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08-22-1994 - Budget Workshop CITY COUNCIL OF EDGEWATER WORKSHOP AUGUST 22, 1994 6:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Hayman called the Budget Workshop to order at 6: 00 p.m. in the Community Center. ROLL CALL Mayor Jack Hayman Present Councilman Kirk Jones Present Councilwoman Louise Martin Present Councilman Michael Hays Present Councilman David Mitchum Arrived Late City Attorney Krista Storey Present City Manager George McMahon Arrived Late City Clerk Susan Wadsworth Present Police Chief Lawrence Schumaker Present REVIEW OF ALL GENERAL FUND CITY DEPARTMENTS Mayor Hayman informed everyone they were going to begin with the City Clerk Department budget. City Clerk Wadsworth informed Council since they were not having the October Primary Election they could reduce Other Contractual Services by $3, 250, Rentals & Leases by $1, 000, Printing & Binding by $2, 500 . She informed Council her budget was higher this year than last year because she included her portion of the evidence building. City Clerk Wadsworth and Finance Director Munoz then answered questions presented by Councilman Hays and Mayor Hayman. Mr. Munoz informed Council that with the deductions that had been made to date they had a balanced budget. City Manager McMahon then presented the Other Government Services budget by identifying what items were included in this budget. City Manager McMahon and Mr. Munoz answered questions presented by Mayor Hayman and Councilman Hays with regard to the copier being replaced, pay for performance, and street lights . 1 Council Workshop August 22, 1994 City Manager McMahon and Public Works Director Hugh Williams then made a presentation regarding the Maintenance Department budget. Mayor Hayman felt this department did a great job. There was then a discussion regarding improvements being made to the Community Center. City Manager McMahon spoke of taking a look at the budget mid-year when adjustments could be made. City Engineer Kyle Fegley then presented the Engineering Department budget by highlighting the increases and decreases to this budget. Mr. Fegley and City Manager McMahon answered questions presented by Mayor Hayman, Councilman Hays and Councilman Jones with regard to cellular phones, converting to Auto CAD, and the 800 megahertz system. Fire Chief Bill Vola made a presentation regarding the Fire & Rescue Department budget. Fire Chief Vola and Mr. Munoz answered questions presented by Mayor Hayman, Councilwoman Martin and City Manager McMahon. Councilman Hays commented on expanding the service area and identified he was amazed they didn' t have to increase personnel in the Fire Department. Mayor Hayman spoke about being disturbed that they have large portions of the City that were beyond the four minute safe zone. He spoke of one day needing to locate a station on the east and west sides of the railroad tracks . Councilman Hays agreed this was something they needed to look at and plan for. Mayor Hayman expressed concern with Edgewater not being able to transport and EVAC moving its crews out of Edgewater. Fire Chief Vola described EVAC was having discussion to try and optimize their own service. He spoke of Edgewater upgrading the quality of basic life support. There was a brief discussion regarding the EMT' s not being ACLS certified but the paramedics were being upgraded. Fire Chief Vola identified they were on target to become a licensed advanced life support provider by January 1, 1996. Councilman Jones identified the four minute response time was important to him and felt they should be four minutes at any given time and if they couldn' t that is something they should shoot for. He further commented on Daytona wanting to transport their patients in need and the County working against them. Basic life support was wonderful but advanced life support has been proven to save lives . He 2 Council Workshop August 22, 1994 was proud the Fire Department was shooting for that direction. He then commented on the financial aspect to provide that level of service. Fire Chief Vola then answered questions presented by Councilman Jones with regard to needing one paramedic per shift, which was required by law, which had to be around the clock, 365 days a year, which could be done without any additional personnel . He also identified this would not address the outside of the four minute response time and that 80% percent of their emergencies were medical . There was then a discussion regarding the Fair Labor Standards having a problem with EMS personnel working under forty hours for it to be considered overtime and whether this pertained to fire and rescue personnel and if it was a 53 hour work week versus a 40 hour work week. Fire Chief Vola disclosed it was in a court of appeals right now. One of the briefs filed by the AFF was that a majority of Fire Departments don' t do firefighting and spend 78% of their time providing emergency medical services in which case they are saying fire rescue personnel may not be exempt from Fair Labor Standards . Mayor Hayman felt this may be one of the policy areas they needed to talk about in the near future when they begin to revisit City policy. City Manager McMahon felt they had to look at how they were going to financially plan for this, in one year or over a period of time. Councilman Jones commented on a $15, 000 grant New Smyrna received to pay overtime for the first two years to get a program going. Fire Chief Vola informed him Edgewater tried something similar but was turned down. Councilman Jones encouraged him to try again next year. Fire Chief Vola informed him he would. Fire Chief Vola at the request of Mayor Hayman commented on the 18% increase in Rentals & Leases . There was a brief discussion regarding fire hydrants . For every fire hydrant in the City the General Fund through the Fire Department' s budget creates $50 a year for maintenance of the hydrant. This coming year was 450 hydrants for a total of $22, 500, which was something outside his control . There was further discussion regarding this being a growth issue like street lights that they have to watch carefully. The fire hydrants in new subdivisions would be provided by the developer. Councilman Jones commented on the City of New Smyrna maintaining their fire hydrants . Fire Chief Vola described there were only two fire/rescue personnel on duty and there was no way for them to provide the basic services the citizens rely on and go out and clean and paint 450 hydrants . He spoke of it being important for the Utilities Department to maintain 3 Council Workshop August 22, 1994 their property. He further identified what the $50 per hydrant pays for. Councilman Hays commented on looking at a future need for an increase in service and looking at a reasonable fee for response to EMS or Fire calls and to use those revenues as a growth fund. Fire Chief Vola commented on a Public Safety Impact fee for Police and Fire that the City of New Smyrna had. Mayor Hayman commented on it costing the citizens $37 per capita per year for the Fire and Rescue service they receive. In Deland the cost was $59 per capita per year, Holly Hill was $50 per capita per year, New Smyrna was $127 per capita per year and South Daytona was $53 per capita per year. City Manager McMahon spoke about the concurrency requirement of the State with regard to new development causing an impact that was identifiable, connected with the level of service they have, either the City or the people responsible for that impact needed to bring it up to current level minimum concurrency requirements . There was further discussion regarding the costs associated with EMS calls and reimbursement from insurance companies for these costs not being possible because the City does not transport. Mayor Hayman felt within the next six months the Council needed to take a long hard look at what they were going to do to improve this . Councilman Hays wanted to go over this again in three or four months . Mayor Hayman suggested a date in December. He felt they needed to look at policy issues as soon as they could. It was the consensus of Council to revisit this in January. City Manager McMahon and Fire Chief Vola then presented the Civil Defense budget. There was then a brief discussion regarding coordinating with a master plan for a natural disaster or any type of disaster. Public Works Director Hugh Williams then presented the Public Works Department budget with regard to personnel, and equipment. Councilman Hays spoke of noticing on the sides of the road where the dewatering socks were left in the ground and they were starting to cave in because of all of the rain. Mr. Williams commented on these becoming a claim against S & E Contractors . There was further discussion regarding the equipment the City was looking to purchase that would help with repairing potholes . 4 Council Workshop August 22, 1994 City Manager McMahon brought to Council' s attention that an amount of money to be allocated from the reserve of the City for the purpose of resurfacing was not included in the budget but that they could always make an appropriation for that purpose. He further commented on having a problem in Florida Shores in three to five years with regard to the roads . There was then a discussion regarding the Roberts Road bike path and sidewalk. Mr. Williams answered questions presented by Mayor Hayman with regard to the 50% increase in Vehicle Repairs and what this was based upon. City Manager McMahon further spoke of contracting certain heavy equipment and the problems with contracting general services for maintenance. There was then a discussion regarding the City using an Oil Analysis with regard to fluid changes in the City' s equipment. City Manager McMahon commented on the Library Department and the air conditioner needing to be changed at the Library. There was a brief discussion regarding concerns with the roof leaking at the Library and whose responsibility it is . City Manager McMahon further commented on asking the County to address the roof and air conditioning problems and being ignored by the County. There was further discussion regarding the County wanting to build a regional library on Live Oak Street in New Smyrna. City Manager McMahon wanted the Council to go to the County and question what the citizens were getting out of the library taxes they were receiving as he felt the citizens were not getting anything out of it as the County has done nothing for Edgewater. There was then a discussion regarding the thermostats needing to be replaced at the Library. City Manager McMahon felt they also needed to look at the foundation for the units and the way they were housed. City Manager McMahon commented on the budget increase in the Parks & Recreation Department being primarily due to consolidating other budgets into this, which he further identified. There was a brief discussion regarding a position being eliminated in the Parks & Recreation Department as a result of not replacing people that leave and trying to hold down the personnel costs . 5 Council Workshop August 22, 1994 Parks & Recreation Director Jack Corder further presented the Parks & Recreation Department budget. There was a discussion regarding the effect on vehicle repairs that had increased by 133% as a result of aging fleet. Mayor Hayman then asked about the increases in Utilities & Services and Rentals & Leases, which Mr. Corder identified for him. There was a brief discussion regarding repairs to the sea wall at a cost of about $82, 000, which they were also receiving grant funds for. Councilman Jones asked about the amount of money per capita for Parks & Recreation the City receives from the County. Mr. Corder estimated the County receives $80, 000 per year from the taxpayers but the City only gets back about $10, 000 per year. Councilman Jones felt not only should they be asking the County about the library taxes but also the taxes for Parks & Recreation as well . Mr. Corder informed Council the beautification grant, which was a matching grant, was included in this budget as well. Councilman Hays thought if someone was taxed they had to be shown something was being provided for those tax dollars, which he wasn' t seeing. Mayor Hayman identified they were done with the Review of All General Fund City Departments . He believed they had already addressed some of the items on Page 2 as well. Mr. Williams then presented the Refuse Department budget. He spoke of a month ago going to the task system where the guys work until their assigned tasks are done. They eliminated a fourth and fifth truck and through attrition they had not replaced three positions . Councilman Hays expressed concern with the people doing the job not pushing the limits of safety too far when it comes to hurrying up to get the job done. He didn' t want to see workers compensation cases increasing because they are hurrying too much. City Manager McMahon commented on the overall number of workers compensation claims being excellent compared to most municipalities, which translated into lower costs for workers compensation and insurance. Mr. Williams then commented on rehabbing the diesel side loader and the diesel rear loader at a cost of $24, 000 . He was also looking to purchase the newest tractor trailer they could get for $30, 000. 6 Council Workshop August 22, 1994 Mr. Williams then commented on a new program they would like to start encouraging backyard composting. He spoke of the cost to pick up and dispose of yard waste. Mr. Williams then commented on a rate increase of $ . 40 for recycling. The taxpayers were being billed $1 . The City' s current cost was $1 .38, which was expected to increase under the COLA escalation clause in the contract to $1 . 45. He further commented on what the taxpayers would get for the additional $ . 40. Mr. Williams further commented on the Sharps Box program they wanted to start for the disposal of needles . Mayor Hayman asked for clarification of the $1 being charged for recycling with a cost to the City of $1 . 38, which Mr. Williams described by identifying the City was absorbing the overage. Mr. Munoz further described they were using retained earnings which had been built up over the years, which was the difference between what the City spends and what the City' s revenues are. Councilman Hays questioned wanting to increase the recycle rates . Mr. Williams described they would increase the garbage rate $ . 40, which technically was a recycling increase. There was then a discussion regarding whether or not tipping fees would be increasing. Councilman Hays expressed concern with the garbage fees going up discouraging people from recycling. He felt what had been taken out to the landfill had to have decreased considerably over the last year and that they needed to target the people who weren' t participating in the recycling program. Mayor Hayman felt no City makes money on recycling as it related to the $ . 38 the City was paying per household. Councilman Hays spoke of not taking the recyclables to the landfill and decreasing the landfill usage, which was a savings. He felt the people that do recycle shouldn' t be charged the same rate as someone who chooses to throw everything in the garbage. City Manager McMahon commented on the enforcement and accounting aspect of who recycles and who doesn' t recycle. Councilman Hays spoke of the City charging the residents for trash bags with the City seal on them and if they use one they pay for one but if they use 400 they will pay for 400, which he felt was fair. Mr. Williams commented on the free tire program and the City picking up anything that is put to the street. Since they have done this the 7 Council Workshop August 22, 1994 canal maintenance had decreased and they were finding less stuff thrown around the City. City Manager McMahon identified it was something he could look at but he felt there was a lot of variables they needed to look at. He felt instead of "making it user friendly" that they should make friendly users out of what they have. Mayor Hayman felt some items could also be placed in a garbage disposal or compost bin instead of into somebody' s garbage can. Mr. Williams felt they should be able to pull 15% out of their waste stream if they could push composting. Councilman Jones felt one recycling bin was not enough and commented on recyclables put in anything other than the bin not being picked up. City Manager McMahon identified at one time the City only provided one bin but was now providing as many bins as someone needed. There was further discussion regarding the $ . 40 being added to the garbage fee instead of the recycling fee. Mr. Munoz felt they should have never divided the recycling and garbage fees and just charged one rate for recycling and garbage. They also spoke about combining everything but they were concerned about the confusion. Councilman Hays spoke in favor of combining garbage and recycling. City Manager McMahon recommended Council authorize the Finance Department to have one component, refuse removal, and combine everything. Councilman Hays wanted to make it more equitable for the person who was sending more than he should to the landfill. Mr. Williams commented on the language that was in the existing ordinance. Councilman Hays spoke of people that go through the neighborhoods early in the morning and take the aluminum out of the recycling bins . Mayor Hayman wanted Mr. Williams to come back with some results of a study comparing the type of program where the public purchases bags from the City and that would be all the person would pay for his garbage to be picked up. Councilman Jones felt the additional $ . 40 a month was worth it to him because of the City picking up whatever is put out to the street. Councilwoman Martin felt they should increase it by $ . 50 because of the cost going up again. Councilman Jones spoke of letting the residents know the items the City picks up through the City newsletter. 8 Council Workshop August 22, 1994 Mr. Munoz explained from a billing standpoint, they needed the separation. It was the consensus of Council to increase the recycling by $ . 40 . City Manager McMahon informed Council any increases the Council approved would have to come back in the form of an ordinance. He asked City Attorney Storey to consider modifications to the ordinance that would allow Council to make any adjustments in the future by resolution. City Attorney Storey identified another option. Mr. Williams then presented the Stormwater Department budget and commented on some projects that would help with localized flooding such as the City finishing the last two pipes on the 18th Street canal instead of the contractor, the Hart Avenue bypass, and laying pipe under the Florida East Coast Railway. Councilman Mitchum asked about the $50, 000 increase to Road Materials & Supplies, which City Manager McMahon explained. Councilman Mitchum pointed out they had $50, 000 budgeted last year and they only spent $5, 445 of it. Mr. Williams informed him he spent another $3, 000 and commented on why the money wasn' t spent. City Manager McMahon explained they needed to have the financial bridge during the first year to avoid significant tax increases to take care of the debt service as they go into the paving program. Mr. Williams held back to try and reserve as much as possible so they could use that as an offset. Mayor Hayman identified they had spoken about creating a road paving reserve fund with a goal of $45, 000 this year and so far they hadn' t been able to do that. Mr. Munoz further commented on the City' s 1/3 share of the assessment, which was an approximately $400, 000 annual debt service payment. City Manager McMahon spoke of still having a gap period until they recognized the paving in place where they would still have maintenance costs for the shell roads . Mayor Hayman stated they had $50, 000 surplus that he felt could be used to defray the cost for a part of the CIP. Mr. Munoz informed him it was a restricted fund and an Enterprise Fund, which was for a specific purpose. Councilman Mitchum explained for Mayor Hayman that the first year was proposed to be $400, 000 and $200, 000 was coming from the savings for the maintenance. What was being proposed was the shortfall be made up with either a loan from the Stormwater Fund or Insurance Fund, both of which would have to be paid back. 9 Council Workshop August 22, 1994 Mayor Hayman commented on the history of the Stormwater Fund. Councilman Mitchum explained some projects were put on hold so the overall picture of storm drainage could be looked at. The $50, 000 was going back into the fund for which it was intended and would only make that fund more solid. There was then a discussion regarding maintaining the Self Insurance Fund at $1 million and not ignoring it. City Manager McMahon explained this fund has saved the City of a recurring basis over $140, 000 a year in the cost of insurance premiums . The integrity of the fund was monitored closely. As long as they maintain short term loans and pay it back as committed there wouldn' t be a problem. There was then a discussion that the $1 million was determined to be adequate and needed to be maintained at that level . Councilman Mitchum wanted to see them make the same effort with the Self Insurance that they have with the cash reserves for the City. Mayor Hayman questioned why they were increasing claims from $20, 000 to $23, 000. Mr. Munoz explained how he came up with the $23, 000 . There was a brief discussion regarding each department contributing to the Self Insurance Fund and looking at this every year as an expenditure. Mayor Hayman felt this was a critical policy discussion they should have. He spoke of watching the Self Insurance Fund and Cash Reserve Fund very carefully. City Manager McMahon informed Council based on their actions tonight staff would come back to Council at the public hearing with the revised budget. Mayor Hayman asked if he could tell them where they were at. Mr. Munoz and City Manager McMahon summarized the changes the Council had made to the budget. City Manager McMahon commented on a policy change Council may have to make with regard to contributions . He asked if they wanted to set a certain dollar amount to come back to Council for their approval . Mayor Hayman wanted to see every request. Councilman Mitchum suggested they do it on the Consent Agenda. Mayor Hayman felt people who ask them for money needed to justify what they wanted to do with the money. If it was a recurring thing, they needed to report back to Council and let them know what they did with the money and what the taxpayer got. 10 Council Workshop August 22, 1994 Councilman Mitchum questioned the Self Insurance Fund being readdressed at mid-year. City Manager McMahon identified it would automatically be included in the budget. Mayor Hayman suggested they review this in January with the other policies, which would allow City Manager McMahon and Mr. Munoz time to get a better grasp on the vision of the future. City Manager McMahon identified they would not be able to give them a strong indication of the budget trend. He spoke of holding back on expenditures until after the first of the year because of tax collections and things like that. They would only be able to identify what happened during the first quarter. Mayor Hayman commented on it being crucial setting the millage cap and needing to have a thorough grasp on what the fiscal condition was . There was further discussion regarding reviewing City policies. Councilman Hays felt they had to as a group start looking at new revenue sources . He spoke of franchising out with Cablevision and other cities across the country that have gotten into that as an Enterprise Fund that were doing very well . Councilman Hays also felt they needed to look at the health care issues inside the City with the employees . He spoke of the 20% increase in the insurance costs, which he felt would keep going up. He also mentioned the City having a clinic, which he felt could be a resource. There was then a discussion regarding the City having a golf course. There was also a discussion regarding coming up with enterprise ventures and innovative ideas . City Manager McMahon commented on having confidence in the City staff. ADJOURNMENT There being no further business to discuss, Councilman Hays moved to adjourn. The meeting adjourned around 8 : 45 p.m. Minutes submitted by: Lisa Bloomer, CMC 11 Council Workshop August 22, 1994