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07/26/1996CITY COMMISSION BUDGET SPECIAL WORK SESSION CITY OF CLEARWATER July 26, 1996 Present: Rita Garvey Mayor/Commissioner J. B. Johnson Vice-Mayor/Commissioner Robert Clark Commissioner Ed Hooper Commissioner Karen Seel Commissioner Elizabeth M. Deptula City Manager Tina Wilson Budget Director Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Mayor called the meeting to order at 9:00 a.m. at City Hall. Engineering & Public Works Business Plans Parking System Rich Baier, Engineering Director, reviewed the parking system plan. Plans for two additional decks on the Garden Avenue parking garage are being considered, and funding will be available to implement several Kimley-Horn recommendations. If beach parking decreases and the City does not replenish parking spaces, the entire parking system will suffer. Concern was expressed about the courtesy warning system on the beach, and there being a high percentage of unpaid parking tickets. A more aggressive method of enforcement, such as booting cars of those that habitually do not pay their tickets is under consideration. Currently, the courtesy warning accounts for $150,000 to $160,000 in yearly lost revenues. It was noted projected parking revenues for 1997 are $1.9 million. Page 57 of the budget detail indicates parking receipts are $2.1 million. Some revenues may be reflected in other funds. Ms. Wilson will research parking revenue numbers for accuracy. The City will continue operation of Park Street and Garden Avenue garages, and will consider the possibility of additional attended lot expansion on the beach. The marina lot is only enforced until 6:00 p.m., resulting in a gathering place in the evening. Extending meter hours at the marina lot, or turning it into an attendant lot are possibilities, but an attendant lot would require gates and controlled access. Another option is to add parking spaces at the western end of Memorial Causeway. The addition of a right turn deceleration lane, as well as coordination with the DOT (Department of Transportation) would be required. Re-striping of City lots will be performed during regularly scheduled maintenance in 1997, with the exception of the Pier 60 lot, which will be accelerated. Stormwater Program Operational maintenance activities, such as street sweeping, catch basin cleaning, ditch cleaning crews, and capital improvement projects are included in a capital improvement program of $4.17 million. A stormwater credit would be awarded to businesses exceeding requirements to enhance the quality of life in the City. Through the Penny for Pinellas and many watershed plans, concentration will be on regional retention. City ponds are cleaned regularly, as well as ponds which have an easement across open ditches that convey water. It is the property owner’s responsibility to keep ponds clean if owners want a higher level of service other than maintenance for conveyance purposes. The city currently has ongoing stormwater and landscape retention programs. A contracted inspector, not a full time employee, assists with landscape and pond reinspections for all residential and commercial property in the City. One pond inspector could take four to six years to reinspect a pond. Concern was expressed in reference to some ponds located at commercial sights, such as Kmart and Bayside Bridge. It was noted some pond pollution is due to design problems, and some vegetation is desirable to remove oil and other pollutants. Ponds without dry areas and wet littoral shelves will not function properly. The City is working with the DOT to make improvements. Water and Wastewater Population growth continues while water use has tapered off. Pasco County uses 200 gallons per person per day compared to Pinellas County’s 120 gallons per person per day. However, well production has decreased significantly. Gardner Smith, Public Works Director, indicates the City has a rough draft of the well field management plan. Encouragement of water reduction lowers revenues and a balance is necessary to control costs to the City and to consumers. It was noted the City has not had a City initiated rate increase in five years. In coming years, the City has to decide whether it will be in the distribution business, the supply business, or the water business at all. The Information Collection Rule presentation will be included in Monday’s work session. Expansion plans include the capability of treatment of wastewater. The City is speaking with the County about expansion of the current system to incorporate the County’s septic-served areas. Upcoming permit issues for consumptive use and surface water discharge will affect reclaimed water and conservation issues. The City has received confirmation of a $2.6 million grant from SWFWMD (Southwest Florida Water Management District) for reclaimed water, which is one half of their total annual budget. Commissioner Johnson inquired about filtering retention pond water and pumping it back into neighborhoods for lawn sprinkling. It was noted the cost for the infrastructure would be dramatic, and the volume of water available is minimal for the intended use. The City’s goal is to clean 10,500 catch basins by year end, and 108,000 lineal feet of ditches. Mr. Smith indicated the state will accept the stormwater plan and give the City a blanket permit for ditch maintenance throughout the City, eliminating the need for individual dredge and fill permits. It was noted the DOT needs to do a better job on their catch basins. The DOT does not maintain street sweeping, and the City maintains all main arteries. Professional services of $45,000 in the water supply budget detail on page 186 was explained as miscellaneous charges which are not part of the rate study costs. A CIP (Capital Improvement Project) for the rate study is shared by all enterprise funds. Water costs for 1994 and 1995 were reviewed, and it was noted this year’s increased water rates were due to costs passed on from the county. Citizens should be aware water costs will continue to rise, and whenever possible, they will be informed of increases prior to their effective dates. The water distribution system has been upgraded and the sewer collection system is productive. The Mayor left the meeting at 9:50 a.m. The City is a little behind on drainage projects and the reclaimed water system. More projects such as Stevenson’s Creek will be forthcoming. The meeting recessed at 9:57 a.m. to 10:17 a.m. Vice-Mayor Johnson reconvened the meeting. The City Manager pointed out an additional position, whether an architect or someone with other disciplines, is requested to manage contracts and handle smaller design projects. Various costs for an in-house person versus a contractor will be addressed prior to approval of the new position. Considerations include payment of management fees, liability insurance, CAD system expenditures, salary, benefits and pension costs. Enhancements at the air park were discussed. Hanger construction, an increase in fuel sales, a decrease in ground maintenance, extension of the runway, and better lighting will increase revenues. It was noted when a salary is budgeted in each department, vacations and sick leave are not broken down. Ms. Deptula stated the detail for Engineering on page 157, column 9 shows full time salaries and wages are budgeted at $1,678,490.00. Column 6 includes vacations and sick time within the salary component. The Public Works Department was complimented for increased efficiency and more programs, utilizing fewer employees. Fire Fire Chief, Bob Davidson, described various program within the department. The new operations center for EMS is nearing completion, and the EMS contract is up for renewal next year. Through the Pinellas County Fire Chief’s Association, committees are reviewing overall EMS funding and operations. Chief Davidson discussed organizational development. The Fire Department is evaluating and reassigning personnel as needed. According to an independent audit, the Fire Department is rated in the upper 10% of the country. It was noted OSHA has changed requirements for confined space and technical rescue team training programs, which has created department overtime. Although everyone has a specific assignment, each person is required to have skills in more than one area. It was noted some Fire Department costs are charged to a specific division, rather than allocated among the five divisions. A question arose regarding Fire engines responding to accident scenes. Chief Davidson said it is a precautionary measure and the Police will “waive off” the engine when it is not needed. It was noted the Fire Department is rated Class 3, a Class 2 being exceptional. The Insurance Services Office reviews how the City provides various services and awards a rating. Achievement of a Class 2 rating would involve minor but costly changes, and the City did not feel the expenditures would provide enough additional benefit to citizens to warrant the changes. The Fire Department had suggested adding a $24 charge for required fire inspections to occupational licenses, which would generate an additional $125,000. The recommendation was not incorporated in this budget, because the City is focusing on being “business friendly”. It was noted other governments are charging for the service, and it is an option for future consideration. The Fire Department coordinates site development recommendation through the Central Permitting Department. In response to a question, it was indicated the department receives $3.4 million in reimbursements from Pinellas County for unincorporated areas and other areas. Staff believes this to be an appropriate amount. Marina Harbormaster, Bill Held, noted in 1996, the marina received four awards from the Tampa Bay Regional Planning Council, and one for an environmental annual governor’s award. He reviewed accomplishments of the past year. Projects for the coming year include 1) installation of cable television and a monitor in the marina lobby, with 24 hour Weather Channel information; 2) decorative lamp posts in front of the marina, along the sea wall, east dock, and the main terminal dock; 3) City kiosk; and 4) recycled lumber on the east dock. It was noted recycled lumber should be more durable, and will be implemented throughout the marina in the future as needed. Columns supporting floats at the Seminole launch ramp will be repaired and the lot resurfaced in 1997. Replacement of swim buoys on Clearwater Beach with pilings and signs is in process. A bar scanning cash register is being purchased to better monitor cash flow. All permits have been obtained for the permanent dock at the Sailing Center. Business plans have been developed for all three marine operations. The business plan for the Marina is scheduled for presentation at the August 15, 1996 City Commission Meeting, and an increase for slip rents at the Marina is included. The City received a letter from attorney M. A. Galbraith. He has a client interested in putting in casino type slot machines. It was noted as long as compliance with zoning and occupational licenses was met, the City has no legal prohibition. However, the City, as property owner, may have a right to determine the types of businesses conducted on its property and the rate to be charged. Proposed slip rent increases were discussed. Commercial rates were evaluated for individual activities, based on the number of customers, and the number of passengers. Rental charges for storage space are comparable to current real estate rentals. Of 180 permanently assigned slips to private and commercial tenants, 100% occupancy has been attained. Sixty percent of slips are residents and forty percent are non-resident. There are 25 transient slips. The new rates are comparable to other municipal marina rates. CPI increases will be reviewed annually. Increased part time hours of Pier 60 employees will ensure better cleaning, and will save the City money. Pier 60 has been in the red for some time and changing it from an enterprise fund to a general fund is recommended. Commissioner Seel did not feel Pier 60 should be a general fund enterprise, and requested the City continue to monitor expenditures before a final decision is made. The Traffic Engineering Department has not confirmed whether the City can expand the Seminole parking lot. Upon resurfacing, the issue will be re-addressed. All future lease agreements will include a requirement building tenants and their employees park in the Memorial Civic Center lot. It was noted the City is reimbursed by the county for beach guard operations for Sand Key, and incurs no out-of-pocket expenses. General Services General Services operations were reviewed. Goals include: 1) having all employees CPR certified; and 2) working with employees to find ways to help citizens who experience vehicular problems. All of the General Services budget is charged to individual departments, and revenue sources come from other departments. It was noted Mr. Baird has moved the City toward a motor pool concept. Streamlining the Accounting system to charge departments for use or abuse of a particular vehicle has been implemented. Information Management Jeff Harper reviewed the mission of the department. Information Services is installing a state of the art computer network. Training of 230 employees on use of the new system and software has been completed. A new PBX system with voice mail, and other full featured telephone services has been added. Programming on C-View was reviewed. The Department has developed a downtown event calendar. Information Services will connect seven outlying locations and interconnect all offices on the computer network. Installation of a new payroll system and software for Central Permitting will replace existing archaic systems. Technical Support will add departments to the telephone network, eliminating older model telephones. Reengineering the inventory process for tracking computer equipment will be accomplished. A new mail inserter will be installed to reduce utility bill processing time by 25%, and taking advantage of special rates will reduce mail costs 5%. A courier service will be added this year, and personnel will be moved from the Graphics and Technical Support areas in order to accomplish full pick up and delivery of mail and shipping services within City operations. Personnel services has increased 4% and Community Outreach’s budget increased 16% due to debt service for equipment purchases. Graphics Communication has decreased 13%, primarily due to moving two positions out of the department. A major increase was the transfer of a $975,000 charge for the City-wide telephone system from General Services to Information Services. Other increases included $55,000 in maintenance costs for Oracle, a database software program, $194,000 for the PBX system, and a full year of payments on the enterprise network and television equipment. Information Management has proposed a new project, “City Hall in the Mall”. This would provide information about the City and County, and also serve as a utility payment drop off center. The County’s contribution would be $15,000, and the City’s contribution would be $38,000, for a grand total of $52,000. The plan entails using the City’s existing computer equipment, and the Mall would give the City space at no charge. An interactive information kiosk demonstrated a month ago is operational at Clearwater Mall. It was noted a total of four kiosks are under consideration. Mr. Harper emphasized information on the City could be put onto a CD-ROM and sent to businesses interested in relocating to the area. In response to a question, it was indicated the graphics manual will standardize graphics for City stationery and other items. In response to a question, Ms. Wilson explained the messenger service and postal costs were moved from Graphics Communications to Technical Support. The Information Management Department was complimented for a job well done. Other than the Community Outreach Program, all other programs are internal service functions. Information Management Services pays all debt on the new computer equipment and telephone systems. It was indicated annual operating expenses will increase by $275,000 due to the addition of the new PBX systems. The meeting adjourned for lunch at 12:10 p.m. and reconvened at 12:59 p.m. Gas Managing Director and Executive Officer of Clearwater Gas System, Chuck Warrington, presented an overview of the gas system. CGS’ focus in fiscal 1996/97 is to increase work force efficiency to reduce consumer costs. One million dollars of increased net income is required in order to adjust pricing and remain competitive. Plans are to increase infill on existing mains and hold existing mains in Pinellas County to ten miles or less in 1996. Work process improvements in gas installation and gas service and repair have always cost the gas system, and this area must break even. Reducing fuel costs, particularly for price sensitive and fuel switchable customers is part of the CGS plan. Seventy-seven percent of CGS’ total revenue budget is natural gas sales, and all other components are 23%. The total revenue budget is $19.98 million, which is slightly different than the number in the presentation handout. The operating budget is $19.11 million for 1996 and 1997, of which 33% of total expense is fuel, 20% is personnel related, and 13% is debt service. Sixteen percent comes back to the City for City services, such as garage and utility customer service, and 11% goes into dividends, transfers and franchise fees to the City. CGS forecasts a 17% increase in net revenues, an 18% increase in expense, and will break even. Discussion ensued regarding appliance rebates given for energy conservation adjustments. It was noted air conditioners were not included in appliance sales. Service revenues include: 1) connection of new customers, turning pilot lights off and on and re-lighting them; and 2) normal, routine repair orders, such as repairs to water heaters, for which CGS charges for parts and labor. Ms. Wilson noted there is an error on page 246 on total revenues. It is shy $750,000 and will be corrected. It was emphasized comparisons of revenue to expenses must be monitored continuously to realize profits. It was noted CGS allocates some of the administrative group costs to the Pasco operation, with the exception of marketing costs. It is hoped the gas audit, as requested by the Commission, can be completed by September or October. It was emphasized before Commission approval of any additional large expenditures, the audit should be completed. CGS is revisiting time lines and an updated strategic plan forecast will submitted to the Commission. Non-Departmental/City Commission/City Manager Budget Director, Tina Wilson, indicated non-departmental expenditures do not apply to any one department. A question arose about the St. Petersburg/Clearwater film commission. It is the two person office the City started six years ago, which has been taken over by the County. The City receives participation in commercials filmed in the area and the film commission helps in county-wide economic development. Reference was made to page 282 on inkind services. Upon approval of the current budget, the Commission is in effect approving the City’s co-sponsorship and contribution to the agencies listed. An agenda item will be prepared at the beginning of the fiscal year which confirms the co-sponsorships. A question arose about the $575,000 for a pool and aquatic center. The Commission will make a final determination regarding this capital improvement project at a later date. Ms. Rice is negotiating a renewal of the funding agreement with Jolley Trolley. Jolley Trolley has proposed a reduction in the City subsidy, and had they not purchased two new trolleys, a further reduction request may have been realized. There is also a possibility of CMAC funds for the purchase of electric trolleys, however they must use non-fossil fuels, which involves a major infrastructure to maintain. A comment was made the central insurance fund of $851,000, and health liability and workers compensation expenditures for all City employees is in the non-departmental general fund, but could be allocated to each department to show true operating costs of each department. It was noted the debt service on the Police Building is not included, and neither is the contribution to the capital improvement program. Ms. Wilson said a lot of the projects are one time projects, and figures can become skewed comparing one year to another. It was questioned when the City makes loans from the insurance cash fund, if it comes out of the $8,336,150, and if so, was it enough. The loans come out of the cash reserves of the insurance fund. The reserve is such that loans can be made without any problems. In response to a question, it was reported FIG (Florida Innovation Group) is a consortium of local and county governments in Florida. There are similar groups throughout the country, and the Florida group is linked to all of them. The City receives training, bi-weekly and monthly bulletins and newsletters with great ideas tried by other governments. Some of the City’s departments, such as the Code Enforcement Program and Information Technology, have been highlighted in the bulletins. It was noted the Florida Orchestra asked for a $5,000 increase, and the Commission will add this item to the list for discussion. City Commission Pages 21 and 22 include $3,000 for continued support of the Sister City Program. Two related issues are: 1) funding for marketing pieces for the winter Olympics in Nagano, Japan in 1998, including a county-wide effort to take advantage of the connection; and 2) the Mayor of Nagano has invited the City to host a hospitality center in one of the main thoroughfares in Nagano, which is also a county-wide effort. The City has two years to collect funding, and Ms. Deptula suggested placing money in the budget each year to establish a savings account for this type of activity. The Sister Cities program is a friendship link with Nagano, Australia and Greece. The Japanese sister city is the most active. The Convention and Visitors Bureau is taking the lead in the entire program. The Mayor is especially interested in funding the project. The City Manager reported the Mayor will probably request funding for travel to Nagano in connection with the Olympics in next year’s budget. Commissioner Seel noted the five commissioners make $78,000 in combined annual salaries. City Manager The budget reflects incorporating funding for one position and listing of two positions previously with the CRA. It was recommended to fund a third position for the CRA. Interviews for Economic Development at the Assistant City Manager level are scheduled for August 1 and 2, 1996. The budget includes Human Relations, Internal Audit, Community Response, Tourism and Organizational Employee Development. Of the two positions, only one is funded, for a total of $100,000, with $50,000 coming from CRA and $50,000 from the City’s general fund. Another $69,000 to fund the other two positions would be required. The budget reflects two additional positions in the Manager’s Office, with one person leaving the Manager’s Office. Office of Management and Budget Ms. Wilson indicated the staff of two was very competent. Management of productivity ratios and goals was added to this office’s responsibilities last year. Financial forecasting has been successful, coming within 1% to 2% of the actual numbers. Legal The Legal Department was complimented on minimal expenditures for outside counsel. City Attorney, Pamela Atkin, stated plans are to advertise for a part time attorney this year. One attorney was hired to handle lien foreclosures. To date, the City has collected $84,000 in cash and has scheduled short term payment plans on an additional $22,000. A list of properties for the foreclosure process will be submitted to the Commission next month. City Clerk City Clerk, Cynthia Goudeau, discussed the team building and reengineering efforts of the department. Inventorying records in City Hall to reduce the amount of space occupied is underway. In 1997, the reengineering process will continue. Plans include streamlining processes, becoming more user and customer friendly, and developing a designated research room for the public and other departments to use. The major focus in 1997’s budget is the optical disc storage system. It will eliminate the necessity of making paper copies of leases and other documents, which will be on computer files. Plans are to start slowly, and proceed in a logical manner. It was noted the City saves $30,000 when there is no election on the ballot. Revisit Capital Improvement Fund Two hearings on the budget are scheduled. It was noted changes requested for the capital improvement fund were incorporated after a full day meeting. Reference was made to page 299 on beach district renovation, and associated costs in moving the operation to the Civic Center. There is $325,000 in the current budget, and once the final determination is made as to the move, a scope amendment will be processed. Interfund Transfers The City Manager explained the philosophy and process of distributing interfund charges. She indicated this distribution allows a more accurate accounting of the cost for services. A concern was expressed that although this information was good, the cost of this process outweighed the benefit. An analysis of the cost/benefit of this effort was requested. Other Issues Staff Assistant and Administrative Support Manager for Economic Development It was agreed the issue would be put on hold until the meeting with DDB. Maintenance of St. Petersburg Junior College Fields - $60,000 Discussion ensued regarding the St. Petersburg Junior College wanting the City to assume responsibility for the fields at the college. The City can decide how to operate the two baseball fields and three soccer fields, either assuming total responsibility, or entering into a subagreement with another entity to help pay for maintenance expenses. Negotiations with the college for a short or long term lease would ensue. Ream Wilson indicated there is a possibility of the college deeding the property to the City. Operating expenses would include utilities, supplies and materials such as fertilizer, and other maintenance items. Total expenses would be $59,950 plus $22,000 for custodial services, however the first year costs would be eliminated in subsequent years. In response to a question regarding the City performing maintenance for property the City does not own, it was reported the City has an agreement with Countryside High School to maintain baseball fields. The City also has joint usage with the school system. It was noted there are very few facilities of this type in the City. Concern was expressed about setting a precedent for others to expect the City to maintain their properties. Mr. Wilson did not feel the City is setting a precedent. It is always possible future problems could occur, however none are anticipated, except to perform occasional re-grading. The largest users are the Clearwater Youth Baseball Program and the junior college. Should one entity be a larger user of the fields, the City would require some type of maintenance contribution. It was agreed the City’s Legal Department and other staff should meet with the college to determine whether a lease or transfer is better. It was agreed to tentatively consider putting this issue in the budget for $60,000. City Hall in the Mall Ms. Deptula stated of all items to consider on the budget list, this project, costing $37,560.00, would be the lowest priority. It was decided no one was interested in adding the item to the budget. Social Service Funding Ms. Deptula stated $62,000 in social service funding has already been approved. The initial unallocated funds were $206,570. After allocations for the fields at St. Petersburg Junior College, the Long Center position, the grant position, and the school crossing guard position, a balance of $92,480 remains. It was suggested the social service funding be increased by $38,000 to $100,000. Commissioner Johnson stated Quest Inn has been given $5,000 a year for the past seven years, and recommended $5,000 be granted this year. Ms. Deptula acknowledged her husband is on the board for Quest Inn as the Treasurer, but he did not put their grant application together. Commissioner Seel noted she is on the board for Community Pride, and they also requested funding. It was suggested the TRC (Technical Review Committee) be asked how to allocate the $38,000. Commissioner Clark stated he was uncomfortable with funding a salary. Consensus was to ask the TRC to review the funding request to make recommendations regarding the allocation of the $38,000, and to request the TRC base the recommendations on ranking of the organizations, and not recommend funding salaries. It was noted there is $58,480 still available for allocation in the final budget. Questions were raised regarding funding for CHIPS (Clearwater Homeless Intervention Program). It was stated while funding is in place for the construction and other expenses, it may be necessary to address ongoing operating costs. Marketing Pieces for Winter Olympics in 1998 Ms. Wilson indicated no actual figures were available, and the project was put on hold until further information is available. Nagano Hospitality Center Funding Ms. Deptula indicated $5,000 over and above the $3,000 for the Sister City Program for 1997, and $5,000 in the 1998 budget was recommended. It is not known if the City has received any commitment from CVB or anyone else. More details on the program will be made available before September. Commissioner Clark questioned whether $10,000 is enough funding for the hospitality center. Ms. Deptula felt it was not intended to be all the funding, but the City’s contribution toward a county-wide effort. It was agreed that more details were necessary before consideration to fund. Long Center Recreation Leader $7,370 Mr. Wilson indicated instead of one full time person, consideration is being given to employing two part time recreation assistants. The cost for two part time employees would be $17,200, revenues would remain the same, and net costs would be $3,640. The $3,640 was added to the budget. Grant Writer Position Ms. Deptula mentioned the Police Department has a grant writer who has been very successful. This position is being advocated because the City is missing out on a lot of grant money. It was felt a successful grant writer would bring in more money than their salary and benefits. It was suggested the City contact the junior college to ascertain whether an intern could fill the position while earning college credit. Further information was requested before approval of the position. Florida Orchestra $5,000 The Florida Orchestra has asked for an additional $5,000. Social Service Funding must be allocated prior to making a commitment to the Orchestra. School Crossing Guards Ms. Wilson said there is a need for .4 more positions, for a total of $7,500. The school board does not pay school crossing guard costs, and it was suggested annually the City write them a letter. It was acknowledged school crossing safety is important, but consensus was the school board should be responsible for costs. It was decided to add $7,500 to the budget. Non-Budget Item Schedule for Tuesday, July 30, 1996 The Commission was scheduled for an all day people mapping session on July 30, 1996, but another meeting has arisen. A meeting regarding Brownfields with federal and local officials from the EPA will convene at the Harborview Center at 9:30 a.m. The people mapping meeting will begin at 1:00 p.m. and should adjourn at 4:00 p.m. Adjournment The meeting adjourned at 3:01 p.m.