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Minutes 8-6-13 MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBER, ON AUGUST 6, 2013 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 Rick Carper, Public Works Director Mike Griffin, Building and Zoning Director Jeremy Hubsch, Redevelopment and Zoning Coordinator Keith Randich, IT Director Donna L. Bartle, City Clerk The meeting was called to order at 5:02 p.m. by Mayor Borno. Mayor Borno explained the process. City Manager Hanson explained the agenda items to be discussed tonight. Utilities (Handout: Public Utilities Budget FY2014, which is attached and made part of this Official Record as Attachment A) Utility Director Donna Kaluzniak reported the Current FY Project Status for the Water Fund and Sewer Fund and explained the costs noting that $60,000 will need to be re-budgeted for the Arc Flash Studies for the Water Plant and $300,000 in additional funds are needed for pipe replacement to the Effluent Outfall. Ms. Kaluzniak gave an overview of the Public Utilities Operations and staffing. She explained the various types of Public Utilities Contractors and Consultants are Utility Contractor, Engineering and Survey, Electrical and Electronic, Environmental Laboratory, Pump, Motor, Generator Repair, SCADA and Security System, Welding and Fabrication, Landscape Maintenance and Janitorial. Ms. Kaluzniak reported on the Water Loss Reduction and the contributing factors. She referred to and explained the chart titled Meters Replaced vs. Water Loss. She explained the status of the Water Master Plan including continuing replacement of old and undersized water mains to address water quality and fire flow issues; installing one new well and rehabilitating one existing well at Water Plant #1; continuing elevated and ground storage tank maintenance; and reducing staff by one Distribution/Collection Operator in FY13 due to system improvements. She referred to and explained the chart titled Completed and Possible Remaining Water Main Replacements. Ms. Kaluzniak reported on the Water Master Plan Future Issues noting they are currently reviewing priorities to update the Master Plan. She indicated they will continue with well evaluation, rehabilitation and replacement as needed; will continue to replace aging and undersized water mains (most are complete), and replacement of asbestos concrete and cast-iron mains will be the last priority for water main replacement. Minutes—City Commission Budget Workshop August 6,2013 Page 2 She explained the Water Capital Items in the proposed budget includes $440,000 to replace a 4" AC Water Main on Mayport Rd. near Wonderwood and add a connection under AlA between Mayport Landing and Mallard Cove Apts; $125,000 for Rehabilitation of Elevated Tank at Water Plant#2; and $100,000 for Rehabilitation of Ground Storage Tank at Water Plant#2. Ms. Kaluzniak explained the status of the Sewer Master Plan. She reported the TMDL project has been completed; they are meeting the nitrogen limits; the operational and electrical savings are exceeding expectations and the project will be featured at the City of Jacksonville Environmental Symposium in August. A lengthy discussion ensued regarding staffing. She further explained the status of the Sewer Master Plan reporting they did continue the sewer rehabilitation and started designing the effluent outfall repairs but decided to do a design of a pipe replacement instead. She referred to and explained the maps titled Sanitary Sewer Rehabilitation — Status at 2006 Sewer Master Plan and Sanitary Sewer Rehabilitation - Status as of FY13 and answered questions from the Commission. She explained the Sewer Capital Items in the proposed budget include $1,105,000 for the Reclaimed Water Facility (40% Grant - $442,000, 60% City - $663,000); $155,000 for the rehabilitation of remaining sections of Donner Subdivision (75% Grant - $116,250, 25% City - $38,750); $276,000 for sewer system rehabilitation on Saturiba Dr. and Sea Oats Dr.; and $50,000 to replace effluent pump at WWTP. Utilities (Handout: Utility Sales, Rates and 10-Year Plan, which is attached and made part of this Official Record as Attachment B) Mr. Hanson referred to his handout as he explained and answered questions on the charts titled Water Sales Volume 99-00 to 12-13, Sewer Sales Volume FY 2000-FY 2012, Average Monthly Water Customer Usage, Water and Sewer Utility Bill Comparison 2013 Rates, and Water and Sewer Utility Rates. Discussion ensued. It was pointed out that the City should check into the possibility of updating the Sewer Impact Fee Study to incorporate the cost of the TMDL improvements. Mr. Hanson referred to and read City Code Sec. 22-2 — Return investment policy for Buccaneer plant which states "The additional rates charged by the Buccaneer systems to customers outside the city pursuant to Section 22-27(2) for water and Section 22-167(b) for sewer shall be considered a return on investment, and such return on investment shall be contributed to the general fund of the city unless a lesser amount of transfer is budgeted on an annual basis. Mr. Hanson explained the chart titled Transfers to General Fund vs Surcharge. He referred to the chart titled Public Utilities (also page 118 in the proposed budget) as he explained the amounts for Personnel Services, Operating Expenses, Debt Services, Transfers, Capital Outlay and Revenues. The Commission asked questions and staff responded. Revenue and Tax Information (Handout: FY 2014 Budget Workshop Revenue and Tax Information, which is attached and made part of this Official Record as Attachment C) Finance Director Nelson Van Liere referred to the handout and pages 3, 4 & 5 in the proposed budget as he reported the Total 2014 General Fund Revenues and explained the various funds including Ad Valorem Taxes, Licenses and Permits, Intergovernmental, Interfund Transfers, Fines and Forfeitures, Charges for Services, Miscellaneous, and Utility, Communications and Minutes—City Commission Budget Workshop August 6, 2013 Page 3 Business Taxes. Mr. Van Liere reported that we will actually have a roll back rate, although it is very small, noting it has been a roll up rate for the last five or six years, so that is nice for a change. Mr. Van Liere referred to the charts and graphs in the handout as he explained the Atlantic Beach Taxable Property Values, Ad Valorem Assessment Rolls, Office of the Property Appraiser Final 2013 Millages, Multi Year Operating Millages, 2013 Total Proposed Millages, General Fund Total Revenues by Type and Total Expenses, and General Fund. He and Mr. Hanson answered questions. IT / Enterprise Software Upgrade (Handout: Upgrade to New Enterprise Application, which is attached and made part of this Official Record as Attachment D) IT Manager Randich referred to the handout as he explained a new application called One Solution from SunGard. He explained the history of the SunGard HTE application, status of the upgrade, new application, system requirements and advantages of the new system. He reported that instead of buying a new main frame computer, we moved to a data center in Atlanta as a first step in this process. He referred to the chart titled Multiple Year Project as he explained the phases and the funding needed for the project over the next four years. He and Mr. Hanson answered questions from the Commission. Mr. Randich confirmed that $140,725 for the One Solution Community ASP and $169,000 Recurring Costs are in the proposed budget and Mr. Hanson confirmed that the money for the other phases are in the ten year plan. Other IT Items Mr. Hanson explained the cost of the tablets are in the budget and if approved, IT will work on getting them set up right after the first of the year. Mr. Randich gave a status of the camera project reporting that even though they went with the single camera systems, we purchased two cameras in order to accommodate the different meeting layouts. Mr. Hanson referred to his supplemental list and explained the cost for sound system improvements for the Commission Chamber, which includes directional speakers and eight wireless microphones, is $13,000. Commissioner Daugherty expressed an interest in having portable equipment to record and amplify sound at various city meetings in locations other than the Commission Chamber and asked if staff could get a cost estimate for the equipment in time for the next budget workshop so it can be added to the budget. Discussion ensued and Mr. Randich agreed to bring something back. Building Department (Handout: Review of Building, Code Enforcement and Planning and Zoning Departments 2013-14, which is attached and made part of this Official Record as Attachment E) Building and Zoning Director Mike Griffin referred to the handout noting that it shows activities of the Building Department associated with enforcement of the Florida Building Code related to expenditures and revenue. Mr. Griffin explained the Building Department is an Enterprise Fund and tries to pay for itself through the building permit fees. He reported that three years ago they raised the minimum Minutes—City Commission Budget Workshop August 6,2013 Page 4 permit fee from $35.00 to $55.00 in order to make an adjustment and it seems to have worked out good. He explained they remain as an Enterprise Fund for the Florida Building Code, but the Floodplain management, housing code enforcement and zoning code activities are funded by the General Fund. He reported the proposed budget includes anticipated revenues of $281,550 and anticipated expenses of $261,939. He explained the graphs titled Construction Value in Atlantic Beach, Building Department Expenditures and Revenues, and Building Department Permits and Inspections which indicates construction continues to go up. Mr. Griffin reported the Building Department is operating with one Building Official, one Building Inspector/Plan Reviewer and two administrative personnel. The Building Department should anticipate operating at nearly the same level of activity as recent years with a slight increase. The department provides administrative support to Personnel, Finance, City Administration and the Development Review process. Mr. Griffin reported the cost to add an additional Code Enforcement Officer Full-time or Part- time as follows: For the Full-time Code Enforcement Officer (40 hours weekly), the total cost to for the first year would be $69,816 which includes an annual cost of$48,216 and additional cost of$21,600 to start; and for the Part-time Code Enforcement Officer (20 hours weekly), the total cost for the first year would be $43,362 which includes an annual cost of$21,762 and additional cost of $21,600 to start. Mr. Griffin reported the monthly case load and the Royal Palms and Mayport Corridor Property Survey Results. Mr. Hanson explained the reasons to consider an additional Code Enforcement Officer which is on the supplemental list. Discussion ensued regarding the various types of complaints and what the Code Enforcement Officer does to enforce the City Codes. The suggestion was made to set up a day to ride or work with the Code Enforcement Officer to find out more about the details from the initial citing of a complaint to when the complaint goes through the Code Enforcement Board process. Mayport Corridor Redevelopment Redevelopment and Zoning Coordinator Jeremy Hubsch explained the details of the Mural at Mayport Road and Atlantic Boulevard Overpass at $8,000 and the Mayport Road Landscape Matching Program at $10,000, which are both on the supplemental list, and reported that the City can apply for a grant for matching funds on both beautification projects. Commissioner Daugherty indicated that instead of the 20' by 20' art that was proposed, he wanted the entire length of the triangle piece to be painted. Mr. Hubsch stated he thought he should start out small but hopes to expand it to multiple-year phases. There was a lengthy discussion and Mr. Hubsch answered questions from the Commission. Mr. Hubsch also reported he will be working with partners to designate A 1 A as a "Florida Scenic Highway" from Jacksonville Beach to Fernandina; met with Florida Department of Economic Opportunity and they are interested in using Atlantic Beach as a potential pilot program for a major statewide economic development initiative; and will work with City of Jacksonville and Jacksonville Chamber on possible incentives over the next year. He stated he would give more information on these programs as things evolve. Summary of Outstanding Debt (Handout: Atlantic Beach Debt, which is attached and made part of this Official Record as Attachment F) Minutes—City Commission Budget Workshop August 6, 2013 Page 5 Finance Director Nelson Van Liere referred to the handout as he explained the City's outstanding debt and the debt payments proposed in the 2014 budget. There was a brief discussion about whether or not it would be valuable for the City to use some of the fund balances in excess of the 25%minimums to pay off outstanding debt. Follow-up Items from the first budget workshop Mr. Hanson reported on follow-up items as follows: Tennis Courts- We have been in contact with Jacksonville Beach, but we don't have a final answer yet regarding the materials used in the reconstruction of their tennis courts. Saltair Stormwater Project- The cost to install curb and gutter in the Saltair Subdivision is $1,500,000 versus the swale restoration for $250,000. Because there are only 69 homes that would be affected compared to the increased cost to the City of $1,250,000 (not including the pond and piping) the assessed cost to each homeowner would be $18,115. With the cost of the pond and piping to get there, you could easily double that cost. There was little support from the Commission to upgrade the project to curb and gutter. Robert Street Ditch- The best cost estimate to do the proposed grading and bank stabilization improvements for next year would be $80,000 to $100,000. There was discussion about possibly splitting these costs with FDOT and the City considering budgeting only half which is $45,000. Mr. Carper reported the cost to replace the sandbag head wall with a more complete concrete structure would probably add less than $10,000 to the project cost. Rose Park Bids- Mr. Carper summarized the status of the revised recommendation to bring the Rose Park Project back within the budgeted amount. He explained the items that were left in and those that were left out of the new proposal. Mr. Hanson reported the list of items to be discussed at the next budget meeting. There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 8:45 p.m. dAthC Mike Borno Mayor Donna L. Bartle City Clerk