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07-13-10 Special WS MinutesSPECIAL/WORKSHOP MEETING JULY 13, 2010 A Special Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Nelson S. McDuffie in the Commission Chambers at City Hall at 6:00 p.m., on Tuesday, July 13, 2010. Rall call showed: Present - Commissioner Gary P. Eliopoulos Commissioner Fred B. Fetzer Commissioner Adam Frankel Commissioner Angeleta E. Garay Mayor Nelson S. McDuffie Absent - None Also present were - David T. Harden, City Manager Brian Shutt, City Attorney Chevelle D. Nubin, City Clerk Mayor Nelson S. McDuffie called the special meeting to order and announced that it had been called for the purpose of considering the following Items. SPECIAL MEETING AGENDA 1. SPECIAL EVENT REQUEST/7TH ANNUAL FAMILY FUN DAY AT POMPEY PARK: Consider approval of a special event request for the 7`E' Annual Family Fun Day an August 7, 2010 at Pompey Park produced by the Parks and Recreation Department; and authorize staff support for security, trash removal and clean up assistance, trash boxes, use of the large City stage, City generator use, and preparation and installation of event signage; with the condition that the event is held From 4:00 p.m. to 10:00 p.m. Mr. Douglas Smith, Assistant City Manager, presented this item. The event includes a talent show, vendors, entertainment, games, and speakers. Parks and Recreation is managing the event. Parks and Recreation is requesting an ending time of 11:00 p.m. However, the City Manager's Office is requesting a 10:00 p.m. ending tirx~e because it is a residential neighborhood. Mr. Fetzer asked what happened with the 11:00 p.m. ending time last year. Ms. Linda Karch, Parks and Recreation Director, stated there were no complaints last year with that time. Mrs. Gray made a motion to approve the special event request far the 7``' Annual Family Fun Day to be held on August 7, 2010 at Pompey Park with 11:00 p.m. as the ending time; seconded by Mr. Eliopoulos. Upon. roll call the Commission voted as follows: Mr. Fetzer -Yes; Mr. Frankel -Yes; Mrs. Gray -Yes; Mayor McDuffie -Yes; Mr. Eliopoulos -Yes. Said motion passed with a 5 to 0 vote. 2. WAIVER OF RENTAL FEES REQUEST/ROOTS CULTURAL FESTIVAL. 1NC.: Consider a request for waiver of rental fees for the Youth Basketball Tournament to be held July 23-25, 2010, at Pompey Park and the Community Centex anal for the Prayer Breakfast/Health Fair proposed to be held at Pompey Park on August 14, 2010. Mr. Smith presented this item and stated it is a request to waive rental fees for the Roots Youth Basketball Tournament to be held on August 23-25, 2010; and for the Prayer Breakfast/Health Fair to be held at Pompey Park. Ms. Alberta McCarthy was present for questions. Last year, the Commission waived the fees for the Adult and Youth Tournaments. Roots is not having an adult basketball tournament this year. In 2008, the Commission waived both the basketball and prayer breakfast/health fair fees fox Pompey Park. The total fee waiver for this year would be $4,290.00. The festival would still be responsible for about X3,000.00 fox police costs. Regarding the waiver, Mr. Frankel stated this year the budget is set, therefore, he is Erne with it. He stated next year because the budget will be difficult, he is not so sure. Commissioner Gray asked Ms. McCarthy to give a history of the Raats Cultural Festival and what they are doing now. In addition, she asked why the city started charging fees. Ms. McCarthy stated Roots has been in existence for thirty-three (33) years in Delray Beach, is a non-profit organization and has always provided activities to beep the youth active during the summertime. She continued to give an overview of the organization. She stated they are asking for the waivers and discussed changes with the special event policies. Commissioner Gray asked staff to find out about the histnty of Roots paying fees. The City Manager stated it is the way the policy is written and gave history. Mr. Eliopoulos stated Roots is a great organization and has a lot of history, but he cannot support the waivers. We have to be consistent with all organizations. Mr. Fetzer stated he respects the Root Festival and what they have done. However, we are going into a very unique budget cycle and he cannot support it this year. He concurs with Mr. Eliopoulos. Mr. Frankel asked Ms. Karch what is the cast to the city for the tournament. Ms. Karch stated the real cost is staff cost. However, staff is normally there on the weekends. So, the cost to the City AS m1tllYnal. Mrs. Gray asked how many children/teams normally come to the tournament. Mr. David Ricks stated there will be approximately 24-40 tearxas participating in the youth basketball tournament with 10 of the teams being from Delray Beach. Mrs. Gray stated she is in support of the tournament and feels it is very important; and that Roots cannot do this event unless they have the city's support. 2 7u1y 13, 2010 Mayor McDuffie asked what we have subsidized fax other events. Mr. Harden stated other events are paying approximately GO-70%. Mr. Smith stated this is not coming through as a special event application but as facility rental. Mrs. Gxay stated this organization is also sponsoring a three (3) week clinic for children and this is a part of their give back to our cornxnunity. Mayor McDuffie stated if we waive nothing the total cost would be an estimated $7,290.00. He stated he is inclined to agree with Commissioner Eliopoulos and Commissioner Fetzer that we have scaled back the amounts that we have subsidized for all of these events due to budget problems and we cannot do for one what we will not do for someone else. Mr. Frankel made a motion to approve request for waiver of rental fees for the Youth Basketball Tournament to be held July 23-25, 2010, at Pompey Park and the Community Center and for the Prayer Breakfast/Health Fair proposed to be held at Pompey Park on August 14, 2010; seconded by Mrs. Gray. Upon roll call the' Commission voted as follows: Mr. Frankel -Yes; Mrs. Gray ---- Yes; Mayox McDuffie - No; Mr. Efiapoulos - No; Mx. Fetzer - No. Said motion DENIED with a 3 to 2 vote; Coinn~.issioner Frankel and Commissioner Gray dissenting. Mayor McDuffie adjourned the Special Meeting at 6:28 p.m. i~ORKSHOPAGE1Vl3A 2. DISCUSSION REGARDING DOWNTOWN DEVELOPMENT AUTHORITY Mr. Harden stated there are representatives from the Downtown Development Authority (DDA) that are prepared to speak. The Mayor stated we will hear from the Chairmen. Mr. Michael Listick, Chaixzx~an of the DDA, stated he would like to start by listening. Commissioner Fetzer stated that the Downtown Marketing Cooperative (DMC) is the other organization deeply involved in this and recommends that they speak and the DDA follows up. Ms. Sarah Martin, Executive Director of the Downtown Marketing Cooperative, stated the DDA and the DMC used to be combined and ran under one executive director. Since January, they have gone through a complete reorganization, have grown and expanded. She is now Executive Director of the DMC and Marjorie Ferrer is Executive Director of the DDA. There have been conversations about what each organization is doing so that there is no overlap or duplication of efforts. Additional issues include partnership fees, the logistics and hosting of the website. The Downtown Development Authority will give them $9,000.00 at the end of the year and has a goal setting session on July 27, 2010. Commissioner Eliopoulos stated he is hearing about duplication and mission statements. He asked why not have DDA and DMC have a workshop with a mediator to try to develop a list of duties. Commissioner Gray asked about the February 2~, 2020 meeting between the DDA and the DMC anal stated that it appears the duties were divided up between the DDA and DMC. Ms. Martin discussed the delineation of duties based on budget in regards to it being presented to the board. 3 July 13, 2010 In addition, Commissioner Gray commented on the website and asked how we agree upon the website is there an issue with control of the website. She asked will it work with both organizations having access to the website. Commissioner Frankel stated in regards to the website, develop buttons for the DDA and DMC. With the personalities involved, things need to be separate. Both organizations need to work this out. Coixaanissioner Fetzer stated he asked for this to be moved up on the agenda because it was brought to his attention that several issues needed iintnediate attention. He discussed the long history o£ Delray Beach regarding marketing and success. Representatives from both groups need to sit down again. with a mediator and get these issues worked out. Commissioner Eliopoulos commented on duplication and funding; he stated he would like to see the groups meet because this has to be resolved. Commissioner Gray stated she would like to hear from the DDA since the DMC has spoken. Mayor McDuffie stated one of the reasons he agreed to do this is because there is a statutory deadline for everyone to set their millage rates by August 4, 2010 by 5:00 ptx~. He discussed the certification. of taxable value for the DDA. He mentioned issues of conflict regarding who will do what. He mentioned the enabling legislation for the DDA; specifically Section 6 regarding responsibilities and authority of the DDA and their functions. Mayor McDuffie stated first and foremost personal issues need to be put behind us; this is not Delray Beach. He concurs with the rest of the Commission regarding a workshop between the DDA and DMC. Mr. Michael Listick stated everyone has been trying very hard; there has been a lot of communication regarding the website. Progress is continuing. They held a meeting yesterday and will have a goal setting and budget meeting on July 27, 2010. There is a list of what was agreed to as far as duties, etc. In terms of overlap with the CRA, DDA has alot of planning and survey functions. However, they have met with the CRA to discuss this. He discussed participation and funding. Thep are willing to participate in a workshop. Commissioner Gray asked if the DDA is on track with what they have committed to for this year for the DMC. Discussion continued between the Commission, DDA and DMC. It was the consensus of the Commission that both parties have a workshop on August 2, 2010 with a mediator to delineate their duties. Mayor McDuffie will attend on behalf of the city. 2. PRESENTATION OF BENEFITS COMPARISON INCLUDING PENSION AND VOLUNTARY EMPLOYEE BENEFIT ASSOCIATION (VEBA~ Mr. Bruce Koeser, Human Resources Director, introduced this item. He stated that Gallagher Benefit Services, Inc. is assisting us again. Representatives Jodie Jupp, Don Titcomb and Glen Volk were present. It is a comparison of medical insurance,. all types of benefits including pension and VEBA, etc. 4 July Z3, 2Q14 Ms. Jupp stated tonight's study resists are a continuation of the study did in 2008 which was presented to Commission in February 2009. She conducted a PowerPoint presentation stating she will present changes within the study as well as the results of the health and welfare and pension benchmarking study which puts the information into total rewards. She stated the prior study (2008-2009) included eight ($) public entities with six (6) included in the current study. Glen Volk spoke regarding development of an employee value index including values of the plan levels and contributions, etc. Mr. Volk stated they measured the benefits of the plans as valued by the employee. Significant changes were made to the City's Health plan effective June 1, 2010; however, it is too early to factor in the value of the city's health and wellness center. He discussed the VEBA benefit stating it is basically a trust used to pay their retirees' health care benefits (retirement premiums}. Mr. Volk stated with the pension evaluation, the factors used were various age and service combinations and the value of that pension was calculated as a percentage of salary, net o£ the required employee contributions. He then gave a summary of the combined pension and benefit plans value. Commissioner Fetzer stated he is very glad we went through this evaluation. It is great to see how we measure up against other cities around us. He is vezy happy to get this information. Commissioner Frankel thanl~ed Gallagher Basset and stated he appreciates the information. He asked how the initial police, fire and general employees' salaries were taken into account. He coixaxxaented about Pompano Beach and Deerfield Beach and asked how they compare if they receive police services through the county. He commented on Page 13 regarding the summary of benefits and benefit value. He stated it is important to take everything into consideration. Mayor McDuffie asked when was the last time a salary survey was completed. Mr. Koeser stated this is done on an annual basis. Commission thanked Gallagher Basset for the presentation. 3. FINAL REPORT ON THE WASTE MANAGEMENT REVIEW FOR COMMERCIAL AND RESIDENTIAL ACCOUNTS Mr. Richard Reade, Sustainability/Pubfic Information Officer, presented this item giving an overview o£ how this waste management review began. A resident, Mr. MacNamee, investigated various aspects of our city's solid waste and recycling collections process including the management and administration of our franchise agreement with Waste Management. As part of the investigation, the Mayor submitted a letter on February 10, 2010 to the Financial Review Board (FRB) on behalf of the City Comxxaission asking: Is the city receiving all franchise fees due and is Waste Management billing the city for the appropriate number of units and are the units counts periodically reconciled with the Property Appraiser's records? In an effort to resolve these questions, the FRB was asked to assist with answering the questions and the task was tal~en on by staff with intent to receive confirmation by FRB and Mr. MacNamee that all questions were answered. Staff developed plans for both the commercial and residential analysis; neither a financial nor forensic audit of programs was completed during the process. This plan included a historic and current review. He discussed the basic findings and where we are headed now. July 13, 2010 During the commercial analysis, fourteen (14) different work plan items were examined to confirm the proper receipt of the commercial franchise fees. The analysis was provided to FRB and Mr. MacNamee to review for comments. It was found that there were numerous barriers including Waste Management's live system, lack of detailed and customer data and communication which prevented the completion of detail to deter~.nine whether or not the appropriate franchise fees were received since inception in 2002. It was determined that approximately X51,000.00 was due to the city for Open Tap or Temporary C & D franchise fees that were omitted for various reasons as well as $1,800.00 in administrative fees for two (2) separate five (5) month periods. Both amounts have been provided to the city by Waste Management. In addition, various business process improvements have been identified and recommended to be implemented; some have already begun to ensure the accuracy of the city's commercial solid waste program and franchise fee payments in the future. Mr. Reade discussed the recommendations and draft ordinance that will be coming before the Commission and stated all of the recommendations are listed in the attached report and were provided previously to the Commission as well. On the residential side, seventeen (17) work plan items were developed to determine if an overpayment had been made by the city. The comprehensive analysis was provided to aIl members of the FRB and Mr. MacNamee in advance for review and comment. The basic findings were that the invoice unit counts had not been updated, compared or reconciled with the-Solid Waste Authority. It has been determined through the analysis that the city has overpaid for residential solid waste services by approximately $64,000.00 net over the past 5 years. Also, due to an inadvertently missed payment by the city in 2005 of $177,000.00 and a sidewalk container disposal service fee, the estimated overpayment was brought down to $26,159.00. In addition, this analysis provided the city with the opportunity to cross our department Lines and review, amend and document our business practices related to commercial and residential solid waste along with the approved contractors. It also provided the city and Waste Management with a very accurate unit count as we proceed forward. He discussed the recommendations from the residential analysis. The final conclusions of both reports is that instead of pursuing the option of continuing either analysis; staff recommends that the city close the review of the historic franchise fee analysis and residential analysis and proceed forward in implementing the various policies and procedures that have been prepared by staff. The proposed changes were recommended by staff and the Financial Review Board. Mr. Reade thanked the members of the Financial Review Board, Mr. MacNamee and staff Commissioner Gray stated she was not on the Commission last year when this first came up and asked what was the reason we went forward with the study. She commended the staff for the long hours and tremendous amount of work put into this. She thanked the FRB as well. Discussion continued between staff and Commission regarding how the study and analyses came up. Commissioner Fetzer stated this has been a very long and painful process. He stated he has learned a lot from this whole process and we need to make some safeguards to make sure this does not happen again; he referenced the remarks by Mr. Howard Ellingsworth. He stated this raises a cloud over other contracts. He supports moving on but still has some questions on how the net figure was arrived at. 6 duly 13, 20I4 Mr. Butch Carter discussed the $177,000.00 missed payment. Co~.n.tx~ission and staff continued this discussion. Commissioner Eliopoulos stated he agrees with the FRB letter and stated he is fine with moving on. There needs to be a check and balances with this it is too big of a contract as well as other contracts. He thanked everyone for all of their hard work on this as well as Mr. MacNamee. Commissioner Frankel recognized everyone involved and stated this was a huge mess; however, it is important to note that all parties acted in good faith. He stated the hours that everyone has put in were needed. He is satisfied with City Attorney's assessment of the statute of limitations. He asked that the contract be simplified when it comes up for renewal. He stated it would be great to have someone who will just focus on contracts. He stated he considers this issue closed; and thanked everyone for their work. Comxxaissioner Gray stated she does not feel Waste Management was unethical neither was the city. She is glad the new procedures are in place now and thinks we can move forward. Commission discussed the statute of limitations regarding utilities with the City Attorney. Mx. Ellingsworth stated the board is clear on their observations and that we need to move on. Mayor McDuffie stated there have been fundamental mistakes made on our side of the equation. He stated were it not for Mr. MacNamee, we would not have found this. He is due a debt of gratitude for bringing this to our attention. This has been a very lengthy and arduous process. He discussed our billing process. Mayor McDuffie stated although this has been a long and tedious process it indicates that we have some inherent problems in our procedures; we xraust put the policies and procedures in place so as not to repeat any of those mistakes. Contract maintenance is very important. He believes that no one acted inappropriately. He thanked staff, the FRB, Waste Management and everyone who worked on this. He is satisfied with the statute of limitations, considers this a job well done by everyone and considers this closed out tonight and we can move ahead. FY 2011 BUDGET Mr. Harden presented this item and stated some of this he has brought to commission before and have added on some details as we continue to work on the challenges we face as we work with the 2011 budget. He stated Commission direction was to bring a budget without any increase in millage. He discussed the revenues at each different level. He stated 1/10 of a mil equals $595,$30.00 this year. He discussed the initial budget requests from departments and debt service, etc.- He stated in his initial review he cut ~1,~39,000.00. He stated the amount needed to balance the budget is $7,292,970.00. He outlined steps that we could take to close the gap via PowerPoint presentation. He stated Coaxamission needs to set a proposed millage :rate no later than the August 3, 2010 Commission Meeting. We need the Commission to think about where they want to set the millage rate and provide further direction on where to go from here. He encouraged the Commission to set the millage rate at a level where they have flexibility with the intent of lowering it. Mayor McDuffie asked Mr. Harden to explain. the reallocation of the Engineering Division. July 13, 2010 Commissioner Frankel thanked Mr. Harden for the presentation and asked if any of the changes he proposed are affected by collective bargaining. In addition, he asked about the article in paper regarding new hires in the Police Department. Mr. Harden stated the headline was misleading; and further explained the situation. Mr. Harden stated next week he will bring before the Commission a proposal for a study to be done at the Pofice Department regarding workload and deployment. Commissioner Frankel stated everything is on the table and stated he needs to hear from everyone. We need the Police and Fire Departments as well as the General employees help. He stated he hopes we can come to some kind of middle ground. Commissioner Gray stated she is in support of what Mr. Harden has suggested and glad to see that we will be considering everyone because everyone has to participate. She is glad to see this will not impact staff that will be retiring in the next ten years. She asked what is in the reserves right now. Commissioner Fetzer stated none of the things outlined tonight are going to be easy but we have to do it and he is moxe concerned with the end result. He stated pear after pear he has asked the City Manager to bring a budget that does not increase the millage rate and thinks Mr. Harden has brought more and a broader range of alternatives than in the past and has brought it to them earlier which gives them moxe time to think through this. He stated we cannot continue to automatically increase the millage rate while our assessments go down. We have gat to find ways to reduce the cost of city business. Commissioner Eliopoulos stated he agrees with everything that has already been said. He does not want to see the millage go up. He commented regarding furloughs. He stated communication is important; and he appreciates the list. Commissioner Gray stated she does not agree with layoffs. Mayor McDuffie stated the comment regarding communication was very well stated and would like to sit with anyone to find ways to help to get to where we have to go and mentioned setting additional meetings. He stated we are dedicated to doing this with the least amount of impact and pain to employees as we possibly can. He discussed the change in tax law, Amendment One and millage. He stated we need to heat from the community as well. He stated Commission has ability to communicate with all of the Homeowner Associations and discuss the budget with them. Mayor McDuffie adjourned the Workshop Meeting at 9:01 p.m. ~ ~ ~~,_ 1 City Clerk July 13, 2010 The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information provided herein is the Minutes of the Special/Workshop Meeting of the City Commission held on Tuesday, July 13, 2010, which Minutes were formally approved and adopted by the City Commission on August 3, 2010. `' .~' . , ~,r1i City Clerk NOTE TO READER: If the Minutes you have xeceived are not completed as indicated above, this means they are not the official Minutes of the City Commission. They will become the official Minutes only after review and approval, which may involve amendments, additions or deletions to the Minutes as set forth above. 9 July 13, 2010