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HomeMy WebLinkAbout10 15 10Minutes CITIZENS’ BUDGET COMMITTEE Meeting Date: October 15, 2010 Conference Room 3 Meeting convened at 7:30 a.m. MEMBERS PRESENT: Carl Hensley, Chair Craig Mundt Richard Pancoast Edith Hepburn Edward Lounds Patricia “Pat” Ferrick Bill Hammer Ron Knaggs John Culverhouse Patti Tobin Jay L. McBee Randy Ezell (7:32) MEMBERS ABSENT: Ryan Strickland Dan Kurek Dana McSweeney OTHERS PRESENT: Lee Ann Lowery Fritz Georges Don West Jennifer Hill Marie Gouin Linda Cox Kathryn Hensley Mark Satterlee Mike Monahan John Ferrick Michael Quinn Robert O’Sullivan Jim David Eva O’Donnell Beth Ryder Audrey Jackson CALL TO ORDER Mr. Hensley called the meeting to order at 7:30 a.m. TH APPROVAL OF MINUTES – SEPTEMBER 17 MEETING Mr. Mundt made a motion to approve the minutes. The motion was seconded and unanimously approved. UPDATE: SMALL BUSINESS CONCERNS; CODE REGULATIONS & PERMITTING PROCESS – Linda Cox, Executive Director, Chamber of Commerce Ms. Cox thanked the Committee for having her. She reviewed the Committee’s concerns and told them she had met with Ms. Outlaw and Larry Pelton earlier in the week. They are Citizens’ Budget Committee October 15, 2010 Page 2 going to create a task force to look at the permitting process. They wanted to invite someone from the Committee to sit on that task force. Ms. Outlaw had volunteered Mark Satterlee to join them. They will use the Chamber’s Governmental Affairs Committee to recruit additional members. They will review the process to see where they can make things easier for businesses to move forward with expansion. One thing they discussed was to defer compliance of codes not related to health and safety. The Chamber, Economic Development Council (EDC), St. Lucie County and Workforce Solutions have a program called BRE which stands for Business Retention Expansion. She feels it has not been as effective the last couple years because of software and server tools. They met a month ago to retool what they are doing. She thinks it will be easier to identify businesses that are ready to expand, but need some help. She hopes to have the first meeting of the task force within 30 days. Mr. Mundt volunteered for the position. Ms. Ferrick asked if Ms. Cox would advise the Committee of the meeting times. Ms. Cox will contact the secretary. Mr. Lounds asked if the situations of the banks affect the issue. Ms. Cox answered that it may be another issue. As they go through the procedure, they hope to identify businesses that have gone through the process so they can hear first-hand what the challenges were. They hope to have someone from the banking industry on the task force. Mr. Hensley asked about deferring compliance. Ms. Cox answered that it would be part of what they look at. She gave an example of a company that had to put a wall around their dumpster in order to expand. It was expensive and did not affect expansion. They will not know what they can or can’t defer until they get into the process. They want everything to be safe and make sense. Mr. Mundt gave an example of not obtaining a Certificate of Occupancy (CO) until the sidewalk is complete. Mr. Hammer asked if the Chamber works with an expanding business to see if our current workforce could be upgraded to meet the need. Ms. Cox explained that when she refers to expansion she means a business that is currently operating in St. Lucie County not recruitment. Mr. Hammer said it would apply if the expansion requires additional staff and they had special needs. Ms. Cox said it would be identified through the BRE program. They do an assessment. Mr. Hammer expressed his confidence in Ms. Cox. Mr. Lounds asked when the meetings would occur. Ms. Cox does not know. She hopes the first meeting will be within 30 days. They got some volunteers from the Governmental Affairs meeting earlier in the week. She wants to send a notice to her Board. Mr. Lounds asked if the first meeting is a planning meeting or would she want businesses that are trying to expand to attend the meeting. She is open to having a business trying to expand attend the meeting. She definitely wants someone who has been through the process to educate them. They can contact Ms. Cox for information. She hopes to have seven to 11 folks on the committee. She does not know who will be on the committee yet. Mr. Satterlee suggested there be a design engineer on the committee. Ms. Cox hopes to also have a land use attorney. UPDATE ON REALIGNMENT – Lee Ann Lowery Citizens’ Budget Committee October 15, 2010 Page 3 Ms. Lowery said they are still in the process of taking 18 departments down to nine. It has been a challenge to do it parallel to the budget process. Occasionally, the two cross. She thinks they are through the messiest part. She referred to the attached memo. By working together Environmental Resources and Cooperative Extension will be able to provide some educational outreach programs. They are delaying a small capital project to keep one person on staff for a year while trying to obtain a grant. The savings from the Housing and Community Services consolidation are primarily from the libraries reduced schedules. Grant funding was identified for some housing positions. Ms. Lowery thinks they have found some synergies. All of the changes have a domino effect. All the former directors and some managers had to take a pay cut. Sometimes the reorganization had to shift because of budget cuts. Parks and Recreation and Central Services are both staff and equipment heavy. They are finding synergies relating to use of staff and maintenance of equipment. The goal is to get the north and south manager familiar with each other’s facilities. It is not unusual for budget and personnel departments to report to the top administrator. Phase IV will be more complex. When the alignment is completed the Public Works Department’s annual budget will be $83,000,000+. They have already identified some opportunities. Mr. West added that they have seen some opportunities with maintenance of heavy equipment for Solid Waste and Road and Bridge. They are getting a better system for inventories and scheduling. Ms. Lowery said the reorganization is painful, but they are finding some synergies and opportunities. She credits staff. They could have taken a hands-off approach. But the Directors have tried to bring the combined departments together. Mr. Lounds asked when it would be completed. Ms. Lowery said mid-November. Mr. Lounds asked the total savings. Ms. Lowery answered over $2 million. Mr. Lounds said it still would not be enough for 2013. Ms. Lowery said most of the savings were already figured in FY11’s budget. Mr. Mundt asked if Grants moved to Human Resources with Mr. Hoeffner. Ms. Lowery answered that Grants will be combined with OMB. Mr. Hoeffner is the interim Human Resources Director. That position is posted. Grants will stay with Ms. Gouin. Mr. Knaggs asked what is done on a monthly basis to check performance. How do you compare budget to actual? Ms. Lowery answered that everything starts with the plan. The budgets were consolidated. OMB and the Directors monitor the budget. Most of the departments have fiscal accounting people that pay their bills. Ms. Gouin’s analysts are divided by departments. So there is a second tier of monitoring. Mr. Knaggs thinks the budget should be monitored and driven down. The boss would have to be involved on a Citizens’ Budget Committee October 15, 2010 Page 4 frequent basis. Ms. Gouin said the Directors meet monthly with an Administrator. Ms. Lowery added that all the Directors know the goal is to save money, which saves jobs. Most of the operating budgets are down to what it takes to get things done. She has had to intervene between Directors arguing over who should pay. There is no fluff in the operating budgets. She gave credit to the departments. If they see a way to save a program, they are doing it. They are very aware of what is coming. Mr. Knaggs hopes the fresh eyes of new Directors would be an advantage. He asked about the system for red flags. Ms. Lowery answered that a new Purchasing Policy Manual was recently approved that places more responsibility on the Director and Administration. There are guidelines for the process to change things in the budget that was approved. If there is an unexpected cost, something else has to go or it has to come from the Board’s Contingency Fund. It would have to go to the Board for approval and nobody wants to go to the Board for money from Contingency. Ms. Gouin added that an example from government would be a piece of equipment, such as a mower, going out. If they cannot get the job done, they have to justify it and go to the Board. There is an allocation for Contingency on an annual basis. Ms. Ferrick has a problem with consolidating Parks and Recreation and Central Services. She thinks Central Services should be stand alone. She thinks there is too much responsibility placed on one person. Ms. Tobin said Port St. Lucie has been doing it successfully for years. Mr. Mundt asked about the next step for addressing the shortfall for 2013. Ms. Lowery answered that one of the topics for November is Preparation for FY 12 Budget Process. It is pretty much a constant process now. It is stressful for staff. But we can’t let go. Mr. Mundt asked about Strategic Planning with the Board. Ms. Lowery said it always starts at staff level. They try a bottoms-up approach. The ones who know the front-line best can make suggestions. They get better information on the impact. Mr. Mundt asked it they would see it while in process. Ms. Lowery is sure they will. Mr. Lounds asked how County Administration is monitoring staff’s ability to provide services to the community. Certain things are not being done or being done differently as a result of so many being let go. Ms. Lowery said the tendency is to cut the budget but not the services. She praised Ms. Outlaw for being very clear with the Committee and the Board that there will be cuts to services. Every time a cut was proposed, the impact was identified. She has been supportive of the cuts to services that Directors have proposed. They have been trying to balance it. She gave the example of Pack it Out Parks. Ms. Lowery sees staff not wanting to let go. They want to continue the services. Mr. Lounds asked if there was much push-back in other departments. Ms. Lowery said she wouldn’t call it push-back but the reduced hours in the libraries have resulted in communication. Citizens have offered assistance. They are trying to raise the money. There was an excellent bid for the expansion of Hurston Library, but the expansion comes with larger operating costs. The Friends of the Library have agreed to fund the extra costs for two years if the County goes ahead with the expansion. She wouldn’t call it push-back but willingness in some cases to try to make a difference, not just complain. This is real. Citizens’ Budget Committee October 15, 2010 Page 5 Money can’t be found in the General Fund. Mr. Lounds asked what happens if you have to replace a culvert. Mr. West answered that they work with OMB. First they look at reserve funds. They have been able to get through some past years, but that is becoming more difficult. Ms. Lowery added that it pushes something else back. Transportation Trust Fund dollars are scheduled, but emergencies push things back. Ms. Ferrick said the ditches along Midway Road corridor have not been maintained. That is the main drain for water in St. Lucie County. Over 50%, by gravity flow, goes into the North Fork. If the ditches are not cleaned, it will flood everybody. She brought it to the attention of a couple Commissioners. She knows we are cutting back, but for the health and safety of the people of St. Lucie County the ditches had better be cleaned. We have been fortunate that we have not had a tropical depression. She is very concerned about the danger. Ms. Ferrick expressed her concern about Pack it Out Parks. She thinks there will be health and sanitary issues. Other countries and the nation are not the same as St. Lucie County. Ms. Lowery told of a community that was concerned about their neighborhood park and offered to help. Ms. Brisson is meeting with their Homeowners Association (HOA). Mr. Lounds said they would become aware of what it takes. Mr. Mundt asked if the Historical Museum is on track to reopen. Ms. Lowery said it is. They are hoping to finalize the agreement next week. Attorneys have delayed the process. Ms. Lowery explained the inventory process. There will probably be some training days before the facility is turned over to the Historical Society. Mr. Mundt asked if there is any County staff oversight. Ms. Lowery answered that there will not be staff onsite. Ms. Brisson and the gentleman who maintains the Marine Center will be around. Ms. Ferrick asked about the photographs being maintained. Ms. Lowery explained that the History Center and the contents are still property of the County. The Historical Society is keeping the doors open through volunteers. They have appointed a couple Directors to provide oversight. They will be responsible for opening and closing the facility. Mr. Culverhouse believes the photographs are digitized. A camera security system is being installed. Mr. Hensley asked about the liability of turning over the libraries, beach cleaning and Historical Center to volunteers. Ms. Lowery said they are doing a Facilities Use Agreement with a non-profit for the Historical Center. The group will provide insurance. The County asked them to check on insurance on the contents. It was prohibitive. Mr. Culverhouse added that some of the items are on-loan. Ms. Lowery agreed and added there are thousands of items owned by the County, some not on display. Ms. Ferrick asked about the agreement. Ms. Lowery will provide a copy to the Committee. Ms Lowery has been working with Nancy Bennett and she has done a good job. Mr. Culverhouse said keeping the museum open will help to keep the contents safe. Mr. Hensley said the only advantage he has heard is saving money. He asked about the Citizens’ Budget Committee October 15, 2010 Page 6 disadvantages. He questioned if the County should be giving up control. Ms. Lowery said if there is a group like the Historical Society that would like, rather than close it or reduce the service, to try, she thinks it is worth the effort to try. There is no guarantee that it will be successful. Some work great, some not. But she feels that she has an obligation to try. We are still responsible for the Historical Center. The obligation of maintaining the building and the grounds would remain even if the doors were closed. Mr. Mundt added that the UDT Seal Museum has been operating with a Facilities Use Agreement with the County for 25 years. It probably was the model and has worked well. Mr. Mundt gave kudos to County staff for maintenance. Ms. Ferrick expressed her concern about young children in parks where the restrooms are closed. Ms. Lowery clarified that not all parks are being changed to Pack it Out Parks. There are 10 and they are neighborhood parks. They are within walking distance of the neighborhoods they serve. Only four of the 10 have restrooms that are being closed. One of the four, Maravilla, is being turned over to the City of Fort Pierce in January. UPDATE ON FY11 FINAL BUDGET ADOPTION PUBLIC HEARING – Marie Gouin Ms. Gouin informed the Committee that the Board adopted Option 1, which is the amount that was on the Truth in Millage (TRIM) notices and what the Committee recommended. That generates about $11.2 million all together; $1.5 million will be put in reserves for FY12. Over $8 million will be used to balance the Fine and Forfeiture Fund. Mr. Pancoast asked if that was one year’s number. It is, so there will be a double impact. OMB is doing closeout so the final number has not been trued up. They hope to have the number for Ms. Outlaw’s presentation in November. Ms. Outlaw is looking for ideas for next year. Mr. Knaggs asked if they will have a new estimate from the Property Appraiser’s office for the November meeting. Ms. Gouin will check. She did check before the public hearing. Mr. Rahal said at the time it still looked like five to six percent to him. OTHER ISSUES Mr. Knaggs asked if there is a review of the County’s surplus assets. Ms. Lowery answered that items are being identified for a possible spring auction. The Property Appraiser and Tax Collector may be involved. Mr. Knaggs asked about real estate. Ms. Lowery said most of the real estate was purchased with a grant. If they sell it, the money goes back to the State. Most of it came with obligations. There are some surplus lots that they are trying to get rid of. Some are not buildable. It was recommended by the Blue Way Committee to let one property go back to the State because of maintenance. The State doesn’t want it back. Some grants are being renegotiated. Mr. Lounds expressed his thanks for what the Board, Sheriff’s Department and the School Board did to resolve some School Resource Officer issues. He is glad all three groups have a vested interest. Citizens’ Budget Committee October 15, 2010 Page 7 Mr. Lounds asked Ms. Lowery to bring them up to date on the health clinic based on the current number of employees versus 1,000 employees. We are moving ahead and revising the figures. Ms. Lowery will get an update. Mr. Lounds asked if any other groups had joined to increase the numbers. Ms. Ferrick expressed her support for Amendment 4. She feels no one is explaining why folks should be supporting the amendment. Mr. Lounds disagreed. There was discussion on the amounts of acres the County should have. Mr. Knaggs announced the meeting the League of Women Voters has scheduled to discuss the issue. Mr. Hammer said the County has a lot of investment facilities and properties. Is there potential to lease them privately? He thinks it should be explored. Ms. Lowery answered that they have looked at a couple properties. Many of the properties have restrictions. It is difficult for government to compete with the private sector. The County tends to offer office space to non-profits. Most of the space available is office space because of layoffs. Mr. Hammer was thinking about a southern county that installed parking meters at the beaches. Facilities may be able to be rented while retaining ownership. Ms. Lowery said we will be exploring revenue. It is a difficult time to increase fees. Mr. Hammer explained that he was referring to is a commitment from a private entity that would take it out of the County’s hands with a guarantee of sorts. Ms. Lowery said they are looking at that for the Airport property. We are not in the business of marketing property. They are looking at bringing in someone to help them try to lease out space at the Airport and the Commerce Park adjacent to the Airport. There is some surplus property near the Airport that the County has tried to sell. Mr. Hensley reminded the group to get out and vote. There will be an election before the next meeting. There will be one or maybe two new County Commissioners. Mr. Hensley thanked staff and the Committee members for their time. ADJOURNMENT Mr. Hensley adjourned the meeting at 8:32 a.m. Respectfully submitted by: Brenda Marlin The next CBC regular meeting will be held on Friday, November 19, 2010, at 7:30 a.m., in Conference Room #3, at the St. Lucie County Roger Poitras Administration Annex.