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Agenda Item 1CMINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN ADELE GRADE CULTURAL CENTER ON AUGUST 21, 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 Rick Carper, Public Works Director Keith Randich, IT Manager Tim Gilboy, Deputy Public Works Director Donna L. Bartle, City Clerk The meeting was called to order at 5:08 p.m. by Mayor Borno. Mayor Borno explained the purpose of the budget workshops and the process and timelines for adopting the budget. Commissioner Beckenbach asked if citizens could speak for three (3) minutes at the end of the meeting. Mayor Borno agreed to consider it depending on the time it takes to finish the agenda items. Budget Overview (Handout: Budget Overview) City Manager Jim Hanson explained the workshop schedule and the items to be discussed at each meeting. He gave an overview of the budget, explaining the need to understand the long- term economic downturn cities have been facing for a number of years; taxes and other general fund revenues are down; utility sales volumes are declining; pension costs are rising; and health care costs are rising. He explained the total revenues and expenses are down from the current year reporting revenues at $27.4 million: down fiom $34.3 million and expenses at $25.3 million: down from $31.0 million. He stated the greatest piece of the difference in both revenues and expenses is from the TMDL Project. He reported the personnel count will be down by four employees from the current year's budget. He explained the philosophy and benefits of conservative, long -term budgeting. He referred to the chart titled Atlantic Beach Fund Balance as he explained the three (3) types of funds, their balances, the various items that the funds are used for, and their restrictions. He believes the City has very strong balances and is in good shape. He referred to the charts titled City of Atlantic Beach Pension Contribution and City of Atlantic Beach Pension Payroll as he explained the history of the pension over the last eleven (11) years. He reported the reductions in the expenditure budget from the last five (5) years include: personnel, overtime in various departments, training in all departments, employee raises /merit program, Employee Bonus Program; document imaging program stopped (only done in -house Minutes — City Commission Workshop August 21, 2012 Page 2 now); fireworks share to Jacksonville Beach; logo shirts for non - uniformed employees; police motorcycle lease; vehicle replacements; sidewalk repair budget; expenses for Police Explorer Program; ped path expansions; new sidewalks, etc. He reported the items that are not in the proposed budget and distributed a list of discretionary projects for consideration. He explained the two rate increases that are being proposed include a property tax partial roll -up of 1.8% or $72,000 and a sanitation rate up 3.2% or $55,000; the rates remaining level are water and sewer, stormwater, franchise fees /taxes, building permit /inspection/plan review fees and communication service taxes; and the State revenues (sales tax, gas tax, revenue sharing) rates are not set locally. Public Works (Handout: Public Works Budget FY 2012 -2013) Public Works Director Carper stated that Public Works Administration, Streets, Fleet Maintenance, Parks Maintenance and Beautification, Sanitation and Stormwater make up his budget. He referred to the Public Works manpower chart as he explained the department's organizational chart. He explained the roles of the various divisions and of the contracted services. He reported on the following Parks projects: Veteran's Memorial Park, Tideview Canoe/ Kayak Launch and ICW Parks Master Plan Study and answered questions from the Commission. He pointed out that the Convention Development Fund (Bed Tax) is a source that can be used for some of the projects. He referred to the charts titled Marsh Master Plan Long Range Capital Plan as he explained the costs and funding for the various projects. He indicated that many of the projects in the plan will qualify for FIND grants, but other funding sources will be pursued. Mr. Carper, Mr. Hanson and Mr. Gilboy answered questions from the Commission. Mr. Carper showed a drawing of the conceptual plan for the Rose Park Expansion as he and Commissioner Daugherty explained and answered questions on the proposed project and the costs involved. He explained Stormwater Utility by reporting the history of Capital Improvement Projects, the completion of the Stormwater Master Plan Update, the Capital Improvement Plan, the Stormwater Long -Range Plan, maintenance issues, and the proposed budget. Mr. Carper and Mr. Hanson answered questions from the Commission. Mr. Hanson referred to page 113 which is a chart titled Stormwater Utility and page 112 titled Long Term Financial Plan Financial Projection Summary as he explained details of the Stormwater Utility Fund including amounts for Personnel Services, Operating Expenses, Capital Outlay, Debt Services, Transfers and Revenues and answered questions from the Commission. Commissioner Daugherty reported he is proposing to increase the storrnwater rates by $1.50 per month and explained the reasons for the proposed increase. Discussion ensued. Commissioner Daugherty indicated he would like to continue explaining the proposed increase later in the meeting. Minutes — City Commission Workshop Page 3 (Break at 7:25 pm to 7:33 pm) August 21, 2012 Mr. Hanson explained the Sanitation Fund and reported and answered questions on the Landfill Tipping Fee Estimates. He referred to and explained the chart on page 111 titled Sanitation Fund which shows amounts for Personnel Services, Operating Expenses, Capital Outlay, Debt Services, Transfers and Revenues. Commissioner Daugherty stated that in two years the City's contract with Advanced Disposal comes up and, since there are options to consider, believes the discussions should start now and direction should be given to the City Manager as to what we think should happen. Discussion ensued. Mr. Carper explained the Resurfacing Program is a major use of our Gas Tax Fund and this year's budget proposal has $300,000 for resurfacing. He reported the inspections have been completed and the Overall Condition Index (OCI) for the entire city is 73.6 (Very Good), but is down by a point from last year. He indicated that 1 segment was poor and 121 were excellent and there is a total of 294 (public only). He explained that each year he drives every street in the city and gives them a grade. He referred to the map showing the City Street Resurfacing History Since 2005 as he explained the history. He indicated that if the funding stays relatively the same each year, it will take at least 35 years to resurface every street in the City. He answered questions fiom the Commission. Mr. Hanson referred to the Gas Tax Fund chart on page 109 and explained the Operating Expenses, Capital Outlay, Transfers and Revenues. Mr. Carper gave a brief overview of the history of the Community Development Block Grant (CDBG) and the Tree Fund and he and Mr. Hanson answered questions from the Commission. Commissioner Daugherty distributed and explained his proposal (which is made part of this record as Attachment A). Enterprise/IT Application (Handout: Enterprise Application) Mr. Hanson indicated there is a project that was budgeted in the current year to upgrade our software, but with further research, we don't feel like we should do what we budgeted for. It was determined that about $20,000 remains in the current budget. He asked IT Manager Randich to explain the new proposal. Mr. Randich referred to the handout as he explained the current SunGard HTE application, new system requirements, new system advantages, and issues with moving to a new application at this time. He suggested the project be done in three phases and explained the cost for each phase. The project proposal includes the following: 1) Delay the start of the conversion one year to allow for funding situation to improve and to allow time for "One Solution" product to be completed and successfully installed by other cities, 2) Move the current application to SunGard's data center to avoid the expense of buying a new computer at $50,000 and to utilize SunGard's staff to perform support tasks including data backups and system upgrades and 3) Add the Code Enforcement module to our existing system which would cost $10,000 plus training estimated at $5,000 to $10,000. Discussion ensued. There was a consensus from the Commission to move forward with the pro posed plan and add $20,000 to the proposed budget for the Code Enforcement mod ule. Minutes — City Commission Workshop Page 4 August 21, 2012 There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 9:06 p.m. Mike Borno Mayor Donna L. Bartle, CMC City Clerk ATTACHMENT A Proposed Budget Amendments; Commissioner Daugherty August 21, 2012 Fund Change Amount Fund Unrestricted Balance 9/30/13 Half Cent Sales Tax Proposed Budget $341,133 Expenses Reduce transfer to Stormwater $68,000 Rose Park; part not covered by CBDG (see below) - $75,000 Add sidewalk on W. 9th St. - $35,000 Balance after changes $299,133 Stormwater Fund $748,736 Proposed Budget Revenues Increase monthly fee $1.50 $150,000 Reduce transfer from Gas Tax - $82,000 Reduce transfer from Sales Tax - $68,000 Balance after changes $748,736 Gas Tax Fund Proposed Budget $5,261 Revenues Expenses Reduce transfer to Stormwater $82,000 Add Dutton Isle sidewalk project - $79,000 Mayport Rd. crossings - $100,000 Reduce resurfacing budget $100,000 Balance after changes $8,261 CDBG * Expenditures Eliminate Dutton Rd. sidewalk and septic conversion projects and put $ to Rose Park $0 MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBER, ON AUGUST 28, 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 Rick Caiper, Public Works Director Tim Gilboy, Deputy Public Works Director Sue Danhauser, Human Resource Director Mike Griffin, Building and Zoning Director Keith Randich, IT Manager Donna L. Bartle, City Cleric 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: FY2013 Public Utilities Budzet Public Utilities Director Donna Kaluzniak referred to the handout as she reported on the Current FY Project Status on the 11 Street Water Main Replacement, Water Main Replacement on 12 Street, Ocean Boulevard & 15 Street, Sewer Rehabilitation, and TMDL WWTP #1 Upgrades with Sludge & Odor Control. She reported the TMDL Project Summary and showed photos of equipment as she explained the efficiency and benefits of each. She and Mr. Hanson answered questions from the Commission. She explained the TMDL Construction Cost Savings which includes SJRWMD Grant of $1,000,000, other funding with State Revolving Fund Loan with much lower interest rates, excellent construction prices due to bidding while the market was right, and major equipment procurement process that resulted in excellent pricing for equipment (Approx. $600K savings). She also explained the TMDL Operational Cost Savings includes consolidating treatment plants results in more efficient operations and cost savings; new equipment is much more efficient, resulting in electrical savings; and new sludge treatment process will result in major savings in tipping fees if implemented by City of Jacksonville (COJ). She explained the Operations Budget Reductions from TMDL Project which totaled $337,600, including electrical savings at WWTP #1 and #2, personnel, contractual services savings at WWTP #2, City utilities, regulatory fees and operating supplies. She explained the Cost Savings for Sludge Disposal, which includes the Sludge Treatment project, will reduce trips to landfill and tipping fees (if required by COJ) and new nitrogen removal process will double sludge production, but new dewatering method will lower amount hauled back to present level. Minutes — City Commission Budget Workshop August 28, 2012 Page 2 She explained the estimated landfill costs for sludge (if tipping fees are required) noting that sludge disposal costs would be approximately double without the sludge treatment improvements currently being constructed ,which is an annual savings of about $130,000. She explained Public Utilities Operations which includes working towards optimum efficiency with minimal staff and use of contractors; keeping salary /benefit costs lower with a few good men and women; and utilizing expertise of specialized contractors, noting that contractors are part of the Public Utilities team. She explained that contractors are expected to provide excellent service, most contractors are required to be available for emergencies 24/7, and they help City staff meet regulatory requirements. She gave an overview of what staff does and what contractors do as she referred to the slides called Public Utilities Staff & Contractors — Water and Public Utilities Staff & Contractors - Sewer. She also explained the Public Utilities Organizational Charts for the staff and contractors. She explained Water Loss Reduction by noting the purchase of leak detection equipment, enhanced meter replacement project and large meter testing. She reported the status of the Water Master Plan and explained future issues. She referred to the maps showing Water Main Replacements since 2001 and Future Water Main Replacements as she explained the history and future needs. Discussion ensued. She explained the Water Capital Items for FYI which includes replacing water main on Pine St. at $ 90,000, replacing water main on Wonderwood at $180,000, elevated tank rehab WP #1 (interior) at $45,000, ground storage tank rehab WP #2 at $20,000 and ground storage tank rehab WP #3 at $40,000. She reported on the Sewer Master Plan Status including continued rehabilitation of gravity sewer system during FY12, emergency replacement of collapsed CI sewer main on Willow Cove Ct. E., televised CI mains and lined with CIPP as needed, and CIPP sewers in Area B (north of core City). She showed maps as she explained the Sanitary Sewer Rehabilitation and the Sewer System Rehabilitation and answered questions from the Commission. She reported the costs on the Sewer Capital Items for FYI which include Replace Sludge Hauling Truck - $140,000, 2 Roll- on/Roll -off Containers - $35,000, Major sewer repair at Donner Rd. - $40,000, Major sewer repair at W. 6 th St. - $55,000, Repairs to effluent force mains - $142,000 and Sewer Rehabilitation - $200,000. Commissioner Daugherty asked about the price of the Hauling Truck being high. Ms. Kaluzniak explained the cost estimate and the need for a new truck. Discussion ensued. Commissioner Daugherty requested a report showing an evaluation and estimate of cost to contract sludge hauling vs. buying a new truck. She explained the Septic to Sewer Program which was implemented by City Commission in 2000 to require connection to sewer system to meet the law, with timing based on existing sewer assessment. She explained the financial assistance options and reported the number of conversions completed and remaining. Discussion ensued. Minutes — City Commission Budget Workshop August 28, 2012 Page 3 (Commissioner Mark left at 6:11 pm and returned at 6:14 pm) General Fund Revenues/Balance (Handout: Utility Sales, Rates and 10 -Year Plan) Mr. Hanson referred to his handout as he explained and answered questions on the charts titled Water Sales Volume 99 -00 to 11 -12, Sewer Sales Volume FY 2000 -FY 2012, Average Monthly Water Customer Usage, and Water and Sewer Utility Bill Comparison August 2012. He explained the 2012 Florida Water Rate Survey which was just released and reported the Monthly Charge Comparison. He showed a chart titled Transfers to General Fund vs Surcharge noting the dark blue bar = the dollars transferred to the General Fund and the green bar = how much the surcharge is. He referred to and explained the chart titled Public Utilities (also page 117 in the proposed budget) which shows the amounts for Personnel Services, Operating Expenses, Debt Services, Transfers, Capital Outlay and Revenue. The Commission asked questions and staff responded. Mr. Hanson explained the State Revolving Fund (SRF) loans reporting that the repayment on the loans doesn't start until FY13, so what has happened is we have collected revenues before we needed them. He explained we have $1.2 million of construction funding that we can borrow from the SRF. He explained the option not to borrow the remaining $1.2 million, or borrow it but pay back some other loans we have at a slightly higher interest rate. He requested concurrence on whether or not to use the $1.2 million to reduce our future debt. He referred to page 116 of the proposed budget as he answered questions on the long -term financial projections. Discussion ensued. Mayor Borno requested a scaled chart be provided that would show the various concepts discussed. The Commission agreed to see the options scheduled out before making any decisions. Further discussion ensued. Mr. Van Liere confirmed that he will prepare a schedule. (Break at 6:55 pm to 7:05 pm) Revenue and Tax Information (Handout: FY 2013 Budget Workshop Revenue and Tax Information) Finance Director Nelson Van Liere referred to the handout and pages 4 & 5 in the proposed budget as he reported the percentages of the Total 2013 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, Utility, Communications and Business Taxes. Mr. Van Liere answered questions from the Commission. He referred to the charts in the handout and explained the Total General Fund Revenues by Type with Total Expenses, Ad Valorem Assessment Rolls, Office of the Property Appraiser Final 2012 Millages, Multi -year Operating Millages and 2012 Total Proposed Millages. He and Mr. Hanson answered questions. Mr. Van Liere pointed out that he does not budget 100% of the millage times the taxable value, but instead does 95.5 %, explaining most people finance their homes and escrow their taxes and if they pay early, get a 4% discount. He stated that the City is required by the TRIM law to budget at least 95 %. He reported that we balanced our budget with the millage rate of 3.3917 which is $72,500 more than if we had just budgeted the current rate; the roll back rate would be 3.4550 and that would give $145,000 more than the current rate; so we picked a rate to balance our budget with about halfway in between. Mr. Van Liere and Mr. Hanson further explained the millage options and answered questions. Minutes — City Commission Budget Workshop August 28, 2012 Page 4 Commissioner Beckenbach referred to page 104 and asked Mr. Van Liere to explain the remaining available cash balances and what they could be used for. Mr. Van Liere explained the amounts shown reflect his projection of the cash balances remaining at the end of next year, if they follow the plan. He further explained the details of the cash balances including what they can be used for. Commissioner Beckenbach asked approximately how much money would be available in order to consider a possible purchase of the Selva Marina Country Club. Mr. Hanson and Mr. Van Liere explained the various funding options. A lengthy discussion ensued. (Commissioner Daugherty left at 8:14 and returned at 8:16) Building Department (Handou Review ofBuilding Department 2012 -13 Budget 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. He explained the Enterprise Fund Concept which includes the following: The Building Department permit fees pay for the activities related to enforcement of the Florida Building Code and, by Florida law, permit fees may only cover building code enforcement activities; Floodplain management, housing code enforcement and zoning code activities are not funded with building permit fee; and the Building Department has been supported by the General Fund related to other non - building code activities. He reported the proposed budget includes anticipated expenses of $265,581 and anticipated revenues of $282,600. He explained the charts titled Construction Value in Atlantic Beach, Building Department Expenditures and Revenues, and Building Department Permits and Inspections which indicates construction seems to be coming back in Atlantic Beach. He explained the Building Department is operating with one Building Official and one Building Inspector /Plan Reviewer and reported the ISO rating for this year is 3 with 1 being the best and 10 being the worst. Human Resources (Handout: Human Resources) Human Resource Director Sue Danhauser explained the first slide titled Pension Payroll Fluctuation Factors noting it is in response to questions raised by Commissioner Daugherty. She and Mr. Van Liere answered questions from the Commission. She referred to the handout and explained that the major budget issues include union negotiations, health insurance, general insurance and employee compensation. She reported the status of union negotiations and explained what was put on the table is as follows: Implement Defined Contribution Plan for General Employees to include all non - vested employees hired on/after 09/01/2008 and all new employees; increase contribution for Police and General Employees in current Defined Benefit Plan; eliminate Personal Leave sell- back program; decrease Personal Leave Accrual; implement maximum leave accrual amount to 480 firs; implement Personal Leave payout at voluntary termination, layoff and retirement to 50% of accrued balance, not to exceed maximum allowed amount; and eliminate Longevity Add Pay. Minutes — City Commission Budget Workshop August 28, 2012 Page 5 She explained that the premium rates and out -of- pocket costs of health insurance continue to increase as she referred to various graphs and charts titled Total Cost per Fiscal Year, City's Annual Cost Per Policy Type, Employee's Annual Cost Per Policy Type, and Out -of- Pocket Expenses. She stated General Insurance, also known as Property & Liability Insurance, includes Property, General Liability /Law Enforcement, Automobile, Crime, Public Officials & Employment Practices, Fiduciary, Police Statutory Death/AD &D and Environmental coverage and Workers Compensation. She explained the factors driving up property insurance rates include a new version of the Catastrophic Probable Loss Model; global catastrophic losses doubled in 2011; and the average municipal coastal property rate increased from 10% - 15 %. She stated the Workers Compensation rates are done by a Mod Factor which is based on payroll, number of losses and the severity of those losses. She reported the Mod Factor for last year was .9 and this year it has gone up to 1.00 noting that the 2012 State rates have risen by an average of 8.9 %. She explained that the renewal rate estimate had come in with an increase of 21.7 %, but today she received good news that the increase will be lower and expects the new estimate tomorrow. She explained compensation issues including pay adjustments, pay compression, Consumer Price Index, inflation, and Social Security Tax. She reported there have not been any pay adjustments given for the last three years and there is no pay increase budgeted for next year either. She explained that in 2010 a bonus of 1.1% of base salary was given and in 2011 employees received a bonus of $556.11. Ms. Danhauser and Mr. Hanson answered questions from the Commission and discussion ensued. Ms. Danhauser reported the Social Security tax cut for all employees is scheduled to expire at the end of 2012. She stated that employees currently pay 4.2% of their income to Social Security and if this tax cut expires, all employees will have to pay 6.2% of their income to Social Security which will lower their take home pay even more. She summarized the situations which are impacting all employees, stating there have been no pay increases for 4 years but there has been an increased cost for medical insurance premiums of approximately 3.0% with increased out -of- pocket expenses (co -pays, deductibles), inflation factor of 7% and a possible Social Security tax increase of 2 %. Mayor Borno opened the floor to citizen comments. Citizen Comments Ray Brown, 522 Clippership Lane, expressed concern about the Workers Compensation Mod Factor and the high cost. He addressed the issue of pay increases in private companies explaining their increases are given as productivity increases and they do more with less. He stated he believes the City is playing games with taxpayers because the City is charging citizens fees that are required, transferring the money in to the General Fund therefore using less taxes, and then bragging about the lower tax rate. He would like the City to explain that to the citizens and indicated he would rather pay a higher tax rate with no fees or lower fees. He explained that in the case of Public Utilities, if they are installing new technologies and it has never been installed before, he would expect not to know what the manning requirements are, but if it has been installed elsewhere, we should have a fair understanding of the exact manning requirements. Minutes — City Commission Budget Workshop August 28, 2012 Page 6 Sally Clemens, 1638 Park Terrace West, commented on Commissioner Daugherty's comment regarding Selva Marina Country Club that the developers can go to them with more money than the City can. She asked whether an official from the City should go to them and ask them since they are Atlantic Beach people. The Mayor answered that he believes, by going to them, it may interfere with them finding a different solution. Mrs. Clemens believes the City should be more aggressive and just ask questions and send someone that has the tact to do that. She believes that we should protect the citizens from the traffic and problems that would be created if a developer goes in there. Nancy Whittington, 1861 Beachside Ct., asked for a clear answer to how much money is available that is not committed in the budget or is available to work with. Mayor Borno explained that there will be information provided at the next meeting. Mr. Hanson referred to the spreadsheet in the back of the budget that was covered earlier in the meeting as he reiterated why some of the fund restrictions make it complicated. Commissioner Woods commented on comments made by the Mayor and explained why she believes it would be beneficial for the City to step up to Selva Marina and express our support. Discussion ensued and Mr. Hanson offered suggestions. It was al4reed to have the City Manager check with Selva Marina Country Club Board to see 1) if they are interested in selling their property to City of Atlantic Beach for use as a city park, 2) if they would make their records available for use by consultants to do a feasibility study, and 3) if there is enough time before the sale of outstanding debt. The Commission asked to have a report ready by the third budget workshop on August 30, 2012. There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 9:16 p.m. Mike Borno Mayor Donna L. Bartle City Clerk 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 Bomo, Mayor Maria Marls, Mayor Pro Tem Marls 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 Bomo. 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 B uilding 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 walls 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 OutstandinIz Debt (Handout: Summary of Outstan 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 p ro j ects 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 Commiss 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 somethinL with Robert. Street Ditch, w ha ve staff that will ask a couple of questions and the Mayor will speak to James B ennett 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 8130112 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 th 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 lmprovements 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. Consens Add $225,000 to the Rose Park Improvement Project (which includes the estimat cost of $175,000 for Phase 1 improvements and $50,000 for mcreasin the playground size, but does not include the water feature fo $160,000). Consensus: Add $35,000 for Sidewalk on W. 9 th Street Consensus: Do not add $100,000 for decorative crosswalks on May port Ro ad and Atlantic Boulevard. Consensus: Do not eliminate the $79,000 for the Dutton Road Sidewalk. Consens Increase Monthly Stormwater Fee by $1.50 (to elim inate 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) Consens Do away with the half roll up; keep the tax rate the sam and swap the monk 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 Pr o j ect. Mayor Borno opened the floor to citizen comments. Minutes — City Commission Workshop Page 7 Citizen Comments August 30, 2012 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. Mike Borno Mayor Donna L. Bartle City Clerk