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HomeMy WebLinkAbout06-13-01 Minutes WS MINUTES OF THE OCOEE CITY COMMISSION PRE-BUDGET WORK SESSION HELD JUNE 13, 2001 CALL TO ORDER Mayor Vandergrift called the Pre-Budget Work Session to order at 7:06 p.m. in the Commission Chambers located in City Hall at 150 North Lakeshore Drive. PRESENT: Mayor Vandergrift, Commissioners Anderson, Howell (arrived at 7:10), Johnson, and Parker. Also present were City Manager Gleason, Building/Zoning Official Velie, City Clerk Grafton, City Engineer/Utilities Director Shira, Assistant City Engineer Wheeler, Communications Manager Ek-Collins, Community Relations/Projects Director Shira, Finance Director Horton, Finance Supervisor Carter, Budget Analyst Brosonski, Accountant Bishop, Customer Service Supervisor Sills, Fire Chief Strosnider, Human Resources Director Psaledakis, Information Systems Manager Ross, Police Chief Mark, Planning Director Wagner, Public Works Director Smith, and Recreation Director Nordquist. BUDGET Report - 6 year Projection (Finance Director Horton) Finance Director Horton explained this was a new approach to the budget process in that the department directors had been provided with a projection of the estimated revenues for the next five years. These projections were based on ten years of history in different categories and this information was expected to be helpful in their requests for their budgets this year. Mrs. Horton asked the Commission for direction regarding projects to be included in the budget. City Manager Gleason called attention to figures provided showing the anticipated additional dollars and the percentage allocated to Personnel, Operating, Capital, and Debt Service. He said the increase in employee insurance would take a major portion of those anticipated funds allocated to Personnel. He said with that in mind he was approaching this budget with a plan to not add personnel this fiscal year and to review carefully any positions that become open through the year. He asked for input regarding projects the Commission wished to see included in the budget, so that department heads could incorporate those to be reviewed during the budget work sessions. Mr. Gleason said after that has been done, he would examine the figures to see whether he could recommend including a COLA or merit increase in the budget. Mrs. Horton pointed out the percentages allocated to the different departments in the report indicated an average over the last six years and could be shifted according to the specific needs for this fiscal year. Current Projections Mr. Gleason reported the City will be required to put in a safety crossing at the Beech Recreation Center ($120K) and fence the property ($20K) and there are deficiencies in Clarke Road ($IM). Ocoee City Commission Pre-Budget Work Session June 13, 2001 Human Resources Director Psaledakis discussed the current position with insurance, noting the City's payments to them are exceeded by the claims and next year's rates are still under negotiation. During the discussion Mrs. Horton said the annual fee for health insurance was approximately $1,197,000. When Mayor Vandergrift asked what percent of that amount was for dependent coverage, Mrs. Horton said she would provide those figures for him. Commissioner Anderson said he would prefer paying the dependent health insurance over providing for a merit increase. Commissioner Johnson said he would prefer to increase the percentage the employee pays of the dependent coverage. Discussion on Commission Projects Commissioner Howell said it is going to be a tight budget and any pet projects will be contingent on funds available. He said he would prefer to see the railroad crossings repaired and swales put at the Lady A venue/Maureen A venue intersection where it floods every time it rains. He added he did not bring his list with him. Mr. Gleason said he would put on his list . road projects - to be prioritized. Commissioner Anderson suggested doing those things which would loosen up the budget for next year, such as holding down recurring costs, and conducting an audit to be sure taxes are being collected on city parcels. Mr. Gleason said there had been discussion regarding adding garbage and stormwater to the tax bill and Commissioner Anderson said he would like to see that done. In addition, he asked that software that is compatible with Finance software for employee time/duty be incorporated into the system to reduce the time currently required to do payroll; also, heighten security on buildings; alternates to insurance costs; make sure $20K- $30K is included in the budget to possibly increase the City Manager's salary; and develop a plan for additional land for practice fields. This last sparked a discussion about the use of the soccer field that was promised to the soccer league and not yet started. Commissioner Parker said she would like to know what other cities do, and whether they charge for the use of grounds. Chief Mark advised he had paid $80 per child when his children participated in the soccer program at the fairgrounds. Commissioner Johnson suggested looking into joining with the YMCA. Mr. Gleason said he will look into it. Commissioner Johnson said he did not want to take away from the City's other needs, but would like to focus on the downtown revitalization, starting on Bluford in front of the Middle School and down Kissimmee Avenue all the way to McKey Street with lights, landscaping and building decorations. Mr. Gleason said Spillis Candela's presentation regarding the Municipal Complex contained some of those items and the prices were already available. Commissioner Johnson said he wants Lyle Street paved; wants to see who wants to bid and who does not want to bid on the healthcare; wants to advertise for it and wants to see what is going out. He 2 Ocoee City Commission Pre-Budget Work Session June 13, 2001 asked what percentage of the increase in cost is due to our employees' claims and how much is just a standard all-over-the-country insurance increase. He added he wants to do away with the two-day pay to employees when they do not use their sick time and wants to give days off instead. (Mrs. Psaledakis advised that may cost more, particularly if the person filling in for the absent person has to be paid overtime.) Commissioner Johnson continued that employees need to be required to use more of their earned vacation time, instead of the across the board 10 days required; and he would prefer that sick days and vacation days not be combined. He wants to go to smaller vehicles that will serve the purpose; and, on the railroad crossing at the Beech Recreation Center, go out to bid. Commissioner Parker said she would be happy to maintain the programs already in place and would like to see the sidewalks on Clarke Road to connect from Silver Star Road to Beech Recreation Center. Mayor Vandergrift described revenue enhancement and the benefits derived from CRAs such as Commissioner Johnson is starting in downtown Ocoee, and said there were two areas in Commissioner Howell's district that could be so designated as well, up on the hill. He proposed a volunteer housing authority that could possibly buyout Pioneer Key Parks I and II, using grants, and make a park there. Community Relations/Projects Director Shira advised she had done a lot of research on this last year and there are not many grants available any more. Mayor Vandergrift would like to see a volunteers coordinator; and would like to expand the take-horne-car plan; wants to look at a utilities commission. Mr. Gleason asked how many police officers qualify for take home cars and do not have one. Chief Mark responded about five meet the requirements of one year employment and city residence. Mayor Vandergrift expressed appreciation to the person who replaced the lights that had been out in the Chambers and said again he wanted to have the hardware removed on the double doors to cut down on the noise when the doors are opened and closed. He discussed not having sick leave combined with personal leave time and Ms. Psaledakis reviewed both scenarios and short term/long term disability. Ms. Shira suggested, after this year's buyout, discontinuing the practice of paying for all over 360 hours not used and Ms. Psaledakis pointed out it would be necessary to adopt an ordinance to do that, but it would be possible. After further discussion, Ms. Psaledakis said she would poll other cities and provide copies of their policies. Mayor Vandergrift would like to see sewers and recycled water in the older part of town. Commissioner Anderson said he would like to see some of the rates adjusted and do a surcharge if the City is mandated to reduce consumption that had been budgeted for, such as SJRWMD's requirement that the City reduce its water consumption by 10%. He addressed a question to Chief Mark regarding the MBI program, 1-4 Corridor, etc. and said if the City is 3 Ocoee City Commission Pre-Budget Work Session June 13, 2001 making money on one of them to increase that program. Finance Director Horton said she would provide the figures to show which programs made money for the City. Commissioner Johnson asked to see the maintenance records for the police vehicles for this year compared to last year, and added he had a problem with city vehicles going outside of city limits in the take home car plan. REVIEW/DISCUSSION OF W ATER/W ASTEW ATER RATES (City Engineer/Utilities Director Shira and Mike Burton, Burton & Associates) City Engineer/Utilities Director Shira gave a brief history of the water/wastewater rate situation over the past few years, which began with orders from St. Johns River Water Management District to reduce consumption. He said Burton & Associates had been commissioned to (1) evaluate the current water/wastewater rates and determine whether they were adequate and proper, and (2) develop a reclaimed water rate. Mr. Shira directed attention to a handout just distributed which compared the rates of Ocoee and seven other utilities and he pointed out that Ocoee's rates are $1.10 less than Orlando Utilities' for the first 10,000 gallons. He introduced Mike Burton, Burton & Associates, who then displayed charts showing a Rate Study on the overhead as he explained the consequences in dollars of adopting their proposal. He pointed out that one of the alternatives was not increasing rates until 2004, which would result in the need to borrow $800,000 that year. The option recommended was to raise the rates 3 % October 1, 2001, and schedule raising the rates 3 % a year for the next three years. Doing that would provide enough income to fund the entire Utilities Capital Improvement Program, borrowing would not be necessary, and handling implementation of reclaimed water customers that require retrofit, that are not in new subdivisions, without charging the homeowners for their distribution system. Mr. Shira pointed out the method to be used to achieve this 3 % increase would be to put a 6 % increase on the consumption only part of the water/wastewater bill. He added that this would result in a $.60 per month increase for water and $1.08 for sewer the first year, a total of about $1. 70 per month for a citizen who uses 20,000 gallons per month. He added that the rates had not been increased since 1991 while the customer base has doubled during that period. Mr. Shira discussed several projects, like retrofit going into an existing subdivision and putting reclaimed system in there, like making a connection between the Clarke Road line and the Maguire Road line, like additional storage, particularly at the south end. Mr. Shira called attention to the aerial photograph distributed which showed an available site which could be used as a re-pump station to take water from the Conserv II line, pump it up to the constant pressure needed and put it into the Maguire Road line. Also, a storage tank will be needed in that area. 4 Ocoee City Commission Pre-Budget Work Session June 13, 2001 Mr. Burton summarized saying there were two different philosophies to choose from - hold the rate the same and borrow later when capital improvements need to be made, or increase the rates incrementally to prepare for the expenditures that will be needed. Mayor Vandergrift asked how these rates correlate with reclaimed water rates. Mr. Shira responded the proposed rate Mr. Burton has come up with is $7.65 base rate (12,000 reclaimed water), plus $.38 per thousand for all over 12,000. With both water and sewer the base rates do not cover water gallonage. Mr. Burton said the rates have been calibrated so that a customer who is irrigating now with potable water changes over to reclaimed water the cost of the reclaimed water will be about 70% of the cost of the potable water they were using before. Mayor Vandergrift asked for a chart that would show the savings to the customer. Mr. Burton said that could be provided. Discussion ensued regarding timing and debt. Mr. Shira said the reclaimed water line has been built on Clarke Road, a facility has been built at the wastewater plant to store and pump it, an agreement has been entered into with Conserv II to take the water out of their line on south Maguire Road, a line is being built on south Maguire, and a site is being considered for a re-pump station for that area, and it is time to make a decision on the rates as his department is ready to put water into the line. Mr. Gleason said that Commissioner Johnson had raised a question about what had happened to some of the reserves and he said a report would be prepared showing the cost of repairs, etc. that had been taken out of contingency. Mayor Vandergrift asked that the charts that were illegible on the overhead be provided for the Commission to read later. Mr. Burton advised the lowest indexing for the increase that could be used and stay out of debt would be 2.75 % increase, and he recommended going to 3 % as presented earlier. In response to Mayor Vandergrift's question regarding how long it would take to have enough experience with the use of the reclaimed water system to project when citizens would be using more water than they are using now for irrigation because of the reduced cost of the reclaimed water, Mr. Shira said probably one year. Mayor Vandergrift asked how many homes are anticipated to be hooked up to the system in the first year. Mr. Shira responded Remington Oaks and Prairie Lake (about 250 homes) are already hooked up and are being charged potable water rates as that is what is in the line currently. Mr. Burton advised that 166 a year would be all the City could afford to connect if the rate increase were not incorporated before 2004. With the rate increases the City could afford more than that. 5 Ocoee City Commission Pre-Budget Work Session June 13, 2001 Mr. Gleason asked if reclaimed water is subject to the same SJRWMD restrictions, and Mr. Shira responded it is not yet. Mayor Vandergrift asked about the connection cost: Mr. Shira said the rates are set up so that there is no connection charge or capital charge, and the only fee the customer will see is the monthly fee. Commissioner Howell asked who paid for the meters already installed, and Mr. Shira responded the developer had. In a discussion regarding both the need and the cost to install back-flow prevention devices at each home prior to turning on the service, Mr. Shira said the cost is $100, which the City will pay up front, then ultimately recover that cost through the fees. Just prior to adjourning, Mr. Shira said they would prepare the charts as requested earlier in the meeting (showing the savings to the customer as well as the Rate Study displayed on the overhead) and the list of repairs/expenses that had come from the contingency fund. ADJOURN The meeting adjourned at 10: 10 p.m. Attest: APPROVED: City of Ocoee .c-~':::'-' .. ~.' l./t.. ~ ~- S. Scott Vandergrift, Mayor \ 6