City Commission Workshop Meeting

MINUTES City Commission Workshop 5:30 PM - Thursday, June 23, 2022 - City Hall CALL TO ORDER: 5:33 P.M. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE PRESENT: Commissioner Nan Cobb, Commissioner Willie Hawkins, Vice Mayor Emily Lee, Commissioner Karen LeHeup-Smith and Mayor Michael Holland 1. WORKSHOP ITEM WITH COMMISSION DISCUSSION AND DIRECTION 1. Tom Carrino , City Manager, gave a brief overview of city-wide budgets then the individual departments including the City Commission, City Manager, City Attorney, Development Services, Human Resources and Library. He stated the General Fund is approximately $21 million dollars. He indicated the draft budget includes maintaining the millage rate at 7.5810 and providing 3% salary increases . He noted that staff is discussing entering into an agreement with the School District for School Resource Officers and adding part-time employees in both Human Resources and the City Clerk's office. He further explained they are proposing a reorganization in Public Works related to environmental compliance which will include some existing positions as well as some new responsibilities based on state legislation and reporting requirements. He added that Code Enforcement has already been reorganized into the Police Department; however, the draft budget will be the first time that has been addressed budgetarily. Mr. Carrino then stated he had budgeted some funding for a strategic planning process. He announced that they received some good news about health insurance and were told that the City will actually see a decrease in the health insurance premiums. He stated they have budgeted a 15% increase for the property and casualty insurance; however, staff has not received the actual rates as of yet. He then provided a brief millage rate analysis noting that the proposed rate has been 7.5810 for several years. The estimated roll back rate is 7.1810. He indicated that if the City were to go to the roll back rate it would reduce revenues for the General Fund by just over $500,000. He explained that 1 mil equates to approximately $1.3 million and one-tenth of a mil equates to approximately $130,000. He indicated the millage would be discussed further at a later time. Mr. Carrino then reviewed some changes made since the draft budget was printed and distributed a summary of the changes. He explained the transfers from the City to the CRA have been increased due to higher expected property values. He stated that staff is proposing to reduce the transfer from the Water and Sewer Fund from $2.3 million to $2 million due to that Fund being lean in the upcoming year. He cited the reduction in the health insurance costs by $138,000. He then stated staff is proposing a longevity pay system for the upcoming fiscal year. He explained that, after the equity study was completed, the City committed to hiring Eustis City Commission Workshop Page 1 of 8 June 23, 2022  new employees at the lower end of the pay range for equity reasons. However, to get to the new minimum wage in 2026 the City keeps adjusting the ranges. Therefore, employees are getting raises but they are still at the bottom of the range resulting in employees that have been with the City for several years still making the same as a new hire due to the ranges being increased. He then explained that staff is proposing to implement a system where employees would receive a 1/2 % pay increase per every full year they are with the City to be capped at 2%. He indicated that proposal is not in the budget book and stated the anticipated cost is approximately $180,000. He added the program is being proposed to address compression issues and to get those employees who have been with the City for some time above the range minimum. Mr. Carrino then reported that staff is proposing to split the cost of the Bates Avenue wastewater treatment facility over two fiscal years to reduce the impact on those funds. He noted some additional staffing changes for Human Resources. He then announced that with all of the proposed changes, the City's revenue over expenses is only $37,588. He indicated that for a $21 million budget the City has a very small revenue over expense. He noted that there is budgeted annually $100,000 for Contingency which is already built in to the budget. Commission asked when the proposed longevity pay would start with Mr. Carrino explaining it would start for a new employee after the first full year of employment. He noted that the program is only planned, at that time, for the upcoming fiscal year. He further explained that an employee that had been with the City three years would get 4.5% on October first and then an additional .5% on their anniversary date. Mr. Carrino noted that the Commission has expressed interest in doing more for the employees; however, with only a $37,000 revenue over expense the money would have to come from somewhere else. 2. Individual Department Reviews City Commission Mr. Carrino asked the Commission's preference for him to either go through the department budget line by line or only to review those lines where there is a significant change. It was a consensus of the Commission for him to only review those line items with significant change. Mr. Carrino reported on the City Commission's travel and dues. He noted it was increased approximately $1600 to address new items. Commissioner Cobb noted the Commission used to purchase a table for the Sheriffs Gala; however, it had not been held recently but it would be held in the coming year. CONSENSUS: It was a consensus to increase the line item to $2500. Further discussion was held regarding various planned events with a consensus to increase the line item accordingly. Mr. Carrino then reviewed the Promotional Activities Line item with a consensus to remove the Lake Symphony Orchestra. Eustis City Commission Workshop Page 2 of 8 June 23, 2022  Mr. Carrino then reviewed the Commission Dues line item noting that the Florida League of Cities dues was increased. He stated the Lake County dues increased significantly from $850 to $1900. He noted that the Black Caucus membership also increased. He then stated the Community and Organizational grants process would be changed to provide more accountability and require recipients to provide reports on their activities. He indicated a separate line item was created to provide the requested $15 ,000 for each commissioner to assign throughout the year. The Commission stated the $15,000 should be included instead as part of the Community and Organizational grants line item which would provide $15,000 for the grants process and then $15,000 to be awarded by Commissioners. Mr. Carrino commented on the difficulty already in dividing up the funds among the applicants. He indicated that review of the grants process would be discussed at the retreat. City Manager Mr. Carrino requested that $50,000 be budgeted for Strategic Planning under City Manager Professional Services. He indicated that some colleges and universities may be more affordable than a private company. He then reviewed the increase to the Travel and Per Diem noting that he is interested in attending more FCCMA and ICMA events for professional development and training. He then noted funds were added to Repairs and Maintenance for some repairs in the City Manager's office. He asked the Commission about the City continuing to pay for the insurance for the African American Festival noting that is funded in the City Manager's budget. The Commission discussed having them apply through the grants process so they could possibly get more funding with Mr. Carrino confirming the City purchases the insurance directly rather than providing the funding to the organization . It was a consensus to leave the funding in the City Manager's budget. Mr. Carrino then reviewed some small changes including $250 for computer equipment and the ICMA membership for $1,250. Mayor Holland noted the budgeted amount of $819.25 dues for Lake County League of Cities with Mr. Carrino indicating the meals are budgeted under a different line item . City Clerk Mr. Carrino reviewed the anticipated changes in insurance, salaries and contractual services. He noted the annual increase for iCompass as well as a decrease in the cost of the social media archiver Page Freezer and some decreases with other software. He noted a slight increase in the Travel and Per Diem budget to allow the City Clerk to attend training. The Commission discussed issues the City has had with the iCompass software. City Clerk Christine Halloran reported she is actively pursuing other options to resolve the issues. She indicated that some of the issues have been resolved but she is looking for other solutions while remaining within budget. Eustis City Commission Workshop Page 3 of B June 23, 2022  The Commission questioned the $5,000 budgeted for records management contract labor with Ms. Halloran explaining that the person was scanning old records but can no longer do it. Discussion was held regarding this being incorporated into the part-time Deputy Clerk job description. It was a consensus of the Commission to remove the $5,000 from the budget. Economic Development Mr. Carrino reported that previously a portion of the Economic Development Director's salary was budgeted from the CRA. He explained that previously it showed fully under Economic Development with the CRA paying the portion back to the General Fund . He indicated that has now been separated out to show under the CRA budget. He then noted the addition of the See-Click-Fix software to the budget. He indicated that Communication Services may need to be adjusted for communication and equipment needs for the new Economic Development Director. He added that line item also includes electronic signs and kiosk connectivity charges. The Commission confirmed that the City owns the kiosk with Mr. Carrino explaining the cost is for the connectivity usage charges and metrics. He indicated he would ask the Community Relations Coordinator to provide a report to the Commission regarding usage. Mr. Carrino then reported on changes to the Promotional Activities. He noted the elimination of the Sanford-Orlando Airport advertising and noted printing costs have gone up for the quarterly newsletter. The Commission then commented on the budget for Commission headshots with Mr. Carrino explaining the line item includes funding for professional promotional photos as well as staff and Commission headshots primarily following an election. It was a consensus to leave the budget item as is. The Commission then asked about the monthly maintenance for the downtown lighted trees with Mr. Carrino indicating that downtown businesses asked that the lights be left up year-round; however, that means the City is now incurring monthly maintenance costs. He indicated it is almost a break-even between maintenance cost versus the cost to put them up and then take them down. He stated it would be difficult to break out the electric costs for the downtown lights. The Commission then commented on the rented holiday trees in Ferran Park and downtown . The Commission questioned whether or not the City could purchase the trees and , if so, would there be space to store them. Mr. Carrino noted the company has been sold and staff will need to review the budgeted items for cost. He then reviewed the changes to Books, Publication and Subscriptions noting the elimination of some subscriptions due to increased costs. Events Mr. Carrino explained the Events staff had been re-organized and two part-time positions combined into one full-time position so they now have three full time staff members. He stated there are significant changes under Contractual Services. He said the most significant change was to George Fest with increases for the Eustis City Commission Workshop Page 4 of 8 June 23, 2022  headliner and fireworks as well as other miscellaneous increases mostly for performers for multiple events. He reviewed the proposed increases for the other events. He commented on the value to the City from the events and cited the sponsorships also paid to the City. The Commission discussed whether or not the Gospel Fest is included in the budget with Mr. Carrino indicating it has remained in the budget at $31,360. It was a consensus to leave it in the budget with the understanding it could be re- allocated if the event wasn't held. Mr. Carrino noted some equipment changes and Other Contractual Services and Rentals and Leases. He explained how the different line items are used. He acknowledged that the City typically pays for the port-a-potties for the car shows as well as some printing for flyers. The Commission commented on the need for a more well-defined relationship and dialogue with the Car Show coordinators as well as discussion with downtown merchants regarding the increase in activity from the events which are held monthly. It was a consensus to keep the line item but increase the conversation about the events. Mr. Carrino continued reviewing the individual line items. He cited increases to Rentals and Leases and Promotional Activities. He explained the use of Contractual Services and what it is used for. Miranda Muir, Events and Tourism Manager, commented on the City's application to the County for grant funds and explained how those funds are utilized. It was noted that the County money can only be used for out-of-county advertising. Discussion was held regarding event advertising and promotions. Mr. Carrino noted the City does not use media buyers or consulting for its marketing. All the work is done in-house and not by a third party. The Commission asked about the Bike Fest and if it would be held on a different weekend than the Leesburg event. Discussion was held regarding the timing with the Leesburg Fest and its effect on the City's event. Mr. Carrino continued the line item review noting the purchase of a new copier/printer. It was suggested that the cost be shared with the Fire Department since the fire inspectors are also located in that area of the building. The Commission commented on the need to update the sound in Ferran Park and what it would cost with Mr. Carrino citing the need for a quality portable system for events such as Memorial Day. He noted that the City purchased a sound board for the band shell which subsequently went out due to the heat. Staff has since been renting a sound board. Ms. Muir reported on the sound issues and rentals of sound equipment, i.e. sound board. She commented on staffs efforts to improve the system and the need for better equipment for the higher quality entertainment. Eustis City Commission Workshop Page 5 of 8 June 23, 2022  Further discussion was held regarding the electrical and sound issues and how best to address them and the cost with Ms. Muir indicating part of the issue is making sure whatever is purchased or rented is the most appropriate equipment. Discussion was held regarding fixing the electrical issues and renting sound equipment on an as needed basis to include a sound technician. Rick Gierok, Public Works Director, acknowledged there are issues with the Ferran Park electric. He noted to fix the issues may require tearing up the ground. He indicated that waterproof boxes may help resolve many issues. The Commission asked if adjustments could be made to the set-up and create some auxiliary electrical outlets. Discussion was held regarding having staff on hand during events with Mr. Carrino indicating that for larger events there is staff on hand; however, for smaller events there is not enough staff to have on hand due to cost. RECESS: 7:04 p.m. RECONVENE: 7:16 P.M. 3. Library Ann Ivey, Library Director, reviewed various line items. She indicated that shelving increased 80% after joining the County system. She cited a change in the budget regarding Travel and Per Diem. She explained she tries to have each staff member attend one event each year and do professional development. She cited the need to keep the librarians professionally active and pursuing continuing education. She indicated she has no other increases or changes. The Commission asked about the passport services with Ms. Ivey noting the increased revenue from those services. Mr. Gierok reported on the air conditioning system and repair/maintenance. Ms. Ivey commented on their Promotional Activities and cited the various Library theme weeks. She stated the Operating Supplies budget is in good shape. She indicated the book budget went from the trust account to the library general fund. She stated they experienced a 50% increase in e-book usage during Covid and that usage has maintained. Ms. Ivey then reviewed the Special Revenue Funds and the Garrett and Gullet Trusts. She reported they will be revamping the young adult section to be more appealing to teens. She reported that the microfilm materials are being digitized and made searchable. She stated the Impact Fee money is used for books and digital materials and noted that circulation is increasing each year. She reported that last year the Library received $89,000 from Lake County and based upon the circulation they will receive $101,000 in the next year. She commented on the County's efforts to change the formula and expressed hope that Lake County will use a tiered approach for fund distribution and include population and budget size in the formula. She stated the City should receive more funding regardless of the formula selected. Eustis City Commission Workshop Page 6 of 8 June 23, 2022  The Commission asked about the number of visitors with Ms. Ivey responding they receive 5,000 visitors through the door and 8,000 materials circulated per month. She added they send another 1,700 to other libraries. She commented on the increased circulation since joining the County Library System and stated that the partnerships with Parks and Recreation are working well. The Commission praised the City departments for their interdepartmental cooperation and how well they "think outside the box". 4. City Attorney Mr. Carrino stated the Professional Services would stay the same; however, Other Contractual Services are increasing to $200,000 for 2023. The Commission requested information about the attorney fees with Mr. Carrino stating the outside attorneys are budgeted under Other Contractual Services and they charge an hourly rate . 5. Development Services Mike Lane, Development Services Director, presented the budget for Development Services and Building Services . He stated most of the line items for Building Services are relatively unchanged. Mr. Carrino noted the reorganization with Code Enforcement. He stated the intent is to keep the staffing level in Planning and the Building Department but to monitor it and if it becomes overwhelming then they can discuss it in the future . Mr. Lane reviewed the Building Services line items noting a significant increase in the Repairs and Maintenance. He indicated that line item includes the repairs to the copy machine and the Edmunds permitting software. He then reviewed the Development Services budget. He stated that under Professional Services they are requesting a surveyor for plat reviews, funding for traffic impact reports, and planning consultants to assist when significant plans are submitted for review. The Commission asked about budgeting for additional staff with Mr. Carrino explaining they will be monitoring the workload. He commented on outsourcing options for temporary help and consultants from private firms as an extension of staff versus hiring more permanent staff. Discussion was held regarding the various staffing options and current and future needs. It was suggested to use the $25,000 for digitization to be used for an additional fulltime staff or hiring a planning intern that could possibly do some of the scanning : It was a consensus for the City Manager to work with the Development Services Director to determine needs and bring back a plan for staffing . Mr. Lane noted there is a redundant item under Operating Expenses for Communications Services. 6. Human Resources Bill Howe, Director of Human Resources , reviewed the Human Resources budget items and a staffing request for a half-time position to assist with processing of applications. He cited the need for HR to do a better job coordinating staff training . Eustis City Commission Workshop Page 7 of 8 June 23, 2022  He discussed increasing Professional Services from $20,800 to $26,557 and explained that includes background checks, medical exams, and random drug testing. He cited the need to conduct full fingerprinting for those staff members working with children. He reviewed expenses for employee appreciation, retirement, and longevity recognition. He complimented HR Assistant Jamie Tusing for developing an inhouse recognition award book in order to provide higher quality items for the employees. He explained the increase in advertising costs due to the increase in job postings and how they have expanded where jobs are posted. He commented on the significant increase for Books and Subscriptions from $800 to $16,000 for a new applicant tracking system - NeoGov which will provide improved functionality compared to the City's current system. He stated 160 public agencies in Florida use the vendor which will likely increase the applicant pool. He noted that an applicant will be able to apply to multiple agencies at one time. He explained the initial $14,700 includes set up and would go down in the subsequent year. The Commission questioned the services to be provided with NeoGov with Mr. Howe further explaining that NeoGov also operates the governmentjobs.com website. Mr. Howe announced that the City will receive a 2% decrease in health insurance costs with expanded services and enhanced benefits as well as providing reduced costs to the employees. He cited some new procedures that will be available to the employees including gastric bypass and fertility treatments. He cited large increases that surrounding cities will be experiencing in the next year. He explained that being a part of PRM helps to insulate the City from large increases. The Comm ission expressed appreciation for the HR staff and all they do for the City. The Commission questioned when NeoGov would be operational with Mr. Howe noting the funding won't be available until October so he expects it to be operational by January. Mr. Carrino noted the next budget workshop would be held Tuesday, June 28th. Discussion was held regarding the need to reschedule the Commission retreat. It was a consensus to schedule the retreat for Tuesday, July 5, 2022 at 4:00pm. Mayor Holland announced that the next day would be the Eustis High School presentation for Mrs. Broomfield. He also announced the funeral arrangements for former Commissioner Dr. Albert Eckian. 2. ADJOURNMENT: 8:19 P.M. These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording of the meeting can be obtained from the office of the City Clerk for a fee. CJi¼~tl~ CHRISTINE HALLORAN MICHAEL L. HOLLAND \ City Clerk Mayor/Commissioner Eustis City Commission Workshop Page B of 8 June 23, 2022