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05-24-2021 WS MinutesP, M -! ':', ") (�. ( CITY COMMISSION MINUTES +, MAY 249 2021 WORK SESSION The City Commission of the City of Sanford, Florida, met in Work Session on Monday, May 24, 2021, at 5:30 PM, in the City Commission Chambers, 1St Floor, City Hall, 300 North Park Avenue, Sanford, Florida. Present: Mayor Art Woodruff Vice Mayor Kerry S. Wiggins, Sr. Commissioner Sheena Britton Commissioner Patrick Austin Commissioner Patty Mahany City Manager Norton N. Bonaparte, Jr. City Attorney William L. Colbert City Clerk Traci Houchin Deputy City Clerk Cathy LoTempio Mayor Woodruff called the meeting to order at 5:38 PM 1. Presentation: Sanford Airport Authority Financial Report, by Cindy Lindsay, Finance Director. [Commission Memo 21-121.A] (RM 6.A) Cindy Lindsay, Finance Director and asked Tom Nolan, President and Chief Executive Officer of the Orlando Sanford International Airport Authority to introduce the new Chief Financial Officer (CFO). Mr. Nolan introduced Don Poore, the retiring CFO and Jason Watkins, the new CFO. The Commission welcomed them to the Commission meeting. Ms. Lindsay introduced Joel Knopp from Moores Stephens Lovelace (MSL), PA to present the Sanford Airport Authority's (SAA) Financial Report. Mr. Knopp provided a summary of the SAA Financial Audit Report. On page 2, he pointed out that the auditor's opinion was unmodified. Following that is the Management Discussion and Analysis that provides comparative information from 2018 and 2019. He CITY COMMISSION MINUTES MAY 249 2021 WORK SESSION said the big change in 2021 is that the airport is nearing completion of the terminal expansion. Mr. Knopp said the COVID pandemic and its impact on operations were $14AM in 2019, $11.9M in 2020 and a decline in passenger facilities charges. He said the Federal Government was quick to provide COVID relief funds which are shown as the operating grant Cares Act revenue of $5.2M in Fiscal Year 2020. He said these funds offset the decline in revenues, with a positive change of $4.7M for Fiscal Year 2020. He said there were no significant deficiencies in the internal control and compliance audit. Mr. Knopp said the SAA had clean reports in the auditor general required reports. He said he appreciated the efforts of the SAA and the Finance Department and asked the Commission if anyone had any questions. There being no questions the Commission thanked Mr. Knopp. Mayor Woodruff asked Mr. Nolan if he would share the outlook of the airport in terms of traffic at the airport and the status of rolling over the financing. Mr. Nolan said leisure traffic will increase before business traffic and as you can see, it has already begun. He said the SAA is projecting 75% Pre-COVID activity in the next fiscal year. He said the SAA submits their monthly operating expenses to the Cares Act fund. Mr. Nolan said the majority of financing for the terminal expansion came from passenger facility charges with the remainder coming from a bank loan. He said he will be sending invites to the Commission to tour the new facility. Lastly, Mr. Nolan said he is working on getting the lease together for the fire station as well. CITY COMMISSION MINUTES MAY 249 2021 WORK SESSION 2. Regular Meeting Items — additional information Mr. Bonaparte said that no regular items require further discussion. 3. Briefing Items Mr. Bonaparte said there were no briefing items, however, he did have an update regarding the Mayfair Golf Course. He said there are three options for the Commission to review: • Option One — Hire Pete and Chris, currently managing the golf course, and hire all the current Mayfair staff as City employees at a cost of $964,304 with a loss of $463,404 per year. • Option Two — Hire Pete and Chris with personnel from Labor Force at a cost of $839,946 with a loss of $362,498 per year. • Option Three — Hire a Management Company at a cost of $60,000 and hire employees at a cost of $584,396 totaling $644,396 with a loss of $83,497 per year. Commissioner Britton asked staff to further explain the cost details and the losses. Mayor Woodruff gave a more defined breakdown of the options. Mr. Bonaparte asked the Commission if they would like to have further discussion or if there is an option that they would like to move forward with. Mr. Bonaparte informed the Commission that staff has had discussions with the City of Oviedo regarding their golf course and they are very pleased with their management company. CITY COMMISSION MINUTES MAY 249 2021 WORK SESSION The Commission expressed a great concern that the golf course will not be profitable. Mayor Woodruff said that once the clubhouse is built, the golf course would begin to show revenues. Commissioner Austin agreed with Mayor Woodruff and said that there are several other organizations that would utilize the golf course more if the greens were kept in good shape, if enough golf carts were available to all guests and the facilities were taken care of. He said he is not in favor of a management company because the last few companies did not provide the services required to keep the golf course in good shape. Commissioner Mahany asked if the Commission could be provided with the number of golfers who paid for tee times in the last six months. She said she would like to see what it cost for an individual to play a round of golf. After discussion, Mayor Woodruff asked the Commission if they want to move forward with one of the options presented or continue discussions. Mr. Bonaparte said that Tom George, Deputy City Manager and owner of Sanford Mayfair Management (SMM) will be retiring within the next few months and SMM with be dissolved, therefore, a decision needs to be made soon. He said if the Commission cannot make a decision tonight there is a possibility no one will be overseeing the golf course. Commissioner Mahany said she has never really been in favor of a management company, however, at this time it seems to be the best option. Commissioner Britton asked if a member of City staff would be able to oversee the CITY COMMISSION MINUTES MAY 249 2021 WORK SESSION management company. Commissioner Austin said the City should be cautious if the decision is to go with a management company to ensure the City has someone to keep an eye on them. Also, he said that when the Commission starts to have budget meetings, they need to keep in mind some of the other operations at the City with the same concept. He said the Commission does not look at the margin these operations are providing. Commissioner Mahany asked Commissioner Austin to explain what he is referring to. Commissioner Austin said he challenges the Commission to look into how much money the City makes and or loses with the following locations; the City pool, the City Stadium and the ballfields. He said City staff is constantly out at all of these locations performing work. Commissioner Austin asked about the status of the ABM Report. Bilal Iftikhar, Public Works and Utilities Director, said ABM is working on the report and it will take another one to two months before it is complete. He said ABM is researching the operations and efficiency of all areas in City Hall and City owned properties, including the golf course. He said ABM is one of the biggest golf course management companies. Ms. Lindsay said the tax advisors are asking the City to dissolve SMM as soon as possible. Commissioner Austin said Mr. George should be here for this decision. Mayor Woodruff asked the Commission if they would like to move forward with a management company and the general consensus was to move forward and advertise for proposals. CITY COMMISSION MINUTES MAY 249 2021 WORK SESSION 4. City Manager Comments Mr. Bonaparte asked the Commission if they would like to meet for the first budget work session on Wednesday, July 14, 2021 or Wednesday, July 21, 2021. After a brief discussion the Commission agreed to hold the first budget meeting on Wednesday, July 21, 2021 at 3:00 PM. Mr. Bonaparte said the Commission can decide at that meeting if they require an additional meeting for further review. Commissioner Britton said she wants to pull Consent Item 6.A for further discussion at tonight's meeting. She asked if there are any other Department Heads retiring from the City this year. Mr. Bonaparte said he would get in touch with Human Resources to find out that information. There beinu no further business, the meeting was adjourned at 6:31 PM.