Okaloosa County BOCC — October 7, 2014 — Aug. 12, 2014, budget workshop — reading text

August 12, 2014 Budget Workshop A Fiscal Year 2014-15 Budget Workshop of the Okaloosa County Board of County Commissioners was called to order at 6:00 p.m. at the Water & Sewer Administration Building in Fort Walton Beach. Members present were Charles K. Windes, Jr., Chairman; Nathan Boyles, Vice Chairman; Wayne Harris; Dave Parisot; and Don Amunds. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk’s Office; Ernie Padgett, County Administrator; and representatives of the media. Water & Sewer System Mr. Jeff Littrell, Water & Sewer System Director, opened his presentation with a graph showing full-time positions at Okaloosa County Water & Sewer (OCWS) from FY 2008 through FY 2014. He said 21 positions were cut from 2008 to 2013 and in hindsight, he believes the cut backs went too far. Mr. Littrell said he is requesting the following positions to be added in the coming fiscal year: full-time vacuum truck operator and two part-time service representatives. Next, Mr. Littrell detailed the following projects: e Newcastle Area Water Main improvements; $450,000 e Bob Sikes Industrial Park Tank; $2.75 Million e Brooks Bridge Water Main bore; $1.2 Million e Bores for Poquito Bayou Water Main; $160,000 and Force Main; $125,000 e Camp Rudder Wastewater; $1.6 Million (funded by USAF) e Arbennie Pritchett WRF Expansion; $13 Million Mr. Littrell completed his presentation with a slide listing other projects slated for FY 2015, as well as other major projects in CIP out-years. Airports Mr. Sunil Harman, Airports Director, distributed copies of his presentation, saying it is important to understand the nature and performance of Airport operations. His slides covered the following topics: e Historic enplanement activity for 2008 through 2014 August 12, 2014 -1- Minute Book 71, Page 212 Okaloosa County Board of County Commissioners e Operating Revenues and Expenditures period 2008 through 2014 e Operating revenues and expenditures for 2008 through 2014 e Airline revenues and percentages of total operating revenues for 2008 through 2014 e Chart of costs per enplaned passenger for 2008 through 2015 (estimated) e Northwest Florida Regional (VPS): slides and charts for revenues, expenditures, and budgets for FY 2012 through FY 2015 projected budget e Operating expenses, revenues and bottom lines for all three airports e Benchmarks for 2013 Mr. Harman reported declining fuel sales at the Destin and Bob Sikes Airports. He addressed forensic audits of the FBOs and stated the Airports Department has enough reserves for 491 days. Mr. Harman said he must have manpower and cannot continue to cut this budget. Tourist Development Department & Emerald Coast Convention Center Mr. Ed Schroeder, Tourist Development Department (TDD) Director, stated because there is only one cost center, his presentation will address both the TDD and Emerald Coast Convention Center (ECCC) . He shared the vision for TDD is to establish Okaloosa County as the top travel destination on the Gulf Coast. Mr. Schroeder reviewed accomplishments in the following areas: Beaches and Parks, Tourist Development, Film Commission, and Convention Center. A series of charts and graphs were provided for: e FY 2015 Revenues e Revenues for FY 2014 budget compared to FY 2015 budget and percentage of change e FY 2014 Expenditures e Expenditures for FY 2014 budget compared to FY 2015 budget and percentage of change e Personnel: Currently 41 authorized positions (35 full- time, 6 part-time) and a request for two new positions in Fy 2015 e Operating Costs e Promotions August 12, 2014 -2- Minute Book 71, Page 213 Okaloosa County Board of County Commissioners e Media Plan RECESS - The workshop was recessed at 7:40 p.m. and reconvened at 7:45 p.m. Mr. Schroeder continued his presentation on: e Capital Projects e Grants and Aids e Interfund Transfers e Debt Service e FY 2015 Reserves e FY 2015 Goals and Marketing Tactics Comments from County Administrator Mr. Padgett stated the budget staff continues to fine tune the budget. He said Walton County needs to step up with its contribution for Medical Examiner facilities. A copy of an email between Jeff Martin, Director of the Medical Examiner’s Office, and Melissa Thomason, Finance Manager for Walton County BCC, was provided for a follow-up on this issue. Mr. Boyles stated he would like to work on an interlocal agreement for next year. A slide entitled “$700,000 Reserve Increase Elements” was provided. Mr. Padgett detailed these areas of revenues and/or Savings which can be used to increase General Fund Reserves. Upon inguiry by Mr. Harris, Mr. Padgett stated these funds will increase the percentage of the General Fund Reserves from 4.3% to just under 5%. Mr. Harris asked if the optimum percentage is %, to which Mr. Padgett responded that is the number auditors like to use. Discussion ensued regarding the amounts which have been pulled from Reserves, cash carryforward and possible re-allocation of cash carried forward. Mr. Boyles shared his concerns about the lack of depth in the Administrator’s office and consideration of restoring the Assistant County Administrator position. He asked the County Attorney if a prorata share of General Fund Reserves for the coming year could be assigned to enterprise departments. Mr. Stewart replied that prorata allocations are based on services rather than reserves. August 12, 2014 -3- Minute Book 71, Page 214 Okaloosa County Board of County Commissioners Mr. Windes stated he does not want to rule out whether a Deputy Administrator or Compliance Officer is needed but’ that consideration could wait until the new Administrator comes on board. Mr. Padgett referred to the capital projects list presented by Facilities Maintenance Director Don Turner in a prior workshop. He said Board direction will be needed on these items. Jail: $188,000 Central Control 7,000 Replace doors 11,000 Pod repairs 18,000 Tankless hot water heaters 16,000 Sally Port doors 60,000 Razor wire Upon inquiry by Mr. Harris, Mr. Turner stated there was a design flaw in the copper lines to the current tankless hot water heaters which requires replacement. Various locations: $ 50,000 old Crestview Hospital roof 35,000 remodel old Ag Ext Office 125,000 renovation of old FWB Hospital 26,000 generator for EMS, Essex Road 7,000 replace windows, GAL Office 40,000 new generator, N. Public Works Mr. Padgett stated Mr. Turner requested $250,000 for the roof at the old Crestview Hospital. He said the recoating of the roofs should be done as necessary. Mr. Padgett pointed out if the old Agriculture Extension Office is remodeled, it can be used for another county department. Mr. Boyles replied he has no objection to remodeling but recommended the item be placed ona future Board agenda when it is more thoroughly vetted. He pointed out the Ag Building on Old Bethel Road is not centrally located like the Crestview Courthouse and Brackin Building. Mr. Boyles felt the building should not be remodeled until a decision is made about what department or departments would be relocated there. Mr. Turner stated a space must be created for the Clerk's Contracts & Grant Department to be moved from the Water & Sewer Administrative Building. Mr. Boyles said perhaps the County should buy the Water & Sewer Building and that would solve some problems. Upon inquiry by Mr. Padgett, Mr. Boyles recommended the dollars remain in the budget but said no money should be spent until the Board decides what department goes in that building. Crestview Courthouse: S$ 7,000 roof 10,000 duress system August 12, 2014 -4- Minute Book 71, Page 215 Okaloosa County Board of County Commissioners Mr. Turner remarked the current duress system is partially defective. Mr. Boyles stated we want to keep the judges safe but he does not want to spend $10,000 now and another $20,000 later on the system. He said there must be a close check on this process with the design team. Mr. Amunds stated he cannot support $70,000 ($10,000 Crestview; $60,000 South County Judicial building) in total costs for this system. Mr. Boyles recommended we take these individually. Upon inquiry by Mr. Parisot, Mr. Turner said he did not know if court fees could be used aS a revenue source to fund these improvements. Mr. Stewart advised he will look at the legality of that option. South Judicial: $20,000 locks and card readers 65,000 chiller emergency power 60,000 mass notification system Mr. Harris asked if the locks and card readers are more “want” or “need.” Mr. Turner replied they are a useful tool when opening doors to move inmates. He added the wrong type of lock was put on the doors. Mr. Turner stated they don’t want any inmates to get away. Mr. Amunds assured him they are not going to get away. Mr. Boyles suggested direction be given by motion. Mr. Stewart responded that he believes that is appropriate. Mr. Boyles made motion to approve the $20,000 allocation for locks and card readers. Motion fails for lack of a_ second. Mr. Padgett stated that will be cut from the budget. Mr. Boyles made motion, seconded by Mr. Amunds, to approve the $65,000 allocation for the chiller transfer emergency switch. 5 yeas. Mr. Boyles made motion, seconded by Mr. Harris, to strike the $60,000 allocation for the mass notification system. 5 yeas. State Attorney: $60,000 carpet (south office) 88,000 elevator (south office) Mr. Padgett reported he has been on site and spoken with the State Attorney’s representative and he feels both of these expenditures are appropriate. He noted there is an ADA compliance issue with regard to the elevator. Mr. Boyles made motion, seconded by Mr. Amunds, to approve these two expenditures. 5 yeas. Public Comment - None. August 12, 2014 -5- Minute Book 71, Page 216 Okaloosa County Board of County Commissioners ADJOURNMENT There being nothing further to be discussed, the workshop was adjourned at 9:20 p.m. DON W. HOWARD CHARLES K. WINDES, JR., CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) August 12, 2014 -6- Minute Book 71, Page 217 Okaloosa County Board of County Commissioners