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Item 1A- 7-19-17 Draft Minutes Budget WorkshopAgenda Item 1A November 13, 2017 MINUTES July 19, 2017 at 5:00 PM. CITY COMMISSION BUDGET WORKSHOP 800 SEMINOLE ROAD, ATLANTIC BEACH, FL In Attendance: Mitch Reeves, Mayor Russell Caffey, Finance Director Mitchell Harding, Commissioner Brenna Durden, City Attorney (arrived 6:13PM) Jimmy Hill, Commissioner Kevin Hogencamp, Interim City Manager Blythe Waters, Commissioner Scott Williams, Interim Public Works Director Kayle Moore, Public Utilities Director Absent: John Stinson, Commissioner Keith Randich, IT Manager Donna Bartle, City Clerk CMC Call to Order Mayor Reeves called the meeting to order at 5:05 PM. Introduction Mayor Reeves stated this will be a presentation ofthe Proposed Annual Budget for 2017-2018 given by the Interim City Manager (ICM) Kevin Hogencamp and Finance Director Russell Caffey. Finance Director Caffey took the floor to address the Commission. Starting with the displayed slide titled 2017 Total Proposed Millages, it shows Atlantic Beach with the lowest millage percentage in Duval County at 18.5%. Also shown on the slide is the percentages for Jacksonville, Neptune Beach, Jacksonville Beach, and the Town of Baldwin. The Finance Director refened to the next slide which gives an example of lowering the millage rate by 1/lOth of a Mil, equating to a $15.00 reduction for a prope1iy (in Atlantic Beach) valued at $200,000. The Finance Director then reviewed the slide showing a budget comparison between FY17 and FY18, noting projected increases in the Pension Funds, Legal Fees, and the addition of staff positions. Discussion ensued about the example of the millage rate reduction by 1/101h of a Mil. ICM Hogencamp explained that staff will present a final proposed budget for consideration by the Commission in a few weeks. It will include a detailed list of issues for decision, the millage rate being one of them. There was discussion about the Homestead Exemption Tax and when that would affect the City's Budget. If it passes in the fall 2017 it will affect the 2018-19 Budget year. Courtesy of the Floor to Visitors Mayor Reeves opened Comiesy of the Floor to Visitors. No one wished to speak so he closed Courtesy of the Floor. There was a brief discussion about Hun·icane Irma costs. Finance Director Caffey stated all the expenditures have been recorded, approximately $500,000. The request for reimbursement has been sent to FEMA and is pending. 1 Agenda Item 1A November 13, 2017 July 19, 2017 Budget Workshop Meeting Minutes Departmental Presentations: Information Technology (IT) presented by Keith Randich, IT Manager: IT Manager Randich took the floor to address the Commission stating the IT Department is a service organization to the City. There are three staff members who provide support for computers, networks, and other technology used by City employees. A detailed list is on the slide titled Devices Managed by IT. As displayed on the slide titled 2015-16 Major Project/2016-17 Major Test, Mr. Randich explained the map shows the off-site location for the City's phone system and Email infrastructure for the City's Emergency Plan. Last year during Hunicane Matthew this was operational and staff was able to maintain communication with the citizens by phone and email. IT Manager Randich referred to the slide titled 2016-17 Major Projects, covering the successful move of the Police Department into their new facility. The IT department was heavily involved in the construction specifications for the computer room, installing cable, network hardware, 911 and FDLE tie-ins, cameras, and the phone system. This completed the Infmmation Technology Depmiment budget presentation by IT Manager Keith Randich. Finance Director Caffey refened to the spreadsheet included in the binder showing the actual and projected budget for the IT Depmiment, noting an increase in the projected year. This includes a 3% pay increase, benefits, repair and maintenance, and computer equipment. Discussion ensued about the phone system suppmi. Mr. Randich stated this is contracted with V miex Consulting in Ocala, FL, the company who provided the phone system. It has been in operation over a year and a half and they monitor our system 24/7. There was discussion about the department's involvement with the City's social media. IT Manager Randich stated they had to purchase software to backup Face book pages and Y ouTube accounts for record retention. ICM Hogencamp addressed the upgrade to the City's website. He explained that funds were budgeted for FY17 and this upgrade is in progress. Discussion continued about the $32,000 budget increase for repairs and maintenance. IT Manager Randich explained there is one expenditure for $12,000 for a VM Ware License-a server license for vi1iual servers. The balance will cover the remaining expenditures for SunGard for the Enterprise applications, the Social Media backup software, a Virus Protection program monitoring laptops and desktops, and replacement for the almm and fire system in City Hall. Mayor Reeves requested the Finance Director to provide a breakdown for each department for Capital Improvements. Mr. Caffey stated this is a standard provision in the final budget presentation. Discussion continued about IT projects budgeted for FY17 but were not done. Mayor Reeves asked about installing WiFi at the parks. IT Manager Randich responded that the WiFi installation was completed 2 Agenda Item 1A November 13, 2017 July 19, 2017 Budget Workshop Meeting Minutes at all three community centers with WiFi capability inside all those buildings and it does extend outside approximately 150 feet from the connection point inside the buildings. Currently we are in the process of evaluating adding repeaters to allow full outside access at all these locations. ICM Hogencamp stated he will follow up on this item (WiFi) and report back to the Commission. Discussion ensued about the proposed increase for Communications. IT Manager Randich responded the antennae system from the water tower at Water Plant #1 to Adele Grage failed. It was replaced with a dedicated circuit (COMCAST) from City Hall to Adele Grage to provide access to the City network. That circuit was over $8,000.00 per year. Public Works presented by Scott Williams, Interim Public Works (IPW) Director: Scott Williams, IPW Director, took the floor to address the Commission on the Public Works budget. Starting with the slide titled Public Works, Mr. Williams read the list of 8 divisions that make up this depmiment. Mr. Williams reviewed the next slide titled Primary Responsibilities. This covers streets, NPDES, MS4, EPA, and SJRWMD permits, commercial, residential, and ROW plans and permits review, and stormwater utility fee calculations. Adding to depmiment responsibilities, the IPW Director addressed the slide titled Facilities Maintained. This includes paved street and rights of way, City buildings, stormwater treatment ponds, stormwater pipe/ditches/swales, sidewalks and paths, parks, and 20 beach accesses. All of these items require daily maintenance. The next slide addresses Public Works Staff. Mr. Williams provided a detail listing for Administration, Streets/Storm water, and Parks/Building Maintenance. The total employees consist of 25 full time and 1 pati time. IPW Director Williams addressed each item on the slide titled FY2017 Projects & Undertakings (two pages). He stated Hurricane Matthew was a three-month project added to the regular routines of the depmiment. The next slide addressed Additional Staff Requested. The department is asking for 1 full time Maintenance Worker for Streets/Stormwater, and 1 full time Park Ranger for Parks Maintenance. The addition of staff will help with maintaining and improving the level of service to the citizens. Discussion ensued about parking, trash, and other non-residents issues that result from those who come to Atlantic Beach. The Commissioners spoke about budgeting for better quality materials for signage, bike racks, beach shower hardware, etc., to enhance the purpose of and the appem·ance of these items used by the public. Discussion continued about doing a pay study, including a review of employee job descriptions and career progression incentives, for the department. This will ensure the City is hiring quality employees, providing competitive pay rates, and enhancing employee retention. 3 Agenda Item 1A November 13, 2017 July 19, 2017 Budget Workshop Meeting Minutes The next slide addressed Public Works Capital Items and the budget requested for these items. There was discussion about the Splash Park, the Rubber Tire Loader, and the New Dune Walkover. IPW Director Williams continued the budget presentation detailing each of the items on the list. This completed the Public Works budget presentation by Scott Williams, IPW Director. There was discussion about the amount budgeted for the Street Condition Assessment and Resurfacing. It was suggested that perhaps this item could be changed from an annual expense to budgeting for it every ten years. Discussion ensued about the Seminole Road Project. It was noted that cunently the department is looking at making improvements to some of the problem areas on the north end now, without hampering other stmm water work. Discussion ensued about Seminole Road projects that are planned for but are on hold pending the Stmmwater Master Plan, such as beautification projects, replacing sidewalks, and replacing some storm drains. Mayor Reeves called for a recess at 6:35PM, and reconvened at 6:50PM. Discussion continued about the Seminole Road project, the Stormwater Master Plan assessment, and rebudgeting unencumbered funds from FY20 17 into the FY20 18 budget. ICM Hogencamp stated he has received communication from Commissioner Stinson who is watching the meeting online. Commissioner Stinson requested more details on the Splash Park. ICM Hogencamp stated there will be further analysis of the maintenance issues which will be made available at the next workshop. Also Commissioner Stinson commented on the benefits of the leadership changes in the Public Works Department. He also spoke about compensation/pay rates, employee job descriptions and incentives, employee retention, and maintaining a high level of service. Public Utilities presented by Kayle Moore, Public Utilities Director: The first slide covered Utility Service Area which showed a map displaying the water and sewer service area. Next Public Utilities Director Moore addressed the slide titled Utility System Details which covers water and sewer lines, wastewater, reclaimed water, wells, and the active accounts in the City. He reviewed the slide titled Staffing, stating the department consists of22.5 full time employees. The slide titled FY2017 Projects & Undertakings was addressed. Mr. Moore spoke about the completion of the combined beaches outfall -replacement of the pipes suspended from the pilings at Mayport. He addressed the Seaspray water service replacement noting 52 were replaced this year. Last year there were 27 replaced. Mr. Moore stated the department is in the process of a multi-year project to purge the old styled poly lines with new lines and it has been very successful. The next project was the Sea Oats sewer main lining, along Sea Oats and Park Tenace. The next year's project will be in Oak Harbor. 4 Agenda Item 1A November 13, 2017 July 19, 2017 Budget Workshop Meeting Minutes Mr. Moore spoke about the phosphorous treatment facility which is a metal shed structure at the wastewater plant. Completion is anticipated in another month. The department is doing lift station upgrades to work more efficient with SCADA. Mr. Moore spoke about the minor water treatment plant upgrades, which will implement better monitoring and control equipment. The next slide addressed was Water Capital Items and the budget requested for these items. He spoke about the Seaspray Subdivision water service replacement, purging the old styled poly lines with new lines. Mr. Moore stated the department is planning to start this same project on Seminole Road before the end of this year. Next, he spoke about the Well/source water monitoring plan which will ensure our ground water source is healthy and no saltwater intrusion. Mr. Moore addressed the new 12-inch water main that will be installed at several locations and in areas where it dead-ends. It will loop with a larger capacity main, keeping the water circulating, and will prevent losing service in the event of a water main break under repmr. He addressed the elevated water tank inspections. Mr. Moore then spoke about the rubber tire loader and, as discussed earlier, the cost is split with the Streets Fund. The next slide was for Sewer Capital Items and the budget requested for these items. Mr. Moore started with the sewer gravity main lining for man holes and stated there are more to do this year. He spoke about the second centrifuge unit and replacing clarifier drives at the wastewater treatment plant. The next item addressed was the gravity sewer system expansion in Section H. This will address septic systems in different locations and concerns for those that are impractical to get gravity systems to. It was noted that properties with septic systems are permitted and inspected through the Department of Health. There was a lengthy discussion about getting all residents on City sewer. This completed the Public Utilities budget presentation by Kayle Moore, Public Utilities Director. Mayor Reeves had a question about Public Works Fleet Maintenance, under contract services, where there is a $44,000 increase in a two year period. The Finance Director, Russell Caffey, explained there was a two-year period that the City was not billed and we just received the invoice for back-billing. Mayor Reeves spoke about the City-owned prope1iy located on Wonderwood. There was a brief discussion about selling the property. Discussion ensued about Capital Improvements listed in the presentations. Commissioner Hill requested a more detailed breakdown of the projects that are listed at $200,000 and higher. ICM Hogencamp responded that he will schedule time for Commissioner Hill to meet with Scott Williams and Kayle Moore to get that clarification. Mr. Hogencamp also stated the next meeting will have a complete breakdown in the proposed budget. Special Revenue Funds and Projects Overview presented by Russell Caffey, Director of Finance: 5 Agenda Item 1A November 13, 2017 July 19, 2017 Budget Workshop Meeting Minutes Russell Caffey, Director of Finance, spoke about upgrading the financial system from SunGard (green screen, over 30 years old) which is funded through the Reserves from the General Fund. Mr. Caffey refened to an analysis showing the cost to continue operating with SunGard over the next five years would be over $500,000. He stated another vendor, Edmonds & Associates, submitted a bid for a windows based system and their implementation cost would be $112,000 and then $16,000 each year for operating costs. This is only one vendor but represents the cost savings that can be achieved and research is continuing. Mr. Caffey stated this will need to be done in the next three years and the City will go out for bid. Next, the Director of Finance addressed the Convention Development Tax Fund, which is a 3% tax on hotels and we receive 2% of that tax. The proposed Spray Park and the Lifeguard Station improvements are budgeted fi·om this fund. The Local Option Gas Tax Fund was addressed, which is for maintenance for the local roads and drainage systems. Next year there is $200,000 budgeted for paving and streets/sidewalks improvements. A brief discussion ensued about inigation for Veterans Park, a safety analysis for the Spray Park, adding pedestrian safety lighting, and adopting a low speed vehicle (LSV) policy. Finance Director Caffey reviewed the Half Cent Discretionary Sales Tax Fund. He presented the proposed budget expenditures for street paving, Russell Park renovations, Jordan Park walkway, and Veterans Park upgrades. This fund could be used for anything relating to transpmiation purposes, such as the pedestrian lighting and a LSV policy. There was a brief discussion about the request through FDOT regarding lowering the speed limit on Mayport Road. ICM Hogencamp stated the meetings have begun with the FDOT staff and more discussion and studies are required. There are no budget implications at this time. This completed the Special Revenue Funds and Projects Overview presented by Russell Caffey, Director of Finance. ICM Hogencamp addressed the Commission to consider the following dates for Budget Workshops: • 5:00PM Wednesday, August 9, 2017 • 5:00PM Monday, August 14, 2017 (tentative) Adjourn There being no further discussion by the City Commission, Mayor Reeves declared the meeting adjourned at 10:20 PM. Mitchell E. Reeves, Mayor Donna L. Bmile, CMC, City Clerk DLB/njp 6