Okaloosa County BOCC — October 5, 2013 — 7-15-13 budget workshop — reading text

Okaloosa Lane (priority), dirt to pave; Gilmore Road, dirt to pave; Kervin Road shoulder stabilization; Light House Church Road, drainage project; Robinson Road, dirt to pave; Stateline Road, dirt to pave; and Foxwood Subdivision Phase III. Traffic Mr. Hofstad stated there are seven people in this division. The division is responsible for operating and maintaining 181 traffic control devices, 153 of which are signals and beacons; 212 highway lights; and safeguards over 80 miles of underground utilities. Engineering Mr. Hofstad said Engineering, much like Traffic, is holding the line. He stated there has been a significant manpower reduction in this division over the years. Mr. Hofstad stated in 2008 there were 25 people, today there are 11. He advised “we are accomplishing all we can with the remainder” but they have to farm much out. Roads Mr. Hofstad reported this division has 90+ people. He provided a graph displaying the operating budget and program expenses. The major accomplishment for this division were listed as maintaining 670 miles of paved roads and 74 miles of cold mix base stabilized roads; grading 199 miles of dirt roads once a week; maintaining 221 retention ponds; mowing 726 miles of rights-of-way; 1,680 tons of milled asphalt was placed on damaged dirt roads throughout the county; and Millside Road Bridge was converted from timber to steel/concrete. Mr. Hofstad stated additional gas tax revenues reflecting a 70/30 split with the cities have been programed into the proposed budget for FY 2014. This is a State formula which is based on transportation expenditures. He pointed out the split is currently 60/40, advising the Board agreed to this split when approached by the cities. Mr. Hofstad remarked that action left $300,000 on the table. He stated he and Mr. Padgett met with city representatives and said the cities want to keep the 60/40 split. Mr. Hofstad told the Board they made it clear to the cities that decision will be made by the Board. Upon inquiry by Mr. Amunds, Mr. Hofstad answered the difference in the percentages is between $300,000 and $400,000. Mr. Padgett asked July 15, 2013 ~6- Minute Book 69, Page 203 Okaloosa County Board of County Commissioners if those dollars will replace General Fund contributions to the division. Mr. Padgett replied the General Fund dollars will stay in, clarifying there is no reduction in General Fund contributions to the Roads Division. Stormwater Mr. Hofstad reported that in 2006 the county set aside funds for capital needs for the stormwater program, saying there is a regulated requirement to maintain stormwater infrastructure in the county. The annual amount budgeted at that time was $500,000 but was subsequently reduced to $400,000. In 2010 personnel, operation and maintenance costs for stormwater was segregated out of the Road Division. The purpose of this action was to identify the costs and needs in the event a stormwater utility was ever established. He noted there was a sizable reserve in 2010 but has steadily been drawn down, pointing out that salary and O&M costs are between $700,000 and $750,000 per year. Mr. Hofstad stated there will only be $150,000 to be carried forward out of the reserves account. He advised there is not enough revenue to support salaries and O&M for the coming year with the $400,000 contribution for the Stormwater Division. Mr. Hofstad asked the Board to take into consideration implementation of the additional gas taxes. He advised those revenues could be used for stormwater issues within the road rights-of-way. Mr. Hofstad pointed out the list of stormwater needs totals $50 Million and he believes 70% to 75% could be funded with gas taxes. He cautioned that if the regulatory agencies do not feel the county is meeting the objectives of the permits, the county could face consent orders. Mr. Hofstad stated there was an estimated $800,000 in damages resulting from the July 4 weekend storm event. He commented that you do not program or design for a 500-year storm event. Mr. Hofstad emphasized that we must start addressing the needs with suitable funding sources. He said it would be ideal to have a dedicated revenue source for bonding purposes. Mr. Hofstad said no extra projects have been added to the original list and termed the county’s response as “reactionary.” Mr. Parisot, using the Lake Lorraine area for example, said some gas tax revenues could be used but there are other areas where that funding source could not be used. He stated there should be other sources of funding. July 15, 2013 -7- Minute Book 69, Page 204 Okaloosa County Board of County Commissioners Mr. Hofstad agreed and said a lot can be done with gas taxes if they are made available. He stated the county loses 25 points right off the top when applying for grants because we do not use all resources available to us (dedicated funding source). Mr. Boyles asked if gas taxes would meet that requirement. Mr. Hofstad said a legal opinion is needed but he believes one penny of the gas tax could be allocated for stormwater projects. Mr. Parisot posed a number of questions, including whether that revenue source could be used for off right-of-way, is there a split with the cities, and formation of a stormwater utility. Mr. Hofstad replied that like CTTF it is augmented with General Fund revenues. He said when he was at Fort Walton Beach, they started an equivalent utility charge with the water service. Mr. Hofstad stated the city could abolish its utility and join the county's. He clarified that it would have to be a non-ad valorem assessment. Mr. Boyles expressed his concern regarding matching grant dollars. He said this should be presented to legal for an opinion. Mr. Boyles stated he can consider use of a small portion of the parks fund to establish a stormwater utility to help qualify for grants. Mr. Windes asked if the grants would be available “sooner or later.” Mr. Hofstad replied that he believes you will see recovery of state revenues and growth in years to come but stressed he cannot predict the future. Solid Waste Mr. Hofstad reported the Solid Waste Division is looking very healthy. He pointed out there is a huge revenue budget with the renegotiated contract with Waste Management. He said the reserves in 2010-11 were down to almost nothing but that reserve is now almost $1.7 Million. Mr. Hofstad advised the contract with Waste Management will expire in 2016. It was pointed out FDEP has relaxed the heavy requirements for landfill remediation and long-term care. There are, however, some issues with regard to the yard waste grinding operations. Upon inquiry by Mr. Parisot, Mr. Hofstad said the money in this enterprise fund can only be used to build roads within the landfills. July 15, 2013 -8- Minute Book 69, Page 205 Okaloosa County Board of County Commissioners Recycling Mr. Hofstad reported Okaloosa County has agreements with ten neighboring counties for collection and disposal of household hazardous waste. He said this partnership is largely funded through FDEP. Mr. Hofstad listed some of the major accomplishments of the division. RECESS - The meeting was recessing at 8:10 p.m. and reconvened at 8:20 p.m. Mr. Fred Westfall, Shalimar, stated that because he will be retiring he is not happy with the prospect of a tax increase. He did support the funding of roads to its fullest extent. His second concern was the recent storm event which caused the dumping of sewage into the Bay and the Sound. Mr. Westfall asked for long-term funding for the Lake Lorraine area to be continued. Mr. Michael Barnes, President of Okaloosa Citizens Alliance (OCA), stated the Public Works Director has been before the Board many times with the same drum and the same beat. He said it is about time the other band members begin to play. Mr. Barnes told the Commissioners it is their job to figure out the answers to the problems. He asked for due diligence in finding the funding to resolve problems. Mr. Randal Langston, Doral Drive in Shalimar, stated there have been “spectacular holes” in his area after the rains, reporting one to he about five-feet deep. He said their fences are falling down and the problem needs to be addressed. Mr. Langston stated it is becoming a public health and dangerous problem. Mr. William Clayton Davis, Doral Drive in Shalimar, stated he understands long-term plans must be made and he is amazed at the challenges before the Board and its staff. He said the Board is doing the best it can and he does not mind raising the taxes a little bit. Mr. Davis acknowledged the commissioners will get static for taking that action. He also told them his prayer group mentions each of their names when they meet. Mr. Barry Gray, Sylvania Heights Front Porch Community, stated he supports a stormwater utility. He also told the Board he supports them and the Public Works Director. Mr. Gray said Mr. Hofstad needs the money for his department. July 15, 2013 -9- Minute Book 69, Page 206 Okaloosa County Board of County Commissioners Mr. Ben White, Crestview, stated he came before the Board about 90 days ago with a pledge and promised the Board “a product” in 60 days. However, he termed portions of the proposed budget “burdensome.” Mr. White noted that he understands ten counties are raising their gas taxes and some counties are raising their ad valorem taxes. He said he is willing to help and to make sure we are doing everything we can. Mr. White stated increasing the gas tax will cost him $2,000 more each month. Mr. Harris remarked that an additional five cents of gas tax on a 20-gallon purchase would only be §1.00. Mr. Parisot said $2,000 additional would mean Mr. White would be purchasing 40,000 gallons of gas. Mr. White acknowledged that his math was off. Mr. Shaun May, Florida Department of Health, stated he is speaking on behalf of Dr. Karen Chapman. He said stormwater problems are a major public health issue for the Health Department. Mr. May stated there is a troubling trend regarding funding for the coastal beach monitoring program. He said samples are taken weekly from March through October. Mr. May stated they (Health Department) do not have the authority to close beaches but do issue advisories. Mr. May referred to recent studies of the past few years which show the #1 worst beaches are found in Florida. He advised that Garniers is posted 83% of the time and Rocky Bayou 61% of the time. Mr. May told the commissioners the county has got to get some skin in the game with a dedicated funding source. Mr. Harris stated for a number of years he has objected to Mr. Parisot'’s perspective on a stormwater utility but can now appreciate his comments. Water & Sewer Department Mr. Jeff Littrell, Water & Sewer System Director, reported that in 2008 this department had 140 employees but is now down to 119. He said they have tried to do more with less but realize they probably cut too much. Mr. Littrell detailed the positions which are needed. Mr. Littrell pointed out this is an enterprise department. He said there is a five-year rate plan in effect, noting staff is looking for revenues and for ways to lower rates. Mr. Littrell told the Board that he will not come back and ask for the rate to be raised. July 15, 2013 -10- Minute Book 69, Page 207 Okaloosa County Board of County Commissioners Continuing, Mr. Littrell stated he would like to provide support for the County Administrator’s proposal for a cost of living increase for employees. He said although in 2010 the Board did cover the employees’ FRS contribution, it has been five years since employees have had a raise. Mr. Littrell told the Board it has become increasingly difficult to keep good employees. He then listed the employees he has lost for this reason, he added that it is also difficult to hire new employees with the pay which is being offered. Mr, Littrell continued his presentation with details of capital improvements projects and briefly