plan that must be submitted with the special exception request. The Board reviewed the proposed ordinance and recommended approval to City Council. 105 Polk Avenue • Post Office Box 326 • Cape Canaveral, FL 32920-0326 Telephone (321) 868-1220 • FAX (321) 799-3170 • www.fcn.state.fl.us/cape e-mail: ccapecanaveral@cfl.rr.com BROWN, WARD, SALZMAN & WEISS, P.A. Attorneys at Law Usher L. Brown' Offices in Orlando, Kissimmee, Debra S. Babb Suzanne D'Agresta° Cocoa & Viera Jeffrey P. Buak Anthony A. Garganese° Todd K. Norman Gary S. Salzman* John U. Biedenharn, Jr. John H. Ward' Joseph E. Blitch Jeffrey S. Weiss Jennifer A. Michael — Michelle A. Reddin Vincent E. Scarlatos 'Board Certified Civil Trial Lawyer "Board Certified Business Litigation Lawyer °Board Certified City, County & Local Government Law February 28, 2003 VIA E -Mail $ U.S. Mail boucher-cape@cfl.rr. com Bennett Boucher, City Manager City of Cape Canaveral 105 Palk Avenue Cape Canaveral, Fl- 32920 Re: Ordinance - Special Exception Alcohol Beverage City of Cape Canaveral - General Our File No.: 513-001 Dear Bennett: Erin J. O'Leary Of Counsel Please find enclosed herewith for your consideration a proposed Ordinance which amends Section 110-171 of the City Code, regarding special exceptions for establishments serving alcoholic beverages. As you will recall, the Board of Adjustment recently tabled an application due to the applicant's failure to comply specifically with the requirements of Section 110-171. During discussion it became obvious there was confusion regarding the minimum scale to be provided for floor plan drawings. The proposed Ordinance makes three modifications to this section. The first is in Section 110-171(a)(2)c.3., and provides specifically when the owner's affidavit should be filed with the City. The Planning & Zoning Board had previously requested this modification. 225 East Robinson Street, Suite 660 • P.O. Box 2873.Orlando, Florida 32802-2873 Orlando (407) 425-9566 Fax (407) 425-9596 • Kissimmee (321) 402-0144 • Cocoa & Viera (865) 425-9566 Website: www.oriandolaw.net - Email: firm@oriandolaw.net Bennett Boucher, City Manager February 28, 2003 Page 2 The second is in Section 110-171(a)(3), and removes an outdated reference. The third is in Section 110-171(5)c., and provides that the building floor plan shall be drawn at a scale appropriate for the establishment, but in no case shall be less than one-eighth (118) inch equals one (1) foot. The Planning and Zoning Board has reviewed this proposed Ordinance and have recommended approval to the City Council. If you have any questions regarding this matter, please do not hesitate to call our offices. Very truly yours, �l Je y P. Buak Assistant City Attorney JPB/jd Enclosure: Ordinance cc: A. Garganese, City Attorney (w/attachments) FALawyerWffb\Clty of Cape CanaverallCorrespondence\Boucher_Ord_Amd_Spec_Ex_Alcoholic_Bev_LtrO22803.wpd Meeting Type: Regular Meeting Date 03-IM3 AGENDA Heading Resolutions Item 7 No consideration. Highlights of the agreement are as follows: AGENDAREPORT CITY COUNCIL OF THE CITY OF CAPE CANAVERAL SUBJECT: RESOLUTION NO. 2003-10 APPOINTING ANTHONY A. GARGANESE AND THE LAW FIRM OF BROWN, WARD, SALZMAN & WEISS, P.A. AS CITY ATTORNEY DEPT./DIVISION: LEGISLATIVE Requested Action: City Council consider the adoption of Resolution No. 2003-10 appointing Anthony A. Garganese and the law firm of Brown, Ward, Salzman & Weiss, P.A. as city attorney. Summary Explanation & Background: The City solicited Request for Proposal No. 02-02 for professional legal services in January 2003. City Council ranked the above-mentioned firm #1 and the attached legal agreement was negotiated for City Council's consideration. Highlights of the agreement are as follows: • Non -litigation rate of $100 per hour; litigation rate of $110 per hour and paralegal rate of $55 per hour, • Closed session with City Council occurs when legal fees reach $5,000 on a given case, • Quarterly legal reports are required, • This is a continuing service agreement with (60) days written notice for termination, • Law firms insurance policies will endorse the City as an additional insured, • Requires community involvement with (2) free seminars and assistance during City Govemment Week with local students. I recomrneend approval. Exhibits Attached: Resolution No. 2003-10; Legal Services Agreement C7:TMana]ce Department LEGISLATIVE cape-nt my c n\council\mee zng\2003\03-18-03\2003-10.doc RESOLUTION NO. 2003-10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, FLORIDA APPOINTING ANTHONY A. GARGANESE AND THE LAW FIRM OF BROWN, WARD, SALZMAN & WEISS, P.A. AS CITY ATTORNEY FOR THE CITY OF CAPE CANAVERAL, FLORIDA; PROVIDING REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Anthony A. Garganese and the law firm of Brown, Ward, Salzman & Weiss, P.A. desire to become City Attorney for the City of Cape Canaveral, Florida; and WHEREAS, the City Council of the City of Cape Canaveral desires to retain Anthony A. Garganese and the law for, of Brown, Ward, Salzman & Weiss, P.A. as City Attorney pursuant to Article VII of the City Charter; and WHEREAS, the City Council of the City of Cape Canaveral finds that this Resolution is in the best interests of the public health, safety and welfare of the City of Cape Canaveral. NOW THEREFORE, be it resolved by the City Council of the City of Cape Canaveral as follows: SECTION 1. Agreement for Legal Services. The City Council of the City of Cape Canaveral hereby appoints Anthony A. Garganese and the law firm of Brown, Ward, Salzman & Weiss, P.A. as City Attorney pursuant to the terms of the Agreement for Legal Services attached hereto and incorporated herein by this reference. SECTION 2. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. SECTION 3. Severability_ If any section, subsection, sentence, clause, phrase, word or portion of this Resolution or Agreement for Legal Services is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 4. Effective Date. This Resolution shall become effective immediately upon adoption by the City Council of the City of Cape Canaveral, Florida. City of Cape Canaveral, Florida Resolution No. 2003-10 Page 2 RESOLVED BY the City Council of the City of Cape Canaveral, Florida in a regular meeting assembled on this 18th day of March, 2003. ATTEST: Susan Stills, CITY CLERK APPROVED AS TO FORM: Anthony Garganese, CITY ATTORNEY Rocky Randels, MAYOR FOR AGAINST Bob Hoog Jim Morgan Buzz Petsos Rocky Randels Richard Treverton AGREEMENT FOR LEGAL SERVICES THIS AGREEMENT FOR LEGAL SERVICES is entered into between BROWN, WARD, SALZMAN, & WEISS, P.A. (hereinafter: the "Law Firm"), 225 East Robinson Street, Suite 660, Post Office Box 2873, Orlando, Florida 32802-2873 and THE CITY OF CAPE CANAVERAL, FLORIDA, a Florida Municipal Corporation, whose address is 105 Polk Avenue, Post Office Box 326, Cape Canaveral, Florida 32920 (the "City"). This Agreement shall bind the parties upon its execution by their representatives and shall become effective upon the date of the last signature. RECITALS: WHEREAS, the Law Firm desires to provide legal services to the City and the City desires to receive such services; and WHEREAS, this Agreement is entered into in accordance with a competitive request for proposal process; and WHEREAS, the parties mutually desire to finalize in writing this Agreement for legal services; and WHEREAS, the City Council finds this Agreement is in the best interests of the public health, safety, and welfare of the City of Cape Canaveral. NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein, the parties agree as follows: 1.0 ENGAGEMENT OF THE LAW FIRM. The City hereby engages the Law Firm, and the Law Firm agrees to perform the services set forth below. Anthony A. Garganese, a shareholder in the Law Firm, shall be designated the City Attorney and shall serve as a Charter Officer of the City of Cape Canaveral. The other attorneys of the Law Firm who are directed by the City Attorney to provide legal services to the City shall serve as Assistant City Attorneys pursuant to the City Charter. The Law Firm understands and agrees that all services contracted for are to be performed solely by the Law Firm and may not be subcontracted for or assigned unless provided in this Agreement. I 2.0 SCOPE OF SERVICES. A. Law Firm agrees to represent the City in all legal proceedings and will perform all other duties assigned by the City Council in accordance with City of Cape Canaveral, City Charter, and any amendments or modifications thereto. In furtherance of the responsibilities designated under the City Charter, the Law Firm agrees under the direction of the Cape Canaveral City Council and Cape Canaveral City Manager to perform certain professional legal services more particularly described as follows: 1) Prepare and file pleadings, motions, or briefs which may be required and represent the City in any and all litigation (including but not limited to actions brought by or against the City in a judicial or administrative forum and all appeals), except such actions as may be assigned to special counsel or be covered by an insurance policy naming the City as the insured or actions jointly defended with the City of Cape Canaveral; 2) Initiate and conduct discovery including depositions on behalf of the City and represent the City in discovery initiated by opposing parties; 3) Represent the City and attend City Council meetings (unless excused from attendance by the City Council or City Manager); 4) Draft/Review ordinances, resolutions, contracts, and correspondence relating to the transaction of City business and affairs; 5) Perform legal research and render legal advice; 6) Review and analyze City legal files, data, documents and other materials concerning the matters referenced in this paragraph and advise on recommended legal course of action; 7) Attend and participate in meetings, conference calls, field trips or similar functions and report on the status of the legal matters; 8) Act as an intermediary and legal advisor for the City when special counsel or insurance defense counsel is appointed to represent the City in any legal proceeding; 9) Assist in bond transactions and bids; 10) Act as Law Firm pursuant to the City's Charter and this Agreement; 11) Prepare formal legal opinions; 12) Provide legal representation, as set forth above, to City boards including the Planning and Zoning Board, Land Planning Agency, Community Appearance Board, Board of Adjustment, Code Enforcement Board, or other boards as required by the Cape Canaveral City Council or City Manager; 13) At the election of the City Council either prosecute cases before the City's Code Enforcement Board or represent said 2 Board and defend on appeal Board decisions rendered in such prosecutions; 14) Complete real property transactions; 15) Prosecute code enforcement citations before a court of competent jurisdiction; and 16) Such other legal services required by the City Council or City Manager. B. As Law Firm deems appropriate and in specialized matters, the Law Firm may recommend to the City use of special legal counsel for defined purposes. If recommended by Law Firm, the City Manager may approve use of special counsel for an expenditure of legal fees payable to the special legal counsel not to exceed the City Manager's spending authority approved by the City Council. All other requests to utilize special counsel shall be subject to prior approval of the City Council. C. The Law Firm shall be bound by the requirements of Section 112.313(2), (4), (5), (6), and (8), Florida Statutes (code of ethics). The Law Firm shall represent no private individual or legal entity before the City in any proceeding or matter. D. As determined to be necessary by the City Attorney, the other attorneys associated with the Law Firm shall serve as Assistant City Attorneys and provide legal services in accordance with the terms and conditions of this Agreement. E. With respect to any litigation, once attorneys' fees expended by the City, in any one case, reach $5,000, the City Attorney shall consult with the City Council in closed session pursuant to Section 286.011(8), Florida Statutes, to discuss whether the City shall continue litigation or attempt to settle the case. 3.0 CONSIDERATION. A. Compensation - Fees and Expenses. 1. The City shall be billed at a rate of $100.00 per hour for non -litigation related legal services provided under this Agreement, and not to exceed $55.00 per hour for paralegals of the Law Firm (if any). The City shall be billed at a rate of $110.00 per hour for litigation related legal services provided under this Agreement; for example, a labor grievance; an administrative hearing; a code enforcement or drug nuisance prosecution case; formal written legal opinions; pre-trial, trial, post -trial, Appellate Proceedings; and forfeiture proceedings. 3 Legal opinions rendered by the Law Firm for any City financial transactions (e.g., bonds, special assessments) shall be determined based on reasonable fees customarily charged for such opinions in the Central Florida area. Premium rates will not be paid for overtime work. Upon request by the Law Firm, the City's City Council may be asked to review and adjust this rate of compensation. 2. Routine expenses such as local phone calls, local travel expenses, word processing, and clerical or secretarial services are overhead and will not be separately compensated. 3. Billing for services performed shall be on a monthly basis. Billable hours shall be measured in 6 -minute increments. All bills shall denote what attorney conducted the work, a brief explanation of the type of work performed, the date on which the work was performed, the amount of time expended in performing the work, and for which City department the work was performed. Reimbursement of costs for items such as exhibits, title insurance commitment and policy, priority and overnight postage, computer research (e.g., Westlaw), environmental studies, appraisals, surveys, transcripts and witness fees will be at cost to the Law Firm and will also be billed monthly. City will pay billing invoices within fifteen days after receipt. B. Travel. In addition to the above compensation for fees and costs, justified and reasonable non -local travel expenses which are directly and exclusively related to the professional services rendered under this Agreement will be reimbursed in accordance with Section 112.061, Florida Statutes. Pursuant to Section 112.061, Florida Statutes, attorneys of the firm with whom the Law Firm practices are designated as authorized travelers during the life of this Agreement. For the purposes of computing travel expenses, the Law Firm's place of business shall be utilized for computation of all travel expenses. C. Sales Tax. The Law Firm shall not be exempted from paying Florida state sales and use taxes to the appropriate governmental agencies or for payment by the Law Firm to suppliers for taxes on materials used to fulfill its contractual obligations with the City. The Law 4 Firm shall not use the City's exemption number in securing such materials. The Law Firm shall be responsible and liable for the payment of all its FICA/Social Security and other taxes resulting from this Agreement. D. No Pledge of Credit. The Law Firm shall not pledge the City's credit or make the City a guarantor of payment or surety for any contract, debt, obligation, judgment, lien or any form of indebtedness. 4.0 DOCUMENTATION. A. The Law Firm shall submit monthly written invoices. All invoices shall be submitted to the City Manager at Cape Canaveral City Hall. B. The Law Firm shall maintain a file(s), available for inspection by the City Manager, containing documentation of costs and fees incurred in connection with this Agreement. The file(s) shall be maintained for a period of one year after the cost or fee is incurred by the Law Firm, unless otherwise notified in writing by the City specifying the document to be maintained. C. On a quarterly basis, the City Attorney shall provide a brief written report on litigation handled in the previous quarter. These reports are due on the 15th day subsequent to the end of the calendar quarter. 5.0 PUBLIC RECORDS. As provided by Florida Statutes, anything, by whatsoever designation it may be known, that is produced by or developed in connection with this Agreement shall remain the exclusive property of the City and may not be copyrighted, patented, or otherwise restricted as provided by Florida Statutes. Neither the Law Firm nor any other individual employed under this Agreement shall have any proprietary interest in any product(s) delivered under this Agreement. The reasonable cost of preparing and photocopying the documents for the City may be charged for said services. 6.0 TERMINATION OF AGREEMENT. A. In the event this Agreement is terminated by either party for convenience or cause, all finished or unfinished documents, data, studies, correspondence, reports and other R products prepared by or for the Law Firm under this Agreement shall be made available to and for the exclusive use of the City. B. This is a continuing services agreement, however, the City Council may terminate this Agreement for any reason or for its convenience (without cause) by giving written notice to the Law Firm, including the effective date of termination. The Law Firm may at any time terminate this Agreement for any reason or for convenience (without cause) by giving sixty (60) days written notice to the City, including the effective date of termination. Upon termination of this Agreement by either party, the Law Firm shall honor the provisions of Rule 4-1.16, of the Code of Professional Conduct of the Florida Bar. 7.0 AMENDMENTS. Either party may, from time to time, request changes under this Agreement. Such changes, which are mutually agreed upon, shall be incorporated in written amendments to this Agreement. 8.0 AGREEMENT AS INCLUDING ENTIRE AGREEMENT. This instrument, including any attachments, embodies the entire agreement of the parties. There are no other provisions, terms, conditions, or obligations. This Agreement supersedes all previous oral or written communications, representations or agreements on this subject. 9.0 LIABILITY. The City shall defend the actions of the City Attorney and the Law Firm in performing as the City's attorneys. The Law Firm shall maintain, during the period of this Agreement, a professional liability insurance policy or policies affording a minimum one million dollars in professional liability coverage for the professional services to be rendered to City under this Agreement, and the Law Firm shall request from its insurance carriers that the City be endorsed as an additional named insured on the Law Firm's insurance policies. 10.0 ADMINISTRATION OF AGREEMENT. A. The City contract administrator is the City Manager. Anthony A. Garganese is the contractor administrator for the Law Firm. All written and verbal approvals referenced in this Agreement (unless specified as being required to be obtained from the City Council) must be obtained from the parties' contract administrators or their designees. From time to time either 6 party may notify the other, making a unilateral change in the person named by said party as the contract administrator for said party. This contract shall be governed by and construed under the laws of the State of Florida. B. Any attorney employed by the Law Firm may provide legal representation under this Agreement to the City, its officers and employees. The Law Firm may refer work under this Agreement to attorneys in said law firm. C. The City of Cape Canaveral, acting by and through its City Council as a collegial body, shall be considered Law Firm's client. 11.0 COMMUNITY INVOLVEMENT. A. Seminars. On an annual basis, the Law Firm shall prepare for and conduct two (2) local government seminars for the City at no cost. The subject matter of each seminar will be decided by the City and will be held at a mutually agreeable date and time. B. Community Education. The Law Firm shall assist the City annually during City Government Week, at no cost, to provide community education about the operation of local government to local students. IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the date set forth below. DATE APPROVED BY CITY COUNCIL By: ATTEST: Susan Stills, City Clerk CITY OF CAPE CANAVERAL, FLORIDA: Rocky Randels, Mayor BROWN, WARD, SALZMAN & WEISS, P.A. Anthony A. Garganese, Vice President Date: Meeting Type: Regular Meeting Date 03-1"3 AGENDA Heading Discussion Item Discussion item only. Plans were not available when agenda was posted on 03-11-03. Upon receipt, plans will be No. Exhibits Attached: AGENDA REPORT CITY COUNCIL OF THE CI'T'Y OF CAPE CANAVERAL SUBJECT: DISCUSSION: REVIEW OF MANATEE PARK PAVILION PRELIMINARY BUILDING PLAN DEPT./DIVISION: PARKS & RECREATION Requested Action: City Council review and comment on the Manatee Park pavilion preliminary building plan. Summary Explanation & Background: The recreation director is seeking feedback from City Council. She will then proceed with final design Discussion item only. Plans were not available when agenda was posted on 03-11-03. Upon receipt, plans will be placed in council members mailboxes Exhibits Attached: NIA City � ge s Office Department PARKS &RECREATION L •• 1••s•1Y•••,.. y Ion-1—Il%.,v--%luee"llg\cuu3\vJ-itl-V3\manaree parr. aoc