Fort Walton Beach Council minutes — 05-19-09 special minutes — reading text

187 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA MAY 199 2009 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, May 19, 2009 at 5: 30 p.m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes; Virgil Miller; Dennis Reeves; Bill Garvie, Bobby Nabors; Bill Patterson; and Dick Rynearson Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors. PURPOSE The purpose of this meeting is for Staff to provide Council with an analysis of projected revenues for FY 2010, and request policy direction to complete the budget process. CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, and then state his or her name and address for the record. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Reeves moved to approve the agenda as presented. Mr. Patterson seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. BUDGET POLICY ISSUES The City Manager gave an overview of the process that was followed in the budget preparation, and advised that Council members were interviewed individually by the Budget Committee to determine what they wanted to see or not see included in the budget and to identify any ideas they might have. He informed that as a result of the individual interviews, it became apparent that public safety, quality of life, and retaining levels of service were of prime importance, and it became clear that there was no interest to increase ad valorem taxes or fees. He said these factors became the goal of Staff to preserve existing levels of service and to ensure the taxpayers would not be affected by any shortfalls. The City Manager continued that each City department was asked to provide an 8% reduction in expenditures, but it became clear that levels of service would be reduced in some departments and the City's organizational chart was analyzed to examine efficiencies and identify redundancies, duplication of services, and unnecessary programs. 188 Special Council meeting 5 -19 -09 BUDGET POLICY ISSUES cont. The City Manager continued that in the past, to achieve a reduction in force the City has relied on the elimination of positions that were unfilled, buyouts of employees for early retirement, or early retirement incentive programs, and a number of unfilled positions eliminated were field positions in which the labor used to sustain established levels of service was let go, but in this budget cycle, this is not the case. Charlotte Dunworth, Budget/Grants Manager, discussed the objectives of this evening' s meeting, including assisting the City Council in understanding the City's available revenue sources and plan of operation and allow revisions as desired; establishing service levels and funding mechanisms in accordance with the priorities of City Council; ascertaining Council' s position on policy issues critical to developing the fiscal year 09/ 10 budget given the fiscal constraints; and preparing a balanced budget that matches ongoing expenditures with ongoing revenues, provides maintenance of current infrastructure, and maintains prudent cash reserves. Ms. Dunworth discussed economic indicators, revenues through ad valorem taxes and user fees; expenses to include personnel and wages, benefits to include medical and the three pension plans; operations and maintenance, capital and capital outlay, improvements. Also discussed were the fiscal year 09/ 10 budget goals to align operations with current economic conditions; streamline personnel and operations to improve efficiency; maintain current service levels, especially in public safety; use excess fund balance for non -recurring expenses; and use salary and /or benefit reductions as a last resort to balancing the budget. Ms. Dunworth concluded the presentation with the policy decisions needed to assist staff in developing a budget. Council' s guidance on the following policy decisions is needed to assist staff in developing a FY 09/ 10 budget: Severance/Termination Pay; Reorganization Position Eliminations; General Fund Reserves; Outside Agency Funding; Legislative Support; Interfund Transfers; Water Meter Replacement; GIS Mapping; Tipping Fees; Compensation Alternative; Medical Insurance Contribution; and Salary Reductions. It was noted the clearer the guidance provided by City Council the more effective the City Manager can be in developing a budget that will be acceptable to Council. The Mayor opened the floor for questions from Council and the public on the presentation so far. As there was none discussion began on the policy decisions. Severence/Termination Pay Policy Decision: Should the City offer severance pay to employees whose positions are eliminated? The presentation included information that the labor attorney has opined the City Manager is authorized to provide severance pay to employees who are terminated as a result of lay off, reduction in force, or elimination of their position; the public purpose of severance pay is to provide a smooth transition between the employer and employee; the positions recommended for elimination or reduction in hours are those that would least impact the operation and service delivery to the community; employees will be required to sign a severance agreement in order to receive severance benefits; and accrued sick and vacation leave would be paid consistent with current personnel rules and regulations.  Special Council meeting 5 -19 -09 189 BUDGET POLICY ISSUES cont. Severence/Termination Pay cont. Staff recommendation is to endorse severance pay through a severance agreement for employees who positions are eliminated as a result of improvements to organizational efficiency and effectiveness, to include 1) eight weeks of regular wages; 2) 100% payment of dental and medical premiums through September 30, 2009; and 3) accrued sick and vacation leave ( consistent with current personnel rules and regulations). The Mayor opened the floor for public input. Missy McKim, 342 Brook Street SE, asked Council to recognize the loyalty and work of the individuals terminated, said the severance pay is the minimum that needs to be done to show appreciation and respect for the work done, and spoke about the successes in turning a floundering CRA and a failing downtown around and other programs initiated during her ten year employment. She requested Council first, extend the administrative leave for two weeks from tomorrow for each of them to review the document they will be signing; second, waive the early retirement penalty of 3% per year; and third, vest Kelly Scott for retirement who is 13 months short of being vested. Kelly Scott, 415 Sherry Circle, said she has worked for the City for nine years as a loyal, dedicated employee and is disappointed that her future is being taken away. She asked Council to think about it and give them something, especially their retirement they have worked so hard for their future. Millie Thrush, 316 Sudduth Circle, described her involvement with the City over the years, stated she understood why the CRA and MPB should not be one and the same, and expressed her hope that the CRA is not abolished. She spoke highly of Ms. McKim and Ms. Scott and expressed hope that they will be treated fairly. Samantha Abell, Sr. Planner, spoke highly of Ms. McKim' s integrity and expressed her pleasure with having worked with Ms. McKim and Ms. Scott Glenda Glover, 115 Waynell Circle, mentioned there are rules and laws at the state, county and federal level that the planning department has to follow and the City is going to lose a huge part of what they have to know to carry out those laws. She spoke highly of the service Joe Menda and all employees have given the City. As no one else wished to speak, public input was closed. Mr. Miller moved to endorse the following severance pay through a severance agreement for employees whose positions are eliminated as a result of t == improvements to organizational efficiency and effectiveness, to include 1) eight weeks of regular wages; 2) 100% payment of dental and medical premiums through September 30, 2009; and 3) accrued sick and vacation leave ( consistent with current personnel rules and regulations). Mr. Rynearson seconded motion. Mark Wiltsie, Administrative Services Director, clarified that the individuals receiving the severance agreement will have 45 days to review the agreement and following execution of the agreement, they will have seven days to rescind their execution of the document, so they will have a total f 52 days to make a decision. 190 Special Council meeting 5 -19 -09 BUDGET POLICY ISSUES cont. Severence/Termination Pay cont. Mr. Wiltsie also explained in order to consider the request to waive the 3% a year penalty requirement and to provide additional credited service for Ms. Scott would require an ordinance amendment to the current General Employee' s Pension Plan. He confirmed it would be difficult to amend the Plan for one individual. The Mayor called for the vote on the motion to endorse the following severance pay through a severance agreement for employees who positions are eliminated as a result of improvements to organizational efficiency and effectiveness, to include 1) eight ( 8) weeks of regular wages; 2) 100% payment of dental and medical premiums through September 30, 2009; and 3) accrued sick and vacation leave ( consistent with current personnel rules and regulations). and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Reorganization and Position Eliminations Policy Decision: Should a reorganization and position eliminations occur to improve efficiency and reflect current economic conditions? The presentation included information that reorganizing the Public Services Department into the Engineering Services and Utility Services Departments would result in position eliminations ( Public Services Director, Development Services Director, Current Planning Manager, Planning and Zoning Clerk, and Facilities Superintendent), and one position, the Neighborhood Improvement Coordinator would be reclassified to a Staff Assistant