Loading...
2015.08.25_TC_Minutes_Workshop (2) TOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING BUDGET WORKSHOP MEETING Tuesday, August 25, 2015 Immediately following the workshop meeting Mayor Bernard Featherman called the Budget Workshop Meeting to order in the Town Commission Chambers immediately following the workshop meeting. CALL TO ORDER: Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor William Weitz, Ph.D; Commissioner Carl Feldman; Commissioner Louis P. Stern; and Commissioner Rhoda Zelniker. Also present: Town Attorney Brian Shutt; Town Manager Beverly Brown; Town Clerk Valerie Oakes; Finance Director Cale Curtis; Lieutenant Eric Lundberg; Building Official Mike Desorcy; Code Enforcement Officer Carol Holland; Interim Library Director Suzi Hayes; Utility & Maintenance Superintendent Bill Moore; and members of the public. Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence. Civility Pledge: The Civility Pledge was recited by the Town Clerk. 1. ADDITIONS. DELETIONS OR ACCEPTANCE OF AGENDA: Mayor Featherman called for any additions or deletions to the agenda. Receiving no additions or deletions, the agenda was accepted as presented. 2. PUBLIC COMMENTS AND REOUESTS: None. 3. PRESENTATION OF 2015 -2016 BUDGET: Town Manager Brown — There will be no formal budget presentation. Instead we will go through each department. Police Department: Commissioner Zelniker — How many employees are there in the Police Department that are not involved with the union contract? Lieutenant Eric Lundberg — There are four including the Administrative Assistant Deborah Holden. Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 2 of 10 Commissioner Feldman — Are the two reserve officers part of the union contract? Lieutenant Lundberg — No, they are not. They have some of the perks of the union but do not have union representation. Comm. Feldman — The $15,000 in the budget for uniforms for the 15 officers, is that given to them as a stipend or given to them in uniforms? Lt. Lundberg — It is given to them as a stipend. It is actually for care and maintenance of their uniforms and accessories. Most of the uniforms are provided. Vice Mayor Weitz — As opposed to giving the money to the officers, the Town could contract with a cleaning service that would provide the service directly. The Town could pay a single vendor directly as opposed to paying each officer individually. Finance Director Curtis — The contract states that it gets paid directly to them. Comm. Feldman — You have six cars but why do you have two unmarked cars? Lt. Lundberg — We utilize both vehicles for various things such as the bicycle and school bus enforcement. One is fully outfitted as a police vehicle with all the accessories, laptop and everything that is needed to perform the patrol function. Comm. Feldman — In the current budget we are servicing five cars, which is $2,000 for repairs and maintenance. There should be two services a year per car. Lt. Lundberg — It is usually more than that because the car is being used without running. There is a great deal of idling time that is not documented on mileage. Comm. Feldman — How many officers do you have per shift? Lt. Lundberg — There are three officers on days including a supervisor. At night, on one shift, we have a supervisor and two officers and the other we have a supervisor and one officer. Comm. Feldman — Does your accreditation officer have any other functions other than accreditation? Lt. Lundberg — He does training and accreditation and works the day shift. He flexes his schedule according to the shifts in order to train the officers. Comm. Feldman — We have overtime pay in the proposed budget. If we have Reserve Officers, why do we have overtime? Lt. Lundberg — The reserve is not a full time position, and they may not be available in which case an officer will be called in to work. Comm. Feldman — What is the $18,000 for special pay? Lt. Lundberg — Shift differential falls under that item. The night people get a six percent (6 %) differential for working nights. Comm. Feldman — The Police Department collected $1,000 in fines last year which seems very low. Lt. Lundberg — We are governed by the State of Florida and we get a very small percentage that comes back to us. Discussion ensued regarding the bicyclists on AIA. Lt. Lundberg explained the two abreast law and stated that he has given direction to his staff to enforce the law. They are to ride single file if they are not doing the posted speed, or ride two abreast if they are. Regarding the pedestrian crosswalks, there are duties for both pedestrians and bicyclists as well as automobiles to adhere to safely transit. The pedestrian has a duty to cross in a safe manner as well. Vice Mayor Weitz — Why is there approximately $3,000 put away for new hires? Lt. Lundberg — This year we are allocating for two, and this includes reserves, because when we hire reserves we are hiring them technically for full time classification because of the standards they have to adhere to. Vice Mayor Weitz — Are the trainings that are being budgeted required, or are they discretionary? Lt. Lundberg_ Most of them are required. Vice Mayor Weitz — We have a brand new facility and you have $3.000 budgeted for unanticipated repairs. Is there a problem that we don't know about? Lt. Lundberg — It is a budget where if any anticipated problems do exist, we do have money there to expend in the event that we have a problem. Vice Mayor Weitz — I asked Chief Hartmann for the accounting of mileage we are putting on the vehicles for the last three years. There is a great deal of budgeting for maintenance, service, repair and tire replacement. I understand that there are cars that are idling. We are putting in for two new cars next year and, in my estimation, some of these cars haven't even been broken in. What does annual sworn physicals mean? Lt. Lundberg — It is physical fitness for any sworn officer within the agency. By contract, our officers are able to get a physical Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 3 of 10 exam which encompasses heart, drug tests, etc. Vice Mayor Weitz — The money designated for the license plate recognition system was recommended to be removed by this Commission, not because we objected to the program, but because this program is still under review by the State of Florida and is currently not legally allowed to exist on state roads. We asked for this to be removed from this year's budget because it was already budgeted for last year. It was not spent or utilized. We have the money for it, and is available for when the State okays this program. Comm. Stern — I would like to thank you for the excellent work you have done in this town with the bicycle situation. I have looked at the budget and it is a best guesstimate. Comm. Zelniker — You have a police fund and residents of our community donate to this fund. How is it being utilized? Lt. Lundberg — It is a police foundation and has nothing to do with the Police Department. They are self - governed, have their own budget, and are there to support the efforts of the Highland Beach Police Department. With some of the money they have collected, they are going to purchase body cameras. Finance Director Cale Curtis — With regard to the comments made about the purchasing of two vehicles, there are no vehicles in this upcoming budget; it is for 2017. General Fund: Fin. Dir. Curtis — You were given an update of the proposed 2015/2016 budget as of August 4 1 '. I have incorporated all the changes you gave Town Manager Brown and I at that meeting. The most significant one was reducing the operating tax rate down to the rollback rate. That has reduced the budget by $488,000. The following are the changes made to the proposed budget. • Eliminated the cost for the consultant to provide a feasibility analysis study for the walk path. We replaced that with $100,000 for repairs and maintenance to the walk path. • Eliminated the $68,000 for the license plate recognition cameras. • Eliminated the $150,000 for the Library Terrace enclosure project. • Eliminated the Library Systems Analyst position at a total value of $130,000. We are proposing to replace that position with a Library Assistant at a much lower cost of around $67,000. • The Finance Department budget was reduced by $6,800 due to the newly awarded contract. All the above changes combined resulted in a change to the Reserve for Contingency for a reduction of $228,000. After we reduced the revenues and made the changes to the expenditures, the General Fund Budget still has a budget surplus of $464,000. Comm. Feldman — In Public Works, we added in $100,000 for the repairs of the walkway. We have the money and it should be done immediately, and not put in next year's budget. Public Works Director Soper informed us that there are some problems at this time. If something happens on the walkway, we are negligent because we know there is a problem. Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 4 of 10 William Moore, Utility & Maintenance Superintendent — This is feasible but a few things need to be done. We need to identify the areas. $100,000 will do approximately 4,500 linear feet. A few years ago we did 4,700 linear feet of repairs to the walkway and it was at $100,000. We could get the same type of deal at this time. If we are held by the constraints of the Town of Highland Beach's Purchasing Policy, whereas anything over $25,000 must go to bid, then this is impossible to do prior to the budget year. The Commission has the authority and the ability to forego that purchasing policy under emergency circumstances. If the Commission chooses to forego that purchasing policy at the next meeting, then in a very short timeframe we can have those repairs under contract and have them done. You need to recognize at this point that if you are going to spend $100,000 now and repair the immediate damage that is out there, my recommendation is not to wait three years as we did this last time to do the rest of it. If you start a maintenance and repair program, continue it in the next budget. Comm. Feldman — If we fix what is needed now, that will carry us through until next year. Then in the 2016/2017 budget we should have a referendum for the Town to see what they want to do with the walkway. Do they want a complete new walkway that would cost over one million dollars, or do they want to keep repairing it? If we went for a complete new walkway in two years, that would last us ten to fifteen years with the proper installation. Comm. Stern — I think if we repair it now, we will have wasted another $100,000 when we do need a new walkway and we need it now. While I was in Orlando, I spoke with three different companies. The problem is whether you use asphalt, cement or pavers. They stated to me that we do not need to get our own engineer. They will supply the engineer. The Town Manager needs to contact these companies and bring in someone almost immediately. They could do the engineering, give us the cost and it could be done very quickly. My recommendation is that we prepare what is needed for liability purposes and not spend any more money. We need to move more quickly and put it on a referendum sooner if possible. Comm. Zelniker — I feel strongly about getting a referendum passed. I believe the residents of our town want this. This needs to be done. I feel we are wasting money on patching the sidewalk. Vice Mayor Weitz — You really don't know what all the residents want. We need to gather all the information, and if we choose to move forward with it, then we can put it out for a referendum. Timing is very essential in getting a referendum placed on the ballot. Superintendent Moore — In response to Commissioner Stern's question regarding the type of pavements, asphalt is in the $800,000 to $1,000,000 range; paver bricks same range; concrete the $1,000,000 plus range. (Mr. Moore explained the difference between the three types of material.) If you provide $100,000 at this time, we can identify the remaining areas that need to be done. It will carry you through preparations for a referendum, and it will allow you to find out whether or not the people want what they want and how fast they want it done. Fin. Dir. Curtis — Amending the budget is the easy part. The Commission has the right to waive the three bid process for anything over $25,000 under an emergency type purchase. We would need both actions from the Commission. One to amend the budget to allocate $100,000 for sidewalk repairs, and the other to waive the competitive bidding policy. i Consensus was to place this on the agenda for September 10' under New Business. Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 5 of 10 Town Attorney Torcivia — If you are thinking of a referendum to be placed on the ballot for March, it would have to get to the Supervisor of Elections by the middle of January. Perhaps you should put in a Request for Proposal relatively soon and receive the quotes in by November so you would have time to put it on the ballot. Town Manager Brown — We would have to have it finished by November to get it on the March ballot. Superintendent Moore — You could do a not to exceed $1.25 million referendum for example. You could get a cost within a matter of days. Water Department: Vice Mayor Weitz — We have a study going on to determine appropriate rates of water utilization so we can better determine that we don't run into deficit. When will we have some data on this study? Fin. Dir. Curtis — We should be getting our first revenue forecasting within the next couple of weeks. They will finalize their report within the next month or so. Maintenance: Vice Mayor Weitz — In the Public Works budget there is a contract for janitorial services for $60,000. What buildings does it cover? Superintendent Moore — It covers Town Hall, Commission Chambers and Police Dept. for five days a week. It covers the Public Works building as well. It does not include the Library. Vice Mayor Weitz — Could you explain why you are asking for $60,000 for janitorial services and the Library has their own individual person to perform those services? Superintendent Moore — The Library was under a different management, and that is how they wanted it. Vice Mayor Weitz — When that person is not available we have to pay additional monies to contract for cleaning services for the Library. In my estimation, it is costing an additional $60,000 to $70,000 for that individual plus money for contracting when that person is not there. I would like to see the contract service be expanded to include the Library. Superintendent Moore — I obtained a price for contract janitorial services of $12,000. Comm. Feldman — There is an additional $5,000 for cleaning supplies for the Library plus $2,500 for janitorial services when he is not there. We are paying close to $80,000 for this one building. I understand that he does other things within the Library, but we should be able to get someone for less money to do whatever his duties are. Vice Mayor Weitz — It is my recommendation that we remove the janitorial position from the Library, and allow us to move toward an integrated cleaning service which has financial as well as supervisory benefits. Fin. Dir. Curtis — Are we eliminating a position altogether in the Library, or moving that position to another area? You want to expand the janitorial contract to cover the Library which would then take up the majority of the duties this individual has in the Library. Vice Mayor Weitz — The position calls for janitorial services and my recommendation is to eliminate this position from the Library. Town Manager Brown — He also does some work for the Public Works Dept. such as picking up the trash on the beaches and the sidewalks. In addition to being a custodian, he also sets up the Library for their concerts and their activities during the day. If we eliminate this position, I don't know if the Public Works Dept. will have sufficient employees to cover these duties during the day. Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 6 of 10 Superintendent Moore — If you eliminate this position, you would need to put a position back into public works to be able to accommodate having someone perform these duties. Vice Mayor Weitz — The police have reserve personnel that they utilize on an as needed basis who are paid on an hourly basis. An hourly worker for a set amount of hours could be established to perform those functions, and is reasonable instead of the cost of a full time employee. Library: Mayor Featherman — You have instituted some things already since you have become the Interim Library Director. Interim Library Director Suzi Hayes — I have streamlined a number of operations and saved a good deal of time which translates into money. The cataloging records are now automated, and the public can get the books several days sooner than they previously were. Comm. Feldman — What additional personnel will you require for the Library to function the way you would want it to run? Interim Library Dir. Hayes — We are operating with essentially two full time positions less than we had a few months ago. The positions that we have at the moment have to do with being able to operate the Library safely during all of our operating hours. The cutback hours during the summer enable us to do that with the shorter staff. If we go back to the regularly established hours Monday thru Friday closing at 8:00 PM, which the public has enjoyed, we do not have enough staff to keep the Library opened that many hours a week. We physically cannot do it. It is a safety issue to not have two Library staff members on duty at one time. We have two part time vacancies at the moment, and rather than hire two part time people, I requested a full time person. Comm. Feldman — Was the former IT person also an assistant? Interim Library. Dir. Hayes — He was the Library Assistant. The full time person would fulfill that position but not the IT portion. Are you familiar with the new Library service the Commission has been talking about? Interim Library Dir. Hayes — I am very familiar with it since it was proposed at my previous position. Comm. Feldman — I would like Interim Director Hayesto be part of that selection and give her input when they present it. Vice Mayor Weitz — In the proposed budget there is an item for flooring in the Library. Interim Library Dir. Hayes — There was a bid solicited for the purpose of getting an estimate into the budget. It was for laminate flooring, but the Library staff did not think it was practical because it is noisy and slippery. Carpeting is considerably less expensive. We will have to go out to bid and make a decision on this. Vice Mayor Weitz — Have we put in safeguards and controls to ensure that our equipment is identified and protected, and that we have a system of control so we know what equipment and devices we have? Interim Library Dir. Hayes — Moving forward, yes. We are making an effort to identify and be sure that everything matches up with the purchases. We have also inventoried all the artwork and sculptures that have been donated over the years. There is a very large book with all of that documented and the artists identified. Hopefully that will get evaluated in case we need additional insurance. Comm. Stern — I want to thank you for what you have done so far in the Library. Comm. Zelniker - What do the residents pay for the yoga and massage classes? Interim Library Dir. Hayes —They pay $10.00 per session. Currently we do not require attendees to be town resident, and there are also a number of people who come from adjacent towns. Comm. Zelniker — It is up to the Commission to decide, but I would like to have the Town sponsor these programs so the residents would not have to pay. Interim Library Dir. Hayes — I am doing a modest hourly payment to the instructors who get the benefit, and also allowing for a few other programs we had in mind. It would Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 7 of 10 be approximately $12,000 per year for adult programs. The concerts are not included. They are paid for by the Friends of the Library. Town Manager Brown — Interim Director Hayes came in at a very difficult time and she has improved the morale of the Library. Employees have told me how nice it is to work for her, and she has brought in some very innovative ideas. Building Department: The Commission had no questions regarding the Building Department portion of the budget. Personnel: Comm. Feldman — The Town pays $27,000 a year in retirement money for the Commission. If we can, I would like to get out of this pension plan because I think it is a waste of money. This would be a great savings to the Town. We have also cut one addition of the Highlander newsletter. Regarding the town employees, I feel they should be given a three percent (3 %) raise in pay at the beginning of the year and no COLA. I feel the longevity should be a one -time bonus when they reach the plateau of their longevity. At the end of ten years they get a two percent (2 %) bonus; when they enter into their IP or 14 year they get a three percent (3 %) bonus and when they enter into their 15 year they get a four percent (4 %) bonus. Fin. Dir. Curtis — Would you find it appropriate to have a number for 20 year employees? Comm. Feldman — We could have a five percent (5 %) for 20 years. Fin. Dir. Curtis — We will come back to the Commission with some type of longevity program. Vice Mayor Weitz — I am in support of Comm. Feldman's concept regarding the three percent (3 %) raise and the longevity pay. Back in 2007 and 2008 when the property value had decreased from the present $2.3 billion down to $1.7 billion, do you know what the merit increases were at that time? Fin. Dir. Curtis — The merit increases stayed at five percent (5 %). No one was laid off, fired or given any reduction in hours. Vice Mayor Weitz — My position is that even in times of difficulty and distress, there were no employee loses at all. The issue here is whether we can afford to continue to increase the salary structure of this town, the benefits, the retirement and the health insurance in a financially sustainable way. When property values were down and the millage rate had to be increased, why did the employee merit increases remain at the five percent (5 %) at that time? Fin. Dir. Curtis — The five percent (5 %) merit increases stayed the same. However, prior to 2008 the employees received the Cost of Living Adjustments and the five percent (5 %) raise and longevity bonuses. After 2008 the COLA and longevity bonuses went away. Prior to 2011, the retirement system was non - contributory. After that date, the retirement system became contributory. All employees began contributing three percent (3 %) of their pay. To say that the employees have not forgone any concessions during these difficult times is inaccurate. Vice Mayor Weitz — I am in support of increases, longevity bonuses and performance bonuses. I am not in support of the same amount of increases to all employees no matter what their job title is. Comm. Stern — Did we come up with a chart of what other towns of our size are now paying? Town Manager Brown — We did not get sufficient information from a town of our size. Most of the towns our size had the two percent (2 %) COLA and the two percent (2 %) merit or step increase. Comm. Stern — The problem here is that the five percent (5 %) should not have been automatic. Department Heads did not give the merit raises properly. That was a mistake, and one that we are going to correct now. I probably could settle with three and half percent (3.5 %) at the moment, but I would like to see Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 8 of 10 us put back some type of incentive program where the department heads give legitimate, not mandatory or automatic increases. If we do that, I think we can make our employees happy, and I would be happy. We have the money, and we just cut our budget by $1,500,000 and we still have $4,000,000 plus in reserve. The employees have given back over the years, and hopefully we can come up with a program today that gives them a minimum of 3 -1/2 percent and something we can afford. Mayor Featherman — We have good employees and I don't want to see them penalized. However, we do have to consider what is good for our residents and our Town. Comm. Zelniker — I am in agreement with the performance bonus for employees that save the town money. At the Florida League of Cities Conference, I spoke with other towns and not one of them have the health care that we have. How much are we paying for our health care? Town Manager Brown — It was $69,000. Comm. Zelniker —One of the Financial Advisory Board members stated that we have very high reserves; over 11 million dollars. He suggested that we go to a neutral number for our millage rate which Fin. Dir. Curtis said was three and half percent (3.5 %). 1 feel that we should grandfather some things that have been given to people when they took the job. Some of the things we want to implement could be for new hires. There has to be a solution for everyone. We like our employees. I want people to be safe and have a job. We just feel that we all have to give a little bit in the world that we live in today, and the employees have to take that into consideration as well. Comm. Feldman — I definitely would like to consider getting out of the retirement program from the State so the Town does not have to pay the $26,000 a year. We can cut out at least $5,000 from the Commission for travel. If you go to the Florida League of Cities one year, it is not necessary to go three years. It should be for a newly elected commissioner(s), and a maximum of two. As far as the pay raises, I would like to give a three percent (3 %) increase at the beginning of the year, and we definitely should have a merit program for people who can save the Town money. Fin. Dir. Curtis — The Florida Retirement System participation for the Town Commission is a mandatory participation for all employees. The individual Commissioner can opt out within the first six months of them holding office. Comm. Stern — We have not raised taxes in a number of years. We only had to do so one time about three or four years ago. We have not continually raised taxes, and I do not see us going lower than the rollback rate. That is as low as we should consider. I am still for three and half percent (3.5 %) minimum at the beginning of the fiscal year in October for employee merit increases, through their supervisor, if they do a great job. We have great employees and I would like to see us maintain a good rapport with them. Vice Mayor Weitz — Governments have standards and limits in terms of what is reasonable to pay their employees in certain positions. It should not be governed by the wealth of the town or its residents. I am in favor of an increase of three percent (3 %) but not four (4 %) or five percent (5 %) and also the performance award which should be restricted and limited. Mayor Featherman — I feel the pay increase should be three (3 %) or three and half percent (3.5 %), and have taken into consideration everything the Commissioners have said. I would like to know what their benefit package is. Comm. Feldman — I would like to add the vacation days, holidays and the personal days into the benefit package. The employees will see exactly what they are getting; not just the hourly rate but the entire i Town Commission Budget Workshop Meeting Minutes Tuesday, August 25, 2015 Page 9 of 10 package. It is fair and an excellent package, and I see no problem with it. My feeling is a three percent (3 %) raise, an incentive program if someone can save the town money, and keep the benefit package that they have now. Discussion ensued amongst the Town Commission regarding what percentage the millage rate should be set. There was also a discussion regarding the employee merit increase and benefits. Town Manager Brown — I recommend a three and half percent (3.5 %) merit increase, but have the employees contribute three and half percent (3.5 %) towards their insurance. Comm. Feldman — If you have them pay more for their insurance, you are taking more from the employees. Fin. Dir. Curtis — For family coverage, the premiums are around $30,000. There is an additional dollar amount for dental and vision. For dependent coverage, the employee kicks in about 15 %of that. Consensus was to give the employees a three percent (3 %) merit increase at the beginning of the year, and keep the employee benefits the same. Fin. Dir. Curtis will implement the changes on the different millage rates proposed. He will keep the millage rate at the rollback rate, at this time, and it will show a surplus which can be adjusted at the September I O meeting. 4. COMMISSION BUDGET MEETINGS: • September 10, 2015 — First Budget Public Hearing — 5:01 PM • September 24, 2015 — Second Budget Public Hearing — Set Millage Rate and Adopt Budget — 5:01 PM 5. PUBLIC COMMENTS AND REQUESTS RELATED TO AGENDA ITEMS DISCUSSED AT MEETING ONLY: There were no public comments or requests. 6. ADJOURNMENT: There being no further business to come before the Commission, Mayor Featherman called for a motion to adjourn the Budget Workshop Meeting at 5:10 PM. MOTION: Commissioner Feldmam moved to adjourn the regular meeting at 5:10 PM. Motion was seconded by Commissioner Stern which passed unanimously. i Town Commission Budget Workshop Meeting Minutes Tuesday, Ausust 25, 2015 Pate 10 of 10 APPROVED: Bernard Featherman, Mayor -Z 1 /�Z' William Weitz, Vice Mayor o ' Stern, C9 Carl Feldman, Commissioner d Z ATTEST: i0 I Valerie Oakes, CMC, Town Clerk Date