March-11-2024

TOWN OF OCEAN BREEZE MINUTES REGULAR TOWN COUNCIL MEETING Monday, March 11, 2024, 10:30AM Ocean Breeze Resort Clubhouse, Pineapple Bay Room 700 NE Seabreeze Way, Ocean Breeze, FL

1. Call to Order - President Kelley called the meeting to order at 10:30 a.m.

- Pledge of Allegiance - Mayor Ostrand led the Pledge of Allegiance

- Roll Call - Present: Mayor Karen M. Ostrand, President Sandy Kelley, Vice-President Liz Reese Council Members Kevin Docherty, Michael Heller, Gina Kent, and Matthew Squires

- Staff Present - Town Management Consultant, Terry O'Neil; Attorney Paul Nicoletti; Town Clerk, Kim Stanton; Permit Processor, Pam Orr

2. Approval of Minutes - Council Member Docherty, seconded by Council Member Kent, made a motion to approve the minutes of the Regular Meeting, Monday, January 8, 2024.

President Kelley asked for comments from the public.

There were none.

All in favor: Yes: Heller, Kent, Squires, Kelley, Docherty, Reese; No: None: motion passed 6-0.

Council Member Heller, seconded by Council Member Squires, made a motion to approve the minutes of the Regular Meeting, Monday, February 12, 2024.

There were none.

All in favor: Yes: Heller, Kent, Squires, Kelley, Docherty, Reese; No: None: motion passed 6-0.

3. Proclamation - Problem Gambling Awareness Month Mayor Ostrand Mayor Ostrand read a portion of the Proclamation into the record and mentioned the importance of public awareness. She proclaimed March 2024 as Problem Gambling Awareness Month in the Town of Ocean Breeze.

Council Member Kent, seconded by Council Member Reese, made a Motion to approve the Proclamation.

4. Proposal to fund a project identification/public education sign, in an amount not to exceed $1,000, for a shoreline restoration project sponsored by the neighboring Environmental Studies Center Council President Sandy Kelley and Michael Glynn, Plant Operator, Environmental Studies Center President Kelley gave a brief explanation of the project and stated that it would be funded out of the gas tax funds in the special revenue account. She invited Mr. Glynn to speak about the project.

All in favor: Yes: Heller, Kent, Squires, Kelley, Docherty, Reese; No: None: motion passed 6-0.

There were none.

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Michael Glynn, Environmental Studies Center, gave an update on the project. He reported that the Native Plant Society donated three hundred (300) native plants and after all the exotics were removed volunteers did the planting. He asked the Town to help fund a supplemental kiosk to explain the benefits of the project.

He took questions from the Council and Mayor regarding Phase II of the project, shoreline stabilization, the water environment and tidal restoration to create habitat, state and federal permits, timeline, funding, size of the shoreline, usage of the riverfront with the students, Florida Oceanographic Society, oyster and sea grass establishment, Representative John Snyder and funding set aside for such projects at the State level.

Mayor Ostrand gave a brief history of the Town of Ocean Breeze and its neighbor, the Environmental Studies Center.

Mr. O'Neil confirmed that consistently throughout the years, the Town had provided funding and collaborated on efforts for the neighboring school. He pointed out that the project was within the confines of the Indian River Drive water quality project and that it was consistent with the previous road project which included baffle boxes that filter runoff water before entering the lagoon. He stated that the gas tax funds were limited to this type of spending and added that if the Council approved the expenditure, staff would come back to the Council at a subsequent meeting with a budget amendment. He stated that staff was recommending the project.

Vice-President Reese, seconded by Council Member Heller, made a motion to approve the project with the Environmental Studies Center.

5. Comments from Attorney Paul Nicoletti regarding closeout of development projects - Mr. Nicoletti referred the Council to his memorandum dated March 6,2024. He added that on Friday (March 8,2024) he sent a letter to Zachery Griffin, the Land Development Director for Forestar, regarding the Seawalk PUD indicating that there were issues that still needed to be resolved prior to final closeout. He added that he sent Mr. Griffin another copy of the matrix that had been prepared in December 2022 along with an updated checklist of outstanding items that staff had prepared. He stated that in the letter, he gave the Developer until July 1, 2024 to resolve these issues, invited him to contact staff and bring this to closure. He also spoke about the Sun Communities PUD and goals to complete that closeout.

Mr. Nicoletti took questions from the Council regarding the final approvals and the additional fifteen (15) month period, water runoff behind Publix, drainage as part of the infrastructure, code enforcement violation procedures and county courts.

* * *

Melissa Heller, resident of Seawalk community and representative of the Seawalk HOA, spoke about her positive impressions of Town staff. She asked the Town Council to make additional resources available to Staff, if needed, to ensure that all the present deficiencies within the Seawalk Community and the Resort are thoroughly and fully resolved.

6. Comments from the public on topics not on the Agenda-Joe Beert, resident of the Seawalk community, spoke about his support of the Environmental Studies Center project using gas tax dollars. He stated that he did not agree with the Town Council making charitable donations out of the general fund. He provided some breakdowns of figures paid to the Town for ad valorem taxes. He spoke about the differences in ad valorem paid by residents of the Resort versus residents of the Seawalk community. He asked if the Town could investigate something more balanced and limit charitable donations.

President Kelley stated that charitable donations are considered when and if organizations come before the Council to ask for a donation.

Mr. O'Neil answered that during budget season, staff investigated some of the inequalities in the ad valorem. He stated that certain options are available, for example the possibility of adopting a utility tax, which was a tax on electricity and water usage. He commented that staff investigated some preliminary numbers on the issue and added that as the budget for the upcoming year was being developed, it might be appropriate to look at some other options that might make it more equitable. He commented that a tax on electricity was still a tax, but that staff could do an analysis to see how it would shake out in terms of equity versus the current use of ad valorem. He stated that he would not recommend doing away with ad valorem, but that it could be brought down to a fractionable amount. He added that staff would investigate the matter and be able to provide the residents with some other options at budget time.

Mayor Ostrand spoke about the amounts of annual increases (5%) in the rents paid by residents of the Resort, which include ad valorum.

Discussion ensued regarding the amount of ad valorum taxes that the Resort paid, the number of lots in the Resort, choice in charitable donations, budget process, legal fees, increase in HOA dues, 2024/2025 budget, and constituent concerns and beliefs regarding charitable donations made by the Town.

7. Comments from the Council on topics not on the Agenda - Council Member Kent asked about a sound barrier wall to block the noise of the Brightline trains. She stated that she believed that there was funding provided by the government to build a wall, similar to the one at Sun Communities, to make a difference in noise reduction. She asked Mr. O'Neil if he knew about how much funding might be available from the government to erect a wall like the wall along Green River Parkway, to block out the noise from the trains and to protect children from playing on the tracks.

Council Member Heller asked Pam Orr what additional expertise might be useful going forward in moving the closeout issues along.

* * *

Pam Orr answered that Attorney Nicoletti had a good handle on the close-out and staff was providing the appropriate paperwork.

Attorney Nicoletti remarked that staff had delivered excellent service in providing the necessary and anticipated documentation, and that he believed that there was nothing lacking in the ability to push this closeout over the finish line. He added that if Forestar / D. R. Horton decided to not do what they should, then there were mechanisms that could be employed and would be recommended to the Town Council prior to any filing; but there were things that could be done.

Council Member Heller asked if D. R. Horton were to start performing this corrective work, would a construction manager be employed to oversee and make sure the work was done properly.

Mr. O'Neil answered that the Town did not want to walk away from the model already in place. He added that follow-up inspections were to be paid for by the developer and the professional performing the work must report to the Town because of the fiduciary relationship. He stated that the Town would not release the bond or move off the position unless the professionals stepped-up and certified the work that was being required. He commented that a lot of the items on the list were not physical but records attesting to things having been done properly. He stated that "yes" the Town had to hire some expertise, and that Staff may come back before the Council for some additional assistance. He stated that he could see that the Town may need some additional advice along the way from Mike Flaugh, Landscape Engineer. He added that the two reports provided by Mike Flaugh, at the Town's expense, and on behalf of the Town had been provided to the developers and all other parties. He stated that there were open questions which needed to be answered at close-out particularly regarding irrigation, trees, and soil amendments. He commented that these things, which were not new, were items that the Town could not let go and they must be addressed at close

Council Member Heller stated that this was like the fox watching the hen house because D. R. Horton was paying the inspectors.