Loading...
HomeMy WebLinkAbout06142010BUD Minutes2. The Pledge of Allegiance was recited. 3. Roll Call: Members Absent: Brad White (unexcused) 4. Approval of Minutes May 3, 2010 HOME OF PELICAN ISLAND City of Sebastian Citizens Budget Review Advisory Board Minutes Monday, June 14, 2010 6:00 p.m. City Council Chambers, City Hall 1225 Main Street Sebastian, Florida 1. Chairman Herlihy called the Citizens Budget Review Advisory Board meeting to order at 6:00 pm. Members Present: Ed Herlihy (Chairman), Adrina Davis, Jerry Klenck, Edward Kroah, Harry Marshall, Christine Vicars Staff Present: City Manager, Al Minner; Administrative Services Director, Debra Krueger; Finance Director, Ken Killgore; City Clerk, Sally Maio; Police Chief, Michelle Morris Jerry Klenck requested correction to the bottom of page two to state that Melbourne and Eau Gallie were to merge into a "city" rather than a "county MOTION by Jerry Klenck and SECOND by Mr. Davis to approve the May 3, 2010 minutes as amended passed on a voice vote of 6 -0. Citizens Budget Advisory Board Minutes June 14, 2010 Page Two 5. Review Recommended Fiscal Year 2011 Proposed Annual Budget (proposed budget attached) The City Manager gave a power point presentation and elaborated on certain of the issues. The power point slides are attached as Exhibit A. In regard to the municipal garage issue, he said staff had looked at contracting services, and though there is not a final answer on this, he recommended, after explaining the differences between in -house and contract cost scenarios, retaining the current garage position for 2011. He said this was based on cost unknowns, union provisions which would allow bumping and eliminate a position elsewhere in the City, and questions of management of a contract system. He said he has frozen the purchasing ability of the garage personnel at this time, so that purchasing can be tracked to determine if there is an inventory issue. In closing he said we are currently $101,268 in the red, and listed the proposed balancing measures (see slides for list). Updated Assessed values numbers will probably go up in July when new estimates come in Reserve Spending can use reserves Tax Levels can adjust Personnel Benefits noted that certain of the options are items which would have to be negotiated with the two unions such as health care contribution of $25 per person per pay period, stopping longevity which would save $16,000 in 2011, restricting take home vehicles. He said he believes we can present to Council a 3.3456 millage rate, noted that residential sales are starting to move and as long as we have movement it will stabilize the assessed value numbers in future years and will eventually start to grow, and said we need to plan smaller increments of growth. He cited the weaknesses of the plan are that we are continuing to rob Peter to pay Paul, Peter being the special revenue funds (local option gas tax, stormwater fund) and Paul being the general fund. He cautioned that these transfer levels cannot continue into future years, but to fix that this year, millage would have to be increased to 3.6124 mills. The City Manager did not address special revenue funds or enterprise funds and suggested the Board may want to consider one meeting to discuss those funds. Chairman Herlihy asked for any questions from the Board. Mr. Davis asked how personnel took the information on the $25 per pay period health insurance contribution, and the City Manager said not well, noting that personnel has taken it on the chin the last couple of years with furloughs, no merit, no COLA and now we are asking them to do it again. He said, however, he would not be doing his job if he were not being competitive, stating the market is currently favoring the employer and the City needs to take advantage of that and has to make tough choices. Citizens Budget Advisory Board Minutes June 14, 2010 Page Three Jerry Klenck said he had submitted a handout prior to the meeting (see handout attached) and was trying to figure out why there was a $55,000 figure cited for one employee. The Administrative Services Director said we have dropped two positions at the garage. The City Manager referred back to his slide on the garage and explained how the figures were derived. Mr. Klenck said staff showed two and one half employees and then dropped one employee from last year and it went down $55,000. The City Manager said we are trying to keep a garage with two employees, one mechanic and one assistant and that is a reduction, that at one time was it was three and one half and is now two. He said we lost two full timers this year and thinks if we keep the garage, we need two full time employees and if we contract it out we still need to keep the mechanic and that will cost us $55,000. He reiterated if we keep a garage we will have two full- timers which will put us in the area of $107,000, if we contract it will be one full- timer. He said the argument is, if we go to contract, do we need to keep the existing position, and he would argue we don't, but because he has agreed to certain things in a contract he can't just eliminate the position, because that person would then be eligible to bump and then he would lose another position. The City Manager said the reason he didn't bid out the garage was because of uncertainty of how we manage repairs noting there are things he can control when it is in- house. He also said he didn't want to do it just to test the market place, bid it out, see the numbers and then not do anything. He said if there was a bigger gap in costs he would have done it. He invited Jerry Klenck to give him an appropriate number and they would look at it. Jerry Klenck said he put numbers in his submittal. The City Manager said he's been slapped in the face when people don't get the bid, and again invited Jerry Klenck to get with him and Ms. Krueger, saying he was not closing the door on it. Mr. Davis said we don't want to start bumping and asked about the freeze on inventory. The Finance Director said there has been a growth of inventory at the garage over the last several years and staff's belief is they were stocking up on things and staff wants to get another look at the operation in an effort to reduce costs if possible. The City Manager explained that as we have cut personnel, certain folks in management are rushed and hurried and don't have time to think about the next five minutes, and that as we've lost people in the garage the inventory has taken a beating, for example a couple of alternators go so he stocks up on them. He said we need to settle down, take it as it comes and just manage the inventory a little better. Jerry Klenck described how his company handled bumping issues. The City Manager said if we are looking for contract garage services it is to minimize our cost, and if he bids out and hears $30 for an oil change he wants to spread the wealth around. Jerry Klenck responded you contract out to one business, not the whole City. Citizens Budget Advisory Board Minutes June 14, 2010 Page Four The City Manager said we don't know until we go out to bid and seeing that we are not going to save that much we don't want to bid out this year. Chairman Herlihy said this situation occurred when he was in New Hampshire and the city kept the garage. The City Manager said after review it did not shape up to be worth the fight, but it doesn't mean we don't want to farm it out, we want to save costs, but you lose some leverage when you contract out and the non tangible thing we get into is what is the in -house benefit we are losing. Chairman Herlihy said in regard to inventory problems, auto supply businesses may have a program whereby they stock for you and the parts are there when you need them. The City Manager said procurement becomes a problem and has to be managed because all vendors want a piece of the City's money, and if he uses one he's got five others calling Council and has a lot of masters to please. Jerry Klenck said there should be a points system for hiring local people and the City Manager said that is in place now, there is a local option for purchasing, and cited as an example landscaping material. Ms. Vicars suggested furloughs be on the six paid Monday holidays so that the community loses less service than they are currently losing with the furlough system in place. The City Manager explained the creation of the furlough system to make it convenient for employees and Finance for payroll processing. He said using unpaid holidays had been considered, noting the Police Department gets double time for holiday pay and there could be some savings there and we could take that to the table. Christine Vicars reiterated there are six holiday Mondays. The City Manager said there is currently nothing in place that measures furlough service issues, that out in the field we are okay and he has not received one complaint from anyone, noting the Building Department is the only department that would need to be in service five days per week. Christine Vicars asked about the 50% dependent coverage, and Ms. Krueger said employees already pay that. Christine Vicars asked if anyone had considered trying to bring an Amtrak station to Sebastian and the City Manager said he has had conversations with the region and they advised we are not in the demographic circle and that we should not apply. Citizens Budget Advisory Board Minutes June 14, 2010 Page Five Ed Kroah inquired about the 185 retirement fund going up 40 and the City Manager responded that this is the Police Pension fund which is actuarial and prepares officers ready for retirement at age 55 after 20 years of service. He said the pension fund has three sources, the State funds about $150,000, the employee pays in 5 and the City picks up the rest. He said this is governed by FS 185 and the City has to fund them at "x" levels to be eligible for State money. Ed Kroah asked if this year we were underfunding, and the City Manager said the number went up $150,000, a sore spot for him in how we continue to fund it, and he wants to talk to the PD about this when we sit down to negotiate. Ed Kroah asked if this is the same as for health insurance which indicates different percentages. The City Manager said this is based on employees opting in or out and numbers vary but the City is still covering 50% of dependent coverage. Mr. Kroah said, as an example, the City Clerk's Office shows at 5% and Growth Management drops to 14 The City Manager said someone may or may not be in it, and that he has to double check figures. Chairman Herlihy asked if the numbers in the proposed budget are based on the new bid numbers for health insurance and the City Manager said that was correct and that health insurance was going to Council on June 23 Jerry Klenck asked whether anyone had checked with Florida League of Cities on the local option gas tax increase, and on mandatory solid waste. The City Manager said Council doesn't want to go to mandatory solid waste. Jerry Klenck asked if it was political or based on budget, and the City Manager said any time he had spoken to any member of Council they say they do not want to force people to pay a collection fee. Jerry Klenck said he'd never been anywhere that there was not mandatory solid waste disposal. Jerry Klenck asked if anyone checked on turning off some of the FPL street lights, and the Administrative Services Director said Dennis Pagano of FPL had advised staff that they do not have the capabilities of turning on and off the lights. Mr. Klenck asked for a copy of this in writing and Ms. Krueger said Mr. Pagano had stated this to Linda Kinchen in Public Works who then provided the information to her. Ms. Krueger said she was also told it would cost the City more to turn lights on and off. Jerry Klenck asked if the Chief was in attendance for a status report about police vehicles. He said he was looking at how many people there are in the different offices. He asked if the City had a policy that required personnel to live in the City, and the City Manager responded only the two Charter Officers were required to live in the City. Mr. Klenck said residency for police officers in Chicago is required and said maybe this is something the City may want to look at. The City Manager said he agreed on a certain level and thought on a management level it may be a good idea for its folks to live in the community, but from his experience in the past year, you can't always get people to live in limits, noting at one time Sebastian was unaffordable and you start reducing your qualification pools and people are harder to recruit, and he would not recommend this to Council. Citizens Budget Advisory Board Minutes June 14, 2010 Page Six Jerry Klenck noted seven volunteer vehicles and asked the number of Police volunteers and the Chief responded 23. Mr. Klenck asked how often they work, but the response was not audible. Jerry Klenck noted the Police Department takes their vehicles home and asked was staff looking to change that, and the City Manager said potentially. Harry Marshall said he appreciated that PD takes cars home, but this is the City of Sebastian and the sight of cars at home should be a benefit to people in the City of Sebastian who pay for them. The City Manager agreed with him, and said they may negotiate shrinking the area, which is currently a 20 mile radius, to perhaps 5 mile radius or some other number for taking vehicles home. Harry Marshall asked how many vehicles there are in the fleet, and the City Manager responded 60, and Mr. Marshall suggested contracting out services on six of the 60 and then the City will have data on 10% of the fleet and could then extrapolate that information out to the entire fleet. The City Manager said that was a point well taken, he thought we could look at preventative maintenance and look at that going forward. Mr. Marshall said he thought we were hurting ourselves by not at least testing a percentage to get a handle on whether there are any benefits. Jerry Klenck said he'd seen in the newspaper that Fellsmere has been doing lots of annexations and asked why we are we not in front of those people. The City Manager discussed the ISBA situation in which the governments in Indian River County tried to map out territories for each, noting Fellsmere's annexation were political and residential based, and the City did not have a political base to pursue residential based annexation at this time. Jerry Klenck said he was talking about the commercial site near 1 -95, and the City Manager said they built their commercial annexations off of other residential type annexations and could get to that parcel when we couldn't. He said the City has gone out and talked to other folks to see if they are interested in annexations to Sebastian. Jerry Klenck discussed the idea of annexing Roseland, and the City Manager said he will not put out a feeler to Roseland unless he is directed by the Council. Chairman Herlihy stated in regard to police cars, we have an operations group with about 31 people, i.e., one captain, four sergeants and 26 officers and 27 vehicles, which means practically everyone in the department has a car, and asked if that was proper. The City Manager said that has to be reviewed during budget review and did not have specific details, said the Chief has requested seven cars for 2011 and he has not yet discussed this with her, said he sees the numbers and see cars collecting and although car purchases comes from DST fund, it does affect the general fund. He said this will be discussed during special revenues discussion. Citizens Budget Advisory Board Minutes June 14, 2010 Page Seven Chief Morris said she had submitted a memo about the three month arrest report. Mr. Klenck said he sees lots of no's in the closed column of the report, and the Chief said that means they are still under investigation or there has been a lack of prosecution on the case. Mr. Klenck said they say "completed" and the Chief said this means the report is completed, not the investigation. The City Manager, in response to Chairman Herlihy, said we will have revised property value numbers in early July. The Finance Director noted the next meeting of the Budget Review Advisory Board is July 19. The City Manager listed the important dates from the budget calendar: 7/16/10 proposed budget is sent out to Council updated with revised numbers and the CIP 7/19/10 Budget Review Advisory Board meeting at which we can talk about DR 420 as an agenda item 6 pm 8/9/10 Budget meeting 3rd quarterly report 6 pm 8/23/10 Council budget workshop at which time the Board's recommendation will be made 5:30 pm 9/13/10 first Council budget hearing 9/22/10 would be the second budget hearing but it did not show on the calendar, therefore the calendar will be revised and resent. Chairman Herlihy requested the 7/19/10 Budget meeting be at the dais and broadcast. Mr. Killgore said the Board will make its recommendation to Council on 8/23/10. The City Manager said he did not want anyone thinking if we differ on an issue he is being adversarial, that he and Mr. Killgore and Ms. Krueger are three people doing what they think is in the best interest of City of Sebastian, that they implement policy that they don't always create. He said to Mr. Klenck that he brought up issues that are not administrative in nature but are policy decisions, and if the Board agrees with his ideas such as solid waste and annexations, they could make a motion collectively to Council, and that they should not stop just because he didn't agree with an idea. He said he takes his marching orders from his bosses and apologized if anyone thought his responses were short. Mr. Herlihy asked Mr. Klenck asked if he watched the last Council meeting, and if so, he might have gotten the flavor that Roseland doesn't at all want to do what he is proposing Chairman Herlihy said on July 19 the Board will be making a recommendation on the millage rate, we'll see the numbers and make a decision and we'll discuss it in detail. He advised that anyone can present thoughts and ideas they want to communicate to other members, they should be put in a memo sent to the Finance Director ahead of time to give everyone time for review, and made a part of the public record, copied to the City Manager and ultimately to the Clerks office for the record. Jerry Klenck asked if we can vote by proxy because he would be away, and it was deemed not to be appropriate. Citizens Budget Advisory Board Minutes June 14, 2010 Page Eight Chairman Herlihy said we don't know the situation with Brad White, and then Adrina Davis said he would be away on the 19 as well. It was agreed by the Board Members to move the televised meeting of 7/19/10 to 7/12/10 at 6:00 p.m. 6. Being no further business, Chairman Herlihy adjourned the meeting at 7:52 p.m. Approved at the July 12, 2010 Citizens Budget Review Board meeting. Ed erlihy, C airman Prep Sally Maio, Cit, Clerk )/0 141/