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Amended Item 1D- 8-24-16 AMENDED ITEM 1D MINUTES OCTOBER 10,2016 AUGUST 24, 2016 at 5:30 PM. CITY COMMISSION BUDGET WORKSHOP 800 SEMINOLE ROAD,ATLANTIC BEACH,FL In Attendance: Staff: Mitch Reeves, Mayor Dan Arlington, Building Official Jimmy Hill,Mayor Pro Tern Cathy Berry, Human Resources Director Mitchell Harding, Commissioner Russell Caffey, Finance Director John Stinson, Commissioner Michael Deal,Police Chief Blythe Waters, Commissioner Don Jacobovich,Public Works Director Nelson Van Liere, City Manager Timmy Johnson, Recreation &Events Director Brenna Durden, City Attorney Kayle Moore,Public Works Deputy Director Donna Bartle, City Clerk CMC Derek Reeves, Planner/Interim Bldg&Zoning Dir. Keith Randich, IT Director Scott Williams, Public Works Deputy Director Call to Order Mayor Reeves called the meeting to order at 5:35 pm. He explained City Manager Van Liere has provided answers to questions from the previous budget meeting. He would like to cover those items before delving into the budget. City Manager Van Liere explained he responded via email today with answers to questions from the previous budget meeting. Most of the information will be covered in this presentation. He asked if the Commission would like to review the questions before the presentation or wait until after the presentation. Commissioner Stinson asked the City Manager to explain the revenue reduction based on the "roll-back rate" of 3.1754. Mr. Van Liere explained the"roll-back rate"for this year is 3.1754. If the City approves the"roll- back rate" there will be a reduction of$219,370 in revenues. The General Fund revenues exceed expenses by an amount equal to 1/10 of a mill. He will discuss the millage and balancing the budget at the end of the meeting. Commissioner Hill felt a lot of the questions would be covered in the presentation. Mayor Reeves stated the purpose was for the Commission to receive the answers to the questions prior to the presentation so they would have time to review them. However, they just received the answers this afternoon. Mayor Reeves stated he would agree to move through the budget without reviewing the 36 questions in hopes that during the presentation they would be answered. He wanted to give Commissioner Stinson the opportunity to respond because they were his questions. Commissioner Stinson stated the questions originated out of his study of the proposed budget. He sent them to the City Clerk to distribute to all Commissioners. He appreciated receiving the answers today but he has not had the time to review them. Once he has reviewed the answers he will meet with the City Manager individually if he needed further clarification. Mayor Reeves agreed. City Manager Van Liere advised the budget presentation would begin with the Building Department followed by Planning & Zoning, Public Works, Topics and Conclusions. He reminded everyone this is a proposed budget that can be revised. The final budget will be prepared for adoption on September 12th. Mayor Reeves asked City Manager Van Liere to give a summary of the revised pages that were placed in tonight's packet. Mr. Van Liere explained the twelve revised replacement pages provided by the Finance Director are in reference to the current year payroll only; no changes have been made to the upcoming proposed budget. August 24, 2016 Budget Workshop Meeting Page 2 of 20 Building Department Building Official Dan Arlington gave a slide show presentation of the Building Department Budget Review FY2015-2016 and the Projected Budget FY2016-2017 as follows: Building Department activities, revenue and expenditures associated with enforcement of the Florida Building Code. Mr. Arlington explained the Building Department is fully staffed and the department is running efficiently. The current staffing in the department is: Title: Employee: Building Official Dan Arlington Senior Building Inspector Mike Jones Administrative Assistant Grace Mackey Building Permit Technicians Toni Gindlesperger Jennifer Johnston He explained the Building Department is funded by the Enterprise Fund and explained the Enterprise Fund concept. The building department permit fees pay for the activities related to enforcement of the Florida Building Code. By Florida Law, permit fees may only cover building code enforcement activities. The building department contributes to the General Fund to help cover non-building related city administrative costs. When building department fees do not cover departmental expenses,the general fund covers the gaps. Revenue Projections FY 2015-16 Initial Estimated Revenue $439,134 FY 2015-16 Year to Date(Oct—July) $417,036 FY 2015-16 Current Estimated Revenue $485,652 FY 2016-17 Estimated Revenue $459,250 Proposed Expenses 2016-17 Salaries &Benefits $ 338,094 Training $ 3,000 New Vehicle $ 20,000 Computer Equipment $ 4,000 Contract Labor $ 36,440 Additional Expenses $ 56,385 Total Expenses $ 457,919 Construction Trends Unless Specified Otherwise, 10/01/15 through 07/31/16 4 new Commercial Projects Pet Supplies Plus, Fleet Landing Nursing Facility, Urban Farms & Atlantic Self Storage 89 New Homes Year to Date 36 New Units in Atlantic Beach Country Club 21 New Units for Habitat Homes in Mayport 32 Infill Units throughout the City 72 New Homes Year to Date 2015 35 New Homes Year to Date 2014 August 24, 2016 Budget Workshop Meeting Page 3 of 20 Building Expenditures&Revenue 2015-2016 Proposed 2016-2017 Revenue $485,652 $459,250 Expenditures $402,022 $ 457,919 Construction Value in Atlantic Beach 2014-2015 Projected 2015-2016 Value of $36,741,374 $47,251,057 Permits Building Permits&Inspections 2014-2015 Proposed 2015-2016 Permits Issued 2756 2732 Inspections 4953 6188 Number of Businesses Mayor Reeves asked if there were any statistics regarding the number of new businesses and lost businesses throughout the year. Mr. Arlington stated he does not track the number of businesses coming and going. He only tracks the number of new buildings and remodels. Mayor Reeves asked if there was a way to track new businesses. Mr.Arlington advised he would obtain the information for the Commission. Computer Equipment Mayor Reeves asked if the cost of new computer equipment should be included in the IT department budget. Mr. Arlington explained this equipment is for the Senior Building Inspector to install a new computer tracking system in his vehicle. The system is also built into the lobby computer so contractors and property owners can track the status of permits online. Mayor Reeves asked if contractors would be able to present plans online. Mr. Arlington responded they were going to start out with requests for over the counter permits such as, electric, roofing, plumbing, etc. and build up to online plan reviews. The online plan reviews will also require larger computer screens and extra equipment. Contracting out the Building Department Mayor Reeves asked the City Manager if he had considered the feasibility of contracting out the building department. Other cities our size that use a contracting system are based on a 70/30 split of the cost. City Manager Van Liere replied "no." The building department uses a contracted inspector through Universal Engineering. The firm offers plan reviews but he has not considered using the company to replace employees. The City can only use money generated from permitting and inspection fees to enforce the building code. The money cannot be transferred to the General Fund. If the department generates more income than needed to provide the services they would have to lower the amount of fees generated. Permit and Inspection Fees Mayor Reeves asked if the City could save money by contracting out fire inspections or lowering inspection fees. Mr. Arlington responded Jacksonville Fire and Rescue charges $50.00 for the permits they issue for fire suppression systems and alarm systems as part of the Interlocal Agreement. Atlantic Beach charges $35.00 to handle administrative costs. Training Commissioner Hill questioned if the $3,000 budgeted amount for training was enough. He suggested padding the training budget in order to train new staff. He felt it would benefit citizens to have Universal Engineering expand instead of increasing staff in the building department due to the lack of future growth. August 24, 2016 Budget Workshop Meeting Page 4 of 20 New Vehicle Commissioner Hill asked if$20,000 was enough money to purchase a new vehicle. Mr. Arlington replied he budgeted for a two wheel drive vehicle. If the Commission felt the vehicle needed to have more capabilities he should purchase a four wheel drive vehicle. Mayor Reeves asked if the City purchased vehicles through a State or City contract. City Manager Van Liere replied"both." Contract Labor Commissioner Waters asked if there were guidelines for hiring outside contract labor to assist with plan reviews and inspections. Mr. Arlington replied the City Manager asked him not to exceed five days for plan reviews. There are no other set guidelines. Training Commissioner Stinson asked Mr. Arlington to elaborate on the $3,000 budget for training. Mr. Arlington explained he has to have a minimum of 14 hours of training every two years in order to maintain his license. Commissioner Stinson asked if training would be provided for other staff members. Mr. Arlington replied "yes." There are training opportunities for every trade. Senior Building Inspector Mike Jones is currently studying to obtain his building official license. Commissioner Stinson felt training was good for staff. The better trained the staff is, the better it is for the City. Commissioner Stinson asked if the contract labor budget included the cost for covering staff while they were out training. Mr. Arlington responded "yes." Commissioner Stinson asked Mr. Arlington if he would provide a list of the training that is included in the proposed budget and any training he would like over and above that, including the cost associated for Universal Engineering to cover during staff absences. Mr. Arlington replied"yes." Contractor Non-compliance Commissioner Stinson asked if the City had something in place to punish contractors for disregarding the City's permit rules and regulations. Mr. Arlington explained the disregard for rules and regulations falls under the Department of Professional Regulations. He has filed formal complaints in the past but it is very labor intensive and time consuming. Commissioner Stinson explained his idea was to issue a warning for the 1s` offense, impose a fine for the 2nd offense, and impose a 180 moratorium on allowing them to do business in Atlantic Beach on the 3`d offense. Mayor Reeves asked if that was possible. Mr.Arlington replied under those circumstances contractors are protected by the State. The State just passed new legislation that became effective July 15`that gives them even more protection. Mayor Reeves stated this is a good example why the City needed to support home rule. Computer System Commissioner Stinson asked when the new computer system,that will allow the tracking of permit status, will be in place. Mr. Arlington replied the new system should be up and running in May 2017. Additional Expenses Commissioner Harding asked Mr. Arlington for a summary of the $56,385 additional expenses. Mr. Arlington explained additional expenses include all of the department's business expenses. The business expenses are communications, transportation, postage, insurance, repair and maintenance of equipment, repair of vehicles, printing, office supplies, operating supplies,fuel and room and board. Fire Inspections Commissioner Harding stated after an occupational license is issued the building department inspects the building. After the building department does the building inspection the Jacksonville Fire Department does an occupancy inspection. Neptune Beach has an in house person that is subcontracted to conduct fire inspections and inspect fire extinguishers. He asked what the Jacksonville Fire department charged to provide the service. August 24, 2016 Budget Workshop Meeting Page 5 of 20 Mr. Arlington stated it is part of the Interlocal Agreement for the Jacksonville Fire Department to provide the service. Commissioner Hill added the Jacksonville Fire Department also sends out a suppression crew to assist in inspections. This also allows them the opportunity to understand the interior of the building so if it ever catches on fire they are familiar with the interior floor plan making it easier to locate any occupants. He suggested trying to renegotiate the cost with the City of Jacksonville. Commissioner Stinson asked how much revenue the inspections generated. Mr. Arlington answered it amounted to about $600.00 per year. Commissioner Stinson felt the City should be able to lower the cost to citizens and absorb that small amount. Room and Board Commissioner Waters asked City Manager Van Liere to explain the room and board expense. Mr. Van Liere explained when the Building Department generates money it can only be used for building department purposes. Room and Board is part of the way the department adds to the General Fund. There are a number of divisions in the General Fund that support enterprise operation. Those departments are building, water, sewer, sanitation, and stormwater. Those departments receive the benefit of having an accounting staff, a City Manager, IT department,payroll and a finance department. Each enterprise fund allocates a portion of revenue to the General Fund. The allocation of$37,500 for the Building Department is for the use of those services. Commissioner Waters asked if there was a law that restricted the amount allocated. Mr. Van Liere replied the allocation is not restricted by law but there is a method for calculating the amount and the amount has to be within reason. Inspections Commissioner Hill asked Mr. Arlington if he could ask for an occasional random inspection from the City of Jacksonville to help keep contractors honest. He felt this would add an extra layer of enforcement. Commissioner Hill asked Mr. Arlington if there was anything the Commission could do to help improve the culture of customer service. Mr. Arlington responded he would appreciate it if Commissioners would contract him if they received a call from a disgruntled person so he could provide his side of the story. Use of Personal Vehicle Mayor Reeves voiced concern about Mr. Arlington using his personal truck for City business. Mr. Arlington stated he used his personal truck when the City vehicle was not running. Mayor Reeves asked if he provided an insurance rider when he used his own vehicle. Mr. Arlington advised the City vehicle is now running and he is in the process of purchasing two new folding ladders that will fit in the smaller vehicles. Mayor Reeves asked the City Manager to look into risk management and ensure the City is protected when staff uses personal vehicles for City business. Training Commissioner Waters asked if training was provided for the front desk staff Mr. Arlington stated he would love to add that to the budget. Classes are also provided for permit technicians. Commissioner Hill asked the City Manager how the budget adjustments would take place after the meeting. Mr.Van Liere explained he would provide the Commission with a list of adjustments by department. Community Development Department/Derek Reeves Mr. Reeves explained the Planning Department and Code Enforcement have now become two separate departments. He gave the following presentation. August 24, 2016 Budget Workshop Meeting Page 6 of 20 The current staffing in the department is Title: Employee: Community Development Director Vacant Planner (Derek Reeves /Interim Director) Code Enforcement Coordinator Outside Help not Supervised by the Director Planning Administrative Duties Handled by the Building Department's Admin Asst. Code Enforcement Board Secretary Duties handled by the City Clerk's Record Clerk 2015/2016 Planning Division Milestones Awarded $25,000 Technical Assistance Grant to fund the CRA/Redevelopment Plan Awarded $10,000 Grant to Create a Tree Management Plan. (Will Complete in 2016/2017) Annexation of ABCC Including Comprehensive Plan Amendments Received Tree City USA Designation Successfully Defended Gate Gas Station Appeal 2016/2017 Planning Division Goals Hire a Full Time Director Implement the CRA/Redevelopment Plan(Community Development Fund- $50,000) Address Codes Related to the Moratorium on Gas Stations Address Necessary Sign Code Revisions Implement the Tree Management Plan $10,000 for Professional Services • Comprehensive Plan Evaluation and Appraisal Notification • Possible Rewrite of Land Development Regulations • Possible Overlay District Creation for Town Center 2015/2016 Community Development Board Update Heard the following 22 Total Items in 8 Meetings as of August 2016 10 Variances 6 Use by Exceptions 2 Ordinances 2 Comprehensive Plan Amendments 1 Rezoning 1 Plat 2016/2017 Planning Division Budget 2 Employees: Community Development Director Planner Expenses: 2015/2016 $243,000 Included $92,000 CRA Study 2016/2017 $186,000 New Director's Salary TBD Possible Budget MOD Pending Land Development Regulations Rewrite Cost TBD August 24, 2016 Budget Workshop Meeting Page 7 of 20 Revenue: 2015/2016 None 2016/2017 None Tree Fund Update Year Revenue 2014 $8,180 2015 $6,083 2016 $7,514 Balance $21,470 Expected Expenses Finalize Tree Management Plan $ 5,750 Complete Plantings Under$10,000 Grant Match $ 2,950 Begin Implementation of Tree Management Plan TBD 2015/2016 Code Enforcement Division Milestones Code Enforcement Officer Left May 2016 Code Enforcement Officer Title changed to Code Enforcement Coordinator Hired a new Code Enforcement Coordinator in July 2016/Debbie White High Profile Cases Cloister Gate Use—Pending Litigation 457 Sailfish Drive East—Property Sold and Demolished for new Home 85 Edgar Street—Property Sold and Demolished by Beaches Habitat Responded to Resident Complaints Limited Proactive Enforcement 2016/2017 Code Enforcement Division Goals Continue Working Open Cases Increased Focus on Proactive Enforcement Including • Junk Cars • Abandoned Properties • Overgrown Yards 2015/2016 Code Enforcement Board Update Items Heard 1 Old Item 1 New Item 1 Rehearing 1 Request for Rehearing 4 Meetings Held Limited Number of Items due to Newer Code Enforcement Officer Getting up to Speed and then Leaving the City with no Officer for 2 Months 2016/2017 Code Enforcement Division Budget 1 Employee: Code Enforcement Coordinator Expenses: 2015/2016 $68,500 Budgeted $47,500 Projected (without officer for two months and lower than expected benefit costs) August 24, 2016 Budget Workshop Meeting Page 8 of 20 2016/2017 $72,000 Budgeted No Major Expenses Expected Revenue: None Community Redevelopment Agency/Land Regulations Review and Rewrite City Manager Van Liere stated he added $50,000 to the budget for Community Redevelopment. He was not certain if the Commission wanted to create a Community Redevelopment Agency or rewrite the Land Development Regulations this year. If the Commission decided to create a Community Redevelopment Agency the City would need to transfer additional money from the General Fund to help fund the program. There is also $155,000 added into the legal budget because the City Attorney will need to take part in the process. He asked for guidance from the Commission as to whether or not they wanted to add more money to the budget. Commissioner Waters suggested hiring an outside firm. She felt an outside firm would be best because they would be familiar with the process and have a bank of best practices and examples to draw from and modify based on citizen input. She estimated a cost of$250,000. Mayor Reeves asked if there was any funding left over from not having to pay a salary for a Planning Director for August and September. City Manager Van Liere stated"no," because the previous director cashed out his leave balance. They are also still using a contract service for plan reviews. Mayor Reeves wanted to know if the $50,000 budgeted could be reallocated to another fund if the Commission decided to create a Community Redevelopment Agency. Mr. Van Liere responded the budget could be amended. Code Enforcement Liens Mayor Reeves asked if the City received any revenue from property liens and if so, where is it shown in this budget. City Manager Van Liere replied money received from property liens goes into the General Fund. The City has not foreclosed on any properties this year, instead they aim for compliance. The Code Enforcement Board assesses fines and they also forgive fines when properties come into compliance. Mayor Reeves felt the City needed to set rules regarding collecting fines for code enforcement. Tree Mitigation Fund Mayor Reeves stated there is currently$21,000 in the Tree Fund that is not being spent. Mr. Van Liere replied "yes." Commissioner Waters added that Mr. John November is working with the City of Jacksonville to properly implement their Tree Fund which is much larger. The goal of not spending the money is to have a plan in place for planting proper species and maintaining the tree canopy. The plan may not be put into place this year. Mayor Reeves felt this added to the importance of creating a Tree Committee to help come up with a plan. Planner Reeves stated revenues in the Tree Fund have increased because replacement payments increased. Community Redevelopment Agency/CRA Commissioner Stinson stated the Commission was going to be hearing recommendations for creating a Community Redevelopment Agency. He asked where the $50,000 amount came from. Mr. Van Liere advised he came up with the $50,000 amount to show the City was committed. It is basically for discussion purposes. Planner Reeves explained if the Community Redevelopment Agency is approved by the Commission the cost will be approximately $250,000 annually. That cost includes programs and improvements, maintenance and a Program Coordinator to put on events and work with businesses. Commissioner Stinson asked if the Commission decided not to create the CRA could the $50,000 be used for the review of Land Development Regulations. City Manager Van Liere responded that depended on the cost. Mayor Reeves asked if the City August 24, 2016 Budget Workshop Meeting Page 9 of 20 Manager could reallocate the expenditure without approval from the Commission. Mr. Van Liere replied "yes." Commissioner Waters stated if the City chose not to proceed with a CRA she would like to reinvest in the redevelopment along the Mayport corridor. She would like for the $50,000 to be used or saved for redevelopment projects and create a separate line item for the review and rewrite of the Land Development Regulations. City Manager Van Liere stated the $50,000 could begin as seed money to create an annual contribution to the Redevelopment Plan. This would not be a typical operating expense of the General Fund. Commissioner Stinson asked the City Manager to present to the Commission what the cost difference would be between choosing to create a CRA or to review and a rewrite the Land Development Regulations. Commissioner Hill felt that 80% of the department's budget depended on the hiring and the skill level of the new Planning Director. He suggested hiring the Planner before making the decision. Code Enforcement Commissioner Hill asked the City Manager to consider structuring the code enforcement system so there is one person serving as an enforcement officer and one person serving as a resolution person. He would like for the City to have the ability to reach out to property owners that do not have the means to afford correcting the code problem. Commissioner Stinson complimented the City Manager and staff. He added that Code Enforcement Officer Debbie White does a great job enforcing the codes and working with the Code Enforcement Board. He also thought the Board did a great job moderating and working with property owners to resolve problems. Commissioner Hill asked City Manager Van Liere to work on a solution to help residents resolve code enforcement issues. He suggested maybe a church group or Habitat for Humanity could pitch in and help. City Manager Van Liere advised there has been some discussion regarding the use of a Special Magistrate verses a Code Enforcement Board. He will be preparing and submitting a report to the Commission. Tree Mitigation Fund Commissioner Hill felt most citizens were concerned about the loss of large canopy trees. He felt raising the cost of tree mitigation would have more of a financial impact on the property owner which may be more effective. Planner Reeves advised they are seeing some improvements regarding tree protection. Infrastructure/New Businesses Commissioner Hill also felt the City should do more on the administrative side to make it more convenient for businesses to move into the City. He felt the City could go after certain types of businesses by making the facilities more in line with utilities, infrastructure and police support. Code Enforcement/Bank Owned Properties Mayor Reeves agreed the City should help residential property owners with code enforcement issues but he had no compassion for homes that were bank owned. He was surprised the City had not received any revenue from homes that were foreclosed. Tree Mitigation Fund Mayor Reeves voiced concern about people removing trees without permission. He agreed the City should increase the cost of tree mitigation. Planner Reeves advised the tree fund rate is currently $123.00 per inch. That cost is based on the cost to buy and plant a 4" live oak. Commissioner Hill felt the problem was that it takes a 4" live oak 75 years to make an impact. He recommended attempting to increase the size of live oak August 24, 2016 Budget Workshop Meeting Page 10 of 20 replacement tree. Although the survival rate of 4" live oak is higher than a larger one he felt if the homeowner had a stake in the cost the survival rate would increase. Mayor Reeves asked if the City received many complaints regarding the cost of$123.00 per inch. Planner Reeves responded most people objected at first but came back with more plantings. He would explore some other options. Planning Director Position City Manager Van Liere explained the City has not received many applications for the position of Planner. He asked the Commission about raising the salary or offering to pay a relocation fee. Commissioner Hill stated he would agree to offer a relocation fee but not a large salary increase. Commissioner Waters explained one of the prior Planner's frustrations was that he did not have time to plan for the future because he was too busy dealing with day to day events. She asked the following questions: 1) how much time is spent on things similar to the Gate Station issue, 2) what if the City contracted out large planning issues, and 3)what is the cost of hiring someone who is not a long term member of the community or beaches resident. City Manager Van Liere suggested having Derek Reeves become Planner 2, hiring a Planning Technician and using a contract service to handle large issues such as the Gate Station project. That would allow the Planning Director time to concentrate on visioning for the future without the headaches of day to day issues. Commissioner Hill stated he felt the Commission recognized this might be a shifting moment in the Planning Department. He was willing to consider looking at some options and budgeting more money to make changes if necessary. Mayor Reeves liked the idea of using a contract service for larger projects. He felt the Planning Director position may become less critical when the City becomes built out. He agreed to look at some options. City Manager Van Liere explained the planner's job is how to keep building in a built out community,which is what makes every project complicated. Developers are trying to squeeze every inch out of every corner and the planner has to apply the rules. Conclusion Commissioner Hill stated he would need some basic information to make a final decision and they would not have that until the City deals with the Comprehensive Plan and the CRA. Mr. Van Liere responded he would be addressing that issue at a later date. The budget can be amended once the decision is made. Commissioner Hill asked Mr. Reeves what the Commission could do to make his job easier. Mr. Reeves stated he could use more staff. He also would like Commissioners to contact him if they hear a compliant from a disgruntled citizen regarding the department. Mayor Reeves agreed to contact staff regarding citizen complaints but he also felt staff could help by trying to eliminate the need for citizens to contact Commissioners to solve an issue. Commissioner Hill stated he is willing to give staff the benefit of the doubt when he hears complaints from citizens. The staffing issue needed to be corrected as soon as possible. The way the system is set up; Commissioners are supposed to direct complaints to the City Manager. He liked the fact that Commissioners could talk with department heads but felt it also created the potential for citizens to ask Commissioners to solve problems. August 24, 2016 Budget Workshop Meeting Page 11 of 20 Mayor Reeves stated when he receives complaints from citizens the first thing is does is ask them if they have contacted the correct department head or person responsible. If they say "no," he asks them to contact that person and then call him back if they do not receive a fair response. He felt the City needed to communicate better with the public. Mayor Reeves stated Derek Reeves did a great job for the City and he appreciates all that he does. Commissioner Stinson stated the previous Planning Director was crucified in the newspapers for speaking with the public. He felt the Commission had an obligation to stand behind employees. He suggested the City establish an Educational Program for residents regarding tree mitigation and what the City is trying to accomplish. He questioned what it would take for the City to become more proactive with code enforcement instead of being reactive. He would prefer to use the Community Development Board to develop and put together a plan for new Land Development Regulations and then have experts review and refine the plan. Mr. Reeves stated code enforcement would need to hire additional staff in order for the Code Enforcement Officer to be proactive. City Manager Van Liere added he has been calling in code enforcement issues himself and encouraged Commissioners to do the same if they see something that does not make the City look good. Most of the issues were in commercial areas. Commissioner Stinson would like to continue using a Code Enforcement Board instead of hiring a Special Magistrate. Commissioner Hill felt the issue of property rights verses the tree canopy was a huge concern. Because the trees add value to the City he would like to find a way to protect the tree canopy that also protects the constitutional rights of property owners. He suggested finding out how other cities (such as St. Augustine) preserves trees. Commissioner Waters asked Mr. Reeves if it would make his job easier if the Land Development Regulations were reviewed and rewritten. Mr. Reeves responded "yes," it would make his job easier. The majority of his time is spent trying to answer questions regarding the interpretation of the Code. He added the old Atlantic Beach design standards are difficult. Commissioner Waters agreed she receives calls from residents that have not liked the answers they received from the Planner regarding what they can or cannot do with their property. She felt the Commission needed to determine a response to those questions. Mayor Reeves called for a recess at 7:54 pm and reconvened the meeting at 8:17 pm. Public Works Department/Don Jacobovich Mr. Jacobovich explained the Public Works Department consisted of almost half of the City's total budget. There are 10 different budgets within the department. He introduced Kayle Moore who is in charge of Public Utilities and Scott Williams who in charge of Public Works Activities. He proceeded with the following presentation: Primary Responsibilities • Water, sewer, streets, rights-of-way, parks, facilities, stormwater, sanitation and fleet maintenance and construction administration. • Permits:NPDES,MS4, EPA, SJRWMD • Commercial and Residential Plan Review • Rights-of-way Permits • Stormwater Utility Fee Calculations August 24, 2016 Budget Workshop Meeting Page 12 of 20 Mr. Jacobovich stated the Public Works Department has five full-time employees and one part-time employee in the administration. Facilities Maintained 60 Miles Paved Streets and Right of Way 54 City Buildings (31 Sewer Lift Stations) 5 Treatment Plants 6 Stormwater Treatment Ponds 240 Miles of Water, Stormwater and Sewer Pipe 14.4 Miles of Stormwater Ditches and Swales 1 Stormwater Pump Station(shared with Neptune Beach) 104,000 LF Sidewalk& 8' Multi-Purpose Paths 15 Parks (6 Active, 6 Passive, 3 Preserves) 1.6 Miles of Beach The Public Works department has 19 full-time employees. Public Works Budget 2016/17 Fund Budget General Fund-Admin 451,0166 Streets Division 906,278 Building Maintenance 213,765 Gas Tax 550,000 Half Cent Sales Tax 1,265,000 Sanitation Utility 1,838,645 Capital Project Fund 385,000 Stormwater Utility 2,314,473 Total 7,924,177 Public Works Capital Items 2016/17 Item Budget Request Seminole Road Improvements —Carried 1,600,000 Forward Stormwater Master Plan Update& 250,000 Aquatic Gardens Improvements Stormwater System Improvements to 250,000 Saltair Neighborhood Street Resurfacing 400,000 Resurfacing Program FY 2016/17 -$340,000 Proposed Budget $60,000 for Specific Problem Areas • Current year Paving Completed • Seminole Road Street Resurfacing Discussion ensued regarding street resurfacing, prepping dips and swales prior to resurfacing, material options and the tree canopy. Mr. Jacobovich explained proper preparations of roadways as well as inspections are crucial to the outcome of the pavement. He provided the Commission a list of road resurfacing needs based on the conditions of the roads. August 24, 2016 Budget Workshop Meeting Page 13 of 20 Commissioner Harding asked Mr. Jacobovich to consider that West 10th Street between Mayport Road and Orchid Street needs to be resurfaced. Mayor Reeves stated "for the record"the repaving on Sea Oats Drive would not be in front of his house. He questioned why Oceanwalk gets paved every year. Commissioner Stinson thought it would help if Mr. Jacobovich provided a list of the criteria he uses to calculate the OCI factor. Mr. Jacobovich agreed to provide that information. Commissioner Hill asked Mr. Jacobovich to move streets that have upcoming underground utility improvements to the bottom of the priority list so they did not have to go back and repave again after the work was completed. He added properties on West 14th and Plaza West had limited infrastructure and less utility access than other areas in the City. Those streets need updated sewer facilities and infrastructure before the City repaves. City Manager Van Liere stated the list of streets to be resurfaced can be rearranged as necessary. The rating system for the road conditions is a tool that attempts to remove politics from the process. Commissioner Hill responded he did not want the City to waste money paving a road and then have to repave it within two years because of utility improvements. Mr. Jacobovich explained the criteria used to determine which streets should be repaved. Commissioner Stinson asked if traffic volume was part of the criteria especially considering delivery trucks in commercial areas. Mr. Jacobovich responded the criteria for street resurfacing has been used for years. He did not think it included traffic volume. Commissioner Waters mentioned that citizens have also complained about delivery trucks in residential areas. She asked if that was measured. Mr. Jacobovich advised because development is constantly occurring it is hard to track heavy truck traffic activity. Pavement Management 2016/2017 Street Starting Point Ending Point OCI Sturdivant Avenue Sherry Drive Seminole Road 51.25 Ocean Walk Dr.N. Oceanwalk Drive W. Oceanforest Dr.N. 51.67 Hibiscus Street Dead End Levy Road 52.92 Parkside Drive 11th Street Plaza Drive 52.92 Ocean Blvd. 10th Street 13th Street 52.92 Plaza Drive Ocean Blvd. East Coast Drive 53.33 Begonia Street West 1st Street Dead End 53.33 West 14th Street Orchid Street Mayport Road 53.33 5th Street East Coast Drive Ocean Blvd. 53.75 Brista De Mar Cir. 20th Street 20th Street 54.58 Sea Oats Drive Saturiba 19th Street 55.00 Mr. Jacobovich stated there are currently 23 full time employees in the Utilities Department. He explained the flow of capacity of the plants as follows: Utilities 2016 Flow Treatment Plant Design Capacity MGD Actual Flow Wastewater Treatment Plant 3.50 1.91 1. Annual Ave Daily August 24, 2016 Budget Workshop Meeting Page 14 of 20 Water Plant#1 —Max Day 3.17 1.68 Water Plant#2—Max Day 2.90 1.29 Water Plant#3 —Max Day 1.59 0.87 Water Plant#4—Max Day 0.25 0.24 Utilities Budget FY 2016/17 Fund FY 2016-17 Water Production 866,251 Sewer Treatment 2,554,949 Distribution/Collection 2,991,836 Non-Divisional 3,720,100 Total 10,133,136 Non-Divisional includes: • Transfer to General Fund • Internal Service Charges • Insurance • Debt Mr. Jacobovich explained the Water Capital Projects the department would like to accomplish the upcoming year. New Water Meters One of the capital projects is replacing water meters. They were going to begin the installation by focusing on commercial properties. The new water meters have a program that will allow customers to view their water consumption online. Mayor Reeves asked if the program also allowed customers to pay their utility bill online. Mr. Jacobovich replied this program is not related to making payments online. Mayor Reeves questioned if the$95,000 grant money was received this year. Finance Director Caffey advised the grant was approved this year but the money has not been received. Commissioner Hill asked if there was an additional benefit of having the data available to customers and if there was any savings for the City. Mr. Jacobovich replied they are starting the new water meter program with commercial property because those properties use the most water and the conservation benefit would be greater. Water Capital Items FY 2016/17 Item Budget Request Replace Aging Water Service in Seaspray Subdivision(approx. 44 services) 175,000 Install Automated Metering 160,000 Infrastructure for Commercial (Grant) (95,000) Meters(Cost-Share Grant)Phase 1 Well Video—Logging and Management Plan 130,000 Atlantic Blvd. Water Main Loop to Aquatic Dr. West 100,000 (Design Only) Self-Contained Breathing apparatus WTP 1,2, and 3 6,000 August 24, 2016 Budget Workshop Meeting Page 15 of 20 Chlorine Auto control Valves at WTP 3 10,000 Mr. Jacobovich explained the Sewer Capital Projects as follows: Mayor Reeves questioned if the $63,000 grant was received this year. Finance Director Caffey responded the grant has been approved and it was last year's grant. Commissioner Hill asked if the amount of capital items were unusual. Mr. Jacobovich advised the amount of capital items was consistent for making improvements. Surplus Property in Jacksonville Mayor Reeves asked if the City could legally sell the surplus property in Jacksonville and use that revenue in public works or another area of the budget. City Manager Van Liere stated he did not see any reason why the City needed to keep the property. The property is outside the City limits so the City would not be able to develop it or use it for a park. He would be in favor of selling the property. The revenue from the sell would likely have to go back into the Water and Sewer Utility Fund to be used for projects. However, that fund can legally transfer funds to the General Fund. He added the list was in line with annual capital expenditures which are usually around one million. Sewer Capital Items FY 2016/17 Item Budget Request Phosphorous Removal 225,000 Improvements at WWTP(Grant) ($63,000) Install 2nd Centrifuge Unit at WWTP 75,000 Replace Clarifier Drives at WWTP 225,000 Replace 2nd Influent Screens at WWTP 42,000 Replace 1 of 3 Influent Pumps at WWTP 22,000 Control Component Upgrade for 4 Master Lift Stations 100,000 Replace 4 Wetwell Tops with Opening Hatches 24,000 Install New Control Panel at Oceanwalk Lift Station 20,000 Replace Suction Lines at West Amelia and Selva Marina LS's 20,000 Install Softstarts at Lift Stations`B"(2 Motors) 6,500 Mr. Jacobovich showed slides of charts for the stormwater, gas tax and sanitation funds. He explained there was a peak in the Storm Water Utility Fund for 2017. There was a peak in the Gas Tax Fund for 2017 due to the Seminole Road project and a small peak in the Sanitation Fund for the purchase of a truck. Conclusion Public Works Director Jacobovich stated this is the end of his presentation. They incorporated Utilities within the Public Works Department in 2015 and it is working well. They expect more homes will be built in the upcoming year creating an increased need for water. There is a reuse water system for the Atlantic Beach Country Club. There are some additional operational charges this year based on reporting requirements for the NPDES and the MS4. He will be emphasizing customer service this year throughout the department. This will include providing management classes for supervisors on how to provide good customer service and how to handle unruly employees. He would like for the department to work towards becoming accredited. He explained the accreditation process involves 500 to 600 standard operating procedures. August 24, 2016 Budget Workshop Meeting Page 16 of 20 Mayor Reeves questioned the amount of revenue provided by the '/2 Cent Sales Tax. Mr. Caffey explained the difference. This year the revenue received from the 1/2 Cent Sales Tax is projected to be$481,000. Mayor Reeves asked if the City has considered the purchase of a menzi muck to clean out ditches and help with drainage. City Manager Van Liere explained several years ago the City asked the Commission to replace their old menzi muck that was out of service but the purchase was not approved. Mayor Reeves asked the City Manager to look into sharing the cost of a menzi muck and a vacuum truck with Neptune Beach. Commissioner Hill stated many cities were removing fluoride from their water. He asked if the Public Works Director had addressed the issue. Mr. Jacobovich responded the City does not add fluoride to the water so it is not a concern. He did not see any useful purpose to it. Commissioner Hill asked if there was money budgeted to maintain wooden surfaces and signage. Moving forward he would like to see more continuity in signs throughout the City. He would also like to provide an enhanced crosswalk at the 1500 block of Seminole Road and at Mayport Road and Plaza. Mr. Jacobovich explained he is looking into the cost of the crosswalks. Commissioner Hill asked if the City currently had the option to access the well in the park during extreme drought conditions. Mr. Jacobovich doubted the City would be able to reopen that well but they recently dropped a well in Howell Park and would soon be installing a pump. Stinson asked if there were any customer service initiatives planned for the department. Mr. Jacobovich stated he has not developed any initiatives other than expectations. He explained what his expectations were. Stinson asked if there were any concerns about diminishing water levels in wells. Mr. Jacobovich replied at this time there are no capacity problems. He would like to develop an efficient well management plan to move the water from well to well. Stinson asked if there were any plans to add new park rangers to staff. Mr. Jacobovich replied he had a request to add one additional ranger. City Manager Van Liere advised that item is on his follow up list. Mayor Reeves asked Mr. Jacobovich what changes he would make today, if he were given full authority to reorganize the department without decreasing services. Mr. Jacobovich replied he has hard working employees. He would not make any changes. Mayor Reeves voiced concern regarding small sidewalk repair projects. Mr. Jacobovich explained some small projects are delayed due to the size and having to hire outside contractors. City Manager Van Liere stated that is the conclusion of the departmental presentations. He would like to review some items that were suggested at the previous meeting. He provided the following list of additional topics and explained the purpose for each one. Additional Budget Items Topic Cost 1. Millage Rate of 3.3285 to 3.2285 $143,285 (reduction of revenue) 2. Additional Police Officers $238,000 3. Additional Pension Costs $200,000 4. Additional Maintenance Worker $ 45,000 5. Media Specialist/Salary&Benefits $ 42,800 6. Wi-Fi for the 3 Community Centers $ 5,100 ($1,700 per location) August 24, 2016 Budget Workshop Meeting Page 17 of 20 7. Sea Turtle, Standardization of Beach Access &Park Signage $ 10,000 8. Parking Study $ 35,000 to 50,000 9. Lifeguard Station Addition $ 50,000 10. Shade Structure at Sunset Pier $ 30,000 11. Digital Lighting at Pedestrian Crossing $ 11,000 12. Sign on Mayport Road $ 3,000 13. Website Enhancements $ 15,500 to 25,000 14. East/West Sidewalks $ 100,000 (included) 15. Low Speed Vehicle $Unknown 16. Post Event Clean up $ 2,000 17. LDR Code Revisions, Map Updates, Allowable Uses a. In-house b. RFP c. Combination 18. Advance Disposal Additional Cost for Recycling-Issue City Manager Van Liere explained this list was prepared based on his notes from the previous budget meeting. He reviewed each item and stated he would like to receive some feedback so he and the Finance Director could provide a revised list for the September 12t1' meeting. Mayor Reeves stated this list of additional items totals $647,940.00. He explained the roll-back rate sounds like a decrease in taxes however property values have increased 9% therefore it is actually an increase in the amount of property taxes paid by the citizens and revenue for the City. He added the City will also have increased revenue from the new golf course properties. He would like to reduce the millage rate from 3.3285 to 3.2285. He felt if the City decreased the millage rate it would offset the amount of a County property tax increase. He asked when the last time the City reduced the millage rate was. City Manager Van Liere responded the last time the City reduced the millage rate was back in 2005. A lengthy discussion ensued regarding reducing the millage rate to 3.2285. Mayor Reeves stated, for the record, this was not a political issue. He asked Commissioners to support him in lowering the millage rate 1/10th of a mill. Mayor Reeves stated the additional list presented by the City Manager added another $647,940 increase in the budget. City Manager Van Liere replied that was incorrect. The $200,000 for pension cost was not an additional budget item. Mayor Reeves stated the additional items now amounted to $447,940 and the Commission needed to debate those items. City Manager Van Liere advised not all of the items would be ongoing. The ongoing items on the list are the additional police officers, recycling, and the additional maintenance worker. The one-time expenses include the upgrade to the lifeguard station, shade structure, signs, and the website enhancement. As City Manager it is his goal to provide the best services, beautify the City and maintain the police force. Discussion ensued regarding the new position of Public Information Officer. Commissioner Stinson explained he provided a handout regarding the history of the City from 2000 to 2017. The handout included data from the Census Bureau,the number of utility customers,the number of employees, and the millage rate from the year 2000 to 2017. The data collected showed the city was providing higher levels of service in 2016 for basically the same amount they were paying in the year 2000. He suggested giving employees a 3% salary increase this year and creating an incentive program for employees to save the City money. August 24, 2016 Budget Workshop Meeting Page 18 of 20 Discussion ensured regarding employees,their salaries and how they could help the City save money. Commissioner Stinson suggested going over the additional 18 items one by one and coming to a consensus. He also asked Commissioners if they would like to add anything to the list. Commissioner Hill questioned if the City was stable enough to reduce the millage rate. He voiced concern regarding the upcoming election and the effect it may have on the economy. When the economy tanked the City relied on the surplus. Once the millage rate is reduced it would be difficult for the City to increase taxes in the future. Commissioner Harding wished there was a way to give employees more than a 3% salary increase because they went five to six years without a raise. He felt reducing the millage rate when the City has increased expenses would be disastrous and he agreed raising taxes in the future would be difficult. He would agree to adopt the budget at the 3.3285 millage rate and have the City create a new employee incentive program at the beginning of the year to help the city save money. City Manager Van Liere advised the City currently has a policy for employee suggestions to help the City save money but he has not received any submissions from employees. Finance Director Caffey explained the funding for items 7, 9, 10, 11 and 12 could come from Special Revenue Funds. Items 8, 13, and 15 are one-time expenses and would not be carried over to the next year. City Manager Van Liere stated he would like to add an item to the list for potential major purchases like the Johnston Island project. Commissioner Hill suggested cutting item 8, parking study, or reducing the amount. He felt the $35,000 to $50,000 was excessive. Item No. 4. Additional Maintenance Worker Consensus: TO NOT HIRE AN ADDITIONAL MAINTENANCE WORKER. Item No. 5. Media Specialist and Citizen Liaison Salary and Benefits Consensus: TO ADD A MEDIA SPECIALIST. Item No. 6. Wi-Fi for all three Community Centers Consensus: TO ADD WI-FI FOR ALL THREE COMMUNITY CENTERS. Item No. 7. Sea Turtle Signage for Education and Awareness and Standardization of all Beach end Signs. Consensus: TO ADD SEA TURTLE SIGNAGE AND STANDARDIZATION OF BEACH END SIGNS. Item No. 8. Parking Study Consensus: TO DELETE THE PARKING STUDY AND FORM A COMMITTEE TO CONDUCT A PARKING STUDY. Item No. 9. Lifeguard Station Upgrade Consensus: TO ADD THE LIFEGUARD STATION UPGRADE. Item No. 10. Shade Structure at Sunset Pier Consensus: TO ADD THE SHADE STRUCTURE AT SUNSET PIER. August 24, 2016 Budget Workshop Meeting Page 19 of 20 Item No. 11. Digital Lighting at Pedestrian Crossing Consensus: TO ADD DIGITAL LIGHTING AT PEDESTRIAN CROSSING. Item No. 12. Sign on Mayport Road Consensus: TO ADD SIGN ON MAYPORT ROAD Item No. 13. Website Enhancements Consensus: TO ADD WEBSITE ENHANCEMENTS USING THE 2015/2016 BUDGET Item No. 14. East/West Sidewalks Consensus: TO ADD THE EAST/WEST SIDEWALKS (INCLUDED IN THE BUDGET). Item No. 15. Low Speed Vehicle Consensus: TO ADD THE LOW SPEED VEHICLE. Item No. 16. Post Event Cleanup. Consensus: TO ADD POST EVENT CLEANUP. Item No. 17. LDR Code Revisions, Map Updates and Allowable Uses. Consensus: TO WAIT UNTIL A PLANNER IS HIRED. Item.No. 18.Advance Disposal Additional Cost for Recycling. Consensus: TO HOLD OFF. Discussion ensued about the storage shed that was in the budget. Consensus: KEEP THE STORAGE SHED. City Manager Van Liere asked for a consensus on the millage rate. The millage is set at 3.3285 which would cover the budget including the additional items approved by consensus. To lower the millage to 3.2285 as suggested by Mayor Reeves would lower revenues by$143,285. Discussion ensued regarding the millage rate. City Manager Van Liere stated Atlantic Beach is a very nice community where people wanted to live. He did not want to decrease the level of services. His goal is to make the City better. He felt a new level of maintenance could make the City top notch. Mayor Reeves stated the City could use reserves to increase maintenance if necessary. Further discussion ensued. City Manager explained on September 12th there will be an ordinance to set the millage rate. He asked for a consensus to set the millage. Consensus: TO REDUCE THE MILLAGE RATE TO 3.2285. Mayor Reeves announced he has asked the City Clerk to advertise a Public Notice for a Roundtable Meeting on September 10`h at 10:00 am. to be held at Adele Grage to discuss open communications with the City Manager and how the City handles citizen complaints. Courtesy of the Floor to Visitors Mayor Reeves opened the Courtesy of the Floor to Visitors. August 24, 2016 Budget Workshop Meeting Page 20 of 20 Chris Jorgensen,92 W. 3rd Street, commented the employees were committed to the City and he appreciated their work. He felt the Public Works Director gave a great presentation tonight. He was disappointed that the answers to Commissioner Stinson's questions were not provided to the Commissioners in time for them to review them prior to the meeting. There being no further comments from the public Mayor Reeves closed the Courtesy of the Floor to Visitors. Adjourn There being no further discussion by the City Commission,the Mayor declared the meeting adjourned at 12:16 pm. Mitchell E. Reeves,Mayor Donna L. Bartle, CMC, City Clerk