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09-04-90 v MINUTES OF THE BUDGET WORKSHOP MEETING OF THE ATLANTIC BEACH CITY COMMISSION HELD AT CITY HALL AT 7:30 PM ON TUESDAY, SEPTEMBER 4, 1990 The meeting was called to order by Mayor Gulliford. Present in addition to the Mayor were Commissioners Cook, Edwards, and Weldon. Commissioner Tucker had advised due to illness in the family she would be late. Also present were City Manager Leinbach, Finance Director Royal and City Clerk King. The City Manager reported he had checked with Summerville regarding the cost of clean-up operations after Hurricane Hugo. He was advised those operations were still on-going but Summerville estimated the recovery efforts had cost between $2.5 million and $3 million, but that all but $100,000 would be paid by FEMA. Discussion then ensued regarding establishing a policy for responding to requests for donations. It was the general consensus no donations should be made and that a written policy would not be necessary since no funds would be budgeted for donations. The City Attorney would be instructed to draft a resolution stating that while the city morally supports charitable causes, city policy prohibits financial contributions to such causes. The $500 annual contribution to USO was discussed and it was agreed to discuss this further when Commissioner Tucker arrived. Atlantic Beach Water Fund: The Mayor pointed out there was a considerable shortfall in revenues relative to estimated expenses. Tim Townsend reminded the Commission the city was under a DER Consent Agreement which required the city to complete certain repairs within an established schedule. It was determined it would be necessary to increase water rates and a lengthy discussion ensued regarding the rate structure and how and when to implement increases. After a full discussion of all the alternatives, it was concluded an increase of $7.69 in the quarterly minimum water rate would be necessary to fund the shortfall and it was agreed to round this figure off to $7.50. The rate for excess water was also increased from $0.45 per 1 ,000 gallons to $0.60 per 1 ,000 gallons. The City Manager said the proposed repairs would cost in the neighborhood of $1.5 million and he hoped the financial advisor would be able to recommend ways to fund those repairs. Tim Townsend said he felt the fixture charge for new water connections was too low and that the city should revise these, particularly in light of the anticipated development in Section H. It was also noted that even though the plans and specifications for the water line improvements at the north end of Beach Avenue had been completed, the project had been deleted from the FY 1990/91 budget. Atlantic Beach Sewer Fund: It was noted the extension of the sewer lines at the north end of Beach Avenue had also been deleted from the budget. The Mayor said Beach Avenue residents north of Seventeenth Street were on septic tanks and it was further suggested that this project could be undertaken in phases at some time in the future. The possibility of polling the property owners and levying appropriate assessments was discussed. Page Two Minutes of Budget Workshop Meeting September 4, 1990 Discussion ensued relative to developing a policy regarding vehicle replacement. Tim Townsend said he would like to be able to trade the vehicles in after about five years. The Mayor suggested consideration be given to purchasing a 4-wheel drive vehicle which could eventually be passed on the lifeguards. Sanitation Fund: In response to a question from Commissioner Edwards, Harry McNally explained the amount of overtime performed by the Sanitation Department. Bob Kosoy said the city's ordinance did not require residents to place garbage at the curb for collection and he felt it was too time-consuming for sanitation workers to pick up and replace trash cans in side yards. The Finance Director noted that the most recent rate adjustment had applied to only residential properties and it was agreed the rates for dumpster collections should be reviewed. Mayor Gulliford said the solid waste committee was working to develop a method of charging for garbage collection which would be based on volume. Buccaneer Water: In response to a question from Commissioner Weldon, it was explained the figure "transferred in" was to cover the cost of Buccaneer personnel to operate the Oak Harbor system and the Mayor explained consolidation of the systems would eliminate such transactions. Harry McNally explained the capital improvements included sandblasting and painting #3 and #4 water treatment plants, 10-inch water main extension on Sherry Drive, extension of loop system for better hydrant and fire protection, 10-inch water main extension on Pioneer Drive, and 8-inch water main extension on Wonderwood Drive. Buccaneer Sewer: Brief discussion ensued regarding the Buccaneer system, including consolidation of the utility accounts. No adjustments were made to this budget. Oak Harbor Water: The Mayor pointed out that revenues fell considerable short of expenditures and that this situation could be expected to worsen when the Capital Facilities Charge was paid off. Oak Harbor Sewer: The Mayor pointed out that revenues fell $7,000 short of operating expenses and nothing was being held in reserve for the considerable capital improvements which would be necessary. The City Manager said these improvements were proposed to be undertaken over a five-year period. Tim Townsend said repairs to the Oak Harbor sewer system in the area south of Boca Grande Avenue were urgently needed but the northern area was in quite good condition. Stormwater Utility: The Mayor asked whether a date for implementation of the stormwater management utility had been mandated by the state. Tom Bowles said the Department of Community Affairs in their comments on the city's comprehensive plan, had requested implementation by 1992. After brief discussion it was decided to leave the Stormwater Utility budget as presented. Page Three Minutes of Budget Workshop Meeting September 4, 1990 At 10:15 PM the Mayor called a brief recess. The Mayor reconvened the meeting at 10:25 and asked that the following items be considered: setting appropriate level for rainy day fund; pay increase for general employees, and review of salaries of City Manager, City Clerk and Recreation Director. He also pointed out that state revenue sharing funds had decreased over the last two years. Discussion ensued regarding the $96.00 garbage fee approved by the City of Jacksonville and the Mayor suggested a possible agreement with Duval County to reduce the county portion of the millage assessment in Atlantic Beach by an offsetting amount so the city could pass this saving along to the citizens. The Mayor further suggested renegotiation of the interlocal agreement. At time time Commissioner Tucker entered the meeting. Mayor Gulliford explained the action which had been taken relative to a water rate increase. After discussion relative to the rainy day fund, Commissioner Weldon suggested the present level should be maintained and that the dollar amount not be allowed to drop below $500,000. After brief discussion regarding pay increases for the general employees Commissioner Tucker moved to authorize a increase of 3% across-the- board subject to collective bargaining where required. The motion was seconded by Commissioner Edwards and was unanimously approved. The Mayor advised Commissioner Tucker of the action taken relative to donations to charitable organizations and Commissioner Tucker requested that the $500 annual donation to USO and the $75.00 donation to Fletcher High School football program be continued. Mayor Gulliford said in comparison with other similar positions throughout the state, Parks & Recreation Director Rose Blanchard was considerably underpaid and he felt her salary should be adjusted. After discussion, Commissioner Weldon moved to increase Ms. Blanchard's salary to $21,000. The motion was seconded by Commissioner Tucker and carried unanimously. After discussion regarding the City Clerk's present salary, Commissioner Tucker moved to authorize an annual salary of $27,000 for the City Clerk. The motion was seconded by Commissioner Cook and was unanimously approved. Discussion then ensued regarding the City Manager's salary and Commissioner Cook moved to approve an annual salary of $48,000 and increase vacation time to twenty days per year. The motion was seconded by Commissioner Weldon and was unanimously approved. All salary adjustments will be effective October 1, 1990. Page Four Minutes of Budget Workshop Meeting September 4, 1990 Discussion then ensued regarding setting the millage rate and Finance Director Royal was directed to factor in the recommended changes and see what millage rate would be required to fund the budget as amended. After a brief discussion Commissioner Tucker moved to raise the millage in an amount not to exceed .5 mil to meet the increase in the budget. The motion was seconded by Commissioner Cook and was unanimously approved. There being no further discussion, the Mayor declared the meeting adjourned at 11 :25 PM. C n Q.tt L Li Maure King, City Y