04-14-09 Workshop Meeting.docWORKSHOP MEETING
April 14, 2009
A Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was called to
order by Mayor Nelson S. McDuffie in the First Floor Conference Room at City Hall at 6:00 p.m.,
on Tuesday, April 14, 2009.
Roll call showed:
Present - Commissioner Gary P. Eliopoulos
Commissioner Fred B. Fetzer
Commissioner Mackenson Bernard
Commissioner Adam Frankel
Mayor Nelson S. McDuffie
Also present were -- David T. Harden, City Manager
Robert A. Barcinski, Assistant City Manager
Douglas Smith, Assistant City Manager
Susan Ruby, City Attorney
Chevelle D. Nubin, City Clerk
Mayor McDuffie called the meeting to order and announced that it had been called for the purpose
of considering the following items:
WORKSHOP AGENDA
1. Reco Lion of Grou SWdy Exchan e GSE from Rio Grande Do Sul Brazil
Mayor McDuffie introduced Former Commissioner Patricia Archer. Ms. Archer explained that
the Group Study Exchange (GSE) program of the Rotary Foundation of Rotary International is
a unique cultural and vocational exchange opportunity for young business and professional men
and women between the ages of 25--40 in the initial years of their professional life. Mayor
McDuffie welcomed the Group Study Exchange (GSE) Team from Brazil. He read into the
record the "Rotary Group Study Exchange Team" proclamation.
2. Proj2osed Police and Fire Pension Plan Amendments
Susan Ruby, City Attorney introduced this item and stated that they received two proposed
ordinances amending the Police and Fire Pension Plan from Chuck Jeroloman, Chairperson, of
the Board of Trustees which was submitted to the pension lawyers for their response in regards
to the impact this may have on the City. She stated that the actuarial study letter certifies that
the Pop -Up option would not cause any increase in cost, however in regards to extending the
drop, it may increase or decrease.
It was the consensus of the Commission to bring the 'Top-Up Option" Ordinance forward and
asked staff do more research for the DROP extension ordinance.
3. Presentation on BSCA Com uter System Analysis and Public Safety Software RFP
Barry Sttock of Barry Strock Consulting Associates, Inc. (BSCA) presented this item. Mr. Strock
stated that they did a Report Card Analysis of both the Financial and Public Safety Business
Systems and re-- engineering issues. He discussed the executive summary findings as follows:
Information Technology Division has been excellent in supporting the RFG based legacy
systems; the time has come to replace both the financial suite of applications and the public
safety suite applications. The current financial payroll and utility CIS (Customer Information
Systems) and other applications in the financial suite software applications are clearly at the end
of their iifecycle. He stated the public safety procurement has already begun. Mr. Strock also
discussed the Request for Proposal (RFP) and stated that a decision has not been officially made
in terms of giving them the go ahead on doing the same for the financial system. He believes
that both systems can be deployed at the same time or relatively at the same time. He discussed
the following four benchmarks used to look at technology procurements: Cost Containment to
increase efficiency and contain a reduce cost, Streamline Operations to increase the productivity
of the existing personnel and provide policy makers with essential management information,
Enhanced Service to provide employees with the tools to effectively represent and deliver the
tasks of government, and Accountability to provide clear cost and service justifications for
services provided to citizens and taxpayers. He believes that there is a need for a new end -user
contemporary system that would outweigh the risk of the old technology and this would be of
value to do it concurrently. Most of the work will be shouldered by Finance, Public Safety, and
Environmental Services; and better information to the Commissioners and the departments
outside of Finance will result. The probable cost of a financial system varies from $300,000 to
$800,000 and there is a maintenance fee associated with the software. This entire process is
about a 12 to 18 month window.
It was the consensus of the Commission for the City Manager to look at the budget to obtain
both the procurements at the same time but schedule conversions consecutively; not at the same
time.
4. Presentation on the Waste, Management Contract
Mayor MCDuffie introduced Mr. Kenneth J. MacNamee. Mr. MacNamee gave handouts to the
Commission. He briefly discussed the response letter that he sent to the Commission on
February 28, 2009 and the general ledger page that he received from Barbara Schooler, Utility
Billing Manager of the Utility Billing Division. He stated that he discovered that the City was
being underpaid by Waste Management on the franchise fees. He also discussed the Rear Door
Trash Service Comparison — Delray Beach vs. Gulfstream.
Joseph Safford, Finance Director, discussed Mr. MacNamee's concerns regarding the people in
his area bringing the garage curbside and they were being charged for rear door trash service.
Mr. MacNamee did not feel the residents had enough information to know that they did not
have to bring their garbage to the curbside. Mr. Safford stated that maps were placed on the
back of the utility bills to make sure the residents were informed. He briefly discussed the
franchise fees in question and stated it was obvious that something was wrong because the
2 April 14, 2009
franchise fee amounts looked the same as last year. The franchise fee rates had gone up 50%
for residential and were higher for commercial and we should have seen an increase in the fees.
Mr. Safford stated Waste Management responded to the change in this contract and they
explained why the franchise fees were not the same and why the franchise fee was not going up
by 50 %, 60 %, or 70 %. He stated the methodology was changed, 1) they did not have the
complete franchise fees on roll -off containers, so therefore they did not give the City franchise
fees anymore, 2) businesses are going out of business, 3) because of the rate increase businesses
are consolidating their services. So, there are reasons why the franchise is not going up the same
percentage as the rate increases. There are franchise fees coming in from other carriers that are
paying the City an upfront fee for C &D. Another issue was to obtain the information from
Waste Management and they provided the City with a summary. Mr. Safford stated that this
information is not easily accessible because Waste Management billing is done on a national
system and the local Waste Management office does not have access but they were able to get
the information. The information was given to Mr. MacNamee along with a spreadsheet. Mr.
Safford stated that he and Lula Butler, Director of Community Improvement, have sat with Mr.
MacNamee and gone over the information in detail, responses have been prepared and seat to
Mr. MacNamee. Mr. Safford stated that he did not receive the Mr. MacNamee letter dated
February 28, 2009. He suggested that we go back and answer the 16 questions discussed in the
letter tonight.
Mr. MacNamee asked if the data can be produced in an Excel spreadsheet.
Butch Carter of Waste Management explained the billing system and stated that the numbers are
never going to be totally recognizable. Secondly, their system is not in Excel. It can convert to
Excel but the data will be in account address because that is how their system works. Mr. Carter
informed Mr. MacNamee that he has the opportunity to have an independent auditor come in
and audit Waste Management's franchise fee revenue.
It was the consensus of the Commission for staff to re- address every item that was brought up
tonight and bring feedback to the Commission.
5. Gropu Homes Landlord Permits Definition of Fam4 & Transient Residential Use
Susan Ruby, City Attorney introduced this item. Terrill Pyburn, Assistant City Attorney
presented this item and stated there are four (4) proposed ordinances on which they would like
direction from the Commission. The first ordinance pertains to Group Homes, which amends
LDR Section 4.3.3(1), "Community Residential and Groups Homes ", to update references to
State statutes and licensing agency that were recently changed in the State statutes regarding
Community Residential and Group Homes and these changes are merely to update out of date
references to comport with state law. The second ordinance is to amend the Landlord Permits,
which amends Chapter 117 of the City Code of Ordinances, to provide additional requirements
for landlord permit approval, provide reasons why a landlord permit application may be denied
or revoked, and provide that landlords must follow eviction requirements under Chapter 83,
Florida Statutes or, not required by law, must provide a 48 hour notice and /or alternative
dwelling for 48 hours for their tenants. The third ordinance is to amend the LDR Appendix
"A ", definition of "Family" to provide that a family may consist of no more than three (3)
unrelated individuals. The fourth ordinance is to enact a new LDR Section 4.3.3 (ZZZ),
"Transient Residential Use ", to provide that the leasing, renting, licensing, subleasing or
3 April 14, 2009
otherwise allowing in any manner or form the use of single - family residential dwelling units for
periods of less than twelve (12) months with a turnover in occupancy more often than six (6)
times per year shall be prohibited in single - family and planned residential development zoning
districts.
It was the consensus of the Commission for staff to move forward with the ordinances.
6. Discussion regarding Charges for Support of Special Events
Mr. Robert Barcinski, Assistant City Manager, discussed this item. He discussed the Budget
Task Force recommendations along with an analysis of what the increase would have cost event
producers in calendar year 2008. Non - -profit event producers incorporated in the City now pay
65% of overtime costs and 100% of stage rental, trash boxes, light towers, barricade and
generator rentals. private non - profits not incorporated in the City and new event producers pay
the City 100% of all costs. The events with costs under $1,000 pay 50% of costs and Old
School Square and the Downtown Marketing Cooperative (DMC) pay 35% of our costs. The
net increase in revenue to the City based on 2008 costs would have been $11,313 with about
70% of the increase coming from the Delray Affair and the Garlic Fest. Mr. Barcinski stated the
total cost for the non City sponsored events was $253,990 and the total cost for the City
sponsored events was $196,756. He discussed the possibility of sponsors paying us 75% in
addition to charging for parking in certain surface lots for major events. He stated that the event
producers like the idea of charging for surface parking but did not like the 10% additional
charge. The DMC liked the parking option the best.
It was the consensus of the Commission to charge for parking in certain surface lots per staff
recommendations.
7. Bud et Direction for FY 2009/2010
Mr. David T. Harden, City Manager presented this item and asked the Commission for direction
regarding the budget for FY 2010.
Mayor McDuffie discussed the millage rate and stated he would like to see us hold the millage at
the current rate.
Mr. Fetzer stated that he would like to see from staff how the roll back rate would impact the
City and what additional cuts are necessary in order to maintain the current millage rate. He
stated that this should be communicated well with the residents.
Mr. Eliopoulos stated that we have to look at staffing for Fire Station #2. He supports more
budget meetings and would like to maintain the current millage rate. Mr. Harden suggested
having meetings outside of City Hall. Mr. Eliopoulos supports more communication with the
public.
Mr. Bernard concurs with Mayor McDuffie and Commissioners Fetzer and Eliopoulos. He
asked what amount the City would be able to collect on the business tax if the millage rate was
increased to 3 %. Mr. Bernard requested to know the number so we can see the impact.
4 Apri114, 2009
Mr. Frankel stated we need to consider increases in other fees and consider everything. It is
time to consider implementing fees regarding tourists.
Mr. Fetzer stated we need to consider fees. He is concerned with business taxes and would like
more data and specific examples.
Mr. Ehopoulos stated we may have to look at the option of going to a 4 -day work week with the
consideration of rotating staff, not necessarily closing City Hall on Fridays.
Mayor Duffie asked what is the ratio of non - exempt to exempt employees, hourly verses salary.
Mr. Harden stated he was not sure.
Mr. Bernard stated if we are going to reduce the work hours, it needs to be done across the
board.
Mayor McDuffie stated he agrees with everyone and everything needs to be considered.
Mayor McDuffie adjourned the Workshop Meeting at 8:55 p.m.
City Clerk
ATTEST:
MAYOR
The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information
provided herein is the Minutes of the Workshop Meeting of the City Commission held on Tuesday,
April 14, 2009 which Minutes were formally approved and adopted by the City Commission on May
5, 2009.
City Clerk
NOTE TO READER: If the Minutes you have received are not completed as indicated above,
this means they are not the official Minutes of the City Commission. They will become the official
Minutes only after review and approval, which may involve amendments, additions or deletions to
the Minutes as set forth above.
5 Apfil 14, 2009