MEXICOBEACH LOREDA CITY COUNCIL REGULAR MEETING IUESDAY,JANUARYI 14, 2025. AT 9:00 A.M. PUBLIC WORKS BUILDING Mayor, Richard Wolff Councilman, Jerry Smith Councilwoman, Linda Hamilton City Attorney, Tim Sloan Councilman, Jason Adams Councilman, Tim Linderman City Administrator, Chris Truitt City Clerk, Tammy Brunson This meeting willl bel lives streamed on the CityofMexico) Beach Government Facebook page.Ifyouh haveany questions or comments on the agenda, please email them up to 21 hours prior to the meeting at ciy@mexicobeachl.sov I. CALLTO ORDER II. INVOCATION III. PLEDGE OF ALLEGIANCE IV. ROLL CALL V. CONSENT AGENDA 1. Minutes - September 5, 2024 - First Public Budget Hearing 2. Minutes - September 24, 2024 - City Council Meeting 3. Minutes - October 8, 2024- - City Council Meeting 4. Minutes - October 22, 2024 - City Council Meeting 5. Minutes - November 26, 2024 - City Council Meeting 6. Minutes - December 10, 2024. - City Council Meeting VI. REGULAR AGENDA 1. Fireman Brian Hunt - Engineer Recognition - Chief Sandy Walker 2. James Moore & Co., P.L-A Accounting Services Contract Renewal - Chris Truitt a. Open Public Discussion b. Close Public Discussion Discussion d. Motion to Approve/Deny 3. LDC Discussion - Chris Truitt 4. Financial Report - Chris Truitt VII. CITIZEN COMMENTS 1. Speaker must come to the podium and state name and city of residence 2. Comments are limited to 3 minutes VIII. COUNCIL COMMENTS IX. MAYOR COMMENTS STAFF COMMENTS XI. ADJOURNMENT X. Emailed toi interested parties and posted on the city website on: 01/09/2025 Note: Copies of the Agenda items are posted on the City's Website mexicobeachf.gov This meeting willl be recorded *You are hereby notified that in accordance with Florida Statutes, you have ar right to appeal any decision made by the Council with respect to any matter considered. You may need to ensure that a verbatim record oft the proceedings is made which may: need toi include evidence and testimony upon which the appeal is based. Any person requiring a special accommodation: att this meeting because ofa disability or physical impairment should contact Tammy Brunson, City Clerk, at 201 Paradise Path, Mexico Beach, Florida 32456; or by phone (850) 648-5700 at least five calendar days prior to the meeting. Ify you are hearing or speech impaired, and you possess TDD equipment, you may contact the City Clerk using the Florida Dual Party Relay System, which can be reached at 1-800-955-8770(IDD on the website. City of Mexico Beach First Public Budget Hearing THURSDAY, SEPTEMBER 05, 2024-6:00PM The City of Mexico Beach City Council held thet first public budget hearing on Thursday, September 05, 2024, at 6:00 pmi ini the Public Works Building in Mexico Beach. Mayor Wolff and the following Councilmembers were present:. Jerry Smith, Linda Hamilton, Jason Adams and Tim Linderman. Also present were Interim City Administrator, Mell Smigielski, and City Clerk, Tammy Brunson Call to order: Mr.Wolff called the meeting to order at 6:00 pm. II. Open Public Hearing: Mr. Smigielski announces the name of the taxing authority as the City of Mexico Beach. The rollback rate at 5.36% with a percentage increase of 7.28% resulting in a tentative millage rate at 5.75%. The general fund 1. Resolution 24-04-1 Adoption of the FY24-25 Tentative Millage Rate - The resolution authorizes the adoption oft the millage rate for the tax year 2024-2025, levying an ad valorem tax of 5.7500 mills. Motion called by the Mayor. Mr. Linderman motioned to read Resolution 24-04 in its entirety. Ms. Hamilton seconded the motion. Motion passed unanimously. Ms. Brunson read Resolution 24-04 in its entirety. Mr. Linderman motioned to adopt Resolution 24-04. Ms. Hamilton seconded the motion. Motion to adopt passed unanimously and 2. Resolution 24-05-A Adoption of FY24-25 Tentative Budget - Motion to read resolution by title only called by the Mayor. Mr. Linderman motioned to read Resolution 24-05 in its entirety. Ms. Hamilton seconded the motion. Motion passed unanimously. Ms. Brunson read Resolution 24-05 in its entirety. Mr. Linderman motioned to adopt Resolution 24-05. Ms. Hamilton seconded the motion. Motion to adopt passed 3. Ordinance 839 -F FY24-25 Final Millage Rate (First Reading) Motion to read ordiance by title only called by the Mayor. Mr. Linderman motioned to read Ordinance 839 by title only. Ms. Hamilton seconded the motion. All 4. Ordinance 840 - Adoption of FY24-25 Final Budget (First Reading) Motion to read ordinance by title only called by the Mayor. Mr. Linderman motioned to read Ordinance 840 by title only. Ms. Hamilton seconded the 5. Ordinance 841 - Adoption of FY24-25 Water Fund Budget (First Reading) - Motion to read ordinance by title only called by the Mayor. Mr. Linderman motioned to read Ordinance 841 by title only. Ms. Hamiltonseconded 6. Ordinance 842 - Adoption of FY24-25 Sanitation Fund Budget (First Reading) - Motion to read ordinance by title only called by the Mayor. Mr. Linderman motioned to read Ordinance 842 by title only. Ms. Hamilton 7. Ordinance 843 - Adoption of FY24-25 Sewer Fund Budget (First Reading) -I Motion to read byt title only called by the Mayor. Mr. Linderman motioned to read Ordinance 843 by title only. Ms. Hamilton seconded the appropriation was set at $8,577,071. adopted at 6:04 p.m. unanimously and adopted at 6:05 p.m. in favor. Ms. Brunson read Ordinance 839 by title only. motion. All in favor. Ms. Brunson read Ordinance 840 by title only. the motion. Alli in favor. Ms. Brunson read Ordinance 841 by title only. seconded the motion. All in favor. Ms. Brunson read Ordinance 842 byt title only. motion. All in favor. Ms. Brunson read Ordinance 843 by title only. III. Close Public Hearing City of Mexico Beach First Public Budget Hearing THURSDAY, SEPTEMBER 05, 2024-6:00PM IV.A Adjournment- - Ms. Hamilton motioned to adjourn public hearing and Mr. Linderman seconded the motion at 6:14 p.m. Signed: Attest: Mayor, Richard Wolff City Clerk, Tammy Brunson City of Mexico Beach Meeting Minutes TUESDAY: SEPTEMBER 24, 2024-6:00PM The City of Mexico Beach City Council met in a regular meeting on Tuesday September 24, 2024, at 6:00 pm at the Public Works Building in Mexico Beach. Mayor Wolff and thei following Councilmembers were present: Linda Hamilton, Jerry Smith, Jason Adams and Tim Linderman. Also present were Interim City Administrator, Mell Smigielski, City Clerk, Tammy Brunson and City Attorney Tim Sloan. I. II. Call to order: Mayor Wolff called the meeting to order at 6:00 pm. Consent Agenda: Meeting minutes from the. July 30, 2024, minutes were approved unanimously. IV. Regular Business: 1. Mayor Wolff suspends Robert's Rules to bring Resolution 24-06 regarding issuance of a state of emergency regarding potential tropical cyclone nine to the table. Mr. Linderman motioned, and Mrs. Hamilton seconded to read Resolution 24-06 by title only. Motion passed unanimously. Mr. Linderman motioned, and Mrs. Hamilton seconded to approve Resolution 24-06. Motion passed unanimously. 2. Scheduled Appearance- - Elizabeth Moore with Anchor CEI presents a proposal to modify the seawall and expand the boat ramp. The proposal includes reducing the number of lanes from three to one large lane, which would be more cost-effective, explaining that any funds left over from the current grant could be used for seawall repairs. The council discusses the feasibility of the proposal, including the need for FWC approval and the potential impact on parking and access. Mr. Adams expresses concern about the contract terms requiring public access for 20 years. Mayor Wolff suggests focusing on the design and leaving the contract terms for later discussion. Mr. Smith: suggests keeping the current design with three lanes and seeking FWC's input on what changes are allowed. Mitch Coleman, al local expert, recommends a single rampi to improve access and reduce congestion. The council discusses the pros and cons of different design options, including as single ramp: and a double ramp. Mitch Colemen emphasizes the importance of access over the number of lanes, suggesting a single ramp with a larger basin. The council agrees to seek FWC's input on the design and potential changes to the grant. Elizabeth will gather cost estimates and FWC's feedback before presentinga 3. Change Order for Engineering Services with BDI is brought to thei table. Mr. Smigielski presents change order number six, requesting an increase in COLA costs and extending the contract to 2027. BDI has not been under contract for design oft the pier since 2022 but has continued to do work as assigned. The increase of $16,915.00 was to cover cost that would have been associated with extending the contract. The council discusses the legality and fairness oft the request, considering the expired contract and the additional work performed. Mr. Sloan raised concerns about the procedural implications of extending the contract retroactively. No public comments were made. Mrs. Hamilton motioned, and Mr. Linderman seconded to approve change order #61 for $16,915.00 and extend the November 2022 contract for 3 years until 2025. 4. Ordinance 845 -E Budget Amendment FY23-24 Water and Sewer Fund (Second Reading) was brought to the table. Mr. Adams motioned, and Mrs. Hamilton seconded to read Ordinance 845 by title only. Motion passed unanimously. No public comments were made. Mr. Adams motioned, and Mr. Smith seconded1 to final proposal to the council. Motion passed with a 4t to 1 vote. No vote was Mayor Wolff. approve Ordinance 845. Motion passed unanimously. City of Mexico Beach Meeting Minutes TUESDAY SEPTEMBER 24, 2024-6:00PM IV. Regular Business = Continued 5. Ordinance 844 - Increase sanitation rates FY25 (First Reading) was brought to the table. Mrs. Hamilton motioned, and Mr. Smith seconded to read Ordinance 844 by title only. Motion passed unanimously. No public comments were made. Mrs. Hamilton motioned, and Mr. Smith seconded to approve Ordinance 844. 6. Ordinance 846-1 Increase water and sewer rates FY25 (First Reading) was brought to the table. Mrs. Hamilton motioned, and Mr. Smith seconded to read Ordinance 846 by title only. Motion passed unanimously. No public comments were made. Mrs. Hamilton motioned, and Mr. Smith seconded to 7. Ordinance 847 - Floodplain Requirements (First Reading) was brought to the table. Mrs. Hamilton motioned, and Mr. Smith seconded to read Ordinance 847 by title only. Motion passed unanimously. No public comments were made. Mrs. Hamilton motioned, and Mr. Smith seconded to approve Ordinance 847. 8. Update Parker Park and Under the Palms Park restrooms was brought to the table. Mr. Smigielski explains the need to adjust the plan, including moving one restroom to Parker Park and keeping the other at Under the Palms and outlines the cost-saving measures, including removing the pole barn, adjusting the concrete pad, and the benefits of having restrooms at both parks. Mrs. Hamilton motioned, and Mr. Smith seconded to amend the prior request to change to the new plan while keeping in the same budgeted amount. Motion 9. Discussion on golf carts and LSV's in parks was brought to thet table. Mrs. Hamilton mentioned feedback from citizens who want to keep using golf carts in the park, emphasizing the need to maintain rules. Other council members discuss the potential benefits and existing ordinances related to golf carts in the park. The 10. Discussion about the old dredge is brought to the table. Mr. Smigielski discusses the need to remove the old dredge from the canal, mentioning previous discussions and the challenges involved. Tommy Davis provides details on the costs associated with removing the dredge, including crane rental and disposal. Council members discuss the possibility of Mark Garrison taking the dredge as is. The council agrees to write a 11. Discussion on moving the municipal election was brought to the table. Mr. Smigielski brought up the possibility of changing the city'selection dates to coincide withi federal elections, as suggested by Councilwoman Hamilton. Mr. Sloan explains the implications of the Home Rule Powers Act and the potential need for a public vote to change the charter. The council decides to gather more information and discuss the 12. Mr. Smigielski presents thei financial report, noting that total revenues in the general fund are 91-92% of expenditures, which is positive. The council discusses the financial health of various departments, including Jerry Wallace raises concerns about grass and weeds exceeding 12 inches in height, leading to a discussion on code enforcement andi the process for addressing such issues. The council emphasizes the need for citizens to file complaints andi for code enforcement to be more proactive in addressing these issues. Motion passed unanimously. approve Ordinance 846. Motion passed unanimously. Motion passed unanimously. passed unanimously. council decides to table the discussion until the next meeting for further consideration. simple agreement with Mark Garrison for the removal of the dredge. matter further in thei future. sewer, water, and sanitation. Citizen Comments: V. City of Mexico Beach Meeting Minutes TUESDAY SEPTEMBER 24, 2024-6:00PM VI. Mayor Comments: VII. Council Comments: VIII. Staff Comments: Mayor Wolff asked for everyone to be safe and stay upt to date with the incoming storm. Mr. Smith: stated it would take approximately 5 to 7 days to get the old dredge removed. City Administrator - Mr. Smigielski discusses the challenges with thet townhome district, including issues with side setbacks and the need for clarification int the code. Jason Adams and Juli Danaher explain the history and current status of lot combinations and building code requirements. The council agrees to enforce the 10-foot side setback and to review and possibly amend the townhome district ordinance. Mr. Smigielski updates the council on the jetty project, noting that Dewberry has submitted the task order and that the project is not dead. The council is informed that the pickleball slats for the courts have been ordered and will bei installed by the publicworks department in the winter. City Attorney - Mr. Sloan had no additional comments. XI. Adjournment: Mrs. Hamilton and Mr. Adams motioned to adjourn the meeting at 8:09 6m. By: Attest: Mayor, Richard' Wolff City Clerk, Tammy Brunson City of Mexico Beach Meeting Minutes TUESDAY OCTOBER 8, 2024-9:00AM The City of Mexico Beach City Council meti in a regular meeting on Tuesday October 8, 2024, at 9:00 am at the Public' Works Building in Mexico Beach. Mayor Pro TemJ Jerry Smith and thet following Councilmembers were present: Linda Hamilton, Jason Adams and Tim Linderman. Mayor' Wolff was absent. Also present were City Clerk, Tammy Brunson and City Attorney Tim Sloan. I. II. Call to order: Mayor Pro Tem Smith called the meeting to order at 9:00: am. Consent Agenda: Meeting minutes from the August 20, 2024, and the August 27, 2024, minutes were approved unanimously. III. Special Appearances: 1. Tommy Davis shared a story about Troy Williams, the city's mechanic who was severely injured when his foot was caught under a vehicle. Mr. Davis praises the quick response oft three first responders who arrived within a minute and provided critical care to Troy. He mentions a gesture of appreciation from Michael at Killer Seafood, who offered to treat thei first responders to a meal and presents certificates to Avery Thomas, Chance Cunningham, and Brian Hunt to express gratitude for their actions. 2. Fire Chief Walker acknowledges Avery Thomas's five-year service in thet fire department and presents him with an accommodation bar and certificates for lifesaving and merit awards. He also recognizes the service of other fire department members, including Engineer Gallagher, Engineer McGann, and Engineer Hunt and 3. Utilities Director, Garrett Garland presented a detailed water quality report, explaining the source of Mexico Beach's water and the chlorination process. The report includes results from disinfection byproducts (DBPs) samples taken from Bay County and Mexico Beach. He explained the significance oft the haloacetic acid (HAA5) levels and the measures being taken to address them, including the installation of an aeration system. Questions from the public included water quality issues and the reasons for boil water notices, to 1. Ordinance 844 Increase sanitation rates FY25 (Second Reading) was brought to the table. Mr. Linderman motioned, and Mrs. Hamilton seconded to read Ordinance 844 by title only. Motion passed unanimously. No public comments were made. Mrs. Hamilton motioned, and Mr. Adams seconded to approve Ordinance 2. Ordinance 846 Increase water and sewer rates FY25 (Second Reading) was brought to the table. Mr. Linderman motioned, and Mrs. Hamilton seconded to read Ordinance 846 by title only. Motion passed unanimously. No public comments were made. Mrs. Hamilton motioned, and Mr. Adams seconded to 3. Ordinance 847 Floodplain requirements (Second Reading) was brought to thet table. Mr. Linderman motioned, and Mrs. Hamilton seconded to read Ordinance 847 by title only. Motion passed unanimously. Lisa Logan raises concerns about the city administrator's role in flood plain management and the lack of certification in flood plain management. Mrs. Hamilton motioned, and Mr. Linderman seconded to approve emphasizes the importance of having experienced and certified firefighters. which Mr. Garland provided explanations and reassurances. IV. Regular Business: 844. Motion passed unanimously. approve Ordinance 846. Motion passed unanimously. Ordinance 847. Motion passed unanimously. City of Mexico Beach Meeting Minutes TUESDAY OCTOBER 8, 2024-9:00AM IV. Regular Business = Continued 4. Mr. Davis discussed the misuse ofa a dumpster ati the boat ramp, including the disposal of large items like furniture and car parts. The cost of emptying the dumpster dailyi is highlighted, with estimates of $100 per ton. Council suggests a holistic approach to addressing the issue, including potential solutions like additional trash cans or a different location for the dumpster. Mr. Davis agrees to come back with recommendations Monte Bilbrey, 318 Hwy 98, raise concerns about flooding in his neighborhood, attributing it to new developments and changes in drainage patterns. He mentions previous efforts to address thei flooding, including cutting sand and installing storm drains. Mr. Smith suggests meeting with the concerned residents to discuss potential solutions and gather more information. He also reiterated thei importance of addressing the issues discussed and working together to find solutions. Lisa Logan reminded everyone about an but acknowledges the difficulty in finding a suitable solution. V. Citizen Comments: upcoming workshop on storm water management and encourages attendance. VI. Council Comments: Mr. Linderman recommends conducting an after-action review after major events like hurricanes to capture lessons learned and improve future responses. Speclferecommendations include providing timely information to citizens and having staff clear drains during heavy rain periods. Mrs. Hamilton supports the idea of a pre and post-emergency, service review and emphasizes the need for better communication and quicker action. Mr. Smith stated his dog Jay died last week, and he appreciated the support from citizens. Chief Walker announced October as Fire Prevention Month and the fire department's plans to visit elderly residents to change batteries and smoke detectors. Please contact him ify you know of someone in need. VII. Staff Comments: City Attorney- - Mr. Sloan had no additional comments. XI. Adjournment: Mrs. Hamilton and Mr. Adams motioned to adjourn the meeting at 10:12 am. By: Attest: Mayor Pro Tem, Jerry Smith City Clerk, Tammy Brunson City of Mexico Beach Meeting Minutes TUESDAY OCTOBER 22,2024-6;00PM The City of Mexico Beach City Council met in a regular meeting on Tuesday October 22, 2024, at 6:00 pm at the Public Works Building in Mexico Beach. Mayor Richard Wolff and thet following Councilmembers were present: Linda Hamilton, Jason Adams, Jerry Smith and" Tim Linderman. Also present were City Administrator, Chris Truitt, City Clerk, Tammy Brunson and City Attorney Tim Sloan. I. II. Call to order: Mayor Wolff called the meeting to order at 6:00 pm. Consent Agenda: Meeting minutes from the September 19, 2024, and the October 15, 2024, minutes were approved unanimously. IV. Regular Business: 1. Salt Creek Phase II Final Plat approval was brought to thet table. Elizabeth Moore with Anchor CIE and Chris Shortt with Dewberry presented the final plat and were available for questions. Discussion included the parking lot for beach access, stormwater and lift stations. Mr. Adams motioned, and Mr. Smith seconded to approve the Salt Creek Phase II final plat. Motion passed with a 41 to 1 vote. No vote was Mrs. Hamilton. 2. Kayak launch bid was brought to thet table. January Bertaccini with Public Works explained the purchase needed to complete the kayak launch. This purchase is reimbursable through a DEP grant the city was awarded in 2023. No public comments were made. Mr. Linderman motioned, and Mrs. Hamilton seconded to approve the purchase oft the floating dock through AccuDock for $40,000.00 or less. Motion passed 3. Jetty bid and construction phase services was brought to the table. Mr. Truitt explained the task order from Dewberry: for $88,000.00 for the bidding and construction phase oft the jetties project. This is a FEMA reimbursable expense. No public comments were made. Mr. Linderman motioned, and Mr. Smith: seconded 4. Task order from tpci for LDR updates was brought to the table. Mr. Truitt explained the LDR has not had a full update since 2019. There are several items that are missing, irrelevant, need to be added, clarified and updated. Mayor Wolff: stated the money in the budget was to update the Comprehensive Plan, but it does not need to be updated until 2027. Money might be better spent on the LDC now and the Comprehensive Plan later. Mr. Linderman motioned, and Mr. Smith seconded to table the task order until additional information can be gathered to determine ifaf full update is needed, orj justi individual changes. Motion 5. KK Storm payment request was brought to the table. Mr. Truitt explained KK Storm was responsible for debris removal after Hurricane Michael. Currently there is an outstanding amount due of $612,289.81 for services. Of that amount, all parties agree that $313,440.11 was billed correctly and is due to KK Storm. These funds are FEMA reimbursable. The remaining $299,453.70 is being disputed due to the cost billed per load was not what was agreed upon on the contract, The increase in cost is being attributed to having to use a disposal site that was further away. KK: Storm states they were giving verbal approval from prior administration for the additional cost, but documentation cannot bet found back up this claim. Open public comment 6:48 pm. Mark Garrison with KK Storm gave background information on the issue. Closed public comment 6:54 pm. Mr. Smith motioned, and Mrs. Hamilton seconded to approve payment to KK Storm in the amount of $313,440.11 for debris removal after Hurricane Michael. Motion passed unanimously. unanimously. to approve the Dewberry task order for $88,000.00. Motion passed unanimously. passed unanimously. City of Mexico Beach Meeting Minutes TUESDAY OCTOBER 22, 2024-6:00PM IV. Regular Business - Continued 6. Peddler Ordinance discussion was brought to the table. Mr. Truitt provided a draft of Ordinance 848 for clarification on what council wanted to see in a peddler Ordinance. He asked everyone to read through it 7. Address stormwater issues discussion was brought to the table. Mr. Linderman recommends havinga a written stormwater policy in place for high rain events or storms. This would consist of having staff at work, safety permitting, to monitor problematic areas and preventative measures prior to the event. Mr. Davis will and provide him with feedback on changes to be made prior toi thet first reading. bring a policy back to the next meeting for approval or changes. 8. Mr. Truitt went over the monthly financial report and answered questions. V. Citizen Comments: Rock Kries asked about overgrown lots and hurricane damaged houses not cleaned up yet. He asked why have ordinances ify you are not going to enforce them. He suggested al list of violations on the website so the public can see whati is being done. Mr. Smith: suggested meeting with Code Enforcement in Port St. Joe to see how they! handle these situations. Steve Cox commented on lot maintenance and asked if Public Works could do the cleanup.. Judith Black thanked Chief Walker for what the fire department does in October for Fire Prevention Month. Lisa Logan asked for an update on the beach renourishment project and the Hwy 98 Mayor Wolff welcomed new City Administrator, Chris Truitt, and invited everyone to the Meet and Greet at the Driftwood Inn on October 241 from 5:30 pm to 7:30 pm. With Chris in place, all agreed they are ready to Mr. Linderman recommends putting the Projects List on the website for the citizens to see. He expressed frustration with FEMA regarding the last few projects that need to be completed and asked if we should contact local political higher ups to help get the ball rolling. Mrs. Hamilton announced the Mutt Strutt would be held a Under the Palms Park on October 26th from 4:00 pm to 5:30 pm. Mr. Adams talked about grant money and purchasing budgeted items. Mr. Smith said the old dredge should be removed in a week. Mr. Truitt stated he and his family are excited to be here and look forward to meeting everyone at the Meet and Greet. He said they have moved into a rental house and are now starting the mission to find a new paving and turn lane project. VI. Mayor Comments: move forward with Chris hiring a Finance Director. VII. Council Comments: VIII. Staff Comments: home. City Attorney - Mr. Sloan had no additional comments. XI. Adjournment: Mrs. Hamilton and Mr. Adams motioned to adjourn the meeting at 7:45 pm. By: Attest: Mayor, Richard Wolff City Clerk, Tammy Brunson City of Mexico Beach Meeting Minutes TUESDAY NOVEMBER 26, 2024-9:00AM The City of Mexico Beach City Council met in ar regular meeting on Tuesday November 26, 2024, at 9:00 am att the Public' Works Building in Mexico Beach. Mayor Richard Wolff and the following Councilmembers were present: Linda Hamilton, Jerry Smith and Tim Linderman. Jason Adams was absent. Also present were City Administrator, Chris Truitt, City Clerk, Tammy Brunson and City Attorney Tim Sloan. I. II. Call to order: Mayor Wolff called the meeting to order at 9:00 am. Consent Agenda: Meeting minutes from the November 12, 2024, minutes were approved unanimously. IV. Regular Business: 1. Purchasing Policy amendment for extension of contracts was brought to the table. Mr. Truitt introduced the amendment to the purchasing policy related to the BDI contract, necessitated by FEMA regulations. The amendment allows the city council to extend the contract renewal period in extenuating circumstances. No public comments were made. Mr. Linderman motioned, and Mrs. Hamilton seconded to amend the Purchasing Policy to allow for renewal and contract extensions. Motion passed unanimously. 2. Cost of moving utilities for Hwy 98 expansion at 15th street was brought to the table. Mr. Truitt presented thei issue ofi installing turn lanes at 15th Street as part of the highway 98 resurfacing project. The initial cost estimate for moving utilities (storm water, sanitary sewer, and water lines) is $450,000. During public comment, Lisa Logan expressed concerns about the necessity and cost of the turn lanes. Chuck Smith, a local business owner, opposes the right-hand turn lane due to potential parking and safety issues at his property, and: suggests removing the turn lanes altogether. Council members discuss the high cost and feasibility of the turn lanes, considering alternative solutions. Mrs. Hamilton motioned, and Mr. Linderman 3. Discussion for the Land Development Code revisions potential schedule was brought to thet table. Mr. Truitt outlined a proposed schedule for the LDC, including workshops andi feedback sessions with the Planning and Zoning (P&Z) board and citizens. The schedule includes al P&Z workshop on December 16 and a second workshop on. January 8, followed by a final meeting on. January: 131 to gather all feedback. Mr. Linderman recommends hiring at facilitator to help manage the process and ensure it stays on track. The council agrees tot the proposed schedule and emphasizes the importance of clear communication and guidance for the P&Z Rock Kries inquired about zoning changes and backflow preventer testing for citizens. Lorene Lindsey suggests streamlining the code by addressing simple changes and clarifications, such as defining 'public notice."T The council acknowledged the suggestions and agrees to consider them in the upcoming workshops seconded to remove the turn lanes from the project. Motion passed unanimously. board. Citizen Comments: V. and feedback sessions. City of Mexico Beach Meeting Minutes TUESDAY NOVEMBER 26, 2024-9:00AM VII. Council Comments: VI. Mayor Comments: Thanksgiving. VIII. Staff Comments: Mrs. Hamilton asked for everyone to remember to bring cookies for the Tree Lightning event and thanked Mayor Wolff said Chris will bet taking Wednesday off to move into his new house. He wished everyone Happy Mr. Davis provided updates on heavy rain event procedures, trash pickup schedules, and storm water ditch maintenance. The council discusses the need for a secure dumpster at the boat ramp to prevent bear access and monitor waste disposal. Mr. Davis suggests moving the dumpster to City Hall andi implementing a fence and camera system, with a cost estimate of around $3,000. The council agrees to apply similar security measures to the boat ramp dumpster. The council discusses the need for a program/amnesty dayt to handle the disposal of large items, such as refrigerators and washers, and considers partnering with Gulf County for this service. Mr. Daivs agreed to look into the feasibility and cost ofs such a program and report back to the council. Mr. Davis also stated the drainage issues at 4th street are FDOT's responsibility. He will be meeting city workers for decorating the city. Mr. Smith said let's all be thankful. with them next week to address the issue and explore a potential fix. City Attorney- - Mr. Sloan had no additional comments. XI. Adjournment: Mr. Smith motioned, and Mrs. Hamilton seconded to adjourn the meeting at 9:58 am. By: Attest: Mayor, Richard' Wolff City Clerk, Tammy Brunson City of Mexico Beach Meeting Minutes TUESDAY DECEMBER 10, 2024-9:00AM The City of Mexico Beach City Council meti ina a regular meeting on Tuesday December 10, 2024, at 9:00 am at the Public Works Building in Mexico Beach. Mayor Wolff and thet following Councilmembers were present: Linda Hamilton, Jerry Smith, Jason Adams and Tim Linderman. Also present were City Administrator, Chris Truitt, City Clerk, Tammy Brunson and City Attorney Tim Sloan. I. II. Call to order: Mayor Wolff called the meeting to order at 9:00 am. Special Appearance: Beach Restoration Project Update. Kimberly Shoaf, Tourism Director for Mexico Beach, provides an update on the beach restoration project. The project is the first full-scale beach restoration project for Mexico Beach, focusing on the critically eroded section from 37th Street to 15th Street. Equipment and heavy machinery will be delivered around January 6th, with dredging starting at the end of. January and completion by April 15. The project is weather-dependent and will include vegetation planting and construction. Lieutenant Mike Guy, with the FWC, discusses the importance of dune protection and the challenges of preserving dunes and vegetation. He highlights the need for public awareness and education about dune preservation to prevent damage to wildlife and property. Examples from other counties, such as Flagler County, are provided to illustrate successful public awareness campaigns and emergency orders. The importance of walkovers for public access to the beach is emphasized to avoid trampling critical wildlife zones. Lieutenant Guy suggests that the city consider enforcement actions to protect dunes but emphasizes the goal of education and awareness. Chris Truitt mentions the need to draft an ordinance with penalties for dune violations, like Miami Beach's $500 fine. Lieutenant Guy thanked Kimberly and the city for their efforts and mentions the need for future discussions on enforcement. The project includes US Fish and Wildlife approval and is being conducted outside of sea turtle nesting and shorebird seasons. III. Regular Agenda: 1. Mayor Wolff brought regular agenda item 4, Duke Energy easement at the CDC building to the table. Chris Truitt and Kimberly Shoaf discuss the Duke Energy easement for electric vehicle charging stations at the CDC. The project is funded by Duke Energy and will link travelers from one corridor to another, providing a tourism draw. The easement agreement includes at termination clause if the CDCI host agreement terminates ore expires. Mr. Linderman motioned, and Mrs. Hamilton seconded to approve the easement agreement with Duke Energy. Motion passed unanimously. IV. Special Appearance Continued: 2. Recycling Services and Franchise Agreement update. Richard Brecken, provides an update on the recycling collection services in Franklin County. The services have started in Franklin County, and the City of Port St. Joe has issued al business license for the recycling company. The council discusses the logistics of recycling pickup in Mexico Beach, including the use of 200-gallon exterior deck boxes. The council requests a cost proposal for the recycling bins and weekly pickup schedule. City of Mexico Beach Meeting Minutes TUESDAY DECEMBER 10, 2024-9:00AM V. Regular Agenda - Continued: 2. Setback Variance Request for 111 38th Street was brought tot the table. Mrs. Brunson swore in speakers for the quasi-judicial hearing. Allara Mills Gutcher with tpc, provided a detailed history of the setback variance request for 111 38th Street. The request is based on a city council decision from October 7, 2020, requiring a seven and al half-foot setback on each: side of the structure. The planning board reviewed the request and recommended denial based on the six-point test for variances. Lance Watson with SCE passed out new information regarding the 6ft easement lot that is on the north side of the property. If that was taken into consideration along with the 2.21 ft setback they are currently asking for, that would leave 8.21 ft on the north side and 7.5 on the south side oft the property. The council discussed the intent of the townhome district and the need for clear setback requirements. Mr. Adams motioned, and Mrs. Hamiton seconded to refer the request back to the planning and zoning board for further review and consideration oft the newi information 3. Amendment to Townhome District Setbacks was brought to thet table. Allara Mills Gutcher with tpc presented the proposed amendment to the townhome district setback requirements. The amendment clarifies the setback requirements for detached single-family homes and the need for attachment easements. The council discusses the importance of clear language in the code to avoid future issues with setbacks. The council agrees to proceed with the amendments and requests additional input from the planning and zoning board. The council emphasizes the need for clear and consistent setback requirements to ensure proper development in the townhome district and ask for the changes to be presented at the next 4. Farmdale Phase Two Annexation Agreement was brought to the table. Chris Truitt presents the Farmdale phase two annexation agreement for the council's approval. The agreement includes ai timeline for horizontal development and the start of the annexation process. The council discusses the importance of the agreement fori future development in the Farmdale area. No public comments were made. Mr. Adams motioned, and Mr. Linderman seconded to move forward with the agreement and authorizes the mayor to 5. Pier and Municipal Building Update was brought to the table. Chris Truitt provided an update on the pier and municipal building projects. FEMA has requested al bid package for the pier project to determine the cost and ensure proper funding. The council discusses the importance oft timely completion of the pier project. Mr. Adams questions the bid process and the feasibility of getting a number from FEMA to move forward with the project. Ryan suggests involving the design firm, BDI, in the bidding process to purchase materials upfront, which could help lock in costs. He also explains the bid process, noting that the city can accept or reject bid responses, and that FEMA will base their costing on the received bids. Mayor' Wolff and Ryan discuss the escalation of costs over the past six years, with Mayor Wolff suggesting a bid that includes annual cost escalation. Mr. Linderman mentions a similar project that cost $27 million, highlighting the potential cost increases over time. Ryan clarified that FEMA would approve the bid cost but not the project until environmental approvals are completed. Mr. Linderman expresses frustration with the delays caused by other agencies in the environmental approval process. Chris Truitt mentions the additional cost of extending the project 2001 feeti into deeper water, which may be the city's responsibility. Mr. Smith encourages the council to put pressure on the agencies involved to expedite the process. Mr. Linderman provided. Motion passed unanimously. meeting as an ordinance. sign the document. Motion passed unanimously. suggests submitting a congressional inquiry to apply pressure on the agencies. City of Mexico Beach Meeting Minutes TUESDAY DECEMBER 10, 2024-9:00AM 5. Ryan with Atkins, continued with an update on the municipal building project, noting that FEMA has issued a new determination memo with increased funding. The council discusses the options for appealing the determination memo and the importance of clear communication with FEMA and the state. Ryan discusses the importance of having a legally mandated schedule for FEMA to respond, with a specific date in January for submitting the appeal package. Chris raises concerns about FEMA's potential denial and the need for additional funding to move the site, mentioning a $4 million budget. Ryan and Chris discuss various scenarios, including the possibility of not receiving the additional $500,000 and the need for alternative funding options. Ryan outlines the appeal process, which will 6. Planning and Zoning Committee. Appointments were brought to the table. Chris Truitt recommends reappointing Jack Kerrigan, Steve Cox, and Larry Henderson to the Planning and Zoning Committee. Mr. Sloan raises concerns about the need for alternates and their participation in meetings. Mayor Wolff and Mr. Sloan discuss the current rules for alternates and the possibility of changing them in the land development code. The council unanimously approves the reappointment oft the Planning 7. Citizen Communications and Code Enforcement App discussion was brought to the table. Chris Truitt presents a mobile application for resident communications, code enforcement, and citizen request management. The appi includes features like citizen reports, notifications, and code enforcement tracking, which can improve efficiency and transparency. Mrs. Hamilton and Mr. Linderman express support fort the app but raise concerns about the budget and the need for further research. Mayor Wolff suggests waiting until the next fiscal year to assess the budget and make a decision. take six months, and the need to make decisions based on the outcome. and Zoning Committee members. VI. Citizen Comments: John Harrell on behalf of the Special Events Committee thanked various individuals and departments for their support in organizing the Turkey Trot event. He announced the Gumbo Cook-Off will be on February 15 and encourages residents to participate. Funds raised from the Gumbo Cook-Offgo Mr. Linderman provides updates on the kayak launch and the 15th Street pedestrian bridge, noting that both projects are progressing well. Mr. Smith talked about the Golf Cart Parade and Tree Lighting. Mr. Adams asked about removal of the old dredge. Chief Walker discussed the Christmas morning delivery of presents to children in the city and encourages residents to report new addresses to ensure participation. Mrs. Hamilton raises concerns about the disposal ofa a loaded syringe found byar resident and the lack of testing by the police department. Lt. Williams explains the lack of a victim, witness, or suspect, and the cost considerations for testing. Mrs. Hamilton emphasizes the importance oft testing City Administrator- - Mr. Truitt introduced Mike Snyder as the new Finance Director. Mike Snyder shared his background and current living situation as he moves to the area. The council expresses excitement about the newi finance director and his potential contributions to the city. directly to the. July 4th fireworks display. VII. Council Comments: to understand the presence of drugs in the community. VII. Staff Comments: City Attorney- Mr. Sloan had no additional comments. City of Mexico Beach Meeting Minutes TUESDAY DECEMBER 10, 2024-9:00AM XI. Adjournment: Mrs. Hamilton and Mr. Adams motioned to adjourn the meeting at 11:33 am. By: Attest: Mayor, Richard Wolff City Clerk, Tammy Brunson % JAMESMOORE December 18, 2024 To thel Honorable Mayor and City Council Members, City of Mexico Beach, Florida: Youl have requested that we audit the financial statements of the governmental activities, thel business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Mexico Beach, Florida (the City) as of September 30, 2024, 2025, 2026, 2027 and 2028, and for the years then ended, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Inaddition, ifapplicable, we will audit the City's compliance over major federal award programs and major state projects for the years ended September 30, 2024, 2025, 2026, 2027 and 2028. We are pleased to confirm our acceptance and our understanding ofthis audit engagement by means of this letter. Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance: regarding the City's major federal award programs and major state projects. The objectives of our audit of the financial statements are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is al high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), and in accordance with Government Auditing Standards, and the provisions of Chapter 10.550, Rules of the State of Florida, Office of the Auditor General, will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error: and are considered material ift there is as substantial likelihood that, individually ori int the aggregate, they wouldi influence thej judgment made by a1 reasonable user based on the The objectives ofc our compliance audit are to obtain sufficient appropriate audit evidence toi form an opinion and report at thel level specified in the governmental audit requirement about whether the City compliedi in all material respects with the applicable compliance requirements and identify audit and reporting requirements specified in the govemmental audit requirement that are supplementary to GAAS and Government Auditing Standards,i ifany, and perform procedures to address those requirements. Accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the Governmental Accounting Standards Board (GASB) require that supplementary information, such as managements discussion and analysis (MD&A) or budgetary, comparison information, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.. As part of our engagement, we will apply certain limited procedures to the required supplementary, information (RSI) in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management's responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by U.S. GAAP.This RSI willl bes subjected to certain limited procedures but financial statements. will not be audited: 1. Management's discussion and analysis 2. Budgetary comparison schedules (if presented as RSI) 3. Pension and OPEB schedules City of Mexico Beach, Florida December 18, 2024 Page 2 Supplementary information other than RSI will accompany the City's basic financial statements. We will subject the following supplementary information to the auditing procedures appliedi in our audit ofthel basic financial statements and perform certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and additional procedures in accordance with GAAS. We intend to provide an opinion on whether the following supplementary information is presented fairly in alli material respects ini relation tot thel basic financial statements as a whole: 1. Schedule of expenditures of federal awards and state financial assistance (ifapplicable) 2. Combining and nonmajor fund schedules (ifapplicable) Data Collection Form Ifa applicable, prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility, if the Data Collection Form is applicable. The form will summarize our audit findings, amounts and conclusions. It is management's responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. Your may request from us copies of our report The Data Collection Form, if applicable, is required to be submitted within the earlier of 30 days after receipt of our auditors' reports or nine months after the end of the audit period, unless specifically waived bya ai federal cognizant or oversight agency: for audits. Data Collection Forms submitted untimely are one of for you to include with the reporting package submitted toj pass-through entities. the factors in assessing programs at al higher risk. Audit of thel Financial Statements We will conduct our audits in accordance with GAAS and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General oft the United States of America (ifapplicable); the audit requirements ofTitle2U.S. Code of] Federal Regulations (CFR) Part 200, Uniform. Administrative Requirements, Cost Principles, Audit Requirements, for Federal. Awards (Uniform Guidance)(ifa applicable); Section 215.97, Florida Statutes, Florida Single Audit Act (ifapplicable), andt the provisions of Chapter 10.550, Rules of the State of Florida, Office of the. Auditor General (if applicable). As part of an audit of financial statements in accordance with GAAS, and in accordance with Government Auditing Standards, and the provisions of Chapter 10.550, Rules of the State of Florida, Office of the Auditor General, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mistepresentations, or the override ofcontrols. City of Mexico Beach, Florida December 18, 2024 Page 3 Obtain an understanding oft the system of internal control in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fairj presentation. Conclude, based on the audit evidence obtained, whether there are conditions or events, considered int the aggregate, that raise substantial doubt about the City's ability to continue as a going concern Because of the inherent limitations of an audit, together with thei inherent limitations ofi internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS and the standards applicable to financial audits contained in Government. Auditing Standards, issued by the Comptroller General ofthel United States of America, and the provisions of Chapter 10.550, Rules of the State of Florida, Office of the Auditor General. Please note that the determination of abuse is subjective and Govemment/uditing Standards does Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other We will issue a written report upon completion of our audit of the City's basic financial statements. Our report will be addressed to the governing body oft the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature oft these circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s) to our auditors' report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unablet to form or have not formed opinions, we: may decline to express opinions or to issue ai report as ar result of this engagement. In: accordance with the requirements of Government. Auditing Standards, we will alsoi issue a written: report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective We also will issue a written report as required by Chapter 10.550, Rules of the State of Florida, Office of audit oft the financial statements that we. have identified during the audit. for ai reasonable period oft time. not require auditors to detect abuse. periods. ofthe audit and, therefore, no such opinion will be expressed. the Auditor General upon completion of our audit. Significant Risks Identified Wel have identified the following preliminary significant risks of material misstatement as part ofour audit planning, which are being communicated to comply with auditing standards and do not represent any specific finding and/or concerns related to the audit: Override ofinternal controls by management City of Mexico Beach, Florida December 18, 2024 Page 4 Improper revenue recognition due to fraud Improper use ofrestricted: resources Our final communication of significant risks identified will take place upon completion of our audit. Audit(s) of Major Program and/or Major Project Compliance Ifapplicable, our audit(s) oft the City's major federal award program(s) and/or state project(s) compliance will be conducted in accordance with the requirements of the Single Audit Act, as amended; the Uniform Guidance; and Chapter 10.550, Rules ofthe State of Florida, Office oft the Auditor General; and willi include tests of accounting records, a determination of major programs and/or projects in accordance with the Uniform Guidance, Chapter 10.550, Rules of the State of Florida, Office of the Auditor General, and other procedures we consider necessary to enable us to express such an opinion on major federal award program and/or major state project compliance and to1 render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major federal award programs, and the applicable compliance requirements occurred, whether due to fraud or error, and express an opinion on the City's compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk ofnot detecting material noncompliance resulting from fraud is higher than for that resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control. Noncompliance with the compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence thej judgment madel by ai reasonable user oft the report on compliance about the City's compliance with the requirements oft the federal programs as Our procedures will consist of determining major federal programs and, performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each oft the City's major programs, and performing such other procedures as we consider necessary in the circumstances. The purpose of those procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Also, as required by the Uniform Guidance, we will obtain an understanding of the City's internal control over compliance relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each ofthe City'si major federal award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will communicate to you, regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we have identified during the audit. for us to modify our opinion or withdraw from the engagement. awhole. Guidance. City of Mexico Beach, Florida December 18, 2024 Page 5 Chapter 10.550, Rules oft the State of Florida, Office of the Auditor General requires that we also plan and perform the audit to obtain reasonable assurance about whether material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major state projects, andi the applicable compliance: requirements occurred, whether due to fraud or error, and express an opinion on the City's compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and Chapter 10.550, Rules of the State ofF Florida, Office of the Auditor General, will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, mistepresentations, or the override of internal control. Noncompliance with the compliance requirements is considered material ift there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements oft the state projects as a whole. Our procedures will consist of tests of transactions and other applicable procedures described in the State ofFlorida State Projects Compliance Supplement for thet types of compliance requirements that could have ac direct and material effect on each of the Organization' 's major state projects, and performing such other procedures as we consider necessary in the circumstances. The purpose of these procedures will be to express an opinion on the City's compliance withi requirements applicable to each ofi itsi major state projects in our report on compliance issued pursuant to Chapter 10.550, Rules oft the State ofl Florida, Office oft the Also, as required by Chapter 10.550, Rules of the State of Florida, Office oft the. Auditor General, we will obtain an understanding of the City's internal control over compliance relevant to the audit in order to design and perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major state project. Our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Chapter 10.550, Rules of the State of Florida, Office of the Auditor General. However, we will communicate to you, regarding, among other matters, thej planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over As part of a compliance audit in accordance with GAAS, and in accordance with Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of material noncompliance, whether due to fraud or error, and design We will issue ai report on compliance that will include an opinion or disclaimer of opinion regarding the City's major federal award programs and/or major state projects, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such Auditor General. compliance that we have identified during the audit. and perform audit procedures responsive to those risks. report will not express an opinion on: internal control. Management's. Responsibilities Our audit will be conducted on the basis that management acknowledge and understand that they have 1. For the preparation and fair presentation oft the financial statements in accordance with accounting 2. For the design, implementation, and maintenance of the system of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, responsibility: principles generally accepted: in thel United States of America; whether due to fraud or error; City of Mexico Beach, Florida December 18, 2024 Page 6 3. Fori identifying, in its accounts, all federal awards received and state financial assistance expended 4. For maintaining records that adequately identify the source and application of funds for federally 5. For preparing the schedule of expenditures of federal awards and/or state financial assistance (including notes and noncash assistance received) in accordance with the Uniform Guidance (if applicable) and Chapter 10.550, Rules of the State of Florida, Office of the Auditor General 6. For the design, implementation, and maintenance of internal control over federal awards, state 7. For establishing and maintaining effective internal control over federal awards and state financial assistance that provides reasonable assurance that the City is managing federal awards and state projects in compliance with federal and state statutes, regulations, and the terms and conditions of 8. Fori identifying ande ensuring that the City complies with federal laws and states statutes, regulations, and thet terms and conditions of federal award programs and state financial assistance projects and implementing systems designed to achieve compliance with applicable federal and state statutes, regulations, rules, provisions of contracts or grant agreements, and the terms and conditions of 9. For disclosing accurately, currently, and completely the financial results of each federal award and 10. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directlyr relate tot the objectives oft the audit, including whether related: recommendations 12. For addressing the findings and recommendations of auditors, for establishing and maintaining a process. to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit 13. For following up and taking corrective action on current year audit findings and preparing a 14. For submitting the reporting package and data collection form to the appropriate parties; 15. For making the auditor aware of any significant contractor relationships where the contractor is during the period and the federal programs under which they were received; funded activities; requirements (ifapplicable); financial assistance, and compliance; the federal awards and state financial assistance; federal award programs and state financial assistance projects; major state project in accordance with the requirements of the award; 11. For taking prompt action when instances of noncompliance are identified; have been implemented; findings; corrective action plan for such findings; responsible for program compliance; 16. Top provide us with: a. Access to all information ofwhich management is aware thati is relevant tot the preparation and fair presentation oft the financial statements, including the disclosures, and relevant to federal award programs and state financial assistance projects, such as records, b. Additionali information that we may request from management for thej purpose ofthe audit; C. Unrestricted access to persons within the City and others from whom we determine it d. A written acknowledgement of all the documents that management expects to issue that will be included in the annual report and thej planned timing and method ofissuance oft that e. Ai final version of the annual report (including all the documents that, together, comprise the annual report) in at timely manner prior to the date oft the auditors' report 17. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 18. For acceptance of nonattest services, including identifying the proper party to oversee nonattest documentation, and other matters; necessary to obtain audit evidence. annual report; and work; City of Mexico Beach, Florida December 18, 2024 Page 8 Because oft the inherent limitations of an examination engagement, together with thei inherent limitations of internal control, an unavoidable risk exists that some material misstatements may not be detected, even though the examination is properly planned and performed in accordance with the attestation standards. However, we will inform you of any material noncompliance with laws or regulations, uncorrected misstatements, fraud, and when relevant to the underlying subject matter or subject matter information, internal control deficiencies that comes to our attention, unless clearlyinconsequemtial. Management. Responsibilities Our examination will be conducted on the basis that management and, when appropriate, those charged with governance, acknowledge and understand that they have responsibility: 1. For ensuring the City complies with the Statutes; 2. For the design, implementation, and maintenance of internal control to prevent, or detect and correct, misstatement of or noncompliance with the Statutes, due to fraud or error; 3. For selecting the criteria for the evaluation oft the City's compliance with the Statutes; 4. Determining that such criteria are suitable, will be available to the intended users, and are a. Access to all information of which management is aware that is relevant to compliance with the Statutes, such as records, documentation, and other matters and that you are b. Additional information that we may request from management for the purpose of the Unrestricted access to persons within the City from whom we determine it necessary to appropriate for the purpose of the engagement; and 5. Toprovide us with: responsible for the accuracy and completeness of that information; examination; and obtain attest evidence. As part of our examination process, we will request from you written confirmation concerning representations made to us in connection with the examination. Reporting We will issue a written report upon completion of our examination of the City's compliance with the Statutes. Our report will be addressed to the governing body. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the engagement. City of Mexico Beach, Florida December 18, 2024 Page 9 Nonattest Services We will perform the following nonattest services: Preparation of financial statements, Schedule of Expenditures of Federal Awards and State Financial Assistance (if applicable), Data Collection Form (if applicable), depreciation schedules (ifrequested), Annual Financial Report (if requested), and assistance with cash to accrual adjustments and year-end adjustments (if requested). With respect to any nonattest services we perform, we will not assume management responsibilities on behalf of the City. However, we will provide advice and recommendations to assist management of the City in performing its responsibilities. The City's management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual (Chris Truitt, City Administrator and CRIC Contracted Accountant) to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) designing, establishing, and maintaining the system ofinternal control, including the process used Our responsibilities and limitations of the engagement are as follows. We will perform the services in accordance with applicable professional standards. This engagement is limited to the services previously outlined. Our firm, ini its sole professional judgment, reserves the right to1 refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving. journal entries. Our firm may advise the City with regard to different matters, but the City must make all decisions with regard to those matters. Any nonattest services performed by us do not constitute an audit performed in accordance with to monitor the system ofi internal control. Government Auditing Standards. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents or support for any other transactions we select for testing. We do not host, are not the custodian of, and accept no responsibility for your financial and non-financial data. You acknowledge that you have sole responsibility for the storage and preservation ofy your financial During the course of the audit, we: may observe opportunities for economy in, or improved controls over, your operations. We willl bring such matters to the attention of the appropriate level of management, either You agree to inform us of facts that may affect the financial statements of which you may become aware during thej period from the date of the auditors' report to the date the financial statements are issued. Zach Chalifour is the service leader for the audit services specified in this letter. The service leader's responsibilities include supervising the services performed as part of this engagement and signing or and non-financial data. orally or in writing. authorizing another qualified firm representative to sign the reports. City of Mexico Beach, Florida December 18, 2024 Page 10 Our fees for the audit of the financial statements and related services, including expenses, for each of the fiscal years included ini this engagement are as follows: Single Audit Per Major Program (if requested) $4,000 $4,250 $4,500 $4,750 $5,000 Depreciation Schedules $3,000 $3,000 $3,000 $3,000 $3,000 Year Ending September30, Audit Fee 2024 2025 2026 2027 2028 AFR $2,000 $2,125 $2,250 $2,375 $2,500 (ifr requested) (ifrequested) $45,000 $47,500 $50,000 $52,500 $55,000 Our ability to provide services in accordance with our estimated fees depends on the quality, timeliness, and accuracy oft the City'srecords, and, for example, the number of general ledger adjustments required as a result of our work. We will also need your personnel to be readily available during the engagement to respond in a timely manner to our: requests.. Lack of preparation, poor records, general ledger adjustments We will noti increase the fee over the agreed amount as long as the scope oft the audit is consistent with the scope outlined in the Request for Proposal. The City is not completely in control of the scope ofwork for future years. Significant required changes may be mandated by federal, state, other regulatory agencies or accounting and auditing standards boards or by significant staff changes within the City. For these reasons, if the scope of the audit changes significantly from the scope outlined in the RFP, we would present for This engagement may be terminated by. either party for noncompliance with the terms as noted in this engagement letter. The parties will provide 60 days' notice of their intention to terminate the engagement. Upon completion of this engagement with the audit for the year ended September 30, 2028, new engagements can be entered into for up to two additional five-year periods, at the option ofboth parties. At the conclusion of our audit engagement, we will communicate to those charged with governance the and/or untimely assistance may resulti in an increase of our fees. approval, prior to commencing work, why an adjustment in fee is warranted. Any such engagements willl be evidenced by a new engagement letter. following significant findings from the audit: Our view about the qualitative aspects of the City's significant accounting practices; Significant difficulties, ifany, encountered during the audit; Uncorrected misstatements, other than those we believe are trivial, ifany; Disagreements with management, ifa any; Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant tot those charged with governance regarding their oversight ofthe financial Material, corrected misstatements that were brought to the attention of management as a result of Significant issues, if any, arising from the audit that were discussed, or the subject of Ina accordance with the requirements of Government Auditing Standards, we. have attached a copy of our reporting process; our audit procedures; Representations we requested: from management; Management's consultations with other accountants, ifany; and correspondence, with management. latest external peer review report of our firm for your consideration and files. City of Mexico Beach, Florida December 18, 2024 Page 11 The audit documentation for this engagement is the property of James Moore & Co., P.L. and constitutes confidential information. However, we may be requested to make certain audit documentation available to a grantor or their designee, a federal or state agency providing. direct or indirect funding, or the U.S. Government Accountability Office pursuant tos authority given to itby laws or regulation, ort toj peer reviews. Ifrequested, access tos such audit documentation will bej provided under the supervision of. James Moore & Co., P.L. personnel. We will notify you of any such request. Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and regulators. The regulators and agencies may intend, or decide, to distribute the copies or information contained therein to others, including other Int the normal course of business, we use the services of third-parties and individual contractors, which are not employees of James Moore & Co., P.L. Those services are performed at various levels and in various aspects our engagements including bookkeeping, tax retumn preparation, consulting, audit and other attest services and clerical and data entry functions. It is possible that during the course of the engagement we may utilize such third-party and individual contractor sources. Additionally, the engagement will, of necessity, require us to handle confidential information and we expects third-party service providers and individual contractors to maintain the confidentiality of such information. To be reasonably assured that unauthorized release of confidential client information does not occur, we require those individuals and third-party service providers to enter into a written agreement to maintain the confidentiality of such information. Your acceptance of this arrangement acknowledges and accepts our handling of confidential This engagement letter includes the attached James Moore & Co., P.L. Standard Terms and Conditions as Attachment A which is incorporated and made aj part oft this engagement letter by reference. We appreciate the opportunity to be ofservice to the City of Mexico Beach, Florida and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. Ifyou agree with the terms of our engagement as described in this letter, please sign the enclosed governmental agencies. information including access by third-party and individual service providers. copy and return it to us. Very truly yours, & Meoc : 6.,.L. JAMES MOORE & CO.,P.L. RESPONSE: This letter correctly sets forth the understanding of the City ofM Mexico Beach, Florida. By_ Title_ Date Mexico Beach Monthly Financial Report- December 2024 Revenues: Ad Valorem" Taxes Franchise Fees Utility Taxes Communication Services Tax Gas Tax State Revenue Sharing Licenses &I Permits Building Permits Fines & Forfeitures Interest Income Impact Fees Other Governmental Revenue (Incl. Grants) Charges for Services Miscellaneous Revenue/Other: Sources TOTALI REVENUES: Expenditures: Elected Officials City Administrator City Clerk Legal Development Services General Government Police Fire Code Enforcement General Maitrenance Roads & Streets Canal Vehicle Maintenance Parks & Recreation Debt Services General Fund Budgeted. 4.241.271.00 173,000.00 104,000.00 25,000.00 180,000.00 211,500.00 66,800.00 100,000.00 3,900.00 190,000.00 77,000,00 1,641,200.00 72,519.00 1,490,880.00 8,577,070.00 Budgeted 62,778,00 174,196.00 130,893.00 150,000.00 100,000.00 576,723.00 1,128,974.00 1,146,937.00 96,441.00 353,492.00 879,213.00 2,066,324.00 172,334.00 965,365.00 8,003,670.00 Budgeted Revenue 2,857,510.00 Budgeted Expenditures 2,857,510.00 Budgeted Revenue 1,714,807.00 Budgeted Expenditures 1,714,807.00 Budgeted Revenue 743,386.00 Budgeted Expenditures 743,386.00 Current Month 19,940.00 12,790.00 19,940.00 1,464.00 2,532.00 7,905,00 10,000.00 10,339.00 9,902.00 30,241.00 Current Month 4,593.00 15,431.00 11,917.00 8,143.00 250,463.00 44,425.00 88,997.00 94,752.00 7,557.00 14,266.00 23,857,00 17,424.00 9,122.00 63,570,00 654,517.00 Current Month 123,708.00 Current Month 87.478.00 Current Month 124,348.00 Current Month 88,075.00 Current Month 64,281.00 Current Month 52,197.00 YTDI Received 395,287.00 58,863.00 35,176.00 3,856.00 58,863,00 74,851.00 6,184.00 16,818.00 9,025.00 60,757.00 3,615.00 10,000.00 23,924.00 16,492.00 773,711.00 YTDI Expenditures 15,103.00 47,196.00 37,636.00 13,823.00 258,256.00 140,205.00 266,991.00 296,014.00 24,391.00 48,377.00 92,290.00 55,138.00 32,184.00 144,883.00 1,472,487.00 YTDI Revenue 382,996.00 YTDI Expenditures 392,508.00 YTD Revenue 371,495,00 YTDI Expenditures 275,387.00 YTDI Revenue 189,939.00 YTD Expenditures 180,669.00 %1 Received 9.32% 34.02% 33.82% 15.42% 32.70% 35.39% 9,26% 16.82% 231:41% 31,98% 4.69% 0.61% 32.99% 1.11% 9.02% %Spent 24.06% 27.09% 28.75% 9.22% 258.26% 24.31% 23,65% 25.81% 25.29% 13.69% 10.50% 2.67% 18.68% 15.01% 18.40% %Collected 13.40% %Spent 13.74% %Collected 21.66% %Spent 16.06% %Collected 25,55% %Spent 24.30% TOTALENPERDITURES: Sewer Department Water Department Sanitation Department