Gulfport City Council Meeting - August 2, 2022

The Gulfport City Council met on Tuesday, August 2, 2022, at 6:00 PM at Gulfport City Hall. The meeting featured presentations from Pinellas County Commissioner Charlie Justice and Stantec Vice President Andrew Burnham on water and sewer rate structures, followed by public comments and the adoption of several resolutions. Key outcomes included a zero percent rate increase for water and sewer for fiscal year 2022-2023 and a revised rate structure benefiting low-volume users.

Presentation: Pinellas County Commissioner Charlie Justice

• Commissioner Justice provided an overview of the county budget, highlighting a proposed $3.2 billion budget with a millage rate reduction from 5.13 to 4.73, the first two-year reduction in 35 years. He noted a 2.7% unemployment rate and 500,000 jobs in Pinellas County, the highest in history.
• He discussed the county's tenants' bill of rights, passed that morning, which provides protections against discrimination for housing voucher users. He also mentioned the county's allocation of Penny for Pinellas funds, including $4.15% of the total over 10 years for affordable housing, and the Prime communication system for first responders.
• Commissioner Justice addressed the Tampa Bay Rays stadium potential, stating no location has been finalized, but if in Pinellas County, it would likely be on the Tropicana site with a smaller stadium footprint. He also confirmed that short-term rental properties (e.g., Airbnb) are required to pay bed tax.
• In response to council questions, he clarified that the county's affordable housing programs are facing challenges as some developers are opting out due to market-rate profitability.

Presentation: Andrew Burnham (Stantec) - Water and Sewer Rate Structure Analysis

• Burnham presented an update on the city's utility financial plan, incorporating use of American Rescue Plan Act (ARPA) funds for capital projects and updated St. Petersburg wholesale rate forecasts. For fiscal year 2022-2023, no rate increase is needed, a revision from the previously projected 7% increase.
• For fiscal years 2024-2027, higher increases (around 8% per year) are projected due to St. Petersburg's wholesale rate increases, with normalization to 3.5% annually after 2027.
• He recommended a rate structure change: replacing the current minimum charge of $19.74 (includes up to 2,000 gallons) with a base rate of $17.74, and charging $1 per 1,000 gallons for usage up to 2,000 gallons. This results in a reduction of up to $4 per month for low-volume users (0-2,000 gallons) with no change for typical 2,000-gallon users. The change also applies to sewer rates.
• Burnham also recommended prorating charges for mid-month occupancy changes, eliminating the discount on standby service for water and sewer, and combining turn-on/ turn-off fees. He suggested considering a multi-year rate plan with indexing to reduce annual review frequency.
• In discussion, council members expressed concerns about the impact on commercial users and the desire for deeper discounts for low-volume users. Mayor Henderson noted the proposed structure is conservative and avoids rate fatigue. The city manager indicated a three-year plan would be brought forward: 0% increase in FY23, then 8% and 8% in the following two years.

Public Comments

• Multiple residents spoke on the water rate structure. One speaker expressed agreement with council member Thanos's view that higher-volume users should pay more, arguing the proposed savings are too small ($2-$4) for low-income households. Another speaker criticized the mayor for interrupting council member Thanos.
• A local realtor, Ms. Love, urged the council to consider zoning changes (ADUs, density) to address affordable housing, noting that the city controls zoning and density. She also announced a beach cleanup on Saturday, August 6, at 8:00 AM.
• Representatives from the Gulfport Kawanis Club thanked the council for supporting Juneteenth celebrations and presented a donation for the after-school program at the Gulfport Rec Center.
• A speaker, Mr. Rodriguez, accused the city manager, police chief, and Boca Ciega Yacht Club of financial improprieties, alleging theft of millions over a lease. He gave a 72-day notice of intent to sue the city. The mayor responded by stating the city is prepared to defend against such allegations if a lawsuit is filed.
• Another resident commented on the water structure, supporting the concept of the new rate structure and requesting consideration of a low-income senior discount on sanitation fees.
• A resident spoke on affordable housing, suggesting creative solutions such as limiting corporate ownership and allowing tiny homes with rent caps.

Consent Calendar

• Minutes: Approval of the Council Meeting Minutes of June 7, 2022. Approved unanimously.

Resolutions (Adopted Unanimously)

• Resolution 2022-51: Authorized the city manager to renew employee health insurance coverage with Public Risk Management of Florida Health Trust/Florida Blue for FY2022-2023. Staff noted a 1% rate increase, attributed to work by Human Resources Director Shannon Farrell.
• Resolution 2022-52: Authorized renewal of employee life and accidental death and dismemberment insurance with Standard Insurance Company for FY2022-2023.
• Resolution 2022-53: Authorized renewal of employee long-term disability insurance with Standard Insurance Company for FY2022-2023.

Council Comments/Informational Reports

• Vice Mayor Brown reminded of school starting next week and requested banners for 64th Street. City Manager O'Reilly confirmed a banner order is planned for October.
• Councilmember Thanos announced she will hold a town hall on housing (date TBD) and has been attending the police academy. She expressed displeasure over the $30,000 cost for the gecko statue’s pad, which was not approved by council. She also suggested a study of sanitation services to explore cost savings and rate restructuring.
• Mayor Henderson addressed public comments, noting that while the council respects free speech, repeated unsubstantiated allegations may constitute defamation. He indicated the city will take action on actionable statements.

Key Outcomes

• Water & Sewer Rates: No increase for FY2022-2023; a revised rate structure will be presented for first reading in two weeks, followed by three-year plan with 0% increase in FY23, then 8% in FY24 and FY25.
• Insurance Resolutions: All three resolutions (2022-51, 2022-52, 2022-53) were approved unanimously.
• Directives: City manager to bring ordinance for rate structure change and three-year rate plan; council to consider a sanitation study based on Thanos's suggestion.