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HomeMy WebLinkAbout22333 - MINUTES - City Commission MINUTES OF BUDGET WORKSHOP DANIA BEACH CITY COMMISSION TUESDAY, JULY 24, 2007 — 8:00 A.M. 1. Call to Order Mayor Anton called the workshop to order at 8:00 a.m. 2. Roll Call Present: Mayor: Bob Anton Vice-Mayor: Albert Jones Commissioners: John Bertino Anne Castro Patricia Flury City Attorney: Tom Ansbro City Manager: Ivan Pato City Clerk: Louise Stilson Also Present: Patricia Varney, Finance Director Nicki Satterfield, Assistant Finance Director Dominic Orlando, Director of Public Services and Utilities Leo Williams, Public Services Department Superintendent Mary McDonald, Director of Human Resources and Risk Management Laurence Leeds, Director of Community Development Mike Cassano, Deputy Fire Chief Kristen Jones, Director of Parks and Recreation Donn Peterson, BSO Chief 3. Presentation and discussion on the City Manager's Proposed FY07/08 Operating Budget Appropriations City Manager Pato presented his opening statement: I appreciate the opportunity to present the proposed FY 2008/2009 Budget for your review and consideration. The proposed budget before you today is balanced at the state-mandated rollback rate of 5.4044 mills. Staff made significant contributions to bring you a number of cost reductions and savings. Excluding capital projects, the proposed budget reflects a 2.2 percent reduction over last year. More importantly, the proposed budget does not reduce levels of service, does not add additional full-time employees, and requires no layoffs. While personnel costs have increased by $255,000 or 1.6 percent over last year, total operating expenses have been reduced by 1.6 percent. It is virtually certain that the voters or the legislature will mandate further tax cuts next year. Thinking ahead, we will need to find additional cost savings if we are to balance the 2009/2010 budget. We are prepared to have a discussion with you today on possible options that could prepare us for the City's FY 2009 budget. Aside from more Tax Reform, we'll be facing additional financial burdens in FY 2009. The Commission has moved some capital projects from FY 2008 to FY 2009. As such, we will need to find at least $500,000 to $700,000 in 2009 to equip Fire Station 93 and complete the Public Services Complex. This does not include an estimated $800,000 needed to complete the fueling station. The actuary's preliminary GASB 45 report indicates that the City's annual required contribution is $1.8 million. This money has yet to be identified in the budget. You will be hearing more from Finance later today. The 2001 population certified by the Department of Revenue does not reflect 2001 post- annexation population. Despite our challenging the state, the DOR maintains their position. In an abundance of caution, we need to be prepared for a possible potential citizen challenge to DOR findings. We also need to consider the possibility that DOR may reverse its original position. If this were to occur, it is unclear if the state would require us to reimburse the taxpayers for the difference. While nothing suggests a citizen challenge or DOR position change at this time, we need to have a plan in case either event occurs. The anticipated budget surplus this year will bring our fund balance to approximately $16M. However, we are still $4M short of the City Commission's stated goal of a $20M reserve. We will not be able to achieve this goal without significant cost reductions beyond those shown in the proposed budget. We are looking forward to your direction. Patricia Varney, Finance Director, presented a Power Point as a synopsis of the proposed FY 2008 Budget, which is attached to and incorporated into these minutes. Commissioner Flury commended Director Varney and her staff for a very well presented budget. She commented she is not concerned with the revenues projected for next year because they are projected at a lower level than 2007. However, she is concerned with salary costs, including the cost of outsourced positions, which have increased fifty percent within a period of three years. Commissioner Flury pointed out this is a problem and we need to address it. She noted there are three new positions in this proposed budget that she would not approve: 1) the Engineer position should have been eliminated from this year's budget; 2) the Grant Writer position was never approved by the Commission; 3) the Commission never approved a 3-year transition plan for Minutes of Budget Workshop 2 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Firefighters, and she wanted this information removed from the Opening Letter to avoid any misunderstandings in years to come. Commissioner Flury would like the Elections to be funded on an accrual basis, i.e., budget funds every year, not every other year. She did not feel comfortable taking out the $150,000 budgeted last year for hurricane expenses. Commissioner Flury did not want to drop the Fire Assessment fee all the way to $91.57 and she did not want an increase in Permit Fees for residents. City Manager Pato clarified that the budget message does not say that the Commission approved three new positions for this year. They approved a 3-year transition plan to phase in three Firefighters per year, to reach a total of nine positions. Mayor Anton clarified there was no specific plan approved, but the impression was that the Fire Department needed to increase positions. The intention was to look at funding the entire nine positions. City Manager Pato indicated he was not recommending hiring three Firefighters, he would only show the Commission where to find the funding for these positions, should they decide to approve three additional Firefighters. Mayor Anton requested, for the record, that the last paragraph on Page 2 of the Opening Letter be removed as recommended by Commissioner Flury and a clearer language included accordingly. Vice-Mayor Jones pointed out that if this is a safety issue, we would need to consider it in the future. Commissioner Bertino commented if we want to save some positions, we need to put them in with the concept recommended by the City Manager. He suggested including them with the caveat "to add the positions if there are funds available". Finance Director Varney presented a Power Point on FY 2008 Budget List of Considerations, which is attached to and incorporated into these minutes. Director Varney noted if all the recommendations are approved it would be an additional $1.2M savings. Commissioner Castro confirmed with Dominic Orlando, Director of Public Services, that there will not be a reduction in personnel due to the new technology introduced with the operation of the new water tank. She also commented on the high number of vehicles in the Public Services Department and the City in general. City Manager/Code Compliance/Beach/General Administration City Manager Pato noted there are no increases in the City Manager budget. Director Varney explained that she reduced the revenue in FY 2008 for Code Compliance because this year we received an additional $100,000 in revenue. Minutes of Budget Workshop 3 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Colin Donnelly, Assistant City Manager, commented that we are no longer looking at contracting out the Beach Lifeguard positions with the Jeff Ellis Group. The City of Hollywood has approached us about taking over the positions, which would result in a $50,000 savings to the City. He thought using the public sector would be more advantageous for the City. Commissioner Flury noted she would not be interested in outsourcing the Beach Lifeguard positions, unless there is a major saving to the City. Commissioner Castro cautioned about outsourcing too many services to the City of Hollywood. Her preference would be to stay in Dania Beach. City Manager Pato asked the Commission if they wanted to consider the following: reducing the number of hours of operation for the Beach Lifeguards on weekdays; consider eliminating one position; or changing the location of lifeguard stations in order to reduce the City's liability. The Commission requested additional information in order to make an informed decision. Commissioner Flury commented we need to take the $48,000 for the Grant Writer out of General Administration. Director Varney explained that grants do not provide funding for a Grant Writer, this cost needs to be provided by the City. She noted the $48,000 is a retainer fee for the Grant Writer to apply for approximately 10-15 grants per year. Director Varney pointed out that if we decide to look for a Grant Writer we would need to prepare a Request for Qualifications in order for the Commission to choose from one of the responding firms. Commissioner Flury thought it was not necessary to go out to bid for this service. She suggested bringing in someone with experience who has been highly recommended by another large organization, and contracting with this person to work on one grant to see how it works. Commissioner Flury thought leaving $25,000 should cover the expenses involved in this process. City Manager Pato suggested eliminating $48,000 and adding $25,000 to his budget for Professional Services. It was the Commission consensus to add $25,000 to Professional Services in the City Manager Budget. Commissioner Castro thought we needed to bring in someone to spur redevelopment which would generate more revenues and allow the residents to have some tax relief. Commissioner Flury agreed with Commissioner Castro. She would also like to see a Director of Economic Development position. Vice-Mayor Jones suggested inviting someone to come in and give us some redevelopment ideas. Minutes of Budget Workshop 4 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Commissioner Castro noted we do not have a person who seeks out the companies and explains what we want. She commented bigger cities have a whole department dedicated to redevelopment. Commissioner Castro would prefer a full-time position that would report to the CRA Board. Commissioner Bertino commented the City Manager is good at public relations, but the market conditions are currently not good. He suggested waiting until after the Tax Reform issue has been resolved. It was the consensus of the Commission to add a position of Director of Economic Development, to be funded from Contingency. Commissioner Flury questioned if the Commission wanted to continue the Lobbyist services with Tidewater Consulting. Mayor Anton commented the immediate future is unknown and this is not the right time to be without a voice in Tallahassee. He would prefer to re-negotiate the contract and reduce their fees. Vice-Mayor Jones thought Tidewater would not try any harder if we reduced their fees. He suggested finding someone else to represent us in Tallahassee and move on. It was the consensus of the Commission to have City Attorney Ansbro review the Tidewater agreement and bring back options. Department of Human Resources & Risk Mana eg ment Mary McDonald, Director of Human Resources and Risk Management, distributed a copy of the Compensation Plan to the Commission, which is attached to and incorporated into these minutes. Commissioner Flury commented that the General Employees should start paying a higher portion of their health insurance premium,just as the Fire Union Employees started paying last year. Director McDonald confirmed for Commissioner Flury that it would not be a problem to add another tier to the current benefit packet. Director McDonald explained the Workers Compensation increase is due to increase in payroll. She confirmed there have been eight new positions and increases in payroll costs. Director Varney advised personnel costs increased $340,000 in FY 2008. Director McDonald advised that the compensation plan was revised a couple of years ago, and longevity was rolled into salaries which increased the base pay. Eventually, we will lose these Minutes of Budget Workshop $ Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. positions when the employees retire. She thought that with the changes that have taken place we would be able to attract better people and become more competitive. Commissioner Castro thought we had a very good compensation package. She commented that our salary ranges exceed the salary ranges in the private sector. Commissioner Castro further noted that in the private sector, employees pay a portion of their insurance costs and they have fewer holidays. Public Services Department Commissioner Castro questioned if we have audited the City of Hollywood to check the operation of the water-sewer treatment plan. Dominic Orlando, Public Services Director, responded we receive a quarterly report from Hollywood which is reviewed. This report shows the costs and how they are split. He noted the City of Hollywood is currently issuing an RFQ to update the Large User Agreement and that he is part of the committee. Commissioner Castro suggested the agreement include a clause stating that we can audit their services. Director Orlando noted the Engineer position is needed, but a more appropriate position would be Deputy Director with a degree in engineering. He further advised wastewater charges could increase substantially in the future. Department of Community Development Laurence Leeds, Director of Community Development, commented on the proposed fee schedule. He explained how and why the fees were derived. Commissioner Castro agreed with the proposed fee schedule. She commended the Community Development Department for their accomplishments this year. Vice-Mayor Jones confirmed with Director Leeds that affordable housing is not impacted any differently than more expensive housing. He did not oppose increasing the fees. Mayor Anton commented most cities will be increasing their fees and agreed with staff s recommendation. Director Leeds advised our fees are currently in the mid-range fee structure compared to other cities in Broward County. It was the Commission consensus to approve the proposed fee increases. Minutes of Budget Workshop 6 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Parks & Recreation Kristen Jones, Director of Parks and Recreation, thanked the Commission for their support with all their projects. She clarified for Commissioner Castro that the $10,000 for the Seniors is included in the Parks and Recreation budget. Commissioner Castro congratulated Director Jones and staff for doing a great job managing their projects this year. Vice-Mayor Jones confirmed with Director Jones that playground equipment will be installed at Chester Byrd, Frank C. Adler and C.W. Thomas Parks. Director Jones indicated they are planning a grand opening for the C.W. Thomas Community Center the first week in October, with a barbecue for the community. The pool should be completed by next summer. City Attorney Commissioner Flury would like to amend the organizational chart to include outside counsel to the City Attorney's office. She thought the City Attorney should be the liaison between the City and our legal consultants. City Manager Pato questioned if the City's Lobbyists should be included in the organizational chart to the City Attorney. It was the Commission consensus to add the City Lobbyists to the City Attorney organizational chart. Director Varney noted the Airport Restricted Reserve Fund will drop to $440,000. She advised the only way to increase the fund back to $500,000 is to take the money from the General Fund. It was the consensus of the Commission to raise the Airport Restricted Reserve Fund back to $500,000 by taking the money from this year's surplus. Police (BSO) Commissioner Castro requested a breakdown of personnel be included in the back-up material. BSO Chief Donn Peterson noted we have a total of 79 positions, which are all currently filled. This includes 67 sworn positions, and 9 civilian positions. He advised the elimination of three CSA positions would result in less daytime coverage, no evening coverage, no weekend coverage, and no Sub-Station coverage. Minutes of Budget Workshop 7 Dania Beach City Commission Tuesday,July 24, 2007—8:00 a.m. Mayor Anton confirmed with Chief Peterson that they are in the process of installing an emergency hotline for after-hours emergency access. Commissioner Bertino questioned if we could increase the size of the zones in order to reduce the number of zones in the City. Chief Peterson responded that smaller zones with more officers result in lower crime. He advised we have eight zones. Chief Peterson confirmed for Commissioner Bertino that our zones are geographically compatible with other cities in Broward County. Mayor Anton did not support reducing the zones. He thought this would affect the safety of our people. Commissioner Flury was concerned with cutting the clerical positions without having knowledge of the hours of call volume. She noted if the police dog is no longer in the department, we should consider eliminating the dog handler position. Chief Peterson indicated the call volume was heavier at City Hall than the Sub-Station. He noted the K-9 deputy remained with the department when the dog retired. It was the Commission consensus to eliminate the dog handler position, maintain the deputy, but cut out one full-time sworn position. Attorney Tim Ryan Attorney Ryan distributed a report on amounts received from Code violations (not to the Clerk). He clarified that we cannot foreclose on homestead property. He will look at the list Commissioner Flury provided him and comment at the next Abatement Hearing. Attorney Ryan commented the Special Magistrate handles more cases than the Code Enforcement Board, which results in more compliance. City Manager Pato confirmed with Attorney Ryan that modernizing our Code and doing away with the old County Code has been beneficial to the neighborhoods. Attorney Ryan noted that the Code officers issuing the citations are doing their jobs, but are also sensitive to property owners who need a little time to correct problems. He responded for the Commission that there are no pending major litigation cases that are problematic. City Attorney Ansbro advised we received a favorable court ruling on the second Russo case. Minutes of Budget Workshop 8 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Fire Department Commissioner Bertino questioned if the fire rating would change because we do not have a Fire Chief. Deputy Fire Chief Cassano responded it should not affect the insurance rates of property owners. He further noted that they will request a rating of the Insurance Service Organization once Fire Station 93 is completed and we are able to put three Firefighters on a fire engine. Vice-Mayor Jones questioned the process of Fire Inspections. Deputy Fire Chief Cassano responded we currently average the best in the County for turnaround in plans review. The division will be relocating back to City Hall by the end of the year. He asked the Commission to reconsider the elimination of the bunker gear in this year's budget. Deputy Fire Chief Cassano requested replacement of ten sets this year, and ten next year, which would represent an additional $9,800 in the budget. It was the Commission consensus to include the $9,800 for the bunker gear. Deputy Fire Chief Cassano noted for the record that they will need to replace a fire vehicle next year. City Clerk Commissioner Flury suggested including $50,000 in this year's budget for election expenses. Finance Director Varney suggested establishing a fund. It was the Commission consensus not to establish the fund. Commissioner Castro commended City Clerk Stilson and her staff for their accomplishments this year. Lunch Break Mayor Anton recessed the Workshop at 11:48 a.m. Mayor Anton reconvened the Workshop at 12:30 p.m. Finance/Information Services/Actuary presentation on GASB 45 Ben Upchurch, Jr., Milliman Consultants and Actuaries, presented an overview of GASB 45 which is attached to and incorporated into these minutes. Minutes of Budget Workshop 9 Dania Beach City Commission Tuesday,July 24, 2007—8:00 a.m. Director Varney clarified for Commissioner Castro that we do not need to fund the liability now, but we do need to book it effective in FY 2009. She explained that part of our problem is that the City pays 2/3 of the retiree insurance benefit, as well as 2/3 of the spousal coverage, whereas other cities ask their retirees to pay 100 percent of the premium. Commissioner Castro was concerned about the solvency of the City's finances. Director Varney confirmed for Commissioner Flury that the Actuary Study on GASB 45 is performed every two years. Mr. Upchurch noted if the City can afford to fund the liability, we are able to look at a discount rate that is higher than 4.5 percent. He reaffirmed that if we are discounted with a higher percent, the liabilities decrease automatically. Commissioner Castro questioned the amount of$15,082 (equivalent to a ten percent increase in FY 2008) shown under the Information Services Division/Personal Services. Director Varney explained that this reflects the reclassification of the Technical Support Analyst to Technical Support/Webmaster which was done after the FY 2007 budget process. Commissioner Flury questioned when salary adjustments are made. City Manager Pato responded it was done at Mid-Year adjustments. City Commission There were no comments on the City Commission budget. Marina Fund Assistant City Manager Donnelly commented $192,000 was budgeted to upgrade the Marina, which includes consultant services. He advised that FIND does not reimburse until after funds are spent; the funding cycle begins in January and ends in March; and they usually make a decision around August. Assistant City Manager Donnelly advised we would be applying in January for construction costs. He noted we would also be going out for Letters of Interest for management of the Marina as discussed at the Strategic Planning Session. Vice-Mayor Jones asked if this amount would include the reconfiguration of the Marina. He confirmed what items were being considered in the design plans. Vice-Mayor Jones pointed out that he wanted to do the project right. Assistant City Manager Donnelly clarified for Vice-Mayor Jones that FIND will contribute with fifty percent of the construction costs, but they will not commit to that in a one-year period. Minutes of Budget Workshop 10 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. Commissioner Flury commented we need to find out if we are going to own the Marina before we move forward with repairs. City Attorney Ansbro advised we are currently having an evaluation/appraisal performed to see what FAU would be giving up if they turn the Marina over to the City. Mayor Anton confirmed with Assistant City Manager Donnelly that the amount allocated for grounds and maintenance will be sufficient to cover any safety issues for next year. Revenue City Attorney Ansbro clarified for the Commission that the Tree Preservation Fund can be used for new landscaping, not irrigation. He advised the Commission could change the Ordinance, but it would need to be modeled consistent with the Broward County Landscape Ordinance. The Commission generally agreed to have City Attorney Ansbro review the Law with a view to include maintenance/irrigation. Finance Director Varney brought back the List of Considerations. Lifeguard Coverage Assistant City Manager Donnelly advised the recommendation was to reduce the lifeguard towers from 5 to 4 on weekends, and from 4 to 3 on weekdays. Mayor Anton pointed out that we need to know the standards before making any hasty decisions. He would not want to eliminate any of the towers and suggested doing research first. Assistant City Manager Donnelly thought we did not guard the north side of the Pier in the past, until it was brought to our attention that it could become a liability issue. It was the Commission consensus to place this item on hold. Community Bus Service Mayor Anton reaffirmed that as previously suggested by Commissioner Castro we need to have a ridership list before a decision is made. City Manager Pato advised that Broward County funding of the Community Bus will disappear next year. It was the Commission consensus to put this item on hold. Minutes of Budget Workshop 11 Dania Beach City Commission Tuesday,July 24, 2007—8:00 a.m. Reduce Operating Hours at Parks Finance Director Varney advised that closing the parks one hour early and all day Sunday would save the City $26,000. There would be an additional $12,000 saving if we close the Aquatic Center. It was the consensus of the Commission to keep the parks open with the same hours. Public Safety City Manager Pato recommended cutting the civilian clerical positions, as opposed to Law Enforcement sworn officers on the road. BSO Chief Peterson noted he would rather keep one CSA in favor of the Administrative (Crime Analyst) position. It was the consensus of the Commission to eliminate the dog handler position, one civilian position, and to keep two CSA positions, provided the emergency phone is available to the public. It was the Commission consensus to wait until Mid-Year adjustments to consider phasing in one additional Firefighter. Finance Director Varney advised the proposed increase in Fire Inspection Fees would be approximately twelve percent, which equates to additional revenues of $38,000. She further indicated that our City fees are lower than other similar cities in Broward County. It was the Commission consensus to increase Fire Inspection Fees as recommended by staff. Finance Director Varney clarified for Vice-Mayor Jones that the annual residential assessment is based on preference of units, while commercial fees are based on square footage calculated on a three year call volume average. It was the Commission consensus to raise the Fire Assessment fee for residential and commercial by 2.1 percent. Citywide It was the Commission consensus not to eliminate educational reimbursement. It was the Commission consensus not to eliminate the COLA. Minutes of Budget Workshop 12 Dania Beach City Commission Tuesday,July 24,2007—8:00 a.m. It was the Commission consensus not to eliminate aid to charitable organizations. It was the Commission consensus to raise the parking meter fees by $0.25 per hour. It was the Commission consensus not to change the 50-50 Sidewalk Program. Vacant Positions to be filled It was the consensus of the Commission to fill the following positions: Administrative Specialist—Code Compliance Unit Accounting Technician—Finance Department Recruitment Coordinator—Human Resources/Risk Management Department Fire Chief— Fire Department Firefighter/Paramedic (1)—Fire Department Code Inspector (1) — Code Compliance Unit The Commission asked Assistant City Manager Donnelly to provide data showing the number of employees used by other cities in the Code Compliance Unit. The comparison should be based on cities with similar population and geography. Vacant Positions remain frozen It was the consensus of the Commission to keep the following positions frozen: Engineer (Public Services Department) Administrative Assistant—Human Resources/Risk Management Department Lifeguard— Office of the City Manager(Beach Division) Supervisor—Beach Lifeguards—Office of the City Manager(Beach Division) City Manager Performance Review City Manager Pato noted his performance review equates to an above average 3.53 percent. He advised that four Commissioners responded. Vice-Mayor Jones chose not to provide input at this time, based on the short period of time he has been on the Commission. City Manager Pato indicated that the deficiencies pointed out by some of the Commissioners are very important and will be addressed accordingly. Mayor Anton noted for the record, the performance evaluations are the same for all staff. Finance Director Varney clarified the merit increase is included in the budget for all staff, except the City Manager, as directed by the City Manager. He wanted to wait until he received all of the reviews from the Commission. Minutes of Budget Workshop 13 Dania Beach City Commission Tuesday,July 24, 2007—8:00 a.m. City Manager Pato advised the merit increase would be 4.2 percent, but he will not accept the COLA in the future because he needs to set an example. 4. Adjournment Mayor Anton adjourned the Workshop at 2:30 p.m. CITY OF DANIA BEACH Ir /A BOB AKroN MAYOR-C6MMISSIONER ATTEST: z) - 'T.) 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