Loading...
HomeMy WebLinkAboutMinutes 08-20-2010 CITIZENS’ BUDGET COMMITTEE Meeting Date: August 20, 2010 Conference Room 3 Meeting convened at 7:30 a.m. MEMBERS PRESENT: Carl Hensley, Chair Craig Mundt (7:31) Edith Hepburn Richard Pancoast Dan Kurek Edward Lounds (7:33) Ryan Strickland (7:43) Patricia “Pat” Ferrick Bill Hammer Ron Knaggs John Culverhouse (7:37) Patti Tobin Dana McSweeney (7:36) MEMBERS ABSENT: Jay L. McBee Randy Ezell OTHERS PRESENT: Faye Outlaw Larry Pelton Lee Ann Lowery Jennifer Hill Marie Gouin Mike Powley Debbie Brisson Mark Satterlee Fritz Georges Mike Monahan Jack Southard Michael Brillhart Bill Hoeffner Jim David John Ferrick Eva O’Donnell Beth Ryder Garry Wilson Audrey Jackson Karen Smith Kathryn Hensley Laurie Waldie Wayne Teegardin Josh Saad CALL TO ORDER Mr. Hensley called the meeting to order at 7:30 a.m. th APPROVAL OF MINUTES – JULY 16MEETING Mr. Knaggs made a motion to approve the minutes. The motion was seconded by Ms. Tobin and unanimously approved. Citizens’ Budget Committee August 20, 2010 Page 2 UPDATE ON REALIGNMENT – Faye Outlaw Ms. Outlaw thanked Ms. Lowery for filling in for her at the previous meeting. She said she has started to meet with the departments that are scheduled for realignment and hopes to have them implemented and a full report for the Committee by the end of September. REPORT ON ECONOMIC DEVELOPMENT EFFORTS – Faye Outlaw, Larry Pelton Ms. Outlaw explained the County’s funding for Economic Development. The County funds the Economic Development Council (EDC) agency annually. The last three years, the County has been funding them about $250,000 per year. Next year, the funding has been reduced to $225,000. They serve as the entity that does the recruitment. The County also provides incentives. A little over $500,000 was budgeted this year. Those funds are used for deals that are supported by the Board. Those dollars are budgeted for the Job Growth Investment Grants (JGIG). The funds roll year to year. After Mr. Pelton determines that there is a real prospect, County staff gets involved to determine what the incentive package will be. Mr. Pelton said they volunteered to take the cut in appropriations; it is not because of poor performance. Most of their income is from their members. Last year was outstanding; they closed nine projects with 2,500 jobs. They were the top in the State for a County our size. This year, the economy is catching up. They plan to close 12 projects with about 1,000 jobs. One of the projects is called Project Energy. EDC works both with existing companies that want to expand and recruiting companies. There should be 500-700 jobs from expansions. Most projects are in the northern part of the County. It is encouraging that some companies are doing well in this economy. The State is not funding incentives this year. There are tax rebates, but the grant programs were not funded this year. It is hard to close larger projects without incentives and referrals from the State. EDC has been working with a task force on Project Energy. They are working on a partnership with Oakridge National Labs from Tennessee. Mr. Pelton gave details about Oakridge’s campus and plans for the future. They have been able to show how much money they have saved on energy costs. The Department of Energy wants them to test it in the real world. They have an agreement that Fort Pierce will be the first demonstration city. A “Green Mile” has been discussed with technologies designed by Oakridge. Mr. Pelton looks on the economic side. The community will be more cost efficient for doing business. The companies that manufacture the technologies that will be installed will become targets for EDC. There are 300 corporations sponsoring research at Oakridge. The solar loan fund drew attention to our area. There are negotiations with a Fortune 50 corporation. Indian River State College and United States Department of Agriculture (USDA) are potential partners. There is interest in alternative fuels. This County will be a case study. It is embarrassing that New Jersey is ahead of the Sunshine State in using renewable energy. EDC is trying to pull the elements together. They are proud and Citizens’ Budget Committee August 20, 2010 Page 3 excited to be working on sustainable economic development. Mr. Hensley asked how sure they are about the project. Mr. Pelton answered that the closest element is the corporation. They don’t want to wait for Oakridge contracts to be completed. They are attempting to get federal grants for the Oakridge contracts. Mr. Mundt asked about criteria for the projects. Mr. Pelton reported on the loan fund. Establishing loan criteria is in process. He gave details of the funding and said they are not getting too public because they are not ready to make the loans yet. They are applying to the Treasury Department for a Community Development Finance designation so they would be a 501C3 loan pool. There would be benefits for the banks for their contributions. He explained the process and caps. They anticipate the average loan would be $5,000. Businesses can qualify. They have a proposed district. He thinks anything east of I-95 will qualify. Ms. Outlaw added that Mr. Kurek has been retained under a specialist’s agreement to help organize the loan fund. They are pleased with his job. Mr. Pelton clarified that the loan fund is a County program, not an EDC program. Mr. Kurek said one of his challenges was that they are not traditional loans. If everything prevails, the loans will be paid through a voluntary special assessment. The loan will be based on the average life of the improvement, up to 20 years. The minimum loan is $2,500. They are in the final stages of the loan policy and application. They are working on a list of contractors, energy auditors, a marketing plan and procedures for issuing and collecting the loans. He has learned a lot about solar energy the last 16 days. He told of his experience with a solar hot water heater in the 1980s and how he currently heats water. Small changes save money. He thinks the full system will drastically reduce energy consumption. He gave information about a current St. Lucie County resident that normally gets a negative electric bill. He added information on the cost and savings of the equipment he uses and what he has researched. Mr. Lounds asked if the EDC works with the Research and Education Park. Mr. Pelton answered they do. They would like Oakridge to have a facility there. They would like the companies that do sponsored research to have demonstrations of their technology so the public can have access to real live examples. They hope for collaboration with the USDA doing alternative fuel research. Mr. Lounds asked about efforts to get industrial companies into the Airport and Kings Highway Industrial Corridor. Mr. Pelton said they have a company that is trying to get bond financing called Health Chem. They are leasing property for a 200,000 square foot facility. They manufacture a patch that diabetics use. He explained the process for approval and plans for the future. They have signed a lease agreement for the County’s property in the Airport Industrial Park. Mr. Lounds expressed his concerns for small businesses that want to expand. He asked if Mr. Pelton can help streamline the red tape. Mr. Pelton answered that he has someone on his staff that works with those situations. The Cities and the County are open to helping. Citizens’ Budget Committee August 20, 2010 Page 4 Mr. Lounds asked if he would meet with small businesses in the Chamber of Commerce that have had problems. He answered absolutely. Mr. Lounds asked Ms. Outlaw if County Administration would help organize the meetings. A community runs on small businesses. Helping them expand would help the community. Ms. Hensley added the Chamber of Commerce has a Governmental Affairs and Issues Subcommittee. The business owners may feel their voice has not been heard. There is a place for them to speak. She thinks Mr. Pelton was involved in going through all the codes to determine what was in the way and what was perceived to be in the way. She feels the Chamber would be very willing to work with Mr. Pelton to pull the group together. Mr. Lounds said we do not hear about the successful businesses. He gave an example of a grower that wanted to put in a small juice plant. $2,800 worth of permitting and regulations were required to put in a $1,200 well. There should be some ways to help. He gave another example and expressed his opinion that there are some disconnects in permitting and regulatory issues. He hopes that in a three-way meeting some of the issues could be resolved. Ms. Outlaw said she would follow up. As a policy, the Board set development applications for economic development as a priority. Staff has put in a streamlined process. They will look for glitches. They want to give existing business as much priority as new ones. Mr. Lounds said some of it may not be County regulations. Ms. Outlaw gave an example of a meeting she was in. All the issues were with the County to the north and County to the south of us. She will certainly address problems with our existing businesses and St. Lucie County regulations. She thanked Mr. Lounds for bringing it to her attention. Mr. Hammer thinks any new construction should be built so it will not have to be retrofitted. He thinks it should be a companion goal that would make this area even more unique and attractive. Mr. Pelton agreed and said almost all architects are designing the new facilities to be energy efficient. They feel residential should be included. Mr. Knaggs shares the frustration of business expansion. You can streamline the system, but some regulations must be changed, too. He gave an example of parking lot issues. Ms. Outlaw thanked them for their comments. Mr. Mundt will report on his current request for a permit. Mr. Hensley asked Mr. Pelton to comment on the list passed out to the members (see attached). Item Five was not funded so it is on hold. They are waiting for the next session. Project Vision is looking for a building. The LED light manufacturer is planning to be in town in September. They should know then when it will close. All of the expansions, except Twin Vee have closed. Project Leeway is Tropicana. That is significant because Tampa was considering doing the expansion. He hopes for companies that will bring lots of jobs to the community. They also consider outsourcing. Mr. Pelton gave details how Twin Vee was treated almost like a new business and told the story of Silverline Plastics. Even when they don’t show big numbers, he believes they have a big impact on our economy. Mr. Lounds feels 10 businesses with 10 employees are better than one business with 200 employees. Mr. Pelton agrees because of diversity. Citizens’ Budget Committee August 20, 2010 Page 5 RESPONSE TO SUGGESTED REVENUE INITIATIVES SENT TO BOCC TONNAGE FEES – Mike Powley, BOAT RAMP FEES – Debra Brisson Mike Powley, County Engineer, explained that Don West had prepared a memo to the attorney requesting information on tonnage fees. The memo and answer are attached. Because our port is held in private ownership, the County is not able to impose any fees. Ms. Outlaw added that Port St. Joe is in a similar situation. All other ports in Florida are publicly owned. Mr. Hensley thanked Mr. Powley for the report. Ms. Brisson, Parks and Recreation Director, provided information from a memo addressed to Ms. Outlaw (see attached). In her department’s research, they learned that if you institute a fee collection system, you need to have an enforcement arm to ensure compliance. Because of the limited number of County boat ramps and the total number of parking spaces, the cost of enforcement is projected to exceed the revenue. Mr. Hammer is concerned about return on investment. He doesn’t feel it would be a heavy burden to issue citations for infractions. It could be additional revenue for the County for their investment. Ms. Brisson answered that you could set the rates to make the system viable. The question is if it is a policy you would want to consider. It is estimated that one patrol person would exceed the cost of the permits. Mr. Kurek asked if part of the current charge for stickers is for ramp improvement. Ms. Brisson answered that it is. Mr. Hensley asked if they were state fees. Ms. Brisson said some of the money comes back to the County. The State sets the fees. Mr. Hensley thanked Ms. Brisson and her department for the information. UPDATE ON EMPLOYEE CLINIC – Wayne Teegardin Mr. Teegardin showed a PowerPoint presentation (see attached). The County acquired the old Chamber of Commerce building across the street from the Administration Building. Permit and renovation issues were discussed. Mr. Mundt asked about the prescription drugs. Maintenance prescriptions would be picked up there. There would be no co-pays or deductibles and employees would not be required to clock-out for appointments. Mr. Lounds asked if the Constitutional Officers and Sheriff’s Office will participate. Ms. Outlaw answered that the Sheriff has his own contract. They have not discussed the opportunity with the State Attorney’s Office. Fort Pierce Utilities has expressed interest. When things are running smoothly, others can be added. Mr. Lounds asked about the Fire Department. Ms. Outlaw believes the Fire Department has joined the contract with the Sheriff’s Office. Mr. Lounds believes the more people, the more beneficial. Ms. Outlaw thinks that Mr. Anderson met with several groups when he started the project. Each entity Citizens’ Budget Committee August 20, 2010 Page 6 looked at their situation to determine what was best for them. She is hoping the savings will prohibit increases in the medical costs and they can pull in other agencies. Mr. Mundt asked how it is funded. Ms. Outlaw answered that it is the Health Insurance Fund. Ms. Ferrick asked about the staffing doctors and specialized doctors. Mr. Teegardin answered that employees must be enrolled in the current health plan in order to use the clinic. There will be a family practice physician and nurse practitioner on site. They would be referred to a specialist if needed. Mr. Culverhouse asked about the City of Fort Pierce being offered a chance to join the group. Mr. Teegardin said there had been discussion. Because of the lag in getting the project started, the discussions had been shelved. They intend to reopen the discussions. Mr. Kurek asked about hours of operation. Mr. Teegardin answered that they plan to be open a couple evenings and Saturday. Ms. Outlaw added that it would be a half day on Saturday. Mr. Kurek asked about penalties for not using the clinic. Mr. Teegardin explained that there are co-pays to visit your doctor. There will be no co-pays for the clinic. Mr. Kurek asked about lab work. Mr. Teegardin answered that most lab work will be sent out. It may be added at a later date. Carehere is also the provider for the City of Port St. Lucie. If an employee lives closer to the Port St. Lucie facility, they may go there. The cost coding has been worked out. Mr. Kurek was impressed. OTHER ISSUES Ms. Ferrick had a handout for the members (see attached). Ms. Outlaw appreciates input from the Committee, but she took exception to some of the statements and asked that Administration be given the courtesy to present the other side of the story. She gave examples of a couple of the issues and her philosophy of performance reviews. Ms. Ferrick told how she got her information and that she had discussed it with some Commissioners. She is concerned about morale. Mr. Mundt asked that the discussion be tabled. Ms. Outlaw wanted the Committee to know that she runs an open-door operation and takes responsibility for what she puts in practice. Mr. Hensley said they are concerned about morale of employees, but their job is the budget and they need to stay on that topic. Mr. Knaggs asked how the memo would be dealt with. Mr. Hensley said they could discuss it at the next meeting if there is a factor that affects the budget. Mr. Knaggs asked how the minutes are sent to the Commissioners. They are being emailed to the Commissioners’ Aides when they are sent to the Committee members. Mr. Kurek asked about the topics to be discussed at the next meeting. Mr. Satterlee volunteered to report on what the Planning and Development Department is doing to expedite permits if Ms. Outlaw approved. Citizens’ Budget Committee August 20, 2010 Page 7 ADJOURNMENT Mr. Hensley thanked the members and adjourned the meeting at 8:50 a.m. Respectfully submitted by: Brenda Marlin The next CBC regular meeting will be held on Friday, September 17, 2010, at 7:30 a.m., in Conference Room #3, at the St. Lucie County Roger Poitras Administration Annex.