07-14-09 Agenda Spec WSCITY COMMISSION
CITY OF DELRAY BEACH, FLORIDA
SPECIAL/WORKSHOP MEETING -TUESDAY, JULY 14, 2009
6:00 P.M. DELRAY BEACH CITY HALL FIRST FLOOR CONFERENCE ROOM
The City will furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal
opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the City. Contact Doug Smith at 243-
7010, 24 hours prior to the program or activity in order for the City to reasonably accommodate your request. Adaptive listening devices
are available for meetings in the Commission Chambers.
SPECIAL MEETING AGENDA
Pursuant to Section 3.12 of the Charter of the City of Delray Beach, Mayor Nelson S. McDuffie has instructed me to announce a Special
Meeting of the City Commission to be held for the following purposes:
SPECIAL EVENT REQUEST/32ND ANNUAL ROOTS CULTURAL FESTIVAL/YOUTH
BASKETBALL TOURNAMENT:Approve aspecial event request from the Roots Cultural Festival,
Inc. for a Youth Basketball Tournament to be held from 7:00 - 10:00 p.m. on July 17, 9:00 a.m. - 9:00
p.m. on July 18 and 10:00 a.m. - 4:00 p.m. on July 19, 2009; approve staff support for security and
event signage to be installed no earlier than ten (10) days prior to the event; and approve waiver of the
facility rental fees for Pompey Park and the Community Center; contingent upon sponsor providing a
liability insurance certificate and a hold harmless agreement at least one week prior to the event.
2• SPECIAL EVENT REQUEST/32ND ANNUAL ROOTS CULTURAL FESTIVAL/ADULT
BASKETBALL TOURNAMENT:Approve aspecial event request from the Roots Cultural Festival,
Inc. for an Adult Basketball Tournament to be held from 6:00 - 10:00 p.m. on July 31, 9:00 a.m. - 9:00
p.m. on August 1 and from 10:00 a.m. - 3:00 p.m. on August 2, 2009; and authorize staff support for
security, event signage which is to be installed no earlier than ten (10) days prior to the event, and waiver
of the facility rental fee for City facilities (Pompey Park Gym and the Community Center) for the
tournament; contingent upon sponsor providing a liability insurance certificate and a hold harmless
agreement at least one week prior to the event.
WORKSHOP AGENDA
1. Options for use of the Old School Square Garage retail space
2. Presentation of the Budget Task Force Final Report
3. Presentation regarding the proposed Fire-Rescue Training Site
4. Discussion regarding the Green Task Force
5. Commission Comments
Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at
this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based.
The City neither provides nor prepares such record.
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Robert A. Barcinski, Assistant City Manager
THROUGH: David T. Harden, City Manager
DATE: July 8, 2009
SUBJECT: AGENDA ITEM SP.1 -SPECIAL/WORKSHOP MEETING OF JULY 14, 2009
SPECIAL EVENT REQUEST/32ND ANNUAL ROOTS CULTURAL FESTIVAL/YOUTH
BASKETBALL TOURNAMENT
ITEM BEFORE COMMISSION
City Commission is requested to approve a special event request received from Roots Cultural Festival
Inc. for a Youth Basketball Tournament proposed to be held from 7:00 p.m. - 10:00 p.m. on July 17,
2009, 9:00 a.m. - 9:00 p.m. on July 18, 2009 and 10:00 a.m. - 4:00 p.m. on July 19, 2009. Commission
is also requested to approve staff support for security, to provide 4' x 4' event signage and to waive any
rental fees for the use of Pompey Park and the Community Center.
BACKGROUND
Attached is the special event permit and budget submitted by Alberta McCarthy on behalf of Roots
Cultural Festival Inc. for the Youth Tournament. A site plan is not necessary since the tournament will
take place in the Pompey Park Gym and the Community Center Gym. In past years Commission has
waived rental fees.
The estimated overtime cost for the Youth Tournament is $4,678. Based on event policies and
procedures, the charge for overtime costs for the Youth Tournament will be $2,390 and the signage is
$250 for a total of $2,640. Gymnasium rental fees for the first three hours would be $250 plus 50% of
ticket receipts at each site. Also, other facility rental fees at Pompey Park would be $30 for the kitchen
and $60 for the auditorium for the first three hours. Additional fees would apply for subsequent hours.
Staff recommends waiving all facility rental fees for the event.
RECOMMENDATION
Staff recommends approval of the special event permit for the Roots Cultural Festival Youth Basketball
Tournament, to waive rental fees for the use of Pompey Park and the Community Center, to approve
staff support for security and to provide standard event signage to be installed no earlier than ten (10)
days prior to the tournament; contingent upon the receipt of an executed Hold Harmless Agreement and
Certificate of Liability Insurance at least one week prior to the tournament.
=- ,F City of Delray Beach
` 1 Special Event Permit
,i
~' ' Application
Event Name/Title:
PLEASE TYPE 4R PRINT
'~~s ~
Event Date(s): t "7 D
200
~-
[3E
~~~~! TRATiV~
' - ~~CES
1993
2001
7~
Times: _. `7_._. _~_;~._ -- /D~ n~
~~ ~ ~~
Event SponsorfProducer: ~oo~ S . ~,~ ~ c.uc~..Q ' ~~ ~wC.
Event ContactiCoordinator: ~ ~ ~1~ ~ ~ ~ ~~--c.~~
1
Name:
Address:
Event Description~Purpose:
~.~77t1r9t--
Brief History of Event (If applicable):
Planned Activities (Outline of activitiesinumber of activities, i.e. entertainment,
children's rides, games, othex programs): s~cR--~-P~-Y d r2`~ ~
~l
Number of Individuals Served Previous Year (if applicable}; _ ~. ~~° ui ®~-Y~'1_
Describe the targeted po~ulafion and expected attendance: ~~° r--'~~s ~-~t ~y.,~ ~'
Telephone Number: Cellular Number; s ~/~ 37F1o~'!t! Sf
E-mail Address: C~, lts-mac. rK.~-ter ~Q ~ ef.~ _m~n_
Describe how the program or proje t addresses community needs: ~ ozR.--~
r
Describe your Marketing{Promotions Progr~m (How will you marketlpromote, i,e. TV,
radio, posters, flyers, web_sites, other}: t5~-Le r ,_.~~~~, P~ ~~~-~
.~
Sponsor Category (please check) City ^ Non-ProfitlCharitable ~ Private ^
Co-Sponsor -Non-Prof t/Private ^
(If~Von profit attach proof of SOIc(3), c(4), c(6), C(IO}, or c(19) or (d)
Event Location. (Describe area boundaries of event/location): `~+~ J
1~
lea,,. ~, .. ~~ L.b, ,y-P~ ~4.-B.~ o~~t ~c~-+~fdu.-eX~-~e~dti-~ ~.....~.~
m
Site plan attached: yes no ~ Nl~ ~` `~
(Site plan refit{fired for entire event site. Include locations of tents, stage, portalets,
dumpsters, portable lighting, and barricade location if applicable.)
Rental of Old School Square: yes no t~
(If yes, attach proof of appraval)
Private Property Use: yes no
(If yes, attach letter giving authorization from properky owner}
Event budget attached: yes ,~ no
(Required for all events)
Previous year RevenuelExpense summary attached: yes '~ no
(Required for all events)
Do you have cash sponsors for the event: yes no
(Indicated on budget}
Do you have inkind sponsors for the event: yes ~ no
(Indicated on budget}
U:IwwdatalCreative Ciry Coiiabrative Committeelspecia! Event Permit Application Pina! 9,b.(37.doc
Serving ar selling alcoholic beverages: yes no `~
(If yes, copy of license and alcohol Liability insurance required hvo (2) weeks prior to
event)
Event certificate of insurance attached: yes na ~
(Required two (2) jveeks prior to event naming the City as additional insured, also
required for vendors)
~
/
~r
Playing of amplified music: yes no
(Waiver required)
Will there be entertainment: yes / no
(If yes, attached list of Performers and/or DJ's)
If yes, sponsor agrees all entertainment will be family oriented
and contain na obscenities: yes ~/ no
Requesting Police assistance: yes '~ no
{traffic controllsecurity)
Will supplement with private security: yes no ~
(If yes, steed plan attacJ'ied)
Requesting Emergency Medical assistance: yes no
Requesting barricade assistance: yes no
(If no, how are you handling?)
Requesting trash removallclean up assistance: yes no '~
{Will be billed to sponsor)
Requesting trash boxes/containers and liners: yes no
Requesting stage use: yes no ~
(If yes, elteck type)
Large stage (1~' x 36') ^ ,Small stage (16' x 21') ^ Half small stage (S' x 21')
Requesting signage: yes ~ no
'I~pe: 4'x4'Event sign ~ Parking Signs
Banner hanging Indicate dates required
(Waiver required if more titan one (1) week prior to event)
Requesting City Portable Generator: yes
{If yes, size & power)
Foad and beverage vendors: yes
If yes, approxima#e number ore, ~ :..___
(Health Department approval required) yes
no "~
no
na
U:lwwdatalCreative Ciry Collabrative CommitteeLSpeeial Event Permit App3ication Finat 9.b.07.doe
Other vendors:
(Indicate type}
yes
no ~
t/
Tents: yes no
If yes, How marry Wlrat size or size required
(If yes, tent permits and fire inspections may be needed)
Will the event include amusement rides: yes no ~
(If yes, type and location and copy of liability irasrcrance required, also requires state
license and inspection.)
Will the event be gated:
(S{ro><v on-site rraap)
yes,
Will there be a charge fox the event: yes
(If yes, indicate ticket prices) ~~e~
Will there be fireworks or other pyrotechnics: yes
no
no
~. c?~ ~GZLcs-c.e-$.Q~~c1~3s.~
no `~
(If yes, contact Fire Marshal to obtain mid complete permit application)
t~
Will there be cooking with compressed gas: yes no
(If yes, contact Fire Harshal for inspections)
Will you be providing port-a-lets for the event: yes no
(If yes, locate on site map. If no, indicate liow you will Handle restraom needs)
Is xeserved parking requested: yes no ~
(If yes, indicate locations and purpose for use)
Event Permit
Attachments:
Revenue/Expense Budget
Revenue/Expense Recap Last Years Event
Site Plan
Letter Requesting Noise Ordinance Waiver
Letter Requesting Waiver Consumption Alcohol Beverages
Proof ofNon-Profit Status
.General Liability Insurance Certificate
.Alcohol Beverage Liability Certificate
.Proof of Rental Agreement or Authorization Letter from Private Property
Owner
Hold Harmless Agreement
Submittal Date Requirements:
• Minor Event 45 days prior to event
• Intermediate Event 90 days prior to event
• Major Event 12~ days prior to event
• Neighborhood Block Party 30 days prior to event
U:lvsnvdatalSpeciai Event RequestlSpecia! Event Permit Application FIAiAi. 9.6.a7.doc
Evefit ContractorlCoord' ator
Please print: -.4~ - .
7 ~I~
~ ate
Please enclose the appropriate non-refundable application fee payable to the City of
Delray Beach, 100 N.W. 1St Avenue, Delray Beach, Florida 33444. Required with permit
application.
For Staff Use Only
Date Received Application fee received $
U:IwwdatalCreative City Coilabrative CommittcelSpeciai Evert i'ermit Application Final 9.6.07.doc
Beldowicz, Donna
From: Range], Delores
Sent: Tuesday, July 07, 2009 1:14 PM
To: 8eidowicz, Donna
Subject: 1=W: Roofs basketball budget
From: albertamccarthy@aol.com [mai[to:albertamccarthy@aol.com]
Sent. Tuesday, 7uly 07, 2009 2;45 AM
To: #2angel, Delores
Subject: Roots basketball budget
ROOTS YOUTH BASKETBALL ACTUAL BUDGET 2008-
EXPENSES
COORDINATOR $2,000
OFFICIALS $2,100
SCORERSITIMERS 750
TROPHIES 450
WATER 60
WRIST BANDS 50
INSURANCE 400
IN KIND POMPEY PARK STAFF
5,810 (3,810)
YNCOME
TEAMS $5,400
TICKETS 4,570
CONCESSION ~0- IN KIND TO ROCKS FOR FUND RAISER
$ 9,970
Stay cool with this summer's hottest movies. Maviefone brin s ou trailers celebrities movie showtimes and tickets]
1
Basketball Budget for Roots Youth
Proposed budget for 2009
Revenues
Team Fees
Tickets
Concessions
(IN KIND TO DELRAY ROCKS FOR FUND RAISER}
$6,600
4,000
_~io,ooa
-x-
$10,000
EXPENSES
Coordinator $2,000
Officials $2,300
Scorers/Timers 800
Trophies 500
Water 100
Insurance d00
Wrist bands 100
Advertising 250
Registration packs 85
City permit 100
Miscellaneous 125
~6,~60.00
(IN KIND POMPEY PARK STAFF)
(estimate, tie breakers create additional games}
(estimate, tie breakers create additional games)
Net profit $ 2,915
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Robert A. Barcinski, Assistant City Manager
THROUGH: David T. Harden, City Manager
DATE: July 8, 2009
SUBJECT: AGENDA ITEM SP.2 -SPECIAL/WORKSHOP MEETING OF JULY 14, 2009
SPECIAL EVENT REQUEST/32ND ANNUAL ROOTS CULTURAL FESTIVAL/ADULT
BASKETBALL TOURNAMENT
ITEM BEFORE COMMISSION
City Commission is requested to approve a special event request received from Roots Cultural Festival
Inc. for the Adult Basketball Tournament proposed to be held from 6:00 p.m. - 10:00 p.m. on July 31,
2009, 9:00 a.m. - 9:00 p.m. on August 1, 2009 and 10:00 a.m. - 3:00 p.m. on August 2,
2009. Commission is also requested to approve staff support for security, to provide 4' x 4' event
signage and to waive any rental fees for the use of Pompey Park and the Community Center.
BACKGROUND
Attached is the special event permit and budget submitted by Alberta McCarthy on behalf of Roots
Cultural Festival Inc. for the Adult Tournament. A site plan is not necessary since the tournament will
take place in the Pompey Park Gym and the Community Center Gym. In past years Commission has
waived rental fees.
The estimated overtime cost for the Adult Tournament is $4,825. Based on event policies and
procedures, the charge for overtime costs for the Adult Tournament will be $2,487 and the signage is
$250 for a total of $2,737. Gymnasium rental fees for the first three hours would be $250 plus 50% of
ticket receipts at each site. Also, other facility rental fees at Pompey Park would be $30 for the kitchen
and $60 for the auditorium for the first three hours. Additional fees would apply for subsequent hours.
Staff recommends waiving all facility rental fees for the event.
RECOMMENDATION
Staff recommends approval of the special event permit for the Roots Cultural Festival Adult Basketball
Tournament, to waive rental fees for the use of Pompey Park and the Community Center, to approve
staff support for security and to provide standard event signage to be installed no earlier than ten (10)
days prior to the tournament; contingent upon the receipt of an executed Hold Harmless Agreement and
Certificate of Liability Insurance at least one week prior to the tournament.
~~~~~t~s~~~ DELRAYB~ACH
'= City of Delray Beach
=' Special Event Permit ~ ~° ~ ~ ~~ -ui.,~~~acity
~~ Application '~~ ~~R~v cis Eve
a
. ~.
'~`~~°~ PLEASE TYPE OR PRINT 3993
zoo3
EventNamelTitle: /Ca~ /~~~4a-P~i ~~ ~~c ,f a~-~.v~o~-'
Event Date{s}: 3 Times: ~p - SOP
~~ / 2 app ~ A - ~P'
.~~_.T
~~a~~i ~Da~ /b~ .~
Event SponsorlProducer: ~~-~--~--~~ /1'l e ~ ~ ~ ~~ ,.
Event ContaetlCoordinator:
' ~ `" A
Name: C ~J~
Address: ~ _ 3 ~
Telephone Numbex: Cellular Number: -
E-mail Address: nLl l~'fc` YLtr'_ +C ~i~`i ei~., ~ ~~s~.. P~'L
Event DeseriptionlPurpose: ~~l a ~~cc.tivt --~ Ce.
Z~ ~ ~ ~ .d
4
Brief History of Event (If applicable): 'T~-Q- ~ ~~-~~~'~ •
Planned Activities (Outline of activitieslnumber of activities, i,e. entertainment,
children's rides, games, other programs}: ~'1~~ "~--~e~-
Numbex of Individuals Served Previous Year (if applicable): 15~~ ~4~u.-e~~~-~j.c~
Describe the targeted population and expected attendance: ~~ ~ 1~y~2.~
~ ~
1
Describe haw the program or pxaject addresses comzxl;unity needs: `rim ~.,o
. n _ . • n • e
Describe your Marketing/Promotions Program {How will you market/promote, i.e. TV,
radio, posters, flyexs, web sites, other}: ,~ ,/~~, , y~
a~~~ ~-~ ~~~ c~ ,~ ~
Sponsor Category (please check} City ^ Non-Profit/Charitable Private t~
Co-Sponsor -Non-PrafitlPrivate a
(If1Von ~rofrt attach proof of SOIc(3), c(4), c(6), C(10), or c(19) or (d)
Event Lacatio {De cri~be~ ~ar,/e~a~boJu/ndaries of event/loc tion}: +~
L y~'~'GC..UVW d ~C~~
Site plan attached: yes no ~ ~`~ Gv~.d
(Site plan required for entire event site. Include locations of tents, stage, portalets,
dumpsters, portable lighting, and barxieade location if applicable.)
Rental of Old Schaal Square: yes no C~
(lf yes, attach pxaaf of approval)
~,:
Private Property Use; yes no
(If yes, attach letter giving authorization from property owner)
Event budget attached: yes ~ no
(Requiredfor all events)
Previous year RevenuelExpense summary attached: yes
(Required for all events)
Do you have cash sponsors for the event: yes
(Indicated on budget}
Do you have inkind sponsors for the event: yes /
(Indicated on budget)
na
no ~
no
U:lwwdatalCreative City Collabrative Committeelspecial Evsnt Permit Application Final 9.6.07.doc
Serving or selling alcoholic beverages: yes no ~
(If yes, copy of license attd alcohol liability insurance required two (2) weeksprior to
event)
Event certificate of insurance attached: yes no
(Required trvo (2) weeks prior to event naming the City as additional i~tsured, also
required far vendors)
Playing of amplifred music: yes ~ na,
(Waiver required) ~~~f.e
Will there be entertainment: yes ~ no.
(If yes, attached list of Performers and/or DJ's}
If yes, sponsor agrees all entertainment will be family oriented
and contain no obscenities: yes / no
.~
Requesting Police assistance: yes
(traffic control/security}
Will supplement with private security:
(1f yes, need plan attached)
no
yes
Requesting Emergency Medical assistance: yes,
Requesting barricade assistance: yes
(If no, how are you handling?)
no +~
no
no ~
Requesting trash removal/clean up assistance: yes no
(Will be billed to sponsor}
Requesting trash boxes/containers and liners: yes no ~
Requesting stage use: yes ~+~1~ no ~
(lf yes, check type)
Large stage (].4' x 36') ^ Smail stage (l.6' x 21'} ^ Half sm/all stage (8' x 21') ^
Requesting signage: yes no
Type: 4'x4'Event sign ~ Parking Signs
Banner hanging fndicate dates required
(Waiver required if more tlta;<t o;~te (I) week prior to event)
Requesting City Portable Generator: yes ~ no
(If yes, size & power}
Food and beverage vendors; yes ~ no ~
Tf yes, approximate number b~
(Health Department approval required} yes no
U:lwwdatalCreative City Cotiabrative CommitteelSpecial Event Permit Application Final 9.6.07.doc
Other vendors:
(Indicate type)
yes no ~~~
Tents: yes no
If yes, How many What size or size required
(If yes, tent permits and fire inspections may be ~teeded)
Will the event include amusement rides: yes no
(If yes, type and location and copy of liability insurance required, alsa requires state
license and inspection.)
tf
Will the event be gated: yes no
(Shaw an site map)
Will there be a charge for the event: yes ~ no
(If yes, itedr'cate ticlretprices) ~5.e~ ~~ j ~ ~~ 2 p~,J
Will there be fireworks or other pyrotechnics: yes no ~
(If yes, contact Fire Marshal to obtain and complete permit application)
Will there be cooking with compressed gas; yes no l/
(If yes, contact Fire Marshal for inspections)
t~
Will you be providing po~•t~a-lets for the event: yes no
(If yes, locate onsite neap. If na, indicate liaw you will handle restroom needs)
Is reserved parking requested; yes no
(If yes, indicate locations and purpose for use)
Event Permit
Attachments:
RevenuelExpense Budget
Revenue/Expense Recap Last Years Event
Site Plan
Letter Requesting Noise Ordinance Waiver
Letter Requesting Waiver Consumption Alcohol Beverages
Proof ofNon-Profit Status
General Liability Insurance Certificate
Alcohol Beverage Liability Certificate
TProof of Rental Agreement or Authorization Letter from Private Property
Owner
Hold Harmless Agreement
Submittal Date Requirements:
• Minor Event d5 days prior to event
• Intermediate Event 90 days prior to event
• Major Event 120 days prior to event
• Neighborhood Block Party 30 days prior to event
l]:hvwdatalSpeeial Event Requestlspecial Event Pemtit Application FIISAL 9.6A7.doc
-2 r ~
E ent ContractorlCoor ><nator Date
Please print: 't~C~~
Please enclose the appropriate non_refundable application fee payable to the City of
Delray Beach, 100 N,W. 1$t Avenue, Delray Beach, Florida 33444. Required with permit
application.
For Stnff Use Only
Date Received Application fee received $
U:IvrwdatalCreative City Collabrative CommitteelSpecial Event Permit Application Final 9.C.07.doc
ROOTS ANNUAL }3ASRETBALL ADULT
Proposed budget for 2009
Expenses
Coordinator $3,000 (IN HIND POMPEY PARK STAFF}
Officials $2,500 (estimate, tie breakers create additional games)
Scorers/Timers 900 (estimate, tie breakers create additional games)
Ist place 3,000
2"~ place 1.,000
3~d place 400
Disc Jockey 700
Wrist bands 100
Water 120
Advertising 350
Security 2,000
Tnsuraz~ce 400
Total $14,470 ($1.1.,470)
Income
Tcanas X8,000
Tickets 4 000
Total $12,000
ROOTS ANNUAL BASKETBALL ADULT
Actual income for 2008
TEAMS $8,000
TICKETS ._ $4,647
TOTAL $12,127
EXPENSES
COORDIl~i'ATOR $3,000 zN KIND POMPEY PARK STAFF
OFFxCZALS $2,500
SCORERS/TINIERS &50
lsr PLACE 3,000
2N" 1'LA.CE 1,000
3~ PLACE 40D
DJ 700
WRIST BANDS 100
'VV.ATER 120
ADVERTISE 3S0
SECURITY 2 500
$14,520 ($1I,520)
MEMORANDUM
TO: Mayor and City Commissioners
FROM: David T. Harden, City Manager
DATE: July 9, 2009
SUBJECT: AGENDA ITEM WS.1 - SPECIAL/WORKSHOP MEETING OF JULY 14, 2009
OPTIONS FOR USE OF THE OLD SCHOOL SQUARE GARAGE RETAIL SPACE
ITEM BEFORE COMMISSION
The item before the City Commission is a discussion of options for use of the Old School Square
Garage retail space.
BACKGROUND
At the May workshop meeting, the City Commission discussed potential uses of the Old School Garage
retail space; Commission consensus was to bring the item back to a future workshop. CRA Director
Diane Colonna, Economic Development Director Francisco Perez-Azua, Green Market Manager Lori
Nolan and former DDA board member Rich McGloin, who discussed the retail space with the
Commission at the May Worskop, have explored the options for use of the retail space and their pros
and cons in relation to the vision for the Pineapple Grove district. Rich McGloin will make a
presentation at the July 14 workshop meeting; a copy of the outline of his presentation is attached.
In addition, the City received a letter of intent from Tom Kinsloe for a proposed lease purchase of the
Garage retail space in the amount of $1.44 million. A copy of the letter of intent and proposal from Mr.
Kinsloe are attached for your review.
Staff needs direction from the Commission regarding whether to proceed with the proposed lease-
purchase, or to develop interim uses for the next several years in hopes that the commercial real estate
market will recover and we can obtain a better purchase price for the property. Based on earlier
appraisals, we had hoped to obtain at least $2,000,000.
RECOMMENDATION
Commission discretion.
Old School Square Parking Garage
Commercial Space
Temporary Use Study
July 14, 2009
In April of this year City Manager David Harden asked the CRA to look into the possibility of utilizing
the commercial space in the Old School Square garage as a farmer's market or arts venue. This request
was in response to concerns expressed by the City Commission regarding the effect that the sluggish
commercial real estate market was having on the prospects for selling the space. CRA Executive
Director Diane Colonna, Economic Development Director Francisco Perez-Azua, Green Market
Manager Lori Nolan and former DDA board member Rich McGloin went before the City Commission
at the May workshop to hear their thoughts on the desired uses for this space. Based on that discussion
the team explored the options for use and their pros and cons in relation to the vision for the Pineapple
Grove district. The following is an outline of the presentation that Rich McGloin will make at the
workshop meeting.
Define the project goal and commitments
WHY - To remove a dead pedestrian zone in Pineapple Grove Arts District
HOW LONG -Suggest 5 yr lease, may put property on the sales market the next day,
sale being subject to lease
HOW MUCH -Approximately $250,000 for basic build out, may recover most upon sale
Two approaches
What uses accomplish the goal (the WHY) of this prof ect?
What is the VISION for this district?
What uses will work:
General Retail (as Zoned)
Rental needs to be at Gross Market rates, city can't be
seen as competing with privately owned commercial space
Pros Building was designed for this type of use
Would generate pedestrian activity
Con Hard to fill with tenants, market weak
Every building on Pineapple Grove Way has vacant space from 500 to 8,000 sq.ft.
Specialty Produce Market - 5,000 sf
Produce, Deli, Fish Market, Meat Market, Bakery, with no kitchen facilities.
Private operator or City/CRA managed co-op
Pros Private operators interested
Some market promotions attract large response, 1000+
Cons Last stop destination, questionable impact on local merchants
Requires high dumpster activity
Requires repackaging or recycle compactor
Active delivery access
Similar to arestaurant--challenge to keep rear activity clean
Several high profile failures, Atlantic Plaza, Lake Worth & Palm Beach
Artist Co-Op
Art gallery, working artist studios, visual and performing arts
Exhibition and performance spaces available to other community
organizations
Educational and experiential workshops
Multicultural and multi-generational programming
Provide a center for networking of artists from across Palm Beach County
Pros Minimum build out
Cultural destination and attraction for all of Palm Beach County
Link Old School Square, Atlantic Avenue, and Pineapple Grove by encouraging
pedestrian traffic
Complement other City cultural activities (First Night, Delray Affair, Art & Jazz on the
Ave., etc.)
Cons 10,000 if all activities included, 5,000 for studios and display
Low or no rental revenue
Requires a 5-year lease to justify build out
What is the VISION for this District
Over the past decade citizens have come together to create the VISION for the future progress
of Delray Beach in many ways:
• "Visions" workshops
• Pineapple Grove Neighborhood Plan Charrettes
• Cluster Study surveys
• Downtown Master Plan meetings
• Cultural Plan interviews
• Other planning exercises
The following recommendations and comments resulted from those activities:
Marketek report, "Market Analysis and Development Recommendations for Downtown Delray
Beach" March 1996
Emphasizes the importance of the arts as an element of economic growth
The Neighborhood Plan for Pineapple Grove, Adopted by City Commission June 98
Section 13 -Cultural Arts, Overview.
"Art galleries, museums, and performing arts centers demonstrate worldwide the
draw of the visual and performing arts. Residents of, and visitors to, the community
patronize these institutions in increasingly large numbers."
Pineapple Grove Artwalk Campaign Adopted by City Commission November 1998
"The cultural arts play a prominent role for Pineapple Grove in Delray Beach....promoting an
awareness of our cultural diversity and the value of art education."
H. Blount Hunter Research "Cluster Analysis" commissioned by the DDA July 2005
"Downtown has emerged as the center of the region's arts community."
" The arts can become a strong merchandising opportunity for Downtown as
well as a traffic generator."
Visions Workshop Report
"Delray Beach prides itself on the cultural resources that contribute to
the City's ambiance"
Downtown Master Plan adopted by CityCommission March 2002
Pineapple Grave - "Pineapple Crrove is a unique, arts-oriented section of the downtown.....
The objectives and recommendations contained within the Pineapple Grove Neighborhood Plan
are hereby incorporated into this owntown elray each Master Plan."
Coletta report (Cultural Plan) -funded and adopted by City Commission February 2006
"There are ways for cities to encourage culture beyond public subsidies and grants. There are
tax benefits for artists' studios, zoning for arts districts, experimentation and innovation districts,
sales tax waivers on local art, public space for artists and more. Artists are often looking for help
in finding a place where the creative process can take place...."
Cannery Row Agreement -City agreement with developer May, 2007
Option to purchase SE corner townhouse unit for $530,000 to create an artist studio/gallery
space for the enhancement of the Pineapple Grove Arts District
Conclusion and Recommendations:
During this research many people came forward and expressed interest in the property--this was due to
media coverage, not advertising. This shows that whichever use is selected there are opportunities to
lease to a tenant within that use. The following is recommended:
• City Commission should select use of space that addresses the goal (WHY) and
the VISION
• City or CRA to advertise an RFP to find the best tenant or tenants
• City to lease property with terms that insure success for both the tenant and the
City
• City should list property FOR SALE as soon as leased, with sale subject to lease
• City should be actively involved in build out to protect their asset for future sale
Letter o~ Intent
Lease Purchase of the QSS Parking Garage Retail Condo
June 11, 2009
Buyer: Tom Kinsloe, Principal
Corporation to be formed
Se11er: City of Delray Beach
Property: Condo in Old School Square Parking Garage
use: +/- 4,000 SF Restaurant with service for lunch and dinner
+/- 6,000 SF Market also serving prepared meals
Purchase Price: $1,440,000.00
Deposit: The cost of the build out will serve as the deposit
Buyer will provide seller a construction bond in the amount of $500,000
Closing Date: On or before the end of the 48 months term
Financing: Ta be provided by others
Lease
Commencement: September 1, 2009 or before if building permits are approved
Lease Terms: Lease period not to exceed 48 months
Closing on the purchase and. sale to be on or before the end of the kease period
Base rent to be at $14.00 per square foot + CAM
Full amount of base rent payments to be credited at closing
Tenant
Improvements: City Engineering Dept to approve placement of vents.
Tenant will be responsible for all other build out costs approximately $$5.00 psf.
Rent Abatement: 6 months of free base rent and CAM to provide ample time for build-aut
Tenant to carry and pay for liability insurance
Parking: 5 parking spaces on first floor to be leased under revocable agreement with City.
To the Mayor and commissioners, On behalf of my two partners and myself, i would like to thank you
far the opportunity to present our ideas and vision. We hope it meets with your satis#action and
approval. Furthermore, we welcome your input in helping to create a successful and exciting addition to
Delray Beach.
Our Vision
It is our intent to help advance the destination of the Pineapple Grave Arts District. An inviting starting
point far visitors as well as a neighborhood gathering place. This is the locotion where we have the
opportunity to give a great first impression, the point by which Pineapple Grave will be begin to show
off its community Spirit and all it has to offer. A creative, artistic, cultural and social center awaits the
visitor and we would like to be the first friendly face to direct people to discover all the treasures of
Pineapple Grove. The following paragraphs are offered to provide you an overview of our ideas.
Cooperation between Public and PrNate Sectors
• Create business entities that fulfil need s within the community, meet the goals of city planners,
and further the economic development of the immediate area
• Develop strategies which utilize all resources available to effectively maximize potential of the
building structure, its location, and the future businesses to promote success
• Evaluate and encourage the use of alternatn-e energy (solar}, water conservation (rainwater and
grey water}, sustainable building products when practical, and advanced recycling methods
• Pursue available grants and financial incentives to offset costs
r Assist in promoting civic duty and social responsibility
• Embrace a long term plan with enough flexibility to achieve awin/win situation
Planned and Potential Uses
• Venue far five music ,film screening, various art exhibits and event gatherings
• Commercial Kitchen to be utilized for multiple purposes (restaurant, Culinary Arts education,
pastry shop, catering service, greenmarket food preparation}
• Market Deli /Sandwich snap
Civic Minded
• Green Market collaboration and support
• Various charitable ar~d benefit uses- IioTday meals, fundraising events
+ Socially responsible energy and conservation programs
• Community focus -Neighborhood friendly
Making a Positive Impact from Day Dne
• Immediate work would begin on planning the use of the now vacant space
• Increased use of the parking garage as the adjacent parking lot eliminated
• Would bean enticement for a future hotel and other business expansion to the north
• Musical Art and Culinary Art aspect will be added to the Pineapple- Grove Arts District
• Year-round and daytime activity will increase in the area
• The project will help to jump-start the local economy
Thank you for your consideration,
Thomas Kinsloe
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Proposal Summary:
MuSfC Venue
Old School Parking Garage
Delray Beach, FL
Mr. Thomas Kinsloe
Z55 NE 3~d Avenue #204
Delray Beach, i=L 33444
954-579--1996
tkinsloeC~aol.com
June 2009
I. SUMMARY
This proposal is intended to provide a brief description of the business model by which Mr.
Thomas Kinsloe of Delray Beach, Florida seeks to establish at the Old School Parking Garage in
Delray Beach, Florida. It addresses the type of business enterprise, preliminary feasibility
observations, obstacles to overcame, the key individuals participating in the venture, the
preliminary timeline for development, benefits to the building owner, contractual and financial
considerations to be addressed and negotiated by both parties to this venture.
A. The Venture
Simply stated, it is Mr. Kinsloe's goal to create a new "landmark" music entertainment
establishment in downtown Delray Beach. He is seeking a space that replicates the intimate
look and feel of many of the older Chicago, Memphis, Austin, and New Orleans music clubs; a
gathering place for aficionados of jazz, blues, and other genre, off. eying five performances by
local musicians as well and regional and national artists. The venue will also incorporate food
and beverage service. The interior build-out would be designed to create a music venue unlike
any others currently in Delray Beach. Special attention to sound engineering and stage lighting
will be made to provide a high quality and desirable entertainment experience for patrons and
performing musicians alike.
The Old School Parking Garage property is a very viable candidate far this venue. Mr. Kinsloe
believes the proposed build-out will maintain the character of the building while addingto the
structures overall purpose and economic viability. The music and ambiance should be hard to
resist and set a new, city-desired standard in and around the Pineapple Grove district and city
of Delray Beach. Mr. Kinsloe possesses the desire, motivation, skills, and quali~catians to make
this proposal a reality.
Having preliminarily examined the characteristics of the exterior and interior of the existing
spaces, Mr. Kinsloe believes the building and surrounding locale offer several opportunities for
the venture, simultaneously enhancing the property's overall use and profitability:
• High ceilings and large unobstructed space.
• The `just ofP Atlantic Ave. location offering an inviting option for which a customer can
escape the hustle and bustle of the busy avenue.
• The cozy, tree-lined environment of the surrounding buildings and streetscape.
• The mix of business establishments in this vicinity including various eateries that offers
sidewalk service.
• And the present lack ofhigh-profile, live, musical entertainment on a regular basis.
• The Pineapple Grave Arts District as an Art and Cultural destination
2
B. The 1~easibility Potential
For nearly two decades the City of Delray Beach has steadily worked on a revitalization of its
downtown district, focusing on the Atlantic Avenue corridor, preserving heritage and history,
simultaneously attempting to promote a resurgence of economic vitality. The Treasure Coast
Regional Planning Council conducted a study of that corridor in which it determined:
• The Old Schaal Parking Garage building is appropriate for development as an entertainment
and cultural hub in the Pineapple Grove Arts district.
• An intimate indoor music venue in the Pineapple Grove /Atlantic Avenue corridor would
enhance the business mix, and draw visitors from surrounding communities from the north
and south, as well as I-95 traffic.
• The creation of a venue space for multipurpose uses, to included various art and cultural
exhibits, film screenings, and musical performances by showcasing local artists
• Continued development of art and cultural activities in Pineapple Grove will attract retirees,
young singles and professionals, synonymous with disposable income.
Other factors appealing to the venture include:
• Current and anticipated development of multiple residential condominiums and apartments
within walking distance from the proposed venue, a source of potential customers with
disposable income.
• Current and anticipated development of hotel, tourism, and other hospitality industry
businesses within the local area.
• Community music events such as "Art & Jazz on the Avenue", City sponsored cultural and
art exhibits, and various seasonal festivals and events make Delray Beach the place to be.
• Based an his personal exposure to music industry conferences and events, numerous Jazz
and R&B clubs, and consultant feedback, Mr. Kinsloe identifies the bracket 30+ years of age
as most representative of clientele for this type of club. The most recently available census
data, by age bracket, for Delray Beach X2000) indicated that age bracket is represented by
approximately 7596 of the city population.
C. Obstacles to Orrercome
Mr. Kinsloe has approached this project with financial and marketing objectivity and has
identified three obstacles that must be overcome. in order to secure approval of the City of
Delray Beach to open the establishment. However, for each of the three obstacles, Mr. Kinsloe
sought solutions:
1. Zoning & Licensing -Services have been secured from Michael Weiner, Esq., a very
reputable, local attorney who has a longstanding history of success in addressing zoning
ordinances in ttie City.
2. parking -Discussions with counsel have led Mr. Kinsloe to anticipate successfully
negotiating with the City to meet parking requirements.
3. Perception -Music is a form of Art and is appropriate for this location. A music venue of
this type wiA be an asset to the community provided that cooperation and support of all
parties is fulty committed.
Briefly, Mr. Kinsloe anticipates being able to work with the City of Delray and structuring
agreements that would be equally favorable to the all parties to overcoming these matters.
3
D. Key Participants
A team of professionals has been identified to address the formation of the venture from
leasehold improvements up to and including the opening and ongoing operation of the
club. These individuals include:
Thomas Kinsloe (groiect founder] --Typically characterized as just a regular, "hands-on" type of
guy, Mr. Kinsloe was born and raised in metropolitan Chicago. The middle child of seven, his
father was a construction worker. His mother was a full time housewife whose job knew no
hours. They taught him that being honest and hard working would result in success. After
graduating from high school Mr. Kinsloe went onto achieve the following:
• Began in construction, rehabbing many older homes on the city's south side.
• Accepted into the Pipel7tters' Union Apprenticeship Program in Chicago at the age of 20.
After 4 years of training, he worked his way up from a journeyman to foreman,
superintendent and eventually became a project manager.
• At age 34 he founded an HVAC mechanical contracting business. Within 3 years he
purchased an 1]„000 sq. ft facility to support the growing client roster and 50
employees.
• Simultaneously operated as the General Contractor for several single family homes.
• In July 2002 moved to Deerfield Beach, Florida and subsequently earned and continues
to hold Florida licenses for Genera[ Contracting, Plumbing Contracting, and Real Estate
Sales Associate.
• S#arted and currently owns a general contracting business, SFKBD, Inc. (South Florida
Kitchen & Bath Designs) in Deerfield l3each, FL, specializing in kitchen and bathroom
renovations.
• Most recently has acquired a new residence in Pineapple Grove Village and desires to
live and work in Delray Beach as well as contribute to the community.
in addition to his construction background, Mr. Kinsloe has bought, renovated and later sold
many homes and small commercial buildings. His real estate ownership experiences makes him
knowledgeable of the highest and best use of space and a finm understanding of the needs and
concerns of the property owners. He also possesses a natural ability to see things, not just as
they are, but, for what they can potentially and prof`~tably realize.
Now, at age 47, these experiences have given Mr. Kinsloe the opportunity to reflect on where
he wants to go in life; seeking an activity #or which he is not only passionate, but also enjoys. He
is now in the position of having the time and resources to pursue that dream and make it a
reality.
a
Additional team members
Michael Weiner (Attorneyl- Specializing in zoning and planning, including extensive work with
the City of Delray Beach Redevelopment Agency, Mr. Wiener is founder of the firm, Weiner,
Aronson & Mankoff, P.A. (http://zonelaw.cam) and has been advising Mr. Kinsloe over the past
year.
Jack Crissv. CPA (Accountant) - a partner in the accounting firm, William A. Webb & Associates
(www.webbcRa.com) located in Pompano Beach. Mr. Crissy is also a Certified Valuation Analyst
whose client portfolio includes restaurants, general contractors, manufacturing, hotels, estates
and trusts. Mr. Kinsloe has been a client of the accounting firm for the past 7 years.
Sheila Jones [Bankine] - Ms. Janes is the Senior Vice- President for Business Banking for
SunTrust Bank far the entire State of Florida (www.suntrust.com) with her office located in
Boca Raton, FL. Ms. Jones is a long term resident of Delray Beach. Mr. Kinsloe has been a
business customer of SunTrust for the past 7 years. SunTrust Bank has a Sports and
Entertainment Specialty Group, which provides financial guidance to music artists and industry
clients.
Should the owners agree to move forward with the proposal, Mr. Kinsloe wil! retain the services
of additional professionals to address the issues of structural engineering and architectural
SeNICeS.
Regarding the specific needs associated with startup and operation of this type of venue, Mr.
Kinsloe has identified and strongly considered the consulting services of:
• Matthew Solon -Experience of 13 years in the restaurant industry including as general
manager of Front-of--House operations at Leif Hope's Restaurant in East Hamptons, NY.
Duties included hiring staff, booking entertainment, beverage ordering and inventory.
Additional industry experience at Webster Hali in New York City
(http://www.websterhall.com)
• Mark Pacaro -Owner for 18 years of Groucho's Bar & Grill (www.erouchosbarand~rill.co_ m)
a Chicago neighborhood establishment #eaturing live music.
• Pete Kauchis -Owner of VisuCom, Inc. (www.visucamsi~ns.com), a provider of marketing,
design, graphics and signage.
• Robert Kinsloe - Dwner of R. James Kinsloe, Inc., Master Home Builders
(www. otalarealestate.cam}. Mr. Robert Kinsloe has extensive background and experience
in real estate, real estate development, appraisal, valuation, financing and construction.
5
E. Project Timeline
Based on Mr. Kinsfoe's experience, his observations of the space and feedback received from
his t~
eam members and other consultants, the following is the proposed timeline for the proj
-
- -a T"- --- n - - _. ~~ - u . i - i -._ - _---- f--
- - --
June, 2009 Discussions with local government agencies regarding zoning and use.
Apply for zoning, use changes and licensing.
Preliminary design meetings and architectural drawings.
July 2009
Contact subcontractors and vendors and prepare construction schedule.
Complete mutually beneficial lease/ purchase agreement
Application for permits.
August 2004
Acquisition and procurement of materials and fixtures.
August - Build-out
October 2009 Pre-booking of entertainment for Fall 2009.
Interior finishes. Install fixtures.
Nov. 2009
Install sound, lighting and video systems.
Final inspections.
End of Nov. Ernpioyee hiring and training. Operatianswolk-through.
zoos
Pre-opening events and gatherings (promotional activities?
Dec 2009 Grand Opening
ect.
The timeline is projected and can be made flexible to address delays and opportunities as they
arise. However the December 2009 opening, in time for the economic benefits of seasonal
tourism, is highly desirable and should be attainable with teamwork.
F. Benefits to the City of Delray Beach
The following are recognized as realistic benefits to the City of Delray Beach:
• Complete the construction and build-out of the ground floor commercial space.
• Establish multiple businesses to fulfill the needs of the growing community.
• Increase the Pineapple Grove /Old School Square stature within the downtown
redevelopment area, chamber of commerce and surrounding community.
• Provide long-term economic benefits with potential far the entire property to become a
"centerpiece" for the Pineapple Grove Arts District and continuing the positive diversity of
Delray Beach
• Draw increased patrons to Pineapple Grove Arts District, thereby improving economic
viability of existing and future businesses.
• Increase use and awareness of the Old School Parking Facility as the most convenient place
for area visitors to park vehicles as they explore downtown Delray Beach.
• Expand the Art District to include Music related forms of Art
Ap of these benefits can be accomplished while maintaining the ,purpose and character of the
building.
s
G. Funding & Contractual Considerations
Mr. Kinsloe submits the following conditions for consideration of funding and contractual
obligations:
• Negotiate and secure a mutually beneficial lease /purchase agreement by the end of July
~~9.
• Agreement would need to be conditional on successful approval of changes in zoning use,
issuance of full liquor licenses, and issuance of occupancy permits and continuation oftha5e
perm its.
+ Cooperation with an expeditious construction schedule to allow #or opening at the
beginning of the tourism season.
• Mr. Kinsloe also seeks a long term common area use agreement and the ability to utilize
parking without additional expense. Additionally, Mr. Kinsloe recognizes the need for The
Old School Parking Garage to be utilized as an integral part of the city's Emergency Planning
and welcomes the ability to participate with the city as needed.
• The construction impact to the current parking garage operations will be minimal.
• Cooperation with local, county and state agencies, business development organizations,
chamber of commerce, and community leaders to assist in the creation of desirable
business models far the entire Old School Parking Garage commercial space and the
surrounding community.
• The effective utilization of ail resources available including any public grants and/or funding
incentives, business and professional networking, marketing assistance, workforce
development, and hospitality industry consulting services tv assist in creating, enhancing,
and promoting the new businesses.
• The use of the adjacent sidewalks, street parking, signage, and city services to allow for a
safe, appealing, and satisfying experience all patrons provided it allowable 6y the local
governing authorities.
Mr. Kinslae is open to discussion regarding these and any other conditions or concerns
addressed by the owner and looks forward to productive discussions between all persons
expressing a genuine interest in bringing a quality live music venue to downtown Delray Beach.
7
ThamaS KinSloe
I was born and raised in metropolitan Chicago. I am the middle child of seven from a
working class family. My parents taught me that being honest and hard working would
result in success. After graduating from high school !have achieved the following;
• Worked in construction, rehabbing many older homes on the city's south side.
• At age 20 I was accepted into the Pipefitters' Union Apprenticeship Program in Chicago.
After 4 years of training, I became a journeyman, then progress to foreman,
superintendent and an to project manager.
• At agg 34, started a MVAC Mechanical contracting business out of my garage. Within 3
years bought an 11,000 sq. ft facility to support the growing client roster and 50
employees.
• Simultaneously operated as the General Contractor for several single family homes.
+ In Jufy 2002 I moved to Deerfield Beach, Florida and earned the state General
Contractor and Plumbing Licenses. I also hold a Real Estate Sales Associate license.
• Started a remodeiing/general contracting business, specializing in kitchen and bathroom
renovations. Financially, the business has performed decently but the last 2 years have
been difficult due to the recession and especially in the construction industry.
In addition to my construction background, l have bought, renovated and later sold many
homes and small apartment buildings. I have an ability to see things not just as they are but for
what they could potentially become,
Bill [Hisashi) Suzuki
I was born as raised on the southern island of Kyushu, Japan. I lived there until I graduated High School.
After graduation, I went to Osaka, Japan to work and continue my education. In 1971 I was sent to the
United States for technical assistance in metallurgy, as well as the sale of wire rope. The wire rope is
used to manufacture fasteners, nuts and bolts to the automotive industry, as well as farm implements
and hardware. Since that time I have achieved the following:
• In 1972 I moved to Chicago, married my current wife and worked at Hi-Temp as a metallurgical
engineer. Hi-temp is a commercial heat treating and plating company, which employs
approximately 200 people.
• Promoted to plant manager in 1 of their 3 plants.
• In 19851 became a shareholder in purchasing Hi Tech and became Vice-President.
• In 1998 we sold the company to Gilbraltar Steel after the major shareholder became ill. At that
time we were well known in the industry.
• Stayed an far 3 years after the sale to assist with the transition
• After those 3 years I left the company to pursue other interests.
• In 20x4 I started a business of buying and ceiling homes. Due to the current economic
conditions I decided to concentrate on General Contracting.
• Since then I have been involved in many restaurant build ants and remodels.
I have the knowledge, resources and ability to take a new project from scratch and tom it into reality.
James Schwab
I was born and raised in Chicago. I am the oldest of 3 sons from a working class family. I attended
college for 1 year prior to being drafted by the Army. After my 3 years with the Army, I went to work for
Illinois Bell Telephone Company. I have since achieved the following:
• In 1971., Illinois Bell put me thru their management and building operations school. From that I
learned electrical, plumbing and construction.
• Promoted to upper level management and over saw building operations for 5 central sta#ions.
This included building employees and maintenance engineers.
• Put myse#f thru night school to earn a college education.
• In 1990, I started my own HVAC business and expanded into Genera! Contracting. Company
grew from 4 full time employees to 38 full time employees. At that time I retired from Illinois
Bell.
• Redefined my operations to reduce personnel and became selective on jobs we were awarded.
We used our own in house employees far quality control and time management.
• In 2003, due to a family situation, moved to Fort Myers, Florida. My wife and I opened an
Internet Cafe with 12 computer stations and a coffee and sweet service.
• In 2004 my family moved back to Chipga for my daughter to complete her High .School
education. I have continued my General Contracting business.
With my extensive background in the construction industry, I have the knowledge and ability to take
projects from start to finish.
MEMORANDUM
TO: Mayor and City Commissioners
FROM: JOSEPH M. SAFFORD, FINANCE DIRECTOR
THROUGH: CITY MANAGER
DATE: July 8, 2009
SUBJECT: AGENDA ITEM WS.2 -SPECIAL/WORKSHOP MEETING OF JULY 14, 2009
PRESENTATION ON THE BUDGET TASK FORCE FINAL REPORT
ITEM BEFORE COMMISSION
Presentation of the Budget Task Force Final Report dated June 30, 2009.
BACKGROUND
The Budget Task Force was created and appointed by the City Commission in January, 2008 to evaluate
the City of Delray Beach budget as well as actual revenue and expenditure activity and make
observations and recommendations to increase revenues, reduce expenses, or improve productivity and
efficiency.
The Budget Task Force is a seven (7) member citizen task force with two (2) alternate members, all
appointed by the City Commission. Alternate members participate in all discussions but may vote only
upon the absence of a regular committee member. This Task Force was supplemented with staff
support from Joseph Safford (Finance Director), Lisa Herrmann (Budget Administrator), and Becky
O'Connor (Treasurer) as well as other clerical support. The recording and preparation of meeting
minutes, agendas and additional staff support was provided by Karen Schell (Pension Administrator).
All agendas and minutes are posted on the City website. Meetings were initially bi-weekly meetings
lasting approximately two (2) hours each meeting. This schedule was changed in July, 2008 to monthly
meetings when the Budget Task Force original expiration date was changed from December, 2008 to
July 31, 2009.
The Budget Task Force reviewed the FY 2007-08 budget and the FY 2008-09 budget (Detail Budget)
document as well as calendar year actual payroll statistics and the actual revenue and expenditure
activity. The detail budget review consisted primarily of the departmental requests. In some cases the
City Manager reduced the departmental requests but the details of these cuts were not disclosed in detail
so the Budget Task Force analyzed the departmental requests as originally documented.
RECOMMENDATION
The report will provide observations and recommendations of the Budget Task Force for consideration
by the City Commission.
CITY OF DELRAY BEACH
BUDGET TASK FORCE REPORT
FINAL REPORT- JUNE 30, 2009
MISSION STATEMENT
The mission of the Budget Task Force is to provide a medianism for members, working
with the Director of Finance and staff personnel, to study the budget for Delrav Beach to
reconunend if there are ways, both in the short-term and long-term, to enhance revenues
or reduce expenses beyond what is currently being established.
Committee Members
Franklin Wheat- Chairman
Howard Ellingsworth- Vice Chairman
Peter Arts
Vincent Dole
Todd L'Herrou
Alexander Simon
Robert Moore
James Smith (Alternate)
Mark Denkler (Alternate)
Steve Janssen (July, 2008)
CITY OF DELRAY BEACH, FLORIDA
LIST OF PRINCIPAL OFFICIALS
CITY COMMISSION
June 30, 2009
~%Iavor ......................................................................................................«'oodie 1~'IcDuffie
ice-1~Iavor ..............................................................................................Garv ElioPoulos
Deputy Vice-Mavor .......................................................................Bernard Mackenson
Conunissioner ..............................................................................................Fred B. Fetzer
Conunissioner ..............................................................................................Adam Frankel
CITY STAFF
City ~Ianager ...........................................................................................David T. Harden
City Attornev ....................................................................................................Brian Shutt
Assistant Citv Manager .....................................................................Robert A. Barcinski
Assistant Citv Manager .........................................................................Douglas E. Smith
City Clerl: .......................................................................Chevelle D. Nubia
Comnuinity Improvement Director .............................................Lola C. BuNer
Environmental Services Director ...........................................Richard C. Hasko
Finance Director ...............................................................Joseph ICI. Safford
Fire Chief ...............................................................................David James
Human Resources Director ........................................................Bruce Koeser
Parla and Recreation Director ....................................................Linda Karch
Planning & Zoning Director .......................................................Paul Dorling
Police Chief .....................................................................Anthony Strianese
2
TABLE OF CONTENTS
Page No.
List of Principal Officials ....................................................................................2
Executive Summar
Executive Summary ............................................................................... 5
Observations/Recommendations ................................................................ 9
Projected Possible Impacts on Future Budgets .............................................. 12
Employee Suggestions ............................................................................ 12
Other Recommendations ........................................................................ 13
Budget Evaluation
Recommendations for Increased Revenues s
1. Special Event Cost Reimbursements ......................................................... 15
2. Employee Medical Plan Premium Contributions .......................................... 17
3. Hurricane Wilma- Insurance Recovery ...................................................... 19
4. Rental Properties with Tax Exemptions ..................................................... 21
5. Rental Properties with No Landlord Permit ................................................ 22
6. Personal Use of Take-Home City Vehicles ................................................... 23
Recommendations for Reduced Exgensess
Wages and Benefits
1. Overtime Pay ...................................................................................... 33
2. Car Allowance ..................................................................................... 41
3. Education Incentive Pay ........................................................................ 43
4. Fair Labor Standards Act (FLSA) Time .................................................... 47
5. Tuition Reimbursement Program ............................................................ 49
6. Away With Pay (Comp Time) .................................................................. 51
7. Mechanic Certification Bonus Pay ........................................................... 56
8. Sick Leave Payout at Termination ............................................................ 58
9. Vacation Leave Payout at Termination ...................................................... 60
10. Retiree Health Insurance Fund (VEBA) .................................................... 61
11. Police/Fire Pension Costs ....................................................................... 63
Other Professional Services
1. Other Professional Services (Detail Breakdown) ........................................... 67
2. Medical Professional Services .................................................................. 70
3. Shuttle Bus Service ................................................................................ 73
4. Vehicle Washing/Detailing ..................................................................... 76
5. Property/Casualty Broker Commissions ............................................ 77
Other Contractual Services
1. Other Contractual Services (Detail Breakdown) .......................................... 79
2. Hometown Connection Publication .......................................................... 83
3. Tennis Stadium Operations ................................................................... 84
4. Tennis Center Operations ..................................................................... 87
5. Credit/Debit Card Transaction Fees ......................................................... 89
3
Travel & Training
Competition Events ................................................................................... 91
Special Events
SPIRIT Program Costs ............................................................................... 94
Parks & Recreation
College Tour Program Costs ................................................................ 96
Other City Commission Assignment
Match Point Amendment No. 2 Review (ATP Champions Tour Tennis Event)...... 97
EXECUTIVE SUMMARY
The Budget Task Force is pleased to present their final Budget Task Force Report dated
June 30, 2009.
The Budget Task Force was created and appointed by the City Commission in January,
2008 to evaluate the City of Delray Beach budget as well as actual revenue and
expenditure activity and make observations and recommendations to increase revenues,
reduce expenses, or improve productivity and efficiency.
The Budget Task Force is a seven (7) member citizen task force with two (2) alternate
members, all appointed by the City Commission. Alternate members participate in all
discussions but may vote only upon the absence of a regular committee member. This
Task Force was supplemented with staff support from Joseph Safford (Finance Director),
Lisa Herrmann (Budget Administrator), and Becky O'Connor (Treasurer) as well as other
clerical support. The recording and preparation of meeting minutes, agendas and
additional staff support was provided by Karen Schell (Pension Administrator). All
agendas and minutes are posted on the City website. Meetings were initially bi-weekly
meetings lasting approximately two (2) hours each meeting. This schedule was changed
in July, 2008 to monthly meetings when the Budget Task Force original expiration date
was changed from December, 2008 to July 31, 2009.
The Budget Task Force reviewed the FY 2007-08 budget and the FY 2008-09 budget
(Detail Budget) document as well as calendar year actual payroll statistics and the actual
revenue and expenditure activity. The detail budget review consisted primarily of the
departmental requests. In some cases the City Manager reduced the departmental
requests but the details of these cuts were not disclosed in detail so the Budget Task
Force analyzed the departmental requests as originally documented.
The basic premise for the budget evaluation was "We want to increase revenues or
reduce expenditures without reducing essential services performed by the City". In
addition, another premise was that "We want to consider what a fair and reasonable
cost would be to our taxpayers". Costs beyond what are considered to be fair and
reasonable would be questioned, analyzed and the Budget Task Force would provide
observations and recommendations on these issues.
It is important to realize that nothing illegal was found in the analysis. This was a study
comparing written City policies to actual practice. What was found was that many
exceptions to written policies were supported by internal memos from the City Manager
and/or Department Heads. Some of these internal memos were issued many years ago.
The Budget Task Force would recommend that any future exceptions to general
written policies be documented and the policies be amended instead of relying on
outdated correspondence for the benefit of future reference.
It is also important to realize that some benefit changes have been made to management
employees as a reaction to benefits allowed to non-management positions through union
5
agreements. In order to avoid further compression between exempt and non-exempt
employees pay amounts, several independent benefit adjustments were made without a
written policy amendment. It should be noted that some of these benefits were approved
in lieu of requested salary or salary range adjustments. Some management employees
feel that if there is not sufficient distinct benefits in the management package to the point
that no union or non-union employee would ever want to be promoted to these positions.
It should also be pointed out that several decisions made by previous City Commissions
have locked the City into significant long-term costs that, in most cases, cannot be
reversed. The Budget Task Force would recommend that a full cost-benefit analysis
be made on all long-term commitments prior to making a final decision on the
proposals. Some examples of these prior decisions are as follows:
• The decision to execute a 25-year contract with Match Point dated October, 2005
for the ATP World Tour tennis tournament that will cost the City an estimated
$2.0 million per year since this agreement has CPI escalation clauses each year.
The total cost to Year 2030 is $39.7 million and this does not include the costs of
the City departments in overtime and other costs. This is only the cost of the
Match Point agreement. These costs have not been offset with any direct revenues
to the General Fund from the event, sponsorships, or naming rights as of this date
with the exception of a $SOOk contribution from the CRA in FY2008-09. The
annual net cost of this event represents approximately 2°Io of the entire General
Fund budget.
• The decision in March, 2004 to increase the service multiplier in the Police and
Fire pension plan from a 3.0°Io multiplier to a 3.5°Io per year of service multiplier
and the additional decision to have the City pay for the conversion of all past
service for active employees to the 3.5°Io. In concert with the performance of the
Police & Firefighter's Pension Plan, this resulted in a City cost of 37.03°Io of the
payroll of Police and Fire employees just to fund their pension plan benefits.
When added to other fringe benefits, the City is being required to fund over 60°Io
of payroll to fund Police & Fire fringe benefits on an annual basis. In addition, in
FY 2000, this Police/Fire pension plan had $-0- unfunded liabilities and now it
has a $41 million unfunded liability that must be paid over the next 30 years. By
comparison, the General Employees' Pension Plan has an unfunded liability of
only $1.2 million.
• The decision to provide the Police take-home car program to remain competitive
with the Palm Beach County Sheriff's program has cost the City millions of
dollars in vehicle costs, vehicle law enforcement equipment costs, the cost of
installing (in each vehicle) mobile digital terminals, communications, insurance
costs, maintenance and fuel costs and the impact of a required maintenance
program for these vehicles .in our Fleet Maintenance Division. In addition, this
significant increase in the number of fleet vehicles on the road impacts the City's
liability exposure and these vehicles must be replaced every 6-7 years.
The City of Delray Beach is facing some significant and challenging issues in their
current and future budgets from the following:
• Citizens, vendors and customers impacted by the general economy, unemployment
6
• State-imposed tax reform legislation
• Referendum allowing additional property tax exemptions and portability of Save
Our Homes and revenue caps
• Decreasing property market values as well as taxable values
• Mortgage foreclosures and depressed neighborhoods and commercial vacancies
• Residential and commercial slowdown in construction and real estate sales
• Reductions in State shared revenues (sales taxes, utility taxes, gasoline taxes, etc.)
• Escalating fuel costs
• Increasing costs for property insurance while number of insurance carriers are
decreasing in the State that provide this coverage
• Downgrading of municipal bond insurers and its impact on municipal interest rates
• Lack of credit availability for municipal borrowing
• Pressure from labor unions for enhanced benefits
• Losses in investment market values requiring additional City pension plan funding
• Increasing health insurance costs
• Federal spending and impact on interest rates and value of the dollar
Tax Reform Legislation
In order to comprehend the condition of the General Fund budget, it is important to recap
the tax reform legislation which consists of the 2007 tax reform legislation and the 2008
tax reform voter referendum (Amendment 1).
2007 Tax Reform Legislation
In 2007, the State Legislature approved House Bill 1B and Senate Bill 2B that required
local governments to limit their operating millage property tax rates for FY 2007-08 to
the same rates as were in place in FY 2006-07. These roll-back rates were then to be
adjusted downward by an additional 3°Io, 5°Io, 7°Io or 9°Io based on a formula that reviewed
the tax performance over the past 5 years. The City of Delray Beach was obligated to
reduce their FY 2006-07 operating millage tax rate by an additional 9°Io in order to
establish their FY 2007-08 rates. Our operating tax rate for FY 2006-07 was 6.86 and
therefore our rollback rate for FY 2007-08 was 6.7527. With the 9°Io reduction, our
operating millage tax rate was 6.1449. This resulted in a $4.6 million reduction in
revenues in FY 2007-08 after adding back new construction and allowing fora 95°Io
collection rate. The total millage tax rate (with debt service millage) went from 7.3000 in
FY 2006-07 to 6.5783 in FY 2007-08 or a reduction of 9.16°Io.
For future years (FY 2008-09 and beyond), a local government may not levy an operating
tax rate that exceeds the roll-back rate (that rate that would derive the same property tax
revenues as the prior year) increased by the annual increase in the Florida per capita
personal income index without a super majority vote of the City Commission. The City
of Delray Beach roll-back rate for FY 2008-09 adjusted by the 4.15°Io increase in the
Florida personal income index would be 6.9997. However, Senate Bill 1588 passed
earlier this year that required local governments to adjust the roll-back rate (as adjusted
by the Florida personal income index) for the impact of the 2008 referendum. Therefore,
the rate of 6.9997 after adjustment for Amendment 1 of the 2008 referendum would now
become 6.9094 (Operating millage of 6.4490 and debt service millage of .4604).
7
2008 Tax Reform Voter Referendum
The second year of tax reform was highlighted by the State putting a constitutional
question on the ballot for voters on January 29, 2008. This Amendment 1, as it is
referred to, consisted of the following:
• Save Our Homes exemptions become portable (up to $500,000) and can be moved
to another homestead within the State of Florida
• The first $25,000 of tangible personal property is exempt
• Homestead property owners will have an additional $25,000 homestead exemption
on property that exceeds $50,000 in taxable assessed value (does not apply to
school taxes)
• Annual increases to non-homestead properties (residential and commercial)
assessed values cannot exceed 10°Io provided there is no change in ownership
(does not apply to school taxes)
Conclusion
Following an in-depth analysis of several areas of the both revenue and expense budgets
as well as actual activity, the Budget Task Force would present this final report that
outlines observations and recommendations with estimated potential revenue
enhancements or cost reductions. The City Commission has met with the Budget Task
Force on two (2) different occasions with specific opinions and directions and therefore
we have also displayed the current status of each of these recommendations.
The members of the Budget Task Force recognize the benefits of analyzing, in detail, the
revenues and expenses of the City. The assignment of the Budget Task Force terminates
June, 2009. We would therefore recommend that a more permanent Financial Review
Committee be established to continue the efforts and achievements of the Budget Task
Force.
We would express our gratitude and recognition of the Finance Department staff and
compliment them for their dedication and extensive research efforts, to their
administrative staff for their time in the development of agendas and minutes of the
meetings and posting of these materials to the City website, and for their numerous
presentations to the Budget Task Force and the City Commission. We would also
express our gratitude to the City Manager and members of the City Commission (past and
present) for their cooperation and support of the Budget Task Force.
8
OB SERVATI ONS/RE C OMMENDATIONS
BEFORE REDUCING ESSENTIAL CITY SERVICES THE CITY COMMISSION
SHOULD CONSIDER THE FOLLOWING:
INCREASED REVENUES ESTIMATED
AMOUNT
Special Events Cost Reimbursements-
City ovcrtirnc costs for First Ni~~ht event should he paid 100 ~~ firom $12,000
eollcctcd revenues or reserves of First Ni<~ht or<~anization
Special Events Cost Reimbursements-
City departmental cost reimbursements from non-profit organizations $10,000
shoLdd bC 75~ie InStCad of (7~~~t
Employee Group Health Plan Premiums (HMO)
Employccs em-ollcd in the HMO health pla^ should be charged a premium
per pa}~ period in addition to their dependent family premiums. Actual was $336,969
`~7? 1.56 per year for 467 cmployccs.
Retiree Medical Premiums (Retiree Health Trust Contributions)
Police Dcpartmcnt cmployccs need to give up a 2~%~ salar~~ increase to
Rctircc Health Trust similar to Firc Dcpartmcnt contributions in exchange $211,385
for a City contribution of 3.3~% to the VEBA Rctircc Health Trust
Hurricane Wihna- Insurance Recovery
Additional insurance claim filed based o^ final costs incurred against $461,231
Hurricane Wilma
Rented Properties ~~~ith Tax Exemptions
Thcrc wcrc 493 rented propcrtics receiving sonic form of tax exemptions
which. if a~nfirrncd, will add `54,990.986 to the tax rolls $376,710
Rented Properties with No Landlord Permits
Thcrc wcrc 1.085 rented propcrtics found with no landlord permit on file. if $54,250
confirmed. this «~ould add X50 per propert}~
Take-Home Vehicles
Elllp~OyCCS WOn~d bC ch~lrged an ~1VCra~~C ~6~ per month fCC for thCll'
pCi'SOna~ eOlllmLlTln~~ ml~Ca~~C eOSTS frOlll L151n~~ Ta~<C-hO171C Clty VChIe~CS. ~IUc~~UUU
Employccs should be restricted to di-minimis personal use only.
TOTAL INCREASED REVENUE PROJECTIONS $1,570,545
DECREASED EXPENSES ESTIMATED
AMOUNT
Tale-Home Vehicles-
City talc-home vehicles should he lirnitcd to either no personal use or di- $8,000
111 1 11 1 171 1 5 pCl'SOna~ USC Only.
OVertlIIle Pc`1V-
Eliminate double overtime pa}~ and paid holiday time created by usin~~ $49,000
"floating holiday" assignments in Police Department
Overtime Pav-
RCdUC'C OVCrtImC c05tS hV C~mllnatln~~ Va~atlOn and }lOhday tIIl7C ilS tmlC ~i~3~~~~6
worked in the calculation of overtime pay
Union Time Pool-
Dcvclop the Union Timc Pool in the Firc Department by tal:in~~ 3 hours ofi
accrued vacation, holiday. or comp tirnc from cash employee at the
begim7ing of each year (not by usin~~ non-qualifying comp time in excess of $6,600
allowable con7p time hanks)
Pension Investment Seminars
Reduce the number of shifts allowed to he taken for investment scrninars and $50,000
IlOt ~d~0«~ tm7e Off If a shift CCp~aCCmC]lt LS 1'Cglln'Cd fOC nllmmunl In allmllf?
Car Allowances-
RCdUCC C'~lI' ~d~OWanCCS by C~mllnatln~~ fIXCd nlOnth~y ear ~1~~OWtInC'CS and pay ~SUU
CInp~0yCCS hayed On aC'tua~ hU51nC55 ml~Ca<~C On~V.
Education Pav-
Rcducc education pay by eliminating Firc Department management
Sllpp~CnlCnt~d CdUC'atlOn pay (hOLll'~y ratC~ fOI' CdllcatlOn that dL1p~IC'atCS the $28,950
State CdUCatlOn SUpp~CmCnta~ pay
Education Pav-
Eliminate duplicate education pay to Police employees by eliminating
minimum State required payment for Poliec education which duplicates the $89,30
C qty Sllpp~Cmentid CdUC'atlOn pily
Education Pay-
Rcducc education pay by changing the hourly supplemental education rate in
the Poliec Departrncnt to a fixed monthly amount so that all crnployces $0
1'CC'CIVC the SamC amOLlnt fOI' a dC<~rCC.
FLSA-
RCdUCC OVCCTLn1C ~~V C~llllmatln~~ t}1C pay117ent Of OVCrtl117C t0 CXCn1~t ~'152~661
employees that v~c already rcccivin~~ FLSA time
Tuition Reimbursement Pro~ram-
RCCIUCC the c05t Of the tUltlOn 1'CmlhUrSCmCnt prO~~ram by C~mllnatln~~
Master's de~~rees and Doctorate de~~rees from the tuition reimbru~sen7ent $63,501
program that arc not required in their job descriptions.
Tuition Reimbursement Pro~ram-
Reduce frin~~c benefit costs and pension costs by stoppin~~ the conversion of
tuition reimbursement to comp time (which is eligible for pension) $25,000
10
Mechanic ASE Certification Bonus Pav
Chan~~c the certification pay to a fixcd monthl~~ arY~ount instcad of a $0
percentage of gross pay to eliminate differences due to overtime
Retiree Health Insurance Trust (VEBA)
Change the City contribution to 2.U~% instcad of 3.3~% sink the City savin~~s
from fi~in~~c hcncfiits was not realized and the payment should he fixcd wifl~ $377,133
Il0 ~lmlllal mCCCases.
Medical Professional Fees
Ch~1r~~C the COStS Of Cnlp~OyCC n1C(~IC'a~ prOCCdLIi'CS dOnC In ThC FII'C C~InIC' tO
the Insurance FUnd hCa~th InSUranCC plan SIneC thlS S}IOU~d bC app~ICd t0 ~ZUU~UUU
employee health insurance premiums
Shuttle Bus Service
The Budget Task Force «~ould recommend keeping the shuttle bus scrvicc at
this time pending further analysis of the Con~~ress Avcnuc corridor project
b}~ Palnl BCaeh County And fLlrthCl' CViduatlOn Of shuttlC performancC oVCI' ~fU
the winter season.
Vehicle Washing;/Detailin;;
Fire Department employees should wash/detail their fire trucla and Cite
CmployCCS shOUld Wash~det~111 thCII' takC-home VChIC'ICS as p~lrt of
responsibility for vehicle maintenance as opposed to using outside $12,000
contractors
Hometown Connection Publication
),milt the Hometown COnnCCtlOn pL1bIIC'atlOn t0 the l~mlUQ1 RCport slneC It IS
duplicated by the News for Neighborhood publication which has a much $31,72
«~ider dlstrlhutlotl
Tennis Stadium Operations
Uivcn the opportunity, renegotiate the terms of the Match Point contractual
agreement and conduct cost-benefit analysis on any future commitments of $0
this nature
Tennis Center Operations
$0
Credit/Debit Card Costs
Rcne~~otiate credit/debit card transaction fees with credit c~u~d companies. $132,000
WC aI'C C'Lll'I'Cntly char<~Cd sCVCra1 dlffCi'Cnt ratCS dependent Upon location.
Travel & Training (Competition Events)
Eliminate all costs for competition events since these costs arc not rcyuired $149,169
as part of providin<~ essential services to Delray Beach residents
Special Events (SPIRIT Program)
Eliminate all costs for the SPIRIT program as these costs arc conflicting ~~fith $47,180
pay fi-eczcs. lost matching funds and huduct cuts
Police/Fire Pension Plan
Reduce the per year of scrvicc multiplier from 3.Sq~ per year to 3.O c~ per
year for all future scrvicc with no change to prior scrvicc benefits in order to $454,318
reduce the 60~% fi~ingc benefit factor on police and fire salaries
11
Insurance Broker Commissions
Issue an RFP to ]'chid insurance hrol:cr commissions since the contract has
expired.
$175,000
TOTAL DECREASED EXPENSE PROJECTIONS $2,773,270
TOTAL PROJECTED CURRENT BUDGET IMPACTS $4,343,815
(PROJECTED POSSIBLE IMPACTS ON FUTURE BUDGETS)
Reconunendation Amount
Awav with Pa_v (Comp Time)-
Rcducc future pension costs or improve productivity by eliminating
IX)171p tlmC from t~lC C'a~cn~atlOn Of penSlOn hCnCtlts SInCC COlup tlnlC IS ~~7~,188
pI'lluai'I~y OVCrtImC ~lnd nOt rC~~U~~lr pay
Sick Leave Pavout at Termination-
RedL1Ce IUTLII'e pa}'111L'nTs of Cxcess slc~i ~e~IVL' fly Cappln`~ The nlaxlluLllu
how's that can he accumulated to 1.1?0 non-shift employees and 1.34 $118,201
for Firc shift cmployccs
Vacation Leave Pavout at Termination-
Agrccments should state that vacation leave payout is considered a bonus
and is not cli~ihlc for pension calculations $-0-
TOTAL PROJECTED IMPACT ON FUTURE BUDGETS $592,389
EMPLOYEE SUGGESTIONS
The Budget Task Force has received numerous contacts from individual employees with
suggestions on increasing revenues or reducing expenses. These recommendations can
be shown as follows:
1. Consider using auction vehicles for Police volunteers instead of leasing new
vehicles City Manager response (September 8~ memo to City Commission) is
that this has been tried in the past and the maintenance costs for the older vehicles
generally exceeded the cost of the lease. Therefore, this would not be
recommended. No further action is required.
2. Consider having local auction instead of using Palm Beach County and using one
floor of the new Old School Square parking garage as a staging area. City
Manager response (September 8~ memo to City Commission) is that we do not
12
have the personnel to properly stage and secure this area. Therefore, this would
not be recommended. No further action is required.
3. Consider using an on-line auction site for auctioning our vehicles and other
equipment. Police cars, for example, could be auctioned to other Police
departments and we would not have to strip the car of back seat replacement,
prisoner cages, and lights and sirens since they could be used by other Police
departments. In addition, buyer would pick-up the vehicle and thus save the
travel time to and from the Palm Beach County auction site for multiple
employees. City Manager response (September 8~ memo to City Commission)
was that the City would implement this suggestion to determine if this is more
profitable than using the Palm Beach County auction. An agreement with
GovDeals.com was approved on the October 21, 2008 agenda.
4. Fax all confirming purchase orders over $1,000 instead of mailing to vendors.
City Manager response (September 8~ memo to City Commission) stated that this
recommendation has already been implemented. No further action is required.
5. Print in-house change orders only on regular paper and attach to original purchase
order instead of printing change order on pre-printed purchase order forms. City
Manager response (September 8~ memo to City Commission) stated that this
recommendation has already been implemented. No further action is required.
6. The Finance Department is currently reviewing the possibility of automating the
vendor payments in Accounts Payable by utilizing VISA credit card payments
which will result in rebates back to the City from Commerce Bank. The current
estimate is an annual rebate of $181,000. In addition, vendor invoicing will be
through e-mail submissions. These savings do not include the savings generated
from reduced mailing costs, reduced envelopes, or improved float on cash
payments to vendors. (June, 2009)
OTHER RECOMMENDATIONS
The City should adopt a policy that, at the end of an expiring contract, the City should
issue an RFP and seek alternative pricing to ensure the City is paying the lowest current
equitable market rates as opposed to extending the contracts to the existing vendor.
(October, 2008)
The City should entertain the recommendation to develop a Finance Review Committee
to review long-term cost proposals in order to provide recommendations to the City
Commission so that they may make informed decisions on the basis of acost-benefit
analysis, research and intensive negotiations with the vendor. In addition, this
Committee, consisting of staff and citizen appointees, would also continue cost-saving
studies and revenue generating studies to benefit the City as previously conducted by the
Budget Task Force.
13
RECOMMENDATIONS FOR INCREASED REVENUES
14
SPECIAL EVENTS COST REIMBURSEMENT
Background•
City Sponsored Events
There are eight (8) City sponsored/produced events where the City absorbs all City
overtime costs and the following:
• Chris Evert Charity Tennis Tournament (Host site fees $42,400 + other costs =
$50,000+ costs to the City)
• Turkey Trot (costs other than overtime paid by Parks & Recreation department)
• Christmas Tree Lighting ($25,000 City contribution + overtime costs)
• Holiday Parade (City contributes $1,500 + overtime costs)
• First Night (Costs other than overtime covered by revenues)
• ITC Tennis Tournament (Annual City costs of $978,333 in addition to overtime) in
accordance with contract expiring in June, 2030. This is a 9 day event.
• Players International Tennis Tournament (Host site fees $152,000 per year +CPI)
There are four (4) five day USTA sanctioned youth tournaments per year per the
contract expiring September 30, 2012
• Fourth of July Fireworks Display (City contribution $40,000 + overtime costs)
Old School Square and DMC Events
Old School Square and DMC events have the first $1,000 no charge then they pay 35°Io
of other City costs excluding regular time.
Privately Produced Events
Howard Alan Art Show- pays 100°Io of all City costs to include overtime and fringe
benefits
Non-Profit Organizations Not Incorporated in City of Delray Beach
Asian Food Festival- pays 100°Io of all City costs to include overtime and fringe benefits
Non-Profit Organizations Incorporated in City of Delray Beach
First $1,000 of City costs waived, sponsor pays 65°Io of balance of City costs
Recommendation No. 1
The Budget Task Force recommends that City overtime costs for First Night ($32,459) be
paid from revenues collected from this event or from $52,250 reserves
Estimated Potential Savings- $12,000
Follow-up Actions
The City Manager addressed this issue in a memorandum to the City Commission dated
September 8, 2008 and he concluded that First Night would pay $7,000 this year for this
event with the expectation that this would increase in the future.
15
The Assistant City Manager, in an e-mail dated February 10, 2009 announced the First
Night Committee would be transferring $12,000. No further follow up action is
required.
Recommendation No. 2
Reimbursements from non-profit organizations incorporated in the City should pay 75%
of costs instead of 65%.
Estimated Potential Savings- $10,000
Follow-up Actions:
The City Manager addressed this issue in a memorandum to the City Commission dated
September 8, 2008 and he informed the Commission that Staff would review this item
and make recommendations back to the City Commission.
Assistant City Manager, Bob Barcinski, issued a memorandum dated February 20, 2009
presenting the City Manager with his analysis of the impact of this decision. No further
follow up action is required.
16
EMPLOYEE MEDICAL PLAN PREMIUM CONTRIBUTIONS
Reference•
IAFF Union Agreement- Article 19 Health Insurance
NCF&O Union Agreement- Article 12 Health Insurance
IAFF Union Agreement (Lifeguards) -Article 19 Health Insurance
PBA Union Agreement- Article 11 Hospitalization Insurance
EB-3 Enrollment in City Group Health Plan- Administrative Policy Manual
Background•
The present policy of the City and past practice has been to have the City cover 100% of
the cost of HMO medical premiums for the active employee and the employees cover the
cost of any dependent coverage premiums. Retirees and COBRA employees pay 100%
of their entire premiums.
The City presently pays $460.93 per month for an active employee on the HMO plan and
the employee pays $-0-. In the POS plan, the City pays $564.40 and the employee pays
$29.71 per month. In the PPO plan, the City pays $671.68 and the employee pays
$167.92.
The City presently pays 77.05% of the total costs of the health plan.
Observations•
The City has been paying 100% of the monthly premium for active HMO employees
which represent over 87% of our medical plan enrollment units. In addition, over 50% of
these employees have been taking annual physicals at the Fire clinic where the City also
pays for 100% of the clinic costs. The employees pay no office visit or co-pay payments
for this service.
The City contributes 3.3% of active Police and Fire base pay to their Retiree Health Trust
in addition to the City costs of the health plan. Payments from the Trust can be used to
offset medical premiums and costs on a tax-free basis for Police and Fire retirees. Fire
Department employees gave up a 2% wage increase to receive this 3.3% deposit to the
Trust. The Police Department employees did not give up a 2% raise in exchange for
receiving their 3.3% deposit to the Trust. The difference between the 2% wage given up
and the 3.3% deposit was the estimated payroll tax savings to the City. This benefit was
negotiated in union contracts.
Per State statutes, the City is also required to pay 100% of the costs of any heart or lung
disorder for Police and Fire employees under worker's compensation with no cost to the
employee. This is called the "presumption law" and is an example of State unfunded
mandates which have cost the City millions of dollars in the past.
Recommendation:
The City should consider charging a minimum of $10.00 per pay for HMO employee
medical premiums. This would involve negotiating this change with all unions.
17
Estimated Potential Revenues:
$10.00 per pay x 26 pays x 680 employee units = 176 800
Follow-up Actions:
The City Manager addressed this recommendation in a memo to the City Commission
dated September 8, 2008 where he solicited the City Commission direction as to whether
this should be included in current contract negotiations. The City Commission directed
that a survey be done of other entities within Palm Beach County.
The Human Resources Department conducted a survey of other entities (October, 2008).
The comprehensive survey was recently completed by Gallagher Bassett of multiple
employee benefits and was presented to the City Commission in February, 2009.
In the health insurance renewal (Plan Year starting June 1, 2009), the City developed a
structure that included a "Core HMO" at no cost to the employee and a "Buy-Up HMO"
plan where the employee was charged $60.13 per month or $721.56 per year. There are
467 employee units in the new "Buy-Up HMO" plan at this time.
Projected Increase in Revenues:
For the 467 employee units in this Buy-Up HMO, the employee contribution would
equate to increased revenues of 467 x $721.56 annually or a total of $336,969.
Recommendation No. 2
The City should consider the inequity in the Retiree Health Trust in that the Fire
Department union gave up a 2% wage increase in order to receive their 3.3% contribution
to the Trust and the Police Department union did not dive up any wade increase. It would
be recommended that either the Police union contract be negotiated to allow fora 2%
wage deduction (contribution) or the 3.3% City contribution for Police retirees to the
Trust should cease.
Projected Increase in Revenues:
Police Operations salary budget of $10,569,250 x 2% _ $211,385
18
HURRICANE WILMA- INSURANCE RECOVERY
Fire Station No. 4 Insurance Recovery
Fire Station No. 4 was recently torn down and reconstructed at a cost of $2.7
million using borrowed funds. An external (third party) engineering report was
authorized and issued evaluating the building for Hurricane Wilma damage and
an assessment was made comparing rehabilitating the building or reconstructing a
completely new building. The value of the old 1981 structure was listed on the
insurance policy Statement of Values as $302,000. According to building codes,
If the cost of the proposed rehabilitation exceeded 50% of the value of the old
building, the building code requires that the entire building must be brought up to
current codes (electrical, plumbing, structural, ADA, etc.). With the hurricane
damages to the bay doors, roof, trusses, mold and mildew damage, costs should
easily have exceeded this amount. We therefore feel that the decision to construct
a new building was possibly an insurable event. The entire amount of $2.7
million has been turned in as a claim to our insurance carriers.
Other Hurricane Wilma Insurance Claims
The original insurance claims due to Hurricane Wilma were based on some final
costs and some projected costs. We have now prepared a listing of all claims
based upon actual costs. We therefore are claiming additional revenues of
966 000 from our insurance carrier. This amount, once finalized, will have to be
reconciled with FEMA and some portion may be due back to FEMA.
Follow-up Actions
A meeting has been set up with the insurance broker (Arthur J. Gallagher) on
January 8, 2009
A second meeting with Liberty Mutual and our insurance broker was held
February 18, 2009. We provided the carrier with building plans of Fire Station
No. 4 (original building and new building) and discussed the engineering report
issued on this building. It was determined at this meeting that Liberty Mutual
would only be responsible for $1.0 million of this claim and other carriers should
be notified of this claim since they would be responsible for the remainder of the
claim.
A third meeting was held with all involved insurance carriers on April 23, 2009.
At this meeting it was determined that insurance would not pay for the
replacement of Fire Station No. 4 but that hurricane repairs would be paid for.
There were several reasons for this position but primarily it was determined that
the hurricane damage was minimal and would not justify full replacement of the
building. In addition, the insurance policy excluded the code upgrades. The
remainder of the insurance claim not related to Fire Station No. 4 was to be
reviewed in detail by a forensic accounting firm.
19
The detailed information requested by the forensic accounting firm was prepared
and delivered to the accounting firm of Matson, Driscoll and Damico on May 4,
2009.
The final document review was held with the insurance carrier on June 8-9, 2009.
We received notice on June 25, 2009 that the City of Delray Beach is to receive
$461,231 in additional insurance payments for this supplemental claim. The final
Policy Release form has been executed and the funds should be forwarded in 5-10
business days according to Liberty Mutual.
Since the Finance Department has already reserved $893,923 as the estimated
reimbursement to FEMA and the latest actual estimate is $600,000, the $461,231
is to be considered revenue since it would not have to reimburse this amount to
FEMA. FEMA officials should be here in the City starting mid-July for the final
project closeout process.
Projected Increase in Revenues- $461,231
20
RENTAL PROPERTIES WITH TAX EXEMPTIONS
Background
The Budget Task Force has conducted an evaluation of all rental properties in the City of
Delray Beach to determine if the taxable assessed values of these properties are correct.
The taxable assessed values of these properties should not include any homestead and
"Save Our Homes" exemptions since they are not the primary residence of the property
owners since they are being rented.
Broward County Property Appraiser conducted a similar evaluation and completed the
City of Sunrise which uncovered over 200 properties that were not properly classified
and the end result added over $23 million to the taxable tax rolls within the City of
Sunrise.
Status
We have contacted Utility Customer Service (utility billing function) and Code
Enforcement (landlord permit function) in order to develop a listing of rented properties
in the City that we are aware of. In addition, we contacted the Palm Beach County
Property Appraiser's Office to establish a contact person for this project. We were put in
contact with Mr. Jose Montane (355-1704) and his supervisor, Mr. Pat Poston (355-
2647).
An evaluation of approximately 1,500 properties listed in the Landlord Permit File was
completed by comparing each of these properties with the Palm Beach County Property
Appraiser files. A worksheet was prepared listing all properties that continue to receive
either homestead exemptions or Save Our Homes exemptions or both. The worksheet
consisted of the property control number (PCN), address, the number of units, the market
value, the taxable value, the non-taxed value, the utility customer identification number
(for future backup reference), name of the tenant and the date the tenant initiated their
utility account. This initial listing resulted in 223 properties that were labeled as rented
and that continue to receive tax exemptions. If this is confirmed by the Property
Appraiser, this would add $23,782,562 to the taxable property tax rolls which would add
$610,023 in additional property taxes to taxing entities of Palm Beach County, the Palm
Beach County School Board, other taxing districts and the City (25.65 mils). The direct
impact on the City of Delray Beach would be $162,920 in additional property taxes at the
current millage rate (6.8504 mils). Copies of this analysis along with copies of the
Landlord Permit files were forwarded to the Palm Beach County Property Appraiser for
further review and follow-up. The Property Appraiser has the authority to go back 10
years to collect back tax amounts due.
Estimated Impact on Revenues: $162,920 (Property Taxes)
The second evaluation of rented properties involved the Utilities Customer Service utility
billing files. All customer accounts are classified as either "Owner" or "Tenant". We
prepared a listing of all the tenant files (approximately 2,500 customers). A worksheet
was prepared after comparing the tenant property to the Property Appraiser files to
21
determine if the rental properties continued to receive homestead and Save Our Homes
exemptions. The worksheet included the PCN, address, number of units, market value,
taxable value, the non-taxed value, the customer identification number, the tenant name
and the date the tenant account was initiated This worksheet contained 270 properties
that were (1) not on the Landlord Permit files and (2) received homestead and Save Our
Homes exemptions. If confirmed by the Property Appraiser, these 270 properties would
generate $31,208,424 in additional taxable values which equates to $800,496 in
additional tax revenues (Palm Beach County, School District, and the City of Delray
Beach). The direct impact on the City of Delray Beach would be $213,790. In addition,
these 270 properties have not filed for Landlord Permits ($50 each). Copies of this detail
were forwarded to the Property Appraiser for further verification and disposition. Copies
of this file were also sent to Community Improvement Department for follow-up on the
filing for landlord permits.
Estimated Impact on Revenues: $213,790 (Property Taxes)
Projected Total Increase in Revenues: $376,710
The third evaluation was to list all the rented properties that were taxed properly on their
full market value (no exemptions) but had failed to file for Landlord Permits. A
worksheet was prepared listing these properties with the PCN, address of the property,
number of units, owner name and tenant name. This resulted in 815 properties that had
not filed for landlord permits ($50 each). Copies of this detail and the worksheet were
turned over to Community Improvement Department to follow-up the filing of the
landlord permits. In addition to the 270 properties found on the Utility Billing files that
had exemptions but did not have landlord permits, the total properties without landlord
permits were 1,085. At $50 per permit, this would represent $54,250 in additional
landlord permit revenues. The Community Improvement Department has the ability to
assess triple fees for the owners not filing landlord permits.
Estimated Impact on Revenues: $54,250 (Landlord Permits)
Follow-up Status:
The Property Appraiser's Office (Pat Poston) informed this office in June, 2009 that the
letters denying homestead had been sent out for properties they confirmed were rented.
These property owners have until September, 2009 to challenge these findings. A full
accounting of their final disposition will be forwarded to the City following this appeal
period (September, 2009).
The Community Improvement Department reports that many owners have submitted
applications for landlord permits following the study. A full accounting of this will be
developed at a later date.
22
PERSONAL USE OF TAKE- HOME CITY VEHICLES
Reference•
Internal Revenue Code Section 1.61.21
Taxation of Fringe Benefits
Administrative Policy Manual- GA-4 Vehicle Use Policy
Survey of Other Palm Beach County Entities
General Rule
IRS Regulations generally consider working condition fringe benefits as taxable to the
employee unless specifically exempted. An employer provided vehicle which is totally
used for business (personal use prohibited) is exempted and is not taxable to an
employee. This vehicle must remain on City property and not be used for commuting.
An employer provided vehicle used partly for business and partly for personal
commuting use is a working condition fringe benefit.
• Verified business use of this vehicle is not taxable to the employee
• Personal use is taxable to the employee as wages
• Commuting to and from an employee's residence and work is personal use as
well as any other personal use of the vehicle
Substantiation Requirements
A record of business and personal mileage is required in order to verify business vs.
personal use. If the employee does not provide this record, the value of all vehicle use is
taxable to the employee as wages and the employee can then deduct business use on
Form 1040 at year-end. If the employee does provide a record, only the personal mileage
is taxable as wages to the employee.
Personal Use Cost
(1) $1.50 each one-way commute (normally $3.00 per day or $780 per year) if the
following conditions are met:
• Vehicle is owned or leased by employer
• Vehicle provided to employee for business use
• Employer requires the employ to commute in the vehicle for a valid non-
compensatory business reason
• Employer has a written policy prohibiting personal use other than commuting
• Employee does not use the vehicle for other than de minimis personal use
• Employer reasonably believes that the employee does not use the vehicle for other
than commuting and de minimis personal use
(2) FMV of leasing this vehicle plus fuel, maintenance, and insurance multiplied by
the percentage of personal use.
Qualified Non-Personal Use Vehicles
23
The IRS regulations allow for certain Police/Fire vehicles to be exempted from the
general requirements of being taxed for commuting mileage if the following conditions
are met:
• Clearly marked police or fire vehicles required to be used for commuting (painted
insignia or words, marked license plate not valid)
• Unmarked Police car used for law enforcement purpose
• Employee must be on call at all times
• Any personal use by police officer outside of his jurisdiction for arrest powers
must be strictly prohibited
• Any personal use by firefighter outside of his obligation to respond to an
emergency must be strictly prohibited
• Specialty utility truck (not including pickup truck) on call and used to restore
utility services is also allowed
Clean and Safe Program Unit
The Clean and Safe Program has one (1) take-home vehicle which is a Ford F-150 pickup
truck and the employee lives in Delray Beach. No mileage log is kept to our knowledge.
This program is responsible for the cleaning of the downtown area and is accomplished at
odd hours when the Garage and the Public Works complex are closed and the gates are
locked. This is a supervisor position and the vehicle is clearly marked.
Observation
This vehicle does not qualify as an emergency vehicle, is not a specialty utility truck, is
not on call, yet the vehicle is required to be taken home due to the schedule that this truck
and crew work (valid non-compensatory reason). Therefore, it would appear that the
employee should be taxed on $3.00 per day for the commuting cost.
Recommendation:
This vehicle could be maintained at the Public Works complex and the employee could
be given a gate opener similar to the one given to on-call employees. This would
eliminate all personal commuting mileage and costs. As an alternative, the employee
should be taxed $3.00 per day for commuting cost and the employee must keep a mileage
log so that the City has verifiable business and personal use mileage.
Community Improvement Units
Community Improvement Administration has five (5) take-home vehicles. These
vehicles are not emergency on-call vehicles and are not clearly marked. All of these
24
individuals are taxed for their personal mileage ($3.00 per day). No mileage logs are
kept.
(lhcPrvatinn
Since these vehicles are not emergency vehicles, are not on-call, and are not clearly
marked, they appear to be authorized for take-home use for compensatory reasons and
not for a valid non-compensatory business purpose. In addition, no mileage logs are kept
and therefore business vs. personal mileage cannot be confirmed. If this is so, the IRS
states that the $3.00 per day tax calculation method is not authorized and the individuals
should be charged and taxed the full cost of the vehicle including annual lease cost and
S.Scents per mile for all mileage. It would then be up to the individuals to report the
deduction for the business portion of those costs on their Form 1040 at year end.
Recommendation
Vehicles that do not qualify as take-home vehicles should not be used for commuting.
The $3.00 per day tax for mileage does not qualify since the vehicles do not qualify as
acceptable take-home vehicles. The employees should be charged the full cost of the
vehicle and report their business vs. personal costs on their tax forms at year-end. As an
alternative, these individuals could be given compensatory car allowance and the vehicles
would be stored at the City and used as pool vehicles for this department.
Fire Department Units
In a memorandum dated August 20, 2001, the Fire Chief directed that all management
employees be authorized personal use of staff vehicles for employees that live in Palm
Beach and Broward County effective October 1, 2001. This memorandum conflicts with
IRS regulations that state that personal use other than commuting must be prohibited.
The IRS allows for the commuting use of fire vehicles if the following restrictions are
met:
• Fire vehicle, for non-compensatory business reasons must be required to be used
for commuting
• Vehicle must be on call at all times
• Fire vehicle must be clearly marked
• Personal use outside the limit of the firefighters obligation to respond to an
emergency must be prohibited
25
• The employer reasonably believes that the employee does not use the vehicle for
personal use other than de minimis personal use.
The Fire Department has emergency vehicles in 6 fire stations located throughout the
City and Highland Beach capable of responding immediately to either fire or medical
emergencies within minutes of a 911 call.
The Budget Task Force questions the need for take-home vehicles for the Fire
Department on a full-time basis with the exception of the Fire Chief who, by policy, is
authorized atake-home vehicle. They question the need for three unmarked take-home
Ford Expeditions for the Assistant Fire Chiefs that are on duty at the same time and in the
same building. They would also question why one Battalion Chief would have a required
take-home vehicle and not all three since they are all shift commanders with identical job
descriptions. Why would one Fire Lieutenant (who lives furthest away from the City)
have a required take-home vehicle when four other Fire Lieutenants (who live within the
City or nearby cities) do not have vehicles when they have a 30-minute response time
requirement? Why would a Paramedic Lieutenant be required to take home a Dodge
Quad Cab 4x4 who lives in Tequesta? Why would a Paramedic Lieutenant take home a
Ford E150 Club Wagon living in Lake Worth? If these are emergency vehicles they
should be available to shift personnel on duty. Are these employees actually on-call?
How often are they actually called in for emergencies?
There have been numerous comments on the constant use of fire pumper trucks and even
ladder trucks for transport of Fire Department personnel to minor medical calls, traffic
accidents, or other events unrelated to fire calls or special needs (extrication equipment,
etc.). If some of these take-home vehicles were available for shift use, could they be used
for transport of personnel to reduce the mileage on the larger vehicles? The mileage on
the larger Fire apparatus trucks can be shown as follows (June 2007-June 2008 records):
There are 15 Fire Department take-home vehicles. Three (3) vehicles are not marked
(IRS requirement) which allows for questionable personal use. Several vehicles are
26
outside of the area where they could reasonably be obligated or expected to respond to an
emergency (Sunrise, Tequesta, Stuart for example) which is also an IRS requirement..
On average, 44.09% of the miles put on these Fire take-home vehicles are for
personal commuting use. It should be noted that we calculated personal mileage by
doing a MapQuest to the employee's residence. Other personal mileage may have been
used and these percentages could be higher.
Police Department Units
Reference•
PBA Union Agreement (Article No. 40 Take Home Vehicle Plan)
The union agreement Article No. 40 allows for non-probationary officers that live in
either Palm Beach or Broward County to have atake-home vehicle. This benefit was
given to offset the policy of other entities that allowed take-home vehicles and to enhance
the presence of police patrol units. The policy states that Officers living outside a 15-
mile distance from the City of Delray Beach limits must be charged $15 per pay ($1.50
per normal workday) for their commuting personal use. In addition, internal Police
Department procedures were to be prepared to define the policies and procedures
regarding take-home vehicles.
Observations•
There are 113 take-home vehicles in the Police Department at this time.
• 7 vehicles have over 80% of their total use commuting (personal mileage), 20% or
less business use
27
• 5 vehicles have between 70% and 80% of their total use commuting, 20% - 30%
business use
• 6 vehicles have between 60% and 70% of their total use commuting, 30% - 40%
business use
• 19 vehicles have between 50% and 60% of their total use commuting. 40% - 50%
business use
• 14 vehicles have between 40% and 50% of their total use commuting, 50% - 60%
business use
• 19 vehicles have between 30% and 40% of their total use commuting, 60% - 70%
business use
• 20 vehicles have between 20% and 30% of their total use commuting, 70% - 80%
business use
• 20 vehicles have between 10% and 20% of their total use commuting, 80% - 90%
business use
• 3 vehicles have between 0% and 10% of their total use commuting, 90% - 100%
business use
There are currently 28 employees with take-home vehicles that exceed the 15 mile limit.
Of these there are only 7 employees that pay the $15.00 per pay period. The 15-mile
limit was measured from the Police station to the employee's home and the policy reads
from City limits and therefore some of these units would qualify for the 15-mile limit.
Police Department
Percentage of Commuting Miles to Total Miles
Overall, 39.33% of all Police take-home vehicle use is for commuting only.
28
There are nine (9) Citizens on Patrol (COP) vehicles leased by the Police Department.
They are 2005 Honda Civic sedans (1545-1553) costing $273.90 each per month or
$3,286.80 per year. Therefore, the total annual lease cost would be $29,581.20. These
leases were recently renewed in 2008.
There are five (5) volunteer Toyota Camry vehicles (1540-1544)leased by the Police
Department from Southeast Toyota costing $295.00 per month for an annual lease cost of
$17,700.00. These leases were recently renewed in 2008.
Parks and Recreation Department Units
There are nine (9) take-home vehicles in this department. Two units are in
Administration, one unit is in Ocean Rescue and six units in Parks Maintenance. All of
these take-home vehicles are for supervisor positions.
None of these vehicles are emergency vehicles. Several units are unmarked. All of the
take-home vehicles in Parks Maintenance are F-150 pickup trucks which are not
recognized by the IRS as eligible vehicles.
The Budget Task Force would question the need for any of these vehicles to be allowed
as take-home vehicles. In particular, why would the Supervisor of Ocean Rescue need to
have a Dodge Dakota 4x4 as a required take-home vehicle? If any of the Parks
Maintenance vehicles were on call, they could be issued a gate opener and retrieve their
vehicle from the Public Works complex if needed.
Recommendations
The Budget Task Force would recommend that the City conduct an in-depth survey to
review all take-home vehicles, justify the reasoning for the take-home use, review the
"clearly marked" vehicles vs. the unmarked vehicles, review the location of the employee
residence, determine if the take-home vehicle is for compensatory or non-compensatory
reasons, question the actual number of recalls and emergency responses, determine if on-
call employees could simply be issued a gate opener and retrieve their vehicle from the
Public Works compound, and compare this data with IRS regulations in order to
determine exactly how many units are truly justified and required to be taken home and
used for commuting purposes. Those units required to be taken home should be charged
accordingly. Those not needed should be used exclusively for business purposes,
eliminated from the vehicle inventory or used as pool vehicles.
Take-Home Vehicle Policy- Other Cities
Boca Raton
• Police Department- $-0- charge to employee living within City limits and $20 per
month charge to employee living outside City limits
• Department Heads receive either atake-home vehicle or a car allowance between
$75 per month to $350 per month dependent upon their pay grade
• No other City take-home vehicles
29
Boynton Beach
• Police Department- must live within 20 miles of City limits. Those living outside
20-mile limit will be issued a pool car but may not take vehicle home
u iter
• Police Department- sworn officers are allowed take-home cars. All officers pay the
City $SO per pay~eriod. Officers that live within 5 miles of City may use car for
personal use. Officers outside 5 miles may not use car for personal use. There is
no limit on commuting mileage.
• Limited take-home vehicles for other than Police Department
Palm Beach Gardens
• Police Department- officer must live within 30 miles of City limits. Officers pay
$5 per mile outside of City limits per month (example: officer lives 30 miles
outside City would pay $150 per month). Officers are expected to clean, vacuum,
and wash their vehicles
0-5.0 miles from City $25 per month ($12.50 per pay)
5.1-10 miles $50 per month ($25.00 per pay)
10.1-15 miles $75 per month ($37.50 per pay)
15.1-20 miles $100 per month ($50.00 per pay)
20.1-25 miles $125 per month ($62.50 per pay)
25.1-30 miles $150 per month $75.00 per pay)
30.1+miles- No take home vehicle
Wellington
• No Police Department- contract with the Sheriff's Department
• All other take-home vehicles in accordance with IRS guidelines ($3.00 per day or
$30 per pay period). Mileage logs must be kept.
Juno Beach
• Police Department- officer must live within 30 miles of City limits. Officers pay
the following:
0-10 miles from City $10 per pay (one-way commute) or $20
10.1-20 miles $25 per pay (one-way commute) or $50
20.1-30 miles $35 per pay (one-way commute) or $70
30.1+ miles with City Manager approval only -cost to be determined
T.akP Wnrth
• Police Department- officer must reside within City limits
Lantana
$3.00 per day for all non-Police vehicles plus $50 flat rate per pay_period for all
take-home vehicles
Palm Beach
• No Police, Fire, General employees have take-home vehicles
30
• City Manager and Department Heads have option for $400 per month car
allowance or take-home vehicle
Palm Beach Countv Sheriff's Department
• Sworn officers pay $25.00 per pay period for off-duty usage
• Civilian employees pay $10.00 per pay period plus $3 per day IRS tax
Palm Beach Countv Fire Department
• In no case will atake-home assignment be made as a benefit of employment or
convenience to the individual
• Employee must be on-call. On call means that the employee is in the area, can be
contacted at a specific telephone number, and will respond immediately. The
willingness to respond if contacted does not constitute an on-call status.
• Only employees living in Palm Beach County qualify for take-home vehicles
• Mileage logs must be maintained for all vehicles except for IAFF agreement
approved vehicles authorized for full-time take home vehicles
• Logs of all call-ins required
• Personal use is prohibited. No family or relatives, friends, or co-workers may be
transported for off-duty, non-business use. Accidents during non-authorized use
will not be covered by County insurance and are the responsibility of the
employee
Follow-up Actions:
The Police Department has resolved their sworn officers' take-home vehicle issues. They
have decided to limit their take-home vehicle personal use to di minimis use in
accordance with IRS guidelines. This essentially means that these officers will not be
taxed on their personal use to and from their residence as long as their residence is within
their law enforcement jurisdiction.
The Fire Department has decided to mark all their vehicles and have issued option letters
to their senior staff. These option letters have been executed and these officers will be
taxed according to their selection. Some officers will be required to submit monthly
mileage logs.
Recommendation:
The City of Delray Beach should charge the employees with City take-home vehicles for
their personal mileage $3.00 per day ($60.00 per month) to reimburse the actual cost to
the City for personal commuting mileage. With approximately 150 take-home vehicles,
this would be $108,000 per year.
Projected Revenue Increase: $108,000
Projected Cost Decrease $48,000
31
RECOMMENDATIONS TO REDUCE EXPENSES
32
OVERTIME PAY
References:
Human Resources Policy Manual- Overtime/Compensatory Time
Classification and Pay Plan
IAFF Collective Bargaining Agreement
PBA Collective Bargaining Agreement
NCFO Collective Bargaining Agreement
Memorandum from Finance Director dated October 25, 1994
Background•
Non-union employees are covered by the Human Resources Policy Manual and their pay
is shown in the Classification and Pay Plan. The pay plan identifies employees that
receive overtime (non-exempt) and those that do not receive overtime (exempt). The
policy manual stipulates that vacation time and holiday time will be considered time
worked for the computation of overtime. The manual also states that exempt employ
are not eligible for overtime or compensator. There can be an exception for
extraordinary conditions.
In the Fire Department union contract, vacation time and holidays are recognized as time
worked for the computation of overtime. Overtime is calculated based on a 21-day work
cycle (overtime paid after 144 hours) for shift personnel and a 40-hour week for non-shift
personnel. Union business may be conducted by swapping shifts with no overtime
allowed for union business. Only union officials or their designees may take time from
the Time Pool and no overtime shall be paid for use of the Time Pool. The Time Pool is
established from the donation of personal holiday, vacation time or compensatory time
from bargaining unit members. Leave of absence with pay shall not be considered as
time worked for the computation of overtime. Leave of absence with pay for City
business shall be considered as time worked for the computation of overtime
In the Police Department union contract, vacation time and holidays are recognized as
time worked for the computation of overtime. Overtime is calculated based on an 80-
hour bi-weekly pay period for all full time employees. Union business may be conducted
by swapping shifts with no overtime allowed for union business. Only union officials or
their designees may take time from the Time Pool and no overtime shall be paid for use
of the Time Pool. The Time Pool is established each October by each bargaining unit
member donating three (3) hours of vacation, holiday, or compensation time (this was
confirmed by the Payroll Administrator). Leave of absence with pay shall not be
considered as time worked for the computation of overtime. Leave of absence with pay
for City required training sessions shall be considered as time worked for the
computation of overtime.
In the other departments (NCFO union), vacation time and holidays are recognized as
time worked for the computation of overtime. Overtime is calculated based on a 40-hour
workweek (7 days) after which overtime shall be paid. Leave of absence with pay shall
not be considered as time worked for the computation of overtime. Leave of absence
33
with pay for City business shall be considered as time worked for the computation of
overtime
Methodology:
A schedule of total wages and overtime for calendar year 2007 (all employees) was
prepared The total wages for 2007 were $43,397,834 and overtime costs for Calendar
Year 2007 were $3,318,000 (not including comp time). This schedule was then sorted by
department and by total wages for the year.
• Noted 60 employees over $100,000
1. City Manager- 2
2. City Attorney- 2
3. Community Improvement- 1
4. Engineering- 1
5. Environmental Services- 1
6. Finance- 2
7. Fire- 33
8. Police- 18
A schedule of overtime by department (9-years) was then prepared.
Of the total of $3,318,000 in overtime costs for calendar year 2007, 92.5°Io of all overtime
costs were in the Police, Fire, and the Parks & Recreation departments which are all part
of the General Fund. The remaining 7.5°Io was primarily Public Works and Public
Utilities. In this period 86.4°Io of the total overtime was in Police and Fire departments.
Public Works was generally due to special events and Public Utilities overtime is
primarily due to water line breaks, sewer line breaks, or work that could not be done or
completed during normal working hours.
The Fire Department expended $1,283,873 in overtime costs (38.7°Io of total) for
Calendar Year 2007. Following an interview with the Fire Department staff at a Budget
Task Force meeting and subsequent discussions, it was presented that over 80°Io of this
overtime is due to minimum manning of stations.
The Police Department expended $1,583,533 in overtime costs (47.7°Io) for Calendar
Year 2007. Following an interview with the Police Department staff at a Budget Task
Force meeting and correspondence from Chief Larry Schroeder, it was presented that
82°Io of their overtime was in the Operations Bureau and there were six (6) major reasons
for their overtime. A summary breakdown of these major reasons is as follows:
• Staffing for special events- 20.61°Io
• Minimum manning- 14.41 °Io
• Holiday robbery task force- 9.13°Io
• Court attendance- 7.31 °Io
• Robbery task force- 6.70°Io
• SWAT training and deployment- 5.13°Io
• Other tasks and duties- 36.70°Io
34
The Parks & Recreation Department expended $201,679 in overtime costs (6.1%) for
Calendar Year 2007. Following an interview with the Parks & Recreation Department
staff at a Budget Task Force meeting and correspondence from Acting Director Tim
Simmons, it was presented that most of this overtime was due to staffing f~pecial
events, lifeguard manning (7 damper week), and other activities not able to be completed
during normal working hours.
Findings:
Police Department
Police union employees are allowed to be paid double pay for working a holiday for the
time actually worked (PBA Union Agreement Article 13, Section 3~. This provision is
supposed to mean that an employee will receive straight time for the holiday and straight
time for the time worked. If an employee does not work a holiday then, and only,
would the holiday count as time worked for the computation of overtime. This was
clarified in a memo from the Finance Director dated October 25, 1994.
The annual budget for the Police Department includes 2,080 hours for each employee that
would include their paid time off for vacation, sick, and holiday time. Therefore, these
employees are budgeted as if they will take off all holidays. If they are required to work
on a holiday, Police employees can assign when their holidays are taken ("floating
holidays") with the permission of the Police Chief or his designee. Several employees,
instead of taking the time off are assigning their "floating holidays" to days that they
already are working overtime and are receiving pay for their holiday and double
overtime. This means, as an example, that an employee working overtime on a Saturday,
could receive 24 hours of pay for 8 hours of work (8 hours for the holiday and 16 hours
for 8 hours of time worked at double overtime) since they are considering holiday time as
time worked. This was the only department in the City to record double overtime.
Examples of this double overtime are provided below:
Position Hours Double Overtime
Sergeant 87.25 6,874.85
Sergeant 85.50 6,614.77
Sergeant 88.00 (,545.44
Sergeant 110.00 7,950.04
Career Officer 3 68.00 4,572.04
Career Officer 2 (2.50 4,033.65
Career Officer 1 83.00 4,405.90
Police Officer l~r Class 136.00 6,787.78
Police Officer l~r Class 66.50 4,083.87
Police Officer l~r Class 81.50 5,496.92
The total amount of Police double overtime costs for 2007 was $255,981
35
Recommendation No. l
The Budget Task Force would first recommend that the City consider ceasing the ability
of Police union shift employees to assign their "floating holidays" to days they already
are working overtime and thus eliminate all double overtime costs. The union agreement
states that a straight-time rate will be paid for these assigned holidays, not a double
overtime rate. But by assigning this day to a day when overtime is being worked, it
results in additional overtime. The intent of the floating holiday was to move the holiday
to a day that could be taken off, not to assign this day to a day that they are already
working. If the Police employee charged 24 hours for the day and the correct amount
should be 12 hours (8 hours worked for the day at time and a half rate) the savings would
be 50.0% of the actual paid time (8 hours of paid holiday that should not be paid + 4
hours of added overtime).
Estimated Potential Cost Reduction:
8 hours of paid holiday time x 11 holidays x 150 employees x $25/hour= $330,000
4 hours of extra overtime pay x 11 holidays x 150 employees x $25/hour= $165,000
Total potential cost reduction is 495 000.
Follow-up Actions:
The first payroll of October, 2008 was reviewed to determine if double overtime was still
being charged by the Police Department. There were 22 individuals that were charging
double overtime for a total of 95.75 hours ($6,211). An e-mail was sent to the Police
Chief reminding him of the Budget Task Force suggestion and the supporting document
from the City Manager to the City Commission dated September 8, 2008. The City
Manager also sent an e-mail to the Police Chief stating that this double overtime should
be stopped and that it did not need to be negotiated.
The second payroll for October, 2008 was reviewed to determine if the double overtime
was being charged. It was found that there were 22 employees charging double overtime
for a total of 152.5 hours ($9,621). Finance contacted Major Hartmann who stated that
this was being currently negotiated. Contact was then made with Human Resources and
the City Attorney to determine why this was being negotiated. (October 27, 2008) An e-
mail was forwarded to the Police Department, Human Resources, and the City Attorney
stating that, at this rate, over 20% of the Operations Bureau will be spent on double
overtime for the year and asked to resolve this issue as soon as possible.
The third payroll for November, 2008 was reviewed to determine if the double overtime
was being charged. It was found that there were 25 employees charging double overtime
for a total of 191.5 hours ($12,194). An e-mail was forwarded to the City Manager,
Police Chief, Police Major, City Attorney and Human Resources Director stating that, at
the current rate, over 24.3% of the Operations bureau will be spent on double overtime
and asked that we be advised as soon as this issue is resolved.
The City Attorney's office received a legal opinion that this does not require union
impact bargaining. A meeting was held with the City Manager, Police Chief, Major
36
Hartmann, Human Resources Director, and Finance Director resulting in direction to
cease charging holiday time to days an officer is working overtime. This should
eliminate double overtime.
The Police Department incurred $134,442 in holiday pay and double overtime costs
through January 9, 2009 which was communicated to the department. This amount
through one quarter appears to confirm the savings estimate of the Budget Task Force for
an annual period. The City Manager stated that this would be resolved by February 1,
2009 or the City would implement the terms of the union contract as written.
As of June, 2009 there does not appear to be any continuing double overtime for the
payment of holiday time assigned to days officers are working. No further action is
required.
Recommendation No. 2
The Budget Task Force would also recommend that the City consider changing all
policies and union agreements to only allow time actually worked in the calculation of
overtime and delete the allowance of vacation time, holidays and any other charges for
time not actually worked as allowable time worked. The Budget Task Force feels that
this would be a fair and reasonable way to administer overtime. We could not find any
FLSA guidelines that require vacation time or holidays as time worked in the
computation of overtime. Again, this benefit has been in place for several years. It needs
to be emphasized that this benefit reduction is proposed in order to reduce the number of
potential job cutbacks.
Estimated Potential Cost Reduction
$333,180 (10% of total overtime costs of $3,331,800) per year + fringe benefits
(estimated 7.65% FICA) = 335 346.
Follow-up Actions:
The City Manager issued a memorandum to the City Commission dated September 8,
2008 stating that this recommendation would have to be bargained. The Finance Director
met with the Human Resources Director and confirmed that this recommendation is being
placed in the current PBA agreement for consideration.
Recommendation No. 3
The State of Florida passed legislation effective in 1999 that required Police overtime be
included as a minimum benefit in pension calculations up to 300 hours annually. It is
well recognized that there is a nationwide problem with funding of Police and Fire
pension plans. The current Delray Beach pension plan for Police and Fire allows an
individual to retire with a maximum of 87.5% (3.5% per year of service x 25 years) of
average monthly earnings. The individual retiree also receives a cost of living adjustment
paid for from premium taxes on local resident's insurance policies. In addition, the City
pays for social security benefits that also have a cost of living applied. The total of these
benefits would mean that an individual could easily earn more in retirement than the,
on active duty.
37
The Budget Task Force would recommend that our City Commission, lobbyists, and the
State legislators respond to this situation by seeking legislation removing overtime from
the calculation of pension payments. Taxpayers should not be asked to fund retirement
benefits which allow an individual to earn more in retirement than active duty.
Follow-up Actions:
The City Manager presented his recommendation to the City Commission in a
memorandum dated September 8, 2008 that this issue be made one of the City's
legislative priorities for the next session of the Legislature and that we seek to have this
adopted by the Florida League of Cities in the legislative policy statement.
An e-mail was sent to the City Manager in October, 2008 recommending this action be
done. This was advance notification prior to the City Manager attending legislative
meetings with the Florida League of Cities in October.
The City filed legal action against the State of Florida stating that the 1999 legislation
interfered with the City of Delray Beach 1993 Agreement approved by the unions, the
Police & Fire Pension Board and the City of Delray Beach. In May, 2009 the City of
Delray Beach prevailed in this action which means that the 1999 legislation cannot
overturn the 1993 Agreement and that we do not have to include Police overtime in
pension benefits. The premium taxes received would be used to pay retiree cost of living
increases. No further action is required.
Fire Department
The Fire Department is using compensatory time that exceeds allowable time banks to be
donated to the Union Time Pool. The time pool is for union employees to conduct union
business and the time is supposed to be donated from vacation time, holiday time, or
compensatory time of union members.
Recommendation No. 4
The City Manager and the Department Head in the Fire Department need to discuss the
hours used to develop the union time pool for the Fire Department so that employees are
not donating time that would normally not have been paid since it exceeded allowable
compensatory time caps. By donating this time to other employees the City is paying for
the time which otherwise they would not be required to pay. The Police Department, for
example, turns in a listing to the Finance Department Payroll Administrator each year of
union employees and each employee's donation of time to be taken from their active
accumulated time banks. Payroll then deducts this time from their accrued time banks.
The Fire Department should turn in this type of listing each year to the Finance
Department Payroll Administrator so that the City can keep track of the payment of the
union time pool.
Estimated Savings-
If the Fire Department turned in 3 hours per employee each year for the Union Time Pool
from active vacation, holiday, or comp time banks the savings would be as follows:
38
88 Employees x 3 hours x $25.00 average salary = $6,600
The Fire Department is allowing employees that are part of the Police & Fire Pension
Board to have 10 shifts off for education seminars. For a shift worker, this represents 10-
24 hour shifts off to go to these seminars or 240 hours. This represents a significant
expense, in addition to the lost productivity during the 10 shifts, since most shift workers
are part of minimum manning requirements and have to be replaced with overtime
workers. The cost of one Fire Department shift employee to attend these seminars is
costing more overtime than most other City departments are given in their entire
departmental overtime budgets. This 10-shifts off would not appear to be reasonable
since the term of office for pension board members is only 2 years and the Pension Board
retains professional money managers and a monitor that oversees these money managers.
One of the members on the Pension Board is a Battalion Chief (shift worker) who is
allowed to be replaced by another Battalion chief at an overtime rate. Another employee
is a Paramedic Lieutenant (shift worker) who would normally be replaced with another
Paramedic Lieutenant at an overtime rate. The third employee is a Fire Lieutenant who is
a normal 8-hour shift employee and would not be replaced.
Example
Scenario No. l
Fire Battalion Chief- maximum allowed 10 shifts off for seminars and not replaced
240 hours x $39.56= $9,494.40 x fringe benefits (51%) _ $4,842.14 = $14,336.54
Fire Paramedic Lieutenant- maximum allowed 10 shifts off for seminars and not replaced
240 hours x $37.56= $9,014.40 x fringe benefits (51%) _ $4,597.34 - $13,611.74
Fire Inspector- maximum allowed 10 shifts off for seminars and not replaced
80 hours x $42.92= $3,433.60 x fringe benefits (51%) _ $1,751.14 = $5,184.74
Total Scenario No. 1 Fire Department = 33 133.02
Scenario No. 2
Same as Scenario No. 1 except Battalion Chief and Paramedic Lieutenant are replaced as
part of minimum manning requirements:
Fire Battalion Chief- maximum allowed 10 shifts off for seminars and is replaced
240 hours x $39.56= $9,494.40 x fringe benefits (51%) _ $4,842.14 = $14,336.54
Replacement
240 hours x $39.56 x 1.5 = $14,241.60 x fringe (7.65%) _ $1,089.48 = $15,331.08
Fire Paramedic Lieutenant- maximum allowed 10 shifts off for seminars and is replaced
240 hours x $37.56= $9,014.40 x fringe benefits (51%) _ $4,597.34 - $13,611.74
Replacement
240 hours x $37.56 x 1.5= $13,352.16 x fringe (7.65%) _ $1,034.40 = $14,386.56
Fire Inspector- maximum allowed 10 shifts off for seminars and not replaced
80 hours x $42.92= $3,433.60 x fringe benefits (51%) _ $1,751.14 = $5,184.74
Total Scenario No. 2 Fire Department = 62 850.66
39
It is unknown what this limit is for Police Department employees. However, numerous
members of this Board have gone to Hawaii, Toronto, Las Vegas, New York and other
locations as well as in-State seminars within the same Plan year. This Board's current
actuarial study disclosed $183,000 of administrative expenses beyond what they spent for
investment-related fees to money managers, whereas the General Employees Pension
Plan spent $11,573. Most of this $183,000 expense can be attributed to travel expenses
related to investment seminars.
Recommendation No. 5
The City Manager and the Police and Fire Department Heads need to review and limit the
amount of lost productive time and overtime costs being realized by allowing individuals
to attend numerous investment seminars for the Police & Fire Pension Board in any given
year. This could be of significance if these employees are being replaced for minimum
manning purposes at overtime rates of pay. The recommendation is to reduce the number
of shifts off being allowed by 50% and not allow any time off if the employee would
need to be replaced.
Estimated Increase in Productivity or Reduced Expenses- $50,000
40
CAR ALLOWANCE
Reference:
Car Allowance Policy No. GA-40
Findings:
The City of Delray Beach currently pays $79,333.20 per year for twenty-eight (28) fixed
car allowances with no required reporting of business mileage. Some of these
allowances, per the policy, appear to be either contractual or entitlements. The City
Manager and City Attorney are to receive $400.00 per month grossed up for taxes, for
example. However, most of the other employees were given car allowances with the
policy provision that they have either 200 or 400 business miles per month. Those
employees with over 200 will receive $110.00 per month and those with over 400
business miles per month will receive a $220.00 per month allowance.
A normal employee works 20 days per month and therefore must average 10 or 20
business miles per day to justify their car allowance. This, of course, does not include
travel to and from work that is considered personal mileage.
Car allowances are paid through the payroll system and taxes are deducted from the gross
amount. Employees can then deduct their business mileage from their tax returns if they
have kept a log of their business mileage and can show the IRS personal use versus
business use.
Recommendation:
The Budget Task Force would recommend that the City consider changing from a fixed
monthly car allowance to a monthly payment for actual business mileage. Employees
should not consider this payment as an entitlement but a reimbursement of business
mileage. Employees must maintain business mileage logs which can be turned in each
month and they will be paid at a fixed mileage rate of $.44 per mile (or the current rate
established within the policy). This payment will be processed through the Accounts
Payable system with no taxes taken out. This method ensures that the City is paying for
only the actual amount of business miles driven each month. The Budget Task Force
feels that this is a fair and reasonable way to administer a reimbursement program for the
business use of a personal vehicle.
Estimated Potential Cost Reduction:
$40,000 per year (50% of total) + fringe benefits (estimated FICA 7.65%) = 43 060
Follow-up Actions:
The City Manager submitted his recommendations in a memo to the City Commission
dated September 8, 2008. With the exception of those individuals that are given car
allowances per an employment contract (City Manager and City Attorney), all employees
receiving a car allowance will be required to submit a quarterly mileage log to verify
their actual business mileage. Car allowances would then be adjusted dependent upon the
actual business mileage.
41
The Finance Department designed a standard Vehicle Mileage form for business mileage
in October, 2008.
The Finance Department redrafted GA-40 to revise the policy and included the mileage
log form as part of the policy. This form can be used for either the verification of their
car allowance mileage or for those employees requesting mileage reimbursement.
A revised policy (GA-40 Revision 9) was forwarded to the City Manager for approval.
The City Manager issued a revised policy GA-40 effective December 1, 2008 with the
requirement for a quarterly mileage log.
In conversations with the City Manager on January 27, 2009, the City Manager stated
that any employee with either an employment contract or an offer letter from the City that
allowed for a car allowance would not be required to submit a quarterly mileage log.
A final tabulation of mileage logs was presented to the City Manager February 6, 2009
who will then determine the revised car allowances (or mileage reimbursement) for the
next quarter. Since almost all employees had to have some form of written documentation
to warrant the payroll inclusion of a car allowance, these documents represent a form of
offer letter and therefore there will be very few employees that are required to present
mileage logs in the future.
Out of the origina128 employees receiving a fixed car allowance, based upon the fact that
most had either an employment contract or offer letter, only 6 employees will be required
to provide mileage logs on an on-going basis. The remaining employees continue to
receive a fixed car allowance.
Revised Estimated Savings:
The estimated savings from the remaining 6 employees out of 28 original employees
receiving car allowance is 500.
No further action is required.
42
EDUCATION INCENTIVE PAY
Reference:
Listing of Fire State Supplemental Education Compensation (F.S. 633.362)
Listing of Police State Supplemental Education Compensation (F.S. 943.22)
Background•
Florida statute (F.S. 633.362) requires and provides for supplemental education compensation for
certain "firefighters" who qualify. This compensation is a fixed rate of $50 per month ($600
annually) for an applicable Associates Degree and $110 per month ($1,320 annually) for a
Bachelor's Degree. The State reimburses the City for this cost from insurance premium taxes.
These costs are allowed to be part of the employee pension calculation. The City currently has 53
Fire Department employees receiving this State supplemental compensation totaling $4,210 per
month ($50,520 annually). This benefit is not covered by the IAFF union agreement.
Florida statutes (F.S. 943.22) require a Cit.~provide for supplemental education compensation
for certain "law enforcement officers" who qualify. The minimum required compensation is a
fixed amount of $30 per month ($360 annually) for an applicable Associates Degree and $80 per
month ($960 annually) for a Bachelor's Degree. The State does not reimburse the City for this
cost as it does for the Fire employees. These costs are allowed to be part of the employee
pension calculation. The City currently has 114 Police Department employees receiving this
supplemental education compensation totaling $89,340 per year. Note: This is a different
provision than the Fire supplemental pay which is reimbursed by the State premium taxes. This
benefit is not covered by the PBA union agreement.
Sworn officers in the Police Department (Union and Non-Union) are being paid $1.00 per hour
for an Associates Degree and $2.00 per hour for a Bachelor's Degree in addition to the State
mandated minimum education payments. This hourly rate applies to all hours to include
overtime. The State required minimum incentive pay is a fixed amount per month regardless of
the number of hours worked. This means that the Police Department employees are actually
being paid twice for their education incentive payments.
Findings:
Fire Department- Several Fire Department non-union mana eg ment positions are currently being
paid $1.00 per hour for an Associates Degree or $2.00 per hour for a Bachelor's Degree in
addition to their hourly rate and in addition to the State supplemental compensation. This means
that these employees are being paid twice for their education pay. This amount is also
allowed for pension calculation purposes. Most of these positions require a degree in their job
descriptions (or equivalent experience) and therefore is considered in their salary schedules. This
hourly rate is allowed for all hours to include overtime hours. Union employees do not receive
this additional hourly rate education benefit. Union employees only participate in the State
supplemental education compensation.
A breakdown of the Fire Department management positions receiving this hourly adjustment are:
Position Cih~ Incentive State Incentive 'total Incentive
Assistant Fire Chief $2,080 $600 $2,680
Assistant Fire Chief 2,0811 601) 2,681)
Assistant Fire Chief 4,160 1,320 5,480
43
Division Chief '4,625 1,320 5,9=45
Division Chief =4,160 600 4,760
Battalion Chief 4,669 0 4,669
Battalion Chief =4,974 0 4,974
Battalion Chief 2,202 600 2,802
'Total Cih Pay ment $28,950 $5,040 $33,990
Management states that this benefit was allowed since the Police Department management
personnel have this benefit. Although this is not part of the personnel policies, Fire Management
represents that they have a memo from the City Manager allowing this benefit, but it must be
realized that they are being paid twice for their education incentives.
Recommendation: No. 1
The Budget Task Force would recommend reconsideration of the Fire Department policy that
increases an exempt management employee hourly rate for a level of education that is required in
their job description. In theory, the minimum maximum salary ranges should already include
payment for the level of education required in the job description. Since their union employees
do not receive this benefit, there is no compression caused by this benefit.
The State statute appears to exempt certain State management positions from the State education
compensation. The statute also allows for any questionable positions to be submitted to the State
for clarification. The Budget Task Force would recommend that the list of management
employees that require a degree as part of their job description be submitted to the State for
clarification and approval
Estimated Potential Cost Reduction:
Fire management employee savings = 28 950
Follow-up Actions:
The City Manager issued his recommendation in a memorandum to the City Commission dated
September 8, 2008. His recommendation is that we keep the Fire Department associates and
bachelors degree supplemental education payments (in addition to the State supplemental
education pay) since this has proven to be a benefit to the City, is needed for succession planning,
and was promised to keep these positions in line with the Police Department senior staff benefits.
Since there is no action on the Police benefit (January, 2009 e-mail from City Manager), No
further action is required.
Police Department- Sworn officers in the Police Department (Union and Non-Union) are being
paid $1.00 per hour for an Associates Degree and $2.00 per hour for a Bachelor's Degree in
addition to the State mandated minimum education payments. This hourly rate applies to all
hours to include overtime. The State required minimum incentive pay is a fixed amount per
month regardless of the number of hours worked. There is a significant difference in these two
methods. As noted previously, some officers have a large number of overtime and even double
overtime hours.
Example: Bachelor's Degree $2.00 per hour + fixed $960.00 State mandated payment- the
annual City cost is as follows:
44
State City
Hours 1~landated Hourly ~l'otal
~~orked Payment Payment Payment
2,080.00 960.00 4,160.00 5,120.00
2,185.25 960.00 4,370.50 5,330.50
2,807.50 960.00 5,615.00 6,575.00
2,881.75 960.00 5,763.50 6,753.50
3,082.00 960.00 6,164.00 7,124.00
Recommendation No. 2:
The State statute for Police simply requires a minimum payment by the City for an
Associate and Bachelor degree (as well as some other education not to exceed $130 per
month). This is not a cost that is reimbursed by the State similar to the Fire statute.
Since the City already offers an education incentive program that pays well above this
statute minimum requirement by allowing $1.00 per hour for an Associates degree and
$2.00 per hour for a Bachelor's degree, the State minimum amount should not also be
paid to the employees. This is a duplicate payment to the employees. The State
required minimum payment would be $89,340 and the City actually pays out $461,298 in
education supplemental pay. Therefore, the Budget Task Force would recommend that
the City cease paying the Police employees the "State Supplemental Education Pay".
Estimated Potential Cost Reduction- $89,340
This does not include the potential savings in pension plan costs.
Follow-up Action:
The City Manager provided his recommendations to the City Commission in a memo
dated September 8, 2008. He accepted the recommendation of the Budget Task Force
and stated that this would need to be negotiated in the PBA union contract. Finance met
with the Human Resources Director and confirmed that this recommendation will be part
of the current PBA negotiations (October, 2008).
E-mail issued January 27, 2009 requesting status of this item from Human Resources
Director. The City Manager responded that this recommendation is not being pursued at
this time.
Recommendation No. 3:
The City should consider changing all policies and union agreements to present a fixed
rate per month instead of an hourly rate for both an Associates and Bachelor's degree.
This would ensure that all employees with an Associates Degree would have the same
annual benefit and all employees with a Bachelor's Degree would have the same annual
benefit. This would remove the education payments from the hourly rates which include
overtime factors. In essence, the education benefit should be a fixed amount for each
degree and should not fluctuate due to someone working overtime. The amount paid by the
City for the education supplement hourly rates above 2,080 hours is $49,458.
45
Total potential savings = 49 458
Follow-up Action:
The City Manager provided his recommendations to the City Commission in a memo
dated September 8, 2008. He advised the City Commission that the City Attorney has
informed him that this recommendation cannot be accepted since it would violate FLSA
regulations regarding the calculation of overtime. A fixed monthly amount must be used
in the calculation of overtime. No further action is required.
46
FAIR LABOR STANDARDS ACT (FLSA) TIME
Reference
FLSA Employees Leave Days Policy No. EB-2
Human Resources Policy Manual
Statement•
The Human Resources Policy Manual does not allow overtime or compensatory time for
exempt employees except under extraordinary circumstances.
Certain key employees that are exempt for overtime purposes are given FLSA days to
compensate them for the additional after-duty hours they work These days are not
allowed to be carried over into another year. Hours not taken are forfeited.
Findings:
Certain management exempt positions are receiving both overtime and FLSA time.
Position Overtime 2007 FLSA
Fire-Battalion Chief $7,742.17 $971.04
Fire-Battalion Chief 14,050.01 886.08
Fire-Battalion Chief 2,022.36 931.68
Police- Captain 2,971.81 1,121.84
Police- Captain 1,191.87 796.48
Police-Captain 2,330.69 1,505.04
Police- Communications Manager 13,849.98 500.32
Police- Communications Supervisor 504.17 612.00
Police-Lieutenant 2,523.21 1,147.44
Police-Lieutenant 190.05 1,529.92
Fleet Maintenance Superintendent 515.16 588.64
Street Superintendent 2,915.57 613.76
Construction Superintendent 1,853.99 717.60
Totals $52,661.01 $11,92L84
Recommendation:
The Budget Task Force would recommend that the City not allow overtime-exempt
employees to be paid for overtime except in emergency situations such as hurricane
recovery time. If this is not feasible, these positions should be removed from the FLSA
eligibility list. If employees are allowed to receive overtime or comp time in lieu of
overtime (other than emergency situations), they should not be eligible for FLSA time.
Estimated Potential Cost Reduction- $52,661
47
Follow-up Action
The City Manager provided his recommendations to the City Commission in a memo
dated September 8, 2008. He stated that the Street Superintendent and the Fleet
Superintendent were issued overtime contrary to policy and that this has been corrected.
The Communications Supervisors are non-exempt and should not have been listed. The
remaining positions all had justifiable overtime due to their special circumstances. No
further action is required.
48
TUITION REIMBURSEMENT PROGRAM
Reference
Employee Development and Training Policy (No.GA-39)
IAFF Contract- Article 44 Compensatory Time and Tuition Reimbursement Program
Employees in the IAFF union may receive compensation time not to exceed 72 hours for
off-duty education or training as authorized and approved by the Fire Department in lieu
of tuition reimbursement (see "Absence with Pay-Away with Pay")
Findings
In 2007, there were 58 employees in the tuition reimbursement program. The total cost
to the City for this period was $121,113.
Of these 58 employees, there were sixteen (16) employees being reimbursed tuition for
Master's Degrees at a total cost in 2007 of $63,501 (52.43% of total tuition
reimbursement cost). There is no job description in the City that requires a Master's
Degree except for the Planning and Zoning Department. These degrees were either in
Organizational Leadership, Educational Leadership, Public Administration or Criminal
Justice.
Two (2) employees subsequently terminated their employment with the City.
Two (2) employees receiving tuition reimbursement are in the Deferred Retirement
Option Plan (DROP) Plan and are actually retired for pension plan purposes.
Eight (8) of these employees are within a few years of retirement eligibility.
There are currently 40 employees in the tuition reimbursement program. Of these there
are 15 in the Fire Department, 18 in the Police Department and 7 in other departments.
There are 15 employees taking a Master's Degree program (37.5%). Some of these
employees are taking 12-21 hours of courses in one semester. Some of these courses are
on-line computer courses. This number of hours is considered full-time enrollment in
college course work.
Tuition reimbursement is not an eligible cost for pension calculations but, by allowing
Fire employees to receive comp time in lieu of tuition reimbursement, comp time is
currently eligible for pension calculations.
Recommendation No. l
The Budget Task Force would recommend that the City review their policy on tuition
reimbursement and consider only reimbursing Associates and Bachelor's degrees that
pertain directly to an employee's present position or a position that they are potentially
qualified to be promoted to. This would eliminate all payments for Master's degrees and
Doctorate degrees since there are no job descriptions in the City requiring this level of
education (except for 2 Planning & Zoning positions- Masters).
49
Departments should monitor those employees taking substantial hours to ensure the
college course work is not being done on duty time (especially on-line courses) or that
the burden of this number of courses in a single semester is not impacting job
performance.
Estimated Potential Cost Reduction
Assuming the same level of cost as 2007 there would be a cost reduction of $63,501 for
eliminating the master's degree and doctorate degree reimbursement programs.
Estimated Savings- $63,501
Follow-up Action
The City Manager provided his recommendation in a memo to the City Commission
dated September 8, 2008. The City Manager stated that these advanced degrees have
been eliminated from the FY 2009 budget except for a few positions that may require
these degree levels and are needed for succession planning. Otherwise, the tuition policy
will be revised to ensure that it is consistent with the City's employee development
objectives and recognizes our financial limitations.
The Finance Director met with Human Resources to ensure that they carefully review
applicants for this program and not accept DROP applicants, applicants close to
retirement, and not accept advanced degrees.
The Tuition Reimbursement Policy (GA-39) was revised October 1, 2008. No further
action is required.
Recommendation No. 2
The City should not allow the substitution of compensatory time for tuition
reimbursement since compensatory time will have a fringe benefit factor applied to the
cost and will be allowed in the calculation of pensions whereas tuition reimbursement
would not be eligible for pension and is simply an expense reimbursement. Article 44 of
the IAFF union agreement is being misinterpreted. Paragraph A covers the tuition
reimbursement program and does not allow compensatory time in lieu of tuition
reimbursement. Paragraph B covers other Fire Department training and allows for comp
time if an off-duty employee is called in for this training.
Estimated Potential Cost Reduction
Unknown impact due to inability to document employee choice of comp time over tuition
reimbursement and impact on pension costing.
Estimate only- 25 000
Follow-up Actions:
Finance Department met with Dot Bast, Human Resources Consultant- Human
Development, to discuss and clarify policies and procedures regarding tuition
reimbursement. She is to contact Fire Department to clarify if there is any other
documentation approving comp time in lieu of tuition reimbursement.
50
LEAVE OF ABSENCE WITH PAY (AWAY WITH PAY, COMP TIME)
References
Human Resource's Policy Manual. Section 503
Administrative Policies and Procedures Manual- GA-36 Compensatory Time-Police
IAFF Union Contract, Article 31 Leave of Absence with Pay
IAFF Union Contract, Article 44 Compensatory Time and Tuition Reimbursement
PBA Union Contract, Article 16 Leave of Absence with Pay
NCF&O Contract, Article 17 Leave of Absence with Pay
In most departments of the City, Away with Pay time is used to account for activity away
from an employee's work site to include court time, jury duty, conferences, seminars,
conventions and other similar meetings which are to be approved by the City. In the Fire,
Police and NCF&O union contracts a similar explanation is given. The training,
conference, seminar or meeting must be approved by the Department Head and the City
Manager. Absence with Pay shall not be considered as time worked in the computation
of overtime. No overtime will be considered due to this benefit. However, there is also
allowance for overtime consideration if the training is for City business.
In the Administrative Policies and Procedures Manual, Policy GA-36, the Police union
personnel may receive compensation time in lieu of overtime at their discretion not to
exceed sixty (60) hours inclusive of the time and a half conversion.
In the IAFF Union Contract, Article 44, it appears that comp time may be received for
certain education/training not to exceed 72 hours.
Findings•
The total "Awav with Pav" costs for 2007 are as follows:
Department Hours 2007 Cost
City 1~~Ianager/PIO 253.5 $13,;43
Human Resources/IZisk Management 414.5 13,730
Cite Clerk 117.5 3,453
Finance 216.5 (,735
City Attorney 2.0 46
Administrative Services 82.5 3,277
Information Technology 489.0 16,677
Community Improvement 410.5 12,836
Police 15,791.5 408,800
Fire 15,124.8 434,2.12.
Planning & Zoning 136.0 5,557
Engineering 101.0 4,629
Public Works 458.0 7,976
Fleet Maintenance 357.5 8,791
Parks & Recreation 1,352.8 44,671
«'ater ck Surer 1,353.8 30,606
Total Costs 2007 36,661.4 $1,015,539
51
84.3% of the total hours in this category were in the Police and Fire departments.
There are 392 employees in the Police and Fire departments out of 821 total employees in
the City of Delray Beach. Therefore, Police and Fire represent 47.8% of the workforce
yet they are spending 84.3% of the Away with Pay costs. Most of the Away with Pay
costs for the non-Public Safety departments are seminars, conferences, conventions or
similar events although some hours are in-lieu overtime payments.
Therefore, the focus of the analysis is on these two areas (Police and Fire departments).
Police Department
A sample of employees in this department with significant Away with Pay is as follows:
Employee Hours 2007 Cost
Communications Supervisor 207.0 $6,065
Police Officer l~r Class 221.0 5,613
Police Sergeant 145.0 5,315
Career Officer 3 310.0 10,252
Career Officer 2 197.0 6,225
Career Officer 2 360.0 11,279
Police Sergeant 216.0 8,174
Police Sergeant 185.0 6,768
The Police Department was given this listing and they replied that most of this time was
overtime and the employee chose "Compensatory Time" in lieu of overtime in order that
they could have additional time off. The total cost of Away with Pay time for the Police
Department was $408,800.
Fire Department
A sample of employees in this department with significant Away with Pay is as follows:
Employee Hours 2007 Cost
Assistant Fire Chief- exempt 189.0 $10,506
Paramedic Lieutenant 280.5 9,620
Firefighter 455.0 11,339
Battalion Chief- exempt 387.0 15,472
Paramedic 379.8 8,596
Paramedic Lieutenant 418.0 15,545
Battalion Chief- exempt 542.0 20,183
Paramedic Lieutenant 276.0 10,266
Driver Engineer 467.2 12,787
Paramedic Lieutenant 402.0 13,206
The total cost of Away with Pay time for the Fire Department was $434,212.
52
A listing of employees with significant Away with Pay time was submitted to the Fire
Department. Responses were received on non-management employees that showed the
primary reasons were "Comp Time", "Union Time Pool", "Investment Seminars"
(Police/Fire pension plan investment seminars, and various training seminars). The comp
time is in lieu overtime. The union time pool costs are offset with contributed time from
union employees. The individuals on the pension board attending the investment
seminars are allowed up to 10 shifts off for these seminars per the directive of the Fire
Chief. This would represent 240 hours of time off for investment seminars unrelated to
their Cit~iob as a Paramedic Lieutenant and could present part of the overtime needed
for minimum manning.
Fire management employees are exempt employees. However, these employees are
charging overtime and comp time. We were advised that Fire management employ
keep their own comp time records. Management employees are allowed to have
unlimited comp time banks but they do not get paid for these banks at termination. Their
comp time is overtime straight. The fringe benefit factor applied to overtime is basically
only 7.65% (FICA) and this cost is not eligible for pension. Overtime is not part of
earnings in the calculation of pensions. Away with Pay time is considered re ugular paX
and is eligible for pension. Therefore, employees are increasing their potential future
pension earnings by electing Away with Pay time (Comp Time) in lieu of overtime.
Observation No. l
This would appear to be a payroll coding problem. Away with Pay time was originally
set up to account for time on City business away from the City. Compensation Time
(payment in lieu of overtime) should be separated in the payroll system from Away with
Pay (seminars, conferences, jury duty, court time). Actual City overtime costs are being
hidden because comp time is showing up as regular pay in the financial s,, s
Observation No. 2
Overtime is paid at time and a half times an employee's regular rate of pay. Overtime
carries a fringe benefit factor of 7.65% for social security. There is no fringe benefit
factor for pension, health insurance, life insurance or other benefits on overtime since
fringe benefits are generally based on regular pay only. Regular salary carries a full
fringe benefit factor of 60%. Therefore, it would appear that overtime costs could be less
cost to the Cit~paid as overtime (7.65% fringe) and not taken as comp time since comp
time is paid as regular salary with the full fringe benefit cost (60%).
Observation No. 3
In most cases involving shift employees in the Police and Fire departments, if an
employee takes time off another employee is called in to take their place on shift duty.
Therefore, if one shift employee takes time off for comp time, another employee will be
called in to take their place on shift and this would be overtime to that employ
Therefore, it would appear that overtime costs could be reduced b~payin~ the overtime
costs and not allowing comp time.
53
Observation No. 4
Comp time (limited to certain maximum allowances) can also be paid out at termination
and, since it is considered as Away with Pay, this would be included in final pension
calculations. Therefore, it would appear that overtime costs should be paid as overtime
which is not eligible in pension calculations as opposed to comp time which is eligible
for pension calculations. Pension costs for Police and Fire also have cost of living
adjustments each year.
Example: Police Officer Comp Time
Scenario #1
Assumption: Police Officer A is an officer with a bachelor's degree at Step 5 with an
hourly wage rate of $27.90. He works 8 hours of overtime in a pay period and requests to
be paid for the 8 hours of overtime. The fringe benefit rate on overtime is 7.65% (social
security or FICA). This overtime amount will not be included in pension calculations.
Payroll Cost - $27.90 x 1.5 x 8= $334.80 salary + 7.65% fringe ($25.61) = 360.41
Scenario #2
Assumption: Police Officer A is an officer with a bachelor's degree at Step 5 with an
hourly wage rate of $27.90. He works 8 hours of overtime in a pay period and requests
comp time (12 hours) to be taken in the following month. The fringe benefit rate on
comp time is 53%. This amount will be included in pension calculations even though it
is essentially payment for overtime worked. No replacement employee is needed for
minimum manning requirements of the Department.
Payroll Cost - $27.90 x 12= $334.80 salary + 53% fringe ($177.44) = 512.24
This represents a 42.13% increase in payroll cost over Scenario #1
Scenario #3
Assumption: Police Officer A is an officer with a bachelor's degree at Step 5 with an
hourly wage rate of $27.90. He works 8 hours of overtime in a pay period and requests
comp time (12 hours) to be taken in the following month. The fringe benefit rate on
comp time is 53%. This amount will be included in pension calculations even though it
is essentially payment for overtime worked. A replacement employee (Officer B same
pay grade) is needed for minimum manning requirements of the Department. This
employee cost will not be included in pension calculations.
Payroll Cost -
Officer A- $27.90 x 12 = $334.80 salary + 53% fringe ($177.44) _ $512.24
Officer B - $27.90 x 1.5 x 12= $502.20 + 7.65% fringe ($38.42) _ $540.62
Total Payroll Cost = 1052.86
This represents a 292 % increase in payroll cost over Scenario #1
54
Recommendation No. l
Change the payroll code ("Away with Pay") for overtime that is not directly paid
and is taken and paid as comp time. Away with Pay should only be for when an
employee is away from his work station due to seminars, conventions, conferences or
other training event.
Recommendation No. 2
Overtime should be paid for in the pay period it is worked and not allowed to be
taken as comp time. The payment of overtime is less expensive than taking comp time
because of the fringe benefit applied. By allowing the use of comp time, the department
reduces the number of budgeted productive hours available to an employee.
Assuming 75% of Police and Fire charges to Away with Pay is actually overtime, 75% of
$843,000 is $632,250 that would no longer be eligible for pension calculations and would
not have the full fringe benefit costs applied, only FICA.
While this would not save any pension costs in the current budget, it would be a direct
savings to pension plan costs in the future at some point or employees will choose to be
paid for their overtime and work the time they normally would have taken off (increasing
productivity). If overtime is not eligible for pension then comp time (in lieu of
overtime) should not be considered eligible for pension. It is actually cheaper to pay
the overtime and not allow comp time in lieu of overtime.
$632,250 x 75%= $474,188 per year
Follow-up Actions:
The City Manager responded to these recommendations in a memo to the City
Commission dated September 8, 2008. He recommended that the payroll code for comp
time be established separate from the Away with Pay code which is for seminars and
conferences. He stated that comp time should not be considered as time worked for the
calculation of overtime. This will have to be bargained with the unions.
The Finance Director met with Human Resources to clarify that comp time should not be
allowed as a substitute for tuition reimbursement since this is not stated in the union
article on tuition reimbursement.
The Finance Director met with Human Resources to ensure this recommendation is being
addressed in our current impact bargaining session with the PBA.
The City Manager issued a memorandum to Department Heads dated October 31, 2008
stating that a new payroll code will be set up for comp time (CT). It further stated that
comp time will be considered for pension calculations but will not be considered as time
worked in the computation of overtime. No further action is required.
55
MECHANIC CERTIFICATION BONUS PAY
Reference•
Article 11 (Wages) Section 4.of the NCF&O, SEIU union contract covers certification
pay for mechanics in the union. They receive 5% of gross pay per pay period for 3
Automotive Service Excellence (ASE) Council certifications, 10% for 6 certifications,
and 15% for 10 certifications. These certifications must be kept current in order to
receive these certification bonus payments for the pay period.
Employee /Position
% 2007
Certification Pav
Fleet Su~~erintendent (Exempt) 15% $9,099
Senior Master Fleet Technician 15% 8,892
Master Fleet Technician 15% 5,947
Master Fleet Technician 15% 7,008
Senior Fleet Technician 15% 8,163
Senior Fleet Technician l0~Ic 4,680
Fleet Mechanic 15% 4,975
Fleet Mechanic 10% 3,521
Fleet Mechanic 0% 0
Fleet Mechanic 0% O
In an interview with the Fleet Superintendent it was determined that the employee
certifications are monitored on a current basis. Employees with expiring certification
deadlines are notified in advance of their expiration dates and given the opportunity to be
retested and recertified.
The Job Description for the Fleet Superintendent requires ASE certifications (15) as part
of the qualifications for the position. The Fleet Superintendent is not a union employee
and is exempt from overtime. There does not appear to be any policy or memo
authorizing the Fleet Superintendent to receive certification pay in addition to his salary.
It is recognized that, if this certification pay is not allowed, the earnings of the Senior
Master Fleet Technician would exceed the earnings of the Fleet Superintendent.
Recommendation No. l
This union article should stipulate that this certification pay is a bonus payment and is not
eligible for pension calculations. This will clarify any future misconceptions regarding
this issue.
Recommendation No. 2
The union agreement should be changed to a fixed monthly amount for certifications in
lieu of an hourly rate so that all certifications receive the same amount and do not change
due to overtime hours.
Estimated Potential Cost Reduction
Fixed monthly rate for certifications (eliminate overtime factor) _
56
Follow-up Actions:
The City Attorney has issued the opinion that we cannot avoid putting certification pay
into the hourly rate for overtime due to FLSA regulations whether it is paid hourly or
monthly. No further action required.
57
SICK LEAVE PAYOUT AT TERMINATION
Reference•
Human Resources Policy Manual- Section 403 Sick Leave
IAFF Union Contract- Article 17 Sick Leave
IAFF Lifeguard Union Contract- Article 17 Sick Leave
NCF&O (SEIU) Union Contract- Article 16 Sick Leave
PBA Police Union Contract- Article 15 Sick Leave
Sick leave is allowed to be accrued at 8 hours per month for 40 hour non-shift employees
or 9.6 hours per month for 48 hour shift employees. Sick leave payout at termination per
the policy is as follows:
Years of Service ~7c of Accrued Sick Leave to he Paid
0-5 -0-
5-10 25% of up to 560 hours (672 shift)
10-15 50cIo of up to 560 hours (672 shift)
15-2U 75~~c of up to 560 hours (672 shift)
20 or more 100~~c of up to 560 hours 672 shift)
20 or more (retirement) 100c1o of up to 1,120 hours (1,344 Shift)
Sick leave shall be forfeited upon discharge or employee not in good standing at the time
of termination. The City must record the liability for accrued sick leave at year-end
nhcervati~nc
If exempt employees are being allowed comp time, they can take comp time for illnesses
and continue to accumulate sick leave which they will be paid for at termination. This
would be another reason to eliminate comp time for exempt employees.
Employees are being allowed to accrue sick leave in excess of the maximum payouts.
Some of these employees are using this excess to donate to other employees in need of
sick leave time due to serious illnesses. This would mean that the City actually paid for
sick leave in excess of the maximum while the employee was an active employee.
There were five (5) individuals that were paid sick leave in excess of the maximum limits
set in the policy in 2007. The payment was 1 days pay for 5 days of excess sick leave
above the cap or 20% of their excess sick leave. ICMA originally authorized a policy but
the IRS changed this policy not allowing acash-out alternative.
Position Payment
Parks & Recreation Director $2,599
Police Captain 7,326
Assistant Fire Chief 5,574
Police Major 6,553
Police Captain 7,007
Total Cost $29,059
58
As of September 30, 2007 there were 42 employees with sick leave in excess of the
maximum of 1,120 hours and 5 Fire shift employees in excess of the 1,344 hours. If
these employees were paid 20% of their excess sick leave at termination it would cost the
City $118,201 at this time. This total will increase over time until the employee is
eligible for retirement and finally terminates employment.
Recommendation No. l
All union agreements and the Human Resources Policy Manual should stipulate that sick
leave payouts are bonus payments and are not eligible for pension calculations to clarify
any future misconceptions.
Recommendation No. 2
Sick leave should be capped at the maximum payout limits of 1,120 for non-shift
employees and 1,344 for shift employees and any accrual over this amount would be
automatically forfeited similar to the way vacation time is handled and an employee
should not be allowed to accumulate hours above these maximum caps.
Recommendation No. 3
Donated sick leave should be taken from the maximum cap and not from excess sick
leave above the maximum cap that would not have been paid for by the City.
Recommendation No. 4
In no case should an employee be paid for any sick leave in excess of the maximum of
1,120 hours (1,344 shift employee).
Estimated Potential Cost Reduction
20% of excess sick leave bank at September 30, 2007 = 118 201
Follow-up
The City Manager responded to these recommendations in a memorandum to the City
Commission dated September 8, 2008. In this memorandum he recommended that the
payroll system be changed to put a hard cap on sick leave. This would mean that there
would be no further sick leave accrual once an employee reached the cap. The City
Manager also recommended that an employee that presently exceeds the cap be allowed
to take those hours if needed. This would mean that the Finance Department is going to
have to maintain some manual record of those individuals that are currently in excess of
the cap.
The City Manager issued a memorandum to all department heads dated October 31, 2008
stipulating that there will be a cap on sick leave and employees cannot exceed the cap.
All existing employees may use their current excess sick leave to account for used sick
leave but will not be paid for this excess at termination. No further action is required.
59
VACATION LEAVE PAYOUT AT TERMINATION
Reference•
Human Resources Policy Manual- Section 502 Vacation Leave
IAFF Union Contract- Article 15 Vacation
IAFF Lifeguard Union Contract- Article 15 Vacation
NCF&O (SEIU) Union Contract- Article 15 Vacation
PBA Police Union Contract- Article 14 Vacation
Minimum Years of Service Normal Workday Fire Shift Employees
O 8 hours per month 12 hours per month
3 9.33 hours per month 14 hours per month
7 10.66 hours per month 16 hours per month
11 12 hours per month 18 hours per month
Maximwn Accrual 288 hours 432 hours
Observations
If exempt employees are being allowed comp time, they can take comp time instead of
vacation time which they will be paid for at termination. This would be another reason to
eliminate comp time for exempt employees.
Recommendations
All union agreements and the Human Resources Policy Manual should stipulate that
vacation leave payouts are bonus payments and are not eligible for pension calculations.
Estimated Potential Cost Reduction
This recommendation would not result in any projected savings.
60
RETIREE HEALTH INSURANCE TRUST FUND (VEBA)
Reference•
Article 48-A-FR IAFF Union Contract -Retiree Insurance
Article 43 PBA Contract- Retiree Insurance
Internal Revenue Code 501(c) (9)
Actuarial Valuation (Police and Fire Pension Plan) as of October 1, 2006
Background•
Effective FY 2002, the firefighters' union negotiated an agreement with the City to give
up a 2% pay raise in exchange fora 2% City contribution to a Retiree Insurance Fund.
This amount was later raised to 3.3% to recognize the savings the City would incur
(fringe benefits and taxes) by not paying the 2% salary increase. Effective FY 2006, the
police union negotiated an agreement to give them a 3.3% contribution to the Retiree
Insurance Fund. Each year the City continues to contribute 3.3% of base wages to the
trust. The Retiree Insurance Fund is a 501(c)(9) VEBA (Voluntary Employees
Beneficiary Association) trust that is administered by an employee association.
The Retiree Insurance Fund is administered by an independent board of police and fire
employees which retains their own independent actuaries, investment advisors and
financial auditors.
Recent Federal law changes allows for a retiree to receive a maximum $3,000 withdrawal
from the trust on a tax-free basis if payments are made direct to the health insurance
carrier from the trust.
A breakdown of City contributions to this retiree health trust is shown as follows:
Fiscal Year Fire Police Total
FY2002 $212,186 $-0- $212,186
FY2003 $213,230 $-0- $213,230
FY2004 $263,883 $-0- $263,883
FY2005 $269,400 $-0- $269,400
FY2006 $283,557 $213,328 $496,885
FY2007 $251,385 $248,140 $499,525
FY2()l)8 $338,520 $29(,503 $635,023
Note: FY 2007 (Fire) includes an adjustment for FY 2006
Observations•
The City agreement to offer a 3.3% contribution in exchange fora 2.0% wade reduction
with the difference beinc Citv savings on fringe benefits does not annear to be accurate.
In actuality the City only saves 7.65% FICA whereas the employee savings would be
FICA, pension contributions and income taxes which could total approximately 20%. In
addition, the IRS allows for tax-free withdrawals from the trust so the 2% funds are tax-
free (as opposed to tax deferred). The City pension contribution would not be impacted
61
since this contribution is fixed by the actuarial report of the previous year and is paid in a
lump sum.
The City cost is increasing each year since the agreement is tied to a percentage of base
salary. The Fire Department is increasing on average 10% per year and the Police
Department is increasing on average 19% per year. Part of these increases are positions
now filled that were previously open and part is due to the level of wage increases being
given to these employees.
In actuality, the average wage increase for both Police and Fire since 1977 has been 7.9%
which is 1.9% above their actuarial assumption which means that the pension plan has
been incurring an actuarial loss each year which translates to increased pension costs for
the City. To state that the Fire Department gave up a 2.0% across the board raise does
not take into account that they also received a performance increase of 0-5%.
We did receive confirmation that the Police Department did not ig ve up a 2% raise when
their 3.3% City contribution to the Retiree Health Trust started in FY 2006.
We also did not find any documentation to verify if Police and Fire non-union
management employees gave up a 2% raise when they were allowed to join in the 3.3%
City contribution to the Retiree Health Trust.
Police and Fire wage and salary survey comparisons with other municipalities and
counties do not include the fact that the City is contributing 3.3% of payroll to the Retiree
Health Trust.
Recommendation:
The City should consider changing the union agreements regarding the 3.3% City
contribution to the Retiree Health Trust to a fixed amount of 2.0% of the Police and Fire
base salary as of the year each started since the City savings on fringe benefits was not
realized and not allow an annual increase to this amount. This would mean that Fire
would receive $128,600 ($212,186/3.3% x 2) and Police would receive $129,290
($213,328/3.3% x 2) for a total of $257,890.
Estimated Potential Savings
Current City contribution of $635,023 less recommended $257,890 = 377 133
Follow-up
The City Manager responded to this recommendation in a memorandum to the City
Commission dated September 8, 2008. In this memorandum the City Manager
commented that the City is currently researching how our Police and Fire benefit package
compares to other entities. He wants the benefit package to be reviewed and revised as a
package and not as individual items. The unions would have to participate in this review.
This survey will be presented to the City Commission on February 10, 2009. No further
action is required at this time.
62
POLICE/FIRE PENSION COSTS
Reference•
Police/Fire Pension Plan Actuarial Report (Submitted July 17, 2007) for Plan Year Ended
September 30, 2006
Financial Trends Monitoring Report (November, 2007)
Background•
The City presently spends 37.03°Io of payroll ($5,608,475) for the Police/Fire pension
plan. The amount of cost for the City has been continually increasing over the past ten
(10) years as evidenced by the following:
City of Delray Beach Pension Plans
Employer Pension Cost as a Percentage of Payroll
0.40
0.35
0.30
m
m
y 0.25
d
n
.
~
w
0.20
c
d
m
0.15
d
a
0.10
0.05
0.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
tGEPP % 0.00 0.00% 0.00% 0.72% 2.70% 5.25% 9.74% 12.69% 12.39% 14.24% 13.90%
f PFPP % 11.59 % 8.97 % 12.84 % 15.29 % 18.96 % 21.93 % 28.57 % 30.87 % 34.48 % 37.03
63
The Police/Fire pension plan presently has an unfunded liability of $40,738,290 which
must be paid for over the next 30 years by the City. The plan has a funded ratio of 69.6%
whereas just 10 years ago this plan was 100% funded. This can be shown as follows:
(Note: Brackets signify overfunded condition)
Observations•
The chart shows a dramatic difference in unfunded liabilities between 2002 ($9.6 million)
and 2003 ($23.9 million). This is primarily due to the City approving the funding of a
3.5% multiplier from date of hire (all past service paid for by City) with the maximum
64
pension increased from 75% of average monthly earnings to 87.5% of average monthly
earnings. The previous multiplier was 3.0% for each year of service.
The Police and Fire Pension Board has taken a position that Fire certification pay should
be in the calculation of pension benefits although the City Commission and City Attorney
have stated several times that certification pay is considered a bonus and is not to be
considered in pension benefits. The Pension Board authorized a third party administrator
to include certification pay in pension calculations without City permission for retirees
prior to 2004. This has led to litigation which is unresolved at this time.
In 1999, the State of Florida passed legislation that added up to 300 hours of Police
overtime to the minimum benefits that the City is required to provide. The funding of
this benefit is supposed to come from premium taxes but this benefit conflicts with our
1993 Agreement which states that the premium taxes will be used solely for cost of living
adjustments to employees after 25 years from date of hire. This conflict has led to
litigation between the State and the City and is unresolved at this time.
The fact that Police overtime is to come from the pool of funds from premium taxes is
not going to be acceptable to the Fire employees who would see part of their COLA
funds going to Police benefits. Therefore, you could see the State take future actions to
include Fire overtime in pension calculations or substitute recommendations could be
made by the Pension Board or the Fire union.
It should be noted that Police and Fire employees can retire at any age with 20 years of
service. Employees hired in their 20's could retire in their 40's, as an example. Most of
the individuals in their 40's and 50's would be expected to be reemployed in other jobs
following their retirement from the City.
It also should be noted that the City also funds social security benefits for these
employees that they would not be able to draw until their social security eligibility date.
The State of Florida Retirement System also provides a retirement plan for police and fire
employees. It presently has a 3.0% multiplier with a 21% required City funding formula.
If the City were to join this fund, the City would lose its funding from the premium taxes
(approximately $1.5 million which would have to also be funded by the City.
The City cannot change the benefits for prior (past) service but can change the benefits of
future service. This change would have to be agreed upon by the unions.
Recommendations:
The City cannot afford to maintain a 60% of payroll fringe benefit factor for police and
fire. The City is presently losing significant property tax revenues, reduced State shared
revenues (gasoline taxes, revenue sharing, utility taxes, franchise fees), is approaching
buildout which means lower growth revenues from the new construction industry, the
downturn in the housing and real estate market, and the condition of the general economy
65
The single largest part of this fringe benefit percentage is the pension contribution of
37.03%. Investment performance in this Plan for their year ended 9/30/07 is expected to
increase the City contribution in the upcoming budget by $1.5 to $2.5 million. This could
mean that the City contribution to fund this Plan could exceed $7.5 million which is 7.5%
of the entire General Fund budget. This is not sustainable.
The Budget Task Force feels that it would be in the best interests of the City and the
police and fire employees not to recommend conversion to the State of Florida
Retirement System but instead to face the fact that, at a minimum, we have to reduce the
future service multiplier from 3.5% to 3.0%.
It would be recommended that all parties involved address this pension plan issue and
change the design of the benefit package to ensure the plan can afford to fund both
current and future retirees. These discussions should include minimum age at retirement,
employee contributions, service multiplier, administrative costs, as well as other plan
performance and costs.
Estimated Potential Cost Savings
The changing of the multiplier from 3.5% to 3.0% for future service is expected to save
between 2-4% of payroll each year. The latest actuarial report shows that payroll is
$15,143,925. Therefore, the estimated potential cost savings this year based on a 3% of
payroll average would be 454 318.
Follow-up
The City Manager responded to this recommendation in a memo to the City Commission
dated September 8, 2008. He recognized that this item would require concurrence with
the bargaining units and the State of Florida Division of Retirement and could possibly
impact our current litigation with the State.
The City is currently in litigation with the State of Florida over the issue of Fire
certification pay being included in pension earnings calculations and the issue of Police
overtime being taken from premium taxes that were, by contract, previously assigned to
cost of living increases to retirees. The City Attorney has recommended that this new
recommendation not be discussed until these litigation issues are resolved which should
be within the next few months (early 2009).
The City prevailed in the lawsuit with the State of Florida over the issue of Police
overtime being part of the pension plan retirement calculations and being paid for with
premium taxes. This essentially means, if court opinion is so documented, that the 1993
Agreement would override the 1999 changes made by the State. Therefore, all premium
taxes in excess of $504,000 would go toward retirement benefit enhancements (COLA).
No further action is required at this time.
66
OTHER PROFESSIONAL SERVICES
The Budget Task Force evaluated all departmental costs under the classification of
"Other Professional Services" (31.90 accounts). Since this account title is indicative of a
miscellaneous category, detailed research had to be conducted in order to determine what
services made up the total cost of $1,063,251. In addition, it is recognized that some of
these services have revenues associated with them. A breakdown of major costs for
Other Professional Services for FY2007 can be summarized as follows:
Professional Service Provider Service Provided Amount
Clty CO1i11111SS101]
Lyle Sumcck Goal scttin~ facilitator ~ l 5.646
ECIVIS. Inc. Grant access network 29.000
Lct Us Votc Political COnlnllttCC PAC eontrihution- PBC Charter
arncndmcnt rc: Municipal powers
31.000
Human Resources
Harry Hamilton Misc. personnel scrviccs 4.288
Public Information Office
BOCiI Raton EC{ll~atlOnal TCICVISIOn TOWn (~~t~l n1C(~la C'OVCr~I<~C -
Anderson Tclccom Cable relocation scrviccs -
Avenne Creatwe GI'OUp C0117putC]' C~CSL~~11- ECC~ CUp. G101'y
A«~ards
-
DB Charnhcr of COnlnlercC Conceptual dcsi~~n of new wchpa<~c 2.810
Citv Clerk
Buckingham. Doolittle PERC legal scrviccs
Sequoia voting Systems Official hallots
Global TranslatlonS TranslatlOn sCI'VICCS 980
Finance
SUnGUard Tt~E SoftW~ll'C serVICCS 3.275
Bank of America Banking scrvicc char~cs 7.563
Ampac Securih~ Products Coin safe 267
City Attorney
Clerk of Court Arbitration fccs -
Clcrl: of Court Court filin~~ fccs -
Williams Process 5crviee Process scrvicc fees -
Anderson ~ Carr Appraisal fccs -
Dcposits Contracts for sale and purchase 9,765
Information Technology
Midran~~e Support Upgrade to operating system -
Homnick Services Sharepoint training -
Dr. Wolff Prc-employment physical -
~Cf~ SOftwal-C Pension datC CXtraC'tlOn program 3.017
Police- Support Bureau
Psycholo<~ical Resources hlc. Psvcholo~ical scrviccs -
Clcrk of Court Escrow account fccs -
67
University of Central Florida Data sharin<~ consortium -
Dcccption Control Prc-cmploymcnt poly~~raphs -
Equifax Credit research sciviccs -
Laneuage Linc Scrviccs Proficiency tests -
lturan Monitorine of Tclctralc and
Lifctrak
33.864
Police Support Services
Laneuage Linc Scrviccs Proficiency tests 70
Police Operations
~hoICCPOInt Back<~rOUnd~AUt0 trackln<~ SCrVIC'C -
COlomal Bank TraelUn<~ -
COUntryWldC TraC1Un<~ -
Wachovia Bank Trackin<~ -
BMW Financial Scrviccs Tracking -
~~ ~lh Oo T rack I n <~ -
Accurint Trackin<~ 6.443
Police- District 1
Louis Vallalha Rcfercc fees- soccer tournament 210
Fire Administration
ChoiccPoint Back<~round chccla -
Thc JT Association Employment tcstin<~ -
Billion c~ Associates Prc-employment psychological test -
EMS Consultants Annual maintenance contracts -
Deccption Control Prc-cmploymcnt polygraphs 34 556
Fire Operations
Dr. Wolff Medical Director eontract 24.750
A..1. Gallaehcr Insurance on fire medical clinic l4.Ol l
Planning & Zoning
Qll~dlty Tr~ll1SpOI"t ShuttlC hU5 SerVIC'C ~-~c5',3~~
Delray Beach Downtown Markctin~~ Tram si~~ns 5.851
Charnhcr of Cornmcrcc Si~~ns. marl:crs 2.185
Urhan Dcsi<~n Beach overlay rcvicw fccs 3.000
Covclli Dcsien Plat rcvicw and development cons. 3.803
Executive Mannin~~ Corporation Coachin~~ fccs 8.400
Treasure COaSt RC<~lonal Plamlln~~ ArChITCCtUral C1CSI~~n I'CVICW 1 ~.~~~
McMahon Traffic plamling services 6?20
Community Improvement
1\9EP Electrical inspections Scrviccs 1.755
Engineering
REP Mold rcmcdiation Scrviccs 23.086
Ocean Rescue
Dr. Woolf Employment physicals 2.000
David Miller & Associates Lifc<~uard tower replacement 3.447
f~Vlronl LIfC<~llard tower I'CplacenlCnt 3.000
Parks Maintenance
68
South Florida Watcr M<~rnt. District Pcrmit application ficc 450
Tennis Stadium
JCD Sports- Payroll Tcnnis pro 5).)43
Tennis Centers
JCD Sports- Payroll Tennis employees 350.96
Miscellaneous
l.an<~tOn ~'z ASSOC'IatCS Grants ad17lllllStratl011 -~~.~)~~
Totals $1,OOt;,72t;
69
MEDICAL PROFESSIONAL SERVICES
Reference•
IAFF Union Agreement, Article 39 Physicals
NCF&O Union Agreement, Article 27 Physical Fitness
Ocean Rescue Union Agreement, Article 38 Annual Physicals
PBA Union Agreement, Article 26 Physical Fitness
The City of Delray Beach currently spends approximately $300,000 per year for the
current services provided by Dr. Wolff, M.D. at Fire Station No. 1. This would not
include the cost for the office space provided by the City and related costs of this space.
Dr. Wolff also charges certain employees with office co-pays that are his revenues and
are not recorded on the City's financial statements.
The services provided by Dr. Wolff include serving as the Medical Director, mandatory
employee physicals, new hire physicals, random drug testing, tetanus and flu shots and
other general medical services provided to employees and, in some cases, their
dependents. Prescription costs are borne by the individual employees.
Dr. Wolff is not part of the City's health insurance plan with Cigna since he does not
have a private office that serves the general public. Therefore, any costs for services,
outside lab work, or prescribed medications are not controlled through our normal health
insurance networks.
Contract No. 1 Medical Director
Dr. Wolff is the Medical Director and the City operates its paramedic services under his
medical license. The City must have a Medical Director to provide these services. The
City pays $2,229 per month or $26,750 per year for this contract.
Contract No. 2 Medical Clinic
The City currently spends approximately $200,000 annually on mandatory and non-
mandatory physicals, random drug tests, tetanus and flu shots, and other services. The
City also covers the professional services of the clinic with an insurance policy costing
$14,100. The current individual costs for specific procedures are as follows:
Procedure Cost
PhySl~al Fxam ~ I 15.00
Nc~t Hirc Physical I x-}.00
Ncw Hirc 1\9R0 Fcc ~. l7
Lah Tests ?30.00
Hepatitis C Test 02.61
HAZlllat Lahr 172.50
PSA Test 57.50
Drug Tcst l 15.00
Heavy Metals 172.50
Lead 30.00
70
PPD 8.62
TCttlIlL1S ~ 7.25
HC~YltltlS B VaCClI1C 39.~)~
Stress Tcst 3-~~.00
Chcst X-ray 149.50
MRO Fcc 10.3
Flu Shot 20.00
Observations•
The City pays 100% of the employee health insurance premiums for all City employees.
This amount is charged to departments and the resultant revenue is transferred from that
particular fund and deposited into the Insurance Fund each year. In the Insurance Fund,
health claims and administrative costs are deducted from these revenues and the fund
retains any profits or losses on an annual basis.
The City is also paying 100% of the costs of union employee physicals, laboratory fees,
blood tests, and vaccinations being conducted in the Fire clinic amounting to
approximately $200,000 each year. If these procedures were conducted by eligible
primary care physicians and not the clinic, the costs would be charged to the Insurance
Fund and the employee would pay office visit costs and co-pays. By having the clinic do
the procedures, the costs are borne 100% by the City. Departments are being charged for
both the cost of the employee health insurance premiums and the services performed by
the clinic.
Police Department
Medical services budgeted for clinic = $82,250
Employee health insurance premiums charged to department = $1,661,110
Fire Department
Medical services budgeted for clinic = $134,780
Health insurance premiums charged to department = $1,090,010
Recommendations
The City should not be paying for 100% of the employee health insurance premium and
then allowing the health procedures to be conducted in the clinic which is also paid for by
the City. This is a duplication of charges to the City. If the clinic is to be maintained, the
costs incurred by employees should be charged to the Insurance Fund and applied against
the premium revenues paid for by the City. Since the health insurance experience in the
Insurance Fund has accumulated profit balances since FY 2003 when the City first
became self-insured, there should be no impact on premium costs. The health insurance
profits for the current plan year were $627,000.
Estimated Potential Cost Reduction
Transfer costs of employee procedures performed by the clinic to the Insurance Fund
(excluding the cost of new employee physicals) and pay for these costs from accumulated
profits in the Insurance Fund = 200 000
71
Follow-up
The City Manager responded to this recommendation in a memorandum to the City
Commission dated September 8, 2008. In this memorandum, the City Manager
concluded that by transferring these costs to the Insurance Fund health claims account,
the ultimate costs for health premiums would increase and the departments would be
charged more. Therefore, he feels that we would be exchanging one cost for another. In
addition, since the Police and Fire physicals are more extensive that other employees, he
wants the costs to continue to be reflected in their respective departments. No further
action is required.
72
SHUTTLE BUS SERVICE
Reference•
Purchase Order No. 647518 Quality Transport Services, Inc.
Background•
The City of Delray Beach runs a downtown roundabout shuttle bus service at no charge
to the public. The contract is with Quality Transport Services (P.O. 647518). These
services currently include three (3) buses. Their schedules are as follows:
• Route 1A- Weekdays from 6:30 am to 7 pm (60 hours per week). This route starts
at the Tri-Rail Station, north on Congress to Atlantic, and east on Atlantic to the
Beach and then returns by the same route. This pickup is every 30 minutes.
• Route 1B- Weekdays from 7:00 am to 9 pm, Saturday from 10 am to 8 pm, and
Sunday from noon to 8 pm (85.5 hours per week). This route starts at the Beach
(Marriott Hotel), west on Atlantic to Congress, and south on Congress to the Tri-
Rail Station. On weekends, this route assumes Route 1A. This pickup is every 30
minutes.
• Route 2- Weekdays from noon to 10:30 pm, Saturday from 10 am to 8 pm, and
Sunday from noon to 8 pm (68.0 hours per week). This route starts at the Public
Library and goes east to the Beach and returns. This pickup is every 20 minutes.
This service costs $8,219.75 per week for the 3 buses or an annual cost of $429,071
($8,219.75 x 52.2 weeks). The City pays a cost of $38.50 per hour for each bus.
Observations•
The actual riders for the most current past four (4) weeks (W/E 4/20, 4/27, 5/4, 5/11) and
the computation of average riders/hour, average riders/pickup, and the average per rider
cost per hour is as follows:
Observations
The total contract for this service for three (3) buses could exceed $430,000 per year.
This amount could equal the cost of ten (10) full-time employees The City presently
73
receives $175,000 (50°Io of the cost of 2 buses), $60,000 from FDOT per year for Bus #3,
$30,000 from Palm Beach County for Bus #3, and $30,000 from the CRA for Bus #3
totaling $295,000 to offset some of the costs of the $430,000 shuttle bus service costs.
This would leave a net cost of $135,000 as the net cost to the City. The present contract
with Quality Transport Services expires January, 2010. Therefore, the question is what
value (benefit) is the City getting for this cost (cost benefit analysis)? Several factors
need to be addressed as follows:
• If the determination of the number of riders is solely dependent upon the reports of
the service providers, can the data be relied upon since they would have a vested
interest in seeing that the service continues
• If the primary pick-up point is Tri-Rail, how many of these riders are City residents
vs. non-residents
• If the riders are primarily non-residents, the present budget constraints would
assume to require that the City attempt to maintain as many employees and basic
services as possible for City residents
• Does the City find that four (4) riders per pickup is an acceptable rate for the cost
of the service
• Does the City find the cost of approximately $4.00 per rider per hour an acceptable
cost of the service given the distance from the Tri-Rail Station to the Beach or
from the Library to the Beach
• If we are averaging four (4) riders per pickup for 3 buses, can the number of buses
be reduced to increase the number of riders per pickup and reduce the cost per
rider per hour without losing the funding from other sources
• Is the overall cost of this service vs. the results more valuable than the cost of ten
(10) full-time employees ($43,000 per employee) that provide basic services to
our City (2-3 full-time employees after considering external contributions)
• Are there any other funding alternatives available that could reduce the net City
cost
• If one of the primary purposes of the shuttle is to eliminate the need for parking in
the downtown area, have the new parking garages in the downtown area (OSS
parking garage, Federspiel parking garage, County parking garage) eliminated the
need for the shuttle
• Could the net City cost increase with the current escalation of gasoline costs
• Could the proposed County complex redevelopment project impact a decision on
the shuttle service
Recommendations:
The Budget Task Force should defer a decision on the shuttle bus service at this time due
to the following reasons:
1. The present contract does not expire until January 2010
2. The utilization of the 3 buses needs to run through the winter season to fully
measure an annual calculation of performance
3. The City is presently in discussions with Palm Beach County over a major
redevelopment project on Congress Avenue that impacts our goals for the
development of the Congress Avenue corridor, the development of the Delray Tri-
74
Rail site, additional parking and other areas which may have an impact on the
decisions of the Budget Task Force.
4. The present cost of gasoline may have an impact on shuttle utilization over the
next several months
Estimated Potential Cost Reduction
$-0- estimated savings at this time.
Follow-up
The City Manager responded to this recommendation in a memo to the City Commission
dated September 8, 2008. In this memo, he concurred with the recommendation to defer
any position on this cost at this time. No further action required.
75
VEHICLE WASHING/DETAILING
The Fire Department currently spends approximately $500 per month to have their trucks
detailed (exterior only) by Spotless Image Auto Detailing. This includes fire trucks,
rescue trucks, utility trucks, ladder trucks and Ford Expedition (Assistant Fire Chief's
vehicle). This represents $6,000 annually. In addition, $3,030 budgeted for truck soap,
chamois, pails, brushes presumably for truck washing.
The Garage currently spends approximately $18,600 per year to have City fleet vehicles
detailed by Barrett's Mobile Detailing. The Garage Superintendent states that each
vehicle is detailed 2 times per year. This detailing also includes putting insignias and
decals on cars and removing the same insignias and decals when the car is either turned
in (leased cars) or sent to auction.
Departments spend approximately $6,000 per year to have their departmental vehicles
washed and waxed.
Total cost of detailing and washing of vehicles = $30,600
Recommendation No. l
Fire Department employees should detail their trucks as part of their routine maintenance
responsibilities and save the costs of external contractors detailing their vehicles
Recommendation No. 2
City employees should detail their own take home vehicles as part of their maintenance
responsibilities and save the costs of external contractors washing and detailing their
vehicles
Estimated Potential Cost Reduction
$1,000 per month x 12 months = 12 000
Follow-up
The City Manager responded to these recommendations in a memo to the City
Commission dated September 8, 2008. He stated that the Police and Fire departments
have reduced the number of times that their vehicles are washed and detailed by outside
contractors. He recommended no further change to internal policies. No further action
is required.
76
INSURANCE BROKER COMMISSIONS
Reference•
City prepared spreadsheet on current year property/casualty premiums and commissions
A.J. Gallagher Proposal of Insurance dated June 10, 2008
Background•
The City of Delray Beach presently insures its property and casualty coverage through
A.J. Gallagher (Broker) for a term from June 1, 2008-June 1, 2009. The excess property
policies are from 6/20/08 to 6/01/09. The City has $192.7M in insurable values and has
policies covering $SOM of that total value. Therefore, the City is covered for the lit
$SOM in damage from a single event. This coverage is broken down into $25M for the
Water Plant and $25M for all other City property. This coverage, premium cost, and
commission costs can be summarized as follows:
Coverage Carrier Net Premium Commissions
Package Policy
Property `~ I rn Prinecton (PESLIC) X283,100 X70,775
Casualty Princeton (PESLIC) 238.950 59.738
'Total Packa e Policv $522,050 $130,513
Excess Property Cc-verage
X911] L'l'C'L'ss Ot ~ I nl Lcxln`,*ton ~5-}9,~-}() ~~?.-}7~j
511] Cl'CL'ss Ol ~ I})Ill ~~a~ ~pL'Clalt}' ~2.~1]1 9=},~})U 1-}.~2n
)_,~IIICIIIIaI'k ~2'S111 9-}.BOO 16.9O
1 OIll C~CCss Ot `~ 15111 VV~I stL}1CStCI' X5111 9-},BOO 1 -}.22O
EnC}UCaI]CC 511] 9=}.x'00 }.590
'Total Excess Property $929,0411 $144,096
Other Property Coverage
Water Plant `~i2~}Vl ACC AI]]CI~ICan ~23=},~~~~ ~2 1 .~n}~
Boiler and Machinery Hv~tford 13.405 3,352
Excess Crime H~u~tford -},089 818
Accidental Death, cte. Hv~tford 18.693 2.804
'Total Other Pro ~erh'/Casualh' $270,S15 $28,=474
Total Property/Casualty $1,721,905 $303,083
These policies have certain coverage with certain self-insured retentions (SIR) or
deductibles:
Crime - $500,000 coverage, $50,000 SIR per occurrence
Worker's Compensation, statutory limits with $500,000 SIR per occurrence
Employer's Liability, $1,000,000 coverage, $500,000 SIR per occurrence
General Liability. Auto Liability. Public Officials. Police Professional
$1,000,000 per occurrence with $3,000,000 aggregate and $500,000 SIR per occurrence
77
$5,000,000 excess of underlying or $1,000,000 SIR whichever is greater
Water Plant- $25,000,000 property coverage with $25,000 SIR for Contractor equipment
or $50,000 SIR per occurrence, 5% SIR for named windstorm
Other PropertX- $25,000,000 property coverage with a $75,000 SIR per occurrence or
$500,000 for a named windstorm
Observations•
A.J. Gallagher is the retail broker for the City of Delray Beach renewal and will receive
a total commission of $201,663.
Risk Placement Services is the wholesale broker for the City of Delray Beach renewal
and will receive a total commission of $101,420. Risk Placement Services is owned by
or affiliated with A.J. Gallagher.
The total commission ($303,083) is approximately 18% of the net premium payment.
The Risk Management Division recently sent out Request for Proposals for insurance
brokerage firms. These proposals are presently being evaluated.
Recommendation:
1. The City should evaluate the possibility of a fee-based broker as opposed to a
commission-based broker. Consideration must be given to the ability of the
broker to secure appropriate coverages in a "tight" market.
2. The City should evaluate the possibility of a broker that also handles the Third
Party Administrator function for claims administration. Consideration must be
given to the fact that the current TPA, Gallagher Bassett Services, has all the
historical files, medical records, and relationships with current claim recipients.
Consideration must also be given to legal representation and coordination with
our City Attorney on sensitive claims such as Police-related claims.
Potential Cost Savings
The City should be able to reduce commission costs by 175 000 based upon recent bids
received from multiple brokers.
Follow-up
The Risk Management Division bid out brokerage services for the City's property and
casualty policies. The City Commission awarded the brokerage services to Plastridge
Agency at a fixed 6% commission rate and saved approximately $175,000. This will take
place upon our upcoming renewal deadlines. No further action is required.
78
OTHER CONTRACTUAL SERVICES
The Budget Task Force evaluated all departmental costs under the classification of
"Other Contractual Services" (34.90 accounts). Since this account title is indicative of a
miscellaneous category, detailed research had to be conducted in order to determine what
services made up the total cost of $1,524,441. In addition, it is recognized that some of
these services have revenues associated with them. A breakdown of major costs for
Other Contractual Services for FY2007 can be summarized as follows:
Contractual Service Provider Service Provided Amount
Citv Commission
Alexander Group Legislative representation X60.000
National Research Ccntcr National citizen's survey 9.500
Artemis Stratc<~ics LLC: Federal lohhyin~~ scrviccs 30.6-15
Coletta & Co. Creative City collahorativc exp. l3?68
Alcaldc and Fav LTD Lohhyin<~ services 30.035
Kathleen Daly Lohhyin<~ scrviccs 3.527
Pollacl: Communications Speeches for Mavor (~) 700
Toward a Morc Pcrfcct Union Study circle ? 1.750
Can We Talk, lnc. Translation scrviccs (Creole) 1.205
City Manager
Phantom ShoppCi'S E171ployCC serVICCS SLII'VCy c~'.700
Hwnan Resources
Florida Motor Vehicles Motor vehicle re<~istration check b59
Public Information Office
Various Translation scrviccs for radio 2.130
POll~lck Commumcatlons Hometown C<)nnCCTIOn newsletter ~ c5'.262
HBL Media Limited Sponsorship of ICMA TV 19,500
Finance
SunGuard HTE Fixed asset adjustment on iSerics =127
City Attorney
CUlll~~an WatCi' serVlcC and cOO1Ci' I'Gltal X90
AIaI'nl Pill-tners LLC FII'C alal'nl 171on1t01'In~~ ~lnd SCrVICC 1.033
Administrative Services
Cintas Firc Protection Firc exti^<~uishcr selvices 4~7
Fo<~cl dha EnviroFresh Air fi~cshencrs in ladies rooms I I5
Professional Golf Car Corporation Equipment rental 290
Re<~cncy Party Rental Sta~~c rental for Haitian Fla~~ Day 4b8
BMI Music license a~recmcnt 567
Sesac ML1sIC 1lcL'nse a~~l'een]L'nt 791
Clean and Safe Program
GK PI'CSSLII'C Cleanln~~ Pressrlre clCanln~~ downtown c~'. 100
Puhlic Works Mctcr installation fcc- irrigation 5.375
Hartzell Construction Graffiti abatement- Veterans Park 6.120
79
Information Technolo v
Qscnd Tcchnolo<~ics Fixed asset adjustment on iscrics 7.535
An,erictn, SCCUCIty AlaCn1 SystCnls Alarm 11,OmtOCll,<~ sCCV1CC 300
Police- Su ~ port Bureau
Harry Maxime Landsclping scrviccs 6.900
RCC ConSLlltantS FrCCIUCnc}~ 1'Chandln~~ consultant l .2 l0
Soundcom of S. Florida Sound system in P.D. (music) 2.856
Standard & Associates NSLST items- Captain's exams 1.250
Maximum Sccurih~ & Alarm Cat =~ cahles 1.600
Do«-n Under Tank Testin~~ Hydrostatic leak detection tests 480
Florida Police Chiet°s Publications NFLST test and study ~~uides 2.010
Police- Su ~ ort Services
E17lCCgC]1CV COIl,nllllllcatlolls Addlt1011a1 1lllnlltCS t0]' COdC RCd 4.975
Police O aerations
Actlon Lab01' Of F101'Ida SC'hool crOSSln<~ ~~Uitrd program 2l 1,785
Whcclhrator of North Broward Evidence destruction 389
Police- District 2
Maximum Security & Alarm Alarm n,onitorine- Auburn Trace 18
Fire Administration
Dcvcon Security Alarm rnonitorin~~ for Firc stations 3.95 I
First Advanta<~c Backeround chccla- Lifc<~uards 245
Fire-Highland Beach
Devco^ Security Alarm monitori^<~ for Firc station 655
Advanced Data Proccssine EMS hilli^<~ and collection agency 54.493
Gateway EDI Electronic claims scrviccs 1,634
ETS Environment Prc-demolition asbestos surveys 1.125
Planning & Zonin
SunGuard HTE Correct applications on iscrics 2.013
G&K scrviccs Office cleaning scrviccs 384
Suildin Ins ection
~i~~K ~CI'VICCS OthCC clC~lnln<~ sCI'VICCS -~ l
Code Enforcement
Simo^ & Schmidt Service as Codc Enforce. Officers 1?75
Seitcl'est TItIC TItIC SCarchCS- UnSafC hOUSIn~~ l .625
Streets Maintenance
Florida East Coast Railway Strcct maintcnancc and repair 6.292
Traffic O aerations
CSX Railway Traffic signal maintcnancc 4.375
Florida East Coast Railway Pv'kin~~. beautification. traffic 13.563
Bob's Barricades Traffic maintcnancc 650
Street Li~htin
Municipal Lighting Systems Upgrade lighting 6.250
Parkin ~ Facilities
Acculitte PAI'kIn<~ ParlUn~~ and Valet SCI'VICCS lU.215
QllalltV Tr~lllspOl"t Mitlnten~lllcC p~ll'lUng <~itra~~CS 57.535
g0
f~dVanced F11'e c~ SCC'Lli'ITy Inc. A~iII"Ill -1lalntCn~ll1CC 408
BOAI'd Of COUnty COnlnlISSIOnC1'S PaI'~Un~~ ~~~1ra~~C SCd1i'ITy ~ ~.~ ~
Pal'klll`~ I" 1'0~ CoLll'ThoL1SC {~al'a~~e pLll'~lllf? 8.73-~
Flol'lda FIST CotlSt Rallw'a}' Pal'klll`~ and h'attlc SCI'~'l~L'ti -G,~)~)~)
Buildin ~ Maintenance
Alai"Ill C~Uh.C'Onl Momtol' ~lnd 1'Cpalr anal"nl SySTCnIS ~.)~~~~
Oracle Elcvator Scrvicc Elcvator service 952
Arrow Extcrminatin~ Extcrnlination scrviccs 353
DCVcoll Security Firc inspections 565
Parla/Recreation
P.~R.-Out of School Program
Misccllvlcous Movies, homcworl: assistance.
field trips. food. variety shows.
eel'a11lleS, ~lOw'llll`,?. «-aTe1' p~ll'ks,
sk<ltin~~. trips to Miarlli
SCAC~UarlLlm. L,IOn Countl'v Safal'I
42.67 ~
P.&R. -Administration
FCOIOt~lc~d AssoclaTes ~~1SCe~~al1L'ol1S L'CO~ot~lca~ SL'1'V1CeS ~.68n
P.&R. -Teen Center
Dcvcon SeCUI']t}~ A~~li"Ill -llomtOi'In~~ ~.~)~)~
P.&R.- Athletic and S ~ecial Events
Jcrmac Pcst Control Pcst control scrviccs 234
P.&R.-Ocean Rescue
Universal Bcach Services Bcach clcanin~~ scrviccs 79.080
First Advanta<~c Back<~round chccla- life<~uards 642
Alarm Partners. LLC Alarm monitoring 763
P.&R.- Community Center
Dcvcon Sccw~it}~. Alarm Cluh Security and alarm monitorin<~ ?.017
P.&R.- Veteran's Park
Barry Jaffe Musical cntcrtainrncnt 200
Carol Birtwcll Children's entertainment l00
Dcvcon Security Security and alarm monitoring 782
P.&R.- Pom rev Park
Dcvcon Secul']t}~ SecLn']t}~ and ~d~lrnl nlomtOl'In<~ x.380
Dean Simmons Cornputcr lah instructor fccs 20.440
Tia Dohard. Krystal Hill Coaching fccs 8.373
P.&R.- Parks Maintenance
Bucl:y Dcnt Baschall School Field landscape rnaintcnancc 75.104
SporTS TLlrf ~nC TUI"f 1'Cp~aCCment 86.37
M~1npOWCI' En1p~0ymenT SCrVICCS 949
Macs Garden of Eden Nursery Plants and landscapi^<~ 4.482
Simplex Grimlel Timc clock maintenance 229
ADT and Dcvcon Security Security and alarm scrviccs 2.887
Homrich Nurscrv Repair of fiber optic cahlc 2.141
First Advanta<~e Employee hacl:~round checks 798
81
MCSOZOIC' Landseapc COC'O plum trees 293
Fn'sT C~Canln~~ Sel'vlces RL1sT rC171oVa~ sCi'VICCS =~~)~
P.&R.- Catherine Stron ~ Park
Alarm Partners Security and alarm services 304
P.&R.- Cultural and Fac. Maint.
Mesozoic Landscape Coco plum trees 160
Tennis Stadium
Global Sports and Tennis Design Consulting aareemcnt 20.742
JCD Sports Group Consulting agreement fior special
C~'CnTs
34.088
Tennis Center
Lesson Commissions Lessons provided by pros 260.023
~U~lln c~ As$oclaTes M~lllaf?CmCnT sCl'~'ICes ~~).~)~)(~
JCD Sports Group Annual hones 3.184
Lal:c Worth Monument Plaque fior Brahrn Dubin 1.474
BamhCl'~~ H~ll1d~C}~ CusTomel' Sel'vlce Snl've}~ 7.580
A~aI'nl C~Uh A~~li'm IllonlTOi'In~~ 2.380
SecllrlT}~ Al~ll'ITl f~~al'n1 IllomTOl']n<~ 307
Thysscnkrupp Elevator Co. Elevator maintenance and repairs 1.742
COnIpUPa}~ Pa}~r0~~ serVICCS ~.~~~
NMS Mann<~cmcnt Prc-Ernploymcnt dru<~ tcstin<~ 794
Comcast Cahlc installation 1.495
Cintas Fire Extinguisher Services Maintain fiire e~tin<~uishcrs 952
Palm Beach Countv Health Dept. Food hvuienc 160
MISCC~~anCOllS PaymCnT ad~L1STmCnTs 5.98
Total Contractual Services 1,522,261
82
HOMETOWN CONNECTION PUBLICATION
The City publishes two (2) on-going newsletters to the general public.
The first is the News for Neighborhoods which is issued monthly to utility customers
(approximately 21,000) at an annual cost of approximately $12,900. This publication
provides information to the customers in an economical manner since it is inserted with
the monthly utility bills. Additional copies are available to the general public at various
distributions sites in the City.
The second publication is the Hometown Connection which is issued on a bi-monthly
basis (approximately 7,000 copies mailed, extra copies at distribution points in City) at an
annual cost of approximately $43,850. This publication provides important information
to the public that may or may not be duplicated on the New for Neighborhoods or the
general media. It also includes the Annual Report.
Recommendation:
With the exception of the Annual Report, the Budget Task Force feels that the Hometown
Connection is duplicative of the News for Neighborhoods publication and the general
media. In light of the fact that the budget may require cutbacks either in employees or
services, the Budget Task Force would recommend that the City Commission consider
not publishing the Hometown Connection with the exception of the Annual Report.
Estimated Potential Cost Reduction
75% of the total cost of $43,850 = 31572
Follow-up
The City Manager responded to this recommendation in a memo to the City Commission
dated September 8, 2008. The City Manager recommended that we change the present
publication from six times per year to quarterly. No further action is required.
83
TENNIS STADIUM OPERATIONS
FY 2007
Description Amount
REVENUES
Sponsor's}IIpS X22.8OO
Special Events 7.518
Rents 5.72
Total Revenues $36,043
EXPENSES
Other Professional Services
Tennis Director Salary 520.000
Tennis employees payroll 39.9=}3
Ut11CI' Contl'~lctll~d Services
Dubin & Associates 15.000
JCD Sports- Consultant fees for special events 20.000
JCD Sports- Annual bonus 2.000
G10(7id Sp01'tS ~'z Tem)is Desi<~n 17.831
Electricity 13,000
Water/Sewer 4.500
General Liability Insurance 21.1 l0
Building Maintenance 14.763
Advcrtisin~~ 170
Office Equipment < 5750 18.376
GCnCral Operatln<~ SLlppl ICS I .~~ I
Equlpment < 5750 18.036
ATP TC1u71S Tournament 1.06 E937
ChrIS Evert TOUrnament 5 1.480
Player's Inter7)ational Tournaments 139,871
Other Events (USTA Fed Cup. Other) 170.5 l5
Other Improvements (Seatin<~. Office Furniture. Other) 174.866
Total Expenses 1,806,079
Net Profit or (Loss) ($1,770,036)
Observations•
The City Commission executed a 25-year contract with Match Point, Inc. (Mark Baron)
dated October 1, 2005 which obligates the City for approximately $1,016,140 annually
with CPI increases of 3-5% each year until 2030. This fee is basically a sponsorship fee
to Match Point which also gives them an exclusive license to manage and operate their
ATP event at the Tennis Stadium and gives them office space throughout the year. This
is approximately a 10-day event each year.
84
In addition to the sponsorship fee, the City is obligated to provide other items such as:
• Use of the tennis stadium and tennis center
• City shall provide seat covers for up to 4,000 seats
• City shall prepare and maintain tennis courts, buildings and grounds to ATP
standards for 7 days prior to event and during event
• City shall provide a quality public address system and lighting
• City shall provide a T.V. tower and platform and electricity
• City shall design, construct and install adraw/sponsor board
• City shall provide 2 show hard courts with public address system and temporary
seating for 100 and 500 persons respectively
• City shall provide 4 practice hard courts with ATP standards with cold water
supply, electrical outlets, tables, chairs, and access
• City shall provide 2 extra nets, posts, 10 pairs of single sticks and 6 umpire chairs
with umbrellas, line person chairs, 12 windscreens, 5 scoreboards, court barriers
• City shall provide clearly numbered seating and dividers for box seats and room
dividers for gymnasium
• City shall install and maintain 75 international flags
• City shall provide short-term parking and long-term parking along with transport
from parking areas
• City shall provide electrical power, water supply and space for at least 2 T.V.
trucks and related personnel tents, area lighting and parking for television trucks,
tents for hospitality and concession operations
• City shall provide construction of 2 program sales stands and provide space for
tents, food, and concessions, merchandise sales, and other vendors
• City shall provide restroom facilities for general public and VIPs with supplies
• City shall provide use of professionally maintained courts for practice, clinics, an
pro-am event, junior event, and sponsors during the ATP event
• City shall provide use of the air conditioned Community Center, locker rooms, and
players lounge along with an area for volunteers, officials and ball persons
• City shall provide necessary traffic signage to direct public to parking and Tennis
Center
• City shall provide a ticket sales office with year-round exclusive use by Match
Point
• City shall provide suitable flooring for exhibit booths
• City shall provide reasonable access to golf tee times and cart for players and
sponsors along with exclusive use of 3 golf carts during ATP event
• City shall pay Match Point up to $9,785 for Match Point operations personnel
during the ATP event
• City shall supply 1 licensed electrician and 1 licensed plumber
• City shall supply teaching tennis professionals to assist with clinics, Kid's Day and
Pro Am during the ATP event
• City shall pay for and supply all permits
• City shall supply 50 telephone lines 1 week prior to the event and pay phones for
general public
• City shall supply flooring for tents and covering for 2 courts
85
• City shall supply 2 vacuums and 6 fire extinguishers and a 800 sq.ft. storage space
• City shall ensure entire facility is ADA compliant at no expense to Match Point
• City shall collect and dispose of all refuse and garbage including water and grease
in holding tanks on a daily basis
• City shall covenant and warrant that the facility is and shall remain in as good a
condition as it was upon execution of the Agreement
• City shall, at no cost to Match Point, assist in the promotion of the event
• City shall be responsible for security and crowd control
This table information supports the result that the marketing impact is more regional than
local specific to Delray Beach.
It would appear that the City is committed to this contractual agreement unti12030 unless
Match Point, with our permission, chooses to move this event to another site which is
highly unlikely.
Recommendations:
If there is any opportunity to renegotiate this agreement, the City should consider
shortening the term of this agreement.
In the future, the City should prepare acost-benefit analysis of any and all long-term
commitments prior to their approval. This agreement represents approximately 2°Io of
our General Fund budget with no direct revenue source to offset the costs.
Follow-up
The City Manager responded to this recommendation in getting the Community
Redevelopment Agency to contribute $500,000 in the upcoming FY2009 budget towards
the cost of the Tennis Stadium operations and activities. The Assistant City Manager is
presently negotiating to get a naming rights contract on the Tennis Stadium which would
also offset the costs of this operation. No further action is required.
86
TENNIS CENTER OPERATIONS
Description Amount
REVENUES
TCmlls 1\~elllbel'S}llps ~1-~~,~)7O
Temps LCSSOns 3-~7.)~U
EgUlpnlent RCIlti115 =},}~~~
League/Tournament Fccs 36J75
General Admissions 71.718
~il1C of 1\'~CI'Ch~ll1C11sC ~ 1 .353
1\~~1sCC11anCOLls -3,803
Ut}lel' Co1111111ss1onS 1 .709
Miscellaneous Taxable l 1945
Total Revenues $637,610
EXPENSES
Employee Payroll 350.969
Pest Control 258
Other Contractual Services
)_;Csson Co1111111sSlons 26O,O23
Duhin & Associates- Mann<~emcnt Fcc 30.996
JCD Sports Group- Annual Bonus 3.184
Lake Worth Monument- Plaque for Brahm Duhin 1.47=~
BanlbCr<~ H~Lndley- CllStOn1CI' SCI'VICC SUrVCy 7,580
f~larnl Club- l~lal'nl Monlt0l'In~~ x.380
SecLn'It}~ l~lal'nl- f~larnl Momtorln<~ 307
Thysscnkrupp Elevator Co.- Elevator Maintenance and Repairs 1.742
CompuPay- Payroll Service 1.877
NMS mana~~crllcnt- Prc-Ernploymcnt Dru~~ Tcstin<~ 794
Comcast- Cahlc Installation 1.495
Cintas Firc Extin~~uishcr Scrviecs- Maintain Firc Extin<~uishcrs 952
Palm Beach County Health Dept.- Food Hygiene l60
Misccllancous- Payment Adjustments 5.980
Travel & Trauun<~ 141
Telephone 3,007
Posta~~c 258
Electricity 72.1 l7
WratL'r~SC~VeI' 21).405
}I'I'I~~atlOn Water 12.174
Waste Collection ~~ Disposal 5.328
Stormwater Assessment Fcc 4.267
Equipment Rental/Lease 3.053
GCnCI'ill ).lablllty }nSLll'ilnCC 36,000
(~Calthcal'C PrCnlIL1n1S 31.312
Other Insurance 56.132
87
Buildin~~ Maintcnvlec 17.695
Eglllpment Millntenance 6~5
Vehicle Maintcnancc- Garage 5.457
Other Repair &Maintcnancc 135.062
Printing & Binding ?? 10
Rcfi-cshmcnts/Food 143
Advcrtisin<~ 10.677
Other Current Char~cs 400
Stationary/Paper/Forms 237
Office Equipment <~750 287
Fuel ~~ Oil 558
Othel' Opcratln<~ SL1pplICS 1 1.083
Uniforms/Linen 1 ?8 l
Janitorial Services 2.261
Equipment <~750 738
Tennis Merchandise 15.085
1\~Cm}1C1's}llps 859
Traininu/Education 250
Tennis Tournament Supplies 17.885
Other Maehinery/Equipment 4.395
Total Expenses 1,1 ~ 1,533
Net Profit or (Loss) ($503,923)
Observations•
It would appear that some of these costs incurred by the Tennis Center are for the ATP
tournament and should therefore be placed in the Tennis Stadium accounts. The Match
Point agreement requires that we keep the facilities and courts up to ATP standards and
some of these costs are in the Tennis Center.
The Tennis Center is being charged an allocated portion of the General Fund general
liability insurance in addition to the general liability insurance purchase by JCD Sports
which appears to be duplicated except that the City covers the building structures that are
not covered by the JCD Sports policy.
Recommendations:
Since several costs incurred by the Tennis Center are caused by the contractual terms of
the Tennis Stadium contract, we would not make any recommendations for the Tennis
Center.
Follow-up
Refer to "Follow-up" for the Tennis Stadium.
88
CREDIT/DEBIT CARD FEES
References
Credit/debit card fee sheets
State Statute 215.322(5)
Background•
The City of Delray Beach allows for credit/debit card payments to pay for certain costs in
the following areas:
• Golf courses
• Tennis courts (Tennis stadium facility, swim and tennis facility)
• Police Department fees
• Utility bill payments
• Parks & Recreation fees
• Community Improvement fees
• IVR (Interactive Voice Response) payments
• Website payments
There are numerous fees that are charged to the City for this customer use of credit/debit
cards. The credit card companies and banking institutions are charging on average 2.1°Io
to 3.1°Io of the transaction amount as a fee. State statute 215.322(5) specifically allows
for municipalities to charge a convenience fee (surcharge) for the use of credit cards
without exception (IVR, website, and over the counter transactions). However, VISA
does not allow for a specific charge for using their credit cards. Therefore, the State does
not accept VISA payments by credit card but does accept MasterCard, Discover Card,
and American Express.
Findings•
The City of Delray Beach currently incurs $175,000 in credit card transaction fees on an
annual basis. Many of these fees are over-the-counter and telephone credit card charges,
Per State statutes a municipality can charge a separate fee specifically for the use of a
credit or debit card. Another option is to consider this a cost of doing business and
recover the costs in rates (golf course rates, water/sewer/garbage rates, permit fees,
parking fees, etc.).
The use of a credit card through the IVR or website is different in that you may charge a
convenience fee. The City of Delray Beach currently incurs about $30,613 in IVR or
website transaction fees. There are 7,839 transactions per year. This is about to increase
since Parks & Recreation is going to implement their on-line payment systems and
Community Improvement is about to begin their IVR service for occupational license
business taxes.
Original Recommendation:
The City of Delray Beach should institute a charge of $1.50 as a convenience fee per
transaction for the use of the IVR and website services involving credit and debit cards.
This recommendation would have resulted in the need to modify our existing software
and there was a possibility that we would have to charge a customer account and this
89
would mean that a manual adjustment would have to be made to take it off a customer
bill or the customer would have had a negative balance on their account. In addition,
there were several conflicting statements made between credit card companies, State
officials, and the written documents on this subject.
Estimated Potential Revenue Increase:
7,839 transactions x $1.50 convenience fee = 11 759
Revised Recommendation:
The City should consider "piggy-backing" the State contract or negotiating with the
credit/debit card companies to reduce the costs per transaction that we are presently
paying. We currently are paying 2.1%-3.1% dependent upon location. If we can reduce
all of the transaction fees to 2.1%, this change would probably exceed the value of the
original recommendation to charge a customer fee. The revised fee would then be
recovered in our rate structures as a cost of doing business.
Follow-up Actions
The City Manager responded to the original recommendation in a memo to the City
Commission dated September 8, 2008. He recommended that we institute the $1.50
convenience fee for website and IVR transactions.
The revised recommendation was sent to the City Manager in a memorandum dated
October 8, 2008.
Treasurer piggy-backed the State contract rates and had this approved by the City
Commission in April, 2009. This new rate structure should be implemented in June,
2009. This should result in savings (reduced expenses) of $132,000.
No further action is required.
90
TRAVEL & TRAINING
COMPETITION EVENTS
A few departments are budgeted with funds for competition events in their travel &
training funds. In light of restricted budgets, it would seem appropriate to review these
costs, their total impact on operating costs, and the question as to whether they should be
continued in light of the fact that the City may have to cut positions or services to
citizens.
Fire Department
Regional Combat Challenge
15 employees, 4 days = $10,333 (overtime and FICA /1.5) or 60 days @ $172.22 or
$21.53/hr.
Overtime coverage required- $14,400
FICA on overtime coverage- $1,100
Registration- $1,800
Per Diem Cost- $2,280
Lodging- $1,200
FueUTolls- $450
$2,500 for maintenance/repair of combat challenge equipment
$600 combat challenge T-shirts
$10,000 for 10 new sets of combat challenge gear
Total Cost = $44,663
Advanced Life Support (ALS) Competition
6 Paramedics, 5 days = 30 days @ $172.22 = $5,167
Per Diem Cost- $1,140
Lodging- $1,440
FueUTolls- $80
Total Cost = $7,827
Public Safety Dive Championship
10 employees, 6 days = 60 days @ $172.22 = $10,333
Per Diem Cost- $2,280
Lodging- $2,500
FueUTolls- $250
Total Cost = $15,363
World Combat Challenge
10 employees, 6 days = 60 days @$172.22 = $10,333
Overtime coverage required- $19,200
FICA on overtime coverage- $1,463
Registration- $1,200
Per Diem Cost- $2,280
91
Lodging- $3,130
Airfare- $4,500
Vehicle Rental- $1,000
Total Cost = $43,106
New York Fire Department (FDNY) Tunnel to Tower 5K Run
3 employees, 3 days = 9 days @$172.22 = $1,550
Registration- $90
Per Diem Cost- $340
Lodging- $800
Airfare- $800
Total Cost = $3,580
Beach Operations (Lifeguards)
Lifeguard Competition Events
Only send 1-2 staff to competitions. They are paid only if they are regularly scheduled to
work that day. They leave at 3 p.m. and competition lasts until ? p.m. with minimal cost
(approximately 1 hour of salary). If they are not scheduled to work, they are not paid.
Personal car use is not reimbursed.
Regional and National events require some payment to full-time staff if they are regularly
scheduled to work but they cannot earn overtime going to a competition. Part-time staff
is called in to cover when travel time is required.
May 2, 2008 Hollywood Row event- 1 person after 4 p.m. at no cost
May 7, 2008 Delray Beach Lifeguard Competition- 8.75 hours overtime
May 30, 2008 Delray Beach Basic Life Support- 5 hours comp time
June 11, 2008 Palm Beach County Lifeguard Competition- will send 3 staff after 3 p.m.
June 22, 2008 Key West 12 Mile Paddle, Ski, Row Competition- off duty employees with
only cost being mileage
June 27, 2008 Boca Raton Lifeguard Competition- will send 3 staff after 3 p.m.
USLA Competition- Regionals (Sarasota) July 14-15 and Nationals (California) August
7-9 will be paid for from Rotary Accounts donation fund.
International Clincon Basic Life Support Competition- July 9-10 (Orlando) $920
Estimated total cost of Lifeguard competitions- 2 000
Police Department
National Dive Team Forum & Competition
5 Officers, 5 days ($50,000 / 2080 hrs, x 40 x 5) _ $4,800
Lodging- 3 rooms @ $100 x 5= $1,500
Meals- $38/day x 5 x 5= $950
Gas- $150
92
Registration- $2,000
Total Cost = 9 400
Annual Sniper Competition
2 Officers, 5 days = ($50,000/2080 hrs. x 40 x 2) _ $1,920
Lodging- $75 x 5= $375
Meals- $38 x 5 x 2 = $380
Gas- $80
Registration - $400
Total Cost = 3 155
SWAT Roundup Competition
10 Officers, 5 days = ($50,000/2080 hrs. x 40 x 10) _ $9,600
Lodging- $75 x 5 x 5 days= $1,875
Meals- $38 x5 x 10 EE _ $1,900
Gas- $200
Ammunition- 14,000 rounds (practice) @$.25/round = $3,500
Registration- $3,000
Total Cost- 20 075
Total Cost- All Competitions = $149,169
Recommendation:
The City Commission should consider eliminating all competition events since these
costs are not part of the required services provided to our citizens. These costs should be
considered before any employee positions are eliminated or important services to our
citizens are reduced.
Estimated Potential Cost Reduction
Total cost of all competitions (including improvements to productivity) = 149 169
It should be noted that these savings are based on the original departmental request and
not the actual expenses incurred during the fiscal year.
Follow-up
These costs for competition events were derived from the original budget requests from
the departments. The City Manager reduced some of these budget requests but the detail
was not sufficient to tell what items were cut. The Fire Department actually only spent
some $8,000 to date on competition events. The FY2009 budget for travel and training
was cut by the City Manager due to financial limitations in the overall budget.
The City Manager responded to these recommendations in a memo to the City
Commission dated September 8, 2008. He stated that the travel and training budgets
were reduced and he would defer to the Department Heads to prioritize the spending of
the remaining budgets. No further action is required.
93
SPECIAL EVENTS
SPIRIT Program Costs
The City of Delray Beach currently spends almost $50,000 on the "SPIRIT" program.
This cost does not consider the loss of productivity costs for the 350 employees
participating in the annual BBQ event where some departments take off ahalf-day. In
light of the fact that the budget shortfalls may require employee cutbacks or basic service
reductions to our citizens, employees would expect to see all unnecessary costs reduced
before employee positions are lost. Since this is a relatively new program, the Budget
Task Force feels that it would not be considered to be a required or necessary program at
this time.
The costs of this nrocram can be shown as follows:
Description Cost
Newsletter printin<~ 1,160
Am1Ual BBQ
Building rental 250
Catered food 7.000
Desserts 300
DecoiiltiOns 400
Entertillnment 4O0
Rafit7e prizes 1.700
Quarterly awards 3.000
Annual awards 2.000
SPIRIT si<~htin<~s awards 5.000
Trophies 600
Promotional items 1.200
Annual awards hanyuct
Food I b.000
Entert~llm7lent x.500
Invitations and prOmOTlOna~ ItCnIS ~.~~~
DCCOratlOllS. C~ltt~C pr1ZCS 3.470
Total Projected Cost 47,180
Recommendation:
Considering the present budget shortfall, the City should consider eliminating the
program costs associated with the SPIRIT program as this is a relatively new program
that is not critical to the continuation of essential services to the citizens. In addition, in
the current budget environment with the loss of the 1% match program, the freezing of
wages and positions, and the possible loss of positions in the upcoming budget, a SPIRIT
program is not exactly high on the essential cost list of employees at this time.
Estimated Potential Savings:
94
The total projected savings from this program would be 47 180.
Follow-up
The City Manager responded to this recommendation in a memo to the City Commission
dated September 8, 2008. In this memo the City Manager recommended we keep the
budget at approximately $30,000 by possibly eliminating the Annual Banquet but
keeping the Employee BBQ. No further action is required.
95
PARKS & RECREATION
COLLEGE TOUR PROGRAM COSTS
The Parks & Recreation Department has a College Tour program whereby they bus up to
50 students and 8 chaperones around to different colleges. This year the tour went from
Florida to Georgia, Tennessee, Kentucky, Illinois (Chicago) and back. The trip is 8 days
long and has included stops in the past at different colleges, historical sites, other famous
sites, theatres and various theme parks.
The budgeted costs for this program exceed $35,000 (not including employee salaries,
benefits and overtime). These costs include the bus rental and driver for 200 hours @
$72.59 per hour (24 hours per day), 25 hotel rooms for 6 days @ $120 per night, meals for
the chaperones. In addition, students are charges $350 each for costs not listed. This
receipt of funds does not offset the General Fund costs. They cover additional costs of
the students.
Three of the current chaperones are City employees. Therefore, in addition to the
budgeted costs there would be salary and fringe benefit costs of these employees.
This program would not reasonably be recognized an essential City service in light of the
current budget conditions with potential for salary freezes, position freezes, lost jobs, and
other cutbacks. In addition, this event would appear to have significant liability exposure
to the City.
Recommendation:
This program should be eliminated as anon-essential City service for an estimated
savings of approximately $40,000.
Follow-up Status:
This program is included in the Department request for FY2009-2010.
96
OTHER ASSIGNMENTS
Review of Match Point Amendment No. 2 (ATP Champions Tour Tennis Event)
In June, 2009, the Budget Task Force was assigned the responsibility to review the Match
Point Amendment No. 2 for the ATP Champions Tour tennis event. Following the
review, the Budget Task Force was to present their observations and recommendations to
the City Commission.
The following represents a comparison of the original amendment and the revised
amendment as negotiated between the Budget Task Force and Match Point:
• Original 20-year agreement was for $375,000 per year and a 3% CPI for a total
cost to Year 2030 to the City of $10,885,000.
The Budget Task Force negotiated a 5-year agreement with renewals. The initial
5-year contract could be terminated after 2 years or after 4 years if the
sponsorship funds received did not equal or exceed the tournament costs to the
City
• Original amendment included a $75,000 fee to Match Point to administer the
CRA funding of $500,000.
The City staff negotiated no cost for Match Point to administer the CRA funding
• Original amendment included a $20,000 fee to Match Point in exchange for
allowing the City to pay for the first event over a 4-year timeframe.
The City staff negotiated no cost to Match Point to allow for the 4-year time
phasing of the first tournament.
• Original agreement included a 10% fee to Match Point on all sponsorship fees
received by the City in order to administer these sponsorships.
The Budget Task Force negotiated a 5% fee to Match Point on all sponsorships
received by the City.
• Original amendment included a $30,000 reimbursement to the City from Match
Point if the tournament was not televised.
The Budget Task Force negotiated a $100,000 reimbursement from Match Point if
the event was not televised.
• Original amendment stipulated that Match Point would spend a minimum of
$200,000 on player appearance fees.
Budget Task Force negotiated the minimum of $250,000 for player appearance
fees.
The City is required to make the first payment to Match Point for this tournament on
October 1, 2010 which allows the City 16 months to raise sponsorship fees for the first
event and make this a fully funded event. The ultimate goal of the City should be to raise
97
sufficient funds to cover the ATP Champions Tour event and contribute and excess to
cover costs incurred in the ATP World Tour event.
The revised amendment was passed by the City Commission June 16, 2009.
98
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Danielle Connor, Acting Fire-Rescue Chief
THROUGH: David T. Harden, City Manager
DATE: July 9, 2009
SUBJECT: AGENDA ITEM WS.3 - SPECIAL/WORKSHOP MEETING OF JULY 14, 2009
PRESENTATION REGARDING THE PROPOSED FIRE-RESCUE TRAINING SITE
ITEM BEFORE COMMISSION
Staff requests Commission direction for the future development and construction of a Fire Training
Center at 80 Depot Road.
BACKGROUND
Currently, the Fire-Rescue department does not have any formal or consistent training facility. In years
past, the department has used a combination of classroom and field exercises to conduct their training
and meet State and NFPA standards, which is for 20 hours per person per month. With only two
individuals in the Training Division for a department of 143, the challenges of creating new and testing
training sessions and keeping up with current technical trends has become difficult. Firefighter skill
development and maintenance is both an essential and an ongoing endeavor. The Training Division has
often used abandoned homes for training purposes, including ladder evolutions, pumping exercises,
rapid entry team skills, search and rescue, and incident command practice. However, these residences
are no longer readily available, are fraught with legal hurdles, or are not safe.
There are two training centers of note in Palm Beach County: one in Boca Raton, and one off of
Southern Boulevard operated by Palm Beach County Fire-Rescue. Boca Raton Fire-Rescue, for
example, has offered us the use of their facility at a cost of $750/day. In addition to this base cost, our
department would need to provide our own equipment and instructors, which is an additional $750/day.
Given the three-day shift schedule, this would amount to $4500/week. The aim of the department is to
conduct fire training at least once monthly. At this pricing, this would amount to $54,000 annually.
The use of the County's facilities is not tenable geographically.
Preliminary architectural plans have been produced by Currie Sowards Aguila Architects for the
development of 80 Depot Road into a comprehensive, state-of-art training facility. A training facility at
this site would enable all department units to be available in city limits at all times, and would provide
for frequent training across a wide variety of disciplines from Hazardous Materials to extrication and
high-rise preparedness. Also, the site would give the department a consistent and safe place to conduct
all annual hose and pump testing. Finally, the site would provide for much needed office space and
additional classrooms. Although the Fire/EMS program at Atlantic High School is in its infancy, these
plans would allow for future development of a State certified minimum standards complex.
These plans for the site are being presented to the Commission for your information and to afford an
opportunity to voice any suggestions or concerns you might have regarding this project.
DELRAY BEAG-I FlRE TRAINING FAQLJTY
PRELJMINARY OPINION OF PROBABLE OOST
JULY 1>, 2009
A TRAIN DEPOT BUILDING IMPROVEMENTS
1. Select ive demolit ion
2. Structural repairs
3. Stucco patch
4. Interior wall repair/replacement & finish
5. Insulation
6. Folding partitions
7. Wndows, doors & hardware
8. Boor leveling & finish
9. Acoustical ceiling
10. Shelving, cabinetry & lockers
11. Interior painting
12. Partitions, bath & of her accessories
13. Plumbing
14. HVAC
15. Electrical
16. Security & fire alarm
17. Sit e civil
18. Trash removal & general clean-up
19 . Contingency
20 . General conditions, CAP
Sul~Tat al
B. Fl RE TONER
1. Concret e work
2. Roof panels
3. Boor & wall coating
4. Door, hardware & railings
5. Scaffolding
6. Electrical
7. Fencing
8. Landscaping & irrigat ion
9. Contingency
10. General conditions, CAP
Sul~Tat al
$ 8,500.00
$10,000.00
$ 3,000.00
$ 10,000.00
$ 5,000.00
$ 12,000.00
$ 38,000.00
$ 20,000.00
$ 4,50 0.0 0
$ 7,900.00
$ 6,600.00
$ 7,000.00
$ 20,000.00
$ 20,000.00
$ 20,000.00
$ 3,000.00
$ 85,000.00
$ 4,500.00
$ 20,000.00
$ 55,000.00
$360,000.00
$505,000.00
$ 6,000.00
$ 55,000.00
$ 60,000.00
$ 30,000.00
$ 20,000.00
$ 10,000.00
$ 40,000.00
$ 35,000.00
$ 114,000.00
$ 875,000.00
1
G. ITEMS BY O~IIAVER
1. A/E fees (design, SPRAB, permit & const ruct ion services) $115,000.00
2. Training Props
a. Bleachers
b. Fre Laborat ory
c. Burn vehicles
d. Under Ground Drafting fit
e. Tower Signage
3. Impact and permit fees
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RESOLUTION NO.24-09
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, CREATING THE GREEN TASK FORCE
TO MAKE RECOMMENDATIONS TO THE CITY COMMISSION
REGARDING ENVIRONMENTAL SUSTAINABILITY; PROVIDING AN
EFFECTNE DATE.
WHEREAS, the State of Florida has established the Florida Energy Commission as well as the
Century Commission for a Sustainable Florida which has recommended the state make energy security and
greenhouse gas reduction a top priority; and
WHEREAS, the City of Delray Beach recognizes the importance of environmental stewardship
regarding energy, water, air, land, and waste; and
WHEREAS, the City Commission of the City of Delray Beach, Florida, desires to establish a Green
Task Force to make recommendations to the City Commission regarding environmental sustainabiliry and
ideas to implement the recommendations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City Commission of the City of Delray Beach, Florida, hereby agrees to
appoint a Green Task Force with member requirements as set forth below:
A. Green Task Force Member Requirements:
1. The Task Force shall consist of five (5) members appointed by the City
Commission, three (3) members shall be appointed for an initial term of one
(1) year and two (2) for a term of two years. Thereafter, all appointments shall
be for two (2) years.
2. All members shall have expertise or an interest in environmental conservation
and sustainabiliry and shall be residents of or own property in the City, own a
business within the City, or be an officer, director or manager of a business
located within the Ciry.
Section 2. That the Green Task Force shall be responsible for reviewing City operations and
policies toward achieving Delray Beach's green goals and providing recommendations to the City regarding:
1. Ways to improve the environmental sustainabiliry of City programs, services,
equipment and facilities.
2. Strategies for improving the environmental sustainability of the community.
3. Incentives for residents, businesses, and organizations to practice
environmental conservation including recycling.
4. Proposed means to enhance water and energy conservation.
5. Ideas for promotion for tree planting and xeriscaping.
6. Best practices to be considered for implementation in Delray Beach, including
long-term strategies.
7. Proposed revisions to City ordinances to address Green technologies.
Section 3. That the Green Task Force shall conduct their review and provide a report of
recommendations by February 1" each year.
Section 4. This resolution shall take effect immediately upa n its adoption.
M'~ ~~
PASSED AND ADOPTED in regular session on this the day of J~~- , 2009.
ATTEST:
\~'~t`-'
City Clerk
--
2
RES. NO. 24-09
Page 1 of 1
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Terrill C. Pyburn, Assistant City Attorney
THROUGH: Susan A. Ruby, City Attorney
DATE: May 26, 2009
SUBJECT: AGENDA ITEM 8 D -REGULAR COMMISSION MEETING OF JUNE 2.2009
RESOLUTION N0.24-09
ITEM BEFORE COMMISSION
Resolution No. 24-09.
BACKGROUND
The attached resolution establishes a Green Task Force to make recommendations to the City
Commission regarding environmental sustainability and ideas to implement the recommendations.
RECOMMENDATION
The City Attorney's Office recommends City Commission discretion.
http://miweb001/Agendas/Bluesheet.aspx?ItemID=2240&MeetingID=208 6/5/2009