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.
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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
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Donna L. Bartle
City Clerk