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HomeMy WebLinkAbout1348 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION BUDGET WORKSHOP MEETING J U LY 31, 2002 1. Call to order Mayor Chunn called the meeting to order at 10:00 AM 2. Roll Call: Present: Mayor: . Robert H. Chunn, Jr. Vice-Mayor: Pat Flury Commissioners: John Bertino C.K. McElyea Bob Mikes City Attorney: Tom Ansbro City Manager: Ivan Pato City Clerk: Charlene Johnson 3. Presentation and Discussion on the City Manager's Proposed FY 03 Operating Appropriations: City Manager Pato advised that he is presenting a budget proposal that will allow the City to adequately function in the upcoming year and that he is looking forward to working with the City Commission on the completion of the final document. 10:00 a.m. — City Manager/Finance Director Summary Presentation Macciano Lewis, Acting Finance Director, provided a Power Point Presentation (attached hereto-see pages 1- 17) outlining the highlights of the proposed 02/03 FU budget. CONTINGENCY FUND: Commissioner Mikes was concerned that $210,000 allocated for the Contingency Fund would not be enough reserves for possible grant match opportunities that the City may have during the year. City Manager Pato advised that grant matching funds are in a separate fund and that the $210,000 Contingency Fund represents 5% of the proposed budget. Mr. Lewis advised that $75,000 had been set aside for matching grant fund opportunities. 0 MINUTES 1 JULY 31, 2002 BUDGET WORKSHOP Commissioner Mikes understood that as a result of the Pay Classification Study a number of employees have *een reclassified and that the salary adjustments are estimated to cost the City $100,000 in this budget. City anager Pato agreed that the figure is approximately $100,000 to bring employee salaries up to market level. He advised that the Pay and Classification Study would be presented to the City Commission at a forthcoming meeting and that a 4% COLA had been provided in the budget in accordance with the AFSCME Union contract for General Employees and that the 4% does include longevity. City Manager Pato stated his desire to eliminate longevity benefits for employees. Commissioner Mikes questioned whether amounts on the pension fund balances from the Police & Fire and General Employees Pension Funds are available and whether the budget provides a breakout of those expenditures. City Manager Pato advised that Contingency Funds would also be used for any pension fund contributions required of the City. AIRPORT ISSUE: Commissioner Mikes was of the opinion that the $250,000 set aside to fight the airport expansion would not be sufficient to win. Commissioner Mikes mentioned that there is a special interest group working in support of the expansion and that the City could lose neighborhoods with condemnation. He stressed the importance of protecting homes and also the integrity of the City's tax base. Commissioner Bertino clarified that $240,000 to $260,000 in legal fees has been set aside for the first year to fight the airport expansion. He pointed out that another major concern for the City in the airport fight is the protection of the City's tax base on Griffin Road, which will be the epic center for business in the future. Commissioner Bertino inquired as to whether staff had spoken with other cities impacted by airport expansion to determine if additional legal fees might be available to help the City fight the airport. City Manager Pato mentioned that he had been advised by Dave Keller, Finance Director for Hollywood, that Hollywood has not, Wo this time, budgeted any legal fees for the airport expansion issue. City Manager Pato stated that ntingency Funds could also be used for the airport legal matters and that $240,000 to $360,000 would be earmarked for the airport issue. PENSION FUNDS: Commissioner Bertino advised that the Police & Fire and General Employees Pension Boards have done an excellent job with investing pension funds and that each board's actuaries determine what the City must contribute annually to secure the integrity of the pension programs for employees. 'Commissioner Bertino stated that the City is obligated to pay amounts over and above what is not covered by the positive result from investments for each fund and he asked that staff obtain these figures from the actuaries. INSURANCE: Commissioner Bertino commented on the excessive increases in Health and Workers Compensation Insurance and advised that Workers Compensation premiums are based on the classifications provided for workers. Manager Pato advised that alternatives are being pursued by Mary MacDonald. DEBT SERVICE: Commissioner Bertino advised that the City Commission determined last year to structure a $3 million loan on a draw basis. He inquired as to whether debit service in the budget was predicated upon payments for the entire loan amount. Mr. Lewis was unable to respond. City Manager Pato advised that one part of the debt service had been used for the FPL settlement that was estimated at $400,000. Vice-Mayor Flury explained that the debt service amount includes debt from a 1967 Sewer Bond and six or seven other additional borrowings, and that the amounts are cumulative. She mentioned that the $3 million loan budgeted last year as a smaller portion of the debt service. Mr. Lewis stated that the City is paying around $225,000 debt MINUTES 2 JULY 31, 2002 BUDGET WORKSHOP service on the $3 million loan. Commissioner Bertino was of the opinion that the $3 million loan had to be Went within a short period of time in accordance with State Statute. Commissioner Bertino suggested that staff `research the refinancing opportunities for some older loans based on the positive interest rates, however, he cautioned that some prepayments may include substantial penalties. Vice-Mayor Flury advised that most of the debt service is at 5% interest and that it wouldn't be worth the expense to change the loan programs. Vice-Mayor Flury expressed her dissatisfaction that a Capital Improvement Program had not been included in the FY 02/03 proposed budget, which means that the budget is already off center. She was very disappointed that although a $3 million loan had been budgeted last year, park improvements had not been completed. She pointed out that Randy Wilkinson, Parks & Recreation Director, had assured her last year that "Buildings and Grounds' could be reduced because he had planned to resurface the tennis and baseball courts at Frost Park and construct new recreation buildings at CW Thomas Park and Frost Park. She expressed a concern that the money could get used elsewhere if the City did not get started with the CIP as outlined last year. In addition, she expressed her disgust with the condition of the bathrooms at the beach, which pose an embarrassment to the City. Vice-Mayor Flury was supportive of the airport funding and reclassification study as it would provide good job descriptions for employees. She suggested that the 12% salary increase might be reduced some and that there were other alternatives for the high cost of insurance. In addition, she thought reductions could be obtained from the proposed $1.1 million in Professional Services from all the departments and that the BSO Contract appears to include a 9% increase. Vice-Mayor Flury was not pleased that staff continues to refer to costs associated with the South Central annexation in 2001 as the annexation costs were added to last year's base amount. She pointed out that the Riverland annexation costs would not be a factor this year and that the amounts budgeted for postage need further review. commissioner McElyea agreed with the comments by Vice-Mayor Flury in regards to the delays with mpleting park projects over the years as well as other Capital Improvement Programs. In regards to the airport fight, he pointed out that Hollywood would support Dania Beach when the airplanes start flying over Emerald Hills. Commissioner Mikes pointed out that the City is an older community compared to many western cities and that medical benefits are higher because of benefits being paid on older employees. He mentioned that the City has also been significantly impacted over the past year with the settlement payments on the Tigertail Dredging and FPL suits. DEPARTMENT REVIEWS: CITY COMMISSION: No changes Donations: Macciano Lewis, Acting Finance Director, requested input from the City Commission on how staff should proceed with dealing with charitable contribution requests. Commissioner Bertino stated that the City Commission's obligation is to receive and use ad valorem tax funds for City purposes only and that it is very difficult to determine which charitable organizations deserve contributions over another. He mentioned that these agencies should contact Broward County for funding because Broward County has set up a funding mechanism for charitable organizations who provide social and community service programs in Broward County. In the past, bus bench revenues were used for charity organization donation requests and the Human Relations Board was given the authority to decide the stribution. MINUTES 3 JULY 31, 2002 BUDGET WORKSHOP Mice-Mayor Flury agreed that there are many charities that the City cannot divert tax money towards, however, he pointed out that there are agencies that provide services directly to citizens of Dania Beach. The Area Agency on Aging (AAA) depends on matching funds from cities in order to obtain matching funds from the State and they provides services to the elderly. Vice-Mayor Flury requested that bus bench revenues be used for AAA and pointed out that children services are covered under the $1 cent sales tax program. City Manager Pato reported that the bus bench contract was held up this year because of ADA compliance issues and that he expected to bring a contract to the City Commission soon and that revenues are between $12,000 and $15,000. Commissioner Mikes pointed out that Dania Beach has a higher population of low income and needy citizens compared to Parkland or Coral Springs and that these cities have an easier time meeting the 100% match contribution to-agencies like AAA. He suggested that the Human Relations Board investigate whether AAA meets the State match requirement without Dania Beach's contributions so that the City's funds might be given to another agency providing services to the City. Commissioner Mikes advised that the City of Parkland refused the Swim Central Grant because of the insurance requirements for the pool and asked whether staff had checked into the insurance requirements for the proposed Meli Park Aquatic Center. Bonnie Temchuk, Assistant to the City Manager and Grant's Coordinator, advised that liability insurance would be required once the pool was built and residents were using the facility. Commissioner Bertino thought liability insurance would be available through the Florida League of Cities. City Manager Pato suggested using a percentage of bus bench revenues to help residents who cannot pay water bills. Commissioner Mikes and Commissioner Bertino generally agreed that the City would not want to li ecome involved in a program like that based on State Statute restrictions and that the City cannot turn water f for needy families and that indigent citizens receive waivers. CITY MANAGER (Page 21 in the proposed budget) Mr. Lewis advised that a full time CRA Director is being requested at an estimated $34,000 a year. Page 18-Vice-Mayor Flury advised that $50,000 under Travel had been reduced in the 01/02 fiscal year budget and that a $50,000 reduction is showing again in fiscal year 02/03. Mr. Lewis agreed to provide additional review of the item. Page 20- Vice-Mayor Flury questioned the amount budgeted for auditing services. Carol Craig, Accountant, advised the Sean Davis & Associates is currently working on the GSBE 34 services and that further review will be conducted by Patricia Varney, Finance Director, who is slated to begin employment August 12. Vice-Mayor Flury thought the 02/03 figure may be reduced once staff obtains a breakdown of costs spent in fiscal year 01/02. It was mentioned that Sean Davis & Associates has been used by the City for over three years and that there was a need to advertise an RFP for auditing services this next year. Commissioner Mikes was concerned that the CRA Director and Main Street Director may be redundant staffing. City Manager Pato thought that once Main Street becomes more self-sufficient and independent from the City, the CRA Director and Director of Main Street have the potential of establishing a partnership for the best interest of the downtown and CRA area. City Manager Pato mentioned that the City appeared to show a willingness of giving Main Street two or three years to become self sufficient. age 21-Vice-Mayor Flury questioned the $200,000 figure provided on the "Transfers Out" line item. Mr. Lewis Ovised that this is a part of the debt service covering the bond for the '/2 cent sales tax requiring a 25 year MINUTES 4 JULY 31, 2002 BUDGET WORKSHOP ,6eriod to pay off. Carol Craig, Accountant, explained that sales tax money is placed in the debt service fund nd that, in the past, debt service was not included in the General Fund Budget. Patricia Varney, Finance Director, advised that, in the past, a mistake was made when the entire sales tax revenue was not shown and only a portion of the debt service fund was presented. Ms. Varney advised that the City needs to recognize the sales tax revenue coming into the City so that expenditures are off-set by revenues. Commissioner Bertino inquired as to why the auditors did not catch the problem. Carol Craig advised that the error was continued year after year and that she is speaking with the auditors about the matter. Vice-Mayor Flury questioned the $50,000 wage settlement amount and asked that it be removed until an explanation could be obtained. CITY CLERK Charlene Johnson, City Clerk, advised that the City entered into an Agreement with Archive America for the records at the Boisy Waiters Center to be removed to a safe facility in West Palm Beach and that the records are currently being inventoried and indexed in order to determine retention, preservation or destruction actions. City Clerk Johnson advised that she is working with Michael Sheridan, Public Works/Utilities Director, on clearing the facility of additional junked equipment at the site. The City Commission had no changes. CITY ATTORNEY Macciano Lewis, Acting Finance Director, advised that the City Attorney budget had been decreased from $502,500 to $440,000, as a result of a preliminary agreement established by City Manager Pato. City Manager Wto advised that a final figure of $600,000 to $620,000 was projected to be spent for legal services this year, Which did not include airport related legal fees. The City has one of the highest per capita costs compared with other cities. Jamie Coal, Weiss, Serota, et al, advised that Attorney Thomas Ansbro has served as City Attorney for a number of years and that legal services have been changed at $150 per hour times the number of service hours needed under the agreement. The City has being paying around $400,000 a year to Weiss, Serota, et al and the rest has been expended to Ryan & Ryan for Code issues. Attorney Coal presented a letter to the City Commissioners outlining a general retainer amount of $23,000 a month to cover general legal work with specialized legal work to continue being billed at $150.00 per hour times the hours of services needed. Attorney Coal advised that he has worked out some controls with City Manager Pato to set a limit of $75,000 for the special services and anything beyond those costs would have to come before the City Commission. Attorney Coal clarified that uninsured litigation would be included in the special services amount. Commissioner Bertino clarified with Attorney Coal that negotiation of the Harbour Towne Lease would be specialized legal services and that a real estate attorney from the firm would be utilized. City Attorney Ansbro advised that cost recovery is pursued when the City is accommodating agencies on matters that are over and above legal responsibility. Commissioner Mikes was of the opinion that the City would not save any money and recommended hiring an Attorney on an "In House" basis to start a legal department that could handle Ordinances and Resolutions that are just copies from other cities instead of paying $150 an hour. He recommended the addition of a Code Enforcement attorney on an "In House" basis and thought that any balance of the attorney's time could be used for general legal services. The City would always need special counsel services with a firm and he ought a Paralegal would not be needed as long as a good Administrative Secretary was hired to assist the House" attorney. MINUTES 5 JULY 31, 2002 BUDGET WORKSHOP Ottorney Tim Ryan, Ryan & Ryan, P.A., advised that he has served as Special Counsel for four years by resolution for Code Enforcement, lien foreclosures, municipal prosecutions and Unsafe Structures board matters at $125.00 per hour. Attorney Ryan presented a statement outlining attorney fees billed and paid since January 2000. He pointed out that the amount paid by the City was $64,000, which includes filings of over 150 cases in county court, general court appearances, and court appearances in response to foreclosure cases where the City held liens. Over the past year, the firm was asked to pursue an aggressive litigation strategy on foreclosures cases with sufficient equity for the City to gain and the City has collected $165,000.00 this past year on liens. Attorney Ryan stated that the City has paid his firm around $85,000 and that his $125.00 per hour fee is much lower than market level. Attorney Ryan commented on the complexity of the cases and court hearings and stressed the importance of the City retaining competent legal assistance to ward off excessive legal fees in long run. Vice-Mayor Flury commended Attorney Ryan and Attorney Ansbro for their competence on behalf of the City, however, she thought that legal fees should be reduced and that an "In House" attorney should be hired to do everything with the understanding the consultation with a Special Attorney would be utilized on an "as needed" basis. Commissioner Bertino stated that legal assistance has become far more complex since Attorney Frank Adler worked as an "In House" City Attorney. He pointed out that when you consider the assistance needed from specialized counsel, the "In House" attorney would cost more. The City has gained extensively with the legal expertise provided from both firms and he recommended allowing the new legal proposals to be implemented with the understanding that adjustments could be made on an "as needed" basis during the year. Mayor Chunn agreed with Commissioner Bertino and commended both attorneys for doing a good job for the Sty. Commissioner Mikes advised that there are advantages and disadvantages of having an "In House" attorney and that he pushed for an "outside firm" to reduce the political connections with the attorney. Commissioner Mikes stated that much of the work in City Hall is repetitive and that money could be saved. He withdrew his support for an "In House" attorney based on his opinion that there aren't enough votes to retain an independent attorney for the City. Vice-Mayor Flury thought that something is missing when you separate the general attorney and the code attorney services between two firms and that the services should be consolidated. Vice-Mayor Flury was agreeable to conducting a workshop meeting to discuss the legal fees should the City Commission desire to do so. Commissioner McElyea stressed the importance of obtaining the right kind of services for any specific job and that Attorney Ryan's office had saved the City considerable money with the legal actions they have taken and that both firms provide the City with professional legal expertise. The general consensus was to retain both firms under the terms presented. ECONOMIC DEVELOPMENT Macciano Lewis, Acting Finance Director, requested clarification on how the City Commission desired to handle the costs associated with Main Street and advised that the City is being reimbursed $620 a month for health care in this budget. He advised that City Manager Pato was proposing a gradual phase out during the 0cal year 03 with 1/3 salary be reimbursed to the City. MINUTES 6 JULY 31, 2002 BUDGET WORKSHOP Vice-Mayor Flury advised that she had proposed the gradual phase out of the Main Street Program from the �ity's costs in last year's budget and questioned whether the City can afford both a CRA Director and a Main Street Director in the 02/03 fiscal year budget. Commissioner Bertino agreed with Vice-Mayor Flury that Main Street should stand on its own, however, he wasn't sure that Main Street had the funding sources to do so. He thought that Main Street does a good job of providing services in the downtown area and that the CRA Director should be separate from the Main Street Director. Commissioner Mikes mentioned that Main Street should coordinate the upcoming Centennial celebration and stressed the importance of developing or revitalizing the businesses in the downtown. Vice-Mayor Flury pointed out that she was one of the people who interviewed for the Director position for Main Street and also helped develop the job duties some three or four years ago. She advised that when Tom Tisdale was hired, he knew that Main Street would have to be transitioned away from the City over a 24 month period and that everyone was aware of the need for the program to become independent. She supported the proposal of phasing the costs out by paying 1/3 of the salary in 02/03, 1/3 of the salary in 03/04, and 1/3 of the salary in 04/05 and, after the phase out, the City could consider donating a fixed amount in each year's budget to help the program. City Manager Pato advised that he had spoken with Main Street and they have agreed with the phase out proposal. It was noted that the City Commission generally agreed with the phase out of 1/3, 1/3 and 1/3 over a three year enod with Commissioner Bertino stating his lack of support for the proposal. 2:15 p.m.-The meeting adjourned for lunch. 1:00 p.m.-The meeting convened. FINANCE (Page 37 in the proposed budget) Information Systems: Macciano Lewis, Acting Finance Director, advised that the proposed budget includes the deletion of the Programmer Technician position approved in the 01/02 fiscal year budget for the Information Services Division. Bonnie Temchuk, Assistant to the City Manager, presented a proposal to implement a City-wide Computer lease program (1/3rd for fy 02, 1/3rd for fy 03, and 1/3rd for fy 04) over a three-year period instead of purchasing the computers and main servers. Ms. Temchuk advised that the cost would be $25,000 a year and that money has been identified in the current budget to start the lease on the main servers. In fiscal year 02/03- 1/3rd of the total computers could be leased at a cost of $25,000 a year, in fiscal year 03/04 - 2/3's of the computers would be leased at a cost of $50,000, and in fiscal year 04/05 - all of the computers would be leased at $75,000 per year. Assistant Temchuk advised that the lease would provide a flat budgeted amount each year and all computers would be up-to-date with the latest technology and all breakdowns would be covered. The City would receive a new batch of computers each year thereafter. She stated that the City currently owns 103 computers. Vice-Mayor Flury requested more specific information on exactly what would be leased. Assistant Temchuk advised that the City has one main server for the internet and hard drive service and that the City presently ns the server and individual desk top computers utilized by employees. Ms. Temchuk advised that the main rver houses everything that is used for computers. Due to the City's expanded growth with computers over MINUTES 7 JULY 31, 2002 BUDGET WORKSHOP the past few years there are times when the server breaks down and all computers must be shut down to fix a Wdecific area, which, in turn, causes delays for employees. With the lease of the new main servers, she vised that the services would be separated and that the existing server unit is outdated. Vice-Mayor Flury clarified with Ms. Temchuk that the City would be acquiring a new computer, system and that this is only referencing hardware. Ms. Temchuk advised that the software would remain and that licenses for the software were approved at a recent Commission meeting. Vice-Mayor Flury advised that this is really a financing mechanism and she asked what the total dollar amount is for the hardware. Ms. Temchuk advised that its $25,000 per year for 33 computers and the main servers are an additional $18,000 to $20,000 per year and at the end of the three year lease, the City can purchase servers for $1. Vice-Mayor Flury asked what the purchase price was for the server compared with the leasing cost. Ms. Temchuk advised that she did not look into the cost comparisons because of the cost factor of maintaining the server. Commissioner Bertino recommended that Ms. Temchuk review the cost figures to purchase compared with leasing the equipment as he thought that hardware costs have come down significantly. Ms. Temchuk advised that the computers are obsolete in 1 year. Commissioner Bertino disagreed as he thought there was a difference between a computer used for word processing and the gigahertz speed needed for AutoCAD type programs Commissioner Bertino thought that the City should be able to get more than three years use out of a computer and thought the figures needed to be revisited. City Manager Pato advised that the City is behind in both design and technology of the website and interactive systems with citizens for programs described as virtual City Hall, which provides community access to City Hall through "at home" computers. City Manager Pato advised that computers become so obsolete because technology changes so rapidly and that the maintenance is very high when you own the computers. He thought that the Information Systems personnel are spending a lot of time on the hardware repairs and replacement of parts and that they would be freed up to work more on software matters. The lease includes maintenance and 0 e down time for computers would be minimal and an option would be available at the end of the three years purchase the equipment. Commissioner Bertino advised that computers have gotten so fast now days and that most of the City's machines are adequate. City Manager Pato advised that most of the machines are not on XP because they can't handle it and over 1/3 of the machines are due for replacement. Ms. Temchuk thought that the oldest machines seem to be six years old and that money is being thrown into an obsolete machine. Commissioner Bertino advised that purchasing 33 machines at $2,000 each for a total cost of $66,000 would be more cost effective if the machines were retained for five or more years instead of replacing the machine every three years at a cost of $25,000 on the lease. Commissioner Bertino pointed out that even leasing vehicles has advantages and disadvantages. Vice-Mayor Flury advised that the computers are basic and that the bigger issue is trying to keep up with sophisticated software. She stressed the importance of looking at a four-year agreement to determine what the cost would be with maintenance on an out right purchase program compared with the lease program. Vice- Mayor Flury stated her dissatisfaction that a Capital Improvement Program had not been presented in this budget and thought that staff should be pursing projects that are going to provide more for citizens. Vice-Mayor Flury questioned the $50,000 line item for "Program Support and Maintenance" and that $56,000 had not been spent for fiscal year 01/02. Vice-Mayor Flury advised that a computer person was budgeted in last year's Information Systems Budget and that money was not saved because the person was not hired. City Manager Pato advised that the position was approved but the money was never budgeted. Vice-Mayor Flury could not understand how the position could be in the budget with no money being budgeted for the position. ice-Mayor Flury asked whether there was an increase of $53,000 on page 42. In regards to Program Wpport, Ms. Temchuk advised that some pre-determined costs would be coming out of the $110,000 MINUTES 8 JULY 31, 2002 BUDGET WORKSHOP Wr oposed for fiscal year 02/03 to cover $24,000 for software licenses, $1,000 a year micro-house, $35,000 nual HTE software support, and $50,000 to cover the cost to lease 1/3 of the computers ($25,000) and servers ($18,000 to $20,000). She stated that an additional $7,000 is provided, miscellaneous supplies was reduced, and $25,000 is proposed under the Capital Outlay as a cushion for breakdowns. Vice-Mayor Flury couldn't understand where the savings would be provided to the City. Commissioner Bertino questioned the City's fiscal year 02 investment of $109,000 ($53,000 for computer equipment and $56,000 for program support) and maintained that it might be more cost effective to purchase computers if they are retained for four or five years. Ms. Temchuk advised that the $53,000 does not just include computers and also includes special equipment to hold the server and items such as office furniture. City Manager Pato recommended that the City Commission look up the City of St. Petersburg online, which provides for City Clerk records and paying water bills and stated that the City's hardware needs to be updated in order to modernize the City's webpage. WATER ACCOUNTING AND BILLING (Page 44/45 in the proposed budget) Commissioner Bertino questioned the $160,000 total budget and whether administrative costs are being charged against the Water Enterprise Fund Budget. City Manager Pato advised that the services are being provided under the Finance Department. Mr. Lewis advised that the administrative costs would not be shown in the Finance Department and that the amount being charged for administrative costs to the Water Enterprise Fund would be discussed at a future workshop. ADMINISTRATIVE SERVICES (Page 54 in the proposed budget) 0 acciano Lewis, Acting Finance Director, advised that a conversion of a part-time recruitment Coordinator to a II-time status is proposed at an estimated $21,200. Mary MacDonald, Administrative Services Director, advised that the position is not a full-time recruiter as it is titled Recruiter Coordinator. The person would do some recruiting, ads and tracking of expenses, interviewing and screening the application process and create a database for tracking applicants. Page 58- Vice-Mayor Flury questioned why $50,000 is budgeted under legal and display ads when many top management and employee hires were already handled last year. She inquired as to why $57,000 was budgeted under Professional Services since the cost for Pay and Classification study was paid from last year. Director MacDonald advised that the money budgeted in Professional Services includes outsourcing the Crossing Guard Program. Mr. Lewis advised that the Crossing Guards were budgeted under Professional Services. Vice-Mayor Flury stated that the amount has to be deleted from a salary line item some where and requested a printout of the Professional Services line items for 0500 and 0510 divisions. Mr. Lewis agreed to make the adjustment. Page 61- Director MacDonald advised that Professional Services funds last year were used for the Pay and Classification Study and hiring Siver, Insurance Consultants, and that this year she is budgeting the line items to cover outsourcing of the crossing guards and hiring diversity trainers to address some personnel issues with the City. Commissioner Mikes disagreed with converting part time employees to full time employees and was of the opinion that staffing doesn't increase productivity. He thought that too many benefits are being provided to the employees without any consideration for customer service to the citizens. 0 MINUTES 9 JULY 31, 2002 BUDGET WORKSHOP 0Oage 61-Commissioner Bertino questioned the amounts budgeted in the Accrued Leave Buyback line item in 00 and 0510. Mr. Lewis advised that starting with the FY 02 budget, a line item was added in each division to cover employee compensation time that is being bought back by employees and that a proposed plan is being considered to cap the amounts of money paid. Director MacDonald advised that the Civil Service Agreement and Union Agreement allow employees to purchase back accrued sick, comp time and vacation time. Ms. MacDonald advised that this limits the City's fund to liability costs. City Manager Pato advised that there may be a possibility of developing a two-tier program for employees coming in to the City compared to existing employees. Director MacDonald advised that the City has management contracts that allow management employees to accrued comp time and that these are expenses that need to be addressed and policies need to be put in place. City Manager Pato advised that employees have been allowed to determine for themselves the comp time and overtime they were going to earn without prior department head approval. Vice-Mayor Flury stressed the importance of addressing the $2 million health care costs as a major priority and to know what the top injuries that are being covered in the City's Health Plan. BSO-POLICE SERVICES (Page 66 in the proposed budget) Bryan Cowart, BSO Chief, advised that when the City entered into a contract for police services in 1988, BSO was asked to transfer the larger percentage of increases in the contract to the last year of the contract. This next fiscal year 02/03 is the last year of the contract and the increase is $574,857. In addition, this fiscal year will need to provide for the acquisition of the six (6) deputies from last year's budget who covered the newly annexed area. Vice-Mayor Flury clarified that there is a 9% increase in the police budget and that the annexation services was JncI ded in last year's base. Chief Cowart clarified that the City needs to execute a Third Addendum to the ntract to formalize the six (6) additional deputies used for the newly annexation area. City Manager Pato explained that last year, BSO Chief Anton had requested staffing of six existing deputies that were already servicing the newly annexed area and six (6) additional deputies to create a new Zone 207 to double the services for the western citizens as part of the annexation campaign. Vice-Mayor Flury requested a confirmation in the Minutes from the budget sessions last year to confirm the actual number of deputies hired. Commissioner Bertino stated the need to negotiate a new contract since neither party wants to sever the relationship and suggested an extension of the contract while negotiations are worked out. Chief Cowart advised that the City would not be seeing 9% increases with the implementation of the new contract as they would be right at around 5% each year. THE FIRE DEPARTMENT BUDGET WAS HEARD WHILE BSO STAFFING FROM LAST YEAR WAS BEING RESEARCHED AFTER THE FIRE DEPARTMENT BUDGET WAS COMPLETED, BSO BUDGET CONTINUED AS FOLLOWS City Clerk Johnson confirmed that the City Commission had decided on August 2, 2001 to hire four (4) deputies and that on September 6, 2001, to hire two (2) more additional deputies for a total of 6.0 FTE in the 2001/02 budget. It was also noted that the six (6) deputies were utilized in the newly annexed area that came into the City September 15, 2001. Vice-Mayor Flury clarified that the 9% increase in the BSO contract had nothing to do with the annexation as e six (6) deputies for the newly annexed area were hired in the 01/02 budget. Discussion followed with Mr. Me on whether the money was actually put in the 01/02 budget by David Keller, previous Finance Director. MINUTES 10 JULY 31, 2002 BUDGET WORKSHOP hief Cowart advised that BSO has not been paid for the six (6) deputies and that BSO fronted the funds ecessary to provide the services in the current 01/02 fiscal year. He advised that the Third Addendum includes costs retroactive to October 1, 2001, which includes costs for six (6) deputies for both 01/02 and 02/03 fiscal year budgets. Vice-Mayor Flury clarified that since the deputies were approved in the budget but the police services for the six (6) deputies was never paid by the City, the City will now have to pay retroactively from October 1, 2001, for the six (6) deputies and that the BSO contract would increase to $7 million for fiscal year 02/03. Macciano Lewis, Acting Finance Director, clarified that BSO services for fiscal year 02/03 would be $6,980,009.00 and Chief Cowart stated that the figure is 7,015,000.00 and with the vacancy credit at the end of the year, the amount would be $6,980,009.00. Chief Cowart confirmed that one of the six (6) deputy positions was upgraded from a regular deputy position to a dog handler. Vice-Mayor Flury requested clarification on where the $455,000 budgeted in 01/02 for the deputies was now located. Mr. Lewis advised that the amount is budgeted in 02/03 on page 68 in the proposed budget under Police Services Increase Annex line item. City Manager Pato advised that the Third Addendum to the BSO Contract has been distributed and will be brought back to the City Commission for execution. Chief Cowart advised that the motorcycle deputy will be in training until August 5th and that a new Harley Davidson Motorcycle will be provided for the deputy to begin thereafter. Chief Cowart agreed that there was a delay from BSO in presenting the addendum covering the drug dog services, motorcycle deputy and billing for the prior year's police services for the newly annexed area. City Manager Pato was unable to report on the drug dog revenues because there hasn't been enough time to provide statistics, however, the Vehicle Impoundment and Prostitution fees have risen to some $80,000.00. 0dditionally, the City has gained around $80,000 in Law Enforcement Grant funds that have not been needed r special BSO services and the funds will be added to the General revenues. He expected the Impoundment fees to exceed $100,000 next year. Bonnie Temchuk explained that the City is entitled to Local Law Enforcement Block Grant (LLEBG) funds and that she was working with Chief Cowart to use funds from the Local Law Enforcement Trust Fund for the City's match on the LLEBG grant. Ms. Temchuk advised that the funding is used for the operation of the Center for Success, demolition of Unsafe properties, heightened security measures and a portion would be used for the renovation of the 803 BSO Substation. City Manager Pato advised that he would pursue renegotiations of a BSO contract and that he would keep the City Commission informed. FIRE DEPARTMENT Macciano Lewis, Acting Finance Director, advised that the Fire Department requested six (6) firefighter/paramedic positions that were denied by the City Manager. The proposed budget includes funding for increased costs associated with the lease of the Hollywood Fire Station space and the conversion of a part- time clerical staff to a full-time status for an estimated cost of$17,500. Ken Land, Fire Rescue Department, advised that the department has an increase of $639,000 and that $125,000 is for workers compensation even though experiences are down, $100,000 in insurance increases and $87,000 for costs associated with moving into the Hollywood station. Chief Land advised that the department has brought in $2,800,000 (43% of the budget) from fire assessment, fire prevention inspection nd EMS transport fees to offset the budget. He advised that the City Commission must realize that the City's pulation increased 48%, square millage increased 30%, call volume increased 20% and staffing has MINUTES 11 JULY 31, 2002 BUDGET WORKSHOP remained the same. Chief Land advised that he has been asking since 1997 for additional people and *quested that the City Commission consider setting up a schedule to hire at least one person per year over he next three to four years to bring the minimum manning up to a level of three on the fire trucks. Chief Land advised that currently the other cities provide aide to the City and that they are going to expect the same minimum manning. Chief Land mentioned that he recently read an article where a fire chief ordered a single man on a hose line into a house fire and was sent to prison for negligent homicide. Mayor Chunn expressed his concern that at some times the Fire Station has no one present when all shift firemen are out on an emergency call and that there may be medical emergency at the Fire Station and non one to handle it. Discussion followed with Fire Chief Land on moving the Administrative Specialist over to the Fire Station office during those times when all shift employees are on call in order that medical rescue needs could be called in by radio and providing a phone that could be linked directly to 911. Commissioner Bertino also suggested an outside call box at the Fire Station that could be used by residents who may need medical attention. Commissioner Mikes mentioned that the City Commission will need to determine how to pay the high costs associated with dealing with minimum manning requirements and pension benefits for Fire employees in the future. He mentioned that there are many residents living in mobile homes who are using fire services and are not paying the ad valorem taxes associated with public safety costs. Vice-Mayor Flury commented on the amount of revenues brought in by the Fire Department actually reducing the $6 million budget down to $3 million. Commissioner Bertino recommended including defibrillators to help with heart attacks in each of the BSO squad cars. Fire Chief Land advised that the City has 11 defibrillators that are going to be distributed to main �ity facilities and Chief Cowart commented on efforts by BSO to use the equipment. Fire Chief Land advised that the one (1) yearly person could be hired without the union contract being changed to include a minimum manning provision, which would give the City more flexibility with staff. Discussion followed on traffic problems that may impact the response time on emergency calls. Chief Land advised that even though his people have titles they also do shift work and respond to emergency calls and that the cost would run around $63,000 to $65,000 to add one more person in this budget. Chief Land confirmed for Commissioner Mikes that Deputy Chief Land is off duty whenever he is handling union work. Commissioner Bertino stressed the importance of establishing a commitment on building the western fire station. Commissioner Mikes advised that the City is saving money from the Fire Assessment fees for building the western Fire Station. City Manager Pato advised that $150,000 a year is being saved each year from the Fire Assessment fees for the western fire station construction. The City Commission generally agreed to approve the conversion of the part time to a full time position and to have staff review the budget to determine if funds could be allocated to hire one (1) person for the Fire Department in the 02/03 fiscal year budget. BSO BUDGET WAS HEARD AFTER FIRE DEPARTMENT GROWTH MANAGEMENT WAS HEARD AFTER BSO SERVICES BUDGET GROWTH MANAGEMENT (Pages 84-91) (a MINUTES 12 JULY 31, 2002 BUDGET WORKSHOP City Manager Pato advised that Director Laurence Leeds was unable to attend this meeting because he on cation and that Ken Koch, Building Official, is available to respond to any questions. Macciano Lewis, Acting Finance Director, advised that the Growth Management Department is requesting three (3) new positions: one City Planner, one Code Inspector and one Administrative Technician 1 (2 in Growth Management and 1 in Building) for an estimated cost of$109,000. Mr. Lewis advised the City Planner would be funded for 3/ of the fiscal year and '/ of the position would be refunded by C.R.A. monies. The Code Inspector would be funded for 'h of the fiscal year. The Administrative Technician is a conversion from a part- time to full time status. Commissioner Bertino advised that the City needs more Code Inspectors to deal with all of the Code problems in the City and suggested hiring two Code Inspectors instead of the City Planner. City Manager Pato advised that the City Planner is needed for plan review to assist Director Leeds and that Mr. Leeds will be more involved with the CRA duties that are forthcoming. Commissioner Mikes discussed the changes that are being made to positions as a result of the reclassification study and mentioned that many new cities privatize positions to reduce benefit costs for full-time employees and that the City may want to consider contracting out the planning services for the Growth Management Department. Ken Koch, Building Official, advised that there were currently three (3) Code Inspectors and one (1) Chief Code Officer handling Code Enforcement in the City. Mr. Koch thought that additional field inspectors would be very beneficial in dealing with Code Enforcement based on how the City has grown, however, he pointed out that the additional paperwork generated by additional inspections would also warrant the hiring of additional secretarial assistance to the handle the violations. Commissioner Mikes advised that the street Go sures may increase property values and update neighborhoods and reduce code enforcement response. Commissioner Bertino inquired as to whether the paper work could be handled in a more efficient manner and whether computer programs for Code Enforcement were being utilized. Mr. Koch advised that computer expertise is being utilized and that State Statute 162 requires an extensive documentation process to handle the Code Orders and correspondence. Vice-Mayor Flury asked that the overtime for the department be reduced by 50% with three (3) people being added and asked Mr. Koch to explain the use of the $50,000 budgeted under Professional Services in the Building Division. Mr. Koch advised that the funds cover mechanical and electrical inspection services from Broward County. PUBLIC WORKS (Pages 122-161 in the proposed budget) Macciano Lewis, Finance Director, advised that one (1) Landscape Grounds Tech II position ($27,500) was being requested for the General Fund under Streets & Parks and that the Water Fund would be discussed at a later date. Commissioner Bertino questioned whether or not there was any pay difference between a Trades Mechanic II and Maintenance Mechanic. Leo Williams, Public Works Manager, advised that there were some minor changes made as a result of the Pay & Classification Study, however, he did not have the study information available. Vice-Mayor Flury advised that the salary issues must be addressed because total salaries have risen 12%, which is an increase of$750,000. City Manager Pato advised that the $750,000 reflects the positions that have been requested and the costs associated with the Class & Pay Study results, which was estimated to be 1100,000. Commissioner Bertino requested an explanation on who is receiving raises. City Manager Pato ivised that adjustments were made to positions to bring the positions up to market value based on the results MINUTES 13 JULY 31, 2002 BUDGET WORKSHOP of the study. Discussion followed on whether or not positions would go back to the existing salaries if the Pay *d Classification Study is not approved. City Manager Pato advised that the approval of the Pay & Iassification Study will allow the implementation of the Pay for Performance Program and that the program will allow those who are good workers to be rewarded accordingly and those who are not will be given an opportunity to correct their work or go work elsewhere. City Manager Pato advised that the current union contracts provide for every employee to obtain a raise based on what is negotiated each year and that employees with long term employment receive longevity payments. Page 127-Vice-Mayor Flury questioned the $180,000 Electricity amount. Mr. Williams advised that the amount will cover street lighting installations with FPL in the newly annexed area, which has already been installed, as well as other street lighting installations in the City. Vice-Mayor Flury asked Mr. Williams to see if he could reduce the line item. Page 127- Vice-Mayor Flury questioned the $550,000 under Maintenance of Streets/Alleys/Lights that was received from Broward County for the newly annexed area for paving improvements to streets. Mr. Williams explained that $550,000 was the City's original budgeted number and that $500,000 was added from Broward County to take care of resurfacing needs in the newly annexed area. The money is also used for grounds maintenance and drainage improvements. Mr. Williams advised that in addition to $500,000 being spent for road resurfacing that came from Broward County, the City also spent some $300,000 for resurfacing other streets in the City this year. Vice-Mayor Flury clarified that $647,000 has been spent of which $500,000 came from the County and that the City has spent some $144,000. Mr. Williams advised that there are some outstanding encumbrances to be considered between now and September 30 for other issues like grounds maintenance, drainage and street light improvements. Mr. Williams explained that the $9,000 for Professional Services is used for temporary help, study or consulting fees or road closure costs. Vice-Mayor Flury asked that Temporary Services be added as a category instead of Professional Services for temporary help and ated the confusion that is created by the way full time and part-time or temporary staffing is being shown in e budget. Commissioner Bertino asked whether the hydraulic pump was replaced on 51h Street and Mr. Williams advised that staff is currently making the installations. Page 149-Vice-Mayor Flury questioned what the Professional Services is used for under Water Distribution. Mr. Williams advised that the amounts are used for engineering services for new water mains. Commissioner Bertino asked whether the City could install crypts or columbarium's in the cemetery opposed to providing grave plots and whether the Perpetual Care Funds could provide for the construction. Mr. Williams advised that the Bud Palm did conduct a study a while back and that he would provide the information to the City Commission. Macciano Lewis advised that only the General Fund was being reviewed today and that the Enterprise Funds budgets would be discussed later. PARKS & RECREATION (Page 96-119) Macciano Lewis, Acting Finance Director, advised that the budget provides for $123,000 ($82K reimbursable) for the Community Bus Service through an agreement with Broward County. The City has just stated to get charged for the services and the line item was removed from the City Manager budget and placed in the Parks & Recreation Department because they run the program. 6ge 101- Vice-Mayor Flury could not understand the huge increase in retirement contribution when there has t been any change in personnel and asked Mr. Lewis to check into the amount that has been budgeted. MINUTES 14 JULY 31, 2002 BUDGET WORKSHOP Under Professional Services, Randy Wilkinson, Parks & Recreation Director, advised that the line item is used r bus services, DJ services for special events and Children's bounce houses for events and festivals. Vice- ayor Flury clarified that the costs associated with the Woman's Club is also paid from the Professional Services and Mr. Wilkinson clarified that the money is used for bus services and such for the Dania Beach Senior Citizens Club, which includes men and women. Mr. Wilkinson advised that Chickee Brandemart is currently President and that the club meets at I.T. Parker Community Center. He clarified that this is not the same groups as the Dania Woman's Club near City Hall. Vice-Mayor Flury advised that when clubhouses are construction at the parks, the managers should be located at the parks and individual park programs should be provided at the specific park. Vice-Mayor Flury questioned the $8,000 amount budgeted under Lease of Equipment. Mr. Wilkinson advised that the cost is associated with the trailer rental for the Center for Success at CW Thomas Park. Vice-Mayor Flury was concerned that the actual amounts spent should match up with the budgeted amounts and asked Director Wilkinson to review the amounts he has budgeted. Commissioner Bertino clarified that $118,854 has been budgeted for part-time assistance and asked how the staffing was distributed amongst the three parks (Frost, CW Thomas and Meli). Mr. Wilkinson explained that each park is budgeted for 100 hours a week in manpower to cover different programs and the parks are open about 56 hours a week. Commissioner Bertino stressed the importance of balancing the staffing equally between the parks and asked that the employees be broken down for each park in the budget. Mr. Wilkinson mentioned that he must come back before the City Commission to obtain permission to transfer funds between parks. Commissioner Bertino asked for an explanation on how the full-time workers are handled. Mr. Wilkinson advised that the Facilities Manager is located at Frost Park, Sports Coordinator at Thomas Park and Program Coordinator at Meli Park. Vice-Mayor Flury advised that the full-time managers are not located at the parks and that there offices are located with Recreation Administration. Mr. Wilkinson advised that the ecreation Leader is assigned three (3) days at Frost Park and Three (3) days at Meli Park. Commissioner ertino stated the need for CW Thomas Park to receive full-time assistance and that the pool would require more costs for maintenance. Vice-Mayor Flury commented on the water charges at Frost Park compared with the water charges at the other parks and advised that the water is left on Frost Park because no one is checking this expenditure waste. She mentioned that recreation buildings should be completed at CW Thomas and Frost Park and a renovation of the existing recreational building at Meli Park. Vice-Mayor Flury stated under the CIP Program in the current budget 01/02 - $448,000 had been budgeted for other park improvements, $300,000 was provided from two FRDAP Grants ($150,000 each for CW Thomas and Frost Parks) and $1,1 million for the pool at Meli Park. Summer Program-Vice-Mayor Flury clarified with Mr. Wilkinson that 200 children are in the program and that they pay $200.00 each. Griffin Marine Park-Commissioner Mikes inquired if maintenance costs had been provided. Mr. Wilkinson advised that the costs are covered under Small Neighborhood Parks. Commissioner Bertino recommended that the top administrative personnel should work hours when children are predominately using the parks and that the park personnel would not be working normal 8-5 work days, but, rather, hours like 12-8 p.m. and they would be off on Mondays and Tuesdays instead of weekends. Commissioner Bertino mentioned that Broward County residents use the beaches at Dania Beach and that City taxpayers pay the maintenance costs. He recommended that City staff contact Broward County to determine if there are recreational funds available to defray maintenance costs for beach communities. ecreation Director Wilkinson advised that Miami Beach allowed its beach to become a County beach in order qr have the County pay the maintenance costs. MINUTES 15 JULY 31, 2002 BUDGET WORKSHOP qommissioner Mikes asked whether there was any need to budget for maintenance for any properties that ay come to the City under the Land Preservation Bond Program. Mr. Wilkinson advised that Broward County would be giving the City funding when the land is turned over to the City. City Manager Pato advised that there are plans to conduct a dedication at the Griffin Marine Park. This meeting adjourned at 3:50 p.m. 1A oHH. unn, Jr. Ma Atte t: clj(�6 Charlene John n City Clerk Approved: August 13, 2002 • MINUTES 16 JULY 31, 2002 BUDGET WORKSHOP