City Commission Workshop Meeting

APPROVED: 6/27/2013 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Thursday, May 16, 2013 7:00PM City Hall CALL TO ORDER: Mayor Muenzmay - 8:35 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5- Linda Bob; Albert Eckian ; Michael Holland; Karen LeHeup-Smith ; and Kress Muenzmay I. Workshop Item 13117 2013 Compensation Study Ann Isaacs, Human Resources Director, presented the 2013 Compensation Study noting that the last time the City pay grades were adjusted was in 2008. She stated that the City's salaries were compared to eleven cities in Lake County and the surrounding area, as well as to the private sector. She cited the following issues: 1) attraction of qualified staff due to low starting salaries; 2) turnover increasing, particularly in the police department, to other agencies; 3) low morale due to no increases coupled with increased health insurance premiums; 4) lower than average pay increases even with the bonuses; and 5) salary compression with long-term employees earning close to what starting employees are receiving. She cited the following key results and observations regarding non-exempt positions: 1) not competitive with overall pay lower than public and private sector; and 2) total compensation including benefits does not outweigh the salary deficiencies. She indicated it would require at least 3% to 5% to get the salary ranges into the upper quartile with an approximate cost of $117,000, which could be phased in over several years. She stated that for exempt positions the City is competitive with most of the positions in the upper quartile with a few exceptions. She added that the entry level police and fire starting salaries are below market. She noted a change in the report from 40% to 27% for the fire pension contributions. She concluded stating that the benefit study showed that the City's benefits are competitive. Ms. Isaacs then explained the City's existing merit program; however, additional training would be required on writing goals and objectives and a determination made on how to award the percentages. She reviewed the estimated cost based on a 2% merit increase versus a 3% increase. II. Commission Discussion The Commission asked if new employees are hired at the market value if the starting salary is too low with Ms. Isaac explaining that when possible the City hires at market value but it's not possible when there are a larger number of specific entry level positions due to lack of funding in the budget. The Commission discussed if the merit figure includes a 2 or 3% increase for all employees with Mr. Berg confirming the figures cited would be the same for an across the board increase. The Commission discussed the comparison tables, how the comparisons were made, the need for the pay ranges to be adjusted and confirming that some employees' cu"ent salaries would fall out of the range if the ranges were adjusted. Mr. Berg stated that approximately 60% of the City workforce is below the midpoint of their range. He commented on the number of people that have been with the City five or six years but have not progressed up the range so they are just above the entry level. City of Eustis, Florida Page 1 Printed on 5/3112013 City Commission Workshop Meeting Minutes - Final May 16,2013 The Commission discussed the following issues: 1) paying for performance; 2) the need for the City to pay within the top quartile; 3) the need to adjust the pay ranges; 4) possibly beginning with a 3% across the board plus a 3% merit; and 5) whether or not the City has a significant number of low performing employees due to the reduced staff. Mr. Berg explained that the market is where the City's median should be. The Commission further discussed the following: 1) whether the raises should be entirely merit based or part across the board and part merit; 2) adjusting the pay ranges for each position; 3) the need for employees to have good reviews in order to get a raise; 4) to require that increases to bring an employee into their range must also be based on merit; 5) to have Human Resources examine and re-set the ranges and then look at each employee's review to determine how to move them within their range; 6) how the City's benefits have kept some employees; and 7) not raising everyone up within range if the pay ranges are adjusted. Ms. Isaac explained that when a pay study is performed and the pay ranges are adjusted it is not normal to base those increases on merit. Merit increases are used to move someone up in the range. The Commission further discussed the use of merit increases only based on employee reviews and the need to adjust the pay ranges first and then determine how each employee fits within those ranges in order to determine the cost. The Commission discussed the probability that the City would have to increase taxes in order to fund the salary increases. III. Public Input Tim Totten, 2617 Waterview Drive, thanked the Commission for having the compensation study done internally rather than paying an outside consultant. He commented on employee morale, the number of employees leaving for other agencies, certain agencies that were not included in the pay study, and reasons why employees leave for other positions or stay with the City. IV. Commission Direction CONSENSUS: It was a consensus of the Commission for staff to adjust the pay ranges, examine the employee reviews to determine how each employee should be placed in the range and bring back a cost analysis for those increases with all increases to be based on the employees' merit reviews. V. Workshop Item 13119 Presentation of Five-Year Capital Improvement Plan (CIP) Update Jim Myers, Finance Director, reviewed the Five- Year Capita/Improvement Plan (CIP) FY2014-2018 including the summary of expenditures by purpose, the required comprehensive plan , Strategic Plan and CRA projects, and the various sidewalk projects. He explained the issue of the sunset of the sales surtax in December 2017, which leaves some of the projects unfunded in the event the surtax is not renewed. He further explained that, until the surtax is renewed, the projects will have to be addressed as unfunded. He then cited the following fiscal/imitations: 1) Limited recurring revenues to support large CIP projects with the sunset of the sales surtax in 2017 and the sunset of the CRA TIF funding in 2020; and 2) Concern for capital improvements in the utility funds regarding future rate increases tied to CIP projects. Mr. Myers then recommended the following two projects: 1) A feasibility study for the reclaimed water master plan update in the amount of $50,000, which is required by St. John 's River Water Management District for the City's Consumptive Use Permit; and 2) An update to the Eastern City of Eustis, Florida Page2 Printed on 513112013 City Commission Workshop Meeting Minutes - Final May 16,2013 Wastewater System Master Plan with a service area study in the amount of $65,000, required by FDEP. He then reviewed the significant projects completed in FY2011-12 and FY2012-13 as follows: 1) WWTP nitrification project; 2) Reclaimed water storage project; 3) Grand Island well project; and 4) Downtown master stormwater project for a total of $13.4 million. He referred to the unfunded projects included in the F¥2014-2018 CIP totaling $22,350,530. He reviewed the projected improvements included in the Ferran Park Master Plan noting that the Commission previously directed staff to proceed with the children's playground and restroom renovations. He asked for any changes the Commission would like to make to the CIP. VI. Commission Discussion The Commission asked if City staff could complete the feasibility study citing the low number of affected customers at this time with Mr. Myers explaining that the City has to have professional feasibility studies performed in order to meet the St. John's requirements for the City's Consumptive Use Permit. John Futch, Public Services Director, explained that the City's Engineer is a Construction Manager/Civil Engineer not a specialist in that area. The Commission discussed the unfunded projects and removing the marina from the list. CONSENSUS: It was a consensus of the Commission to remove the marina from the unfunded projects list and to add the Ferran Park master plan improvements to the list. The Commission discussed the funding for Palmetto Plaza if the CDBG grant is denied with Mr. Myers indicating that there would be approximately $740,000 available over the next two years that could be used for the completion of the project. The Commission asked about any progress by Angie Brewer & Associates to obtain grants for the City with Mr. Myers explaining they are working on the block grant for Palmetto Plaza and doing preliminary work for the fire truck grant. He noted the amount of uncertainty at the federal and state level for some of the grant programs. He also noted there is a fire truck budgeted in next years budget so that if the grant is denied, the City will actually purchase the truck next fiscal year. If the grant is received, that will be additional funds available. Mr. Myers commented on the need to have viable projects on the unfunded list to assist with the re-election of the sales surtax. The Commission discussed the need to ensure that existing City facilities are maintained properly. Vll. Public Input- None VITI. Commission Direction CONSENSUS: It was the consensus of the Commission to accept the F¥2014-2018 CIP with the approved changes. IX. Adjournment- 10:03 p.m. City Clerk Mayor/Commissioner -··-- www.eustis.org and cl ick on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee . City of Eustis, Florida Page3 Printed on 513112013