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

floor for public input. As no one wished to speak public input was closed. Mr. Rynearson moved to continue the current interfund transfer policy. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Mr. Miller moved to continue to forgive the Golf Fund' s share of the Cost Allocation Plan in FY 2009 -101 if necessary. Mr. Garvie seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Water Meter Replacement Policy Decision: Should Utilities Fund reserves be used to fund water meter replacement? The presentation included information that the unrestricted net assets balance in the Utilities Fund is anticipated to be $ 6.237 million on September 30, 2009; that the water loss ratio has increased from an average of 13% between FY's 1998 to 2007 to 19% YTD in FY 2009; that replacing all 9,860 water meters with current revenues would take up to that staff estimates $ 1. 5M to replace the existing touch -wand meters with seven years; radio -read and benefits include accurate readings and increased revenues, meters; decreased maintenance costs, elimination of one meter reader position, and all meters being under warranty for the same time. Staff recommendation is to appropriate up to $ 1. 3M from reserves ( in addition to the FY 2007 -08 carryover and FY 2008 -09 budget funds) to fund replacement of all touch -wand water meters with radio -read water meters in the current year, with staff performing the installation. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Garvie moved to appropriate the appropriate amount from reserves ( in addition to the FY 2007 -08 carryover and FY 2008 -09 budget funds) to fund replacement of commercial customers of all touch -wand water meters with radio -read water meters in the current year, with staff performing the installation. Mr. Patterson seconded motion and it carried a vote of 5 to 2 with Miller, Reeves, Garvie, Patterson, and Rynearson in favor and Holmes and Nabors opposed. Special Council meeting 5 -19 -09 195 BUDGET POLICY ISSUES cont. GIS Asset Management cont. Policy Decision: Should the GIS Asset Management program be completed in- house? The presentation included information that in FY 2008 -09 City Council approved a budget of $ 300,000.00 to begin the field data collection phase of the GIS Mapping project - the first phase of the 5 -year, $ 1, 5M project, Staff can perform the project in -house with the purchase of 2 GPS units with sub -centimeter accuracy and 2 GPS handheld units with sub -meter accuracy at a cost of $ 80,000.00 ( from existing $ 300,000.00 budget funds), another $ 100, 000. 00 ( from existing $ 300,000. 00 budget funds) would be used in FY 2009- 10 for equipment/software maintenance and aerial photography, and the project would require future funding in the amount of $ 50,000.00 annually for software and equipment training and maintenance, as well as $ 50, 000.00 to update the aerial photography every three years. Staff recommendation is to appropriate up to $ 80,000 of the FY 2008 -09 $ 300, 000. 00 budget for CIP 5114 GIS Asset Management to purchase GPS equipment in the current year to collect the required field data for the potable water, sanitary sewer, and stormwater infrastructure systems;appropriate $ 100, 000.00 of the FY 2008 -09 $ 300, 000. 00 and budget for CIP 5114 GIS Asset Management in FY 2009 -10 for maintenance of the software and equipment and to partner with Okaloosa County to update the aerial photography as part of a recurring partnership. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Garvie moved to appropriate up to $80, 000 of the FY 2008 -09 $ 300, 000. 00 budget for CIP 5114 GIS Asset Management to purchase GPS equipment in the current year to collect the required field data for the potable water, sanitary sewer, and stormwater infrastructure systems; and appropriate $ 100, 000.00 of the FY 2008 -09 300, 000. 00 budget for CIP 5114 GIS Asset Management in FY 2009 -10 for maintenance of the software and equipment and to partner with Okaloosa County to update the aerial photography as part of a recurringpartnership. Mr. Miller seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Tipping Fees Policy Decision: Should the tipping fee component of sanitation rates be increased January 1, 2010? The presentation included information that the City's transfer and disposal agreement with BFI Waste Services stipulates the disposal prices per ton will increase 3% in January 2010; that according to the adopted fee schedule for garbage rates, " The Tipping Component of Fees will be adjusted automatically for any CPI adjustments passed onto the City ";the Enterprise funds should be self -sustaining with user fees covering the cost of providing the service; and the impact of this change for a typical residential customer with one container would be $ 0. 15 per month. Staff recommendation is to increase the tipping fee component of sanitation rates by 3% effective January 1, 2010 per our contract with BFI and in accordance with existing fee schedule language. 196 Special Council meeting 5 -19 -09 BUDGET POLICY ISSUES cont. Tipping Fees cont. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Reeves moved to increase the tipping fee component of sanitation rates by 3% effective January 1, 2010 per the contract with BFI and in accordance with existing fee schedule language. Mr. Garvie seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Compensation Alternative Policy Decision: Should a lump -sum payment be offered to general employees in lieu of a wage adjustment? The presentation included information that the cost of living adjustment is intended to ensure wages keep pace with inflation, the March 2009 CPI is 0.4% lower than a year ago, which means the cost of goods is nearly unchanged from a year ago; that an anniversary date increase is intended to reward longevity for support staff and performance for professionals and managers, a flat dollar amount would acknowledge employees' service without a permanentpay increase subject to future wage adjustments and pension contributions; a $ 300 payment would cost about $ 78,000. 00 ( excluding Charter Officers, Department Directors, union members, and seasonal employees); and adjustments affecting union members would have to be negotiated. Staff recommendation is to endorse a lump sum payment of $300. 00 ( grossed up to offset taxes) to each employee ( excluding Charter Officers, Department Directors, union members, and seasonal employees) on his /her anniversary date during FY 2009 -10 in lieu of a cost of living and /or step /merit wage adjustment. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to endorse a lump sum payment of $300.00 ( grossed up to offset taxes) to each employee ( excluding Charter Officers, Department Directors, union members, and seasonal employees) on his /her anniversary date during FY 2009 -10 in lieu of a cost of living and /or step /merit wage adjustment. Mr. Patterson seconded motion and it failed by a vote of 2 to 5 with Miller and Patterson in favor and Holmes, Reeves, Garvie, Nabors, and Rynearson opposed. Medical Insurance Contribution Policy Decision: Should the City's contribution to medical insurance premiums be modified? The presentation included information that the City pays 75% of employee and dependent medical premiums, but reduced its contribution to 50% of the dependent premium for new hires after October 1, 2008; a recent survey of local jurisdictions reveals that 78% pay 100% of the employee medical insurance premium, the remaining 22% either pay 90% or 92% of the employee portion, on average they pay 61 % of the premium for dependent costs; and reducing the City's portion of medical premiums ( consequently increasing the employee contribution) would reduce take -home compensation, especially since this shift would not be offset by a wage increase in FY 2009 -10. Special Council meeting 5 -19 -09 197 BUDGET POLICY ISSUES cont. Medical Insurance Contribution cont. Staff recommendation is to reduce the City's medical insurance dependent premium contribution from 75% to 50% and increase the City's employee premium contribution from 75% to 90% for employees who elect family coverage as a last resort to balancing the budget effective October 1, 2009. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to reduce the City's medical insurance dependent premium contribution from 75% to 50% and increase the City's employee premium contribution from 75% to 90% for employees who elect family coverage as a last resort to balancing the budget effective October 1, 2009. Mr. Garvie seconded motion and it failed by a vote of 1 to 6 with Miller in favor and Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson opposed. Salary Reductions Policy Decision: Should employees' salaries be reduced? The presentation included information that furlough — a reduction in the number of paid hours, may result in longer times to complete construction projects and service reductions e.g. less park maintenance, reduced library hours); that fewer paid holidays — Friday after Thanksgiving, employees required to work would see their pay reduced to100% instead of 250% but City operations would be more productive with the additional work day; that wage reduction —a reduction in hourly wages, it is preferable that all employees be impacted in some part by wage reductions to maintain fairness and minimize morale issues; and adjustments affecting union members would have to be negotiated. Staff recommendation is to endorse considering tiered salary reductions as a last resort to balancing the budget effective October 1, 2009. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to endorse considering tiered salary reductions as a last resort to balancing the budget effective October 1, 2009. Motion failed for lack of a second. Conclusion The City Manager expressed that Council' s input will go a long way with developing a budget. Mr. Garvie commented on a recent newspaper article and reflected back that last year staff was reduced and stated they have looked at staffing year after year. Mr. Miller expressed the hope that the City will recognize the contributions made by