Loading...
Minutes 08-31-10 Special MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, AT 6:30 P.M., ON TUESDAY, AUGUST 31,2010 PRESENT: Jose Rodriguez, Mayor Marlene Ross, Vice Mayor William Grlove, Commissioner Woodrow L. Hay, Commissioner Steven Holzman, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk This meeting was convened by Mayor Rodriguez at 6:44 p.m. following a Special Community Redevelopment Agency Board meeting. 1. DISCUSS AND REVIEW OF CRA APPLICATION PROCESS Mayor Rodriguez acknowledged there was a request by Board members to discuss the process at this meeting. Mr. Bressner framed the issue. The previous week, the Commission had interviewed six candidates and subsequently one of the candidates, Patrick McNamara, withdrew from consideration. Mr. McNamara's current employer felt it could potentially pose a conflict of interest. Four more candidates would be interviewed on September 7, 2010. Direction was sought if anyone else on the list of candidates should be contacted for an interview. Commissioner Grlove advised he contacted the City Manager and suggested the next person on the list of candidates be called to continue with ten interviewees. Vice Mayor Ross agreed and advised she had inquired of the City Manager also. Mayor Rodriguez and Commissioner Hay concurred. Mayor Rodriguez cautioned going further down the list may result in not getting the applicants needed. Vice Mayor Ross inquired if the next candidate down on the list should be contacted if Mr. Grosh was not available. Mayor Rodriguez would not agree to go below the designated threshold for the rankings. Vice Mayor Ross noted the next two candidates had scored about the same. Commissioner Hay indicated there remained great candidates on the list. Commissioner Grlove emphasized the consensus was to contact Mr. Grosh. As a Board, it was agreed to interview the top ten candidates. The fact that two candidates had dropped out was not the Commission's fault. 1 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31, 2010 2. CONTINUED REVIEW AND DISCUSSION OF 2010-11 PROPOSED CITY OF BOYNTON BEACH BUDGET Mr. Bressner noted there were issues with the General Fund set aside during discussions in the budget for further consideration by the Commission. The expense items included the Shopper Hopper program with two components. One is the bus operation that costs $200,000 and $17,000 of advertising revenue. If the program is restored, both those items would need to be funded in the General Fund at $217,000. There were also seven records technician positions and a supervisor in the Police Department who would be eliminated from the budget. There had been discussion that two to four of the individuals would be considered for restoration. The $156,000 represented the salary and benefits for three individuals. After the budget hearings, the Police Athletic League Officer Tome is scheduled to retire and Chief Immler felt the program could continue without replacing Officer Tome and utilizing the two part-time assigned offic,ers. Officer Tome agreed to volunteer with the programs. The savings would be approximately $108,000. The restoration of the four Community Service Officers (CSO) is another item that had decreased from the proposed eight job cuts. Inward movement had resulted in the placement of four of those CSOs into the regular patrol unit. The Commission had discussed restoring four of the positions. As a result, there would be no reduction of CSOs. The animal control division had been recommended to be furloughed and operations transferred to Palm Beach County. The Commission discussed ascertaining if the animal cruelty investigation component would continue to go forward; but the collection and housing of animals would be handled by the County. If so, the cost would be approximately $75,352 to have that position and equipment funded. The next position was a Code Compliance Officer that was proposed to be restored. Bids taken last week for custodial services revealed if the Commission selects the first or second bidder with a 10% contingency, it would save $88.000 over the estimated contracted costs. It would result in eliminating the three individuals employed by the City as originally recommended. Vice Mayor Ross asked if the vendor would be willing to interview the City's employees being terminated. Mr. Bressner was willing to discuss such an arrangement. It would be $88,000 over the $200,000 figure. Jeff Livergood, Director of Public Works and Engineering, indicated $395,000 had been placed in the budget for custodial services and the suggested change would represent a savings of $88,000 over the amount. Three jobs would be lost. Mr. Bressner pointed out the original recommendation was to outsource the program and reduce the three positions. Mayor Rodriguez stressed the savings was good. 2 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31, 2010 The added transfer from the Capital Improvement Program was agreed upon. The next item would be to restore the City Manager's travel expenses to his national conference. Mr. Bressner had personally paid the necessary fees. The Child Care Center proposal was to reduce the subsidy by $5,000. The General Fund savings on the Voluntary Separation Program would be $171,000. It represents the cost savings of positions not filled or authorized at a lower rate. The net savings to the City would be $280,000. The General Fund share would be $171,000. The accountant position in the Finance Department was reinstated based on Mr. Bressner's recommendation for internal control. The storekeeper position in the warehouse was shared, with 70% budgeted to the General Fund for $17,950. Given the volume of work in the warehouse, Mr. Bressner had recommended the position be maintained. The YVPP program is budgeted at $75,000 and considered a 50/50 match with the County assuming the other half for a total program value of $150,000. If the County did not assume half of the cost, a slimmed-down program could be run with the $75,000 and would retain the YVPP Coordinator position. The three firefighter positions were created from two individuals leaving as part of the DROP and a third position had been vacant since February. The recommendation was to eliminate those three positions. The Commission wanted additional information. There is a cost efficiency realized when training is given for at least three positions at one time. Commissioner Hay inquired if the 6% reduction could have been realized if the one position had been filled and Mr. Bressner replied the threshold reduction would not have been met. The net effect would be $150,000 because, if restored, it would take two to three months to do the recruitment. Mr. Bressner continued with the three-year suspension of the deferred compensation that had been discussed at the last meeting and had a value of $120,560. The remaining figure was the $2.1 million that is pending negotiations with the Police and Fire unions whether they would consent to a salary freeze. Mayor Rodriguez shared his proposed budget. He thanked the City Manager, Director of Finance and Budget Team for the work they did preparing the budget and was proud of the work done. The Mayor's proposed budget would retain the current tax rate. It also included restoring the Shopper Hopper, no furlough days, no across the board salary reductions, restore the four CSO positions, restore three records technicians and blend automation as a transition, add the animal cruelty investigator and turn over 3 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31, 2010 animal control to the County. The citizens are already paying for the service from the County and not getting any benefit. The animal cruelty investigator would manage the animal issues across the City. Restoring Code Compliance is critical to the City's appearance, and slowly transitioning the Child Care Center to assist them in generating their own revenue stream is necessary. The accountant position would be restored in Finance as well as the storekeeper position in the warehouse. His proposal included continuing the $75,000 for the YVPP and the fleet adjustment maintained at a 25% deferral. The firefighters would be restored to current levels resulting in two positions being filled. There has been agreement on the suspension for three years of the deferred compensation. Mayor Rodriguez's proposal requested the Commission hold the proceeds of the traffic fund for a new police station and City Hall. It would be new found money that could be held for a specific purpose. His proposal also suspended the tuition reimbursement program on an annual basis for a $55,000 savings. The CRA Human Resources support would add $10,000 to the General Fund. Also on September 21, 2010 there would be a discussion on the tow truck contract and there is potential for added revenue. The proposal would balance the budget with $52,000 surplus and not increase the taxes, set aside money from the red light cameras, restore the police department, restore the firefighters to current levels, create an animal cruelty officer position, restore the Code Compliance officer with a margin of $52,000. There would be no impact to the citizens, although some may have to pay higher taxes. Commissioner Holzman inquired about the bus shelter advertising mentioned by Mr. Bressner. He replied it would be a revenue that was originally in the transportation fund. If the Shopper Hopper was dissolved, those funds would go back to the General Fund to be balanced against the trolley monies from the CRA, still resulting in a deduction from the General Fund. Commissioner Holzman agreed the Shopper Hopper should be restored, but disagreed with the Mayor's proposal for no furlough days, as well as the across the board salary reduction. Both of those reductions should be implemented to some extent in anticipation of future depletion of tax revenues. He proposed the salary reductions should be graduated for those earning larger salaries. Mayor Rodriguez interjected he had suggested that a salary reduction for those making over $100,000 may be appropriate. There are 100 employees in that bracket with 77% of those being fire and police that would require union negotiations. Commissioner Holzman agreed and argued it should be a collective bargaining tool. The three records technicians should also be restored and speculated the addition of an animal cruelty officer could be offset by the loss of the CSOs. The animal cruelty cases can be investigated by the police officers. The citizens pay for animal control services from their County assessment and receive no services from the County. 4 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 Commissioner Holzman agreed with the figure for the Child Care Center to reduce the subsidy and agreed with restoring the accountant is important for internal control and the City as a whole. The YVPP is important to the youth and the City. Restoring the two firefighters and the three-year suspension of the deferred compensation was also appropriate. The reservation of the red light camera funds for a new city hall and police station was a great idea, but the amount of monies at this time was unknown. It would be irresponsible for the Commission to speculate on the revenue stream for the General Fund at this time. With an eye towards the future, Commissioner Holzman felt it was necessary that the tax rate be increased to 7.0 mills. Most individuals in the City would not receive a tax hike. In terms of the tax base, it was determined 25% to 30% would be commercial and industrial. A slight tax hike would result in tax reduction for most homeowners. At the same time, the hike would provide the City with some cushion for next year's budget. An excessive increase next year to provide the simplest of services would be more injurious than a slight tax rate this year. Mr. Bressner informed the audience a tax study had been done comparing 69 random parcels, of all types, in all quadrants of the community. The taxable value for commercial and industrial properties would experience another significant reduction that may continue in the following year. With a 7.0 millage rate, only five of the 69 parcels would see a tax increase. At the 7.2 millage rate, 17 of the 69 parcels would experience a tax increase. For single family and condos, the increases were generally under $100. Commissioner Hay agreed with Commissioner Holzman that the Commission needed to be realistic about the minimal, if any, impact on the taxpayers and the services provided. Hopefully, the justification for a slight millage increase can be explained and justified to the residents. Commissioner Hay's concern with the Mayor's proposal was that staff had not been consulted to address the union's position. Mayor Rodriguez contended his proposal had been discussed for several months. Commissioner Hay did not agree with turning animal control over to the County since Boynton Beach has had issues with animal cruelty and dog fighting. The County animal control has cut staff from their animal control division offering even less coverage. The statistics indicate Boynton Beach has more cases than other municipalities and the health and safety of the citizens has to be considered. In regards to the traffic funds being reserved for building, Commissioner Hay felt the focus should be on saving jobs and the needs of the people rather than focus on buildings. Commissioner Orlove had not changed his previous position. He was in favor of considering furlough days and keeping three additional records techs in the Police Department for a total of six. Although automation is important, the record techs deal with people in crisis and emergency situations and an automated system would not assist the citizens with emergencies. The Police Department could lose their 5 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 accreditation that should be maintained. Commissioner Orlove retracted his previous position on the animal cruelty investigator and wanted to keep the investigator on staff; however, it would remain under the Police Department and the control division be deleted. He felt the three vacant positions in the Fire Department should be filled. On the issue of the millage rate, Commissioner Orlove reminded the Commission the value of property in the City had gone down 60%. Next year's situation could be very tentative also. His proposed budget would establish a cushion of about $1 million with a rate of 7.2 mills. Mayor Rodriguez pointed out the records techs in the Police Department do not take 9- 1-1 calls dealing with crisis. He also did not recall Chief Immler indicating accreditation would be lost if less record techs were utilized and automation initiated. Chief Immler reported accreditation had just been achieved. Any significant change in the Department had to be reported to the Accreditation Commission. He did not know if the accreditation would be jeopardized with less record techs. Chief Immler reiterated the Department could function with the recommendations that had been submitted in his budget. The elimination of the PALS position would allow for restoring the other three techs. The preference would be to keep all six records techs. Accreditation was not the reason to keep the positions filled; rather it was customer service that will suffer the most from the loss. There is a walk-in trade at the Police Department that includes residents and business owners. Commissioner Orlove understood the records techs were customer service oriented and dealt with the public that would have to be replaced with sworn, duty officers to assist. Chief Immler stressed that was exactly the issue that would arise. Chief Immler pointed out there would never be enough police officers, but the department can operate efficiently by controlling the work load; the 9-1-1 calls. The records clerks handle what would normally be a 9-1-1 call if a resident can't get service at the desk or on the telephone and an officer would be dispatched. For customer service, the records clerks are critical in controlling the work load as were the Community Service Officers. Mayor Rodriguez confirmed the techs primarily work Monday through Friday, nine to five. He stressed the Chief had recommended eliminating seven of the positions. The automation implemented would offer some return on the investment using the accident system and the crash reports and police reports made available online. Chief Immler noted 70,000 calls for service a year were handled and it would continue to increase. A mandated 6% reduction could only be achieved with the reduction in staff. Vice Mayor Ross thought it was important to keep public safety in tact and restore all positions and she strongly advocated for retaining animal care and control that includes public safety. As of July 151 the County discontinued the practice of picking up dead or injured animals. The City could not rely on the County for that service. Vice Mayor Ross agreed the Code Compliance Officer should be restored to maintain the appearance of the City. She also supported restoring the three firefighter positions and maintaining the 6.7 millage rate. Furlough days were an option she wanted to discuss, 6 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 as well as the Shopper Hopper system and the red light camera traffic fund dollars. Commissioner Hay confirmed he did not want to set aside the $600,000. Commissioner Holzman wanted it clear there was no actual money and could be a significantly higher or lower amount in actuality. Mayor Rodriguez summarized that he and Commissioner Holzman wanted to hold the money aside. Commissioner Orlove repeated his suggestion of having a workshop on the Police Station, Old High School and City Hall and was not in favor of holding the money for those buildings. Mayor Rodriguez noted planning for next year had been discussed in conjunction with the tax rate and setting the monies aside was simply planning for redevelopment of the downtown. If the money is allocated in the budget, it will never be used for future redevelopment purposes. The money can be put into the budget if it is not used for the intended purpose. Commissioner Orlove disagreed and stressed his budget would provide a surplus of $1 million. The Commission has not discussed their intentions for the Old High School, Police Station and City Hall. Appropriating funds at this time would be pre-mature. The only changes to Commissioner Orlove's budget previously submitted included the addition of the animal cruelty investigator and restoring the Code Compliance Officer, storekeeper and accountant positions. The surplus would be approximately $1 million or $900,000 with a tax rate of 7.2 mills and would include furlough days. Mayor Rodriguez summarized that Commissioner Orlove's proposal increased the tax rate, mandated every employee to take five furlough days at all levels and 25% of the residents would experience a tax increase. Commissioner Orlove emphasized the majority of residents would not pay more in taxes. He stressed the need for available monies in the next budget cycle. Recognizing the fact many residents are struggling to survive, even a $10 increase would mean foreclosure to many. Why should a homeowner have to pay more in taxes when their taxable value has decreased by 32% over the last two years? Commissioner Orlove was willing to concede furlough days for certain employees based on their salary with further discussion. Other cities have initiated furlough days for employees. Mayor Rodriguez commented the City Manager has been directed to run the City as effectively and efficiently as possible. Each job has to be evaluated whether it is a productive job for the benefit of the citizens and not to protect jobs based on personal relationships or fear of layoffs. DISCUSSION OF GENERAL FUND RECAP SUMMARY "WISHLlST" A) COMPARATIVE PROPERTY TAX STUDY Each item on the "wishlist" was polled for consensus. Sharyn Goebelt, Human Resource Director, advised her department was working with the employees being laid 7 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 off to determine if other opportunities may be available if they meet the requirements of any new position. There was consensus to restore four Community Service Officer positions, three record technician positions, a Code Compliance Officer, the accountant position, storekeeper, YVPP monies and three firefighters. There was also consensus to create the animal cruelty investigator position and eliminate the animal control division at this point. The $5,000 reduction in the subsidy to the Child Care Center was approved. The deletion of reimbursement for the City Manager's conference expenses was agreed upon. The voluntary separation monies were good as well as the fleet adjustment at $205,827. Fire Chief Bingham advised the savings on the firefighters could be brought back to $145,000. The deferred compensation savings would be included. Mr. Bressner explained the $314,000 represents an estimate in the General Fund for furloughs for all personnel in the General Fund, except police and fire and that would be from the lowest paid to the highest paid. There was also a similar plan in the Utility Department as well that has not been calculated. Proposed language has been sent to the Blue and White Collar unions encompassing furlough days. The only issue on the table for discussion with police and fire was the retro-salary. If the furloughs are restricted to classes of employees based on salary, the figure may change. Mayor Rodriguez questioned if every employee could be furloughed for five days, how could the City be performing at optimal level now. Mr. Bressner did not feel that was a fair statement. The program could be structured over the holidays and shut down the facilities for one day a month. Mayor Rodriguez wanted an impact analysis on how it can potentially be done and minimize the impact to the citizens that rely on the City for services. Mr. Bressner replied rolling furloughs would have to be utilized. Commissioner Orlove asked if City Hall experiences less customer or citizen interaction the day before Thanksgiving, the day before Christmas Eve or New Year's Eve day may be amenable for staff and the citizens and would not impact the efficiency of the City and services. Mayor Rodriguez asserted most of staff utilizes vacation at that time and whether it is vacation or furlough the employee would be absent. Commissioner Orlove mentioned many cities around the nation are mandating furlough days and staff has indicated they would be willing to discuss the issue. Mayor Rodriguez wanted more data from the City Manager on the impact and how it could be done. Mr. Bressner advised he recommended furloughs in conjunction with other holidays so the impact would be minimized and the facility shut down. Mayor Rodriguez argued if vacation days were not utilized and furlough days required, the impact on service would simply shift to when the vacation days were taken. Commissioner Orlove disagreed and speculated department heads could require staggering of time off to maintain office efficiencies. There was consensus to do at least three days before holidays and possibly two rolling furloughs. Mr. Atwood cautioned by taking three days at the holidays it would result in pay checks being smaller after the holidays when expenses for the employee are the greatest. The 8 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 rolling furloughs would curb the loss. Mr. Bressner stressed rolling furloughs would mean no cost savings with facilities open as usual. Commissioner Orlove requested further data on the financial impact of the suggested furloughs at the holidays and two rolling days and the difference if certain pay scales were exempt or a tiered approach excluding police and fire were utilized. Mayor Rodriguez inquired how many jobs would be saved in direct correlation to the furloughs. He surmised it would be none and every employee would be hurt. Commissioner Holzman disagreed and contended the correlation of all the decisions with the jobs saved had to be the focus rather than one line item at a time. He felt the comment was disingenuous. Mayor Rodriguez thought it was the reality of impacting every employee of the City. Moving forward on the issue of the Shopper Hopper, Commissioner Orlove asked for a status on the melding of the trolley and Shopper Hopper. Commissioner Orlove indicated he was in favor of a transportation system that would be funded by the riders by some payment system rather than a free trolley. Mr. Bressner was unable to find a way to join two totally different systems that were not compatible in any way. Commissioner Orlove pointed out the City already had vehicles as opposed to the trolley that is through a vendor. Mr. Bressner stressed the operating expenses were $217,000. Commissioner Orlove suggested the system had to be more cost effective and the burden placed on the riders. Wally Majors, Director of Recreation and Parks, explained, Monday the Shopper Hopper is more of an exclusive type of service. There are eight points of interest on the typical route. Mr. Bressner interjected the revenue from the Shopper Hopper is abysmal. Doubling the current rate would result in an increase in revenue of $10,000. Suspending the trolley may result in increased ridership on the Shopper Hopper. Mr. Atwood explained the Shopper Hopper revenue is in a separate fund that would be cashed out and the annual subsidy of $200,000 would be returned to the General Fund. The $17,000 was residual revenue from the bus shelters that would also go to the General Fund. Mr. Bressner advised if the Shopper Hopper was restored, the $270,000 would have to be taken from the General Fund and put back to the transportation fund. At this point, the budget had a surplus of $53,000 without the furloughs or increasing the millage rate. Commissioner Orlove reiterated his desire to have a bigger cushion going into the 2011/12 budget. Mayor Rodriguez noted the $7 million emergency funds had not been utilized either. A budget should balance out to zero. Commissioner Holzman disagreed totally and stressed the revenue would be decreasing next year. Commissioner Holzman and Hay agreed a larger contingency amount of at least $1 million should be budgeted. Mr. Bressner suggested a resolution could be adopted increasing the contingency if 7.0 mills were adopted for the $1 million restricted to the reserve and not accessible. Commissioner Holzman emphasized the predicted revenues could be less than 9 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31, 2010 anticipated and the $1 million reserve would provide for contingencies without using the emergency funds. Mayor Rodriguez suggested the City Manager's expenses be added back into the budget and there was consensus to do so. Mr. Bressner added any decision on furloughs would be added to the reserve. Commissioner Ross wanted the millage rate to remain the same eliminating the $1 million reserve. Commissioner Hay had reservation about raising the millage rate. He understood what had been decided and the small impact on a few. With the overall picture in mind, he agreed with the 7.0 millage. Commissioner Orlove agreed with the 7.0 rate. Mr. Atwood noted at 7.0 mills the reserve would be $836,000. Motion Commissioner Orlove moved to lower the millage rate to 7.0. Commissioners Hay and Holzman seconded the motion. Attorney Cherof explained the motion would have no legal effect. The proposed budget was being discussed and two public hearings remain. One rate has already been advertised. No official action can be taken until after the first public hearing. Commissioner Orlove withdrew his motion and stated there was consensus to move forward with the budget being at a 7.0 millage rate going into the first budget hearing on September 13, 2010. Mr. Bressner questioned if the traffic fund should be discussed and it was decided to leave the monies, if any, in a separate fund. Commissioner Hay wanted to revisit restoring the neighborhood specialist position. The community was crying out for her retention with many phone calls. Mayor Rodriguez advised he had been given a figure of $68,000 for the position and he believed it was a critical position to support the community. Vice Mayor Ross and Commissioner Orlove agreed. Mayor Rodriguez thanked the staff and Commissioners for their efforts. It was a challenging task with strong opinions and feelings on the budget. There being no further business to come before the Commission, Mayor Rodriguez properly adjourned the meeting at 8:51 p.m. (Continued on next page) 10 Meeting Minutes Special City Commission Meeting Boynton Beach, FL August 31,2010 CITY OF BOYNTON BEACH ATTEST: ........, -' . .//',. ,",/- , '. " .~~-, '." "~".",, / SteSeh'HOI~m~fl': Cd~~i4r 11