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HomeMy WebLinkAboutWorkshop (34) MINUTES OF WORKSHOP DANIA BEACH CITY COMMISSION SATURDAY, MARCH 15, 2008 - 8:00 A.M. 1. Call to Order Mayor Jones called the Workshop to order at 8:00 a.m. 2. Roll Call Present: Mayor: Albert C. Jones Vice-Mayor: Anne Castro Commissioners: Bob Anton John Bertino Patricia Flury City Manager: Ivan Pato City Attorney: Thomas Ansbro City Clerk: Louise Stilson Others Present: Assistant City Manager: Colin Donnelly Finance Director: Patricia Varney Assistant Finance Director: Nicki Satterfield HR/Risk Management Director: Mary McDonald Parks and Recreation Director: Kristen Jones Assistant Fire Chief: Michael Cassano Public Services Director: Dominic Orlando Principal City Planner: Corinne Lajoie BSO Chief: Donn Peterson 3. Financial challenges facingthe City City Manager Pato presented his opening statement: In my FY 2008 budget message I stated the following: "if voters approve the January referendum on property tax reform, it could create what some experts have referred to as "the perfect financial storm" for many local and county governments throughout the State of Florida". I further stated "Next year's budget will be far more challenging than this one". I had no way of knowing that it would be as challenging as it is going to be. The direction you give us today and the decisions we make will redefine the City's course. The taxpayers have spoken, Proposition One is here this morning about to show us its face! The Tax& Budget Reform Commission could recommend further tax cuts and impose additional restrictions on you as elected officials when it comes to setting fees and other taxing mechanisms. The state of the economy in the State of Florida and the country is no longer a mystery, we are in a recession. Besides facing deficits in this year's budget, we are projecting an estimated shortfall in FY 2009 of approximately $2.4M. If property assessments drop, as many predict, it will be worse. We have few choices; today we will ask you to choose between bringing down expenses, raising revenues, or both. Before we can even begin our work on preparing the next proposed budget for your consideration, we need your direction and the benefit of your collective wisdom. That is what needs to happen here today. We are facing the challenge to provide a budget that will minimize reductions in our level of services, will not compromise public safety, and one that inflicts the least amount of pain on our residents and employees. However, should the recommendation of the Tax & Budget Reform Commission materialize, or further reductions occur in property tax revenues, a crippling effect may occur in one or all of these areas. Because of the great working partnership that has existed between our elected officials and this administration during the past five years, the City is financially better positioned today than it was just a few years ago to absorb some of the challenges coming our way. We look forward to your direction and a productive meeting. Patricia Varney, Director of Finance, presented a PowerPoint which is attached to and incorporated into these minutes. Vice-Mayor Castro clarified with Director Varney that the final recommendation of the Tax and Budget Reform Commission could be a combination of a voters' approval and a State Statute. Discussion followed among the Commission regarding the possible spending limitation increase based on change/increase in population. They thought it would be a good idea to bring it to the attention of the Legislature letting them know that the City would oppose the proposed formula. Director Varney noted the shortfall projected for FY 2009 would be approximately $2.4M. She pointed out that this amount does not include other expenses which have not yet been calculated, such as increase in property and liability insurance, pension costs, and any increase in maintenance costs. Director Varney clarified for Vice-Mayor Castro that the sum of SIM will still be available in 2009 for neighborhood improvements. She advised that some of the options to be discussed with the Commission will still be subject to Union negotiations. Commissioner Flury commented that we should not base our decisions on what we think might happen, but proceed with what we think is the right thing to do at this time. Minutes of Workshop 2 Dania Beach City Commission Saturday, March 15,2008—8:00 a.m. The Commission agreed that the Summer Program Fees should stay the way they are. The Commission requested that staff review and bring back recommendations for the percentage/amount that employees should pay toward the cost of insurance. They also requested that staff review the total costs to the City for employee benefits. Further discussion ensued among members of the Commission regarding the City's need to increase revenues. They pointed out that although no one wants to increase taxes, it may be necessary to consider the Roll-up Rate with options on the table which would lead to a sound decision. Director Varney suggested a Special Assessment for neighborhood improvements. She noted the process would take 12-18 months for implementation. If the assessment is approved, it would be best to place it on the tax bill. Vice-Mayor Castro would like to discuss Park Impact fees at the upcoming Budget Workshops. She thought we could use some of the Park Impact fees for City-wide beautification. The Commission agreed they did not want special assessments unless a specific neighborhood requested certain improvements that other neighborhoods did not receive. The Commission agreed we could explore the option for contract management of the Marina. They discussed the fact that the Marina has not been returned to the City. City Attorney Ansbro explained that he has been in touch with FAU and provided them with an appraisal of the Marina. They indicated they are not in the Marina business and would like to return it to the City. He asked them to expedite the negotiation process due to the daily deterioration of the Marina. City Attorney Ansbro stated that according to the appraisal recently conducted, the buy-out would be approximately $900,000 for the City to pay to FAU over a period of fifty years. City Manager Pato noted it is important that we recover the Marina because we will not be able to apply for grants until we can show that we own it. Commissioner Anton advised that he and City Manager Pato met with Frank Brogan, President of FAU and all they wanted to negotiate with the City was a $20,000 scholarship fund that the Marina had applied to FAU. Mayor Jones requested that a letter be sent to FAU indicating that the attorneys have been dragging their feet in finalizing the negotiation. Commissioner Bertino pointed out that the City owns the Marina, and FAU owns the leasehold. Minutes of Workshop 3 Dania Beach City Commission Saturday, March 15,2008—8:00 a.m. The Commission agreed to consider the following Revenue increases: ➢ Business License Tax Increase ➢ Family Health Insurance Contribution by Employees ➢ Parking Permit Fees ➢ Roll-up Rate ➢ Contract Management of the Marina Commissioner Castro noted there are other items in the budget she would consider reducing or eliminating in the 2009 budget which are not on the list. The Commission agreed that the following items would not be funded unless they decide we still need these services: ➢ CRA Attorney ➢ Lobbyist in Tallahassee ➢ Insurance Consultant ➢ ADA Consultant ➢ Grant Writer Commissioner Flury thought we needed to look at the Code Attorney fees and decide if we need to spend $200,000 for these services. She pointed out that if the Chief Code Officer attends the Special Magistrate meetings, there is no need for the Code Attorney to be present. Vice-Mayor Castro noted we needed to look at this item in detail during the Budget Workshop. The Commission agreed we need to explore outside attorney contractual services. Commissioner Bertino suggested adjusting work hours of Parks Department personnel so the parks are open when children are out of school. The Commission noted the following items would be open for future consideration: ➢ Reduce pool operation hours ➢ Reduce Beach coverage/hours ➢ Janitorial service 3 X a week ➢ Eliminate landscape contingency ➢ Eliminate positions ➢ Reduce Economic Development Fund ➢ Reduce Study by City Manager ➢ Reduce Contingency ➢ Reduce funding for future CIP's Vice-Mayor Castro commented on the item relating to the elimination or reduction of the expense account for Department Heads, City Manager, City Attorney, Mayor and Commission. She thought the sum of$500.00 was already included in their paychecks and should not be called an Expense Account. Vice-Mayor Castro would like to leave this item open for further consideration. Minutes of Workshop 4 Dania Beach City Commission Saturday,March 15,2008—8:00 a.m. Commissioner Flury opposed reducing or eliminating the Expense Account item. She pointed out that Department Heads work very hard and we should take good care of them. She also noted that she uses her expense account to make charitable contributions. Commissioner Bertino agreed with Commissioner Flury. He thought eliminating this item would mean cutting people's salaries and that is not the right thing to do. Vice-Mayor Castro suggested the City issue checks for charitable organizations when needed because she does not want this amount as part of their salaries to be used for entertainment/charitable purposes. Mayor Jones agreed with Vice-Mayor Castro and would like to leave this item open to explore other options. Commissioner Anton would like to leave this item open for further consideration. The majority of the Commission agreed to consider eliminating the Expense Accounts for Department Heads, City Manager, City Attorney, Mayor and Commission. The Commission agreed to fund the following items in 2009: ➢ Brenda Chalifour Contractual Services ➢ Chamber of Commerce ➢ Aid to Non-profit Organizations ➢ Seniors Program ➢ July 4`h Celebration ➢ Community Bus Subsidy ➢ BSO - 1 Zone ➢ Grant Matching Funds ➢ Citywide Neighborhood Improvements ➢ 50-50 Sidewalk Program The Commission noted we should not eliminate the Cost of Living Allowance (COLA). The Commission agreed not to discuss the items that would be addressed during the upcoming Union negotiations. The Commission noted the Employee Award Program should be handled by Management. The Commission noted that the Reduction of In-house Legal Office Expenses item should be treated as any other City Department. They agreed to leave it open for further discussion. Commissioner Flury clarified with Director Varney that the item relating to the reduction of funding for future CIP's referred to new projects, not the ones that have already been funded. Minutes of Workshop 5 Dania Beach City Commission Saturday,March 15,2008—8:00 a.m. Vice-Mayor Castro noted we need to look at the CIP list because some projects may have been completed under-budget and it might be possible to get those funds back. She indicated we could try to reduce the Scope of Services on other projects which have not yet been executed. Vice-Mayor Castro further suggested having a Workshop to evaluate the projects that have been completed in order to determine future priorities. Mayor Jones recessed the Workshop for a five minute break at 10:05 a.m. Mayor Jones reconvened the Workshop at 10:13 a.m. 4. 109 Park/Private-Public Opportunities Vice-Mayor Castro noted that we need to know the next step now that we have purchased the 109 Park property. She suggested issuing an RFP for a parking garage and other structure which would stimulate economic growth in the downtown area and put the property back on the tax roll. Vice-Mayor Castro thought the CRA Director should be involved in the development of the property. She pointed out that the Commission should give direction as to the minimum requirements we want to see when we develop that property, such as parking and additional BSO offices. The Commission unanimously supported a private/public partnership. Additional Item Commissioner Anton noted he was approached by a person in the west area of the City who has a conflict regarding the requirement to be one foot above FEMA. He pointed out that this does not reduce flood insurance rates and asked for consensus for the City Attorney to eliminate that requirement in the Code. Dominic Orlando, Public Services Director, advised that the limits of flood elevation could change. He said that if we lower the requirement we may be doing a disservice to residents who are building their homes today. Commissioner Flury asked if we could make a one time exception in order to assist the residents with this situation. City Attorney Ansbro recommended the interested parties come to the Commission meeting and explain their problem in detail so we can find a solution. Commissioner Anton suggested we consider including the option of stem walls in our code. Vice-Mayor Castro thought staff should look at the plans in detail and bring our concerns to the contractor's attention before they move any further. Minutes of Workshop 6 Dania Beach City Commission Saturday,March 15,2008—8:00 a.m. It was the consensus of the Commission to have Director Orlando meet with City Attorney Ansbro, Corinne Lajoie, Principal City Planner, and Phil Reeves, Building Official, for their recommendation. He should then bring it back to the Commission for discussion and consideration. 5. Crafting a Legislative Agenda Vice-Mayor Castro noted we have temporarily retained the services of Carole Duncanson to represent the City in Tallahassee. She asked for consensus for the lobbyist to deal with the following items: Trafficways Reduction on US 1: Vice-Mayor Castro explained Ms. Duncanson asked for a meeting with FDOT Regional Director to be held on Thursday, March 20, to discuss their opposition. Corner of Griffin Road and I-95: Vice-Mayor Castro did not understand FDOT reluctance to let us improve the area, considering it is an entranceway to our City. Solar Lights: Vice-Mayor Castro hoped Ms. Duncanson could ask Governor Crist to make Dania Beach a pilot project in the Governor's Green Initiative Program. Flooding in the southeast section of the City: Dominic Orlando, Public Services Director advised that they met with FDOT and they agreed to give the City $500,000 for the stormwater improvements proposed for the southeast area. Commissioner Bertino would like our lobbyist to try to obtain more funds from FDOT for this project. Commissioner Anton would like our lobbyist to oppose any State funding to be used for the Fort Lauderdale-Hollywood International Airport expansion project. Commissioner Anton would like our lobbyist to support an item sponsored by Senator Geller some time ago, relating to municipalities having full control of the Land Use issues as opposed to the County. City Manager Pato confirmed for Commissioner Flury that a 60-day contract has been signed with Ms. Duncanson with the understanding that the services could be continued for the entire year for$40,000 if the Commission so desires. Commissioner Flury would like Ms. Duncanson to concentrate on issues that do not require funding and where she can use her influence. She further indicated that Ms. Duncanson has lots of clients connected with the Airport expansion so we should not expect her to act on our behalf on this matter. Minutes of Workshop 7 Dania Beach City Commission Saturday,March 15,2008—8:00 a.m. City Manager Pato noted he asked the company that prepared promotional brochures for the City in the past, to create one relating to the Solar Lighting Program. He suggested the Commission include the gaming issue on the legislative agenda. City Manager Pato pointed out this was important now that the Legislature is discussing some modifications to the pari-mutuel legislation, which could make Boyd Gaming reconsider their decision. Mayor Jones commented that he mentioned to Ms. Duncanson most of the items previously discussed. He also asked her to keep us posted regarding the issue of the proposed ocean outfall limitations. Commissioner Bertino suggested creating a "maintenance fund" with the money we are saving with the solar lighting. This fund would be used to pay for the cost of replacing the current batteries when needed. Vice-Mayor Castro asked if we could look at the Occupational License Program to facilitate obtaining necessary information. Joe Van Eton, 1500 SW 2"d Avenue, suggested the Special Exemption for Working Waterfronts as an item for the lobbyist to address. Commissioner Flury asked that staff prepare a legislative document. City Manager Pato noted that changes are being made to the Business Tax License (Occupational Licensing) Department which should be in place by April 1, 2008. 6. Adjournment Mayor Jones adjourned the Workshop at 10:55 a.m. ATTEST: CITY OF DANIA BEACH LOUISE STILSON, CMC ALBERT C. JONES CITY CLERK MAYOR-COMMISSIONER Approved: April 8,2008 Minutes of Workshop 8 Dania Beach City Commission Saturday,March 15,2008—8:00 a.m. L O cry a, :� � O C3 L V 4— 0 CA) O = LL Z x xnLU o ' o LU n c Q 4— } L. � V 5 C3 > C: 4 - •� O > •— O L to +_ V L. a (9 E •- X � v, � 4- - � 0� w Qo �— CA) L o�i + s > > W •x > •— c, N DC — o � a o O\ o° o 0 M M N 0 Lid LLB O\ I� O\ co N N .O 06 1- O� 1%� O\ W O N %O .-i N L17 � M 0 D 0 0 � N M M N ` 'I n AD9-4cPr 4pr 4cpf Apr 40or +- '� N — u - V T O } a1V N > �� N C > pip c \ -FCC DC •� L. CO CA) 0 ice } } N w N U V xn o °' Qa iL d-CL cL iL (J) LL NO O � o � %D . . LL N cn V O o '� 00 C3 N � � c� O L X o xn o N v } xn Q o) O x u O o _ L . � CV Q o - 4- CL o -� 00 0 W 6 L. L 0 o V 00 0� cv 3 o o o � ZLLLL . . 0 0 0 9 S O x xn (19 � O CA) O � N �/ C3 I C %n H N N 0 V a U. o) � in Q H N �i v s CA) CL to CL �-- Tn CA) CA) ^ •— O IL CO O o �-+ � a- aC H V Lq s W to 13. Q. a. i A_ a. O 'vim. O O O O O c _ I � •U in. 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H LO FLORIDA INTEROFFICE MEMORANDUM To: Mayor Albert Jones - aA4 L 01*16 � Vice-Mayor Anne Castro �U Commissioner Pat Flury Commissoner Jo Ber n tino Commissioner Bert n From: Ivan Pato City Manage Date: March 12, 2 08 Subject: Financial Challenges Workshop Attached you will find updated information which will be useful to you. We have updated the numbers on the revenue and expenses area and I have included a new attachment which shows the major projects C.O.'d in 2007 and the ad valorem tax revenue which we expect will be recognized in FY '09. If you have any questions or desire additional information please let me know. "Broward's First City" 100 West Dania Beach Boulevard, Dania Beach, Florida 33004 Phone: (954) 925-2200 w daniabeachfl.gov Amount Loss of Ad Valorem Tax Revenue due to addl $25K homestead (655,381.00) Revenues shortfall in FY 2008 (700,000.00) Ad Valorem Tax on New Construction 91,686 Expenses in FY 2008 not occurring in FY 2009 Capital projects/outlay 1.217.950.00 Operating Expenses. (Griffin Road Corridor, 2nd half City wide zoning, Fire Station 93 rentals) 299,582.00 Debt Service 128,578.00 Additional required expenses in FY 2009 GASB 45 requirement(actuary calculates at$1.8, allocate to enterp fund based on#of employees) (1,512,000) Election Cost (91,545) Increase BSO 5% (419,413) New fuel Station ($922,000) Debt Service (20 yr) (48,350) Public Work facilities (38,333) New Fire Station furnishings (105,500) New Fire Station Operating Expenses (electricity, water, insurance etc) (103,656) Salary & Fringe increase(5% inc based on 2/28/08 payroll with current vacancy credit) (483,619.00) Estimated Shortfall for FY 2009 (2,420,001) Options: Revenue Increase Options Increase Family Insurance Fire from;$37 5Q to$11' .$0 o4o& WJ4fk WWII ' Gen`er�aPL'mployees,fram $12 0to, $311 ,t'a4d, orixne§ t;ateon)t`�" Business License Tax Rev (Inc 10%, max allowed by Statute) - Parking Permits fees increase Roll-up Rate Impose special assessments Summer program (Fees increase) Contract management of the Marina Expense Reduction Options CRA Attorney(Reduce from $45K to$20K) Lobbyist, Tallahassee Insurance Consultant ADA Consultant(Reduce from 30K to 10K) Grant Writer Brenda Chalifour Outside attorney contractual services Chamber of Commerce Aids to non-profit organizations Seniors Program (reduce from 1 OK to 5K) July 4th celebration Reduce operating hours in Recreation Reduce pool operation hours(Jeff Ellis contract) Reduce Beach coverage/hours Community Bus subsidy BSO Reduction of 1 Zone Reduce City Hall janitorial service to 3 days a week- Eliminate contingency for landscape Expense allowance for all Directors, City Manager and City Attorney Expense allowance for all Commissioners :�ilmtna'fr5 :efQLAfie5iti"rarpSe' �" F H,, Convert¢neFd iD IUipslOt i s(pyjppf ly pfbd RSifYLbfkH.I Employee Award Program Reduce in-house Legal office expenses Create secretarial pool llrfifofna,Gle�nfP,4 seivibEYar f=.�fekpe��n'p�'1 m�i..��l�:!d�i� G��4n9�' ", Redupe 5d%vflraif ng+aceDurh(lekducuon� Bfdap a ., Vacant positions unfillled Eliminate positions Economic Development (Reduce from 50K to 25K) Studies requested by City Mgr(Reduce from 30K to 15K) Grant matching(Reduce from 50K to 20K) Contingency(Reduce from 500K to 300K) Reduce funding for future CIPs to$50K Postpone Citywide Neighborhood Improvement(CPTED study) Eliminate sidewalk 50-50 program O O V O O O O O O O C O p N y w •, � Noo c c a am L C q o 0 0 0 u o 0 0 0 0 0 o c o 0 0 0 0 0 = c c c 6 O L N N N N N N N N N N N N N N as 0 '- O y L � N A C w n a > > d S S W ] 2 D o c = o E m o 0 O M L O Y y Y Y itl a V � � m e w ss _ ra ss s9 ca cv y jq ea w r,9 yi sv us M» ss sv "" y F vi vi a v _ r F > N N N O N N C ^ , G C q O O J V � L O U ?O N L L q � O O vl _ .-• N N n O _ N r to O U G79 °. 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