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6-27-11 MINUTES REGULAR CITY COMMISSION MEETING June 27, 2011 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor Mike Borno City Attorney Alan C. Jensen Mayor Pro Tem John L. Fletcher City Manager Jim Hanson Commissioner Jonathan Daugherty City Clerk Donna L. Bartle Commissioner Paul Parsons Recording Secretary Nancy E. Bailey Commissioner Carolyn Woods Call to Order/Pledge Mayor Borno called the meeting to order at 6:00 p.m. Mayor Borno gave the Invocation, followed by the Pledge of Allegiance to the Flag. Approval of Minutes 1. Approve the minutes of the Regular Commission Meeting of June 13, 2011. Motion: Approve the minutes of the Regular Commission Meeting of June 13, 2011, as written Moved by Daugherty, Seconded by Parsons. Commissioner Woods expressed her disappointment in the change made in the minutes at the last meeting removing the comments made by Lyman Fletcher. She stated it seems to her that they have a policy that the only person who can interpret citizen comments is Nancy Bailey, which is definitely a duty of the Clerk's office. She stated she is not sure putting all that authority on one person's shoulders really benefits the citizens when their comments are not accurately reflected. She agreed Lyman Fletcher spoke in disagreement but the reasons he spoke in disagreement were not put into the minutes and she believed they were valid. She further stated he used the phrase "arbitrary and capricious" four times which made her think that was the main reason for his disagreeing with what was going on, but none of that comes forward in the statements that were put in the minutes. She stated she would like to follow this up with a discussion as to how the citizens' comments are going to be reflected in the minutes because she does not believe it is a fair representation and it has been this way for a while. She stated some citizens' comments are written almost verbatim and others are hardly given notice. She stated it doesn't seem to matter how long they speak, it is the content of what they say that seems to matter more, which she believes is a bad policy for the City. She wants the Commission to take that matter up and come up with a better policy than what they have been using so far. Mayor Borno stated her comments are duly noted and she is welcome to her opinion. Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors. Mayor Borno opened the Courtesy of the Floor to Visitors. He welcomed the audience and explained the process for public comments. June 27, 2011 REGULAR COMMISSION MEETING Pale 2 Chris Huffman, 824 S. 6 Street, Fernandina Beach, addressed the Commission regarding the employee insurance. He stated the average pay in Public Works is $14/hour. He stated there will be no money to pay for insurance if the Commission adjusts it as in the proposals he has seen. He stated most employees in Parks have families and frequently have to borrow money from each other just to get to the next payday. He stated the only thing they have is the benefits package of decent, not great, health insurance and raising the cost of the insurance, especially the family coverage, will completely wipe out the meager budgets of employees who are barely getting by. He stated the average worker will not be able to afford to work here. He stated if the City loses career employees because they cannot afford to stay here and provide insurance for their families, the work force will be replaced by lower quality employees who are not personally invested in the City. He stated it will simply become a low paid job with little or no benefits and no pride and little effort will be put in their work and the City quality will decline steadily. He suggested there are other ways to tighten the spending and he has plenty of ideas if they want to talk to him, but raising the insurance cost to employees is not a good idea. Bill Ray, 2841 Calumet Circle, Jacksonville Beach, addressed the Commission regarding the insurance stating if the insurance cost to the employee goes up he will no longer be able to afford to continue employment here. No one else from the audience spoke so Mayor Bomo closed the Courtesy of the Floor to Visitors. Unfinished Business 3. Unfinished Business from Previous Meeting from Previous A. City Manager's Follow -up Report. Meeting None. Consent Agenda 4. Consent Agenda ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COMMISSION ON THESE ITEMS. A. Acknowledge receipt of the Recreation Programs Special Events Report and the Financial Report for May 2011 and the Public Works and Utility Report as of June 15, 2011. B. Extend the Annual Contract with Nautical Escapes for Portable Kayak Concession at Dutton Island for one year. C. Award the annual contract for Data Cabling, Troubleshooting, Repairs and Installation to Truevance Management, Inc. at the rates listed in Bid No. 1011- 12. D. Award a contract to TankRehab.com, LLC in the amount of $33,900 for Interior Repair and Painting of Ground Storage (Standpipe) Tank at Water Plant No. 4 (Bid No. 1011 -13), and authorize the City Manager to sign the June 27, 2011 REGULAR COMMISSION MEETING Page 3 contract. Authorize staff to encumber $3,390 under a separate purchase order for use as a contingency for the project. Mayor Borno read the Consent Agenda. Commissioner Fletcher pulled Item D. Motion: Approve Consent Agenda Items A, B, C, as read. Moved by Fletcher, Seconded by Daugherty. Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Commissioner Fletcher asked if TankRehab.com has a physical address. Utility Director Donna Kaluzniak stated they do. Commissioner Fletcher also asked if we require a performance bond for a job this size. Ms. Kaluzniak stated we did require one. Motion: Approve Consent Agenda Item D, as read. Moved by Fletcher, Seconded by Parsons. Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Committee Reports 5. Committee Reports None. Action on Resolutions 6. Action on Resolutions None. Action on Ordinances 7. Action on Ordinances None. Miscellaneous 8. Miscellaneous Business Business A. Health Insurance Renewal. Human Resources Manager George Foster summarized his staff report pointing out that the table in his report is a summary of each 13 -page health plan. He stated over the last four years the City has had double digit health insurance increases and has reduced the benefits provided to the employees and increased their premiums, copays and out -of- pockets. He stated the average per year increase over the last four years has been over 22.5% but by the City reducing the benefits that our employees receive we kept that to approximately 4.5 %. He explained there are two costs to the employee, the premium and the deductibles and/or copays. He stated the plan that was proposed was based on the guidance he received to try to keep the City's cost to about a 0% increase. He stated that plan will result in higher deductibles to the employees with the June 27, 2011 REGULAR COMMISSION MEETING Page 4 individual deductible going from $2,000 to $5,000 and will also result in the family deductible going from $4,000 to $15,000. He further stated the higher out -of- pockets with the proposed plan would be going from an individual of $5,000 to $10,000 and for family from $10,000 to $20,000. He stated the premium increase to employees is over $150,000 which would average out to about $1,400 /employee /year. Mr. Hanson stated he has some serious concerns about the proposal on the table. He stated it does meet the strategic planning goals set out in a discussion last February. He pointed out that they did not have the numbers on how much this was going to cost at that time and we now have a 30% increase in group health insurance cost, which is approximately $1 million. He stated the insurance company is losing money on us this year. He stated for every dollar that was paid in for premiums there was approximately $1.30 -$1.50 paid out in claims in the last year. He stated the proposal on the table to meet the goals that were set, both decreases the coverage (and many of our employees would not be able to pay the maximum deductibles) and passes along the higher cost for that lower level of coverage to our employees. He stated, as an example, the employee's share of the cost for family coverage already costs $463 /month and under the proposal, this would go to $631 /month for an increase of $167 /month, which is approximately $1 /hour. He pointed out that for someone making between $11- $14/hour, taking a dollar an hour away to pay for increased family coverage is pretty serious. He stated Mr. Foster also asked in his staff report that the Commission approve allowing the City to offer a supplemental coverage policy for employees that would be at their expense. He stated he believes if the employee can't afford the increased cost of family coverage, they can't pay for the cost of the supplemental policy either. He also pointed out that this is the 5 year that coverage has been lowered and the increased cost was passed on to the employees also. He stated although the City has to make ends meet, in this particular case, he believes this may be too much and believes we need a considerable amount more discussion. He stated this is a very complicated subject and there is a range of options. He stated he realizes it is unfair to ask the Commission to make a commitment to put any more money toward this when they haven't even seen the budget but as Mr. Foster pointed out they have to have open enrollment so they can have a policy ready to start October 1. He stated the staff report recommendation may not be the right thing in this particular case. Commissioner Parsons agreed that during the strategic planning the Commission did not want to raise any part of the City budget and believes that is fiscally smart but, at the same time, there comes a point where sometimes it just doesn't make sense. He stated that's what those strategic plans are, strategies. He stated that was a strategy they tried to meet and they are at a very big disadvantage not knowing what the budget is going to do. He stated although it is not the City's fault that the economy has been so bad, at the same time, he believes they need to find the money and not raise the premiums for the employees. He stated this budget will be a lot of work for this Commission, probably the hardest one they have ever done or that the City has ever faced, but they need to find a way to come up with the money. Commissioner Daugherty stated he agrees with Mr. Hanson that this needs to be discussed further and they need to look at more options. He believes it would be wise to defer until the budget workshops. June 27, 2011 REGULAR COMMISSION MEETING Page 5 Commissioner Fletcher stated he believes this issue needs more study and suggested deferring a decision and scheduling a workshop very soon. Mayor Borno asked Mr. Foster what date they need to make a decision by. Mr. Foster stated they would need a decision no later than the middle of August. He also clarified that Column B has a significant increase to the employees and to not give the employees an increase would require both the City's increase and the employee's increase to be picked up by the City, which would be approximately $275,000 for the City to fund that amount. He stated that would keep the employee premiums and benefits at the current level. Commissioner Daugherty asked Mr. Foster if there is an option for employees to opt out and receive a cash benefit. Mr. Foster stated the City does not have that option. Commissioner Daugherty asked if we could go in with other cities. Mr. Foster stated that type of action would probably take two or three years to implement and he believes most cities would not want to do that because we don't know what is going to happen to health insurance in 2014. Mr. Foster further explained the cafeteria plan. Commissioner Fletcher asked if the renewal date could be pushed back so it doesn't fall during this budgeting time. Mr. Foster stated he could contact our insurance plan and ask for a January 1 renewal, however, they build into the renewal rates a medical cost of inflation, so if we delayed, the 28% increase may go to a 31 -32% increase. Discussion ensued. Commissioner Woods asked how many employees the City is covering with our health insurance. Mr. Foster stated we currently have 66 in the employee -only coverage, 11 with parent and child, 12 with 2 party, and 14 with family for a total of 103. Commissioner Woods stated she appreciated the two employees speaking to the Commission tonight and definitely feels their pain and wondered if they could have more employee and citizen input at the workshop so they have time to speak before they start and maybe even time to speak again after the Commission has their discussion, so all sides are considered. Discussion ensued regarding the workshop. It was the consensus of the Commission to schedule the workshop on July 12, details to be determined. Commissioner Parsons stated he did not agree with Commissioner Woods' suggestion related to allowing people to speak at the workshop. He stated they don't do that because you won't get a whole lot accomplished in a timely manner. He suggested she speak to Mr. Foster and others to see what they think before the workshop. Mayor Borno stated he also appreciated hearing from the employees tonight. He agreed contacting Mr. Foster would be a smart move for all of the Commissioners but agreed with Commissioner Parsons that if they go out of the format of a regular workshop it becomes a sharing of opinions and you don't necessarily come to consensus. Motion: Defer action indefinitely. Moved by Fletcher, Seconded by Daugherty. June 27, 2011 REGULAR COMMISSION MEETING Page 6 Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED B Approval of new mutual aid agreement with Duval County School System. Chief Mike Classey explained the purpose of the agreement, stating this is a new agreement with Duval County School Police. Motion: Approve Mutual Aid Agreement and authorize the City Manager and Chief of Police to sign it. Moved by Woods, Seconded by Fletcher. Commissioner Fletcher pointed out that we also have a Mutual Aid Agreement with UNF Police. Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED City Manager 9. City Manager A. City Manager's Report. Mr. Hanson reported on the Jacksonville landscape maintenance issue, stating Jacksonville sent notifications that they are reducing their cost for right -of -way maintenance after September 2012 and will no longer pay for anything more than cutting the grass. He stated they are giving others the option to maintain them at their cost. He stated Councilman Crescimbeni has a bill entered for consideration by the Jacksonville Council to require public works to continue to maintain these things through 2012. He further stated while our medians in our City will still be maintained, it would certainly take away from the strategic issue of enhancing the corridor that this Commission has supported for a lot of years so he would hope that Jacksonville would not take any of that landscaping out. Mr. Hanson also reported on a meeting with Deputy Secretary Michael Walker and John Powell of Department of Business and Professional Regulation (DBPR) regarding assistance with enforcement and support related to revocation of licenses for businesses who allow alcohol sales to minors. Mr. Hanson announced that Sonya Doerr, the Planning and Zoning Director, had resigned due to health reasons, effective last week. He stated Building Official Mike Griffin has taken over her responsibilities temporarily. Reported the budget workshop dates have been set for August 9, 24, 31 and, if needed, September 6 at 5:00 in the Chamber. June 27, 2011 REGULAR COMMISSION MEETING Page 7 Reports/Requests 10. Reports and /or requests from City Commissioners and City Attorney City Commissioners A. Appointments to the Cultural Arts and Recreation Advisory Committee. City Attorney Commissioner Fletcher reported the Board Member Review Committee met to consider the reappointment of three members and filling one vacant position on the Cultural Arts and Recreation Advisory Committee. He stated it was the Board Member Review Committee's recommendation to appoint Wanda Martin to fill the vacancy and to reappoint Lori Gaglione, Carolyn McCarthy and Jeff Wight to another term. Motion: Appoint Wanda Martin to serve as a new member of the Cultural Arts and Recreation Advisory Committee beginning July 9, 2011. Moved by Borno, Seconded by Daugherty Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Motion: Reappoint Lori Gaglione to serve an additional term on the Cultural Arts and Recreation Advisory Committee beginning July 9, 2011. Moved by Borno, Seconded by Woods Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Motion: Reappoint Carolyn McCarthy and Jeff Wight to serve an additional term on the Cultural Arts and Recreation Advisory Committee beginning July 9 2011. Moved by Borno, Seconded by Woods Votes: Aye: 5 — Borno, Daugherty, Fletcher, Parsons, Woods Nay: 0 MOTION CARRIED Commissioner Daugherty • Responded to Mr. Hanson's report regarding the City of Jacksonville not maintaining the medians, he suggested an Adopt a Median program where local landscapers could adopt a median and showcase their work. • Proposed adopting an Ordinance such as the ordinance from Martin County, a copy of which was distributed to the Commission, that prohibits retailers and convenience stores from displaying tobacco products in front of the counter where they can easily be taken by children. He stated this ordinance will require those products to be placed behind the counter. Commissioner Fletcher asked if we would be allowed to pass an ordinance that was stricter in regulating items like that than what the State law is. Mr. Jensen stated other June 27, 2011 REGULAR COMMISSION MEETING Pace 8 counties have passed these ordinances. He stated he will do further research on this. Commissioner Parsons • Wanted to include crack pipes and related drug paraphernalia in the ordinance. • Cautioned everyone to walk facing traffic, relating a recent personal experience he had while walking. Commissioner Woods • Regarding Commissioner Parsons' comments about citizens comments at workshops, she stated that just because we have never had citizen comments at workshops, it doesn't mean it is not a viable alternative and that it couldn't serve to be useful. She stated we have some important issues coming up in this City and it is a good thing to seek input in public forums. • Stated she believes the recent signage installed on Mayport Road for pedestrians is helping and appreciates the efforts staff has made to make that happen. Stated she is concerned about other areas where people are parking and walking to the beach and suggested marking the intersections more, such as with a different paving. Mayor Borno • Agreed with Commissioner Woods regarding pedestrians, stating he believes education is a major key. • Stated workshops can be adjusted, as necessary. • Reported on the meetings the Commission had individually with Mr. Harrington regarding the addiction of flavored tobacco and other nicotine items. He explained this was where the ordinance Commissioner Daugherty proposed came from. Commissioner Fletcher • Stated he wanted to give his vote of confidence to Nancy Bailey. Adjournment There being no further discussion, the Mayor declared the meeting adjourned at 7:02 p.m. pl c, 6_4_4,1, Mike Borno, Mayor/Presiding Officer ATTEST: adivyta adet Donna L. Bartle, CMC City Clerk