Board of Commissioners Budget Workshop Meeting

MINUTES BOARD OF COMMJSSIONERS BUDGET WORKSHOP MEETING JUNE 9, 2021 4:30 p.m. A regu lar workshop 111eeting or the City of Madeira Beach Board or Co111missioners was held at 4:30 p.111 .. on June 9. 202 1. in the Patri cia Shontz Co111111ission Cha111bcrs at City Ha ll. located at 300 Municipa l Drive. Madeira Beach. Florida. MEMBERS PRESENT: John B. Hendricks, Mayor Hel en ·'Happy'· Price, Vice Mayor/Commissioner District I Nancy Hodges. Comm issioner District 2 Doug Andrews. Co111m issioner District 3 Dave Hutson, Commiss ioner Di strict 4 MEMBERS ABSENT: CITY STAFF PRESENT: Robert Dan iels, City Manager C lara YanBlargan, City Clerk I. CALL TO ORDER Mayor Hendricks called the meeting to order at 4:30 p.m. 2. ROLL CALL City Clerk Clara VanBlargan ca lled the ro ll. 3. PUBLIC COMMENT Mayor Hend ricks opened to public com ment. 4. TOPICS FOR DISCUSSION A. Capital Improvement Plan Overview - Robert Daniels, City Manager Financial Consultant Andrew Lani n gave an overview on Fund Bala nce and capital reserves. The financial statements in the Genera l r-und have reservations of Fund Balance. In GATSB Y terms, there is non-spendable restricted comm itted assigned and unass igned. There is BP settlement money in the Genera l Fund that has not been touched in a few years and has not been appropriated. In FY 201 5, the City received $452, 123. and the current balance is $383.544. The state requi res that it be appropriated. There arc no restrictions so the Board can approve how it wants to spend June 9. 202 1. BOC Budget Workshop Meeting Page I of 7 it. Also, there are two commitments in the General Fund: one is for capital projects, and the other is for debt services. In 2018, the Board of Commissioners passed Resolution 2018-05, establishing a parking rate increase of $0.50 per hour for daily parking. Fifty percent was committed to infrastructure [infrastructure/community aesthetics/cosmetics]; and the other fifty percent committed to debt service. Then the Board of Commissioners passed Resolution 2019-10 to allocate the entire $0.50 per hour daily parking rate increase to debt service because there was a need to continue paying down the existing debt and future debt to address stormwater needs. The accumulation of that is $55,941 as of September 30, 2020. The Board can choose to appropriate that money and the $383,544 BP money toward capital projects. Commissioner Andrews said if 100% if going into debt service, then why it does not show. Mr. Laflin said there is a debt service reserve, and there are "the ins and outs" in that Fund Balance reservation. It increases by the incremental parking revenue and decreases when the debt service is paid. Commissioner Andrews said the purpose of the parking rate increase was to go towards the beautification in John's Pass. It was changed to put the entire increase toward debt service, a loan with an interest rate of around 1.2%. Mr. Laflin said they could pass a resolution to revert it. ARP A, the American Rescue Plan Act of 2021 Mr. Laflin explained ARPA, the American Rescue Plan Act of 2021. He said the City of Madeira Beach is considered a non-entitlement unit (NEU), a local government serving a population of less than 50,000 to get ARPA money from the state. The state receives the money first and then only has 30 days to distribute it to the non-entitlement units. The money should be coming soon. It will be in two tranches to local governments. After getting the first half, the second half is received no earlier than 12 months later. The last he checked it was $1.8 million based on the preliminary calculations. The amount distributed to the City of Madeira beach cannot exceed 75% of the annual operating budget. That is the only factor to consider. The budget is a bit higher than $1.8 million, so they have nothing to worry about. He explained the eligible uses for the money: COVID-19 response mitigation and prevention program activities; workers performing essential work during the COVID-19; revenue loss, a calculation based on the average of the last three fiscal years to get the baseline; and water, sewer, and broadband infrastructure. Vice Mayor Price said they get revenue primarily from taxes, and that was not affected by COVID- 19. She asked where else they could look for revenue. Mr. Laflin explained that it will be everything such as ad valorem taxes, state taxes, state revenue sharing, half-cent sales tax, local government information structure tax, parking revenues, recreation fees, sanitation revenues, and marina and building fund revenues. If they had a water utility or federal grants, they would exclude those. Mr. Laflin said they cannot pay debt service with ARPA monies. Eligible expenditures start March 3, 2021, and they have until December 2024 to spend the money or at least appropriate the funds and even incur expenses outside that. In lieu of issuing new debt, they can take that money and earmark it for future stormwater drainage improvement projects. Mayor Hendricks said that would make a down payment on Parsley and Marguerite. They could pay that amount first and then pay the rest off with the loan they got for it. June 9, 2021, BOC Budget Workshop Meeting Page 2 of7 The City Manager said they could use some of the money to match the dollars they get out of Tallahassee. Mayor Hendricks asked when they would be getting the $1.75 million ARPA state money, and Mr. Laflin said he did not know. Director Wepfer said she spoke to Bob yesterday about the groins, and their budget starts July 1. It would be a 50% match to the City, and they would earmark it for October 1. She is currently working on an RFP for that. Archibald Commissioner Hodges asked if the 2019 Chevy Silverado currently under the Enterprise lease agreement would be transferred over. Public Works Director Megan Wepfer said adjustments would have to be made whenever they decide to purchase them outright. Vice Mayor Price said the first thing she did was mark everything off that is not coming up next fiscal year because most will not get paid. The only thing they are really talking about for this fiscal year is the groins. Mr. Laflin said two more Archibald items did not make it on the list. Director Wepfer said one of them is Truck # 40, the 2009 F350, and the other is the ADA improvements to the ramp at Archibald. The ADA ramp is $100,000, and the quote for the dump truck came in at $95,000. She currently has $85,000 in this year's budget to finish the bathrooms, and it would be another $ I 00,000 in 2022. Building Department Commissioner Andrews asked if the $50.000 listed in the Building Department was for the software to get them up to date. Mr. Laflin said it was initially budgeted for 2022, but they are working to implement it sooner. The City Manager said the $13,000 for the Code Enforcement software would be part of the 2022 budget. If they start it July I, 2021, $3,100 would be paid out of the current budget. It is not considered a capital expenditure the way it is classified. Fire Department Vice Mayor Price said it looks like the Fire Department is paying for the Pierce engine over multiple years. Fire Chief Belk said that is the replacement of the backup engine. It has reached the end of its service life. The previous fire chief and the previous finance director had already had it in the works, so he just followed it. They paid the $225,000 down payment from this year's LOST Fund. For the next five years, they will be paying $144,000 for the new ladder truck. Fire Chief Belk explained his capital improvements budget for FY 2022. • The two portable radios for $70,000 will come out of the General Fund. June 9, 202 I, BOC Budget Workshop Meeting Page 3 of7  • The rescue boat for $65,500 is a request that will come out of the LOST Fund. • The replacement of the 2014 Ford Explorer at $40,500 will come out of the LOST Fund. • The $144,000 annual payment for the new ladder truck will come out of the LOST Fund. • The replacement of the Ford Explorer is the jet skis, but they are trying to upgrade their level of service to the citizens, so he is requesting a rescue boat because jet skis cannot run at night or in inclement weather. They found a very cost-effective boat that would function beautifully. Commissioner Andrews asked if there were any grants available for the boat, and Fire Chief Belk said he applied for one that he is waiting to hear back on. Mayor Hendricks asked Director Belk if he had a schedule for the rest of the items to be replaced as required. Director Belk explained yes. John's Pass Village Vice Mayor Price asked what happened to the John's Pass boardwalk repairs. They are not really doing anything for it but doing everything for the beach across the street. Director Wepfer said she did not know the answer but will get it. She does not know if it is in the current budget. Mr. Laflin said in the 2021 budget there is a project called John's Pass regrade and repave parking lot for $IO0,000. Director Wepfer said that is not for the boardwalk. When they originally planned the project in 2018, the bid came back as $39,000 to replace, rejacket, or just clean and jacket. It can be done under the $100,000 currently budgeted. Vice Mayor Price said they should put it in there. Commissioner Andrews said it is a necessity. They have talked about it for a very long time. There is $55,000 just sitting in a split fund. It was initially designated for John's pass until it got changed. If nobody has an objection, that can go towards John's Pass, but the first thing is to fix the boardwalk. Vice Mayor Price agreed and said they need to do that with some of the funds just sitting there and not being spent. Mayor Hendricks said if they promised some funds to clean up and maintain down there, they need to keep to their word. Director Wepfer said with the Board's support, she will do that. Vice Mayor Price said, other than the boardwalk and the one surf shop building, what else does the City own down there. Director Wepfer said everything with the same color pavers in John's Pass is the City's property. They own all the sidewalks along the boardwalk place, the bell tower, all along I 29 th , the center parking lot by the bathrooms, and all the parking lots along the boardwalk belongs to the City. The Mayor said the parking lot across Gulf Blvd. on I 30 th also belongs to the City. Commissioner Andrews said he had conversations with people in John's Pass. They should not be mad at the City, but mad about the people charging $40 a shot to park. He was there on Wednesday night, and there were no parking spots available. If they are saying parking rates are why people are not going to their business, that is completely not true because the parking spots are all full. It is the lack of parking spaces. It has nothing to do with the costs at this point or the price that people are paying. He would like to have a town hall meeting with them and talk about a parking garage. June 9, 2021, BOC Budget Workshop Meeting Page 4 of7 It would benefit the City and would probably pay for itself with the revenues generated from it. Director Wepfer said they just replaced all the garbage cans in John's Pass Village. They need to replace about 20 benches. Vice Mayor Price said they probably should ask what they would like the money spent on. She does not want to spend all the $55,000 promised to them on the boardwalk. Commissioner Andrews said they would not be handing them a check for $55,000. Director Wepfer said it was to be used to beautify in John's Pass Village and they do that. They clean the restrooms regularly, pressure wash quarterly, and do a deep clean at the end of the year. There are more things they can do there to beautify. Commissioner Hutson said six months ago they were talking about different garbage cans for John's Pass that the beach truck could access. Director Wepfer said those are the toters they purchased for the beach used for the Broyhill. That will not work in John's Pass because they have to physically pull up to them and then empty them that way. In all reality, it would be nice, but right now. they must get used to the beach and the beach parking lots before they try implementing it in the Village. They purchased I 00 toters and only have two left. Sometimes they have to look for them. The toters cost $50 for the ones they currently have, and the 32-gallon brutes cost $35, so they get quadruple the size, more aesthetically pleasing. The Mayor said they could pay for them with the fees they get from the condos and the county for emptying their garbage cans five days a week. Vice Mayor Price asked if they agree to add the boardwalk repairs to John's Pass Village in the next fiscal year. Commissioner Andrews said unless they can get it done sooner before October. The Board consented. Marina The City Manager said he had a meeting with Andrew Laflin, Brian Rau, and the consultants. They hope within the next two weeks to get the Marina study to discuss at a workshop. He would like to discuss that item only at the June 30 workshop and move the other items to the following workshop. The Mayor said he would like to have several companies interested in a joint venture attend the July or August workshop to present what they have to offer. Mayor Hendricks asked where the numbers came from for the high and dry facility. Mr. Laflin said the numbers are just a placeholder and came from their initial report. The full report will help determine everything. Commissioner Andrews said they have $7.4 million in 2022 for that project. There is $25 million for the Marina portion, and with public works added, it is nearly $29 million. The City Manager said he heard the number for the public works would be a lot lower. The Mayor said they are looking at $15,000 to $20,000 per slip, which is basically what a parking garage is. The slips are running anywhere from $22 to $30 per foot. Commissioner Andrews said he hopes they get more concrete numbers before signing off on something like that. Commissioner Andrews asked ifthere was $20,000 for an ice machine in the current budget. They June 9, 2021, BOC Budget Workshop Meeting Page 5 of7 have been discussing it for five years, and he thought it was approved last year. Marina Manager Brian Rau said they currently rent an ice machine, and it is empty by 7:00 a.m. every morning in the summer, so they will be purchasing two ice machines to give them a lot more volume. Public Works Commissioner Hutson asked if they still wanted to include the public works building with the high and dry facility. The City Manager said it is scheduled to be encompassed as part of it. It would save them money by having it on the same site because property is so expensive. Vice Mayor Price said if they are going to spend a half-million dollars on two sanitation trucks, they might want to increase their fees even more because that is a lot of money to replace two trucks. Mr. Laflin said the fee study based it on depreciation expense. They would be spreading the cost over five years. The cost of the capital is captured through an annual depreciation. Stormwater Commissioner Hutson said he would like to add to stormwater or public works a few more wapro valves. Wapro valves were installed in some areas to keep the streets from filling up with high tides and storm surges. He would like to get a few more to take care of most areas in the City and eventually do them al I. Director Wepfer distributed a document showing the price of wapro valves and the locations where they were installed in 2017. She said the question is, do they work? They slow down the water but do not stop the water. They do slow it down enough to where the water does not cover the roadway. If the intention is to slow the water down from the street flooding, they can purchase them for certain areas. It would depend on the areas they are referring to. They do not have a valve on 140th at the intersection on South Bayshore, where Commissioner Hutson is referring to. When doing the Boca Ciega project, they added an outfall pipe there. They can look at it, but that is a very low spot. Vice Mayor Price said she had no problem adding a few in if determined to work or help. The Mayor suggested picking a spot they know is really bad every time they get king tides. It does not have to be a storm. Director Wepfer told the locations they put in wapro valves and said five they did themselves to save money. It was going to cost $1,500 per valve to install. It is an option on l 40 th • but they must look at the pipes to see what type of valve they need because there are so many kinds and installations. Vice Mayor Price asked Director Wepfer to bring them a ballpark of what it would cost to put one in at 140th and on Bay Point, the two worst areas. Director Wepfer said she would get the information to the Board. Mr. Laflin said what was presented to the Board was capital requests by departments. During the June 9, 2021, BOC Budget Workshop Meeting Page 6 of7  budget process. he will assign the costs to the funds to fu nd them. B. Impact on M inimum Wage Increase - Andrew Lr~flin, Fi11ancial Consultant This item was not discussed. 5. ADJOURNMENT Mayor Hendricks adjourned the meeting at 5:39 p.111. ATTEST: Ju ne 9. 202 1. BOC Budget Workshop Meeting Page 7 o f 7