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8-30-12 Budget Workshop Minutes MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBER, ON AUGUST 30, 2012 AT 5:00 PM. City Commission Members present: Mike Borno, Mayor Maria Mark, Mayor Pro Tem Mark Beckenbach, Commissioner Jonathan Daugherty, Commissioner Carolyn Woods, Commissioner Staff present: Jim Hanson, City Manager Nelson Van Liere, Finance Director Donna Kaluzniak, Public Utilities Director Tim Gilboy, Deputy Finance Director Keith Randich, IT Manager John Phillips, Lifeguard Captain Donna L. Bartle, City Clerk The meeting was called to order at 5:03 p.m. by Mayor Borno. Mayor Borno explained the process. City Manager Jim Hanson explained the agenda items to be discussed tonight. Police, Fire/Rescue and Lifeguards (Handout: Atlantic Beach Police Department) Police Chief Mike Classey referred to the handout and explained the Police Department personnel is made up of both sworn staff and civilian staff. The FY 2013 budget authorizes 28 officers and they are assigned to divisions such as Patrol, which includes community- oriented policing (COP's), General Investigations and Crime Suppression Unit. The FY 2013 budget authorizes 15 total civilian staff (3 are part-time) and they are assigned to divisions such as Emergency Dispatch, Records (includes property and evidence), Animal Control, and School Crossing Guards. He explained the Fire /Rescue Services stating our fire services have been provided by the City of Jacksonville Fire and Rescue (JFRD) by contract since 1999. He gave a history of the cost and answered questions from the Commission. He explained the lifeguard season, the amount we receive from the City of Jacksonville and the personnel and operating expenses which will be $198,251. He reported on Pedestrian/Bike Safety which was the Commission's number 3 priority identified in strategic planning. He gave an overview on the preliminary study completed by the Police Department. He indicated there are no funds currently in the budget for engineering review of local roads, police overtime or intersection enhancements. Discussion ensued and he answered questions from the Commission. He reported the JAG grant award totaled $78,440. He explained the Police Special Revenue Funds. He explained that the Police Training Fund is restricted funding from a surcharge on traffic citations dedicated for police training; the fund balance exceeds $120,000; the Regional Training Funds are allocated by JSO for the entire region to host classes at the academy; all training in 2011 -12 was funded by these two restricted accounts; and no General Fund dollars are budgeted in 2012 -13 for police training. He answered questions from the Commission. Minutes — City Commission Workshop August 30, 2012 Page 2 He further explained the Police Special Revenue Funds making the following points on the Radio Communications Fund. He stated they are restricted funds from a surcharge on traffic citations; the funds may be used for radio airtime, laptop airtime, and other related emergency communications expenses; and it makes up 28% of total communications budget of $70,250. Discussion ensued about the services provided by the Emergency Communication Officers, the equipment used in the operation, and the response time, as he answered questions from the Commission. He explained the Forfeiture Funds as seized money and other assets that have been used in the commission of a felony crime. He added that the most common source is from drug cases; revenue is very difficult to predict; and expenditures are very restricted and cannot be used for personnel or other normal operating expenses. Police Building /General Capital Improvements Fund (Handout: Police Building Construction Options and Financing) City Manager Jim Hanson explained the status of the Police Building as he referred to the handout. He explained that, after several months of work, the Police Ad Hoc Committee presented the report to the Commission in June and after a lengthy discussion, the decision regarding the New Police Building was made to postpone any action until the Commission had a look at this as part of the budget. He stated an important piece is the affordability, how much the City can afford in terms of financing above what we already have. He proposed that they look over the various options for the Police Building, compare costs with available funds to determine additional funding needed, consider affordability with particular reference to the Half Cent Sales Tax Fund, and provide direction from the Commission. He added that he is not proposing numbers tonight for the City to include something in the budget, stating they have not spent the time to try to chase down every number to the point that he would feel comfortable saying this is what you need to budget. He stated the point of this discussion was to give a general set of numbers and for the Commission to look at the question of affordability and give some input as to the direction they would like to go. City Manager Hanson thoroughly explained the five options to consider which include Option 1: 14,000 s.f. next to City Hall; Option 2: Police Building Ad Hoc Committee Recommendations; Option 3: Expand /Remodel Existing Station; Option 4: Mayport Rd. Site 14,000 s.f.; and Option 5: Mayport Rd. Site 10,000 s.f. He answered questions from the Commission. Discussion ensued regarding the various options with particular attention to the square footage needed, the affordability and the location. Mr. Hanson referred to the 10 -year plan for the Half Cent Sales Tax chart (page 115 in the proposed budget) as he explained the fund amounts and what these funds can be used for which includes capital costs, but no operating expenses or property costs. He gave an overview of the additional funding needed and the annual P & I for each option and reported the funding available from the Half Cent Sales Tax Fund ranges from $200,746 to $528,010 /year. He then asked the Commission to discuss the options and give guidance. Minutes — City Commission Workshop August 30, 2012 Page 3 Commissioner Beckenbach shared comments that he has heard from citizens regarding the funding as he explained why the City should consider just using the $2.6 million it already has. Commissioner Daugherty asked that they get down to the needs list. He suggested building the new Police Building between the Chamber and the current Police Building and agreed with Commissioner Beckenbach on only spending the $2.6 million. He stated that the Commission needs to make a decision soon. Mayor Borno explained he believes everyone agrees that something needs to be done for the Police Station but we cannot agree right now as to what it will look like, where it is going to be and what it will cost. He stated we know that we have a responsibility to do something and we are trying to figure out what that something is. He reminded the Commission of the process so far which included the workshop, citizen involvement, the citizen committee and the committee recommendation. He stated we need to make a decision and asked why we went through the process that was requested and then threw it out. He reiterated the need for a decision soon but stated tonight we need to come up with the path to go down. Commissioner Woods stated we need to have a Workshop and the first order of business is to set the policy so that we can set the needs and desires of the building. She explained that until we decide which services we want our police department to give us, we will never be able to decide on what the building should contain to meet these needs and doesn't believe the budget process is the right place to make those decisions. She further explained it is not in the budget, we need to leave it there, leave the discussion until we get to the workshop, start at the beginning and decide what services we want our police department to give us and then design the Police Building based on that. Commissioner Beckenbach stated he did walk through the building and considers it to be relatively small, but believes the Police are doing an exceptional job in the facility and wonders whether we really need to have a police building now noting we have the lowest crime rate in the entire beaches area. He shared comments he's heard from citizens and reported he has not heard any of them say they need a new police building. He believes the reason this project has gone on forever is because there has not been any one group of Commissioners say that's the thing that we really have to do today. Discussion ensued about the history of the project. Commissioner Mark stated she believes the Commission needs to make two decisions. She asked if everyone agrees that the Police do need some solution to their needs. The Commission did agree. She believes the two options that the Commission is looking at are 1) do something to the existing building, on that side only, so there is no encroachment on the park space, or 2) look at Mayport Road. She agreed with Commissioner Woods that we need to have formal proposals sent to us for a marketing analysis on Mayport Road on the properties that are viable and will meet the needs if a police building were to be built on that property, and obtain the price. She stated the police building issue has been going on for many years and believes this Commission needs to decide whether or not they want to pursue this subject and take care of it and move on. Minutes — City Commission Workshop August 30, 2012 Page 4 Mayor Borno explained he believes it should be put on the agenda for a vote rather than just coming to a consensus at the budget workshop. He agreed to put something on the agenda for the next commission meeting. Commissioner Woods reiterated her comments regarding the need for the Commission to determine what services the police department should provide. Discussion ensued and Chief Classey addressed various questions regarding services. (Break at 6:49 pm to 7:00 pm) City Manager Follow -up Reports: Mr. Hanson reported on the estimates he received from Mr. Carper for the maintenance cost on the water feature and dog park for Rose Park. The water feature is estimated to require 1 -2 man - hours per day, seven days a week during the summer month, and with adding in the dog park, the total man -hours needed would be 10 -20 hours per week. The estimated cost without counting the truck costs and overhead is around $12 — 25K per year for manpower and benefits. Mr. Hanson pointed out the estimated capital cost of the water feature that was previously reported at $60,000 is not correct; the correct number is $160,000. He reported the cost to contract sludge hauling vs. in- house, noting the cost of in -house is about one -third of the cost to contract it. He explained how the estimates were calculated and stated to contract it would cost just over $157,000 per year and in -house would be about $56,000 per year. Summary of Outstanding Debt (Handout: Summary of Outstandinji Debt) Finance Director Nelson Van Liere referred to his list as he explained the outstanding debt for Pledged Utility Service Taxes on electricity, LP gas and communications and Pledged Water and Sewer Utility Revenues. He and Mr. Hanson answered questions from the Commission. Supplementary list of projects (Handout: List of potential capital projects for parks) Mr. Hanson explained the list was prepared in response to a question made at one of the last meetings when Rick Carper had made a comment that there were a number of things that people had requested in general for park improvements. He referred to the handout and gave a brief summary of each project including water feature - splash park, bike path segments, Russell Park soccer field, Russell Park baseball shade structures, Russell Park urban (street) skate area, Russell Park playground area lights, Veterans Park restroom/pavilion, additional parking needed at most parks, Rose Park modifications, Donner Park baseball field completion (outfield, fence, batting cage, bullpen), Bull Park Pavilion, Bull Park safety lighting (pathway and west side of Adele Grage Cultural Center), beach access restroom, and tennis court reconstruction (not overlay). City Manager's Report on Discussion regarding Selva Marina Country Club Mr. Hanson reported he had a discussion with the President of the Country Club Board on whether or not they wanted to entertain the City possibly buying the country club. He explained that according to the bylaws it is the Board's responsibility to run the country club, so for them Minutes — City Commission Workshop August 30, 2012 Page 5 to say to us we are interested in selling it would be a violation of the bylaws. Mr. Hanson further reported it was pointed out it takes a two -third vote of the shareholders to sell any amount of property and they have been authorized to sell off thirty -five acres. He indicated he did ask whether they would make their records available, if they where to discuss a possible sale with the City and the answer he was given by the President was that he would ask his Board members, which has not been done yet. Mr. Hanson reported that he has not heard back from him yet, but he is waiting on a call to see if there is an interest in working with the City, but basically for now there is no for sale sign up. He further explained that they are trying to work out a deal with a company to buy some property to get enough money freed up so that they can solve their debt problems and put some money in the renovation of the course. Discussion /Amendments to draft budget by Mayor and Commissioners Mr. Hanson indicated it is time to decide on amendments to the draft budget and reminded them that they agreed to add the IT Enterprise application/software in the budget, but other than that Commission Daugherty was the only one to bring up any changes. Commissioner Mark wanted an update on the Robert Street Ditch. Mr. Hanson explained he was asked to check with Neptune Beach to see how they got FDOT funding for their ditch. He reported the status indicating that he spoke to Mr. Jarboe last week who stated he was not there when that was negotiated, but he was going to try to find who would be the best person to meet with. A lengthy discussion ensued about the Robert Street Ditch. Commissioner Woods asked Mr. Hanson to ask City Attorney Jensen to research if there is anything in the FDOT code that would require them to do more, noting it is causing blight in the neighborhood. Mr. Hanson agreed to ask him. Mayor Borno pointed out that James Bennett with FDOT would be a good person to contact also. Further discussion ensued. Consensus: The Commission wants to do something with Robert Street Ditch, we have staff that will ask a couple of questions and the Mayor will speak to James Bennett in a few weeks. Mayor Borno made suggested adding in $5,000 for beautification at street ends. Consensus: Add $5,000 for beautification at street ends. Mayor Borno asked to transfer $264,000 into the Half Cent Sales Tax, but did not get a consensus. Commissioner Daugherty distributed a handout titled Proposed Budget Amendments by Commissioner Daugherty 8/30/12 which listed the projects he wants to add or delete from the budget. He suggested funds be added for Rose Park Improvements and showed photos of the splash park at Sunshine Park as an example. He answered questions and reported on the citizen petitions which showed a lot of community support for the project. Commissioner Daugherty showed photos of crosswalks as he explained his proposal to add similar decorative crosswalks on Mayport Road and Atlantic Boulevard and a sidewalk on West 9 Street. He answered questions. Commissioner Beckenbach suggested using the money that is being requested for Rose Park improvement to put in more sidewalks for the safety of Minutes — City Commission Workshop August 30, 2012 Page 6 pedestrians over there. Discussion ensued regarding which part of the Rose Park improvements would be most needed so that portion can be budgeted for next year and the money available in the budget already. Mr. Hanson explained that Commissioner Daugherty is proposing three things to make this balance including reducing the Half Cent Sales Tax balance by $270,000, which would leave $70,000 in the unrestricted balance ; increasing the monthly Stormwater Fee by $1.50; and eliminating the money for the Dutton Island Road Sidewalk and the Septic Tank Conversions from the CDBG Fund. Commissioner Daugherty explained how his proposal fits into the strategic goals. Discussion ensued about the items listed on Commissioner Daugherty's request and additional sidewalks. Mr. Hanson pointed out that the - $21,000 for the septic tank conversions was incorrect and should be taken off the list. Mr. Hanson was asked to update the sidewalk list with pricing and bring it back to the Commission to see if they want to do a budget amendment at a later time. Commissioner Daugherty explained his proposal to raise the Stormwater Fees. Commissioner Mark asked what fees we are increasing for our citizens. Mr. Hanson answered the other fees that are in the budget now are half tax roll up and 3% for Sanitation, but tipping fees could cause Sanitation to change. Mayor Borno asked for consensus on amendments to the proposed budget. Each proposed amendment was discussed and the following decisions were made. Consensus: Add $225,000 to the Rose Park Improvement Project (which includes the estimated cost of $175,000 for Phase 1 improvements and $50,000 for increasing the playground size, but does not include the water feature for $160,000). Consensus: Add $35,000 for Sidewalk on W. 9 Street Consensus: Do not add $100,000 for decorative crosswalks on Mayport Road and Atlantic Boulevard. Consensus: Do not eliminate the $79,000 for the Dutton Road Sidewalk. Consensus: Increase Monthly Stormwater Fee by $1.50 (to eliminate the transfer of $68,000 from Half Cent Sales Tax Fund and $82,000 from Gas Tax Fund). (Commissioner Woods left at 8:38 pm and returned at 8:39 pm) Consensus: Do away with the half roll up; keep the tax rate the same and swap the money between the funds for the $72,500. Consensus: Add $20,000 for Code Enforcement software. Mayor Borno asked if anyone else has an amendment proposal. Commissioner Woods requested money for the Town Hall meetings and redesigning, reinvestigating and moving forward with the Police Station. Consensus: Add $60,000 to the Police Building Project. Mayor Borno opened the floor to citizen comments. Minutes — City Commission Workshop August 30, 2012 Page 7 Citizen Comments Mark Tomaski, 448 Snapping Turtle Ct. W., stated he has attended some of these meetings before and one of the things he has noticed about these meeting is that when you meet like this, you get a lot more done. He indicated he would like to see the commission alternate regular meetings and workshops. He stated he is happy to see the Half Cent Sales Tax being used for some amenities rather than just hoarded away; that's a great move in the right direction. He stated as far as the Police Station goes, he doesn't believe it is beating a dead horse; except when you consider the half million dollars we already lost, that part of it is dead. He believes the workshop is a great idea and urges the Commission to educate citizens about the workshop so that when the workshop happens, they can make comments and be fully aware of what is going on. He explained, in the private sector, when he had to build his building, he had to go out for a loan; when he went for his loan, he had to show a need and how he was going to pay it back; for him, that meant a loan. He explained that in the public sector, you can just tax us; you can tax money that you don't have to show, but he thinks it should be shown. He stated, if you want to stop beating your head against the wall on this Police Building, you've got to show a real need, because the City is trying to get the taxpayers to buy in and you are going to use that Half Cent Sales Tax which is a big chunk of money being spent; you are also going to ask for the citizens to be cosigners on the loan which he cannot see cosigning the loan; not for $2.5 million plus $1 million or $2 million after that; that's just too much money, especially when you haven't demonstrated to me that it is needed; you've got to demonstrate to me and all the taxpayers that it is absolutely needed, or you will continue to bang your head on this for years. He asked that they please take this into consideration, explaining that the citizens of Atlantic Beach are incredibly smart people; you will not be able to get it passed without them buying into it and he knows you are smart enough to see that. There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 9:17 p.m. R Mike Borno Mayor od27141 t/ 0 ,all2't Donna L. Bartle City Clerk