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HomeMy WebLinkAbout02-07-2007TO: Members of the Sebastia ity C cil FROM: AI Minner, City Manag RE: FEBRUARY 2007 C R TOPIC UPDATE DATE: Wednesday, February 7, 007 In the past, I have provided informational memos to Council in an effort to keep all informed about various matters occurring around the City. For sometime now, I have not been able to provide you an update. In fact, it has probably been well over a year since the last "update" memo. Council member Neglia spoke to me in regards to this several weeks ago and stated that it would be helpful for Council members to have such a memo again. I will do my very best to provide you at least a monthly update. I will try to bring up as many issues as I possibly can, please let me know if you are happy with the report and if it is addressing the issues that are most relevant. BUILDING FUND By the end of the first quarter of FY 07 (December 31, 2007), the Building Department Fund experienced a major slow down in permitting. Permit activity has decreased from a high of 1,286 total permits issued in January 2005 to a low of 152 permits issued in November 2006. More alarmingly, residential permit issuance, which is the "bread and butter" of the Building Fund, has dropped off at a greater pace. For instance, in January 2005, 69 residential permits were issues versus just 6 in January 2007. Below is a chart that shows the last seven months of activity. MONTH TOTAL PERMITS RESIDENTIAL COMMERCIAL July 2006 384 33 1 August 2006 384 15 2 September 2006 279 18 1 October 2006 188 6 2 November 2006 152 5 0 December 2006 202 9 3 January 2007 198 6 2 In financial terms, if this trend continues the Building Department Fund has the potential to suffer a $319,000 loss this fiscal year. While the Building Department Fund has a reserve balance of $1,478,145, it is large enough to absorb the loss. However, if nothing in done to mitigate the trend, the reserve could be depleted in less than five years. It is reasonable to allow the reserve to accept some loss. How much loss is the critical question. Reserves in their very nature are designed to protect against the "rainy day"; however, this capital reserve also has the reasonability to make (1) capital improvements to improve service delivery; and/or (2) keep building fees at a reasonable rate. In reviewing this situation, it is staffs opinion that some type of counter measure needs to taken in order to minimize the financial loss this fiscal year. To save money, obviously, expenses must be cut. This is easier said then done, especially in a fund where 80% of expenses are comprised of personnel costs and an administrative fee payment to the General Fund. There is always the option of increasing fees, but when one views the permitting activity, a fee increase would not bring sufficient funds to stave off a loss this fiscal year. Simply stated, to reduce financial loss, positions must be eliminated and moneys to the general fund trimmed. To date, a few scenarios were run which include (1) doing nothing; (2) reducing the administrative charges for service only; (3) transferring or eliminating personnel only; and, (4) a combination of both. After discussion with Wayne Eseltine, Debbie Krueger and Shai Francis, it was determined a hybrid approach was the best method to generate some immediate relief. On Wednesday, January 31, 2007, 1 announced to the Building Department staff the anticipated financial short fall and the avenues we have developed to minimize this situation. The measure, which I have already put into place, includes (1) a reduction in the Administrative Fee payment to the General Fund by $66,622; and, (2) Alma Haynes (Permit Technician) accepted a voluntary reassignment to the Finance Department to work as the Payroll Clerk (Alma has an accounting background which qualified her for the position). The personnel transfer was available because the Finance Department restructured when Nancy Viedt accepted the promotion to Junior Accountant. Actually, the timing of the change fit the organization well and has the potential to realize a $17,000 savings. In addition to the financial and personnel changes, Building Department staff will be assigned to various other assignments such as cataloging and microfilming permit records/plans for archive purposes and assisting code enforcement personnel with construction related site issues such as swale blockage, silt fences and cleanliness. After making these changes, I have estimated that a savings of approximately $85,000 can be realized, reducing the scheduled loss to $234,000 for FY 07. For the long term, a loss of $234,000 is still not acceptable, however, this move does reduce the projected loss by 25% and allows the City to monitor the market place for the next quarter. Further, capital expenses such as the purchase of a scheduled new truck and other items have been stopped. In slightly more detail, I want to bring your attention to the reduction of administrative fees. While this does help the Building Fund, making this financial change will reduce General Fund revenues. While this is not the best practice, the General Fund offers some other avenues to absorb the loss such as not replacing personnel and some additional contingency. This will be monitored closely during the remainder of the year. The positive side of this action, is it provides immediate relief to the Building Fund while providing staff with more options in the General Fund for curbing financial loss. One other item to consider is the elasticity of the building market. Its volatile nature should provide some cause for considering how to manage this problem. It is anyone's guess how long the construction market will be slow. One thing is for certain, eventually it will return. Some guess that this return will occur in the next two years. At this time, my recommendation going forward will be to watch the market and adjust accordingly. This summer's budget process will provide another good opportunity to review and adjust further. INDIAN RIVER DRIVE/MAIN STREET IMPROVEMENT PROJECT (CRA) At the December 13, 2006 meeting of the CRA, the Council approved the purchase of Bettina Boudrot's property on 1302 Indian River Drive. That purchase was closed on January 9, 2007 and the City is now the owner of the property. Currently, the Street Division of the Public Works Department is planning to demolish the structure. The demolition should take place in the next few weeks. Jerry Converse is completing the permitting (i.e., asbestos removal). Please keep in mind that this task must be weaved in between other projects such as completing a few of the pocket parks, sidewalks (assistance to Jack Regan) and the Yacht Club renovation project. In addition to making plans for removing the house, the City Manager's office has begun the Request for Qualifications (RFQ) process for selection of a professional engineering firm that will design the proposed improvements. Please keep in mind, that when conducting an RFQ, the City must follow Section 287.055 of Florida State Statutes, commonly know as the Consultants Competitive Negotiation Act (CCNA). The CCNA requires that professional services such as legal, architectural and engineering be ranked and hired according to qualifications; not price. Hence staff has prepared an RFQ process and designed criteria to rank the firms. Based on this process, staff will recommend the top three firms and Council must conduct interviews to select the "best qualified" firm. Once Council ranks the "best qualified firm", a contract price is negotiated and the design contract is awarded. Should mutually agreeable terms not be reached, the City can negotiate a contract with the firm ranked "next best' Staff kicked off this process last week and qualified firms have been asked to submit their information by February 20, 2007. A committee made of Dave Fisher, Rebecca Grohall and myself will prepare the initial ranking recommendation based upon criteria in the RFQ packets. It is anticipated that this information will be before Council sometime in early March. A special meeting will probably be required to interview and rank the firms. Following, it is reasonable to assume that a contract can be awarded by late March to begin the design process. Below is a rough time line estimating the important milestones for overall project completion: ITEM RFQ Processing for Professional Design Services Ranking and Interview Process for Engineer Selection Engineer Professional Service Contract Award Design Time w/ Public Workshops Project Bidding Project Construction Project Completion ESTIMATED COMPLETION DATE January/February 2007 March 2007 No Later than March 28, 2007 July/August 2007 September 2007 October 2007 April/May 2008 To date, the CRA has allocated $801,242 for this project. To date, approximately $408,600 has been spent as follows: ITEM , AMOUNT Purchase w/ Closing Costs $395,000 Appraisals $6,350 Preliminary Engineering Concepts (Neel Schaffer) $7,250 TOTAL $408,600 This fiscal year $392,612 remains allocated for the project. It was a very early estimate that the total project would cost approximately $1,500,000. From the remaining FY 07 funds, enough money should be available for design fees and a good portion of the construction costs. As predicted, the project may need a short term financing vehicle, but this is an affordable venture in light of the fact that CRA revenues should be over $400,000 for the next several years. To find other avenues to finance this project, the Growth Management staff has applied for a $455,000 grant from the Indian River Lagoon Estuary Program. This grant should defer a considerable amount of the project costs, as some of its scope relates to better stormwater quality of the Indian River. Staff should find out the results of our application shortly. Aside from these preliminary financial planning actions, a portion of the design concept will formalize construction costs, enabling us to prepare a more detailed budget going forward. YACHT CLUB RENOVATION The Street Division of the Public Works Department continues to make progress on the Yacht Club Renovation Project. While I will accept responsibility for the length it has taken to complete this project, please keep in mind the many tasks this division performs which causes their continued reassignment from any given project. Some of these assignments include helping with the construction of the pocket parks, Clam Bake set-up, demolition of the Cain House, demolition of the "old" Chamber structure, assistance with tree removal during hurricane Wilma (summer 2005) and the list really continues without mentioning their regular road maintenance duties. There was also a several month delay caused by me, when I asked the Council to consider demolition of the structure when the Main StreettIndian River Drive concept was first discussed. Also keep in mind that this division is comprised of about 10 employees. After all the excuses, the Yacht Club building repairs should be complete in the next two weeks. The only items remaining are some exterior painting of stucco and the remounting of the cupola. On the inside, plumbing fixtures and base trim need to be installed. Once all the building issues have been completed, our crew will have performed the following improvements: (1) gutting of the facility providing a more spacious layout; (2) installing new handicap bathrooms; (3) complete new electric; (4) new a/c; and, replacement of doors and windows, just to name a few accomplishments. Upon completion of building issues, the crew will begin landscaping improvements around the Yacht Club parking lot and boat ramp. These improvements are scheduled to include new planting material, sidewalks, railings, irrigation, lighting and new asphalt/striping. In conjunction with the Engineering and Growth Management Departments, a coordinated effort is in process to design site improvement. I anticipate having these improvements for your review by the February 28t' meeting. PUBLIC SAFETY ANSWERING POINT (PSAP) On December 19, 2006, the Indian River County Commission approved a $180,000 expenditure to allow the City of Sebastian to operate all 911 emergency calls. Better known as the Public Safety Answering Point (PSAP), the City supplemented the County contribution with $80,000 for the required one-time capital purchase of required equipment. Now the Police Department is moving forward with the purchase and on February 9" has a planning meeting with Bellsouth to establish the required switching and routing service. If all goes as planned, the system should be up and running in approximately six months. Just as a reminder, the County will be responsible for the monthly routing bills, which are estimated at $1,500. This is the same program that the City of Vero Beach operates with Indian River County. TWIN DITCHES Dave Fisher issued the notice to proceed to Master Excavators, Inc. on February 5, 2007. This will start the construction of the Twin Ditches project. The Contract provides 270 days for the company to complete the project. Again, this project removes the dirt dividing wall from the ditch and lessens the severity of the slopes. In addition, the head wall for the ditch will be improved which is located near Wimbrow and Main Street. The project's focus is to improve the ditch and allow for more detention/retention time improving stormwater quality. OLD CITY HALL PROJECT AND IRCC LEASE E&D Construction is moving along with the renovation project at the old Sebastian City Hall. Interior demolition has been completely finished and the new construction has begun in earnest. New ceilings on the second floor have been installed, the bathrooms have been reframed and made ADA accessible, electric is approximately 90% complete and colors for interior painting have been selected. E&D is also starting preparation for the installation of the elevator. Additionally, the Historical Society paid the change order to remove and save all the rolling file shelves in the old Clerk's Record vault. If all continues to go in a positive direction, E&D should have the project completed by its contractual deadline of April 23, 2007. As far as Indian River Community College, staff has submitted to Katie Nall a draft lease. The lease would allow IRCC to use the old Council Chambers for classes this summer/spring and move into the renovated second floor this fall. The proposed lease charge to IRCC is $25 per class per occurrence or a maximum of $1,000 per month to use the old City Hall and $50 per class per occurrence or a maximum of $2,000 per month to use the second floor. The lease term is three years and provides electric, water and sewer utilities but requires IRCC to pay for phone, internet and other communication connections and premiums. In addition, as part of the lease, the City has proposed that IRCC provide supervisory, harassment and some police training for City employees as part of the payment for space rental. COUNTY FIRE DEPARTMENT Indian River County officials are still seeking a place to locate a new Sebastian Fire Department. They are of the opinion that the current station on US 1 is too small and lacks some other operational benefits. The County prefers to stay east of the railroad tracks but would consider a site west if the right circumstances present themselves. One of the locations the County would like to consider, west of the railroad tracks, is here at the Sebastian City Hall complex. My staff has provided an aerial map of our current complex, which shows a potential 2.92 acres site for the County that could be made available. This may require some redesign of the stormwater retention and demolition of the old public works offices. Keep in mind as well this is also a proposed location of the Community Center. In short, I am seeking your feed back as to whether the City Council would like to entertain this proposal. EASY STREET As you know a grant was not received for Easy Street. However, we did budget $200,000 for the project as a grant match and other monies can be generated by (1) shifting the FY 07 asphalt budget ($112,000) and Barber Street Realignment Project ($400,000). In all, this has the potential to create a $712,000 budget for the improvement of Easy Street without the grant. While this budget is not the amount needed to completely rebuild a new street with improved drainage, base, sidewalks and other associated improvements, it does provide a good budget for making significant improvement to the street. Currently, the Engineering Department is studying the issue and I am hopeful in the next few weeks their report will be complete. At this time, I am expecting that Mr. Fisher will provide a budget and a direction for improvement of Easy Street. TRAFFIC ENGINEERING REPORT AND BARBER STREET/SCHUMANN INTERSECTION With much discussion occurring concerning traffic situations such as the Barber Street realignment, Barber/Schumann intersection, Fleming Street extension and Power Line Road construction, I have begun to refocus staff efforts to better study the long-range transportation issues that affect the City of Sebastian. To that end, Dave Fisher and Rebecca Grohall, have been assigned to the MPO Technical Advisory Committee (TAC) Committee. In addition, I will be making more time to become fully up to speed on those issues as well. In addition, Dave Fisher is preparing a traffic study, which should help narrow some of our focus. I am hopeful that the report will be ready in the next few weeks. As well, I wanted to bring your attention to a County Issue. At an MPO meeting, the Mayor Burkeen requested that in junction with the 6e Avenue project, which widens the road up to City limits, that the County also change the signalization and add additional traffic lanes to the Schumann/Barber Street intersection. The County has moved forward with this proposal and at a meeting on Tuesday, January 30t', City staff along with Joe Baird, Bob Keating, Phil Matson, Jim Davis and Stan Bowling discussed this item. The cost of the Schumann/Barber Street improvement could be approximately $2.5 million and County staff is planning to make a recommendation to the County Commission that Sebastian pay a share of this improvement. Schumann is a major arterial road that connects northern county areas with the south. This is a perfect project to ensure that Sebastian tax payers receive their fair share of MPO dollars and our County officials need to hear our voice on this issue. At this time, I am unsure when this item will be placed on the County Commission agenda. However, it is one that we need to follow and to date I have had an opportunity to speak with one County Commissioner about Sebastian's position on this important capital project. CLEANING SERVICES RFP After the incident at the Community Center, the Maintenance Division of the Public Works Department has done a very good job of keeping our current janitorial service provider, Ninety Five South, Inc. (Vero Beach, FL), performing. We have not had significant issues with the company since then and their cleaning efforts seem to be improved. This does not however, change our direction to seek some other avenues for janitorial services when their contract expires on July 5, 2007. As we reported, there may be a case for bringing these services "in-house". To this end, I am planning to start a new RFP process for janitorial services. The RFP will be posted and advertised this week with a bid deadline of March 15th By mid -late March new bid numbers, as well as revised estimates to complete this task with new City forces, will be ready for review. Should the City opt to bring this task on internally, approximately 90 days will be required for personnel recruitment and training prior to the end of the current Ninety Five South contract. RIVERVIEW PARK LIGHTING/ELECTRIC REPAIRS (CRA) For the last several weeks, the Public Works Department has been in contact with Ali Qizilbash of Progressive Engineering. Mr. Qizilbash is preparing a construction specification and survey of Riverview Park to assist the City in our efforts to install historic lights, electric pedestals and re- wire existing services at the park. The cost for said service is $3,200. This effort is important because it will provide a schematic, which will be used in bidding the improvements. The survey and drawings should be complete by the end of February, allowing the City to go to bid on this project. If you recall, this project is applicable to the $96,700 allocation in the Community Redevelopment Agency Budget entitled "Corridor Street Landscape". Further, the project will receive an additional subsidy in the amount of approximately $25,000 from the 2006 Clambake Foundation Grant. CODE ENFORCEMENT MONTHLY REPORT In an effort to keep the Council informed about Code Enforcement activities, the Growth Management Department will be completing a monthly report. The report is aimed at providing data concerning the amount and types of code violations processed. In January 2007, 490 total violations were issued. This report has been delivered to your mailboxes in the City Clerk's office. As always, should you have any questions concerning these or any other matters, please feel free to contact me at your earliest convenience.