Board of Commissioners Workshop Meeting

MINUTES BOARD OF COMMISSIONERS WORKSHOP MEETING JANUARY 28, 2020 2:00 p.m. A workshop meeting of the City of Madeira Beach Board of Commissioners was held at 2 :00 p.m. on January 28, 2020, in the Patricia Shontz Commission Chambers at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida. MEMBERS PRESENT: Deby Weinstein, Commissioner District 1 Nancy Hodges, Vice Mayor/Commissioner District 2 Doug Andrews, Commissioner District 3 MEMBERS ABSENT: Maggi Black, Mayor John Douthirt, Commissioner District 4 CITY STAFF PRESENT: Robert Daniels, City Manager Clara VanBlargan, City Clerk Patty Kordis, Deputy Clerk Ralf Brookes, City Attorney 1. CALL TO ORDER: Vice Mayor Hodges called the meeting to order at 2:36 p.m. 2. ROLL CALL City Clerk Clara VanBlargan called the roll. 3. PUBLIC COMMENT Vice Mayor Hodges opened to public comment. There were no public comments. 4. TOPICS FOR DISCUSSION A. Legal Representative by Weidner Law-City Liens - Ralf Brookes, City Attorney City Manager Robert Daniels said there are numerous outstanding liens on the books for several years, which could total as much as $1 million in claims. Twelve properties were identified that continue in the lien process, and they have not been actively enforcing the liens. He had discussed the lien issue with City Attorney, who reached out to Matthew Weidner Law, who specializes in lien collection. January 28, 2020, BOC Workshop Meeting Minutes Page 1 of 9 Attorney Weidner said he has worked with many cities in Pinellas County, assisting with lien collection on a contingency basis. He outlined the procedure when working with staff and said his firm could start proceedings on the delinquent properties. Weidner Law will receive a percentage of the debt collected. Vice Mayor Hodges opened to public comment. Robert Preston, 425 S. Bayshore Drive, commented in favor of the lien recovery process. B. ADT Commercial Proposal for City-wide Video Security Systems - Walt Pierce, Finance Director Finance Director Walt Pierce said the camera systems at City Hall are not working, and staff has researched a solution. Building Official Frank DeSantis said the equipment is outdated and non-operational at this time. The Recreation Center has the same system, and it is non-functional. Director Pierce said the cameras at the Marina had not been functioning for the past two years, according to the forensic audit. David Tenn, a representative from ADT Commercial, commented on the new security system. Director Pierce said it was seen as an emergency. The fiscal impact would be about $60,000.00 for a lease agreement; the funds would be available through the Capital account for the City complex. They are working on how to allocate funds for this project. If this is a direct purchase, the cost would be about $200,000. It would require a budget amendment. Commissioner Weinstein asked about bidding out the project. The City Manager stressed safety concerns for the City's employees and citizens. They are prepared to go out for an RFP if the Board decided that. They are trying to bring a system in that they can implement that falls within the City's procurement guidelines and have a contract that they can piggyback off. Commissioner Weinstein asked about state funding assistance. The City Manager said when he looked at the state contract, it gave the bits and pieces, but not the full ability to have somebody to come in and install the service and cover them for technology upgrades in the future. Commissioner Andrews said a new system is needed, but the cost was substantial to the City. They are required to go out for an RFP and get at least three bids, even for a smaller project. He is not in favor of approving budget amendments; the City would need to dig deep to find the money. Vice Mayor Hodges opened to public comment. Robert Preston, 425 S. Bayshore Drive, commented on the benefits of purchasing vs. leasing. If the City needs the camera system, they need to find the money within the already adopted budget instead of doing a budget amendment. They are required to go out for an RFP. Other companies provide the same good service. Records retention also needs to be considered. The camera system January 28, 2020, BOC Workshop Meeting Minutes Page 2 of9 is needed because of safety concerns for the employees and citizens. He would like for the system to be expanded throughout the City eventually. C. Professional Records and Information Management Services- Clara VanBlargan, City Clerk City Clerk Clara VanBlargan said the City has been contracting the service to SML, Inc. for several years. The City utilizes offsite storage for most of its records because they have very little space, and they are in a flood zone. She explained the importance of having a consultant to perform the professional records and information management services and to have someone to assist in the public records request process. The Board could renew the contract with SML, Inc. and discuss an added position during the budget process. Commissioner Andrews asked the City Clerk what her recommendation would be. The City Clerk said she would later like to have someone inhouse part-time or full-time performing the services and to assist in the public records requests process because it can be very time-consuming. The consultant charges $2,000 a day for their services, and if she had a person to perform those services in-house and to assist in the public records request process, it would be more beneficial to the City because someone would be more available to the City, instead of 15 to 17 days a year at $2,000 a day. Commissioner Andrews said the consultant is great, but there is a need to bring somebody in to help with the public records request. He is open to any suggestions, and they would have to find the money for it. The City Clerk reported the status of where the consultant is on the process and said that the focus for FY 2020 is to get the electronic records stored on the City's systems up-to-date and to destroy the ones that have met their retention, including the video footage of the security camera system recently taken offline. She has been working on obtaining at least three prices that are required because the cost for the consultant is over $15,000. The Board decides and she would like to bring something to the Board to consider in February. Commissioner Weinstein said she would like to consider the options. The consultant has done an excellent job based on the abilities and the work produced. The City Manager said they could address the position needs and discuss that with the Board during the budget process. They currently need the expertise, as commented by the City Clerk, to take them to the next level in the process of dealing with the electronic records and video footage. Vice Mayor Hodges opened to public comment. There were no public comments. The Board consented to renew the contract with SML, Inc. and to discuss the new position needs during the budget process. D. National Softball Association (NSA) - 2020 Contract Pricing - Jay Hatch-Recreation Director January 28, 2020, BOC Workshop Meeting Minutes Page 3 of9 Recreation Director Jay Hatch said the proposal is to work with the National Softball Association to put together contract pricing for FY 2020. He gave the background of the organization and the history of the City working with them. Commissioner Weinstein asked the total amount of revenue vs. the small amount the City would be spending on maintenance. She is not looking for great revenue; she does not want to lose anything. Director Hatch explained it depended on the weekend, and what is needed on the City's part for them to have the event. The only time when they are losing money is when the fields sit empty. Commissioner Andrews said this is an administrative issue, and the Board does not need to weigh in on it. There is nothing done at the Recreation Center at a loss. The tournaments are all revenue- producing for the City. Vice Mayor Hodges opened to public comment. There were no public comments. E. John's Pass Seafood Festival -Jay Hatch, Recreation Director Recreation Director Jay Hatch explained the need to put together a new contract for the John's Pass Seafood Festival with the following additional items, which he explained. • I 0% contribution to the City from the John's Pass Seafood Festival proceeds which would be earmarked specifically for John's Pass Village beautification and improvements • Cooperative event grant application whereas the City of Madeira Beach and John's Pass Village Association will jointly file an application for event funding via eligible grants • Cooperative oversight and involvement with event planning and operations Mr. Hatch said the new proposed contract would allow the City to be more involved. There has been a lot of improvement to the festival in the past few years. The event brings revenue and contribution to the City. Commissioner Andrews said the event is a good thing, and they should always be working together with the merchants and the Seafood Festival. They have had a couple of ideas where a portion of the money goes into the beautification of John's Pass. It is a complete solution where everyone benefits; everybody helps each other by partnering, the money goes to marketing, and the City benefits because the event brings more people into the City, and the parking meters are all filled. Commissioner Weinstein said it is a good event and well attended, and hopefully, they will be adding more children activities. Commissioner Hodges commented in favor of the event. Sonny Flynn, John's Pass Village Association President, gave an overview of the upcoming festival and said they hoped to get the contract with the City. January 28, 2020, BOC Workshop Meeting Minutes Page 4 of9 Vice Mayor Hodges opened to public comment. There were no public comments. F. Friends of Parks and Recreation - Jay Hatch, Recreation Director Recreation Director Jay Hatch said the Board previously discussed the item and requested that it be discussed again. They are moving forward with Friends of Parks and Recreation and for them to form a 501(c)3, so they can have fundraising events to help offset some of the expenditures. Commissioner Andrews and Commissioner Hodges commented in favor of forming the committee. Commissioner Weinstein said she questioned previously if the committee should be an ad hoc committee opposed to a 50l(c)3 organization. Director Hatch explained the benefits of them forming a 501(c)3 organization. Someone from Recreation will serve as a non-voting member to the committee. The City Attorney said the Friends of Parks around the state are organized separately from the City and as a 501 (c)3. There would be public records issues depending on who is on the committee. By keeping the group separate, there would be no liability to the City. Director Hatch said the City would still assist with the corporation, insurance liability, etc. Vice Mayor Hodges opened to public comment. There were no public comments. The City Manager said the item would be on the agenda in February for approval. G. Marina Fund profit/Loss for FY 2019 and Comparison to FY 2018 - Walt Pierce, Finance Director. Finance Director Walt Pierce noted a date typo in his staff memo. He said he created a spreadsheet, Amendment # l, comparing FY 2018 and FY 2019 differences. The report illustrates, now, a $256,353.36 excess of FY 2019 revenue over expenditures. The City Auditor recently had said that he had no adjustments against the Marina, and if there are any adjustments to that number, it would not be anything significant at this time. The comparison to FY 2018 showed that fuel revenue decreased from FY 2018 to FY 2019 by $127,794, which he thinks was an initial part of Commissioner Andrews's concern. It was probably due to the reduction in discounts. However, the total fuel expenses decreased even more by $204,684.23. Director Pierce explained how he came up with the $127,794 fuel revenue figure. The total fuel sales in FY 2018, including unleaded diesel fuel sales and commercial sales, were $2,006,156.53. For FY 2019, it decreased by $127,000 to $1,878,361.77. The purchases for FY 2018 were $1,631,794.67, but for FY 2019, the purchases were $1,427,110.44. Although there was a decrease in revenue, the decrease in fuel sales contributed to a gross profit of 3%. He double-checked those numbers with the auditors, and they matched his figures. The $256,353 will be reported in the CAFR. Commissioner Andrews received clarification from Director Pierce that they are in a much better position this year than last year financially at the Marina. Reading a statement made by Director Pierce in his staff memo to the Board that he was unaware of his (Commissioner Andrews) public records request until prior to the meeting that day. He asked Director Pierce if that meant he was unaware he had requested the Marina profit and loss statements through the Clerk's office. Director January 28, 2020, BOC Workshop Meeting Minutes Page 5 of9 Pierce said there was some misunderstanding and apologized for any miscommunication. His goal today was to get the right numbers to the Board. Commissioner Andrews verified with the City Clerk that when he requested the Marina documents from her, that Mr. Pierce told her, he would have to speak to the City Manager about it, and the City Clerk confirmed so. Commissioner Andrews said because he did not receive the Marina documents as requested from Mr. Pierce, he had to request them from the Marina and received them. He did not have to get permission from the City Manager for any public records request. Director Pierce said he did not mind providing the requested documents; he wanted to wait to get concrete numbers from the auditor after completing the audit, and that was why the City Manager had asked that he speak to him about it. Commissioner Andrews said he asked the City Manager about it, and the City Manager rolled his eyes. Commissioner Andrews said Mr. Pierce mentioned in his staff memo to the Board that the documents he obtained from the Marina did not properly represent the complete picture. Commissioner Andrews said that was the starting point of the problem. Commissioner Andrews reviewed the unaudited budget report on page 82 of the agenda packet prepared by the Finance Director. He said the encumbrance amount showed $174,122.73 for FY 2019, which is the total amount minus the fuel purchases. In the report for FY 2018, there are no encumbrances listed. He asked if the audited version of FY 2019 is going to have any encumbrances, and Director Pierce said no, and that the audit and the CAFR only reported revenues and expenditures. The encumbrance will not show up because it is only a budgeted figure, which is the way encumbrances work. Although there is a purchase order against it, it does not become an expenditure until they make a payment. Purchase order amounts can be deleted, and the encumbrance rolled over to the new year. Commissioner Andrews said if the $174,122.73 is an expense, then that number comes off the $256,353. Director Pierce said the number does not show expended in the budget until it is paid. A purchase order can be deleted over time. It is not a purchase and not an obligation, its an encumbrance. Commissioner Andrews reviewed the Marina Fund Profit and Loss Statement for FY 2019 and Comparison to FY 2018 on page 78 and page 79 of the agenda packet. He said the last report the citizens received on the Marina was that the Marina had lost $550,000, and that was what the newspaper reported on the Marina audit based on the City's press release given to them. He asked Director Pierce if the Marina had lost $550,000 in FY 20 I 8. Director Pierce said no, he is showing that there was a net revenue over expenses in FY 2018 of $105, 122. Commissioner Andrews said the citizenry needed to know the truth. They think that the Marina lost $550,000, or the former Marina Director had stolen that amount. He asked that there be a retraction to the Beach Beacon that the Marina did not lose $550,000 and an apology be made to Mr. Marsicano. Director Pierce said he was not aware of that figure. The excess of revenues over expenses for FY 2019 was $105,000. The Marina did not lose $550,000 in FY 2018. Commissioner Weinstein asked if everyone agreed that Point of Order was proper to call at that time because they were not discussing a loss in the Marina Fund, but the comparison reports instead. She asked for a copy of what Commissioner Andrews had read that he said was reported about the Marina. January 28, 2020, BOC Workshop Meeting Minutes Page 6 of9 Commissioner Andrews said the citizenry thinks that the Marina lost $550,000 in FY 2018, which is not correct. That information came from the forensic fraud investigation, and the information reported about the Marina loss is not correct. He said Director Pierce just reported that the Marina made $105,000 in FY 2018 and did not lose $550,000 and reported that the expenditure for the audit was taken out of the profit margin for that year, and that is not supposed to happen. He asked that Director Pierce make a retraction to the Beach Beacon and report the truth to the public. Director Pierce said some discounts were levied, and some were improper. That was the figure the forensic auditors had come up with after making the calculations based on those discounts. This will be a successful year that will end at $256,353, which is a tremendous gross from the previous year of $105,000. Commissioner Andrews said if the encumbered purchase order amount rolls over to the new year, they will start with $174,000 in the hole for something they purchased in FY 2019. That was done so the numbers would look better. Director Pierce said, as an example, he encumbered $340,000 with a purchase order for the purchase of the generator. Chances are, only $250,000 will be spent, but the $340,000, instead of the $250,000, is encumbered. The $340,000 is a "not to exceed" amount. The remaining dollars are not available for the use of other things because it's encumbered to be rolled over to the new ye~r, which is the way encumbrance works. Commissioner Andrews said they should not have to look for other monies because excessive encumbered funds will be rolled over to another year to make the budget look good. The money was expended in FY 2018, so it was not an encumbrance. He asked Director Pierce to do a retraction for that because it makes the City look bad. To do a good service to the City is to let the citizenry know what is going on, and that would make him happy. Commissioner Weinstein commented that the figure gained or lost was not reported by City staff. She did not know where the number came from, but the main objective is that the bottom line is positive, which was accomplished by all City staff, and that is a good step forward. Commissioner Andrews read a press release that was written by the City's Chief Information Officer, stating that the forensic audit report showed that the estimated Marina losses totaled more than $550,000. That information was given to the newspapers to write. As Director Pierce stated, the Marina did not lose $550,000. The misinformation must be corrected because they do not need that kind of publicity. In the year they are talking about, they made $550,000. The citizens deserve to know the truth, and there needs to be a retraction. The City Manager said he would look into that. The meeting recessed at 4:21 p.m. and reconvened at 4:28 p.m. Vice Mayor Hodges opened to public comment. John Hendricks, 569 Normandy Road, commented that the City needed to apologize to the citizens and Dave Marsicano for the false statements. Helen Price, 13319 Boca Ciega Avenue, commented that in 2018 when Dave Marsicano was the Marina Director, the City's fuel sales were $550,000.00 plus, with the fuel discounts. The very January 28, 2020, BOC Workshop Meeting Minutes Page 7 of9 next year, when the Commission decided to do away with the discounts, they sold $350,000 in fuel. That one decision alone lowered the revenue by $200,000. Mr. Dave Marsicano deserves an apology from the City for the press report put out in the direction of former city manager Jonathan Evans by Mr. Curt Preisser, the City's Public Information Officer. The City should do a retraction. H. Amendment to Code of Ordinances, Sec. 2-386. Modification of Orders by Special Magistrate - Linda Portal, Community Development Director Community Development Director Linda Portal reviewed the item and said the proposed ordinance should facilitate a cleaner lean collection process. As they reviewed the process, they looked at better ways to enforce the liens. She explained the problems encountered with the special magistrate when trying to enforce the liens. If the Board is in favor of moving forward, she can bring back the other items dealing with the magistrate and get that all cleaned up at once. The City Manager said the items would be on the February meeting agenda. Vice Mayor Hodges opened to public comment. There were no public comments. I. Update on Proportionate-Share Development Regulations and Fees - Jerry Murphy, Consultant Planner. Planning Consultant Jerry Murphy gave an update on proportionate-share development regulations and fees. They are looking for direction at the February 11 th meeting for a decision. Vice Mayor Hodges opened to public comment. There were no public comments. J. Construction Administration Services for Crystal Island Roadway & Stormwater Improvements Project-Jamie Ahrens, Public Works Director. Public works Director Jamie Ahrens gave an update on the construction administration services for the Crystal Island roadway and stormwater improvement projects. He said it would cost $198,700 for Deuel and Associates to manage the project, and the staff is seeking direction to move forward and bring the item to the February meeting for approval. Commissioner Andrews said they had not approved the project yet, so it would be senseless to approve this item beforehand. The City Manager said he would put the item on the same agenda along with the project for approval. Vice Mayor Hodges opened to public comment. Helen Price, 13319 Boca Ciega A venue, asked if Deuel & Associates was one of the bidders, and the City Manager explained no. If approved by the Board, they will be the engineer overseeing the project. Following discussion of the agenda items, the City Manager asked for a consensus from the Board to allow Missy Hahn with the Treasure Island and Madeira Beach Chamber of Commerce to host a Candidate Forum in the Commission Chambers. The Board gave consensus and said it was good January 28, 2020, BOC Workshop Meeting Minutes Page 8 of9 transparency and public service to the community to allow the forum in the City's Commission Chambers. 5. ADJOURNMENT Vice Mayor Hodges adjourned the meeting at 4:48 p.m. ATTEST: Clara VanBlargan, MMC, MSM, City Cler January 28, 2020, BOC Workshop Meeting Minutes Page 9 of9