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HomeMy WebLinkAboutMinutes of Workshop Meeting - Budget & Pier Restaurant - August 31, 2011 MINUTES OF WORKSHOP MEETING BUDGET AND PIER RESTAURANT DANIA BEACH CITY COMMISSION WEDNESDAY, AUGUST 31, 2011 — 5:00 P.M. 1. Call to Order/Roll Call Mayor Flury called the workshop to order at 5:00 p.m. Present: Mayor: Patricia A. Flury Vice-Mayor: Bobbie Grace Commissioners: Anne Castro Walter Duke C. K. "Mac"McElyea City Manager: Robert Baldwin City Attorney: Thomas Ansbro City Clerk: Louise Stilson 2. Fiscal Year 2011-2012 Budget Discussion City Manager Baldwin noted that at the July meeting, the Commission made changes to the Proposed Budget and lowered property taxes to the current millage rate, as opposed to the roll- back rate as recommended. Mark Bates, Director of Finance, provided a PowerPoint overview of the proposed budget, which is attached to and incorporated into these minutes. Director Bates advised the budget contains the completion of several Capital Improvement Projects that started in previous years. He said all changes to the budget will be presented at the second Public Hearing in September. Commissioner Castro requested an updated CIP with clear information on whether the Neighborhood Improvements are in the CIP or the General Budget; if it is in both, she would like to know that also, including the total amount. Neighborhood improvements includes: lighting, solar lighting, sidewalks, and anything else we are doing for beautification. Commissioner Castro also requested a real estimate on the circle project on Dixie Highway, including if and when we are going to do the project. She questioned why we keep holding up neighborhood improvements. Commissioner Castro remarked this is the first year we are not receiving clear information on the budget. City Manager Baldwin responded it is because we are trying to make major changes to the budget this year, which the Commission approved during the CIP meeting. Commissioner Castro noted she asked for additional landscaping dollars for the Griffin/Stirling/Federal Highway/Dania Beach Corridors. She wants to make sure we maintain these areas once they are in place. Director Bates advised Landscape Maintenance is in Streets Maintenance, which has been increased $200,000.00 from the prior year. Dominic Orlando, Director of Public Services, said we need an additional $30,000.00- $50,000.00 for landscaping. Commissioner Duke suggested the Public Works Department handle public works issues, and not be responsible for landscaping, it should be contracted out. Commissioner McElyea agreed with Commissioner Duke. Commissioner Castro does not care how it gets done, but it needs to et done. g g Mayor Flury objected to the two $60,000.00 Ford Expeditions for Fire Rescue. She suggested they be removed and the funding moved to neighborhood improvements or landscaping, because last year the residents received a 20% increase in Fire Assessment Fees. She noted the vehicles could be purchased in the next year's budget. Charles Raiken, Deputy Fire Chief of Administration, BSO Fire Rescue, responded that the vehicles were to replace two vehicles that have met their life expectancy. These vehicles were already to be included in the fleet, however, they were traded-in without the Fire Department's knowledge and used for utility trucks. Mayor Flury suggested postponing the purchase of the vehicles for one year. Commissioner McElyea and Vice-Mayor Grace concurred with Mayor Flury. Commissioner Castro wanted a consensus from the Commission for the items in the CIP. City Manager Baldwin said we will have periodic CIP meetings before the budget hearings. Mayor Flury commented that she thought we were doing the capital projects today, she did not know we were doing half a budget. Commissioner Castro noted she does not like the Cost Allocation Plan because she does not think the allocation process is thorough enough, and she is not comfortable with it. She explained that there is not enough correlation between the matching up that was done. Minutes of Workshop Meeting 2 Budget and Pier Restaurant Dania Beach City Commission Wednesday, August 31,2011 —5:00 p.m. Director Bates noted the plan was done by Maximus, specialists in this field, and there was no intent to overcharge or undercharge anything. He said they would be back this year to finish the process. Director Bates pointed out that the City has had three continuous years of reduced tax revenue, and it is notable that the City has maintained its financial health, met its service levels, and reduced it taxes. Director Bates advised that the City's Health Plan Actuary has informed us that the actuarial estimate cost for this year should be increased by 16%, bringing the cost for family coverage to over $2,000.00 per month, and the employee payment is only $25.00 per month toward that coverage. This is an increase of$450,000.00, and is not included in the budget. Director Bates confirmed that changes cannot be made until negotiated through collective bargaining, which could begin in January. He recommended deferring any action until the end of next year when we know the actual cost. Director Bates noted that math errors were discovered in the payroll spreadsheet resulting in an adjustment of$140,000.00. Director Bates confirmed there is a $600,000.00 Contingency in the proposed budget for unforeseen needs and matching grant funds. Mayor Flury suggested that matching grant funds be separated from the Contingency Budget of $600,000.00. Director Bates advised we are developing an Enterprise Fund for the Beach area. Mayor Flury is opposed to this because if we keep developing Enterprise Funds, there will be no money left in the General Fund. Commissioner Castro and Commissioner Duke noted they would like to eventually see an Enterprise Fund for the entire marina and beach area. City Manager Baldwin said it would be premature to do it now. Director Bates advised the only change from the proposed budget summary is a reduction of $450,000.00 in tax revenue. Mayor Flury suggested that the Finance Director highlight the changes to the budget document for the next meeting. She said Aid to Private Organizations needs to be broken down in more detail. Commissioner Duke remarked we need consistency and fairness; transparency, and accounting; and the list should be with the committee that was formed, not the Commission. He said he is confused as to why we were discussing this tonight. Minutes of Workshop Meeting 3 Budget and Pier Restaurant Dania Beach City Commission Wednesday, August 31,2011 —5:00 p.m. Commissioner Castro commented that we cannot afford to support every organization; traditionally cities provide funding for seniors and children. She wanted to add funding for the Optimist Club and the Tourism Council, and said she wants the Economic Development Director to be involved in the Tourism Council. The Commission agreed on the following items: Professional Services • Lobbyist - $20,000.00 • Chamber of Commerce - $20,000.00 • MLK - $10,000.00 • Aid to Private Organizations - $30,000.00 • Economic Development - $12,000.00 • Consultants—as presented Promotional Activities—as presented Professional Services—Parks • 4`" of July Celebration - $10,000.00 — move to Economic Development/Design District • Senior Citizens - $13,000.00 • Dania Bears - $5,000.00 Tourism Council - $5,000.00 City Manager Baldwin noted the changes will be incorporated into the budget. 3. Pier Restaurant 3.1 Fishing Pier and Restaurant—combined or separate operations 3.2 Type of Restaurant 3.3 Concessions at Bait Shop 3.3.1 Sale of Alcohol 3.3.2 Sale of Tobacco 3.3.3 Drinks and Food 3.4 Parking 3.5 Special Events 3.6 Broker/Marketing 3.7 Process of Bid Submittals 3.8 Pier Rate City Attorney Ansbro asked the Commission for comments on the proposal included in the packet. Minutes of Workshop Meeting 4 Budget and Pier Restaurant Dania Beach City Commission Wednesday, August 31,2011 —5:00 p.m. Dave Nicholas, Consultant, provided an overview of his professional qualifications. He noted he worked with Dan Segal of Weiss Serota, on the Beach Watch Restaurant. Mr. Nicholas said the property is a diamond in the rough, and it is critical to get the right tenant. He questioned if the City planned to have a restaurant broker handle the property because it needs to be marketed, possibly to a national tenant or someone who has the financial capacity to do the right thing with the property. Mr. Nicholas did not recommend serving breakfast. He said the rent is low, and noted there are different ways to calculate it. Mr. Nicholas advised that a good tenant expects substantial improvement dollars, possibly a $1 M investment. He suggested the Bait Shop be kept with the restaurant because it could be a selling point. Mr. Nicholas suggested the following types of restaurants: • Aruba Beach Cafe in Ft. Lauderdale • Coconuts • Houstons—however it might be too upscale, but the quality is good • Flanigans • Tarks—dressed up • Joe's Crab Shack Mr. Nicholas noted the price per person should be $16418. He said the building is cold from the outside, and should be laid out differently; it needs to be cool; it needs to have a signature. Commissioner Castro noted she wants to keep the Pier separate from the restaurant; however, she would not object to the restaurant supplying the food to the Pier. Commissioner Duke stated we need to make a commitment as a City, with the restaurant, that we are going to clean-up the beach area. Commissioner Castro questioned the parking. Mr. Nicholas said for the right tenant, parking will be an issue and some type of parking validation should be provided. The Commission concurred on the following items: • Keep the bait shop out of the RFP • Eliminate requirement for a degree • Requirement for owner-operator • Step "A" - Preliminary LOI • No Broker- unless we go to Step "B" • No sale of beer or tobacco on the Pier • Pier Rate - $2 to walk - $3 to fish • Lease for 10 years, with 2 five-year renewals Minutes of Workshop Meeting 5 Budget and Pier Restaurant Dania Beach City Commission Wednesday,August 31,2011 —5:00 p.m. 4. Adj ournment Mayor Flury adjourned the meeting at 6:40 p.m. ATTEST: CITY OF DANIA BEACH LOUISE STILSON, CMC PATRICIA A. FLURY CITY CLERK IS MAYOR Approved: October 11, 2011 ATEO 19" Minutes of Workshop Meeting 6 Budget and Pier Restaurant Dania Beach City Commission Wednesday,August 31,2011 —5:00 p.m.