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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Gulfport City Council Meeting – July 1, 2025

City Council — Tuesday, July 1, 2025

BodyGulfport, Florida

SessionCity Council

DateTuesday, July 1, 2025

StatusFILED

Video Record

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Transcript — Verbatim

Speaker numbers apply only to this recording. Names come from transcript evidence. “Possibly” marks uncertain attribution.

Speaker 1

8:04

Good evening.

8:05

Am I on now?

8:07

Oh, good.

8:08

Okay.

8:08

So welcome to the July first Gulport City Council meeting.

8:13

Um as I always say, hold on, it's going to be a long

Unassigned speaker

8:17

one.

Speaker 1

8:19

If you happen to have your phone with you and it's turned on, please make sure you turn it off.

8:24

If you feel the need to have a side conversation during the meeting, no problem, just walk outside, please.

Speaker 2

8:59

Franklin Roosevelt.

Speaker 3

9:28

Council Member Jackson here.

9:30

Council Member Early.

9:34

City Attorney Salzman.

9:36

City Manager O'Reilly.

Speaker 1

9:41

All right.

9:41

So tonight we're going to start off our meeting with two presentations.

9:46

Our first presentation will be by Mr.

9:48

Andrew Burnham from Stantech, and he will be talking to us about the utility rate sufficiency study.

Unassigned speaker

9:58

Thank

Speaker 4

9:58

you, Mayor, members of Council.

Unassigned speaker

10:00

Members of council, Andy Burnham with Stantec.

Speaker 4

10:01

I have a fairly brief presentation.

10:03

I know you have a full agenda and lots to get through, so I'll be happy to keep it at a high level, but dive into as much detail as appropriate as you have questions and discussion warrants.

10:12

So just wanted to start with a little bit of background information and kind of a rates refresher, if you will.

10:17

So I've had the opportunity to assist the city with looking at the water, sewer, and stormwater rates for a few years now.

10:24

And some of the recent history on rates, I think is relevant.

10:26

So in 2023, we had an intentional review of the rate structure in Gulfport and looked at an opportunity to maybe address paying for what you use and modifying the structure to remove a minimum allowance from the fixed charge that had an impact to lower volume users of reducing their bill by not charging for usage that they weren't necessarily using each month.

10:46

And so there was no not necessarily a rate increase at time, but actually a slight reduction in rates for low volume users through that rate structure initiative.

10:54

But then also, as part of that, we were looking at multi-year financial planning

Unassigned speaker

10:58

and

Speaker 4

10:58

trying to make sure that the rates themselves generated enough revenue to cover your operating expenses, your capital needs, and one of your biggest expenses, the wholesale service for water treatment, as well as wastewater treatment and disposal from the city of St.

11:11

Petersburg that we incur.

11:12

And so we developed really a multi-year rate plan that had 8% increases in it for fiscal years 24 and 25, and a $1 increase on the monthly stormwater fee.

11:22

But part of the practice within the community has been to really look at this annually, just to make sure that things are tracking as projected.

11:28

Assumptions have to be made about anticipated volumes that we'll be sending to St.

11:33

Pete or receiving for water service, and escalation factors for costs, such as capital improvements and operating costs.

11:39

So just good financial practices to really look at this annually, develop plans, try to adhere to those plans, use them to inform your budgets, but obviously make course corrections if you need to to the extent that circumstances occur differently.

11:52

But having a multi-year rate plan does provide that benefit of stability, certainty, and only having to have these conversations when necessary if things are going according to plan.

Unassigned speaker

12:01

And

Speaker 4

12:02

so this year's conversation is really oriented about that next three-year plan.

12:05

We did the rate structure adjustments in 23, two adjustments to rates in 24 and 25 that I mentioned.

12:11

Now we're trying to look at what is the future hold today, understanding current cost dynamics in terms of wholesale rate increases from St.

12:18

Pete, our capital needs and funding sources for those needs, and just maintaining adequate reserve policies to mitigate our against any future risks or unforeseen circumstances.

12:28

All trying to provide the highest level of service possible to businesses and residents within the community, but at the lowest possible cost, and trying to avoid rate spikes and trying to do prudent planning and having modest adjustments where possible so that we can again avoid unwanted increases to customers that are beyond what they can plan for or accommodate.

12:49

So through this process, each year what we've done is we utilize a financial model, a computer model, or financial analysis and management system,

Unassigned speaker

12:56

and

Speaker 4

12:56

we kind of calibrate each year what we thought we would see, which is the green bars in the last plans in this chart to what we're seeing today in the blue bars.

13:03

And it helps us understand some changes in circumstances and dynamics.

13:07

But what we've seen actually since 2023 has been a fairly stable forecast.

13:12

The level of revenues and expenses that we need has really been about the same.

13:17

We're doing a good job forecasting as best we can St.

13:20

Pete expenses and anticipated rate increases.

13:23

Our capital needs have been pretty well defined.

13:26

We're fortunate that this year we have the EPA Region 4 community grant to factor in to cover part of our priority two and priority three sewer system repairs, which has allowed us to avoid some additional borrowing, which is helping us a little bit on our reserves.

13:39

But one of the fundamental components or requirements of rates is that they generate sufficient revenues to cover our expenses.

13:45

So I always tend to look at that revenue versus expense chart and that black line, that cash coming in, it really has to equal that cash going out for those expenses because this is an enterprise system.

13:56

And so if we have those expenditures for operations and capital and debt repayment requirements, the revenues of the system have to be sufficient to pay that on an annual basis.

14:06

And so it's really kind of maintaining that equilibrium over time, but trying to do so in a way that has those predictable adjustments for customers.

14:13

And so what's been identified, and actually it's this goes back to 2023 is for 26, 27, and 28.

14:19

We've been showing two years of additional 8% increases, but then dropping down to about a 5% indexing adjustment.

Discussion Breakdown — Share of Meeting

Senior Center Funding█████████████████17%

Permitting and Inspections████████████████16%

Procedural████████████12%

Water And Wastewater Management█████████9%

Public Engagement█████████9%

Public Safety█████5%

Public Works████4%

Homelessness███3%

Zoning Regulations███3%

Summary of Proceedings

Gulfport City Council Meeting – July 1, 2025

The Gulfport City Council held its regular meeting on Tuesday, July 1, 2025, at 6:00 PM at Gulfport City Hall. The meeting featured presentations on the utility rate sufficiency study and the senior center campaign transition plan, public comment from numerous residents, approval of consent items and ordinances, a discussion of the building department permitting process that resulted in the cancellation of an RFQ, and an overview of the proposed fiscal year 2025-2026 budget including a hurricane expense update. The meeting adjourned at approximately 9:45 PM.

Consent Calendar

Item 6a: Approved the meeting minutes from June 17, 2025.
Item 6b: Approved Resolution No. 2025-53 authorizing expenditure for annual maintenance of the Andrews Technology UKG Web Based Time & Attendance System. (Both items passed unanimously.)

Public Comments & Testimony

Albert Reisenberg (19th Ave S): Expressed support for conservation incentives in water, sewer, and garbage rates to save money and resources.
David Bodenstead: Appreciated the senior center presentation; offered to host ward-level meetings to gather input; inquired about donating property to the city.
Karen Muller (retired physical educator, senior center volunteer): Described her strength training and aerobics class with 36–50 participants; emphasized the importance of the senior center and the need for larger space.
Zenid Merck (senior center user, Manchester building): Shared how the senior center provided social connection after personal losses; warned that closure for renovations would devastate her.
Laura Oldaney (5130 9th Ave S): Requested public works clear storm drains; asked for a fiscal status update (noted it was on the agenda); supported variable trash fees; argued that investing in the senior center is wiser than in the casino or marina.
Jennifer Tarant (VP, Gulfport Senior Center Foundation, St. Petersburg): Affirmed the foundation’s commitment to supporting the senior center regardless of direction, reporting over $250,000 raised in the past two to three years.
Elizabeth Mulano (Italian American Society of St. Petersburg): Noted her organization uses the senior center for language classes with over 185 members; supported an expanded facility.
Glenn Casanita (Tai Chi instructor): Described overcrowding in current space; cited health benefits of Tai Chi for seniors and urged creation of more space.
Courtney (Gulfport Landia): Requested implementation of remote public comment options; referenced Key West’s vote to void its 287(g) agreement with ICE.
Anita Frankhauser (nutrition director, Neighborly Care Network): Noted the lunch program requires two seatings to accommodate up to 100 people; strongly supported a new senior center.
John Coleen (Foundation board): Listed recent accomplishments (courtyard renovation, enlarged pre-event receptions) and upcoming events; praised the senior center.
Amy Costa (Foundation board): Clarified that foundation fundraising events are for the whole community; encouraged attendance; spoke to the need for a larger, safer city asset.
Unnamed resident (trolley park issue): Complained about a homeless person living in the park and urged the city to take action.

Discussion Items

Utility Rate Sufficiency Study (Andrew Burnham, Stantec): Presented a proposed three-year rate plan with 8% increases in fiscal years 2026 and 2027, decreasing to 5% indexing thereafter. For a typical 2,000-gallon user, the all-in increase (including sanitation) is about $8.30/month. Council discussed conservation-oriented rate structures and comparisons with nearby communities.
Senior Center Campaign Transition Plan (Rachel Cataldo, Senior Center Supervisor): Reported $2.8 million committed (including $1.5 million federal grant) but noted the city lacks a council-endorsed vision for the project. Stressed the need for clear direction to maintain donor trust. Council members expressed support for the center but requested options between renovation and new construction. A future discussion item was agreed upon.
RFQ for Building Department Permitting Process Evaluation (Item 9a): City Clerk announced the RFQ was canceled because the process was ethically and legally compromised (a council member shared other bids with a vendor). The council discussed alternatives, deciding to keep the department in-house, direct the city manager to implement improvements (customer service, 5–10 day turnaround, potential AI, and aligning with county requirements where possible), and revisit after hurricane season.
Proposed FY 2025-2026 Operating/Capital/Recovery Budget (Items 9b & 9b1): City Manager O’Reilly presented a flat budget with a 3.9% property value growth, recommending 5% salary increases for all employees and noting $300,000 in lost revenue. Shannon Farrell provided a hurricane expense update: $7.6 million spent, $6.9 million reimbursed to date; open purchase orders total $8.3 million; many projects are complete or in process. The budget discussion included the potential to adjust the millage rate.

Key Outcomes

Consent Agenda: Approved unanimously.
Ordinance 2025-03 (Tobacco in Parks) – First Reading: Approved unanimously (5–0).
Ordinance 2025-04 (Green Space Permeability) – First Reading: Approved unanimously (5–0), with amendments to be added for second reading regarding 100% permeability and synthetic turf allowances.
Resolution 2025-54 (Gator Dredging Beach Stabilization Phase 1): Approved unanimously (5–0).
Resolutions 2025-55, 2025-56, 2025-57 (Insurance Renewals): Approved unanimously (5–0).
Building Department Permitting: The RFQ process was canceled; council directed the city manager to implement improvements to customer service, turnaround times, and to consider a hybrid model while keeping the department in-house. The issue will be re-evaluated in January 2026.
Budget Direction: Council acknowledged the proposed budget and indicated general support for 5% employee raises, maintaining the state lobbyist, and keeping the current millage rate, with further discussion scheduled during budget hearings.
Future Items: Council agreed to schedule a discussion on the senior center vision; Vice Mayor Thanos will request a presentation on the city’s flood rating; Councilmember Shaw will explore a resiliency internship; remote public comment options are to be researched.

Meeting Transcript

Good evening. Am I on now? Oh, good. Okay. So welcome to the July first Gulport City Council meeting. Um as I always say, hold on, it's going to be a long one. If you happen to have your phone with you and it's turned on, please make sure you turn it off. If you feel the need to have a side conversation during the meeting, no problem, just walk outside, please. Franklin Roosevelt. Council Member Jackson here. Council Member Early. City Attorney Salzman. City Manager O'Reilly. All right. So tonight we're going to start off our meeting with two presentations. Our first presentation will be by Mr. Andrew Burnham from Stantech, and he will be talking to us about the utility rate sufficiency study. Thank you, Mayor, members of Council. Members of council, Andy Burnham with Stantec. I have a fairly brief presentation. I know you have a full agenda and lots to get through, so I'll be happy to keep it at a high level, but dive into as much detail as appropriate as you have questions and discussion warrants. So just wanted to start with a little bit of background information and kind of a rates refresher, if you will. So I've had the opportunity to assist the city with looking at the water, sewer, and stormwater rates for a few years now. And some of the recent history on rates, I think is relevant. So in 2023, we had an intentional review of the rate structure in Gulfport and looked at an opportunity to maybe address paying for what you use and modifying the structure to remove a minimum allowance from the fixed charge that had an impact to lower volume users of reducing their bill by not charging for usage that they weren't necessarily using each month. And so there was no not necessarily a rate increase at time, but actually a slight reduction in rates for low volume users through that rate structure initiative. But then also, as part of that, we were looking at multi-year financial planning and trying to make sure that the rates themselves generated enough revenue to cover your operating expenses, your capital needs, and one of your biggest expenses, the wholesale service for water treatment, as well as wastewater treatment and disposal from the city of St. Petersburg that we incur. And so we developed really a multi-year rate plan that had 8% increases in it for fiscal years 24 and 25, and a $1 increase on the monthly stormwater fee. But part of the practice within the community has been to really look at this annually, just to make sure that things are tracking as projected. Assumptions have to be made about anticipated volumes that we'll be sending to St. Pete or receiving for water service, and escalation factors for costs, such as capital improvements and operating costs. So just good financial practices to really look at this annually, develop plans, try to adhere to those plans, use them to inform your budgets, but obviously make course corrections if you need to to the extent that circumstances occur differently. But having a multi-year rate plan does provide that benefit of stability, certainty, and only having to have these conversations when necessary if things are going according to plan. And so this year's conversation is really oriented about that next three-year plan. We did the rate structure adjustments in 23, two adjustments to rates in 24 and 25 that I mentioned. Now we're trying to look at what is the future hold today, understanding current cost dynamics in terms of wholesale rate increases from St. Pete, our capital needs and funding sources for those needs, and just maintaining adequate reserve policies to mitigate our against any future risks or unforeseen circumstances. All trying to provide the highest level of service possible to businesses and residents within the community, but at the lowest possible cost, and trying to avoid rate spikes and trying to do prudent planning and having modest adjustments where possible so that we can again avoid unwanted increases to customers that are beyond what they can plan for or accommodate. So through this process, each year what we've done is we utilize a financial model, a computer model, or financial analysis and management system, and we kind of calibrate each year what we thought we would see, which is the green bars in the last plans in this chart to what we're seeing today in the blue bars. And it helps us understand some changes in circumstances and dynamics. But what we've seen actually since 2023 has been a fairly stable forecast. The level of revenues and expenses that we need has really been about the same.

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