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HomeMy WebLinkAboutAgenda Council Agenda 062600BUDGET WORKSHOP JUNE 26,2000 Administration P Councilperson Clark - Is it wise to eliminate the Assistant City Manager position? P Councilperson Sabatello - What are we spending on legal now? What will it cost this year? Are these all the legal fees? P Councilperson Sabatello - Is training and education moved from another category? This is training of what? On page 22, Information Assistance Division, could you explain MIS Technician? Are some people being moved? On page 23, Office Equipment, is this part of the new facilities? Do we move old equipment around? Why aren’t these costs broken down by the using department? How do you control the amount of equipment in each department? Didn’t we purchase new equipment when we moved into this building? What is the video capture station? BUDGET WORKSHOP JUNE 26,2000 Finance 9 Councilperson Sabatello - Why are the grant writer and the lobbyist in the finance budget? What is the Arts Impact Fund? Is something wrong if the funds get larger and larger when they are not being spent? > Mayor Russo - What is the projected amount of money that will be raised annually by the proposed utility tax? If a utility tax is sunsetted, where will additional revenue come from to replace it? 9 Councilperson Furtado - What do we need the utility tax for? Is it for specific projects that are beginning and ending or for ongoing projects? 9 Mayor Russo - Is having only one revenue source considered a negative when bond rating institutions look at your financial statements? > Councilperson Sabatello - If you implement the utility tax, does anything prevent withdrawing it? 9 Mayor Russo - If we do not implement the public utility tax, what will the millage rate be? 9 Councilperson Clark - How many new positions are being added? 9 Mayor Russo - How can we evaluate this budget if we can’t find out where things were last year? Why did we budget $220,000 when we spent $500,000 this year? 9 Vice Mayor Jablin - What do we lose when we cut the budget by percentages? What are the committed costs vs. discretional costs? What are we getting for the increase? BUDGET WORKSHOP JUNE 26,2000 Public Works 9 Councilperson Furtado - When did we buy the ladder truck and how many times have we used it? How often do we use large equipment in Public Works? 9 Councilperson Furtado - Would you provide a breakdown of privatization costs for fleet maintenance and janitorial services compared to in-house costs? 9 Councilperson Sabatello - Explain, on page 16, Facilities Maintenance Division, the costs are rather substantial for adding 2 people? 9 Councilperson Furtado - Where are the people being paid from now? 9 Mayor Russo - Can you show where the numbers are allocated from? 9 Councilperson Furtado - Wouldn’t it be more efficient and less costly to privatize fleet services? 9 Councilperson Sabatello - Professional services, others, where was that last year? Contractual services, $54,000, where was that moved from? Repairs and maintenance, why was it $0 last year and now it is $101,000? Canal maintenance, where was it in the current budget? Are equipment purchases for redone areas? Land and improvements, what is that? What is the difference between categories 4600 and 6300? Is it $400,000 to maintain the canals? Was it in last year’s budget under a different category? Is it maintenance or repair? 9 Councilperson Clark - Why are we spending less on a critical safety issue (canals) and more on making the grass look nice? 9 Councilperson Furtado -What is the difference in funding between privatizing and adding new personnel in Public Works to handle janitorial services in new building? BUDGET WORKSHOP JUNE 26,2000 9 Mayor Ri sso - Do we n Parks and Recreation ed the capital projects? > Councilperson Sabatello - Is there a salary increase of $6,000 for 3 people? What are .3 170, Operating expenses, are they going to be done in-house or by the $300,000 consultant? On page 16, aquatics, did you move numbers around? 9 Councilperson Furtado - On page 10, $15,600 phone charges, is that for the whole year? Do we have a special plan here in the City? > Councilperson Sabatello - Should there be cellular phones used by certain people in the City? 9 Councilperson Furtado - What is the number of cell phones in the City and what is the cost? > Councilperson Sabatello - By lumping costs together, does it allow departments more flexibility in moving funds around? Is the equipment new or replacing equipment? 9 Councilperson Furtado - Does this budget reflect any changes in providing a full-time supervisor at night? 9 Councilperson Sabatello - Are the ball field repairs included in this budget? BUDGET WORKSHOP JUNE 26,2000 Growth Management > Councilperson Sabatello - Provide a breakdown of Engineering services. Do the revenues collected through application fees offset the costs of these services? Would the engineering department pay for itself? Would Engineering consultant fees of $300,000 be paid for? 9 Councilperson Furtado - What did we spend totally on Engineering this year? > Councilperson Sabatello - Will revenues offset costs for in-house engineering? If we add a building inspector, would fees generated by building permits pay for the inspector? > Mayor Russo - Can we get a report on what the users pay to offset the cost of the service? BUDGET WORKSHOP JUNE 26,2000 Police 9 Councilperson Sabatello - Are there 4 additional police officers? There appear to be more that 4 additional persons in road patrol. If there are only 4 new people, why is there a $200,000 increase? What does the building rental cost reflect? Why has the line item “materials and supplies” increased so much throughout the budget? In professional services, road patrol, does “other” inc1,ude medical? 9 Councilperson Furtado - Would it be clearer to the public if broken down? 9 Councilperson Sabatello - What is $194,980 in equipment-.6400 on page 18? P Mayor Russo- Are there take home vehicles in this year’s budget? Why weren’t we told about it? 9 Councilperson Sabatello - Operating transfer .9130, this has been increased from $451,000 to $593,00, how many automobiles are you talking about? What constitutes that number? How many vehicles are you replacing? 9 Mayor Russo - How many additional cars are you buying this year? How about the take home cars? 9 Councilperson Furtado - How does the cost in the police budget for fleet maintenance tie into the Public Works budget? How much of this is in City parameters and how much is outside? 9 Councilperson Sabatello - Last year there was an expense of $45 1,000 in this area and this year it is $593,000, why is there an increase of $142,000? 9 Mayor Russo - Chief, am I correct in saying that in this year’s budget you are going to spend $8,100,000 and next year it’s $9,500,000? What is the reason for this? Do we have enough staff? How much is the overall budget increasing, including non- controllable items? 9 Councilperson Sabatello - Account #521.4110, telephone went for $1,500 last year, its $80,000 this year, what does that mean? I’ll continue, .4420, equipment rental, last year $400, this year $32,000, .4600, repair and maintenance, $0 last year, this year $100,700 this year? Materials and supplies again, ,5200, $0 last year, $24,700 this year? Operating expenses total last year was$65,000 this year it’s $339,000? BUDGET WORKSHOP JUNE 26,2000 Fire k Councilperson Sabatello - The number in last year’s budget to this year’s budget, just in the new fire station, what is the increase? k Mayor Russo - You are showing that this budget is increasing by $1,5 10,000. In that increase you have $1,500,000 in capital outlay. That capital outlay isn’t really a budget item that we are raising taxes for, because we are borrowing the money against that. Am I correct? The true actual increase is about $400,000? k Councilperson Sabatello - Explain why on Page 24, Fire suppression division, $1,688,000 salary and wages, increased to $2,000,000? Repair and maintenance, $0 last year, $76,000? Vehicle maintenance? Materials and supplies? k Councilperson Furtado - When did we buy the ladder truck and how many times have we used it? BUDGET WORKSHOP JUNE 26,2000 9 Councilperson Furtado -What is the difference in funding between privatizing and adding new personnel in Public Works to handle janitorial services in new building? 9 Councilperson Sabatello - Will revenues offset costs for in-house engineering? If we add a building inspector, would fees generated by building permits pay for the inspector? 9 Mayor Russo - What is the projected amount of money that will be raised annually by the proposed utility tax? If a utility tax is sunsetted, where will additional revenue come from to replace it? 9 Councilperson Furtado - What do we need the utility tax for? Is it for specific projects that are beginning and ending or for ongoing projects? 9 Mayor Russo - Is having only one revenue source considered a negative when bond rating institutions look at your financial statements? 9 Councilperson Sabatello - If you implement the utility tax, does anything prevent withdrawing it? 9 Mayor Russo - If we do not implement the public utility tax, what will the millage rate be? 9 Councilperson Clark - How many new positions are being added? 9 Councilperson Furtado - Wouldn’t it be more efficient and less costly to privatize fleet services? Police 9 Councilperson Sabatello - Are there 4 additional police officers? There appear to be more that 4 additional persons in road patrol. If there are only 4 new people, why is there a $200,000 increase? What does the building rental cost reflect? Why has the line item “materials and supplies” increased so much throughout the budget? In professional services, road patrol, does “other” include medical? 9 Councilperson Furtado - Would it be clearer to the public if broken down? 9 Councilperson Sabatello - What is $194,980 in equipment-.6400 on page 18? P Mayor Russo- Are there take home vehicles in this year’s budget? Why weren’t we told about it? > Councilperson Sabatello - Operating transfer .9130, this has been increased from $45 1,000 to $593,00, how many automobiles are you talking about? What constitutes that number? How many vehicles are you replacing? P Mayor Russo - How many additional cars are you buying this year? How about the take home cars? P Councilperson Furtado - How does the cost in the police budget for fleet maintenance tie into the Public Works budget? How much of this is in City parameters and how much is outside? > Councilperson Sabatello - Last year there was an expense of $45 1,000 in this area and this year it is $593,000, why is there an increase of $142,000? P Mayor Russo - Chief, am I correct in saying that in this year’s budget you are going to spend $8,100,000 and next year it’s $9,500,000? What is the reason for this? Do we have enough staff! How much is the overall budget increasing, including non- controllable items? P Councilperson Sabatello - Account #521.4110, telephone went for $1,500 last year, its $80,000 this year, what does that mean? I’ll continue, .4420, equipment rental, last year $400, this year $32,000, .4600, repair and maintenance, $0 last year, this year $100,700 this year? Materials and supplies again, .5200, $0 last year, $24,700 this year? Operating expenses total last year was$65,000 this year it’s $339,000? Fire P Councilperson Sabatello - The number in last year’s budget to this year’s budget, just in the new fire station, what is the increase? P Mayor Russo - You are showing that this budget is increasing by $1,510,000. In that increase you have $1,500,000 in capital outlay. That capital outlay isn’t really a budget item that we are raising taxes for, because we are borrowing the money against that. Am I correct? The true actual increase is about $400,000? P ~ Councilperson Sabatello - Explain why on Page 24, Fire suppression division, $1,688,000 salary and wages, increased to $2,000,000? Repair and maintenance, $0 last year, $76,000? Vehicle maintenance? Materials and supplies? > Councilperson Furtado - When did we buy the ladder truck and how many times have we used it? How often do we use large equipment in Public Works? Growth Management > Councilperson Sabatello - Provide a breakdown of Engineering services. Do the revenues collected through application fees offset the costs of these services? Would the engineering department pay for itself? Would Engineering consultant fees of $300,000 be paid for? > Councilperson Furtado - What did we spend totally on Engineering this year? P Mayor Russo - Can we get a report on what the users pay to offset the cost of the service? Parks and Recreation P Mayor Russo - Do we need the capital projects? > Councilperson Sabatello - Is there a salary increase of $6,000 for 3 people? What are .3170, Operating expenses, are they going to be done in-house or by the $300,000 consultant? On page 16, aquatics, did you move numbers around? > Councilperson Furtado - On page 10, $15,600 phone charges, is that for the whole year? Do we have a special plan here in the City? > Councilperson Sabatello - Should there be cellular phones used by certain people in the City? > Councilperson Furtado - What is the number of cell phones in the City and what is the cost? > Councilperson Sabatello - By lumping costs together, does it allow departments more flexibility in moving funds around? Is the equipment new or replacing equipment? > Councilperson Furtado - Does this budget reflect any changes in providing a full-time supervisor at night? > Councilperson Sabatello - Are the ball field repairs included in this budget? Public Works > Councilperson Furtado - Would you provide a breakdown of privatization costs for fleet maintenance and janitorial services compared to in-house costs? > Councilperson Sabatello - Explain, on page 16, Facilities Maintenance Division, the costs are rather substantial for adding 2 people? > Councilperson Furtado - Where are the people being paid from now? > Mayor Russo - Can you show where the numbers are allocated from? > Councilperson Sabatello - Professional services, others, where was that last year? Contractual services, $54,000, where was that moved from? Repairs and maintenance, why was it $0 last year and now it is $101,000? Canal maintenance, where was it in the current budget? Are equipment purchases for redone areas? Land and improvements, what is that? What is the difference between categories 4600 and 6300? Is it $400,000 to maintain the canals? Was it in last year’s budget under a different category? Is it maintenance or repair? > Councilperson Clark - Why are we spending less on a critical safety issue (canals) and more on making the grass look nice? Administration > Councilperson Clark - Is it wise to eliminate the Assistant City Manager position? > Councilperson Sabatello - What are we spending on legal now? What will it cost this year? Are these all the legal fees? > Mayor Russo - How can we evaluate this budget if we can’t find out where things were last year? Why did we budget $220’00 when we spent $500,000 this year? > Councilperson Sabatello - Is training and education moved from another category? This is training of what? On page 22, Information Assistance Division, could you explain MIS Technician? Are some people being moved? On page 23, Office Equipment, is this part of the new facilities? Do we move old equipment around? Why aren’t these costs broken down by the using department? How do you control the amount of equipment in each department? Didn’t we purchase new equipment when we moved into this building? What is the video capture station? Finance I+ Councilperson Sabatello - Why are the grant writer and the lobbyist in the finance budget? What is the Arts Impact Fund? Is something wrong if the hnds get larger and larger when they are not being spent? Budget P Vice Mayor Jablin - What do we lose when we cut the budget by percentages? What are the committed costs vs. discretional costs? What are we getting for the increase? BUDGET WORKSHOP JUNE 26,2000 9 Councilperson Furtado -What is the difference in funding between privatizing and adding new personnel in Public Works to handle janitorial services in new building? 9 Councilperson Sabatello - Will revenues offset costs for in-house engineering? If we add a building inspector, would fees generated by building permits pay for the inspector? 9 Mayor Russo - What is the projected amount of money that will be raised annually by the proposed utility tax? If a utility tax is sunsetted, where will additional revenue come from to replace it? 9 Councilperson Furtado - What do we need the utility tax for? Is it for specific projects that are beginning and ending or for ongoing projects? 9 Mayor Russo - Is having only one revenue source considered a negative when bond rating institutions look at your financial statements? 9 Councilperson Sabatello - If you implement the utility tax, does anything prevent withdrawing it? 9 Mayor Russo - If we do not implement the public utility tax, what will the millage rate be? P Councilperson Clark - How many new positions are being added? 9 Councilperson Furtado - Wouldn’t it be more efficient and less costly to privatize fleet services? Police 9 Councilperson Sabatello - Are there 4 additional police officers? There appear to be more that 4 additional persons in road patrol. If there are only 4 new people, why is there a $200,000 increase? What does the building rental cost reflect? Why has the line item “materials and supplies” increased so much throughout the budget? In professional services, road patrol, does “other” include medical? 9 Councilperson Furtado - Would it be clearer to the public if broken down? 9 Councilperson Sabatello - What is $194,980 in equipment-.6400 on page 18? > Mayor Russo- Are there take home vehicles in this year’s budget? Why weren’t we told about it? > Councilperson Sabatello - Operating transfer .9 130, this has been increased from $451,000 to $593,00, how many automobiles are you talking about? What constitutes that number? How many vehicles are you replacing? > Mayor Russo - How many additional cars are you buying this year? How about the take home cars? > Councilperson Furtado - How does the cost in the police budget for fleet maintenance tie into the Public Works budget? How much of this is in City parameters and how much is outside? > Councilperson Sabatello - Last year there was an expense of $45 1,000 in this area and this year it is $593,000, why is there an increase of $142,000? > Mayor Russo - Chief, am I correct in saying that in this year’s budget you are going to spend $8,100,000 and next year it’s $9,500,000? What is the reason for this? Do we have enough staff? How much is the overall budget increasing, including non- controllable items? > Councilperson Sabatello - Account #52 1.41 10, telephone went for $1,500 last year, its $80,000 this year, what does that mean? I’ll continue, .4420, equipment rental, last year $400, this year $32,000, .4600, repair and maintenance, $0 last year, this year $100,700 this year? Materials and supplies again, .5200, $0 last year, $24,700 this year? Operating expenses total last year was$65,000 this year it’s $339,000? Fire > Councilperson Sabatello - The number in last year’s budget to this year’s budget, just in the new fire station, what is the increase? > Mayor Russo - You are showing that this budget is increasing by $13 10,000. In that increase you have $1,500,000 in capital outlay. That capital outlay isn’t really a budget item that we are raising taxes for, because we are borrowing the money against that. Am I correct? The true actual increase is about $400,000? 9 Councilperson Sabatello - Explain why on Page 24, Fire suppression division, $1,688,000 salary and wages, increased to $2,000,000? Repair and maintenance, $0 last year, $76,000? Vehicle maintenance? Materials and supplies? 9 Councilperson Furtado - When did we buy the ladder truck and how many times have we used it? How often do we use large equipment in Public Works? Growth Management 9 Councilperson Sabatello - Provide a breakdown of Engineering services. Do the revenues collected through application fees offset the costs of these services? Would the engineering department pay for itself? Would Engineering consultant fees of $300,000 be paid for? 9 Councilperson Furtado - What did we spend totally on Engineering this year? 9 Mayor Russo - Can we get a report on what the users pay to offset the cost of the 9 9 > 9 9 > 9 > 9 9 service? Parks and Recreation Mayor Russo - Do we need the capital projects? Councilperson Sabatello - Is there a salary increase of $6,000 for 3 people? What are .3 170, Operating expenses, are they going to be done in-house or by the $300,000 consultant? On page 16, aquatics, did you move numbers around? Councilperson Furtado - On page 10, $15,600 phone charges, is that for the whole year? Do we have a special plan here in the City? Councilperson Sabatello - Should there be cellular phones used by certain people in the City? Councilperson Furtado - What is the number of cell phones in the City and what is the cost? Councilperson Sabatello - By lumping costs together, does it allow departments more flexibility in moving fhds around? Is the equipment new or replacing equipment? Councilperson Furtado - Does this budget reflect any changes in providing a full-time supervisor at night? Councilperson Sabatello - Are the ball field repairs included in this budget? Public Works Councilperson Furtado - Would you provide a breakdown of privatization costs for fleet maintenance and janitorial services compared to in-house costs? Councilperson Sabatello - Explain, on page 16, Facilities Maintenance Division, the costs are rather substantial for adding 2 people? 9 9 9 9 9 9 9 Councilperson Furtado - Where are the people being paid from now? Mayor Russo - Can you show where the numbers are allocated from? Councilperson Sabatello - Professional services, others, where was that last year? Contractual services, $54,000, where was that moved from? Repairs and maintenance, why was it $0 last year and now it is $101,000? Canal maintenance, where was it in the current budget? Are equipment purchases for redone areas? Land and improvements, what is that? What is the difference between categories 4600 and 6300? Is it $400,000 to maintain the canals? Was it in last year’s budget under a different category? Is it maintenance or repair? Councilperson Clark - Why are we spending less on a critical safety issue (canals) and more on making the grass look nice? Administration Councilperson Clark - Is it wise to eliminate the Assistant City Manager position? Councilperson Sabatello - What are we spending on legal now? What will it cost this year? Are these all the legal fees? Mayor Russo - How can we evaluate this budget if we can’t find out where things were last year? Why did we budget $220,00 when we spent $500,000 this year? Councilperson Sabatello - Is training and education moved from another category? This is training of what? On page 22, Information Assistance Division, could you explain MIS Technician? Are some people being moved? On page 23, Office Equipment, is this part of the new facilities? Do we move old equipment around? Why aren’t these costs broken down by the using department? How do you control the amount of equipment in each department? Didn’t we purchase new equipment when we moved into this building? What is the video capture station? Finance Councilperson Sabatello - Why are the grant writer and the lobbyist in the finance budget? What is the Arts Impact Fund? Is something wrong if the funds get larger and larger when they are not being spent? Budget 9 Vice Mayor Jablin - What do we lose when we cut the budget by percentages? What are the committed costs vs. discretional costs? What are we getting for the increase? ProDoceaB,,a et FY 2- I i City of Palm Beach qardens I June, 2000 I $28,234,477 $33,840,972 $5,606,495 - I F F L I H Admin 2.8 H Fire 26.9% -" H P lice MO/o Finance 3.4% Public Works I8.g0/o H Parks 13.7% _J Growth Mgmt. 14.3 O/o 3 ... * c T Increas Police $777,874 0 Fire $1,510,064 Growth $803,939 Parks $770,016 P/W $1,058,3 25 $395,772 $382,102 $1,388,738 $121,326 $470,330 $333,609 $654,487 $1155 29 4. ‘. - - m2,E - - $245,437 E%:$ I Admin $156,914 $3,697 $153,217 HR $198,472 $1 12,853 $84,654 Finance $192,060 $100,639 $91,421 Total $5,606,495 $4,079,200 $1,527,295 - Gener(=’i $138,831 I $138,83 1 $0 4 Comr itt Id Cos t SI cost obligated or otherwise c mmitted, utility, maintenance, debt sen Una 3 in for whi ncludinl ce cost! sts whic zvels of :h the City is legally I salary increases, I h are not obligated service. 5 I * Union contracts * Additional fire stbtion and staff * Mz-icipai Lompl x debt service * Maintenance (gr unds and custodial for Municipal Complex f * Utilities * Tennis Center debt service I Police F-- maintain the City telephone sy3telli and support 25 existing and 15 projected data terminals in poke vehicles. Lobby Police Aide $14,125: (1/2 year): TO service the lobby counter in the I Police Dept. including fingerprinting and officer related duties. waster offic_ 2r Pr -1 'a $12,000; To allow an )$ram which offers growth, opportunity to advancement, 7 I To provide incr based servi es in trafhc enforcement, community involvement, and communi problem solving activities. t f $14,869 (1/2 year)- TO administer off dL,y and o\,rtime assignments and alarm billing, thus freeing up an officer tol perform enforcement duties. Tral-ic Et iipment $ 6,400: To replace old radar units. * 4,000: This ::ern was identified as crLdI tquipment by RID Mgmt. Equipment to protect en doyees against blood pa hogens. - I L ‘- detc-% -- El-u’-,mer- w- 8 f t r -0 I z .Advert luit nr- -- $7,640: ove -I -- nent'--- from Hurl iai I Resources to Police Bu gt;. d e 'OCI a1 ' $159,000: This , Ogri 11 ic 5 years as well as providi g greater the community. n ! vehicles from 2 to police presence in 9 t 0 I ;229,636: To p wide rnorc&k:ienF I ssirly Or welopment review rojects by bringing the function in house. Will generate a inimum of $200,000 in J 7 revenue. I $42,374: To meet the growing bzmal Id fz king insp xtions. Will generate approx $45,000 in additional revenue. 1~ nl p! W w SI .- as-- .= I I n urn, xre 11 $36,515: To provide more inspections and 1s of enforcement. rovide customer service and i I .a&- &. I1 A - - --- -- 'I otal: $115,529 I- - I n'lmance ---- F- $28,362: Tennis CE Maintain new :er "--7enfiS----, - $32,167: Combines part time staff fbu v,erall, ly Burns Rbad Community Center. 12 I\\ I L ’ I\[’ $25,C-10; Lr-.. lg counters, partitions, flooring, mirrors, and toilets in an 18 year old ’I rr: k. i. c? I C! L I t: sk ---all, and athlt-ic courts to ensure safety and playability at Plant Dr. & PGA Park. $30,000; Resurface tennis, 13 Mamtenance 111, $26,582: To provide level 2 service by completing requests \--'thin 3 days. ~ Heavy Equip. Operator, $3 ,403; To operate street sweeper and meet NPDES unfunde man ates. Id ~ Light Equip. Operator, operate sidewalk sweeper and meet NPDES Maintenance 11, and vegetation, remob e I \I 'C c .I I c 1 1 irri - 2ti < . e- in I ms and road ROWS. $19,95Ot Landscape materials -IS Jr City c med I lads and ROWS. ''met swaane $49,316: To meet unfunded NPDES regulatii IS a j I aintain clean ROWs. 15 i F I iTotaI: $1153 I , il I 4 ~ h , j Records Management kL -~ $25,000: TO obtain professional microfilming services to1 comply with legal requirements for document preservation. MIS Technician, $46,422: of the City. GIs Technician, $18,895: managemer I;, mapping and other Equipment needs, $62,9d0 equipment needk of all City De I , f6 I I I ~ Compensation Study: $30,000: To ensure internal equity wif . union wages, reduce tur~nover, and provide continuity of services to residents. 1 WdlneSS Program, $3,000: To reduce medical claim costs and absenteeism due to illnes$ or injury. To help contro medical premium costs. Safety Progr---n, $16,900 Tu bring, the City into mnpliazl and increasing safety awareness. vlth F.S. 381 by providihg a safe work environment 17 - E iuman ReSo+rcesl I II I nan I' process new POI - n: _. y wic-. A 0 J $3,445: To H~I I Ian Resourues profession to higl students. A I ~ ffer ah introduction into the School and college I IbL. i r= -L Uncomnii draft, and review all City Bid blid RFP specs, and to improve pu rchasi ng procedures GI '7t writer, $62,500: To increase grant funding for -.Q 3J( i. Advanced Financial Re .' 'aining, $1,400: To :.eep up to ute with new a,,,,. g sdndards. m a , I i ! Direct staff to prhsent [a 8- presentation to ksidenb m * Direct staff to bring Erfi - .=Gri-- services in house ,J begin recruitment. Place Utility tax on July 2*tr ti agenda. I I iqcil meeting I I Coordinate with the deve- nbunity to ____-___- 8 1 SI uressladditional I " 1 alternative funding sourc devel - .- ment review servic-s, r We would like 1 th with Christy Murphy Janice Scarinci Dick Holliday Charlie Miller i Ltm BIOOd LtD Artoloa Com Bestland Corn. Olsen Dan McDade Jim Norquest Mary Smith Richard Geist Vicki Wade rv I J' jan 3 E iville Y I c . CITY OF PALM BEACH GARDENS MEMORANDUM TO: APPROVED: Bob Patty, Director of Public Works Rs 7 Beth Ingold - Love, Assistant to the City Manager DATE: June 7,2000 FROM: Mark Vadas, Superintendent of Vehicle Maintenance SUBJECT: Fleet Maintenance Privatization Feasibilitv Studv Please fmd attached a copy of a recent study or request for information regarding the privatization of Fleet Maintenance. This information was presented by, then Assistant Director Hal Beard to Bob Patty Public Works Director, on December 27, 1999. The total number of units presented in Mr. Beards report needs to be increased fiom 275 units to 384 units to accurately reflect the total number of units in the miscellaneous category (trailers, weedeaters, small two cycle engine repairs, mowers, etc.). Basically the principals he outlined are still valid; namely, there are no County or State Organizations to our knowledge that have out sourced the maintenance. I believe that the Vehicle Maintenance Division can be more productive by out sourcing elements of our job responsibilities ( such as painting, large truck tire, vehicle recovery, etc). Continued examination of further elements to out source is an ongoing process within this Division. It is my opinion and recommendation, that at the present time, the Department continue in it’s present course of action, complete with the privatized elements, now out sourced to local vendors. Should you have any questions, please advise. CC: file I MEMORANDUM TO: FROM: DATE: February 11,2000 SUBJECT: Richard Diamond, Assistant City Manager Pete Bergel, Interim Director of Public Works Fleet Maintenance Privatization Feasibility Study Per your request, the Public Works Department has completed a privatization study of the Fleet Maintenance Department. I have reviewed my staffs report, which is attached, and will summarize their findings. In the Operations Overview section of the Staff Report, it is explained that there are numerous fixed costs that will remain a continuous cost to the City whether the Fleet Maintenance Department is privatized or stays in house. These fixed costs include: vehicle purchase, fuel and lubricants, vehicle and equipment parts, tires, tubes, and maintenance on all fueling stations, i.e. compressed natural gas station. The total Fleet Maintenance current budget is $1,123,391. Of that total, $759,548 would be considered a fixed amount, which equals 68 percent of the overall budget. The remaining $363,843 would be considered the cost of personnel services. To calculate an hourly rate that the current division would generate, I directed my assistant to be very conservative on actual time spent in a day on actual time worked, due to breaks, lunch time, start-up and clean-up time. The figure used was 5 hours per day, when in actuality staff feels this number would be closer to 6 out of 8 hours per day. The total of all hours worked for a year was divided into the personnel services amount, including their benefits package. This equation gave us an accurate current hourly shop rate of $40 per hour. Staff has performed several local shop rate functions of outside vendors. These rates varied from $55 to $85. If you average all of these rates from the lowest to the highest, the average outside shop rate is $65 per hour. I have attached a list of these outside rates for your review. 1 Richard Diamond Page Two February 11,2000 Ryder Transportation Services, Inc. is currently performing this service at Ft. Lauderdale and Miami, utilizing municipal facilities. These shop rates are based on over 1,000 units per facility. Although our current facility (due to size and equipment limitations) is near maximum capacity, our staff is diligently striving to improve capacity as well as turn-around time to other City departments. Once a new facility, properly designed and constructed, is operational, I believe our staff can and will provide fleet maintenance services more efficiently and timely than an outside vendor. I would like to explore the possibility of relocating Fleet Maintenance to Fire Station Four (when it is relocated) until such time as a new Public Works facility is constructed. Should you have any questions or comments concerning this matter, please do not hesitate to contact me at any time. PB:jbv Attachments cc: Nabar Martinez, City Manager File . Telephone-775-8274 City of Palm Beach Gardens Public Works Department Fax-775-8279 MEMORANDUM To: Bob Patty, Director Public Works From: Hal Beard, Asst. Director Public Works Subject: Fleet Maintenance Privatization Feasibility Study Date: December 27,1999 Per your request, I have prepared a summary developed by my staff (Dick Holliday, Mark Vadas and Charlie Miller) and I, concerning the feasibility of privatizing Fleet Maintenance for the City of Palm Beach Gardens. Operations Overview The present budget for FY 1999/2000 for Fleet Maintenance is $1,123,391. Of that, $562,500 or 50% is the fixed cost of purchasing new vehicles and fuel for the year. This fixed cost will remain an operating expense to the general fund even if fleet services are privatized. Other expenses that would generally be considered a fixed cost are CNG Maintenance ($5,000), Lubricants ($9,100), Vehicle Maintenance Parts ($140,000) and Tubes & Tires ($42,948). The remaining $363,843 is the cost of Personnel Services ($257,502), Operating Transfer to the General Fund ($48,325) and Miscellaneous Operating Expenses ($58,016). The Fleet Maintenance operation is performed at the Public Works Complex located on Burns road, consisting of one (1) Fleet Manager (supervisor) one (1) Maintenance IV (shop foreman), three (3) Maintenance 111 (mechanics), one (1) Maintenance I1 (mechanic assistant) and one (1) Maintenance I (general maintenance). There are 275 total units that are the responsibility of the Fleet Maintenance Division. The following is the break down of the unit categories: No. Vehicles (Sedans & Pick-ups) 112 Motorcycles 9 40 61 Miscellaneous (Weed Eaters, Small Engines) 3 Heavy Equipment (Bulldozer, Dump Trucks, FireEMS Vehicles) Light Equipment (Mowing Tractors, Lawn Mowers, Bobcat) Total Units 275 Priva t bat ion The City posted a request with The Florida League of Cities for any city or county in Florida that has privatized their fleet maintenance operations to contact Palm Beach Gardens. There was no response fi-om any city or county in the State of Florida to our request. On the ICMA Management Information Service web site, the only government entity that had an interest in privatizing fleet maintenance was Volusia County, which in 1991 pursued the privatization of their operations. Upon talking to Dave Crocker, Fleet Manager of Volusia County, the privatization of fleet maintenance was not successfbl and after trying for a year, the decision was made to keep it in-house. Summarizing Mr. Crocker’s words, the main issues that privatization addresses is management practices and technical requirements of the job, which are issues that are the same for private and public agencies. With a good fleet manager, modern facilities and a commitment to continued education of the employee’s, a government fleet operation can compete and beat the private sector. Volusia County built a new fleet maintenance facility four years ago and the fleet operation has become very successfbl. They are presently repairing their vehicles for approximately $15.00 per hour less then what the private sector charges in his area. Investigating fiuther, I talked to Bob Stanton, Fleet Manager for Polk County and Vice President of FLAGFA (Florida Association of Governmental Fleet Administrators) concerning fleet privatization. Mr. Stanton had just completed a statewide survey concerning fleet operations and found no municipal fleet operations in the State of Florida that has privatized it’s fleet services where the repairs were done off site. He sited the maior logistical problems of taking vehicles and ecluiDment to off site locations to be repaired. The offsite vendors are not dedicated to your fleet only and you would have to schedule repairs to meet their work load or in an emergency, time would be lost trying to get “in line “ with the other vehicles being repaired. The few municipalities that have privatized had a large stand alone fleet operation, such as Ft Lauderdale, that was taken over by a private company. This is what I have found to be the case nationally as stated below. Nationally, there are fleet operations that are privatized. In the cases that I have been able to review, all were instances where there was a centralized fleet maintenance facility, which was run by public sector employees. The government agency contracted out the entire fleet operation with a private company that took over the fleet facility and staffed it as if it were part of the government operation. Generally this is taking place were there are large fleets and/or in urbanized areas, where the private contractor would have a number of fleet operations to make it economically feasible based on the prior public sector budget. Summary The City of Palm Beach Gardens Fleet Maintenance Division already is out- sourcing a number of fleet maintenance activities. The contractual vehicle maintenance budget for FY 9912000 is $25,500. The following is a list of out- source functions: 1. All body work and painting of city vehicles 2. All vehicle graphics for police and fire. 3. Transmission repairs 4. Hydraulic cylinder and pump repairs 5. Major engine rebuilds 6. Heavy equipment brakes & suspension 7. Front end alignments 8. Motorcycle tire mount & balance 9. Motorcycle engine adjustments at 1000 & 5000 miles. 10. 1000 & 5000 mile inspection & service on police motorcycles 1 1. Large truck & off road tire repair and replacement 12. Windshield and glass replacement. These functions are out-sourced at this time to provide service to the departments in a timely matter and to be more efficient with the limited space available. In summary, as determined in the recent survey by FLAGFA and through talking with numerous fleet managers, staff and I feel it would not be advantageous to privatize fleet maintenance at this time. Based on the FY 1999-2000 Fleet Maintenance budget, staff estimates that the present average hourly rate is $40.00 per hour. This rate is based on a conservative estimate of each of the seven (7) mechanics actually working on a vehicle 63% of an eight (8) hour day (See attached work sheet) and includes the $25,500 for contractual vehicle maintenance. The average rate charged by the local vendors offsite is $65.00 per hour. The Fleet Maintenance Department realizes that there have been problems with the level of service provided to the City departments. We are working diligently to correct those problems were it is feasible, however, until a new facility is provided, the level of service has reached the maximum capability. If I can provide any further information, please do not hesitate to call. 4 8 Fleet Maintenance Hourly Rate $363,843 - Remaining amount of the Fleet Maintenance budget after deducting fured cost 7 mechanics x 2080 hours = 14,560 total available hours per year 14,560 x 63% = 9172.8 productive hours $363,843 / 9172.8 = $39.67 per hour or $40.00 City of Palm Beach Gardens Public Works Department Fleet Management Fund Organization Chart SUPERVISOR Fleet Management Mechanic IV Shop Foreman Mechanic II 7