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HomeMy WebLinkAbout2005-08-01 Budget Workshop City Commission Meeting Minutes MINUTES OF BUDGET WORKSHOP DANIA BEACH CITY COMMISSION MONDAY, AUGUST 1, 2005 - 9:00 A.M. 1. Call to Order Mayor Castro called the workshop to order at 9:07 a.m. 2. Roll Call Present: Mayor: Anne Castro Commissioners: Bob Anton John Bertino C.K. McElyea City Attorney: Tom Ansbro City Manager: Ivan Pato City Clerk: Louise Stilson Absent: Vice-Mayor: Patricia Flury Also Present: Patricia Varney, Finance Director Nicki Satterfield, Assistant Finance Director Bonnie Temchuk, Assistant to the City Manager Dominic Orlando, Director of Public Services and Utilities Leo Williams, Public Services Department Superintendent Lieutenant Barbara Stewart, BSO Mary McDonald, Director of Human Resources and Risk Management Laurence Leeds, Director of Community Development Chief Ken Land, Fire Department Michael Cassano, Deputy Fire Chief Kristen Jones, Director of Parks and Recreation 3. Presentation and discussion on the City Manager's Proposed FY05/06 Operating Budget Appropriations: 9:00 a.m. City Manager/Finance Director Summary Presentation City Manager Pato presented his opening statement: In December of 2004 a report on the long term financial forecast for the City of Dania Beach was presented to the Commission. As you will recall, the report was somewhat alarming with respect • to the short term financial picture but optimistic about the future provided that we take action now. The report reminded the Commission that the City had experienced frequent financial shortfalls between 1994 and 2001. It also stated that there was little or no new development during that period of time which resulted in little or no expansion of its tax base. The report went on to state that "as a result of the frequent revenue shortfalls between 1994 and 2001 the City could expect to have recurring annual losses unless expenses are trimmed or revenues raised!" It also stated that unless the City expands its tax base our taxpayers will face ever increasing taxes. The City has not raised its millage rate since October 1, 2002. Since then costs have risen by as much as 12% yearly, especially in the area of salaries and benefits much of it as a result of past collective bargaining agreements. In 2004, the City Commission, reluctant to raise taxes, chose instead to transfer $1.4 million dollars from its fund balance to balance the budget. Even though we have completed some limited residential development in various parts of our City which contributed to our tax base, the magnitude of the City's needs are well known and long overdue. The additional revenue generated by the new development is not enough to meet our needs. Some of these needs include: Rehabilitating the City's infrastructure (necessary to redevelop) Updating many of its buildings, parks and public services complex • Reducing Flooding and storm water related issues Adding a BSO patrol zone (5 deputies) in our western areas Our proposed budget is both challenging and ambitious. It allows for long overdue capital improvements as well as services designed to address the needs of a changing City. It includes requests for increased staffing necessary to keep up with the growing demands for better service. It will improve public safety, enhance our quality of life and addresses many of the priorities identified by this Commission. We could have brought you a "politically convenient budget" that called for no increase in our taxes and that once again would require the City to dip into its fund balance, This, we did not do! Instead we have before you the budget we believe addresses the necessities of moving the City forward. I believe this Commission will do the right thing and not just the politically convenient thing. We look forward to a business like exchange of information and to discussing any adjustments you may wish to make. Patricia Varney, Finance Director, presented a Power Point presentation to the Commission as an overview of the proposed budget: Minutes of Budget Workshop 2 Dania Beach City Commission Monday,August 1,2005—9:00 a.m. • Personnel Services Pension Plans are funded based on actuary calculation: General Employees: $691,110; Police: $117,054; and Fire: $581,423. Total increase compared to FY 2005 is $265,383 COLA (citywide): 3.2% based on maximum cap in the General Employee Contract Part-time salaries: 2% decrease due 3 to 4 months of operations at C.W. Thomas Park and P.J. Meli Park prior to construction/renovation 10% increase in health insurance (RFP issued in July) 10% increase in Worker's Compensation Insurance IM Includes In-house Attorney personnel costs IM Overall Personnel Services increase compared to FY 2005: $1,231,629 (9%) Operating Expenses E 2% decrease in Property and Liability Insurance BSO, one additional patrol zone effective 1011105 $592,672 IM Grant Matching: $50,000 ® ADA Consultant: $50,000 U3 Economic Development $100,000 FA Contract Building Official and other inspection service from the County: $392,000 M Elimination of Retainer Contract Service with Weiss Serota 01 Overall Operating Expenses Increase from FY 2005: $125,501 (1%) Other Uses EM Aid to Private Organizations: $11,000 (Based on Commission action on 1/25/2005 . $5,500 will be ear-marked for Area on Aging) Is General Fund Contingency: $900,000 (to fund for unforeseen circumstances, worker's compensation, rising fuel costs, FPL rate increase, etc.) E3 Fire Reserve remains at FY 2005 level: $156,559, plus interest earnings M Reserve for Comprehensive Plan (3 cents gas tax): $148,000 ProjZram Modifications El CRA Director (contract position): $52,000 ® Capital Project Management (contractual): $225,000 Laptops for Code/Bldg. Inspectors: $18,880 10 Contract Services—Traffic Planning Project: $175,000 El Reconfiguration of Office Space in Community Development: $10,500 19 City Planner: $77,241 El Click to Gov. Software: $2,340 IM 1 Permit Specialist position, eliminate Compliance Inspector: No fiscal impact E9 Fire Inspector: No fiscal impact to millage 0 Exchange Server: $15,100 19 HRMP update on Compensation plan: $4,500 Investigative Services: $5,000 19 Administrative Assistant in HR: $24,166 0 July 4 celebration: $15,000 Minutes of Budget Workshop 3 Dania Beach City Commission Monday,August 1,2005—9:00 a.m. Capital Proiects Fund IM Site 4449 Resource Mgmt. & Conceptual Plan: $100,000 ER ADA Transition Plan: $80,300 03 Beach Improvements: $387,500 ER Fire Rescue Vehicles: $150,000 (from Fire Reserve) 93 Public Services Compound: $650,000 ($300,000 from Water and Sewer Funds) in Various parks improvements and recreation centers renovation projects, such as C.W. Thomas parking lot repaving, overhang roof on patio areas at Frost Park Telephone system: $56,990 19 Additions and Renovation of City Hall: $1,466,640 Revenue Sources III Misc. Revenues — reduction of approx. $40,000 (a one time fee received in FY 2005 for renewal of Comcast franchise agreement) IM Parking — may experience reduction of beach patrons due to the construction of the Pier Restaurant Beach Renourishment Project 93 Pier Lease— loss of revenue for FY 2006 due to construction of Pier Restaurant IM Does not include budget for Impact Fees as it can only be used for Capital expansion projects. Enterprise Fund M Consultant Engineer costs: Mainly due to infrastructure projects funded through SRF ® Interfund Transfers from Water and Sewer funds to General Fund is $459,995, an increase of$17,693 (4%) IS Reserves for Water Fund for SRF Debt Service: $314,450 ® Reserves for Sewer Fund for SRF Debt Service: $230,300 FY 2005/2006 Proposed Annual Rates 01 Millage Rate: 6.69 (4.69% increase) ® Garbage Rate: $237.67 (1% increase) Stormwater Rate: $23 per ERU (no increase) Fire Assessment: $96.64 for residential (2.2% increase) Water Rate: 12% increase Sewer Rate: 8% increase Other Sources of Balancing the Budget Is Water Fund: Retained Earnings: $14,359 Impact Fees: $50,000 ® Sewer Fund: Retained Earnings: $82,555 Impact Fees: $50,000 Possible Ways to Reduce the Millage Rate ® Appropriate Police Impact Fees for debt service of 803 Building: $33,639 • Minutes of Budget Workshop 4 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. Reduce reserve for Fire assessment to recoup subsidy to Medical Facilities (highly recommended) Increase O.L./Permit/Inspection Fees (FY 07) Contract out Aquatic Lifeguard Services: $190,385 Commissioner Bertino remembered the annexed area was promised they would have the same Police coverage as every other area in the City of Dania Beach. He questioned the additional zone. Commissioner Anton clarified he was the Chief when those promises were made. We promised to provide the same level of service as the rest of the City; it required an additional zone, but was cut out of the 2002 Budget by the Commission, and we've been trying to bring it back every year since then. The current zone is too large and is covered by one deputy. The zone needs to be divided which would provide the same level of service provided to the rest of the City. He noted no Commission has approved it since 2002 and we have not lived up to the promises we made to the people in the west. City Manager Pato advised the BSO contract calls for it to begin October 1, 2005, subject to Commission approval. Mayor Castro is concerned that we may need additional Police services when Jai Alai begins its slots operation. • City Manager Pato commented the Hard Rock Casino also brings impacts to the western community. 9:45 a.m. Mayor and Commission City Manager Pato noted the Budget is unchanged except for the standard increases in salaries because the Commission is now eligible for COLA. The travel account is budgeted at $2,000 per Commissioner; travel requests are approved by the Commission on the Consent Agenda. He noted the City Manager and Commissioners are subject to different rules from the general employees and distributed a new travel request form to the Commission for their use. Commissioner Bertino commented the monthly expense account should be included in the salary. He also feels $104,000 for a CRA Director is high, and there are competent people who would work for less money. City Manager Pato clarified it is not for an individual, but an entire firm and this is the going rate. Commissioner Bertino commented CRA Directors get the whole thing moving; when you go to a firm, they do not have an individual moving it forward. He believes we should have an individual and it would be money well spent. Mayor Castro commented we should keep the money where it's at for now. Minutes of Budget Workshop 5 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. Commissioner Bertino feels the per diem travel amounts are ludicrous. He would like the Commissioners and Department Heads to attend more training and conferences. City Manager Pato responded we use the IRS rate which is higher than the State rate. He will look at it and bring it back at the first public hearing. He asked the Commission about the $1,500 for special events. The Commission was comfortable with the $1,500. Commissioner Bertino suggested rolling the expense account into salary. Finance Director Varney responded Pension is not part of the contribution on the expense account; an additional 30% would need to be appropriated by the City for Pension, which would be a big increase. The Commission agreed to leave the expense and salary accounts separate. 10:15 a.m. City Manager/Information Services/General Administration City Manager Pato commented there is no change in the proposed Budget. There is no request for additional personnel; the present salaries increase by COLA, merit, and step increase. Mayor Castro commended Information Services on the architecture, structure and pricing of their budget. Commissioner Bertino questioned if we would be better off to lump all the engineering services by bidding out the service and contracting with a reputable firm. City Attorney Ansbro responded we did that and hired Camp Dresser and McKee, as recommended by Public Services. Commissioner Bertino questioned if we could do this with other services. City Manager Pato will look into it. He discussed Economic Development as a way to sell the City; attract businesses to the City; and partnering with the Chamber of Commerce. Mayor Castro commented we need to entice retailers to the City with all the development going on in the City. Commissioner Bertino commented we used to advertise in the Dania Press every month and tell people what was coming up. He would like to see monthly information in the Press, with at least two pages of in-depth information. • Minutes of Budget Workshop Dania Beach City Commission Monday,August 1,2005—9:00 a.m. ® City Manager Pato clarified we used to have one page per month, plus a Calendar of Events. Because we had limited budgets, we changed to every other month in the Dania Press, and started a bi-monthly newsletter. Commissioner Bertino argued the newsletter does not get out, it is not mailed. He thinks we need to go back to the Dania Press. City Manager Pato commented he took the liberty of working with the Miami Herald several months ago on an insert. He indicated we need to advertise outside of Dania Beach, not just inside Dania Beach. Mayor Castro commented communication is an issue, and a lot of communities and neighborhoods do not feel included. She would like to see more creativity in this area. Commissioner Bertino suggested adding $20,000 to the Budget for local communication. City Manager Pato will plug in a change for $20,000. Commissioner Bertino remarked a$900,000 Contingency fund is high. Commissioner Anton commented the Commission regularly takes money out of contingency; however, contingency should be for emergency situations. He stated we need to have funds in case a hurricane hits the City. He indicated he would like to see a larger contingency. • City Manager Pato remarked it is time to discuss his performance evaluation, and distributed copies of his evaluations to the Commission. He stated he is pleased with the evaluations he received from the Commission. He indicated the matrix is the same used for all general employees when they moved to Pay-for-Performance. The Commission agreed the City Manager would receive a 5% salary increase with the funds coming out of contingency. Mayor Castro recessed the workshop at 10:53 a.m. She reconvened the workshop at 11:00 a.m. 10:30 a.m. Department of Public Services/Utilities Leo Williams, Public Services Department Superintendent, explained the Engineering position has been moved to Community Development; this is an in-house position and would be a City employee. Commissioner Bertino asked if we had approached FP&L for any type of discount program. Commissioner Anton commented we need to stay on top of the infrastructure improvements; it needs to coincide with FDOT plans, and he wanted to make sure the budget was adequate to handle it. We need to insure that basic services are in place in order to move forward. Minutes of Budget Workshop 7 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. • Dominic Orlando, Public Services Director, responded that we are currently coordinating with FDOT for the work on Dania Beach Boulevard, US 1, and Stirling Road. Commissioner Bertino asked if we were moving forward with the concept of developer agreements. Mayor Castro asked how impact fees tie into developer agreements. City Attorney Ansbro responded we had a study done on impact fees and the report is being reviewed by staff to make sure it is correct. The new fees will be brought forward for the Commission to adopt before October I". Anyone who applies for a building permit after that date will pay the new rates. He indicated it would be the call of the City Commission if the new rates would be applied to those who have already received site plan approval. Commissioner Bertino commented Public Services should utilize businesses in the City, specifically well drilling, when going out for bids. Mayor Castro commented she wants the process to be equal, but only awarded to local vendors if it is the best price. 11:15 a.m. Department of Human Resources and Risk Management City Manager Pato commented a couple of years ago the Commission told us that until the issues of pension and benefits are resolved, we could hire full-time temporary people with no benefits. We have been doing this for the past two and a half years and it has made it very difficult to hire qualified people. He asked Mary Mc Donald to discuss how cumbersome the process has been, and stated we are looking for new direction. He noted we have one Collective Bargaining agreement in place, and hopefully, the other will be soon. Mary McDonald, Director of Human Resources and Risk Management, advised we currently have five transitional positions which are positions that have been approved in the past two years, but do not have any benefits. We were able to make it more attractive by allowing these positions to accrue time off and holiday pay. However, we are still at a disadvantage by not providing health and pension benefits. Ms. Varney explained the positions are programmed into the Budget as second tier level of benefits. Our Ordinance governs that as soon as you are a full-time employee you become a member of the pension plan. City Manager Pato noted the Ordinance would need to be changed if the Commission wanted to adjust that. He commented by offering a competitive package you can attract better employees. We would like to convert these positions into full time positions and keep the pension issue open until such time the Commission chooses a second tier of pension benefits for the General Employees. In order to bring employees in, we need to change the Ordinance. We need to know where the Commission stands on this subject. • Minutes of Budget Workshop 8 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. • Mayor Castro clarified the process used by the City during the past two years. She stated we should treat full time employees as full time employees; if we cannot afford to fund it, then we need to find another way to do those tasks. Commissioner Anton commented the reasoning of the Commission was because we were looking at new insurance and pension plans, and we would be going into a second tier. He does not understand why it was never brought back to the Commission to be changed. He has a problem hiring employees without health insurance, but pension could be retroactive to the date of hire. He commented the Ordinance should be changed; however, he does not know if we can retroactively place employees in the FRS (Florida Retirement System). City Manager Pato responded he did not bring it forward sooner because we were hoping to bring a new Firefighters Union contract forward. Hopefully, we will know what the contract contains in the next few days. He thinks if we can get a perspective employee to sign an agreement for a future pension plan it would allow us to move forward. He stated we want updated direction from this Commission. Commissioner Anton responded this is the way to go; however, we need to check with FRS to see if we could go retroactive. City Manager Pato suggested setting aside the money that would have gone to FRS into a 401(k) for that employee. • City Attorney Ansbro remarked he thought we were going to calculate the cost of letting these people join the current plan. Ms. Varney responded she did the calculation, but besides the FRS, our biggest concern is whether we are allowed to change our Ordinance without going through the Bargaining Unit. The calculation for the ten people would impact the 2006 Budget by $60,000, not including employer contributions which is one year behind. The total impact is $116,000 for 2007. Ms. McDonald explained our employment offer letters say they are going to be hired as a regular position with no benefits pending the outcome of Collective Bargaining agreements and new pension and health plans. Once these plans are in place they would become permanent employees with benefits. City Manager Pato clarified the 2006 Budget is calculated with the FRS multiplier for all new General Employee positions, and health insurance. Commissioner Anton suggested offering health benefits to the new positions, but the pension issue needs to be resolved. He indicated we should find out from our Labor Attorney if we can offer future pension benefits and have the City Attorney draft a letter for new hires. He stated if we are going to attract people, we are going to have to be competitive. He wants to know where we stand on salaries. • Minutes of Budget Workshop 9 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. • Ms. McDonald responded with the recent survey we received, she believes we are fairly competitive. Commissioner Bertino believes in hiring from within, but we need to train employees and offer to assist with the training and cost. City Manager Pato commented we need to address what it will cost to retain employees, as opposed to what it costs to replace employees. He indicated he needs to develop his replacement in case something happens to him. The consensus of the Commission was to move forward and resolve the issues. Ms. McDonald recommended staying with our current Risk Provider for workers' compensation and property/liability insurances. She advised his services are unparalleled and has been instrumental in getting us discounts and offering special deals with training programs that give us additional safety discounts on our worker's comp. She noted we hire consultants to write the specifications for bids, and we did not budget to go out for bids this year. 11:45 a.m. Finance There were no questions on the Finance Department Budget. 12:00 p.m. Lunch Break • Mayor Castro recessed the workshop for a lunch break at 11:54 a.m. Mayor Castro reconvened the workshop at 12:47 p.m. 12:30 p.m. City Attorney Attorney Tim Ryan was present for this section of the Budget discussion. City Attorney Ansbro reported the City continues to be in good shape, and we have no litigation that is not covered by insurance. There is no ongoing litigation being covered by his law firm. He indicated the Labor Counsel should not be needed; $150,000 belongs to Jim Crosland. Ms. Varney clarified $100,000 belongs to the Labor Attorney; $50,000 for Land; and $15,000 for other. City Manager Pato commented if we have to litigate the Firefighters Binding Arbitration, it could take up to $100,000; hopefully, we will not have to spend any of it. He acknowledged we would always have ongoing labor issues to address through specialized attorneys. Mayor Castro questioned why Code and Lien legal went up. • Minutes of Budget Workshop 10 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. Attorney Tim Ryan responded last year we budgeted less than what was anticipated to be the legal expenses. He indicated we have been more aggressive in the foreclosure of outstanding liens in the past couple years. He noted that during the first nine months of this year we have collected $154,000, so that projects us to be close to where we were last year. We also collect additional amounts for Municipal Ordinance prosecutions in County Court and that figure is one that comes directly into the City. He is furnishing monthly statements on new cases filed with the County Court. Mayor Castro questioned if revenue would be higher with a Special Magistrate and the number of foreclosure cases. Ms. Varney responded the Special Magistrate should cost $8,000, but we do not know how much revenue will be generated in the first year; Code violation revenue is a guess. Attorney Ryan responded in the past, liens remained on the title until somebody tried to sell the property, but the Commission directed us to be more aggressive with foreclosures. City Attorney Ansbro noted we acquire the property after foreclosure, declare it surplus property and put it up for sale. City Manager Pato commented we have a good track record of selling those properties for a profit. Attorney Ryan commented it is important to insure compliance, and that we not abate cases down to our costs, because people feel they can let their property be in disrepair and there is no consequence. He suggested we try to measure the abatements based on the gravity of the violation and the efforts taken by the defendant. He thinks the Special Magistrate will generate additional revenue and we should be able to work through the backlog of cases. He indicated the Special Magistrate would meet twice per month and be able to work through the backlog and be an additional revenue generator. Commissioner Bertino would like to do away with the abatement hearings completely. Commissioner Anton commented this should be discussed at a Commission meeting. He would like the City Attorney to handle some of the smaller claims, which was the purpose of bringing the position in-house. City Manager Pato remarked we have one of the highest legal costs per capita in Broward County. Commissioner Anton challenged the City Attorney to reduce the legal costs, at some point. Commissioner Bertino thought the airport fee was accumulating yearly; he thinks we should be putting money away yearly for when it is needed. Minutes of Budget Workshop 1 1 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. City Manager Pato responded it is not what the Commission directed, however we did budget an additional $150,000 in this Budget to increase the amount in the fund. Commissioner Bertino noted the Commission needed to do a performance appraisal for the City Attorney. City Attorney Ansbro responded the appraisals he received range between seven and eight overall, in each of the categories. The Commission consensus was to add the appropriate figure to the salary. City Attorney Ansbro clarified the Firm's retainer would stop on October lst, and he and his assistant would become City employees. 1:00 P.M. Department of Community Development Commissioner Anton questioned how the increase in staffing levels, which are overdue, would affect overall performance of the department. He wants to insure the positions will benefit the department. Laurence Leeds, Director of Community Development, responded the objective is to increase productivity. He feels it is more important to add one additional Permit Specialist to the Building Division because they need help pushing the paper to turn the plans around faster. The Planner position is necessary to assist with Site Plan review and Small Scale Plan review. He explained the long-term approach is to stay with Broward County for building plan review. Mayor Castro asked if other Commissions did Site Plan review. Mt. Leeds responded big cities usually defer it to staff; some small cities have Commission review, but that adds considerable time to the process. If he could change three things they would be: 1) major changes in our Zoning Code; 2) not send Site Plans to the City Commission, except big projects; and 3) staffing and more space. City Manager Pato commented the second floor of the Nyberg Swanson House would be used for Fire Inspection services. We have no plans of using the downstairs or throwing the Chamber of Commerce out of the building. He noted Human Resources needs to move out of our rental space and temporarily move to I.T. Parker. Commissioner Bertino stated the most critical component in this City is Community Development, and this should be the last department to cut. He opposes a County employee being our Chief Building Official; he suggested adding money to the Budget to lure him away from the County. He remarked additional staff is needed in this department, and we need to start planning Griffin Road. He suggested Fire Inspection Services could use the Commission rooms as opposed to going to the Nyberg Swanson House. ® The Commission consensus was to allow staff to use the Commission office space. Minutes of Budget Workshop 12 Dania Beach City Commission Monday,August I,2005—9:00 a.m. Commissioner Bertino stated the Nyberg Swanson House would always remain with the Chamber of Commerce; the building was given to the City by Commissioner McElyea with the idea it be used for a Chamber of Commerce. City Manager Pato commented this is not the way to get set up to deal with what is coming down the road. These shortcuts will just create more confusion in the long run. We have construction coming to City Hall and we have plans to add a second floor; to bring more people to this building during construction is counter-productive; we need to move people out. He indicated he may need to move out of his office. He remarked we need to remove the uncertainty that comes from development in the City by taking the politics out. Mr. Leeds noted he needs an additional Permit Specialist and an Engineering Inspector. Commissioner Bertino wants to set the Budget for the biggest return for his money, and Community Development is the best place for taxpayer money. He remarked we need the income before we spread money around. City Manager Pato agreed with Commission Bertino, but you can't give additional staff and do it under the guise that you do not want to raise taxes. He suggested the Commission consider a higher tax rate than the one proposed. Commissioner McElyea questioned if Boisey Waiters could be redeveloped and used for ® additional space. He asked if Eminent Domain could be used for a driveway to allow access to the property. City Manager Pato responded it is outside of the CRA area. He indicated the Commission would have to decide what to do with the property. Mayor Castro asked if there were other services that could be contracted out. Mr. Leeds responded it would be much simpler to send out the Zoning Code, however, we do not have money in the Budget and it would cost up to $200,000. He noted we currently contract for a Traffic Engineering Consultant, a Certified Arborist, and Professional Inspectors. He advised there are no funds budgeted for Griffin Road, Stirling Road, or the CRA Architectural Design Guidelines. Commissioner Bertino and Mayor Castro agreed that money should be budgeted to have Griffin Road, Stirling Road, and Sheridan Street professionally developed. Commissioner Anton commented we are already looking at a 6.69 millage rate; he is not inclined to raise the millage rate above this amount. We need to achieve a balance, and do it fair and accurately throughout the City. He stated he likes the idea of multi-year budgets, and acknowledged there was not much in the Budget that could be cut. Minutes of Budget Workshop 13 Dania Beach City Commission Monday,August 1,2005—9:00 a.m. Mayor Castro is worried about staff attention on all the different projects. She agrees the east- west corridors need to be done, but she is not sure we would have the staff time and resources to support all that. City Manager Pato commented if the contingency fund stays healthy, we could look at it at mid- year. The Commission consensus was that Griffin Road should be the first area to study. 1:45 p.m. Police (BSO) Chief Cowart presented a brief overview of his department's budget: As each of you are aware, the Broward Sheriffs Office has been providing contractual police services to the City of Dania Beach since October of 1988. As of October 1, 2005, we will be entering into the third year of the current five year agreement between the City and the Sheriffs Office. The current agreement provides for 74 total employees which include 1 District Chief, 2 Lieutenants, 8 Sergeants, 51 deputies, 1 motorman, 1 passive drug detection canine and handler, 1 detention deputy, 6 CSA's and 3 clerical employees. These positions provide 24 hour a day, 7 days a week coverage to the City's residents, business community and visitors. The City is divided into seven patrol zones, with four zones on the east . side of the City, east of I-95 and three zones on the west side of the City, west of I-95. The west side zones include those areas of the City acquired by the City during an annexation vote in September 2001. In 2004, deputies assigned to Dania Beach responded to and answered 38,925 calls for service throughout the City. As of July 25, 2005, deputies have already answered 24,191 calls for service in 2005. In 2004 deputies assigned to Dania Beach affected 2,292 total arrests. This number places Dania Beach number five in the entire county in arrests generated. These numbers place us behind Deerfield Beach (2391), Fort Lauderdale (6162), Hollywood (4744), and Pompano Beach (5645). This year, as of July 31, 2005, deputies assigned to Dania Beach have affected 1408 total arrests. This number again places Dania Beach in the number five position behind the very same cities. In 2004 deputies and detectives assigned to Dania Beach executed 34 narcotics related search warrants throughout the City. This number places Dania Beach as the highest generator of search warrants of any of BSO's contract districts. In late 2003, the City Commission approved funding for a detail deputy to enhance law enforcement services in the western section of the City. Funding initially provided for one off- duty detail deputy six hours a'day, four days a week. In 2004, funding was expanded to six hours a day, seven days a week. As mentioned, this position is assigned to the western section of Minutes of Budget Workshop 14 Dania Beach City Commission Monday,August 1,2005—9:00 a.m. the City to address issues such as traffic enforcement, high visibility patrols and back-ups. During this time, the Sheriff's Office has made a diligent effort to provide this enhanced coverage. However, as a result of Homeland Security initiatives effecting Broward County, especially, the Fort Lauderdale/Hollywood International Airport and Port Everglades, deputies are working a greater amount of overtime rather than detail time. In this year's budget, we are looking to establish an eighth patrol zone in the western section of the City. The eighth patrol zone will add permanency to a high level of service throughout the City, especially, in the western sections. This will help our efforts in addressing the increase in calls for service generated by new development within the City and nearby. The creation of this zone will cost $49,306 monthly to the annual cost of our contract. Commissioner Bertino questioned the population of east versus west. Chief Cowart responded the density is greater on the east; the west is more spread out. He commented the types of calls they respond to are significantly different between the two areas. The west side is being impacted adversely by the development of the Hard Rock; and Bass Pro and IGFA generate much traffic on a daily basis. Commissioner Bertino questioned if there was any way to obtain funds due to the Hard Rock. Chief Cowart responded the Seminole Reservation is a Sovereign Nation. The Sheriff's Office recently signed a Mutual Aid Agreement allowing us to enter upon the Reservation, and he has developed a good relationship with the Seminole Police Chief and Assistant Chief. They have assigned two officers to assist us in the neighborhood, forty hours per week. He thinks Hollywood is in a more favorable position to go for impact fees from them because they border the Hard Rock property. Commissioner Bertino questioned if we were able to obtain Homeland Security grants due to our proximity to the airport and port. Chief Cowart responded we have obtained some funding. He noted Homeland Security is famous for Unfunded Mandates; but, our Deputies are now assigned weapons of mass destruction chemical suits. He commented LLEBG grants have been cut because of Homeland Security, and that personnel cannot be obtained with Homeland Security funding. Commissioner Bertino questioned if we could get funds from the airport. Chief Cowart responded last September the Sheriff created a Regional Work Group that is assigned to districts that are experiencing increases in crime, or have certain issues that are creating problems. He advised a thousand hours of additional manpower were brought into Dania Beach last year, with no cost to the City. We are getting resources from the Sheriffs Office. Mayor Castro suggested the City Attorney look to see if any precedence exists between an airport or seaport and surrounding cities before we approach this. Minutes of Budget Workshop 15 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. Mayor Castro recessed the workshop at 2:22 p.m. She reconvened the workshop at 2:33 p.m. 2:15 p.m. Department of Parks and Recreation Commissioner Bertino commented he has received complaints about parking and children entering the park through the fence at Meli Park. He indicated mothers are complaining about not being able to access the park with strollers unless they come in on Griffin Road. Kristen Jones, Director of Parks and Recreation, responded gates are no longer available due to the increased vandalism rate. They are asking to replace and repair all the fencing and make it higher. A wall was installed because large dogs are in the yard that backs up to the playground. Commissioner Bertino indicated he would help the neighborhood with a petition for the Recreation Department to install a gate so that mothers can enter with their strollers. He stated it would not cost a lot of money. He commented they also complained because the lights are not on during nighttime hours. Ms. Jones responded the lights shouldn't be on unless there is an activity scheduled. City Manager Pato will look into the gate issue. Commissioner Bertino wants more children activities at the parks, and would like longer hours at • both pools. Ms. Jones responded it would require more part-time Lifeguard hours in the Budget. She noted they change the hours during the school season. Commissioner Anton commented we need to insure that we are not targeting the same group of kids all the time; he strongly recommended this be coordinated better next year. He is pleased with the improvements at the parks, and noted an overhang is needed for the patio at Frost Park. He commented the Optimist Club does a phenomenal job at Frost Park and would like to see the programs expanded to other parks. Ms. Jones advised the July 4th celebration does not include the purchase of fireworks; she can rely on donations, but believes we need at least $10,000 budgeted and she can try to get the other $20,000 donated by Neptune. She noted the $15,000 Budget is for entertainment only. City Manager Pato would like to have sponsors for fireworks; he indicated additional funds could be taken from contingency. 2:45 p.m. Department of Fire and Rescue/Beach Chief Land reported our call volume has gone up 50% in the past three years; Insurance Services Office (ISO) rated us in the top 7%, Gold Standard; we are in the top percent of the busiest • stations in the nation for a city of 20,000; we continue to maintain our four minute response time; Minutes of Budget Workshop 16 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. • we finished installing GPS and AVL systems; installed over one hundred fire and smoke detectors free of charge to residents; and they bring in 38% of the dollars they request. Commissioner Bertino would like the City to work out a good price deal for citizens to purchase automatic defibrillators. He understands they are simple to use and do not cause harm and anybody can use them. He asked if the Fire Department could enter into a situation with the people who sell them so that we could get a bulk rate if citizens wanted to buy them. Chief Land responded the rate would be the same as they get through the grants. They are simple to use but you need to take a training class, and it is good to know CPR if you have a defibrillator. City Manager Pato asked Chief Cassano to address the Marine Safety staffing issues. Assistant Chief Cassano responded what we currently have in place is not sufficient to totally staff and man the department. They have been understaffed, and believe if they were able to fill all the part-time and full-time hours, along with the completion of the re-nourishment program, they would have adequate staff. He indicated the Marine Rescue Officers saw the greatest increase in pay with the revision of the pay plan, which should help with retention and attracting qualified personnel. The Budget has what they need to provide the service. He noted a lot of administrative hours have been freed up and those hours are now spent on the beach. He senses a higher level of professionalism since they took over the Marine Rescue Unit, and is comfortable that we can provide adequate services. • 3:15 p.m. City Clerk There were no questions on the City Clerk's Budget. 3:30 p.m. Capital Projects Fund Ms Varney advised the only thing reduced was the Public Services Compound. She noticed a mistake in Public Services vehicle replacement program and removed it. She noted an additional $40,000 was needed for the Project Manager for the Pier Restaurant to finish the project. We also have close to one million dollars in Debt Service. The Tree Preservation Fund has been growing and has $450,000 in the fund. The Debt Service Fund is the requirement for our Bond Documents that is mainly for the Pier when we issued the Half-Cent Sales Tax Bond. The Debt Service is $212,015 and is forecast to be paid in 2006, which is a transfer from the General Fund to the Debt Service Fund. 4:00 p.m. Revenue Ms. Varney advised the Budget is calculated at 6.69 mills. Commissioner Bertino asked how much would be realized if the millage remains at the current rate of 6.39. Minutes of Budget Workshop 17 Dania Beach City Commission Monday, August 1,2005—9:00 a.m. Ms. Varney responded $699,664; the roll back rate difference would be $1.8M (roll back rate is 5.62). Commissioner Bertino clarified if we keep the current millage rate we would need to cut $700,000 from the Budget. Commissioner Anton commented we need to decide on the millage today; we have not cut anything from the Budget, we increased it. We need to take a hard look at some areas and make a decision on what to do. He noted it is very difficult to find anything to cut out of this Budget. He is not sure where to cut because Public Safety is a priority, and infrastructure and Community Development are equal priorities. City Manager Pato believes this Budget will bring tax relief in the future. He would like to present a two year Budget next year in order to plan for future needs. Commissioner Bertino commented if we keep the 6.39 tax rate, it would give us the whole Budget as presented by the City Manager with a $200,000 contingency. City Manager Pato commented you don't want to go from having a healthy contingency to having only $200,000. We want to move this City forward; you can't do it for the same as last year. In his opinion, 6.69 is everything this City needs. Commissioner Bertino commented the Bonds generate a .2% increase in tax; the Fire • Assessment increased; Garbage increased 1%; Water rate increased 12%; and the Sewer rate increased 8%. He does not think people can stand more taxes. Mayor Castro agreed with the City Manager that the contingency fund should be higher. She stated she has a fiduciary responsibility; she thinks the problem is that we have had 20-40 years of things that did not get done, and it was irresponsible not to get to it sooner. She remarked we need to keep the contingency rate higher because we will dip into reserves if we do not. Commissioner Anton commented we need the contingency fund because we do not know what will happen in the upcoming year. To not have the proper contingency is irresponsible. He will not cut contingency, other items need to be cut. Mayor Castro noted we have not raised taxes in three years. Commissioner McElyea responded property values have increased. Commissioner Bertino remarked it was irresponsible to use $1.4M from reserves last year to balance the Budget. Ms. Varney pointed out that we've spent $350,000 in contingency this year; in 2004 we took $450,000 out of contingency. She advised during a hurricane, if the State is not declared emergency or disaster, we do not receive any FEMA funds. Last year we were not reimbursed • for all costs incurred during the hurricanes even though it was declared a disaster. Minutes of Budget Workshop 18 Dania Beach City Commission Monday, August 1,2005 —9:00 a.m. • Commissioner Bertino remarked the City could get a very low interest Bridge Loan from any bank in Broward County during an emergency and pay it back with FEMA money. City Manager Pato commented Commissioner Bertino is describing a formula for disaster; we are facing challenging and complex issues; costs have gone up dramatically in the past years; and bleeding of the City started in 1994 and continued until 2001. In the last three and a half years we have done a great job of bringing the City back to a healthy condition. He thinks residents will support a tax increase so that the City can move forward. He is concerned about what he hears because it is what got us to the situation we are in. Commissioner McElyea questioned why we were doing the Public Services Compound. We would be better to purchase our water from the County direct; and from Hollywood if we need it. This would eliminate moving the gas pump; we wouldn't need the tank; and we wouldn't need the water treatment. He indicated there were millions of dollars being thrown away. City Manager Pato remarked this is not the direction we were looking for from the Commission, but we will do whatever the Commission wants. Commissioner Anton questioned what would happen if we took this option. Mayor Castro cautioned that she would rather be in charge of our own water supply and would not want to rely on pricing of somebody else because the price will go up when water gets • scarce. City Manager Pato indicated this is a complicated issue to look at. There are other functions at the Public Services facility other than water. He recommended approving the not to exceed rate of 6.69 mills. He suggested looking at options the Commission is familiar with, such as contracting out Aquatic Services, and varying timetables for Public Safety matters. He will review the numbers and bring back options. Mayor Castro remarked we talked about full-time employees with no benefits, yet Commissioners are part-time employees with full benefits. She suggested maybe we should look at reducing the Commission benefits. 4. Adjournment Mayor Castro adjourned the workshop at 4:04 p.m. CITY OF DANIA BEACH ANNE CASTRO MAYOR-COMMISSIONER • Minutes of Budget Workshop 19 Dania Beach City Commission Monday,August 1,2005—9:00 a.m. • AT EST: , LOUISE STILSON CITY CLERK Approved:,August,23, 2005 • Minutes of Budget Workshop 20 Dania Beach City Commission Monday,August 1,2005—9:00 a.m.