Loading...
Minutes 11-15-10 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, NOVEMBER 15, 2010 AT 6:00 P.M. AT THE HESTER CENTER, 1901 N. SEACREST BLVD., BOYNTON BEACH, FLORIDA PRESENT Don Scantlan, Chair Michael Madalena, Vice Chair George Feldman Glenn Jergensen (arrived 6:17 p.rn.) David Madigan Merline Pamplona William Shulman Victoria Castello, Alternate Terry Lonergan, Alternate Kurt Bressner, City Manager Chair Scantlan called the meeting to order at 6:06 p.m. The Recording Secretary called the roll. A quorum was present. Chair Scantlan requested a motion to move Victoria Castello from an alternate to a regular member for the meeting. Motion Mr. Feldman made a motion to move Ms. Castello as a regular voting member. Vice Chair Madalena seconded the motion that unanimously passed. Chair Scantlan advised he would add an announcement to the agenda as Item A and Discussion of the Draft Survey as Item 4.5. A discussion on the Community Redevelopment Agency, their tax base and the funding with Police and Fire and revenues would be heard as Item 4.75. Motion Mr. Shulman moved to approve the agenda as amended. Mr. Feldman seconded the motion. The motion passed unanimously. A. Announcement Chair Scantlan announced, in the interest of disclosure, that he is running for the District IV Commission seat. He advised it would not affect his duties on the Financial Advisory Committee. If elected, he would vacate his position. Should his bid for the Commission seat be unsuccessful, he planned to finish out his term on the Committee. He asked for the support of the Committee and further explained he vacated his seat on another Board because he felt this Committee would put his skills to better use. 1 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 1. Approval of Minutes The following changes were made to the minutes of November 1, 2010: Page 1, the meeting was held in Commission Chambers; Page 3, the third motion, "Ms. Longergan Lonergan volunteered to work on Item 27, the Shopper Hopper."; Page 4, the sentence was changed to read, "and evaluating the sale of Utilities into the County or private sector company, evaluating a . . ."; and Page 4, fifth sentence was changed to read, "franchise for solid waste services, and the at selling of surplus properties." Motion Mr. Madigan moved to approve the minutes. Vice Chair Madalena seconded the motion that passed unanimously. 2. Review of Financial Advisory Board Checklist Kurt Bressner, City Manager, expressed the members downloaded their copies of the checklist. It was noted Glenn Jergensen had not attended several meetings and had not committed to any duties. The members verified their tasks were correctly listed on the sheet. Mr. Bressner also agreed to review the list with the budget Committee. It was possible the Financial Advisory Committee may be presented with a supplemental list. Mr. Feldman inquired once they obtained the information and compiled a report for the Financial Advisory Committee, if it would be added to the agenda Mr. Bressner responded affirmatively and requested the report be forwarded to him the week before the next committee meeting so he could scan it and send it to the members. Mr. Jergensen arrived at 6:17 p.m. Ms. Castello stepped down from voting. Mr. Shulman commented he had been working on the task of Other Revenues and he wondered if he could obtain ideas from other committee members. Mr. Bressner responded Sunshine Laws had to be followed. Accordingly, Mr. Shulman requested any ideas the members had should be brought to the next meeting. He further suggested having an open forum on the topic, which would allow the members to discuss the various issues. Chair Scantlan also commented they could add items to the agenda. At the end of each meeting, the members would have the opportunity to talk about their tasks. There was consensus to do this at the end of each meeting. This item would be discussed in detail as Item 4.85. Chair Scantlan did not want to limit the 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 amount of time for discussion but would move the agenda along. He would try to stick to five minutes. Chair Scantlan reviewed the issues for study. Mr. Jergensen volunteered to study Task No. 46 the Solid Waste Fees and No. 22, Allocation Analysis in Finance. Chair Scantlan had asked Mr. Bressner to go to the Budget Committee to review if there were any items that were not assigned that should be addressed that would have a quick and significant impact. Motion Mr. Shulman moved that Mr. Jergensen be assigned Items 46 and 22. Mr. Feldman seconded the motion that unanimously passed. 3. Presentation of Budget Issues - Boynton Beach Public Works and Engineering Department Christine Roberts, Assistant Director of Public Works, made the presentation. Mr. Bressner noted there had already been a reduction in staff and efficiencies achieved. Ms. Roberts advised she would provide an overview of what the Department is responsible for, the budget and reductions at 15%. This information was contained in her PowerPoint presentation, which is included with the meeting materials. The Administration staffing levels were reduced by a half position. Ms. Roberts' position was funded half by the Administration budget and half by the Solid Waste budget. Solid Waste was an Enterprise Fund. Ms. Roberts was responsible for the operational side of Public Works and the divisions within it. The Engineering Division staff was reduced from 14 to eight and were responsible for plans review of private and public facilities projects and for field inspections. Utilities also inspects underground infrastructure such as sewer and water lines, paving, etc. Facilities Management staff maintains 58 buildings, performs carpentry, custodial, electrical, HVAC work and has oversight of the direct digital control system for City Hall. The Department has a painter for interior services. Private contractors are used for the exterior buildings because it was more cost effective. Facilities Management Division staff was reduced from 26 employees in 2000 to 12 employees in 2010. The reduction reduced response time for repairs and limited assistance to departments. The department provides contract management for custodial services, pest control, mold-testing remediation, elevator services, fire alarms and roof maintenance. The contractor was selected through the bid process, again due to it being more cost effective and they do not have staff trained at 100% to perform roofing work. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 Fleet Maintenance was an Enterprise Fund. The Division is responsible for repair of over 600 pieces of equipment and makes recommendations for new or replacement vehicles. They provide fuel purchase and management. Fueling occurs at the Public Works Compound. Fleet Management was a long-term, 10-year process staff incorporated into their operations. They have a replacement fund for vehicles and each year, monies are deposited into the account. Most vehicles, i.e. squad cars, have a service life of five years; however, some may have a different life contingent on the type of vehicle it was and the frequency of use. A fire engine has a service life of 15 years, and a medic unit has a service life of four to five years due to heavy use. The Fleet plan is designed to fund the replacement at the time the equipment is needed. The Fleet fund does not pay for the initial acquisition of the vehicle. The department pays for it, and a replacement fund for it is subsequently established. Staff and the mechanic determine the life of the vehicle. Prior to the policy for prefunding the vehicles, the City had to come up with large amounts of monies to purchase the vehicles all at once. Resale of the vehicle, once it reached its life span, was accomplished via auction on e- bay and the proceeds from the sale are deposited into the Fleet fund. The model used by the City for this purpose covered expenses, replacement costs and the resale monies. The monies were not significant because the vehicle is beyond its life. The City could delay replacement of the vehicle, but there comes a point when it becomes inefficient. There were already modifications made to the Fleet plan to extend the life of certain vehicles to save money, but there has to be flexibility. The City could purchase vehicles that are extremely efficient, so it was not fiscally prudent to replace them automatically. Staff could make an individual decision to extend or shorten use of the vehicle based on the service history of the vehicle. It is a computerized process. Sale of the vehicles was effectuated through a company that deals with municipalities and there was a cost associated with the transaction. There is approximately $1.5M in the Fleet fund. Maintenance costs are not included in the fleet replacement line item. Departments are charged for fuel and service. The City purchases vehicles in bulk to save money. As to the sale of vehicles from the Police Department, the funds go into the pool. Chair Scantlan thought an Enterprise Fund was a fund comprised of revenues external to the General Fund. Mr. Bressner explained it was actually an internal service fund. The City viewed it as an Enterprise Fund as far as operations. The Fleet Division staffing levels were reduced from 14 employees in 2000 to 11 employees in 2010. The current staff is able to handle servicing the vehicles. Fleet size was reduced since 2006. The Utilities Department had already eliminated one TV truck. Forestry and Grounds provides mowing, trimming and mulching services to about 58 locations. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 A question was raised whether the City could contract with another vendor regarding solid waste to obtain a better price. Ms. Roberts responded they could contract with another vendor for recycling. Bulk and recycling services are provided once a week. Roll-off services had 122 active accounts, usually from construction sites and the materials are recycled. Code Enforcement Officers are responsible for enforcing the Solid Waste Regulations. They work closely with the residents, as there are rules in place as to when garbage could be placed curbside. The City Commission had approved a Code change. The Commission had been requested to develop a way to improve the aesthetics of the City and subsequently, they instituted a new program. If residents do not comply, they are issued a warning. If a repeat offense occurred, they are charged $50. In 2000, there were 52.5 employees in the Solid Waste Division. In 2010, there were 40.5 employees. The reduction was due to changes in operations. The Division used to provide pick-up services four days a week. Now they pick up six days. The Department spread the work out so they could eliminate staff. It also helped to keep the rates low. Ms. Roberts reviewed the issues associated with franchising the Department. The franchise fee must equal the amount of funds transferred into the General Fund, which was $3.4M last year. The Department's accumulated earnings over the year were deposited into the General Fund and were used for other services. The monies also buffered the millage rate. Ms. Roberts commented the Department was very proud of its Customer Service. If a customer called and reported a stop was missed, the truck returned for it. That type of accommodation would likely not continue if the service were franchised. As to the Department's hurricane response, because the Department has staffing in- house, they can control the response. The Department has a contractor that works with them. Ms. Robert's noted Boynton Beach was one of the first cities to clean up debris from Hurricane Wilma. They removed the debris within four days. As to enforcing the Code requirements, if the service were franchised, it was unknown if the new operator would want to enforce the Code requirements. Consequently, the question remained if they should they keep the Code Officer. Another consideration in deciding whether to franchise the service was the rates. Currently, a residential customer pays $14 per month and multi family is $10.71 per month. It was unknown if the same rates would be used if the service was sold. Street Maintenance repairs the streets and potholes for 254 miles of roadway. They perform minor sidewalk repairs, handle all the signage for the City, and provide street sweeping services which prevents debris from collecting in the storm drains. They also conduct traffic counts. In 2007 there were 12 employees. They now have three. The Department participates in City activities such as the Holiday Parade, the 4th of July, 5 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 and the Heritage Festival. During emergencies, they managed staff operations, distributed ice, and handled contractual debris collection. In 2007, the Street Maintenance Supervisor left the City. Staff then combined Street Maintenance with the Forestry and Grounds division on a temporary basis. It worked very well. Street Maintenance can manage with four employees because they can take other employees from Forestry and Grounds to help when needed. The downside of reduced staff was delayed responses and smaller jobs. The larger jobs are handled through the Engineering Division. The Department was considering instituting a future neighborhood litter/trash collection that could have a shared cost versus an individual cost. The frequency of trash pickup would determine whether the service would be proactive versus reactive. All signs must conform to the Municipal Uniform Traffic Control Device (MUTCD) regulations, including retro-reflectivity and the Department removes unnecessary signs. By 2018, all retro-reflective signs must be replaced which would require new material. The Department prepares many parking and stop signs in-house and they recycle signs and posts. A question was raised if it was better to hire an outside firm. Ms. Roberts responded they had to review different factors. The Public Works Department analyzes all costs and services both in-house and with outside vendors before deciding which service to use. Through the years, they have blended both types of services. Another challenge was the long-term street maintenance, which was handled in the Engineering Division. Current maintenance is surface only, and the Division was reviewing future curb and gutter replacement and future base replacement. They had used mirco-surfacing in the past. Another challenge was building maintenance. The maintenance standards for newer facilities are different which would add more cost if more buildings are acquired. The current buildings are old and aging. One example was the chiller towers at City Hall. They were made out of wood and were rotting. Discussion returned to recycling. The Department wants to expand recycling and work with the County Solid Waste Department. A State mandate required a 40% reduction of what goes to the landfill. The City Commission approved a service agreement where they would transfer the bulk trash and all the roll-off material to Sun Recyling, Inc., which would provide a savings. By the year 2020, a 70 - 75% reduction in certain materials going to a landfill would need to occur. Expanding a recycling program would conserve resources and maintain reasonable collection fees. 6 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 Ms. Roberts reviewed the budget without including Fleet or Solid Waste. They were working with FP&L on street lighting and found some discrepancies. It was hoped a credit would be forthcoming. Vice Chair Madalena inquired if any studies were done regarding how reducing or eliminating streetlights affected crime. He noted not all communities have streetlights or have them on all the time. Another possible reduction was to eliminate street sweeping services. Ms. Roberts explained they could eliminate one employee and one vehicle but it would risk drainage clogs. Median maintenance was at $550,000, but if maintenance was reduced, they would have to pick and choose which medians to service. The elimination of lights would total $580K which was the amount paid to FP&L each year. Some areas could have lighting reduced, or neighborhoods could "Adopt a Street." Mr. Sressner explained FP&L's rate structure was a flat rate and there was no incentive for FP&L to use a higher efficiency bulb. The rate structure does not provide any type of a cost savings to pass on to the customer. This mindset is widespread with public utilities throughout the U.S. The City pays an industrial rate for electric usage. The Department could reduce garbage pickup to one day a week, eliminate recycling and reduce bulk pickup to one day per month. There was discussion bulk recycling was more efficient than curbside recycling. The issue was whether the County had the capability to separate and handle the recycling materials, or their operating costs will increase to handle the separating costs at the transfer station. The cost would be passed on to the City. The non ad-valorem fee covered a portion of those operational expenses. If the City took the lead on the initiative, it would be very unpopular, but it was thought other municipalities would follow. It was suggested staff research this issue. Mr. Sressner explained over the last 20 years, they have been educating youth to separate the items and this was a major shift, which could be an extremely volatile issue. Discussion followed this topic could be added to the survey. The City receives revenues from the Solid Waste Authority for the sale of the recycled materials as well as from other solid waste vendors for items such as corrugated materials. Mr. Feldman left the meeting at 7:24 p.m. Ms. Pamplona left the meeting at 7:27 p.m. Mr. Feldman returned to the meeting at 7:28 p.m. If the recycling program were discontinued, three employees and four trucks would be eliminated. If all City departments reduced their fleet size, the Fleet Maintenance Division could reduce its budget commensurately. Other options were to close buildings, cut Forestry and Grounds services as well as Facilities and Custodial Services. Adding buildings would increase costs. 7 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 Ms. Pamplona returned at 7:29 p.m. Ms. Roberts had a listing of the buildings the City maintains. Selling City properties could eliminate mowing charges. Discussion turned to downsizing buildings or consolidation. Mr. Bressner responded there has been some consolidation at the shuffleboard area by the Code Compliance office. The Civic Center has many programs, and if they could be moved somewhere else, that building could be sold. The City added the Sims Center and others. The City was responsible to meet the Code in maintaining its properties Computer Aided Drawings (CAD) services are provided through the Geographic Information Systems (GIS) Department. Chair Scantlan inquired if there was data to show what contracting costs might have been from 2010 if staff was reduced and work outsourced to a temporary agency, or if it is smart to eliminate staff. Ms. Roberts responded the data could be compiled but it would take time. Chair Scantlan inquired how to have exotic trees removed. Ms. Roberts responded they already are being removed. Should anyone have any questions, they should contact Glenda Hall. On a different matter, two barricades were on Cedar Circle that could be removed. Chair Scantlan thanked Ms. Roberts for the presentation. The Board recessed for a short break at 7:35 p.m. The meeting reconvened at 7:41 p.m. 4. Presentation of Budget Issues - Parks and Recreation Department Wally Majors, Recreation and Parks Director introduced Jody Rivers, Parks Superintendent and Sherri Claude, Assistant to the Director. Mr. Majors reviewed a PowerPoint presentation, the role of Recreation and Parks and how the Department can increase the tax base. He commented they attract residents to the City through marketing. Mr. Majors reported the Recreation and Parks Department provides between 95 and 105 free lunches at the Senior Center. Since the Denson Pool opened, over 2,200 youth received swimming lessons. Florida leads the nation in drowning with African- Americans being three times more likely to drown. Through stimulus funds for the swimming program, some of the participants became certified lifeguards. Boynton Beach Blazers swim team use the pool to compete on a semi-skilled basis. Teenagers were also a critical age group in the community. The Department was an active partner with the Department of Justice and has the Youth Violence Prevention Program available to at-risk youth. Youth that are not engaged in an activity are more likely to become delinquent. 8 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 The Boynton Beach Bulldogs play at the Hester Center. Jaycee Park is the most current park project. Jaycee Park and Oceanfront Park are examples of parks that made Boynton Beach unique. The City recently added a pier to Boat Club Park providing for fishing and launching capabilities. Ms. Rivers explained the Recreation and Parks Department has seven community centers. Over 200 programs are offered each year, including life skills, preschool education and many other activities for all ages. They operate 28 developed parks allowing residents to walk to nearby parks, playgrounds, picnic areas and basketball courts. There are community parks, the tennis center, conservation parklands and the greenway/bikeway. It was noted the Golf Course was not part of the Recreation and Parks Department based on the recommendation of the Golf Course Advisory Committee. The Department was nationally accredited. They conform to 155 different standards that have provided for an efficient Recreation and Parks Department. Accreditation occurs every five years. There is an application fee and an annual fee of $1,100. This assures best practices are adhered to and further signified they were working as efficiently as possible. It did not guarantee grants but it looks good on a grant application. Ms. Lonergan inquired about the Shopper Hopper offered through the Department and the cost. The service was available to anyone for $1 per trip and seniors, aged 62 and over pay a reduced fee of fifty cents each way. Businesses profit from the service, but do not contribute to the cost of running the service although they pay for advertising on the side of the vehicle. There is a fixed-route available based on historical use, which is restructured from time to time. The Department can generally accommodate requests as long as they receive 24 hours notice. The Shopper Hopper is funded by the Gas Tax and the end user. The operating budget for the Shopper Hopper is $232,000 of which $189,000 is used for personnel. The revenue generated for the fiscal year 2009/2010 was $26,074. Eighty- six percent of the operating expenses were paid for from the Gas Tax. Maintenance of the vehicles occurs in-house. When the Department inherited the transportation service, the return on investment was low. Staff recommended elimination of the program for the last three years, but it has not occurred. The City received the transit coaches through federal funding which trickled down through the County. There were 16,518 riders on the Shopper Hopper from February 2009 through January of 2010. The service transported 9,442 individuals from the Senior Center, 24,082 individuals after school and 12,528 for special fieldtrips and events. The service transported about 65,570 riders in one year's time. Operation of Molly's Trolley in the CRA area was not within the Department's mandate. There was discussion that residents showed up, en mass, to support the trolley. The Attorney General Opinion indicated it was not a proper CRA function. 9 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 Chair Scantlan commented the Shopper Hopper issue brought more people into City Hall than any other issue. There was a question whether any consideration was given to turning Boat Club Park over to a private enterprise. A building leased to the Florida Fishing Academy located at the park offered the potential to bring in revenue. As to rental fees, Mr. Majors responded there was a person interested in the bait shop, at Boat Club Park but staff wanted the building to be used for an educational purpose and the City Commission allowed the Florida Fishing Academy to locate there. The City Commission felt because there were other bait shops in the area, it would create an unfair advantage to one entity. Mr. Feldman inquired if using the building for a bait shop could be revisited and it was noted the issue would have to be actively lobbied. There was a fee to launch a boat. Last year parking generated almost $66K. The City received funding from the County to expand the number of parking spaces; however, the funding restricted the City's ability to charge more for non-city residents to park. The City has a partnership with the Coast Guard Auxiliary. Additionally, due to auditing concerns, the Department does not use volunteers to collect any monies. Some effort was made to automate parking at the parks. It was noted other cities use an automated system. In response to a question, the only item paid for by the Community Redevelopment Agency was the master plan for Sara Sims Park. Vice Chair Madalena inquired how the fee structure compared to other cities. Mr. Majors responded the service was one of the least expensive within the County. The Department, as part of the accreditation process, is required to have a strategic plan for long-term goals. The first plan was developed five years ago and it is a fluid flexible, plan. Recreation and parks touches every aspect of peoples' lives and provides for environmental sustainability, social well being, and economic development. These were the potential benefits of an effective parks and recreation system. Staff was updating the plan to include new sustainability points. The City Commission accepted a Climate Action Plan, which speaks to the City's values and decreased its carbon footprint. Parks and recreation has an economic impact of $32 billion every year and the American Planning Association has proven the closer a home is to a park, the higher the value of the home. The cost per capita for recreation and parks compared to surrounding municipalities reflected Boynton Beach was the lowest and was half the cost of the second lowest municipality. A cost recovery pyramid as contained in the presentation materials was reviewed. Staff also reviewed the different partnerships they had. The Department has several capital improvement projects ongoing. The Department received 38 grants since 2001 exclusive of Police Athletic League Grants and the Criminal Justice Commission grants. 10 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 The budget was $4,837,982 and the effect of a 15% reduction was reviewed. If reductions are required, staff will be eliminated. Mr. Majors agreed they needed to increase revenues. Staff analyzed the fee structure on an annual basis and raised fees on about 80% to 85% of their programs. The sale of beach decals has declined each time the City raised the rates and staff tries to be careful about the market they serve. As it pertained to beach decals, the trend was to pay the daily fee. As to rental rates, the facilities rented the most were the Intracoastal Park Clubhouse, followed by the Sims Center. Vice Chair Madalena inquired about the Barrier Free All Ability Park. Ms. Rivers explained a bid was published and responses were due on September 7th. Funds are earmarked for it and park impact fee funds would be used. Ms. Pamplona inquired about senior meals. Mr. Majors responded they were provided through a state-funded program. Fanfare Magazine was accessible online and staff reduced the number of copies they printed. Staff only mailed it to those who requested it. Discussion returned to the Barrier Free Park, which would be constructed through a multi-phased process. The cost for the full phase was about $10M. There was a Foundation formed that will take this on as their first park project and fundraise for it. It was noted Boynton Beach was the first municipality in Florida to use this method. The Foundation was a 501 (C)(3) corporation. There were no further questions on the presentation. 4.5 Draft Survey Chair Scantlan had a list of questions for the survey that were disseminated in October. He commented there was some redundancy. Mr. Bressner explained there was a limitation for the free survey monkey and a limit on the number of responses. He inquired if it could be opened up for more questions and responses and for other departments to use. Discussion followed about having the survey online. Mr. Bressner responded it could be done either way and he would provide further information within a few weeks. 4.75 Community Redevelopment Agency, Tax Base and the funding with Police and Fire and revenues discussion. This item was deferred to the next meeting. Chair Scantlan noted the next day was a City Commission meeting and he invited the members to attend. 4.85 Open Forum This item was deferred to the next meeting. 11 Meeting Minutes Financial Advisory Committee Boynton Beach, FL November 15, 2010 5. Tour of Hester Center. The Hester Center tour would take place immediately after the meeting. 6. Adjournment Motion Mr. Feldman moved to adjourn. Mr. Madigan seconded the motion that unanimously passed. The meeting adjourned at 8:50 p.m. dCUlt/u,1UL (2ls;JllJ__ Catherine Cherry ,- - - -0- Recording Secretary 12/06/10 12