Gulfport City Council Meeting - August 2, 2022

The Gulfport City Council met on Tuesday, August 2, 2022, at 6:00 PM at City Hall. The agenda included a presentation by Pinellas County Commissioner Charlie Justice, a water and sewer rate structure analysis by Andrew Burnham of Stantec, public comments, and approval of several resolutions. Key outcomes included no water/sewer rate increase for fiscal year 2023, a proposed rate structure change reducing bills for low-volume users, and unanimous approval of employee insurance renewals.

Consent Calendar

• Approved the Council Meeting Minutes of June 7, 2022, by unanimous vote.

Public Comments & Testimony

• Ms. Love expressed frustration with council inaction on affordable housing, arguing the city can use zoning, density, and ADUs to increase supply. She criticized a councilmember's comment about toilet counts on properties.
• Marissa Stewart (Gulfport Kawanis Club) thanked the city, CERT, police, and community for supporting the Juneteenth celebration. She presented a donation to the city's after-school program at the Rec Center.
• Ray Rodriguez accused city officials (City Manager O'Reilly, Police Chief Vincent, and others) of covering up alleged theft at the Boca Ciega Yacht Club, claiming the club generated $6-7 million under its lease. He threatened to sue the city, the yacht club, and Chief Vincent. He also alleged records destruction and harassment by police.
• Ms. Tober (by phone) criticized Mr. Rodriguez's unfounded accusations. She praised the proposed water rate structure as a positive step, though she noted the savings are modest. She suggested the city consider a low-income subsidy for sanitation fees.
• Samantha (by phone) urged creative solutions for affordable housing, such as limiting corporate ownership, tiny homes, and incentivizing long-term rentals. She emphasized the need to preserve Gulfport's diversity.

Discussion Items

• Presentation by Pinellas County Commissioner Charlie Justice – Justice shared highlights of the county's proposed $3.2 billion budget (2.5B operating, 794M capital). He noted a millage rate reduction from 5.13 to 4.73 (first back-to-back reduction in 35 years), a 3% employee raise plus retention bonuses, and use of ARPA funds for infrastructure. He discussed the county's Tenant's Bill of Rights, affordable housing projects (Palms of Pinellas, Fairfield/Tibbets Lumber), tourism recovery (15 million visitors, $5.5B direct spend), and the potential Tampa Bay Rays stadium location at the Tropicana site. He answered questions about bed taxes on short-term rentals and the status of the Rays site.
• Water and Sewer Rate Structure Analysis by Andrew Burnham (Stantec) – Burnham presented an updated financial forecast. Due to use of ARPA funds for capital and lower-than-expected St. Pete rate increases (7.5% forecast vs. prior higher projections), no rate increase is needed for FY2023. He recommended a long-term plan of 0% in FY23, then 8% in FY24 and FY25, followed by 3.5% annually. The core proposal is to change the rate structure: replace the current $19.74 minimum charge (including 2,000 gallons) with a $17.74 base charge (no usage included) and a new first-tier charge of $1.00 per 1,000 gallons. This would reduce bills for customers using under 2,000 gallons (over 50% of residential customers) while keeping bills flat for 2,000-gallon users and unchanged for higher users. Sanitation rates would increase 6% due to county tipping fee hikes. Council discussed equity: Councilmember Thanos favored larger discounts for low users and heavier charges for high users (e.g., large homes, businesses, country club). Burnham noted the existing tier structure already penalizes high usage significantly. City Manager O'Reilly recommended adopting the structure with a three-year plan. The council generally supported the proposal.
• Resolutions for Employee Insurance Renewals – Three resolutions were presented and passed unanimously: Resolution 2022-51 (health insurance with Florida Blue, 1% rate increase), 2022-52 (life and AD&D with Standard Insurance at $0.34 per $1,000/month), and 2022-53 (long-term disability). City Manager thanked HR Director Shannon Farrell for negotiating the low health insurance increase.
• Council Comments – Councilmember Thanos raised concerns about a $30,000 pad for a statue (gecko) that was not pre-approved, calling for transparency. She also suggested a sanitation study to explore cost savings and variable rate structures. Vice Mayor Brown noted school starts and requested banners for 64th Street. Mayor Henderson defended the council's handling of public comments, warning of potential legal action if defamation continues.

Key Outcomes

• No water/sewer rate increase for FY2023; a new rate structure (base charge + first-tier usage charge) will be adopted via first reading of ordinances in two weeks. The proposed structure reduces bills for customers using under 2,000 gallons and keeps others flat.
• Three-year rate plan envisioned: 0% FY23, 8% each in FY24 and FY25, then index-based adjustments. This plan will be brought back for council approval.
• Resolutions 2022-51, 2022-52, and 2022-53 approved unanimously renewing employee health, life, and long-term disability insurance for FY2022-2023.
• A sanitation study will be explored per Councilmember Thanos's request.
• The city will consider adding banners on 64th Street in its next annual order (October).