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08/24/2006 - Special Work Session CITY COUNCIL SPECIAL BUDGET WORK SESSION MINUTES CITY OF CLEARWATER August 24, 2006 Present: Frank Hibbard Mayor Carlen Petersen Vice-Mayor Hoyt P. Hamilton Councilmember William C. Jonson Councilmember John Doran Councilmember Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Rod Irwin Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Mayor called the meeting to order at 8:30 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Florida Orchestra Request - $50,000 In addition to the City’s annual donation of $30,000, the Florida Orchestra has requested $20,000 to help with operating costs. During visioning sessions, residents identified cultural arts as a quality of life priority. The Florida Orchestra is receptive to increasing its number of concerts. The Florida Orchestra does not charge a ticket surcharge, as do other venues. Florida Orchestra holiday concerts are designed to educate school children. Discussion ensued regarding Ruth Eckerd Hall with comments that it receives all facility parking revenues, it is requesting additional funds for operating costs, and it invests in youth and education programs, providing a payback to the community that cannot be defined. Jolley Trolley Contribution Jolley Trolley management indicated they only track total ridership. It was commented that the Jolley Trolley originally was intended to provide alterative transportation options to tourists and mitigate traffic congestion. Discussion ensued with comments that residents also use the service, this public transportation system requires public funding, and downtown service will be invaluable once construction is completed. It was felt the City must determine the level of service it wants and what it is willing to pay. It was suggested that stakeholders be asked for support. Concern was expressed that PSTA (Pinellas Suncoast Transit Authority) duplicates the Downtown link and controls trolley routes. Support was expressed for a north/south beach trolley route. Opposition to reducing funding at this time was expressed. Bill Kirbas, Director and President of Jolley Trolley, said the trolley’s beach service duplicates much of PSTA Route 80, except it travels farther north on Mandalay and Island Way. Mr. Kirbas said PSTA approval is necessary for any service reductions of 25% or more. He said route reductions would not result in a cost savings as drivers still would be paid during idle times, still use gas, and service would be diminished by half. He said the trolley does not Council Special Budget Work Session 2006-08-24 1 compete with PSTA as it is not in the business of transporting residents. Mr. Kirbas said revenues would be reduced if downtown service were limited to one trolley. He said at times the Downtown route has more riders than the beach route. Parks & Recreation Director Kevin Dunbar said if the Downtown route were reduced to one trolley, service and the subsidy would be halved. He did not know how that change would impact trolley revenues. Mr. Kirbas reviewed the original 1993 agreement made with the City, which referenced Jolley Trolley charter service. He said the trolley makes money on charters. Budget Director Tina Wilson said the DDB (Downtown Development Board) does not fund the Jolley Trolley. Mr. Kirbas said several issues prohibit the trolley from taking over PSTA Route 80. He already has taken steps to lower expenditures by reducing liability insurance costs, workers’ compensation fees, increased advertising on vehicles, and purchasing gasoline from local stations. He said it is difficult for drivers to distinguish tourists from residents. He estimated total ridership for this year would be 140,000. Assistant City Manager Garry Brumback said staff was unaware of cost savings steps until now. It was stated that PSTA is not planning service enhancements for Route 80. Discussion ensued. It was commented that the disposition of the Jolley Trolley needs to be considered should subsidies be terminated. It was suggested that PSTA may be able to replace trolley routes with PSTA vehicles and provide more efficient service. Support for retaining the service was expressed. Mr. Brumback suggested the Council focus on next year’s agreement. Mr. Dunbar said the Council will meet only twice before the trolley’s contract expires on September 30, 2006. The proposal would extend the current contract by one year. Consensus was to maintain current levels of service and extend the current agreement. Concern was expressed that the trolley could face operating shortfalls if the Council does not approve the additional $28,000. Mr. Kirbas expressed concern that gasoline prices could increase again. He said surplus funds would be returned to the City. It was stated that the contract could be amended to address unforeseen increases to operating costs. Per Capita Budget Analysis Ms. Wilson reviewed a per capita budget analysis comparing the City of Clearwater with the cities of St. Petersburg, Largo, Dunedin, and Seminole. The analysis took place in July when preliminary budgets were published. Major differences that affect the City’s budget include its beach guards, beaches, pier operations, recreation centers, and libraries. Seminole and Dunedin do not have police departments. The cities allocate maintenance fees differently. It was stated that no one who attended the nine Visioning meetings requested termination of programs or services in their neighborhoods. It was recommended that public meetings be scheduled to discuss what citizens want. It was recommended that the Council be proactive as the City soon may face leaner times. It was stated that the loss of businesses would affect the quality of life throughout the City. Department cost saving measures Council Special Budget Work Session 2006-08-24 2 Andy Neff – Public Utilities Director Public Utilities Director Andy Neff reviewed department cost savings measures, including controls on labor, maintenance, personnel, energy, and water. All projects will be designed for cost efficiency. The cost of purchasing County water will increase faster than the cost of infrastructure construction. Barbara Pickell, Library Director Library Director Barbara Pickell reviewed department efficiencies and service improvements. The County compensates the City for library services it provides to nonresidents. After determining that one management position no longer was needed following completion of the Main Library, the position was reclassified and two departments combined under one manager. One position was transferred to the Public Communications Department. Technology improvements increased staff efficiency. Wireless access now available at the Main Library and Countryside branch reduced use of library equipment. The library will begin to accept credit cards for fines. Technical services to make materials shelf-ready are outsourced. Some staff has been reallocated to provide enhanced services. Staff has contracted with Unique Management Services to ensure that materials are retrieved and fines are collected. Staff is working with the Parks & Recreation Department regarding a permanent home for the beach branch library. She anticipated grants will be available for the beach branch before Penny for Pinellas 3 funds are available. Staff also is working with St. Petersburg College regarding a joint use facility with the East Library. The library has many volunteers and Friends of the Library funds are donated to the Library. Future plans include swipe cards, electronic material ordering, and self checkout. It was remarked that Clearwater serves a higher population than the City of St. Petersburg, but receives the same funding. Ms. Pickell said the City St. Petersburg has twice the population as Clearwater and serves many beach community patrons. In response to concerns regarding the number of libraries and increasing some services, Ms. Pickell said the provision of library services depends on the community served. Community libraries serve those with limited transportation and provide equitable access to information. She said operating costs for the beach and North Greenwood libraries are less than $500,000. Observations and Discussion of August 21 public meeting Discussion ensued regarding public comments made on August 21, 2006, at the Special Council Budget Work Session. It was stated that cities control millage, not assessed property values, and that insurance costs are an issue for businesses. It was noted that none of the residents in attendance recommended cuts to any programs. Disappointment was expressed that the meeting did not attract residents from throughout the City. It was stated that citizens should be discouraged from recommending service cuts in someone else’s neighborhood. It was stated that tax bills would be reduced substantially only with significant cuts to City services. It was felt that citizens seem happy to live in Clearwater and must pay for services they want. It was recommended that the Council bridge the Vision and budget. Concern was expressed that the Save Our Homes program has caused unintended consequences. It was recommended that the City help citizens determine which services they feel are essential and Council Special Budget Work Session 2006-08-24 3 nonessential. It was stated that reserves ensure that the City can deal with financial shocks. During the previous five years, budget crisis have been caused by health insurance cost increases, franchise fee reductions, property insurance increases, etc. Council Questions & Discussion Discussion ensued regarding a citizen survey with comments that residents seem pleased with staff. The survey did not question the level of service that residents desire. It was suggested that significant discussion is necessary to determine if the City wants to continue providing the rest of the County with recreation services. Mr. Brumback said surface parking will be removed from south beach when Beachwalk Phase II begins. The Hyatt will pull permits after Labor Day, begin construction by year’s end, and complete the project in 24 months. Parking will be limited for one year. Parking revenues will be reduced substantially beginning in early 2007. In response to a suggestion to accelerate funding for sidewalks, City Engineer Mike Quillen said the City has budgeted $500,000 in the streets, sidewalks, and bridges CIP. Ms. Wilson said staff would need time to change ordinances, etc. if any changes are made to the budget. Discussion ensued with comments that public input is important. It was recommended that the Council discuss citizen surveys, police substation costs and their impact on community policing, and the maintenance and personnel costs for all recreation centers. Additional information was requested regarding the proposed Morningside Recreation Center. The City Manager said staff is focusing on preparations for the upcoming referendum and needs direction on a timeline for public meetings. Obtaining public consensus on services they can and cannot live with is very difficult. Adjourn The meeting adjourned at 11:39 a.m. Council Special Budget Work Session 2006-08-24 4