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HomeMy WebLinkAbout2016 07 11 City Commission Workshop Minutes CITY OF WINTER SPRINGS, FLORIDA Incorporated • 1959 ' ' coo wF'T CITY COMMISSION MINUTES WORKSHOP MONDAY, JULY 11, 2016 — 5:15 P.M. CITY HALL—COMMISSION CHAMBERS 1126 EAST STATE ROAD 434,WINTER SPRINGS, FLORIDA Mayor Charles Lacey Deputy Mayor Jean Hovey- Seat One Commissioner Kevin Cannon- Seat Two Commissioner Pam Carroll - Seat Three Commissioner Cade Resnick- Seat Four Commissioner Joanne M. Krebs - Seat Five CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 2 OF 8 CALL TO ORDER The Workshop of Monday,July 11, 2016 of the City Commission was called to Order by Mayor Charles Lacey at 5:15 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs,Florida 32708). Roll Call: Mayor Charles Lacey,present Deputy Mayor Jean Hovey,present Commissioner Kevin Cannon,present via telephone Commissioner Pam Carroll,present Commissioner Cade Resnick, absent Commissioner Joanne M.Krebs,present City Manager Kevin L. Smith,present City Attorney Anthony A. Garganese,present City Clerk Andrea Lorenzo-Luaces,present A moment of silence was held, followed by the Pledge of Allegiance. Regarding the Agenda and whether there were any Agenda Changes. Mayor Lacey stated, "Hearing none, it will stand as Adopted." PUBLIC INPUT Mayor Lacey opened "Public Input". No one spoke Mayor Lacey closed "Public Input". Commissioner Joanne M. Krebs commented, "I see that Chris (Caldwell, Director, Parks and Recreation Department)is in the audience-super, super, super event. I know it was not just you because we had Police there and so many other employees that helped, but what a wonderful event! Everybody that I spoke with remarked how nice it was to have the entertainment—the `Winter Springs Has Talent' an hour later because-they got to see it, so that was great." Next, Commissioner Krebs referenced a Rainbow Eucalyptus tree growing in the back of City Hall and offered her appreciation to Mr. Shawn Boyle, Director, Finance and Administrative Services Department for keeping it watered. Commissioner Krebs added, "It is looking beautiful!" Additional comments about the Rainbow Eucalyptus tree and its natural beauty followed. Mayor Lacey added, "Thank you Commissioner Krebs, and Chris (Caldwell), I echo her comments. From my point of view, I did not see a single hitch in the entire thing, so whatever problems there may have been, you covered them up well and of course the weather,you get all the credit for the weather..." CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 3 OF 8 REGULAR AGENDA REGULAR 500. Office of the City Manager REQUEST: Requesting the City Commission receive a Budget Overview Presentation from Staff on the Fiscal Year 2017 Budget. FISCAL IMPACT: The Fiscal Year 2017 Budget, as proposed, totals $41,957,633 (excluding appropriations to fund balance), and represents a $670,757 or 1.6%, decrease over the prior fiscal year's budget of $42,628,390. Total proposed General Fund spending of$17,350,455 represents a $112,909 increase, over the prior fiscal year. The proposed operating millage rate of 2.43 mills and voted debt service millage rate of 0.11 mills remain unchanged from the prior fiscal year. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff,and is available on the City's Website,LaserFiche,and the City's Server.Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche,and the City's Server; has been sent to applicable City Staff,Media/Press Representatives who have requested Agendas/Agenda Item information,Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at six (6) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. Additionally, the Fiscal Year 2017 Proposed Budget has been posted to the City's Website. The Budget Hearing was advertised in the City's Newsletter and on the City's electronic sign. RECOMMENDATION: The City Manager is requesting the Mayor and City Commission receive a budget overview presentation from Staff on the Fiscal Year 2017 Budget City Manager Kevin L. Smith began with an overview of the presentation for the evening, commented on General Fund Revenues, that property taxes are trending up for the fourth year in a row, communication service taxes, and noted, "We are continuing to recommend a Budget that would continue to provide all services that we previously provided our citizens, continue to have that high quality of service without going back to our taxpayers and voluntarily taking more tax dollars from them." Next, Manager Smith spoke about other operating funds, and referring to changes in Federal water quality standards, Manager Smith addressed the costs of water quality improvements and the possibility of a cost increase. Additional comments ensued on fixed and variable utility rates. Mayor Lacey pointed out, "Our water quality has not declined—the federal government in its wisdom has decided that the water we have been drinking for years is not sufficiently cleansed and so we are spending six million dollars ($6,000,000,000.00) unnecessarily in my point of view." Manager Smith added, "I would agree with that Mayor and I would go a step further to say— the Federal Government has decided they are going to change the testing and the metrics and the scoring for how they determine whether or not it's a sufficient quality, somewhat arbitrarily, in my humble opinion." CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 4 OF 8 Next, Manager Smith spoke of the Solid Waste Fund and stated, "Likely, although for purposes of this Budget, the rate will be the same as it has been for ten (10) years now —we will likely be needing to come back to this body during the year to ask for an Index to be placed on that rate. As a reminder, the eighteen dollar and ten cent ($18.10)rate has been in place since the inception of the Waste-Pro contract, which again is around ten(10)years. The Waste-Pro collection cost is indexed. So, we pay Waste-Pro an amount that is increased every year by the CPI(Consumer Price Index),yet our rate remains flat. We've been able to absorb that for ten(10)years now, but we're approaching the point where it's just mathematically not going to be able to continue. So, an Index of a small amount will ensure that a business type fund is able to run like a business, continue like a business, and we will pass on only the cost that we absorb to our rate payers. Again, that's not incorporated in this Budget, but it would likely be recommended to you all and brought to you all for consideration during this Fiscal Year, for Fiscal Year [20]'18 adoption - short of some garbage company coming in and doing it significantly cheaper, we are going to need this Index. I do not see that happening because we have a favored nation's clause in our current contract. I believe everybody opines that Waste-Pro does an excellent job on the customer service side and I can assure you that on the rate side we check that and—we actually have a really favorable rate right now." Mayor Lacy inquired, "When does the Waste-Pro contract currently expire?" Mr. Kip Lockcuff, P.E., Director, Public Works/Utility Departments stated, "2019". Manager Smith added, "We could certainly again go out to Bid, hoping that we get better rates and then perhaps not have to do this but, everybody knows what the other rates are. Again,we have the favored nation's clause and I don't see that as a likely result that we would go out to Bid. We will certainly challenge the rates and make sure that that continues to be the case." Next, Manager Smith addressed Economic Development and commented, "In the past years, everybody is familiar with what we have done relative to Economic Development. Seven (7) or eight (8) years ago we had hired a Consultant and there was a partnership going on with Oviedo, if you will that changed to us hiring our own person. Most recently we had discussed that we were funding a position but we had changed that in favor of taking a consulting approach. The current Budget has dollars in it to hire a Consultant for Economic Development purposes. This proposed Budget also maintains funds for that purpose but there has been much discussion on this dais so, Mayor, I would humbly request for a thought process on whether or not the Commission is comfortable with this proposed Budget having some Consulting dollars for Economic Development. If so, it will be maintained as we bring it forward in September for approval or would we like to go a different direction. I believe that I have heeded the wishes of the Commission but, again — on that specific topic, I would appreciate any input anybody would like to offer me, if I am going the right direction, a different direction, or none of the above." Commissioner Pam Carroll suggested, "Hire a Consultant for a set fee. After they—to your satisfaction and ours lay out what they proposed to do,what their goals are, and what they feel they could bring to the City. So, I want to see us keep money in the Budget to enable us to do that. When you bring somebody on full-time then you have the whole compensation package and I think that using a Consultant with a fixed fee is a better use of funds." Mayor Lacey remarked, "I would concur, at least with the part of not bringing on someone on full-time. I think we have beat that to death a few times and I think you lock yourself in to someone who may not be the exact right person for the given opportunity that comes along; so, I think you are better served by being positioned to be opportunistic and the approach to any Economic Development activity. CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 5 OF 8 As to the Consulting dollars, I think to have a little bit in the pot to be ready to spend would be good, but I think we have got a lot of work to do before we would know what the right approach is and how that serves the opportunities that we have in front of us. So,putting it in the Budget does not harm us, so I have no problem with that; but I just want to make sure we engage in a careful process before we actually spend those dollars." Manager Smith said,"I would concur Mayor." Commissioner Krebs stated, "I would agree." Commissioner Kevin Cannon asked Manager Smith, "In the last three (3) years, how many dollars total, has the City of Winter Springs spent for Economic Development directly attributable to Economic Development consultants, employees, whatever?" Manager Smith said, "I'd have to look, Commissioner. Off the top of my head we haven't spent anything this Fiscal Year, the prior Fiscal Year I don't believe we spent anything and I believe prior to that we had an employee on board and Shawn (Boyle) just reminded me that we have an Economic Development model that we pay maintenance fees of five thousand dollars ($5,000.00) per year to maintain." Additional comments ensued. Continuing, Commissioner Cannon remarked about past Economic Development efforts and stated, "I also feel very strongly that we as a City are losing ground if we do not seriously move forward with - a decent amount of money so that we can consult with persons to really try to steer some of the commercial industry, professional STEM (Science/Technology/Engineering/Mathematics)type businesses that we are trying to recruit into our City and I feel as though by not doing so we are losing ground by comparison to other cities that are getting those businesses. So, I would strongly encourage that we do maintain that in the Budget and I would like to ask that that specific Item be placed as an Agenda Item on a Regular Commission Meeting for discussion." Mayor Lacey noted, "As a procedural matter,the Budget has to come back for approval. I would suggest that you have got a process there when that is approved formally by the Commission to interject any Amendments or direction that you would like to see changed." Manager Smith added, "Any Consultant that may be hired relative to those dollars would need to come in front of this body if it's greater than twenty-five thousand dollars ($25,000.00)for your approval anyways, so there would be another opportunity too—in that respect." Commissioner Cannon said, "Right now my concern is making sure there is an adequate sum of money in there, that does not mean we are going to spend it all—but we have not spent really anything that I can recall or much of anything in the last three(3)years and I am not finding fault with anybody." With further comments, Commissioner Cannon remarked, "I am convinced that with our City Manager, we can put the necessary safeguards in place so that if a Consultant or company or whomever we are working with just is not doing the job, that is it—it is an at will type situation, if you will." Continuing, Commissioner Cannon said, "I understand Mayor that there will be another point when this comes before the Commission for a Vote, the Budget itself,but I also City Manager and Mr. Mayor, I really would like to have a set Agenda Item towards the end of the year on an Agenda specifically addressing the issue of Economic Development. What inquiries Kevin Smith and Randy (Stevenson, ASLA, AICP, Director, Community Development Department) have looked at — what ideas they have, what feelers they have out and so forth. Just so that we get an update on where they are with that and that is the only comment and request that I have." With comments about the geographic area of Winter Springs, Commissioner Carroll stated, "I still feel strongly that we leave you enough money in the Budget and then let you first initially do a first vetting of any Consultants' proposals and obviously bring that back to the Commission." Mayor Lacey said to Manager Smith, "You were asking for direction as to whether what is down as a placeholder in the Budget, essentially, is satisfactory?" Manager Smith replied, "Yes, I think I have what I need, Mayor. Thank you very much. Commissioners,thank you." CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 6 OF 8 Manager Smith thanked the City Commission for their support and praised both Ms. Kelly Balagia, Budget Analyst, Finance and Administrative Services Department and Mr. Boyle, as well as the other Department Directors for their efforts related to the Budget. Manager Smith added, "They deserve all the credit and I'd like to offer that to them at this time." Commissioner Cannon asked which page(s) in this Budget show what has been noted for Economic Development. With references to Page 48, Manager Smith noted, "It's roughly four million dollars ($4,000,000.00)." Further comments followed on General Fund Reserves and Consulting/Economic Development. Next, Commissioner Cannon asked, "Are you satisfied with how we — are handling our Pension Plan that even with the anticipated economic changes —we are going to be okay?" Manager Smith responded, "Today? Yes." With further comments, Manager Smith continued, "This Commission, as you know, took the recommendations of Staff back in 2011-2012, where we had to unfortunately make some changes to ensure that Plans' ongoing sustainability and viability - approximately thirty million dollars ($30,000,000.00) in savings to the Plan and ultimately the tax payers." Further remarks. Manager Smith pointed out, "Around 2009, we were at approximately fifty (50%) to fifty-two percent (52%) funding on our Pension Plan. We sit here today in the neighborhood of— seventy-eight percent (78%) funded. So, in all humility, I believe that was some—positive results that make me feel a whole lot better about that Plan than I did a few short years ago." Continuing, Commissioner Cannon referred to Mr. Boyle and inquired, "Do you feel as though the allocation of our investments and the way that we have got it being managed with whatever the algorithms that they are using is sufficient to cover what is likely to be, some I take within the next twelve (12) months, some likely market - major fluctuations." Mr. Boyle commented, "We're fortunate to have a fantastic — Board of Trustees. There's some very knowledgeable people on there and they've positioned us for steady safe returns over the thirty(30) year horizon that we project over. There's some financial investment theory that says you can't take a portfolio like this and hedge from month to month, or year to year; really your time horizon's thirty (30)years, but I think they've done an excellent job,yes." Further on the matter of Economic Development, Commissioner Krebs asked, "Where do we position the [University of Central Florida Business] Incubator?" Manager Smith replied, "The Incubator is funded in a General Government line item similar to last year, the year before, the year before." With further remarks, Manager Smith stated, "I would categorize it as Economic Development, so I stand corrected on the earlier question - I did not include..." Commissioner Krebs asked, "...1 would like to know how much monies we have invested in that as well." Manager Smith stated, "I would say now I would seventy-five thousand dollars ($75,000.00)to that number." Mayor Lacey commented, "I think that's a good point,Commissioner Krebs." Mayor Lacey then inquired, "Are we going to be meeting our Budget and if we were accompanied netting a profit?" Manager Smith stated, "What we have done recently is due to, again if I may, the heavy lifting of all your Department Heads and the fiscal responsibility that they have embraced and exhibited and as a result, with last year and this year, we're confident that we'll be positive at the year end. Not much, but a positive." Further brief comments followed. CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP-JULY 11,2016 PAGE 7 OF 8 Commissioner Carroll referred to the impact of the Community Redevelopment Agency - Florida Avenue in this Budget; and Manager Smith noted, "And the point Kelly (Balagia) was about to make is the valuations in our CRA (Community Redevelopment Agency) District, I think doubled this year." Ms. Balagia pointed out, "Almost forty percent (40%)." Manager Smith continued, "So, as a result, our contribution to that CRA (Community Redevelopment Agency) is going up — from eighty-nine thousand three hundred and eighty-five dollars ($89,385.00) to one hundred and forty-one thousand four hundred and six dollars ($141,406.00). So, that also takes a portion of those increased property tax dollars into a specific pot of money." Mayor Lacey remarked, "It's not exactly relevant to the Budget, but if we had not joined the CRA (Community Redevelopment Agency) in the first place, all that would be money available to us to spend on that area that now the county is spending money on instead of us." Manager Smith added, "Roughly a million dollars ($1,000,000.00) over the life of it." Commissioner Carroll mentioned, "I worked really hard on that Florida Av[enue], to get it passed, four to one (4 to 1) on the County Commission, otherwise known as the CRA (Community Redevelopment Agency)." Brief comments. Commissioner Carroll mentioned the Therapy Pool at the Winter Springs Senior Center, and remarks followed about staffing, certifications, Volunteers, and safety matters. Manager Smith noted, "We're meeting the requirements, the qualifications, for all things that we need to." Mr. Caldwell added, `Everything that Kevin (Smith) said is correct and we're constantly evaluating that. Currently looking at a different body for certification as well, working with Florida Hospital; so, we're in the current process of doing that and we have doubled all of our safety equipment,and so we meet all the guidelines for all the safety equipment around the pool as well." Manager Smith pointed out, "We did make a significant investment in safety equipment." With further remarks about the Therapy Pool/Winter Springs Senior Center,Manager Smith then stated,"We are properly positioned." Deputy Mayor Jean Hovey commented on increased health coverage costs and sought confirmation that the increase could be sustained without raising the Millage Rate. Manager Smith stated, "Yes." With comments on claims and the market, Manager Smith added, "I don't actually have the final, final numbers yet. We will certainly have them by adoption in September,but we do anticipate the increase that we budgeted to unfortunately materialize." With additional remarks, Deputy Mayor Hovey inquired if the already increased cost of health coverage would continue to rise. Manager Smith stated, "I don't anticipate it to,Commissioner,no. I think we're pretty close." Commissioner Cannon offered his thanks to Ms. Balagia, Mr. Boyle, Manager Smith, the Department Directors and said, "I know there is a lot of work represented by this proposed Budget and thank you very much." Commissioner Carroll also said,"Thank you." PUBLIC INPUT Mayor Lacey opened "Public Input". Mr. Arsenio Calle, 110 Arrowhead Court, Winter Springs, Florida: asked about economic benefits related to financial support to the University of Central Florida Business Incubator. With further discussion,Mr. Calle said he hoped the City would look into this further. Mayor Lacey closed "Public Input". CITY OF WINTER SPRINGS,FLORIDA MINUTES CITY COMMISSION WORKSHOP—JULY 11,2016 PAGE 8 OF 8 Commissioner Carroll also thanked Manager Smith,Mr.Boyle, and Ms.Balagia. Lastly, Manager Smith mentioned, "At the next City Commission Meeting, we will need to bring forward an Agenda Item to set the Tentative Millage Rate,that Millage Rate that will go out in the TRIM Notices. I intend to bring that forward at 2.43 plus 0.11 for 2.55 Mill total, for your consideration." ADJOURNMENT Mayor Lacey adjourned the Workshop at 6:03 p.m. RESPECTFULLY SUBMITTED: n NZO-LUACES,MMC CITY ERK. APPROVED: J? f, MAYOR CRAkL Y NOTE: These Minutes were approved at the July 25 2016 City Commission Regular Meeting.