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HomeMy WebLinkAbout08-17-11 Budget Workshop Budget Workshop OCOEE CITY COMMISSION Ocoee Commission Chambers 150 North Lakeshore Drive, Ocoee, FL August 17, 2011 MINUTES 6:00 p.m. I. CALL TO ORDER Mayor Vandergrift called the meeting to order at 6:00 p.m. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson and Commissioner Keller. Also Present: City Attorney Rosenthal, City Manager Frank, City Clerk Eikenberry II. Revised Wish List for FY11 /12 Budget Finance Director Horton reviewed the list of items that changed from the last meeting: Wish List Adjustments $65,000 added for the expansion/design for the community center $5,000 added to the HRDB board, for total funding of $7,000 for next year $45,000 for the commuter rail commitment With above changes, the adjusted millage rate is now 5.8603 Wish List Additions $5000 for signs for the golf cart implementation $28,180 for street resurfacing on Carriage Oaks Court $250,000 for District 1 fire station, annual amount for five years. $110,000 security improvements in central park. Ms. Horton advised they have distributed on the dais a new wish list with these items included. Commissioner Hood asked that the Fire Station expenses not show the budget of 1.5 million in this year, there is currently $325,000 in the fund. If the 1.5 million is removed it will drop the additional expenditures down to $1,777,238 and change the millage from 2.0031 to 1.0863 and the millage rate including all the above items would change from 7.8634 to 6.9466. We only need funding for the fire station for two more years, not five, to have enough money. Commissioner Keller questioned only needing two more years to fund the fire station, and the consensus was it may take three years. Commissioner Hood said they could take additional from reserves, if needed. Mayor Vandergrift asked for clarification on which of the new items discussed had received a consensus from the Commission. Finance Director Horton explained that the items at the top where there was a consensus of the commission have been added into the budget. The items at the bottom, including the fire station, have been added to the wish list, but not to the budget. August 17, 2011 Page 2 of 9 City Commission Budget Workshop III. Cemetery Columbarium Structures — CIP Manager Butler CIP Manager Butler discussed the crematory niches (columbariums) for the cemetery. He advised there would be several 12X12X14 niches in each columbarium structure. Initially, there was discussion to place these structures in the pavilion but it is not in the condition to hold the columbariums and should be taken down. He said he would propose an open patio area with three columbariums arranged in a U shape in the same location of the old pavilion. He stated each structure would hold 48 niches. He stated each structure would cost $11,000; with the added removal of the pavilion and creating an area of patio and benches. The total cost would be $38,000 - $40,000. Mr. Butler added that research shows that approximately 75% of people in the local area are now being cremated, with 15% being buried and 10% leaving the area for their final resting place. He added that another option is have cremation vaults, which is the same size niche, but it is set in the ground and the monument is placed on top. There are singles and doubles. The third option is a memorial bench, where the cremation remains are mixed in the concrete. Commissioner Johnson asked what the price is to sell them. Mr. Butler said they are selling from $1.000 - $1500. He added that he had discussed with City Clerk Eikenberry that the use of the double cremation vaults would require a change in the Code because at this time it only allows for one person in each plot. Commissioner Johnson said he feels this would be a great way to utilize more space in the cemetery that has no more space for plots; he calculated that if niches were sold for $1,000 each the revenue would be $48,000 from each columbarium. Commissioner Wilsen asked if the City could pre -sell a percentage of the niches. Mr. Butler said we probably could. Commissioner Johnson said we should probably do the first one and see how it goes. Mr. Butler said the initial cost would include the tear down of the pavilion and building the paver deck, approximately $16,000 to install the first columbarium. He showed a picture of the structure and how a granite plate can be affixed to the front with an inscription. Commissioner Johnson asked if that money could be taken from this year's contingency money. City Manager Frank said there is approximately $37,000 - $38,000 left in contingency. The consensus of the Commission was to put an item on the next agenda regarding the purchase of cemetery niches to be funded from this fiscal year and include the prices that other cities are charging for niches. IV. Discussion Commissioner Wilsen said she would like to change the Community Merit Awards to a four cycle grant award and eliminate people coming to the commission to ask for money. Commissioner Keller said it may be difficult for some people to know the process before they get to the Commission and there should be some exceptions in place to make those exceptions. He did not believe it was logical to think they can just completely do away with granting money to people on a case by case basis unless they just do away with granting money all together. Commissioner Wilsen said that people are getting the word they can just come in and ask us for money or to waive fees. She does not feel it is right to give away the taxpayers money when we have many who are not working, etc. Commissioner Keller said in that case we may need to consider taking a hiatus from giving money away for a few years until the economy improves. Commissioner Johnson stated it is the same organizations getting the money over and over. A lot of money goes to Homeowner Associations that should be using private money. Mayor August 17, 2011 Page 3 of 9 City Commission Budget Workshop Vandergrift stated that many other communities have grant programs. The grant that we give for $500 maximum usually does not come close to the money they are spending on improvements. Commissioner Johnson said we need to try doing what Winter Garden does, don't give away any grant money. Commissioner Wilsen said she is not in favor of that; she would rather establish a better grant program and not give it away at the dais. Commissioner Keller said he cannot see making that an absolute, because there will always be exceptions where they do not have time to apply for grant programs awards. Mayor Vandergrift said there is a contingency that you can vote to spend any way that you want to; the question is do we want to completely do away with city grants? Discussion followed. Manor Vandergrift advised that he is hearing a consensus to keep the grant programs. He added the other stuff is superfluous and can be argued at the time it is brought forward. Commissioner Hood asked about the items on the wish list for security at Central Park. IS Manager Ross explained that there have been issues at Central Park so they are considering security cameras to resolve vandalism and other issues. He stated it was so expensive, that they put it in four phases so they could prioritize which areas needed it first. Mayor Vandergrift asked if we can use the mobile cameras that we are getting with grant money for the police department. Chief Brown stated the mobile cameras can be used, however they will be moved around the city and will not have the same functionality to watch from a computer. He added they just placed that on the wish list as an option to be considered; it is quite costly. Mayor Vandergrift asked if we can use forfeiture funds for that. Chief Brown said probably, but he is not sure they have that kind of money in that fund. There was discussion with regard to the five or six mobile cameras that will be coming soon and placed throughout the city. Commissioner Hood asked about Police and Fire labor negotiations. City Manager Frank advised they are moving along, they should be done next month. Page 3 -4; Mayor Vandergrift asked about the beginning cash balance $2,515,000 in our red light cameras and this year we have zero? Finance Director Horton explained it is zero proposed for next year; it was $150,000 from red light cameras that was available until the state stepped in and changed the distribution of the fines. Now the states get a large portion. Next year we proposed zero because we will not have additional funds from red light cameras. The Mayor clarified that the revenue goes into the General Fund. Ms. Horton said on page 3 -6 under Fines and Forfeitures, it shows the proposed revenues from the cameras. City Manager Frank said there are also some legislators trying to get the state to take a smaller share since they are not paying for the cameras or for the labor to review the films. They are taking over half the money for the tickets and they have no investment in the process. Page 3 -7; Mayor Vandergrift asked about the $50,000 increase in Interest Earnings, two which Finance Director Horton said interest rates are creeping up a little bit. Commissioner Hood noted that Surplus Equipment also on page 3 -7 went way down. City Manager Frank said that is because that category last year showed the two fire engines that we sold. Commissioner Keller inquired if we want to consider a third transport vehicle for the third station. City Manager Frank said we have two right now, with one being there as a backup. He stated we only have enough manpower to operate one right now. Commissioner Keller said he would like to get a third vehicle if we can do that for a good price; then if we do end up doing August 17, 2011 Page 4 of 9 City Commission Budget Workshop transport in -house we would be ready. There was discussion regarding an RFP for next year where outside companies as well as our own Fire Department could compete for the best deal. The figures will have to show equipment and personnel so it can be compared fairly. Page 3 -19; Mayor Vandergrift asked about the Systems Administrator position; Ms. Horton advised the employee was transferred to utilities to fill a vacant position. Page 3 -24; Mayor Vandergrift asked about the $45,000 in Elections Expenses line item. City Clerk Eikenberry stated it is there in case of a run -off election. She added that elections cost over $20,000 per precinct, per election and a run -off in both districts could create a bill of that size. She advised the General Election will cost nothing because we are piggybacking off of the Supervisor of Elections Office for the Presidential Preference Primary; therefore if there is no run -off this year there will be no election. Page 3 -37; Mayor Vandergrift asked about HR Consulting Services. City Manager Frank said that is for consulting services from Jim Carnicella for Risk Management; the other half of his consulting fees are under Page 3 -49 for operation of the Health Clinic. Page 3 -50; Mayor Vandergrift asked about the Land Acquisition at AD Mims, City Manager Frank stated that is debt service for approximately 15 more years. There was discussion with regard to the acquisition and debt service on the Crown Point (Coca Cola) property as well. Page 3 -59; Mayor Vandergrift asked about Air conditioning and flooring replacement; Public Works Director Krug stated that the a/c is just a continuation of repairs where needed and the flooring is mainly for the fire department. There was further discussion regarding problems at Central Park. Mayor Vandergrift asked how Public Works is getting a Surveillance system for $6000, when the park is going to cost $100,000. IS Manager Ross stated that is because there is an infrastructure (i.e. network connections) already in place in the Public Works facility. Page 3 -64, Public Retirement System; Mayor Vandergrift asked why the city's contribution went from 16% to 21%. Police Chief Brown stated that the four year smoothing process included a couple of bad years; additionally we have not had the same rate of turnover as previous years, which makes the plan cost more. There was further discussion about the plan. Mayor Vandergrift asked about Police Communications ($510,000) and the Fired Department pays ($200,000) to Orange County, do we think we need to consider taking that back in house. City Manager Frank stated that we were paying close to $800.000 just for police dispatch. Chief McNeil stated that Fire would have operational issues separating from all the other agencies such as Orange County, Winter Garden, etc because there is so much interaction between the agencies to get the closest unit to calls. Page 3 -82, Mayor Vandergrift, confirmed with Parks and Recreation Director Hayes that the $24,000 is for the mowing contract for the cemetery. He asked if we should consider doing that in- house. City Manager Frank stated that the city crew is doing ponds and right of ways and mostly rough cut work; the results may not be as good if they cut the cemetery and it would upset the current mow schedule. August 17, 2011 Page 5 of 9 City Commission Budget Workshop Page 3 -91, Fleet Maintenance, Mayor Vandergrift asked why it jumped up $25,000. City Manager Frank stated that is predictions for the higher gas prices. Page 3 -100, transfer of 1/2 Operations Manager position to Parks; Finance Director Horton confirmed it is just to split the costs of Parks from Recreation. CIP Manager Butler confirmed the Ison Center Grant project will get started next year. Page 3 -105, Mayor Vandergrift stated he would like to continue looking at hybrid trucks and electric; and on Page 4 -7, he noted an SUV hybrid replacement. Page 5 -8, Professional Services Other jumped from $88,000 to $149,000. Utilities Director Smith explained consultants that are needed for hydraulic modeling, planning, and projects next year. There was discussion that the City has three engineers in house, Charles Smith, David Wheeler and Ryan Howard; between them they have been doing a lot of the design work such as Peachlake Manor, Reclaimed projects /retrofits, lift stations, etc. has been done in house. Page 3 -24, Contractual Services for $250,000 in Wastewater Facilities. Mr. Smith explained the sludge hauling alone is $160,000 per year. There was discussion about the process. Page 6 -3 Mayor Vandergrift asked about making $100,000 from surplus. Public Works Director Krug explained that is for two replacement trucks for the sidearm. Page 6 -8 Mayor Vandergrift asked about spending $65,000 for contractual services. Mr. Krug stated that is for the day laborers for the back of the rear load trucks. He added they are looking into using the recycle truck operators to fill in some of those positions in the future. Page 6 -8, Line 2400 Workers Comp insurance drop from $49,000 to $12,285. Finance Director Horton explained that we are funding a portion of the Worker's Comp insurance premium this year from some of the reserves from last year, so we were able to drop that amount in all of the funds. City Manager Frank said that is partially due to the changes we discussed earlier with Risk Management. Mayor Vandergrift praised staff for that reduction. BREAK 7:15 p.m. — 7:25 p.m. Page 8 -2, Mayor Vandergrift asked about the 9 portable radios for the Fire Department ($4000) each; if they are replacement or new. City Manager Frank said those are replacement radios; public safety radios all have to be digital by 2012 to comply with Federal regulations; the old ones can be used for other purposes in the city not pertaining to public safety. Page 8 -2 Mayor Vandergrift asked about the Video Signal Detection System Maguire and Story Road. Public Works Director Krug said new technology single camera system will do the same thing as having loops for traffic signals cut into the road that wear out. Page 8 -4, Mayor Vandergrift asked about Stormwater Small Projects, $180,000. Public Works Director Krug said that fund covers small issues that come up such as a failed pipe that needs to be resleeved or replaced. Otherwise, larger projects have to go to commission. August 17, 2011 Page 6 of 9 City Commission Budget Workshop Page 8 -4 Mayor Vandergrift also asked about equipment such as Side Arm Mower and ($150,000) and Loader replacement ($230,000); he was asking why we were paying cash as opposed to finance them or leasing. Finance Director Horton said the cash is available so we are saving money by not financing. City Manager Frank said it is an enterprise fund pays for the equipment otherwise the cash just go back in and sit until next year. The Mayor noted that he has an issue with other departments not being able to get such good equipment because they are not enterprise funds. City Manager Frank said Stormwater division does free up some decent vehicles once in a while that other departments can take advantage of. There was discussion about purchasing hybrids with the Stormwater fund. Page 8 -8, Prairie Lake Park Project. Mayor Vandergrift noticed the half -court basketball court is utilized all the time, and wondered if we could get a full court back there. Parks and Recreation Director Hayes said they can take a look at the cost and feasibility (location) for a full court. Mayor Vandergrift asked about the two new fields at Jim Beech. City Manager Frank stated that is the expansion to the north that we discussed last week and there was some discussion about taking some of those funds and using them at vignette. Mr. Hayes stated that was to make it a multi - purpose use for Little League, Bulldog Football, OYSL, etc. Commissioner Johnson said we discussed moving the impact fee money over to Vignetti and building the new softball field. Mayor Vandergrift said there was a Master Plan that called for the north end to include tennis courts, ball fields and a small park. Commissioner Johnson said he would like to discuss using the funding for Vignetti. There was discussion about the costs to do the work at Vignetti and moving fencing, lighting, etc. There was also discussion about creating fields that are 325 feet for tournament play. He said Vignetti has needed updates for a long time. Mayor Vandergrift asked staff to bring back options on Vignetti using impact fee funding that the Commission can vote on at the Public Hearings. Page 8 -9, Mayor Vandergrift said that there's a lot of work going on in the wastewater group. He asked if anyone had applied for any grants to cover the $236,000. City Manager Frank said that everything that the mayor is seeing is maintenance and that there is nothing new in the item. The mayor asked if grants could be applied for that would cover maintenance. The city manager replied 'no'. Page 8 -10, Mayor Vandergrift remarked that it is the same thing regarding Northwest Reclaim Service ($385,000) regarding grants. Commissioner Keller said that he'd like to see a reclaim for Sawmill considering everything around Sawmill has been done. The mayor asked if Sawmill is on the sewer system. Commissioner Keller said that he did not think that it was. Mayor Vandergrift said that this is one of the problems; Sawmill is going to have to connect somewhere to get the water to reclaim. Commissioner Keller said that he would like to seriously look at putting everyone on sewer if it goes through (via the state legislature) where everyone will have to pay $20,000 for the mini - septic systems. The commissioner said that he would rather put everyone on sewer and pay the money once rather than $5000 per year. Commissioner Johnson said that he did not know where Commissioner Keller got the price he quoted for the septic system. Commissioner Johnson said that price is what they put in the news. Continuing, he said that he works with a gentleman that is in the business, and that is not the price. August 17, 2011 Page 7 of 9 City Commission Budget Workshop Section 9, Mayor Vandergrift said he felt that, in preparation for making Clark Road a four - lane road, it would be a good idea for the City to use some of the dirt that is at Public Works and the Cemetery to fill in where the other lane will be put in. Commissioner Keller asked if the City has the rights -of -way to do that. The mayor replied `yes', and pointed out that the City has the rights -of -way for Clark Road to be made into a four -lane roadway, and that on the west side there is a drop off that staff could start filling in with the dirt that the City has available. The mayor said that the City could have gotten with Orange County when the County was making Clarcona Road a four -lane road. City Manager Frank said that is certainly something we can talk about and see if that is a viable option. Capital Improvement Plan (CIP) Manager Al Butler said that some of the developers provide fill dirt to bring up the rights -of -way to elevation so that they will be the same as on the east side. Mayor Vandergrift said using the dirt the City now has will save everyone time and money. Fullers -Cross Road at Ocoee Apopka Road — Mayor Vandergrift asked if both roads were County roads. Mr. Butler replied that this is related to potential development that would occur at that intersection in the southeast comer. Mayor Vandergrift asked again for confirmation that both are county roads. Mr. Butler agreed that they are. The development is in the City so this would be money going through the City to make those improvements. City Manager Frank said the funding source shows a combination of possible impact fees and /or developer contributions. Mr. Butler further clarified that this would be like when the Publix up at West Road was built. Publix gave the City the money so the City passed the money on to the County for them to add it to the project. The mayor asked if there is a list of where the City will place traffic calming devices or is the City waiting for someone to complain? Mr. Krug said that, assuming there is money approved in the budget for the project, he will be bringing back to the commission an updated policy because the only one currently approved is a policy which requires a $240 fee from the folks requesting the traffic study. He has a list of people who have made a request, but he wants clarification from the commission that this is the way they want to proceed. Commissioner Hood asked if everything that is in 11 and 12 is in the current budget and not on the wish list. Mr. Butler said that on the CIP, some wish list items were listed so that the commission could see the complete list in one location. Commissioner Hood said that for the community center there was already $65,000 listed. Mr. Butler said that the part that the commissioner was speaking about has not been updated. Finance Director Wanda Horton said that the funding source is the key thing to look for. If it says `A' which means operating funds or current funds, then it is in the budget. If it has anything other than that, then it either appeared on the wish list or it is going to be from contributions or impact fees or something. Mr. Butler added that this was prepared at the end of July; hence it reflects how things are now and not what was done at the last budget meeting. Page 9 -5, Mayor Vandergrift noted the conduct system extension for reclaim water $340,000 for this year and $1 mill. He asked if part of next year's funding we could be redirected to a August 17, 2011 Page 8 of 9 City Commission Budget Workshop spine or a sewer system. He also asked about the idea of having in -house engineers try and design something that the City could live with and taking at least half of that and using it to put in spines at somewhere like Sawmill. Mr. Butler said that we have some plans that are funded in the prior year that are not listed in the current budget document. The mayor asked if those projects could be put on hold and the funds redirected. Mr. Butler answered that they can change specific projects; the priorities for the projects are based on where the City gets the most uptake of the service and where the City can go next with an extension of the facility. Mayor Vandergrift said soon that will run out and people like Sawmill residents will say that they would like to have reclaim water and the City is not prepared to do that. Utilities Director Charles Smith said that would be a policy issue that would need to set by the commission. The commission could take some of the money the City has in reserve and other monies to put it in that area, Mr. Smith said. He projected it will cost $20,000 to $25,000 to for each home to be place on central sewer there is also a sewer capital fee that also has to be paid. You have to go down the street and tear up streets, abandon septic tanks, connect up and pay the sewer capital recovery fee at the plant. It is an extremely expensive endeavor. The $25,000 is based on the connection at the time that the service is available. If the City puts the spine in and 10% hook up, it will be 10 x 25,000 ($250,000). If the City does not require them to connect at that time, then the debt service and the associated fees still have to be paid. Mr. Smith said that he has not heard of a spine system being put in that was put in without an overriding environmental problem. When one starts knocking on doors and saying folks have to pay for the system, it will likely be through a long term assessment for years to come. It is almost as though one has to make them connect or the system cannot fund itself. Mayor Vandergrift asked if residents have to connect to the sewer in order to have reclaimed water. Mr. Smith answered `yes', but it costs about $3,000 rather than $25,000. He continued that the policy that has been used is if a resident is not going to irrigate, then he does not have to connect to the system. Mayor Vandergrift said suppose $1,000,000 for reclaim was taken, and split into $500,000 without telling residents they have to reconnect unless the person had problems with their septic tanks. Mr. Smith said that the commission could do that, but it would take a policy change by the commission. He continued that other projects would have to be put off, and it is not a good business deal because the City will not get those reserve funds back to pay for the sewer system. Commissioner Keller agreed. The commissioner said for $1,000,000 one would only be talking about connecting 40 homes. Mayor Vandergrift said that there are 400 homes in Sawmill. Commissioner Keller said that with $1,000,000 connecting only 40 homes, ten times that amount is need to reach 400 homes. Mr. Smith said that this issue has been universally debated in Florida — how to go back into neighborhoods and retro fit. The only way he has seen it work politically is when there was an absolute environmental problem with high water where septic tanks were failing. Commissioner Keller asked if one has to have sewer in order to have reclaimed water. Mr. Smith said the past policy of a previous commission says that the harvesting of the water for the sewer should be given back to the people that provide the sewer. Things have changed since then, he added. Commissioner Keller said that in theory one does not need the one to do the other. Mr. Smith said an example is the City's negotiation with Orange County to bring reclaimed water from elsewhere into Ocoee. It August 17, 2011 Page 9 of 9 City Commission Budget Workshop could be done to the Sawmill neighborhood. Mayor Vandergrift said but yet the City is cutting off reclaim to Sawmill. The commissioner said that the more citizens that the City can get on reclaim, the more potable water Ocoee can save the better it is when the City has to go before the St. John Water Management District to ask for permits and such. Mr. Smith said that the City looked at making the system an enterprise system. The feeling from those contractors (before the economy went sour) was that it could be done if the City guaranteed a payment to the contractor of between $6,000 and $10000, most likely $8,000. This is much less than $20,000. Mr. Smith added that the utilities department would love the opportunity to do a pilot program with about 4 or 5 homes and put one of the systems in and deal with some of the contractors to go through and develop an experience that would be helpful in the future. The mayor ended with saying that he need not be told the political cost of the sewer issue since he lost an election in 1969 because of this very issue. At that time he proposed that the whole city be sewered using grants. His opponent convinced folks that doing so would mean they would be smelling sewage. The mayor lost the race. Mayor Vandergrift asked that the date and time for the public meeting be announced. Director Horton said that September 7, 6:00 p.m. will be the first public hearing. IV. ADJOURNMENT The meeting was adjourned at 7:56 p.m. APPROVED: Attest: City of Ocoee Be ikenberry, City Clerk S. Scott Vandergrift, Mayor