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Minutes 10-04-10 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, OCTOBER 4, 2010 AT 6:30 P.M. AT FIRE STATION #5, 2080 HIGH RIDGE ROAD, BOYNTON BEACH, FLORIDA PRESENT Don Scantlan, Chair Barry Atwood, Finance Director Michael Madalena, Vice Chair George Feldman David Madigan Merline Pamplona William Shulman Victoria Castello, Alternate Terry Lonergan, Alternate ABSENT Glenn Jergensen Chair Scantlan called the meeting to order at 5:58 p.m. 1. Roll Call Roll call was completed and revealed those present as indicated above. Motion Mr. Shulman moved to move Terry Lonergan, alternate member to a regular member status for the meeting. Mr. Madigan seconded the motion. The motion passed unanimously. Motion Mr. Madalena moved to amend the agenda for the presentation by Chief Bingham to go first. Ms. Lonergan seconded the motion. The motion passed unanimously. 4. Presentation of Boynton Beach Fire-Rescue Operations and Budget Chief William Bingham, Director of Fire and Emergency Medical Services, introduced his staff: Deputy Chief Ray Carter, in charge of Operations; Amy McDeavitt, in charge of Administration and Finance and Steve Lewis, in charge of Emergency Management, Community Relations Specialist and Public Information Officer. The entire staff is comprised of 152 personnel. He urged everyone to have a tour of the Emergency 1 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ Operation Center and Fire Station #5. It was the first time since the department was organized in 1924 that the Administration and the Emergency Operation Center have been in one location creating better efficiencies. Members of the Financial Advisory Committee introduced themselves and gave a brief summary of their background. Chief Bingham reviewed the mission and value statement of his Department. The components of the Department are fire suppression, emergency medical service, special operations, fire & life safety and emergency management. They are known in the industry as a full service fire rescue department. All personnel are cross trained as firefighters and paramedics on a continuous basis to maintain their skills at optimal levels. Ms. Lonergan inquired about the use of the 911 dispatch number rather than a dedicated number for the Boynton Beach Fire Department. Chief Bingham advised calling 911 would connect the caller to the Boynton Beach Dispatch Center. Approximately 12,000 calls are handled annually, resulting in eight to ten hours a day fire and life safety personnel are not in quarters. Calls direct to a station would not be answered. 9-1-1 is the quickest way to get assistance. The 2009 data revealed the average response time was four minutes nine seconds with 964 calls a months equating to 32 calls per 24 hour shift with each firefighter working 48 hours per week. Services are provided for four contiguous areas being Village of Golf, Town of Hypoluxo, Ocean Ridge, and Briny Breezes. It is done on a contract basis with the revenue appearing in the General Fund. Chair Scantlan inquired if the contracts were long term or on per occurrence with a changing fee schedule. Chief Bingham replied some contracts are long term and the contracts contain an escalator clause based on the greater of the CPI or 4% increase per year. Chief Bingham reviewed the types of calls. He pointed out false alarms were a concern and Mr. Feldman suggested a possible source of revenue would be to charge more for false alarms. Chief Bingham opined the current fee structure of allowing two free alarms was fair. It gives owners the opportunity to repair any technical difficulties. The fines are collected through the Fire & Life Safety Division. Changes have been made to allow liening the property for the fines and write-offs have been suspended. Emergency medical calls comprise a large portion of the calls and include all types of emergency situations. The five rescue facilities were located. There are four quadrants of the City and each include a fire station and Station #1 in the downtown area. Paramedic services are provided and special operations include dark water and ocean dive rescue services and hazardous materials. Mutual aid agreements are in effect with Palm Beach County, Delray Beach and Boca Raton that have heavy duty hazardous materials teams to assist when necessary. Mr. Madalena inquired if fees were charged when medical transports are made. Chief Bingham replied fees are charged for any hospital transports. The mutual aid agreements eliminate the need for any additional billings. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ Mr. Feldman asked if any effort had been made to solicit calls outside the boundaries to enhance the revenue. Chief Bingham noted that had been done when the contract areas were included and agreements made. Any area requesting assistance has been contacted and possible coordination of benefits investigated. Chief Bingham cautioned the needs of the residents of Boynton Beach have to be preserved. It can be a delicate balancing act between resources and revenue. Extensive research into the needs of the area has to be assessed and the location of the proposed services limits the opportunities to those areas contiguous to the City limits. Mr. Madigan questioned the charges from nursing homes to the hospital. Chief Bingham stressed inter-facility transports were not done. The transports are only from the location of the patient to the hospital. He reported $1.2 million had been collected for transport fees, plus $1 million in contracts for other municipalities. Without the fire assessment monies the Department generates $3 million in revenue each year including fire and life safety, EMS billing and contract areas. The patients are billed and then make payment arrangements through their insurance carrier. The competencies or characteristics of the Operations Division were reviewed. The ISO rating is a nation-wide insurance group that evaluates fire departments regularly. A rating is provided that is used by insurance companies to write policies. With the lesser number being the best, the City of Boynton Beach is rated two. Fire and Life Safety includes the fire inspectors and fire plan reviewers with various certifications. There are two fire protection engineers as well as inspectors. Every commercial property and common areas are inspected at least once a year. It ensures the safety of the public and the firefighters. It is another revenue producer for the City with inspection fees. Emergency Management involves practicing an all hazards approach. There has been significant new information relating to disasters other than hurricanes such as biological, radioactive, explosive hazards and terrorists. The government offers many grants for emergency management, but require significant training to qualify. Fire Station #5 was hardened to a category 5 hurricane level and can withstand winds to 197 mph. The Emergency Operations Center is located within the building. A federal grant provided $2.2 million for construction to harden the building. Administrative Services comprises payroll, information and communications, finance liaison, policy and procedures, budget compliance, grant coordination and collective bargaining agreement compliance are part of Ms. McDeavitt’s responsibilities. The focus of the entire Department is on safety and devoting a great amount of time to training so few mistakes are made. Sharing of knowledge and opinions is paramount from all employees as is focus on a good labor/ management relationship. Funding is a challenge and efficiencies have been instituted to control costs. Accreditation has been set aside until more funding is available. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ Mr. Feldman referred to the budget impact summary and equipment cost of $519,484 of prefunding dollars had been pushed back a year. Deputy Chief Carter responded it was a one- time mandate to cut the budget. It is an amount of money paid to a fund to pre-fund the future purchasing of replacement vehicles in the fleet. The funding for each vehicle is amortized over the expected life of the vehicle. The City provides routine maintenance of the vehicles and certified parts of vehicles are serviced by an emergency vehicle technician certified mechanic who is contracted. After careful inspection, it was determined many of the vehicles scheduled for replacement could be cost effectively maintained for another year to forego the pre-funding of $519,484. The allocations are reviewed on a yearly basis. Call volume is a factor. At the end of its useful life, the fire apparatus is turned over to the fleet manager and they shop it through a network buying used apparatus. The money is returned to the fleet plan. Barry Atwood, Director of Finance, indicated he was impressed with the concept of pre-funding. Chair Scantlan asked for an explanation of Kelly days and if they were used. Deputy Chief Carter explained Kelly days are used to identify days that are required to be taken off to accommodate the weekly work hours scheduled. There is no pay attached to Kelly days. The personnel only get paid for the hours they work. The idea of a regional 911 Center was questioned. Chief Bingham looked forward to discussing a regional office. He was hesitant to join the County dispatch center. A south county hub dispatch center would create some cost efficiencies. The equipment in Boynton, Delray and Boca Raton are compatible and the departments work together on a frequent basis. Chair Scantlan asked if there would be any positive or negative impact to have the police facility located next to the fire department. Chief Bingham advised the property had been bought to accommodate both a police and fire campus. He felt a public safety complex would be ideal. In regard to the CERT (Community Emergency Response Team) program, it was ongoing even though reduced. It is a federal endeavor to get citizens involved with the community and trained in search and rescue skills, medical skills, basic fire suppression and disaster psychology. It is an 8-week program and has 192 team members. After a disaster, the team members use radios to report damage and injuries so all calls can be prioritized or assistance offered pending arrival of the EMS crews. Ms. Pamplona inquired if the training was totally voluntary. Chief Bingham replied most of the training was voluntary and funded through grants. All team members are volunteers. Mr. Shulman was impressed with the presentation. He pointed out the goal of the Committee was to cut expenses and find more revenue. He asked what could be done to get more grant income. Chief Bingham reported the City has received over $10 million in grants over the past five years. Finding grants involves extensive research and knowledge. The City does have a Grants Coordinator and grant team. Mr. Shulman discussed the fire assessment and Chief Bingham emphasized the assessment is not based on property values. A study found that those homes that pay no property taxes due to reduced property values use the services more than those who pay based on their property value. The fire assessment includes all residences regardless of their value, so all users have to pay. Mr. Feldman asked if inspections for other municipalities could be initiated to generate revenue. Chief Bingham explained private vendors would have a problem with the concept. It is not 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ something that has ever been considered. The inspections are done for fire protection systems and a charge is assessed. The inspections that are done are part of Florida Statutes. The ISO ratings evaluate water supply, communication systems and operations in terms of location of equipment and hydrants. If a fire station would have to close the ISO rating would go up. Ms. Pamplona asked if there were any areas that could be downsized or reduced for a cost savings. Chief Bingham replied, based on previous budget cuts there are no monies hidden that could be taken away. Any additional cuts would have to include firefighter jobs and shutting fire apparatus down. To cut the budget by 15%, Fire Station #1 downtown would have to be closed and a truck would have to be eliminated from one of the stations. As firefighters they would adapt to whatever is necessary, but the citizen’s expectation would have to be compromised. Knowing that a fire doubles every minute and mortality rates go up every minute from trauma, the community would have to adapt. The projected 15% budget reduction would increase the ISO rating from two to five and response time increased from six to seven minutes. The call volume would continue to increase. Mr. Madigan did not understand how the ISO rating could increase from the current rating to the previous rating when stations have been added. Chief Bingham countered that the call volume had doubled. Mr. Feldman advised the residents in his community would probably not survive a longer response time. Since 2004 the service area has increased, call volume has increased and the number of fire stations have gone from four to six. Extra units were not needed to cover the contract communities, but more revenue was generated. Mr. Feldman suggested additional revenue may be gained if the used equipment was traded or sold by the Fire Department direct to another vendor. Chief Bingham replied it related to the efficiencies of the entire City and central control. Deputy Chief Carter advised he would not be replacing any vehicles for four years until the life span of the vehicles expired. Mr. Feldman suggested the pre-funding monies should be eliminated from the budget. Deputy Chief Carter cautioned, in the future, he would need large amounts to buy new equipment. Mr. Atwood explained there was a transfer of over $1 million to the general fund to compensate for equipment that was not purchased on the original replacement schedule. A similar transfer could not be made each year. The amount each Department pays is adjusted each year based on the maintenance and condition of the vehicles. Ms. Lonergan clarified to meet the 15% reduction $2.7 million would have to be stricken from the budget. Chief Bingham concurred. Chair Scantlan thanked the Department for their presentation. Chief Bingham reviewed the materials that had been handed out including an organizational chart, budget goals and objectives, personnel statistics, staffing survey, PEPE study done by Human Resources showing the Boynton Beach firefighters are making less than most others in the County. A pension comparison was also provided and he cautioned the information should be careful considered when comparisons are made. Response times were provided along with information on the mid-year budget adjustment of $290,675 and the budget impact summary reflecting the 6% reduction of $1.162 million. The proposed budgets are included as well as the budget reflecting a 15% reduction for the next fiscal year. Chair Scantlan declared a short recess. 5 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ The meeting recessed at 7:28 p.m. The meeting reconvened at 7:39 p.m. 2. Approval of Minutes Mr. Shulman inquired if questions for staff were being prepared as indicated in the minutes. Chair Scantlan did want to follow that procedure if the members had specific questions that could be given to the Department in advance. Mr. Feldman suggested there be a place where questions for the next meeting could be grouped for all members to view. Chair Scantlan would be speaking with the City Attorney if a blog could be used and not violate the Sunshine Law. Mr. Atwood advised questions could be addressed to either the City Manager or Mr. Atwood. Mr. Feldman inquired if the action item involving questions prepared to ask of the Boca Raton Financial Advisory Committee had been compiled. He noted the Boca Raton Financial Advisory members would meet with Boynton Beach members for discussion. Motion Mr. Shulman moved to approve the minutes of September 20, 2010. Mr. Madigan seconded the motion. The motion carried. 3. Continued Discussion of the Community/Citizen Survey Ms. Lonergan addressed the issue of the number of questions that would be appropriate. Chair Scantlan and Vice Chair Madalena had visited SurveyMonkey online and felt it was user friendly and simple to use. The number of people who do not use computers had to be considered and if paper surveys would be an alternative. A page could be added to the water bill and use the same questions as on SurveyMonkey. The printed survey would also have to be limited to municipal residents and Chair Scantlan wasn’t sure that could be done. Mr. Feldman questioned the timing of doing a survey. Ms. Lonergan stressed the desire of the citizens had to be considered. Chair Scantlan argued the survey had considerable lead time. Mr. Madigan mentioned some condo associations only get one master water bill, and the individual owners would not receive the mailing. Chair Scantlan suggested a note accompany the bill asking the association to distribute the survey or give the link for SurveyMonkey to complete the survey. Ms. Lonergan did not feel the association would follow through on the request. Mr. Feldman felt there needed to be a benefit to the individuals for them to take the time to complete the survey. Chair Scantlan indicated he would talk with the City Manager to establish a definitive timeline. It was decided the discussion on the survey should continue at the next meeting and be included on the agenda. Mr. Atwood interjected the question relating to a County takeover would not necessarily mean a reduction in the budget, if the taxes are kept the same. Ms. Lonergan thought the question should be, would the residents have a problem closing one fire station, laying off firefighters, and the response time increase rather than increase taxes or the County taking over fire protection. Chair Scantlan directed all members to bring five questions 6 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 _____________________________________________________________________ to the next meeting. Mr. Feldman suggested all questions be sent to the City Clerk’s office to distribute all the questions to the entire Committee. 5. Future agenda and schedule of departmental presentations There was discussion if a quorum would be present on November 29, 2010 and it was determined a quorum would be present. Chair Scantlan went through the areas for study based on the questions submitted and tried to categorize them as long term or short term topics. He thought the information could be expanded to develop research questions. Further discussion would take place at the next meeting and assignment of items to each Board member. Ms. Lonergan questioned how the tax revenue was distributed between the City and the Community Redevelopment Agency (CRA). Mr. Atwood explained how the funds were distributed. Ms. Lonergan raised the issue of the need for a CRA and whether that should be further researched. Mr. Madigan added the CRA does exactly what the City does only in a specific area. Mr. Feldman reported on his conversation with the Chair of the Boca Raton Financial Advisory Committee. Either the Chair or the Board members would come and share their six years of experience. There was discussion on whether there were specific questions at this time or a joint meeting should be delayed. Mr. Madalena wanted to hear from the Committee because they had valuable experience dealing with the same issues as Boynton Beach. Sooner, rather later, could only help in the process. There was consensus that the questions should be prepared in advance of the joint meeting. Mr. Madalena brought proposed questions and reviewed them with the Committee. Discussion ensued if the joint meeting should be held in conjunction with the previously scheduled presentations or done at a separate meeting. It was determined only the Chair of the Boca Raton committee would be invited for an extra meeting on October 11, 2010, if possible. Mr. Atwood reviewed the proposed budget with a total figure of $174 million with the General Fund 39% of the total. Water and sewer are the biggest source of funds. The functional breakdown of the General Fund reveals police and fire represent two thirds of the total budget. Personnel services are 81% of the total budget, so any budget reduction will affect personnel. Transfers from other funds have assisted in funding the General Fund; however, those transfers will no longer be available. The millage rate was 7.5 in fiscal year 2004-05 down to its current rate of 6.7626. Mr. Madalena asked if the tax revenue from new construction was added into the figure and the millage rate went up to 7.5, how that would affect the budget. Mr. Atwood advised 1 mill generates about $3.7 million. Chair Scantlan interjected there had been several new home developments that would increase the tax base. 7 Meeting Minutes Financial Advisory Committee Boynton Beach, FL October 4, 2010 Mr. Feldman inquired if the reduction in the tax assessment for the mall had gone through arbitration or mediation. Mr. Atwood replied it goes before the County Assessment Board for the determination and the City has no input. Mr. Atwood continued that in fiscal year 2011/12 there would be a $9.5 million deficit assuming no assessment reduction. He estimated if the fire assessment was increased by 10% it would generate $370,000. The maximum millage rate by law can be 10 mills and the fire assessment can be increased from the current amount which is 36% of the eligible costs. If there was a 1 mill increase it would bring the deficit down to $5,394,000. Mr. Atwood emphasized that some departments could not operate with 15% less. Some steps could be taken in the pension plans to begin savings in those areas, if they are across the board. There was no further business to come before the Committee. Motion Mr. Madigan moved to adjourned. Mr. Feldman seconded the motion. The motion passed. The meeting adjourned at 8:33 p.m. J~~ 1L---7 ,-:-' " ,cdim! /Ttj d.~ /j Judith A. Pylw v Deputy City Clerk 8