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HomeMy WebLinkAbout1992 08 31 City Commission Workshop Minutes CITY <XM11 SS ION SPEC I AL MEET I NG/WORKSHOP August 31, 1992 . The meeting was called to order by Mayor Kulbes at 7:00 P.M. Mayor Philip A. Kulbes, Present City Manager R. Rozansky, Present Commissioner John V. Torcaso, Present Commissioner Don Jonas, Present Deputy Mayor John Lange llott i, Present Commissioner Terri Donnelly, Present Commissioner Cindy Kaehler, Present Mayor Kulbes mentioned that he received a letter fran Florida League of Cities asking the City to assist the disaster area in any way we can. He pointed out that we are not going to run down there on our own free wi 11 un less they invite us down. OUr Police Department received a letter requesting that if they were going to send anyone down, to notify the sheriff in Dade County as to who was going and how many and that they be certified officers. But not to came until the Sheriff requested their presence as there is mass confus ion down there and no body is in charge. SPEC I AL t'EET I NG . Consider Appointment of Underwriters and Authorize Resolutions for Refunding Issues: Mayor Kulbes said the special meeting was called to consider the appointment of underwriters and authorize resolutions for refunding issues. City Manager Rozansky passed out to the Commission a draft resolution he received fran Mike Stewart. He said the Attorney wanted the Commission to look over the resolution today, it doesn't have to be adopted today. Mike Stewart, Cap i ta 1 Market Consu 1 tants I nc. , was present to go over the selection of the underwriters with the Commission. Stewart stated the resolution is for the cari:>ination of the two systems. The reason Attorney Lang has asked to not to have it passed is to ask for certificates fran a nl..lTber of folks, bond council, engineers, CPA's and curse 1 ves , on a short order fran Fr i day to today; we cou 1 dn ' t get everybody's cert i f i cates together so the reso 1 ut ion is for your rev i ew and we can pass that once we have all the certificates fran everyone that say yes. Rozansky stated that Tan Lang wanted to be sure that the Commission understood that this is for the consolidation of the systems. Kulbes asked Stewart to go over the recoomendations and cannents on the findings of the review board that reviewed the RFP's. . Langellotti asked about the two caTPanies that analyzed the issue. Stewart stated that in the RFP we had asked for propos a 1 on the water and sewer, Wi 11 icm Hough and Leedy saw an opportunity on another issue the City has so included in their request for proposal they included an analysis of the improvement issue. There are sane savings there, due to that fact it was the recannendation of the cannittee, with our approval of that, that they would be recannended to be senior managers on that issue because of their city Commission Special Meeting/Workshop August 31, 1992 ~ Page 2 efforts. Torcaso asked if this was a good "pie" to have about eight outfits, to cut it up. Stewart said it is a fair "pie", a lot of times one firm will get a full issue. What we tried to do here is everyone that put in a proposal to the City will be allowed to participate in the underwriting. Stewart stated that he thinks it is a fairness and you are rewarding the senior managers that preformed on those issues. > There was discussion on the number of companies participating. Commissioner Kaehler said that one of the things the committee had to look at was the gross spread and the senior on #4 on the first issue, their gross spread was $6.25 and Leedy's was $7.95 and that is a very big difference, therefore the committee felt that since Harcourt "sharpened their pencil" to the degree that they did, that they deserve to be the seniors on this one. There was discussion on the dollar amount. ~ Stewart stated that they were securities to make sure there is other side of the transaction. escrow securities. going to go out and get bids for the not additional monies being made on the We wi 11 go out and get three bids on the ~ Stewart stated that the carrnittee agreed in looking over the proposals that almost everyone of these firms could have done a satisfactory job in underwriting the bond. What we looked at was spread, contact with the City knowledge of the system, the interest rate scales and the local presence; those are the five factors we reviewed. They all were close three firms were in contact with the City before, all of their scales were almost "on top of each other" except Prudent i a 1 was slight 1 y lower. Then you have a spread where there was a $6. 25 spread to a $7.95 spread, so there was about $1.50 or $1.70 difference in the spread. The local presence- Prudential/Gardner Q--oup has a local office, Leedy has an office here, so they were very close on those two counts. The knowledge of the system - we had a decent discussion on why we are looking at the consolidation in three of the four proposals, so it came down to who was going to offer the best price for the City. In regards to that we decided that Prudential was there because of the $6.25; because of the tightness of the spread we thought it would be fair to allow the others to participate. Since William R. Hough did same extra work even though we didn't ask for an analysis of the improvement issue they had given that in the past and they included it again in the proposal so we said that they would then be recarrnended to the Commission that they be a senior manager on that issue and then the others would get a smaller piece of that issue too. The allotments shows that in regards to the refunding of the water and sewer, Hough and Leedy wi 11 participate with the ability if they so choose, to sell a million bonds ap i ece , A. G. Edwards wou 1 d se 11 ami 11 ion, and Harcourt Ryder 500 bonds. On the smaller issue you "flip flop" and Leedy Corp. and William R. Hough will be the senior managers and book runners on that issue and the other firms would get smaller percentage pieces of that issue if they can perform based City Commission Special Meeting/Workshop August 31, 1992 . Page 3 on the $7.52 spread, which was the spread that Hough and Leedy Corps. provided in their analysis. Discussion. Stewart went over the dollar value of the spread from the different companies. Kaehler IOOved to accept the recannendation from J. Lentz as stated in his memo of August 26, 1992 (attached to these minutes). Seconded by Jonas. Discussion. Vote: Torcaso: nay; Jonas: aye; Langellotti: any; Donnelly: aye; Kaehler: aye. Motion carried. WORKSHOP t1:ET I NG Second Revision to 1991/1992 BudQet: Rozansky stated that the reason for this is because last year when we adopted the present budget we did not get our insurance costs, there was such a disparity. The reason is that we didn't get it into the last year's budget because we did not get the insurance bill in until after we adopted the budget. We wanted to put this in the second revision because we forgot to put it in for the first revision and it has already been paid out. . Lange110tti asked about the 10% increase in health insurance. Harry Martin, Finance Director, stated that is 10% for next year on one of the insurances, Florida Municipal Health. Langel10tti stated that in looking over the policy we have is there some way that we can raise the deductible from $100.00 to $250 or $500, and raise that co-insurance from 3,000 to 5,000. If you look at that there could be quite a bit of savings on the major medical plan. Rozansky stated that is a benefit that the City gives to the employees. Lange110tti said that if we took a census of the employees on that plan, I think you would find out that 75%-80% never used it. There was discussion on the deductible is $100 coverage. the deductible. It was detenmined that for single coverage and $200 for family Rozansky stated that he feels we need to ask the employees if they are satisfied with the insurance and how they are getting along, as compared to tak ing lOOney away from them, because that is what we would be doing. He said that he is speaking for the employees. Discussion. Langellotti said that he thinks the City should look into raising the deductible to see how much the savings is. . Kulbes asked the City Manager to check that out and report back at the next meeting. Rozansky stated that we can adjust this anytime through the budget process if that is what you want to do; my reccmnendation right now is that is part of the benefit package but if you want we will take a poll and look at it. Rozansky said he would find out the difference and what the savings , , . . would be. City Commission Special Meeting/Workshop August 31, 1992 Page 4 Rozansky stated that he will look into that, but now we are talking about the one we already have spent, last year when we adopted the budget they didn't give us the increase in time. I think it went up last year something 1 ike 22%. After we adopted the budget the insurance bi 11 came in, when we adjusted the budget the first time we were tied up and forgot so what I did, I don't want to go in with a deficit like this in the budget, we need to straighten it out and get our bookkeeping in order so I asked Harry to put it in this special revision. FY 1992/93 BlJXET - DEPARTtENT REV I EW Winter Springs Water & Sewer Department: Kulbes asked Kipton Lockcuff, utility Director, if he is anticipating a pick-up in building penmits to give us an increase. Lockcuff said no we are not, the reason for the increase shown is basically for the Shepard Road construction under Capital, for $250,000. We talked about funding that by taking it out of the revenues and funding it fram our retained earnings and reducing those revenues by $250,000. . Rozansky said that would put us more in line when we do the refunding and that way it will cover the debt service. Lockcuff stated that they have one problem that has come up, and that is this year we had budgeted $75,000 for the entrance road to the sewer plant and in the rev i s i on we took it down to $50,000. Because we are i nvo 1 ved with pennits with st. John's and DOT it doesn't appear that we are going to spend that money this year so we would like to add another line code on the revenue side fram our revenue generation fund and add another revenue fram a separate fund. The revenue generation fund shows up on the expenditures $50,698, this is money that is required because of the DER grant that requires we put this much money aside every year, we have been doing this for 4 or 5 years and we haven't used the money so we would like bring that in as a revenue in the amount of $75,000 to cover the construction of the sewer plant entrance road. In the opinion of our consultant this is an acceptable use. Discussion. W.S.W.S. East - Jonas asked why the salaries have gone up. Lockcuff stated that for East the sa 1 ary is go i ng up fram the rev i sed nl.l1'ber because of one vacancy that was not filled as part of the cut back; we have one maintenance worker position that is vacant that we will be filling. And the other difference I believe is for merit and any up-grades and also over-time pay. . Kulbes asked about line item 4800, you are asking for a $2,250 increase. Lockcuff said he plans on funding out of that is our water conservation progr~. Kulbes also asked about line item 64.10 - other equipment, the $5,000 for cOOTTlJnications. Lockcuff said the vehicles do not have any radios and that . is what that is for. . City Commission Special Meeting/Workshop August 31, 1992 Page 5 RECREATION DEPARTMENT: Ku1bes asked about the increase in line item 43.10 - utility Service. Glenn Whitsett, Recreation Director, said that is for the utilities, lights, maintenance, parking lot lighting etc. Whitsett said he has checked with the Power Company and was told it probably would run from $1,100 to $2,500 per m::>nth depend i ng on the time of year. Kaeh ler asked if there was a dollar figure that is est imated from the revenues from the concession. Whitsett said the best estimate that he can cane up with is that it could go as high as $250,000 gross per year and we could make about $70,000 per year. Kaehler asked if we will be charging to use the fields. Whitsett stated for the Little Leagues we will be taking care of the lights, and umpires. We will control the concession, they will have sane volunteers that will work. Billy Johnson, Superintendent Parks/Grounds, said most Cities pay for everything. He also stated that Seminole Pony League will be coming under Winter Springs Pony League and they have asked us to help them out for at least one year until they can build up their own sponsors and build up some revenue. . Ku1bes asked about line code 44.10 - equipment rental, there is no m::>ney in that 1 ine code. Rozansky stated that the reason is that there are all new fields there and we rented mowers and other equipment to take care of the fields because it tears up the good mowers. We have the equipment we need next year to handle the fields. Jonas asked what the procedure will be for the concession stands. Whitsett stated that we will inquire about a qualified, certified State cleared food handler manager to handle the concession. From that we wi 11 have volunteers from the various leagues to help supplement, in return we are giving them the lights and umpires. Whitsett also said that we now have a vehicle will be for special projects to go out to the different parks for mobile concession. Lange110tti asked if $1,900 is enough for park security. Whitsett stated that we are in the "feeling" process and we are not sure what wi 11 be required. We may have to have some of my people over night, depending on what type of problems we are faced with. Rozansky mentioned that there was some over the week end. Whitsett stated that the power room was broken into and pu 11 ed out a 11 the telephone wires and tried to get into the concession stand. . Discussion on on-site security. It was detenmined that this would be looked into for cost factors etc. and night security such as a night watchman who could move about the park and other types of security available. . . . City Commission Special Meeting/Workshop August 31, 1992 Page 6 GENERAL GOVERNMENT: Rozansky said there is reserves for computers, as you can see we took the consu 1 tant out. Kulbes asked about vehicles, and stated that the City Manager's vehicle was lost in the hurricane and the engineer needs a vehicle and stated that he feels this should be included in the budget for next year. Kulbes also questioned line item 63.10 - road drainage study for $50,000. Rozansky stated that was the original one and was never made. He said that we would eventually have to do and when I brought it up this year the Commission didn't want to do it. He said that this is the same money, we are not adding to it. Discussion. Rozansky said that he would get with the City Engineer and the consulting engineer, tell them exactally what we are looking for and I will come back to the Commission. Kaehler asked why the unemplo~t compensation was reduced. Martin said hopefully we will not have any roore people terminated who will file unemployment claims. Martin also explained that the City does not pay unemployment to the State, we pay back the State for what they pay to the former employee. CAP I TAL IMPROVEMENTS i TRANSPORT AT I ON J MPROVEt'ENT: Kulbes asked the City Manager if this would be increased Rozansky stated that if the Commission approves, he would that in this revised budget so we can get this year's price. under $13,000. for a vehicle. like to include The price is Kulbes asked about a confined space recovery system. Gil Artman, Public Works Director, explained that this is a safety requirement to extract someone out of a pipe and we will be sharing this with the utility Department. PERSONNEL. SALARIES: Kulbes mentioned that the Police Department is asking for another officer to be a School Resource Officer. Police Chief John Govoruhk stated that the School Board will pay 50% of the salary. Rozansky stated that the $20,000 for a Planner will be taken out of the Administration budget. Kaehler questioned the merit pay for Department heads being in the City Manager's budget. She said that the Charter states'money cannot be moved fram one department to another without Commission approval. Discussion. Martin explained that when a merit is given it comes out of the Manager's Department it is not transferred into another Department's 1 ine code. Rozansky stated he doesn't have a problem with taking it out of his line code and putting it into the Department's line code. . . . , . City Commission Special Meeting/Workshop August 31, 1992 Page 7 Rozansky stated that the next meeting is for a tentative budget hearing for September 14th and if the Commission wants more work before this we should have another workshop before that date. Also, what I asked before about getting a car. The Commission was in agreement to the purchase of a car fram this year's budget for the City Manager. The Commission decided to have another workshop on Wednesday, September 9, 1992. The meeting was adjourned at 9:10 P.M. Respectfully Submitted, Margo Hopk ins Deputy City Clerk