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07/08/1993 CITY COMMISSION SPECIAL WORK SESSION July 8, 1993 The City Commission met in special session at the Clearwater Main Library, Thursday, July 8, 1993 at 11:34 a.m., with the following members present: Rita Garvey Mayor/Commissioner Richard Fitzgerald Vice-Mayor/Commissioner Fred Thomas Commissioner Sue Berfield Commissioner Arthur X. Deegan, II Commissioner Also Present: Michael J. Wright City Manager Cynthia E. Goudeau City Clerk Tina Wilson Budget Director The meeting was called to order. It was announced there would be no discussion regarding the sale of the Sun Bank building as the CRA had continued this item. Item #2 - City Attorney Audit Discussion ensued regarding the need to conclude this item. It was indicated there were three presentations scheduled for August 2. Consensus of the Commission was to have the presentations on August 2, with a decision being made at the City Commission meeting of August 5. The City Manager reported a memo was received on July 7 regarding a subsidy for the Jolley Trolley. Commissioner Fitzgerald has requested discussion of this item. He stated a letter of commitment to Pinellas Suncoast Transit Authority (PSTA) is needed by Friday. Commissioner Thomas indicated PSTA was very clear the Jolley Trolley service would end on July 10 unless the City picked up the $2,200 per month shortfall. Commissioner Fitzgerald indicated his concern was the City is now subsidizing transportation service in three different ways. He did not feel it was right to ask the citizens to do that. He stated it is hoped the non-profit organization will run the Jolley Trolley without additional City funds. He stated he had no problem with continuing the Jolley Trolley, but he had concerns regarding paying PSTA for lost revenues on its route. Discussion ensued regarding the need to subsidize public transportation and the need to allow the Jolley Trolley non-profit corporation to get started. Concerns were expressed, while they agreed to subsidize the Jolley Trolley, there was a problem with setting a precedent in paying PSTA for its losses. Concern was also expressed PSTA was needed as a partner in the Jolley Trolley operation. Consensus of the Commission was to send a letter to PSTA that the City would make up the shortfall this time, but this was not to be viewed as a precedent-setting issue. Commissioner Thomas expressed concern regarding a stop at the Publix shopping center. Ms. Deptula is to talk to Roger Sweeney of PSTA. Item #3 - FY 1993/94 Budget The City Manager indicated today will provide an overview of the proposed budget. He stated the Commission needs to be comfortable enough to set the millage rate. Tina Wilson, Budget Director, provided a history of direction provided for this year's budget. She stated, hopefully, this document is a first step toward a true program-based budget. She provided an overview of the proposed budget, stating the General Fund portion of the budget is $59,269,940. Seventy percent of this is personnel services. She pointed out in a six-year comparison of property tax revenues, it showed this revenue source reached its peak in FY 1991/92 and has decreased over the last two years. The City Manager stated it is important to realize the tax base has gone down, while the tax rate has remained the same. The City Manager reported there are four new initiatives proposed in the budget: 1) Central Permitting for one-stop shopping; 2) Economic Development to focus on City-wide economic development; 3) Neighborhood Response/Code Enforcement; and 4) Community Outreach to provide public information with a heavy video base. He stated next week, a business plan for the Gas Department will be presented which will include aggressively marketing the service and going after new territory. He stated new positions in the budget include three in the Police Department for Code Enforcement, one in the Water Pollution Control Division for the belt press procedure requirements and 2.2 lifeguards. He stated 13.3 positions have been eliminated for a net change of 7.1 position decrease. Ms. Wilson reported $1,392,467 remains in the unappropriated, undesignated fund balance, which is above the ten percent policy established by the City Commission. Mr. Wright said there are three or four areas of which the City Commission needs to be cognizant: 1) in order to balance the parking fund, $400,000 in costs must be shifted to the General Fund; 2) the proposed closing of the Ross Norton Park swimming pool during the winter season; 3) the proposed closure of the Civic Center Beach Library; and 4) an increase in the non-resident fees. He stated a basic question regarding the Parks and Recreation fees is, can we continue to subsidize groups in the manner in which we have. He also reported four sites are being bid to private lawn services and there will be a cost and quality comparison in the coming year. Commissioner Fitzgerald questioned the cost of the Beach Library. The City Manager indicated there are 2.8 positions required for the functioning of that service. Ms. Rice indicated the saving would be $577,573. In response to questions regarding how the information would be presented, the City Manager indicated he anticipated a series of meetings between now and September. A concern was raised regarding the Budget Advisory Committee's input. It was indicated, due to the time line, there had been no time to work with them on this particular budget. The City Manager indicated it would be appropriate for the City Commission to clearly define what role the Budget Advisory Committee is to play. Further discussion ensued regarding the Budget Advisory Committee and what role it is to play with concerns being expressed they should have year-round input and provide recommendations to the Commission. Consensus of the Commission was for the role of the Budget Advisory Committee to be discussed at a future meeting. The meeting recessed from 1:05 to 2:16 p.m. Commissioner Deegan expressed concerns regarding the cover letter and discussion of Commission goals, including Community Outreach. He stated he did not remember the Commission discussing Community Outreach. The City Manager stated he honestly thought this was in response to City Commission direction. Discussion ensued regarding cost centers and how to interpret the budget based on them. The City Manager pointed out the cover letter was not intended to be totally inclusive and throughout the budget process they will be developing work programs. A question was raised regarding the Code Enforcement proposal with concerns being expressed this heavily involves the Police Department. The City Manager indicated the task force formed by the Commission to look at code enforcement has been asked to review the proposal. He stated this is just a concept. Ms. Rice indicated the task force will be meeting tomorrow and she will come back with a work schedule. In response to a question, the City Manager indicated the proposal will be finalized prior to October 1. It was indicated the Commission can make changes up until the budget is adopted. Once the budget is adopted, there can be amendments made. Commissioner Fitzgerald questioned a phrase on page 2, third paragraph, regarding if the Building Department remains with the City. Ms. Rice reminded the Commission they had asked staff to investigate consolidating some services with the County. A report will be available by August 1. No recommendation has been made at this point. She pointed out the budget does include the Building Department remaining with the City at this time. Commissioner Fitzgerald expressed concern the Economic Development office seemed to be oriented more toward housing than to business development. Ms. Rice pointed out the intent is to be business oriented, but they wanted to point out Community Development is being incorporated in that department. In response to a question, the City Manager indicated Community Outreach is a freestanding department and is more of a broad-based outreach to educate the public and to be more proactive in providing information. Questions were raised regarding the $400,000 contribution to Ruth Eckerd Hall each year. The City Manager indicated the Commission agreed to contribute the $400,000 per year subject to annual appropriation. He stated PACT has been notified the $400,000 is not etched in stone. He pointed out the City is the guarantor for the Center's debt. A question was raised regarding the revenue stream from the parking lot at Ruth Eckerd Hall. Mr. Wright indicated the City basically pays the cost of the parking lot and deducts that from the $400,000 annual contribution. A question was raised regarding whether the $400,000 reduces the Center's debt service. Mr. Wright indicated it was not earmarked for that, but they could ask that it all go to the debt service. Concerns were raised regarding the proposed closing of the Beach Library. It was indicated petitions have been filed in opposition to this. Mr. Wright stated it is difficult when you have a declining tax base. He stated staff's perception was this is not a reduction in the level of service, as there are other libraries available. Commissioner Deegan stated he felt if it made an activity less convenient, that was a reduction in service. Further discussion ensued regarding the need for the library. It was indicated the library on the beach does serve the tourist community. Alternatives for another location and relocating programs in the civic center were discussed. Consensus of the Commission was to leave the Beach Library in its current location. Commissioner Thomas stated, while the consensus is to do this, it should not be interpreted that the City Manager cannot bring forward new ideas. The City Manager questioned direction regarding the rest of the building. There was some suggestion that leasing out part of it be considered. Discussion ensued regarding the need to make renovations at the civic center and whether this should be included in this year's budget. A suggestion was made that the whole area will be addressed within the next 12 months. If someone came forward with an offer on the property, the City Manager should bring this forward, but at this time, the library and the civic center should stay as is. General direction was to evaluate the use of the civic center as they go through the next budget year. The City Manager indicated he would find additional funds to keep the building open. Commissioner Thomas stated the Jolley Trolley would be a reality as of October 1 and he wanted consideration of renting space in the civic center to that organization. Commissioner Deegan stated if, in fact, all the programming could be transferred to the Clearwater Beach Recreation Center, if would be all right to allow an non-profit to use the building in order to recover costs. He stated that use would be subject to the review of the City Commission. A question was raised regarding certain lawn maintenance being subject to bid. It was questioned what happened if this was handled by a private contractor. The City Manager indicated a vacant position would not be filled. Discussion ensued regarding cost cutting being hurtful. It was indicated there is a need to uplift the cost savings and inform the citizens of the same. Mr. Wright indicated staying within the millage rate spoke to that. It was also suggested this was something the Community Outreach program could do. Mr. Wright agreed the City does not do enough self-promotion. He felt that TV is the way to go. Commissioner Fitzgerald returned to the topic of the Jolley Trolley system. He questioned if any of the $310,000 for that program could be assumed by the CRA. The City Manager indicated that was a matter of priorities and the CRA budget has not been done at this time. In response to a question regarding the funding, the City Manager indicated the subsidy to the Jolley Trolley has been paid through the savings account. He stated this will be a recurring cost and will need to have a priority. Commissioner Deegan spoke to this being a program budget. He stated he hoped the intent was to use this as a management tool throughout the year with periodic progress reports. Ms. Rice indicated quarterly reports are anticipated. Discussion turned to personnel costs. It was indicated all union employees average a two percent increase in a given fiscal year. Regarding SAMP employees, it was indicated they get no fixed increase, but increases come from a pool based on performance. Commissioner Thomas stated, in the private sector, bonuses are provided for performance. He stated he would like the City Commission to consider, in concept, an incentive program. This program would provide, when savings occur in the budget, 30 percent of the savings would go to the employees who created the savings. Ms. Rice indicated she could talk to the SAMP employees regarding this, but for others, it would be a bargaining issue. The Mayor suggested this be talked about in a closed-door bargaining session. Commissioner Thomas raised concerns regarding the pension plan and the need to remove the disability portion from the plan. Ms. Rice indicated this, too, would be a bargaining issue and should be discussed in a closed door session. Regarding the utility funds, Commissioner Deegan questioned if there was no increase anticipated in the water rates. The City Manager indicated there had been none programmed. He stated there may be increases from the County. Commissioner Thomas questioned what the City pays the County for water. It was indicated the City pays $1.32 per thousand gallons. Commissioner Deegan expressed concerns there was no project in the Capital Improvement Program for a new City Hall. Tina Wilson pointed out this is an existing project. Commissioner Deegan expressed concern that funds for this project were used for the Sun Bank purchase. Mr. Wright indicated, if Sun Bank is sold, those revenues will go back to the City Hall project. Discussion ensued regarding the need to have a project for City Hall. It was indicated there was a project already set up. Concerns were expressed there were not enough funds in the project. Consensus was to set a budget for a new City Hall project. Commissioner Fitzgerald expressed concerns regarding medical insurance increases. He questioned if the City had ever considered co-opting a system of private and public. It was indicated this has been considered. Ms. Rice indicated there will be a presentation at the next meeting, at which several options will be presented. Commissioner Thomas questioned the $7,650 for promotional activity. It was indicated these are for things given to visitors, i.e. friendship packages, t-shirts, etc. Commissioner Thomas questioned the source of the $8,000 in travel expenses. The City Manager indicated this was based on history. Commissioner Berfield questioned frequent flier hours. Mr. Wright indicated these go back to the City if they are obtained. The City Manager questioned if staff was headed in the right direction regarding the budget document. There was general agreement that they were. Commissioner Thomas stated the real theme is quality of life is paramount and the quality of service for the least dollars possible. Commissioner Thomas stated he was impressed with the staff of the City of Clearwater. There was general agreement everyone was comfortable with the proposed millage rate. The meeting adjourned at 5:00 p.m.