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08-05-2009 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA • AUGUST 5, 2009 Present: David B. Norris, Mayor William Manuel, Vice Mayor Darryl Aubrey, Sc.D., President Pro Tem Edward M. Eissey, Ph.D., Councilman T.R. Hernacki, P.E., Councilman Jimmy Knight, Village Manager Melissa Teal, CMC, Village Clerk RnT,T, CAT,T. Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present. All members of staffwere present, except the Village Attorney. Finance Director Samia Janjua, Public Safety Director Robert O'Neill, and Public Works Director Wiley Livingston were present. CURRENT FINANCIAL CONDITIONS Mr. Knight gave a brief update on the status of the fiscal year 2009 Public Safety and Public Works departmental budgets through 6/30/09. FY 2010 GENERAL FUND BUDGET OVERVIEW Mr. Knight distributed copies of the FY 2010 General Fund Budget presentation concerning the departments of Public Safety and Public Works. HEALTH INSURANCE UPDATE Mr. Knight reviewed health insurance options, including United Health Care renewal with no change, United Health Care renewal with modified benefits, or changing to Cigna with modified benefits. Mr. Knight advised that dental insurance will be changed back to Guardian, in order to provide better benefits at a reduced cost. After discussing the benefits and the cost increase for each plan, Council opted to make no changes in health insurance at this time, and directed staff to renew with United Health Care. Health insurance plans and providers maybe readdressed later in the 2010 fiscal year. COMPENSATION Mr. Knight discussed compensation, including the proposed market adjustment, merit pay, and step plan, and advised that staff is monitoring the compensation offered by other cities in order to stay competitive with surrounding communities. Mr. Knight noted that although the budget includes a 3% market adjustment, the final adjustment in employee pay may be less, since it would be based on the cost of living as determined by other area municipalities. Council expressed concern regarding the combined total of market adjustment and merit pay or step plan • increases during an economic downturn when citizens may face wage freezes or layoffs. Discussion ensued on the percentage distribution of merit pay increases. Mr. Knight advised that an average of 3.75% was used for budgeting purposes. The percentage amount of any market adjustment will be finalized prior to second, final reading of the budget. Minutes of Village Council Budget Workshop Session held August 5, 2009 Page 2 of 3 PUBLIC SAFETY • Mr. Knight detailed personnel changes in the Pubic Safety Department, and noted the addition of a Public Safety Aide position that would function as the "park ranger." Mr. Knight reported net savings of $22,526 in the Public Safety budget through implementation of certain personnel changes. Mr. Knight discussed Public Safety revenue line items for court fines and ambulance fees. Mr. Knight reviewed the Police, Fire Rescue, and Public Safety General Services budgets, and reported total savings of $372,847 in the combined Public Safety Department budget. Mr. Knight discussed changes to the Village's Long Term Capitalization Plan (formerly known as the 5/10/15/20 Year Capital Equipment Plan) including keeping Public Safety patrol vehicles for seven years or 100,000 miles. Discussion was held concerning use and disposition of surplus vehicles. Mr. Knight reviewed the FY 2010 Capital Plan, which totals $547,712 for all departments. Mr. Knight advised that planned capital expenditures for Public Safety were limited to two patrol cars and an air conditioning unit for the radio room. Brief discussion ensued on equipment for the 800 MHz radio system. Mr. Knight reported that recurring costs to operate the system are included in the budget. Discussion took place concerning reduced costs for workers compensation. Mrs. Janjua advised that rates were lowered due to the Village's claims history. PUBLIC WORKS Mr. Knight announced that responsibility for overseeing the parks maintenance contractor has been moved from the Parks and Recreation Department to the Public Works Department. Mr. Knight reviewed personnel changes, which include revising the title of the streets division to streets and grounds, to reflect the move of one irrigation technician and one grounds maintenance worker from the Parks and Recreation Department to the Public Works Department. Mr. Knight discussed Public Works revenues, which are projected to be $390,000 for FY 2010. Discussion took place concerning the divisional budgets for Public Works Administration, Sanitation, Facility Services, Streets & Grounds, and Vehicle Maintenance. Mr. Knight noted the large increase in the Public Works Administration budget for utilities, and explained that the Finance Director has changed the distribution of utilities expenses to a more appropriate allocation for each department. Mr. Knight reported a 48% increase in the Streets & Grounds budget resulting from the transfer of Parks Maintenance to this division, including $300,000 for parks maintenance contractual services. Mr. Knight and Mr. Livingston discussed the possibility of outsourcing custodial services, which currently cost the Village $154,537 in salaries and benefits for three positions. Mr. Knight advised that if Public Works continues to provide custodial services, another position would be required in order to maintain additional facilities, such as the new tennis center, which would • increase the cost for custodial services to $196,618. Mr. Knight noted the need to go out to bid for these services; however, a preliminary proposal of $144,896 was received for providing ~anitonal services to all facilities. Mr. Knight advised that the Village would save an additional $15,000 for custodial supplies for projected annual savings of $66,722. Council consensus was to outsource custodial services. Minutes of Village Council Budget Workshop Session held August 5, 2009 Page 3 of 3 PUBLIC WORKS continued • Mr. Knight explained that the Vehicle Maintenance budget was increased because repair and maintenance line items from Public Safety, Sanitation, and Facilities were moved to this division. Mr. Knight reviewed FY 2010 Capital Plan expenditures, including $300,000 for street overlay, $20,000 for sidewalk repair, $83,000 for storm drainage, and $5,000 for pallet racks. Mr. Knight advised that the street overlay project should be completed in FY 2010, with street overlays projected to commence again in five years. Mr. Livingston detailed the storm drainage projects planned for FY 2010. Discussion took place concerning street overlays and painting speed bumps in the Southwest Neighborhood. Mr. Livingston advised these maintenance issues will be addressed in FY 2010. Discussion was held regarding the feasibility of replacing old concrete street sign monuments with pole signs. Due to the cost of decorative street signs, it was requested that staff investigate the. cost of various styles and consider installing street signs in phases. Mr. Knight reviewed the FY 2010 Capital Equipment Plan for Public Works. Mr. Knight noted the subsequent budget for FY 2011 will include funds to replace a garbage truck. Mr. Knight discussed the opportunity to increase revenue by providing sanitation service to additional commercial properties, if a larger, front-end loading garbage truck is purchased. CONSENSUS ITEMS • health care renewal with United Health Care with no changes to current plan • outsource custodial services NEXT BUDGET WORKSHOP DATE Mr. Knight announced the next Budget Workshop on 8/12/09, for the purpose of reviewing the departmental budgets for Parks & Recreation, Library, Council, Clerk, Attorney, and Manager. Mr. Knight reminded Council that the Budget Workshop will be immediately preceded by a Special Session in order to review landscaping plans for the new tennis facility. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 9:10 p.m. ~~~~ Melissa Teal, CMC, Village Clerk