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01/22/2007 BUDGET TASK FORCE MEETING MINUTES CITY OF CLEARWATER January 22, 2007 Present: R. Nathan Hightower Chair Martin L. Altner Task Force Member Joseph W. Evich Task Force Member – arrived 6:19 p.m. Isay M. Gulley Task Force Member Robert L. Longenecker Task Force Member Joyce E. Martin Task Force Member Charles J. Rutz Task Force Member Jesse Sherman Task Force Member – arrived 6:06 p.m. James E. Strickland Task Force Member Douglas J. Williams Task Force Member Absent: Herbert W. McLachlan Vice Chair Also Present Tina Wilson Budget Director Patricia O. Sullivan Board Reporter The meeting was called to order at 6:03 p.m. at the Main Library. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Approval of Minutes – January 16, 2007 Task Force Member Williams moved to approve the minutes of January 16, 2007, as motion submitted in written summation to each board member. The was duly seconded and carried unanimously. Regarding the minutes of the January 8, 2007, meeting, Task Force Member Evich stated that his concerns had been resolved. He rescinded his request for a possible revision. 3. Questions/Discussion regarding January 16, 2007, meeting: In response to questions, Fire Chief Jamie Geer said the Fire Department has 12, not 11, Assistant, Deputy, and Division Chiefs. All have take-home cars. One chief lives outside Pinellas County, in Pasco. None belongs to bargaining units. A comparison was requested of the number of chiefs in Clearwater’s Fire Department with those in a department that offers comparable services in a similarly sized municipality. If numbers differ significantly, it was requested that reasons for the skew be detailed. Fire Chief Geer said members of the CERT (Citizens Emergency Response Team) and Explorers provide support services to the department. These groups are designed to encourage community involvement, not as a budget offset. Task Force – Budget 2007-01-22 1 Fire Chief Geer said the same dispatch system is used countywide. Efforts are underway to provide direct communication between fire personnel and law enforcement. The City participates in the Homeland Security Urban Security Area Initiative. With Homeland Security funding, the department has participated in training and purchased capital items, such as a marine response unit and WMD equipment. 4. Staff Presentation: Parks & Recreation Parks & Recreation Director Kevin Dunbar said that program activity literature illustrates the availability of City services that improve the Quality of Life. Mr. Dunbar provided a PowerPoint presentation. The department’s philosophy is “We do not have to do everything, we just need to make sure everything gets done.” In 2002, the City Council accepted the department’s 20-year vision in its Master Plan. Cultural Arts was added in 2004. The bike/pedestrian master plan, Shifting Gears, was completed last year. The Office on Aging is working on its “Aging Well in Clearwater” plan, to improve the distribution of information, and provide to seniors the ability to receive the full benefits offered by the City. Department strategic partners include: 1) 19 Adult and Youth co-sponsored groups, including Clearwater and Countryside little leagues, 16 and over softball and soccer, etc.; 2) Clearwater for Youth, a 501(c)(3) organization with a primary mission to allow participation by all children regardless of their economic situation; 3) Special Events, with partners who assume all risks and include Wild Splash, Jazz Holiday, Ironman 70.3 Triathlon, etc.; and 4) the Long Center Foundation. The City took over Long Center operations in 2003. While the Long Center Foundation has agreed to contribute at least $200,000 each year to center operations, recent contributions have averaged above $250,000. Park maintenance maintains 604 properties, which total 1,134 acres, and contracts out maintenance for 388 properties. Almost 400 acres of natural areas in City parks require little maintenance. The department, with 28 certified Horticulturists, is responsible for caring for the City’s multi-million dollar investment in landscaping. Future additions to department maintenance responsibilities will include Beach Walk and downtown streetscaping. The City has 32 playgrounds, 3 golf courses (all contracted), 35 ball diamonds, 64 tennis courts, 24 multi-purpose fields for football, soccer, lacrosse, etc., 5 swimming complexes, 9 recreation centers, and 13.3 miles of recreation paths. Department emphasis on expanding recreation paths will encourage residents to get out of their cars and travel safely. Due to the expansion of City recreation facilities, the department’s budget increased more quickly than the CPI (Consumer Price Index) during the previous decade. During the last 10 years, the number of FTEs (Full-Time Equivalents) has increased by approximately 40: 1) 10 new positions - Long Center. Since taking over Long Center operations, the number of City FTEs on site increased from 1.5 to 13; 2) 5 - North Greenwood Recreation & Aquatic Complex, a new facility; 3) 3 - Ross Norton Recreation & Aquatic Complex, an expanded facility; 4) 4 - Clearwater Beach Family Aquatic Complex, with new swimming pool; 5) 2 - Countryside Camps, after-school program. Revenue stream covers costs for these fee-based programs; 6) 2 - Office on Aging/Bike Pedestrian are new programs. After Task Force – Budget 2007-01-22 2 DOT (Department of Transportation) grant funding for the bike pedestrian position ended, that position was retained due to attrition; 7) 4 - Gateway; 8) 2 - State Road 60/Golf Courses/ Contracts. Positions manage contracts for the maintenance of Gulf-to-Bay Boulevard medians and City-owned golf courses; 9) 1 - Glen Oaks Park; 10) 1 - Myron A Smith Bayview Park; 11) 1 - Kapok Park; 12) 1 - Henry L, McMullen Tennis Complex; 13) 2 - BrightHouse Networks Field. New revenue stream from the Phillies covers related costs; and 14) 2 - E.C. Moore. With the additional FTEs, the facility now is open seven days per week. Specialized offerings include: 1) Therapeutics, including a limitless playground at the Long Center for the City’s special needs population; 2) Office on Aging, currently considering ways to inform and encourage seniors to access department facilities; 3) Cultural Affairs; 4) Bicycle/Pedestrian; and 5) Amateur Athletic Tournaments. The Eddie Moore facilities are often busy on weekends with baseball and softball activities. These activities, which do not compromise community use, provide an economic generator of between $16-million and $20- million annually for greater Clearwater motels, restaurants, etc. Department revenue increased from $776,000 in FY (Fiscal Year) 1996/97 to $3,075,250 in FY 2006/07. Downsizing City responsibilities at Neighborhood Recreation Centers has saved the department $120,000 annually while retaining assets: 1) Kings Highway – operated now by Mt. Carmel CDC (Community Development Corporation); 3) Jasmine Court – transition of facility continues; 3) Wood Valley – now operated by Boys and Girls Club; and 4) Martin Luther King Jr. Center – operated now by the African Leadership Council. Contracted operations must meet Parks & Recreation standards. Contracted park property: 1) Golf Courses - until 1999, the City received $1 annual rent for each course: a) Chi Chi Rodriguez Golf Club; b) Clearwater Country Club – contractor invested millions in CIPs (Capital Improvement Projects); and c) Clearwater Executive Golf Course; 2) Harborview Center –Last year’s new contract included incentives and capped the City’s exposure. For the first time, $90,000 was returned to the General Fund; 3) Ruth Eckerd Hall – operated by PACT (Performing Arts Center & Theater); and 4) BrightHouse Networks Field. The City owns the facility and contracts with the Phillies for its operation. The department’s alternative workforce includes 3,000 volunteers, who provided 40,500 hours of service, valued at $730,620. The volunteer program provides residents the opportunity to reinvest in their community. Thirteen City parks have been adopted through the Adopt-A- Park program. Twelve interns worked 4,380 hours. 5. Task Force Questions/Discussion In response to questions from the Task Force, Mr. Dunbar reported on City facilities and other issues. Alternative funding sources Mr. Dunbar said staff has the extensive ability to generate new funding through State and Federal grants. Grant money will be used to construct new trails, including one on Druid Road that will connect the beach, Pinellas Trail, and Safety Harbor Trail within three years. The City does not qualify for contributions from many private foundations. CFY contributed more than $100,000 to allow participation in sports by families with inadequate financial means. The Task Force – Budget 2007-01-22 3 Long Center’s internal foundation is dedicated to its operations. Staff is working with the Devil Rays to fund youth activities. FTE increases Mr. Dunbar said four landscape crews cover the City and are divided into the beach, downtown, east, and west teams. For the past three years, the beach team has worked seven days a week maintaining the beach, gateway, causeway, and Pier 60 area. Several complexes have permanent crews led by working supervisors. As department responsibilities increased with the addition of new parks and facilities, FTE positions were added to meet increased maintenance requirements. New FTEs were not assigned to specific parks, such as Myron A Smith Bayview, etc, but were assigned to the related teams. Staff occasionally is supported by inmate efforts to collect trash on the causeway and pick up debris following special events, for example. Through this program, trash is picked up more often. Inmates are never in areas heavily used by the public. Staff also organizes volunteer clean-up events. Mr. Dunbar did not anticipate that a new dog park at Lake Chatauqua North would require an additional FTE. Outsourcing Mr. Dunbar said due to City standards, staff maintains most park landscaping. It is not cost effective for staff to maintain small lots or the Gulf-to-Bay Boulevard median, where staff would be at risk. Athletic and ball field maintenance requires expertise and special equipment not available in the private sector. The department requires responsiveness and flexibility. The City of St. Petersburg’s parks department does not contract any of its maintenance. Mr. Dunbar said when it makes sense, staff issues and advertises RFPs (Requests for Proposals). The City’s purchasing department solicits minority participation. Staff is in tune with the network of providers and makes certain they all are aware of contract opportunities. Bid contracts are for one year and allow renewals. Mr. Dunbar said staff struggles with contractors as the quality of their work can fluctuate significantly from year to year. Providers could make unreasonable demands should the City become dependent on them. The City currently has between seven and nine outsourced contracts, which are issued according to sector and priority level, ranging from weekly to monthly responsibilities. Vendors must be licensed and provide insurance. Staff constantly considers the cost effectiveness of their efforts. The department’s contracts team works with vendors, terminating those who no longer meet City standards. BrightHouse Field Mr. Dunbar said the 20-year contract with the Phillies is in its fourth year. The City has had a 60-year relationship with the team. The City pays 75% of the facility’s utilities, while the Phillies pay the remainder. The City and Phillies split the property taxes 50:50. The City’s annual cost for infrastructure maintenance is capped at $400,000. The City receives one-third of the naming rights and half of the net profit from all events with the Phillies, including concession and ticket sales. While the Phillies are responsible for day-to-day maintenance, the City is responsible for major capital items, such as air conditioning and elevators. The City’s Task Force – Budget 2007-01-22 4 Building & Maintenance Department often inspect the facility. Of $34-million in facility construction costs, the City paid less than $6-million, while the Phillies paid $12-million. The Phillies are interested in maintaining it in first-class, major league condition. Mr. Dunbar estimated that the City’s excess annual contribution to BrightHouse Field is $400,000, similar to its previous contribution to Jack Russell Stadium. Winning Innings has operated Jack Russell Stadium since the Phillies’ relocation. As the stadium requires a significant capital investment, it will be razed this year. The City holds events at BrightHouse Field between mid September and the end of November. In the spring, the facility is used primarily for Phillies spring training activities. When the Threshers were on the road during a previous Memorial Day weekend, the City was able to hold a concert there starring Willie Nelson and Bob Dylan. Long Center Mr. Dunbar said the Long Center generates $350,000 annually. In response to requests, staff will provide a: 1) comparison of facility maintenance and service costs, and 2) comparison of center costs with income. Prior to 2003, the City was responsible for facility deficits. In FY (Fiscal Year) 2000/01, the City determined that the plan to lower the City’s commitment was not working and capped its responsibility. Eighteen months later, the Long Center Board requested that the City take over the facility, which was poorly maintained. Since then, annual City costs have decreased from $400,000 to $250,000, even though the City of Safety Harbor no longer is a participant. Clearwater residents are the facility’s primary users. Recent renovations were financed with $1- million in Penny for Pinellas 2 funds, which were earmarked specifically for the center. Center operation costs are lower than when operated by the foundation. The summer camp and after school programs operate at 100% cost recovery. City supervisor costs are lower and administration salaries were eliminated as these positions already were in place at the Municipal Services Building. The facility is now open seven days a week and no longer closes for rentals. Harborview Center Mr. Dunbar said rent from SteinMart is included in the facility’s revenue stream. Last year, the City recovered 91% of its costs, better than previously. It was noted that the Harborview Center costs the General Fund $160,000 annually. Ruth Eckerd Hall Mr. Dunbar said under the original contract, PACT built the facility on City donated land. Seven years before that agreement expired, the bond was retired and the City took ownership of the facility. The new 30-year agreement provided PACT the ability to solicit donations sufficient to expand the hall. The City agreed to donate $400,000 annually, with a 3% COLA (Cost of Living Adjustment). The current donation is $477,000. Task Force – Budget 2007-01-22 5 During the current Fiscal Year, the City’s $777,000 contribution includes a one-time donation of $300,000, requested by PACT to provide seed money for new programming. The cities of Tampa and St. Petersburg contribute significantly more to their performing arts centers. Annual facility operating costs are more than $5-million. In response to a concern that a competing venue may open downtown, the City Manager said the current master plan for the new Scientology facility focuses on training, not public entertainment. Golf Courses Mr. Dunbar said until recently, the City received no income from its golf courses and spent $50,000 annually to subsidize Glen Oaks. The golf courses now provide a revenue stream to the City, which only has to ensure that operators fulfill their contracts. Contract lengths vary from 20 to 30 years. The contract with the Clearwater Country Club included an incentive to build a new clubhouse, which was constructed in 2002. Since the club’s membership base has dwindled, public play is now encouraged there. Special Events at Coachman Park Mr. Dunbar said the operation of special events at Coachman Park is at capacity. The City controls all concession revenues and negotiates with providers a percentage of ticket sales. He estimated the City will receive a $50,000 to $80,000 profit from the upcoming “Wild Splash” event. The Special Events Development Fund provides seed money for events and is th reimbursed afterwards. Excess funds are used, for example, to expand the City’s 4 of July celebration and increase the number of free Florida Orchestra performances, providing all residents with a diverse offering of entertainment. None of the Special Events team qualifies for overtime pay. City partners pay overtime salaries for necessary Police, Fire, and Parks & Recreation department personnel. When more than one Special Event is scheduled within a short time period, fencing and necessary infrastructure are left in place to reduce costs. Penny for Pinellas 3 It was stated that operating facilities constructed with Penny for Pinellas funds increases the burden on the General Fund. Mr. Dunbar said the Penny for Pinellas 3 list focuses on maintaining and refreshing older neighborhood parks and athletic complexes. The new Senior Center and Countryside Recreation Center water park facility are the only projects that may increase costs, although he anticipated that aquatic fees will cover related costs. Concern was expressed that annual operational deficits for Ruth Eckerd Hall, the Harborview Center, Long Center, and BrightHouse Fields total $1.5-million. Mr. Dunbar said staff is working to improve its communication with the public to increase facility participation and lower deficits. CWA (Communications Workers of America) Union Steve Sarnoff, President of the local CWA, said the union represents more than 900 general workers, in 131 job titles, with starting salaries that range from approximately $8 to $17.50 per hour. Contracts are limited to three years and the current contract expires in Fall Task Force – Budget 2007-01-22 6 . . . 2008. There is great competition for jobs. He said the City's high-rated bond rating is due to its professional and progressive government. While 40% of employees live in the City, he expressed concerns that most employees no longer earn enough to purchase homes in Clearwater. The Union has partnered with the City on training and discipline issues. He said staff always works to lower costs. 6. Information for next meetina Chair Hightower said although the Pinellas County delegation is scheduled to address the Task Force on January 29,2007, a contingency plan is necessary due to the legislators' schedule. As the Task Force has been charged with generating a report, he requested that members write down their thoughts and recommendations for discussion. The City Council has requested a joint session with the Task Force on February 12, 2007. In response to a request for staff analysis on reducing insurance costs, Assistant City Manager Garry Brumback said staff will report on issues, such as the impact of eliminating wind coverage. 7. Adiourn 7i/J f)~ ^f1Z Chair Budget Task Force The meeting adjourned at 8:00 p.m. Bo Task Force - Budget 2007-01-22 7