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CC07-11-2022Min_WS LONGWOOD CITY COMMISSION Longwood City Commission Chambers 175 West Warren Avenue Longwood, Florida WORK SESSION MINUTES July 11, 2022 5:00 P.M. Present: Mayor Matt Morgan Deputy Mayor Tony Boni Commissioner Abby Shoemaker Commissioner Matt McMillan Commissioner Brian D. Sackett Clint Gioielli, Acting City Manager Michelle Longo, City Clerk David P. Dowda, Police Chief Mike Peters, Fire Chief Chris Kintner, Community Development Director Shad Smith, Public Works Director Chris Capizzi, Leisure Services Director Craig Dunn, Information Technology Director Judith Rosado, Finance Director Magdala Riodore, Human Resources Director Andrew Marsian, Utilities Manager 1. CALL TO ORDER. Mayor Morgan called the meeting to order at 5:01 p.m. 2. REVIEW AND DISCUSS THE PROPOSED BUDGET FOR FISCAL YEAR 2022- 2023 Deputy Mayor Boni moved to suspend the rules and the motion was carried by a unanimous voice vote. Mr. Gioielli provided a brief overview of the budget. He thanked Ms. Rosado, the financial team, and each of the Directors and staff who have worked on the proposed budget. He said this proposal has been completed while considering all their priorities. First, the budget takes into account that the services offered to their citizens are never reduced or compromised and, in some cases, even enhanced. The City continues CC 07-11-2022/1 to strive to be a preferred employer to current and future team members. Operational capital needs are satisfied in the proposed budget while not extending debt service whenever possible. He stressed it is important that they always have the City maintain a healthy budget with a healthy fund, balance, or general fund reserve, which has been accomplished in this proposed budget with a reserve of 22%. Lastly, he noted, it is a priority to continue to apply conservative budgeting and spending principles, so there are no proposed tax increases, and this objective has been met in the current proposed budget. He stated they had already received some of the Commissioner's input in advance of the meeting and they look forward to additional feedback at the conclusion of the workshop. Mr. Gioielli then spoke about the budget details. He said this proposed budget totals $62.1 million and is a 7% increase over the current year's adopted budget.The proposal has expenditures at approximately$45.6 million or a 5.1% increase compared to the current year. For budget considerations, he noted the City has experienced accelerated inflation, currently tracking at 8.6%and that has had an impact on the preparation of the proposed budget. He said they are seeing higher costs in fuel, contractual services, repairs and maintenance, supplies and equipment, property liability workers comp insurance, and capital costs. Additionally, they have had some end-of-life issues arising about information technology and equipment. He said the budget not only considers the hardware upgrades and support that the City needs, but also addresses the intense cyber security issues that they are seeing across the country. He said the IT(Information Technology) director, Mr. Dunn, would highlight the advancements and preparation that he has done to keep the City functioning and safe from these types of attacks. Beyond those that could be considered negative impacts, there are also positive efforts he highlighted. He said the City has been notified that they can expect a revenue ad valorem tax revenue increase of 11.8%over the current year. He said they think that is in part a result of the hard work of their economic development efforts associated with property values, new construction, and annexation. He went on to say commercial stormwater billing issues have been corrected with historical calculations being taken under consideration to make sure that even the commercial sector is contributing appropriately to stormwater needs. He said the City is also starting to receive impact fees from developers, and they are already in the next steps to transition impact fees away from Seminole County and to the City for mobility fees, which will keep fees paid by city residents within the city limits. He noted there has been some effort into going out to bid or negotiating new contractual services with several of their larger vendors, and that has created significant savings for the City. Over $124,000 was saved by going to bid on health insurance and over CC 07-11-2022/2 $100,000 was saved by going to bid on the citywide mowing contract. He also said they have saved 25% by going to bid on janitorial services for the entire City and the new printer and copier agreement has saved the City over$15,000 each year. They have also seen an increase in revenue collection of over 29%.This includes the renting and use of the Community Building. The City has also experienced savings by ending the lease at 111 North Longwood Street, combining facilities with Leisure Services and some of their volunteers. This saves on the lease payment, and they see reduced costs for maintenance and the combination of utilities. Lastly, he noted, the City has expanded its Enterprise one-year Leasing Program instead of replacing vehicles through the traditional capital purchase program, and they are still experiencing a profit.This has resulted in a profit of$5,000 per vehicle per year for every vehicle leased. Mr. Gioielli discussed staffing adjustments. He said the budget estimates staffing would increase by one (1) part-time position, meaning 172.5 employees in the current year would move to 173.5 representing part- time employees.They proposed that a Utility Project Manager position be transitioned into a GIS (geographic information systems) Analyst position. He explained before this proposal, that the city of Longwood is one of the only cities in the area that does not have at least one (1) GIS position. Staff requests that a part-time Training Chief position be added to the Fire Department. This will improve the quality of training as a function dedicated to one (1) employee and allow the Fire Department to begin the steps to qualify for the insurance ISO (Insurance Services Organization) 1 status.This will help overtime since training is often a collateral duty to someone that has a primary assignment in the department. He also said two (2) part-time Tech I positions in Leisure Services would be combined into one (1) full-time Tech I position. He stated this is because positions have been vacant the entire fiscal year; they have been too difficult to fill since there seems to be a lack of interest in part-time work.That change, if approved, would reduce overtime in the department. He said the part-time Records Clerk in Community Development has been eliminated as it was difficult to fill the position as part-time. He said the part-time Utility Technician position is being proposed to be reappropriated into Financial Services, Utility Billing Administrative position. Mr. Gioielli said the proposed budget includes a recommendation to advance the pay plan and also includes a 4% pay increase for current employees who have earned a positive performance evaluation. This is in addition to the benefit of the 6% reduction in healthcare costs that the City is benefiting from.The same benefit will be passed on to the employees who use health insurance. He said these efforts will help the City with recruiting and team member retention in an already CC 07-11-2022/3 competitive job market where other employers are aggressively recruiting, some even poaching, employees after already moving entry- level positions to $15 per hour and adjusting pay plans to prevent compression.This area of concern is further complicated by an ever- growing transient workforce where many do not view long-term commitment as a priority like the employees of his past. Mr. Gioielli said these operational and capital expenses are met in the proposed budget, without proposing the use of the American Rescue Plan revenue, which is available separately from this to facilitate the Commission's priorities in the future. He stated each director would come forward and offer an overview of the proposed budgets for each of their departments before answering any questions the Commission may have. Ms. Michelle Longo, City Clerk presented the City Commission budget. She noted there have been a few changes in the Commission Budget when compared to the Fiscal Year 2022 with a slight increase of$205 in operating expenses.This represents items previously in the Clerk Budget which have been moved for better tracking of Commission related expenses. Also shifted expenses into account lines that are better suited for the particular expense. She went over the highlights and changes which included adding to the 4020 line Employee Development the Commission attending the Seminole County Prayer Breakfast; adding to 4700 line Printing and Binding the Commission business cards and this was moved from the 4800 line Other Charges; removed from the 4800 line Community Relations, which is for promotional activities, like promotional advertising, and added to the 4900 line Other Charges is the $5,000 donations/sponsorships monies set aside for the Commission. She noted it fits better in this accounting line since these funds are for donations to non-profit groups and schools when such requests are made and reminded it was set up, so each Commission was designated $1,000 each. She said removed from the 4900 line and added to the 5200 line Operating Supplies was the hosting of meetings expenses, like lunch/refreshments when the City hosts things like the Mayors and Managers meetings and water for City Commission meetings. Additionally moved from the Clerk budget line 4800 Community Relations added to this 5200 line was the CALNO (Council of Local Governments in Seminole County) Meeting and other meetings/events where refreshments are needed. Also moved from the Clerk budget line 5200 Operating Supplies and added to the 5200 were the name plates on photos in the Chambers/Lobby to keep consistent with the Commission expenses. She noted the Commissioner 5200 line Operating Supplies was now at$1,300. CC 07-11-2022/4 Discussion ensued and a request was made to lower the 5200 line for Employee Development to $5,000, and also add to the 5400 line for Memberships $425 for the Leadership Seminole dues. Ms. Longo, City Clerk presented the City Clerk budget and stated there has been a decrease in the Clerk Budget when compared to Fiscal Year 2022 of$6,640.This was associated with operating expenses being reallocated under the Commission budget. She said staffing remains the same from 2022 and this upcoming fiscal year she did include funds for overtime if needed. She went over items that had been reallocated to the Commission Budget and those shifted to account lines better suited for the expense. She stated that removed from the 4800 line Community Relations and added to the Commission 5200 line Operating Supplies was the CALNO Meeting and other meetings/events where refreshments are needed, and water for the Commission meetings. Removed from the line 5200 Operating Supplies added to the Commission 5200 line Operating Supplies were the name plates on photos in Chambers/Lobby to keep consistent with the Commission expenses. She went over items shifted in the Clerk budget to a new account line which included moving from the 4800 Line Community Relations and adding to the 5200 line Operating Supplies was the Board Appreciation Dinner. Also moving from the 4800 line and added to the 5200 line was the Oath of Office Ceremony expenses. Discussion ensued on legal advertising and if the postage line included the recent increase. Ms. Longo stated there were no reported changes to the City Attorney's budget. Ms. Longo, City Clerk presented the General Services budget. She reported there had been a change since the budget books were prepared and the increase in this budget of$20,000 set aside in a contingency fund for unforeseen repairs has been removed. Mr. Gioielli will be reallocating these funds elsewhere. Mr. Gioielli spoke about the reallocation of the funds. He said he has proposed to move the $20,000 to Leisure Services and have $10,000 for the anticipated use of Lake Mary Life magazine and another$10,000 to expand the July 4th event. Mr. Gioielli, Acting City Manager, for the City Manager budget. He noted there have been a few changes there based on new developments they have had in the unit.The majority of the budget has stayed the same as far as Employee Development, Communication, Postage, Repair and CC 07-11-2022/5 Maintenance for Vehicles, and Printing and Binding. He asked that there be an increase of$2,000 for the 4800 line to support the efforts with the media relations manager. He said when the budget was originally set it was before the creation of the position. He said this includes things such as notebooks, promotional material, and efforts to promote the City and the logo. He said with the addition of the media relations manager position he also asked for an increase in supplies to allow her to run a different office. He noted she is operating from the Leisure Services office that is at the portables. On line 5200, with there being additional staff managed by the city manager at the front desk and with the media relations manager, he also asked that there be money set aside to allow for there to be polo shirts for staff. He also listed $588 for Hootsuite and $119 for Canva, the software used by the media relations manager Discussion ensued about the 4800 line and the efforts surrounding promoting the city. Ms. Maggie Ridore, Human Resources Director, for the Human Resources budget. She said they saw a decrease in their budget compared to the prior fiscal year, a decrease of$3,407, primarily due to other contractual services. She said that line is being used for supervisor leadership training. She also stated they do not have many changes in HR and their budget is small. She stated their largest costs are professional services, liabilities, and personnel and there have not been many changes in those areas. The only other change that they have made is for the employee programs that were initially budgeted under the 2800 line and have now been moved to line 4021, to be properly located under operations. That line is for employee events, and they have gone from having one (1) annual employee event to planning for two (2). They are now planning to have a recognition event at the end of the year in which they combine employee recognition with a holiday lunch as well as an annual event for Employee Night Out. She stated they currently have $15,000 budgeted for that line this year and that is to accommodate both events and they will seek out sponsorships as well. Ms. Ridore said leadership training is under the 3400 line and that is to implement a program for new supervisors and also leadership with quarterly training. She noted in addition to supplying materials and certifications, they have it go through a proper third party to administer and facilitate these leadership classes. She said their recruitment and time-keeping software moved from the IT Department to the HR Department. In the prior fiscal year, it was listed under the 5200 line, but it is an HR item. I CC 07-11-2022/6 Mr. Gioielli clarified that much of the event cost was offset by sponsorships and they have always tried to offer leadership and supervisor training in-house. Discussion ensued regarding sponsorship and leadership training. Ms.Judith Rosado, Financial Services Director, for the Finance, Purchasing, and Utility Billing budget. She said the Finance Department has three (3) divisions which are Finance, Purchasing, and Utility Billing. She said for the Purchasing division, which in operations had no change at all.The only increase was the governmental employee's 4% increase. For Utility Billing there was an increase of$22,000 in operating, but overall, there was a decrease of$876.This budget also includes a $166,000 increase in waste disposal. She said there is an increase of $10,000 in line 4900, Other Charges and Obligations. That is to account for credit card fees charged by the bank monthly. She said there are also some increases in postage, including the monthly mailing of the utility billing and inserts. Mr. Gioielli stated line 5200 was adjusted because of the City coming online with the automated meter reading system and the software costs associated with it. Discussion ensued regarding advertisements sent with utility bills. Ms. Rosado reported on the Finance and Accounting lines. There was a reduction of$1,200 in operating costs. She said they reduced Contractual Services by$5,000. In prior years, they budgeted for a consultant in case they needed FEMA or temporary services. For line 4900, Other Charges and Obligations have increased by$2,300 and this is related to bank charges. The additional increase is the Administrative Assistant position, which would be created based on the reduction of the utility billing Field Service Technician position. This position will be no longer needed due to the meter conversion.To accommodate administrative responsibilities, they are requesting the creation of a Senior Administrative Assistant. This person would monitor the audit and help with the budget.The increase of an additional salary would be split between the General Fund and the Utility Billing Fund. Mr. Gioielli briefly summarized the benefit of having a new position and the improved coverage of duties. Mr. Craig Dunn, Information Technology (IT) Director, for the Information Technology Budget. He said the theme of the upcoming fiscal year is cyber security and a desire to enhance their document process CC 07-11-2022/7 management. From an operating budget standpoint and a data center refresh from the capital budget standpoint. He said cyber security is arguably the most significant threat to the ongoing operation of the City. He mentioned Florida's New Cyber Security Act causes a significant increase in IT requirements and cyber security insurance renewals. He said he would also like to increase the City's capabilities. With the City's current document management system, adding capabilities like online forms and workflow records management would help. He gave onboarding with Human Resources as an example. He then presented an IT data center refresh.This process happens every five (5) years and the City is entering the fiscal year in which they need to replace the physical servers, core switching power protection, and the professional services for the installation. He reviewed ways to offset these costs and not add to the general fund. One of the things was instead of operating an on- premise phone system, they are migrating to a cloud-based phone system. This will provide additional features while retaining all the current phones and saving around $43,432 a year. The data center project mentioned is around $566,000. He noted that $72,000 on line 5200 will be removed from the operating budget for each year of the five-year life of the asset. Over those five (5) years, the City would save $360,260, and with the offset and savings, the five-year cost of this project goes from $566,000 to $205,740. Mr. Dunn said that related to cyber security, the budget contains expenses related to multi-factor authentication, managed cyber security services, cloud backup services, the creation of an incident response plan, an after-action reporting system, and will take advantage of free network penetration testing by the Department of Homeland Security. All of these projects are related to the state's new cybersecurity law, are connected to cyber security insurance, and are based on federal NIST(National Institute of Standards and Technology) standards. He explained the company that would provide the managed cyber security services is paired up with AIG (American International Group), therefore there is actual insurance based on their scope of work and scope of services and their guarantee. Mr. Gioielli reminded the Commission that the City had asked the State to support their initiatives on cyber security and upgrades for hardware and support. He said that the request was over$500,000 and was unfortunately not fulfilled.The City has therefore taken steps to resolve this through what the staff is proposing. He notes they will see at the next Commission meeting the first step of this process as taking on a lease program through the company and spreading out the cost over five (5) years at a 0% interest rate that stands for the life expectancy of the equipment. He explained that this would not only be an equipment CC 07-11-2022/8 replacement but also upgrades and not only are we replacing equipment we are taking on all the upgrades. These include encrypted servers, cloud-based backup in addition to the physical backup that the City currently has in place, moving to multi-factor authentication, and an upgraded phone system. He said also included is a dedicated internet service that is much faster than the existing service. He said Mr. Dunn has also moved them to a mobile internet backup that is going to allow them to not only continue to work under normal conditions but to continue to serve the public during hurricanes. He said those decisions, if they are supported by the Commission, should be made now, because if they are to be in the middle of the next budget, or after the next budget starts, then they have to make purchases for the equipment and the support that they need to maintain the old system instead of being able to make a complete change come October 1st. Chief David Dowda, Police Chief, for the Police Department budget. He said there were not many changes to lines 3100 or 3400. They saw a very minor decrease in those lines. The first increase seen is on line 4020, Employee Development.The previous year they had a budget of$6,500 that they exhausted relatively early. These funds are used for the continued education of Police Department personnel and to satisfy training and certification requirements. He said he felt like an increase was necessary to keep their training standards up. He said lines 4100, 4200, and 4300 had insignificant changes. For line 4100, for Rentals and Leases, there was a reduction due to the benefits of the Enterprise Lease Program. He said they are selling those vehicles, and when traded back in, that equity has been able to be rolled into their payments. For line 4600, Repair and Maintenance stayed the same as did Vehicle Maintenance line 4610. Printing and Binding saw a minor decrease, but it was insignificant. Line 4800 remained the same. He said they do need to make an increase request in line 4900 as they buy new vehicles they must be titled and registered. Line 5100 remained unchanged. Chief Dowda said the first significant change is an increase to line 5200, Operating Supplies. He stated this was due to inflation issues and has seen an increase in duty gear costs. He said they are seeing increases in the costs across the board and everything they are purchasing is becoming more challenging to secure. Secondly, he notes he has several replacement programs for the more expensive equipment that they buy, such as tasers, one of the most expensive pieces of equipment that the officers carry. He said they need to cycle them out over a period of time rather than buy them in bulk. He said in years past, those would be placed into the 6400 line. Budgeting standards have changed such that they have moved them into the 5200 line and that has resulted in it appearing as though their operating supply line is going up when in fact CC 07-11-2022/9 they are just moving where they would typically have been placed in the past. Chief Dowda noted that in the 5210 line they have received program- related grant supplies. In the past, they have received an FDLE County Wide JAG Grant and what they have used those funds for previously has been buying operating supplies and he does not anticipate those being available to them in the coming year. He believes it was just over $18,000. He explained why he felt the Police Department would not be receiving those funds in the coming year stating Seminole County provides dispatch services as well as computer software services both of these services needed upgrades. As a joint project, all municipalities contribute the grant funds to this. Chief Downda explained the largest increase would be on the 5240 line, Fuel Costs. Fuel costs have increased by 100%and they have taken steps to mitigate the costs without reducing service. He said the capital costs requested are primarily directed towards the purchase of patrol vehicles. He noted he does have a replacement program for the cars. He went over the benefits of cycling the cars out before they become too old. He also said new vehicles have better fuel efficiency, greater safety features, and a higher value when traded in. He also notes another benefit of driving new vehicles is professional appearance and the recruitment of new officers. Chief Mike Peters, Fire Chief, for the Fire Department budget. He said there were not many changes of significance. Line 3100 went down slightly because they adopted a new post-exposure program and realized that workers' compensation would pick up the costs of that and would not need to budget for it any longer. He noted the 3400 line has gone up slightly due to one (1) stretcher no longer under warranty. It would need to be put in the maintenance program and there is a charge every year for that. Chief Peters said the renewals are up for their EMT and Paramedic licenses with the state this year. He said this happens every two (2) years, and that the cost comes in and out of their budget. For the ladder truck purchased with this current fiscal year budget, a router needs to be installed allowing them to receive dispatching while they are on the road. He said they added a pre-fire planning program in this current fiscal year, allowing the crews to go out to all businesses and collect contact data for a mapping program.This lists hazards and is done on a smartphone or tablet and the information will be accessible on any device.This is a $3,500 cost and therefore an increase to line 5400 of$1,700. Line 4020 111 has increased by$6,000 for the ladder truck.This cost is to bring in a CC 07-11-2022/10 trainer to train staff on how to properly use the new truck. He said line 4100 went down slightly because they removed two (2) MiFi devices no longer needed. Line 4400 went up due to the Enterprise Lease program. They will be rolling two (2) additional vehicles into that this year the Chiefs and the Deputy Chiefs. Currently, they own these vehicles and will be sold by Enterprise. He said those proceeds as well as the lease will give them around $182 a month for vehicles. Line 4600 went down slightly because they have bottle Hydro's or air packs and their 02 bottles have to be hydrated every three (3) years. He said line 4610 has gone up significantly. This is due to cost increases and the age of their fleet.The new ladder truck is going to be added to their maintenance program. He also mentioned unforeseen breakdowns. Last October 1 he had a $20,000 unforeseen expense with turbochargers going out. He notes that those hits are hard to absorb year after year going forward, so he has placed extra money in there to hopefully prevent severe unpredictable budgetary crunches. He said they are adding a new truck to the fleet, and he hopes that will prevent some of these issues. Chief Peters said line 5200 had a significant increase. This was due to the $25,000 bunker gear expense having been moved to line 5200 because they have not been doing capital leases. Another reason he explains is they added $3,000 to account for the increase in the cost of materials and items that we have seen due to inflation.There is also an $11,000 increase for EMS supplies.The costs have risen as well as call volume. To offset this there is a transport increase that results in a revenue increase. Line 5245 has an increase for improved communication through voice amplifiers and shoulder microphones for their radios.Those are replacement items that are at the end of their life. He also said he has added $3,500 there for light package installations for the Enterprise vehicles. Line 5240 has gone up due to an increase in fuel costs. Discussion ensued regarding the status of the Fire Station 15 Project and its funding. Mr. Gioielli said they have been approved for the FEMA Hardening of the Safe Room Grant and have reapplied for the appropriation request to the State. He also mentioned they have entered into a relationship with a grant writer who is aware of two (2) grants that can be used towards the construction of a new Fire Department. This is an unfunded expense, and they will not know the cost until the design phase of the project is completed and they receive the information from them. Chief Peters said Station 17 expansion is also currently ongoing. He went over the updates being made. He said the design work is nearly complete, then they will go out to RFP (Requests for Proposals) for the CC 07-11-2022/11 construction. He went over two (2) capital items. One was for$110,000 which will allow them to design and build a new command vehicle. The other was for$10,417, which is the cost of one (1) updated portable radio. He noted currently they are not able to communicate with the division of forestry. This also comes with GPS technology that will allow for more accurate pinpointing of the location of that individual. Mr. Chris Kintner, Community Development Director, for the Community Development and Building Services budget. He said there are not a lot of changes in Community Development.They have an overall reduction in the budget, largely due to the mobility fee study being included in this current fiscal year. He stated they did shift money over to add a third historic district grant because they usually end up getting requests during the fiscal year for a third. For that reason, they added a third of$5,000 for the Commission's consideration. He said from a staffing perspective they have a full staff on the Community Development side. Kristin Zack- Bowen moved up to the Planner position and they hired Rachel Seliber as the Community Development Coordinator. Discussion ensued about professional economic development consulting services and engineering services. Mr. Kitner reported on the Building Department budget. He said the Building line they have seen a reduction. One of the reasons there is a reduction is the move to SmartGov software and they have seen the first full implementation of that this fiscal year. He stated they eliminated the Records Clerk position and with the help of the City Clerk's office,they have worked on a scanning and disposition program utilizing the funds that were in the records clerk position. Because of the SmartGov program and its records retention component, there is no need for the position going forward. He said they do have a Plans Reviewer position open currently and will have a Permit Clerk position open soon as Ms. Corrinne Fail is retiring. Mr. Chris Capizzi, Leisure Services Director, for the Leisure Services budget. He reported the Leisure Services General Fund had a large decrease; however, it is due to the mowing contract moving over to Public Works. He noted Leisure Services did retain the ball field mowing contract.The Mowbot contract is $22,950 and the human staff option was over double that amount. He said they saved a small amount of money on the ball field spraying services as well. Mr. Capizzi went over each line that had an increase. He started with line 4400, Rentals and Leases, which had a $6,309 increase. The Movie in the Park event had an $875 increase.This is because they are thinking about CC 07-11-2022/12 adding a movie and the cost of services increases. He said the Food Truck II Battles shifted from $600 to $1,200 because they are looking to have four (4) events instead of two (2).The last increase he noted was for the Enterprise leases.They have two (2) five-year lease vehicles, and the $4,834 increase is the correct amount they are paying.This item was not reflected or budgeted for correctly last year. He said line 4600, Repair and Maintenance, saw an increase to $29,500.The main increase on that line is for the repair and maintenance of the portables. Ending the lease for the 111 North Longwood Street property, which was around $30,000, also saved the City a large increase since the lease was increased to $50,000. He said they had a $9,000 increase for Playground and Park Repairs.This includes resurfacing the Splash Pad, updating the PA Speaker System at Reiter Park, and electrical repairs in the parks. There was a $5,000 increase for laser leveling which is a cost increase in services. For the Office Supplies line, there was a $400 increase related to him moving to a new office.The next line item was the Operating Supplies, line 5200, seeing a $19,380 increase. This was because they are moving the playground mulch costs from line 4600 to the Operating line. That amounts to $12,500. He noted this is a specialty mulch to be considered ADA (Americans with Disabilities Act) compliant. He said they also had a $5,000 increase in trees, shrubs, and flowers. He stated they are going to be adding additional areas for landscaping on Ronald Reagan Boulevard, at Reiter Park, as well as replacing material in the medians. Mr. Capizzi spoke about the decorations for Reiter Park.The previously used company was sold and he is looking into piggybacking off another contract. He anticipates an increase as costs are increasing. He then noted the increase in fuel prices. Mr. Gioielli emphasized that under line 4800, Community Relations is where the previously discussed $10,000 from General Services will be moved to. Discussion ensued about holiday decorations at Reiter Park. Mr. Capizzi reported on the increases in the 131 fund.The Halloween event, line 4801, has an increase due to the number of bounce houses going up and is a cost of$77. Celebrate the Season, line 4802, has an increase of$2,310 for the cost of entertainment. He said they are planning to do either lasers or fireworks and the cost has increased for those.The next increase he mentioned was the Car Show, the 4805 line. This is due to an increase in pay, of$50, for the DJ services that are important to the event and its popularity. He also said the Christmas Parade had a $500 increase. That increase is for decorations and an increase in radio ads. The Fourth of July event will have a $2,000 CC 07-11-2022/13 increase. That will be for entertainment. These funds will be moved from General Services. Discussion ensued regarding the Fourth of July event's popularity and marketing. Mr. Capizzi said there is a $600 increase for the Breakfast With Santa event. He noted that while he does try to get sponsors for this event, there may be an increase in the catering costs.The two (2) new events will also increase. The Longwood Luau line 4818 is a $5,000 event and the Juneteenth event is$4,000. Discussion ensued about the Juneteenth event Mr. Capizzi then noted they do have money in a Miscellaneous Events line because they like to be innovative and add things. He also noted the City does have more events than those listed but they are paid for by partnering with other organizations. Discussion ensued about how the Father Daughter Dance event is a good event and well received. Mr. Capizzi stated they need to replace the sports lighting at Candyland Sports Complex. He hopes the increased efficiency may offset some of the costs. He said $50,000 has been budgeted for the Community Building floor replacement. Mr. Gioielli reminded the Commission that this is one (1) of two (2) upgrades to the Community Building that was related to a grant application they approved and therefore there is a possibility they will get up to 50% reimbursement for this. Mr. Capizzi said the other item was the building siding. He stated that while it was not currently in bad shape, the color is fading and in the Florida sun, it will become more noticeable in the coming years. He reminded the Commission that they have the FRDAP (Florida Recreation Development Assistance Program) grant currently assisting with the pickleball courts, basketball court,tennis court, backstops, and pump track. He said this year he will be able to use it to replace awnings at Shadow Hill park. Mr. Gioielli noted the grant is cost neutral to our taxpayers. Mr. Shad Smith, Public Works Director, for the Public Works budget. He has lines including the Streets line, the Stormwater line, and the Public CC 07-11-2022/14 Utilities line for operating. He also has capital in lines 310, 401, 402, 406, and 320, which is the capital equipment. He noted if the cost was under $1,000, he was not going to talk about it. Mr. Gioielli noted the increase of$158,000 because he has taken on a $160,000 mowing contract from Leisure Services. Discussion ensued about the mowing contract. Mr. Smith said for the Professional Services line, they added $1,500 because they often use it for things like surveying.The mowing is much of what is in the 3400 line as well as tree removal. For the Employee Development, line 1700, he said all of his guys need to be MOT (maintenance of traffic) trained, stormwater trained, and CDL (commercial driver's license) trained. He said the training would help with things like avoiding surpassing CDL towing weight limits. On the Repair and Maintenance line, he said they continue to run over budget with things such as replacement tires, batteries, and air conditioning units. These costs are increased by inflation and labor prices. He said they would not need to shift the fuel budget as much because he already had it a bit higher to begin with. Discussion ensued about the emergency fuel depot and whether using the depot as a sole fuel source would be possible. It was concluded that it was not a cost-effective option. Commissioner Sacket asked if the $10 change was worth noting on line 5400. Mr. Gioielli confirmed Ms. Rosado believes it is. Mr. Smith reported on the 406 fund, which is funded through the stormwater fee, so they are working hard to get everybody to pay for it fairly. He said one thing about the stormwater fee is he gets so much money a year that they estimate and then he has to split up the capital and operating between them. Even though this amount went up, it meant he probably spent less on the larger capital projects. He said he mentions it because this line shows the operating as going up almost $52,000. He said the 3100 line has$4,000 added for grant services and notes they met with the same service Mr. Capizzi uses to get grants and they are working to get more stormwater grants. He said the repair and maintenance cover a lot of things for the Stormwater line. He said it could be anything ranging from repairing a pipe or a storm drain inlet to covering the street sweeping.They are adding a single additional street sweeping each year.This will put the schedule at every other month and CC 07-11-2022/15 a single floating one (1). He said they also added fountain maintenance within the City's ponds and that cost has risen each year.They are also looking to maintain baffle boxes, which collect pollutants. He stated those types of things are why the $16,500 has been added. Mr. Smith said on the 5200 line the increase is related to a pond area where the fences along those ponds must be replaced as they are falling down. He says fencing is another thing that has skyrocketed in cost. Discussion ensued regarding the cost of fencing. Mr. Smith said the Public Utilities line had a substantial increase. Much of that increase, over$205,000 of the overall $236,000, is due to sewer fees paid to Altamonte Springs. Discussion ensued regarding sewer charges. Mr. Smith said line 3100, Professional Services, shifts every two (2) to three (3) years as things come up for review. This year one is for a metal sampling of the water which accounts for about$6,000. He said $12,000 was shifted from the 3100 line due to accounting principles. He stated the 4020 line has increased as they have realized the importance of training to ensure anyone working on water in the field has the proper certification to do so.This has resulted in them creating a travel per diem line. Discussion ensued about employee development, training, and retention. Mr. Smith stated there has also been an increase in the Communication line, 4100.This is in part because they have the asset management software that needs to be accessed on their phones and the cost of the phone per diem has risen from $30 per phone to $60. He said he believes the cost of rentals and leases on the vehicles could go down but are still being calculated. He said they added a few vehicle leases this year. He reiterated that the number listed on the budget is a conservative number that could change. He said Repair and Maintenance went up a small amount and is primarily due to an increase in material cost and vehicle repair. He said the 5200 line, Operating Supplies increased. He said with the GIS analyst position they are adding they need to add another license of the GIS software. He said line 5240, the Fuel line, was increased by 23.5%which was$8,000. For the 402 line, Public Utilities Repair and Replacement does not include much operating. The changes he noted were an increase in the cost of water tank maintenance under the 3400 line. Repair and maintenance costs were also increased for the City's aging infrastructure, lift station repair, and water plant repairs. That was an increase of$16,000 on line 402. CC 07-11-2022/16 Mr. Smith said he will be updating their master plans to see how the streets are performing. A study will be done at the beginning of the year. From there they will figure out what roads are in the worst condition and do some resurfacing.This will be from the 310 line. They also have planned sidewalk projects where several sidewalks do not have sidewalk connections that go from the main road to the subdivision. Another sidewalk project will be adding a sidewalk on South Grant Street.This will be from the end of Columbus Harbour down to Dog Track Road. He said they are also doing designs to prepare for future sidewalks. The stormwater front project has a couple of stormwater capital costs. He said Rock Lake Emergency Outfall is finally planning design next year. Mr. Smith said for capital, next year's Phase II of the East Longwood Septic Tank Abatement Project will begin. He noted they may see an increase in those prices as well. They also have $2.6 million for the Water Plant Replacement Project. He said they still need to find the land and then he estimates the design will cost around $1 million. Discussion ensued about the Water Plant Replacement Project. 111 Mr. Smith said,for capital equipment, they are trying to get a shed at the cemetery to store the mower, trimmer, and a new loader. Discussion ensued about the security of vehicles at Public Works. Commissioner Boni asked to have line 4300, Utility Services in the 401 line, defined. Mr. Smith explained they are paying for gas at the emergency generator station, propane, and power for the City's plants. Commissioner Boni asked about the $4,500 for postage to mail the utility bills. Mr. Gioielli explained it is the 401 line but falls under the Finance department. Commissioner Sacket asked about the long-term debt and if there is a way to pay it faster. Mayor Morgan said he wanted to point out that this budget includes all of the City's capital needs without taking out new loans and while keeping reserves at a high 22% during severe inflation. He said with the longer-term loans and the state grants they receive, they are not getting CC 07-11-2022/17 100% of that grant money back. Generally, they get back 30%to 50% which goes towards that. Mr. Gioielli said the City was at a place years ago where they were forced to have a 16%to 18% reserve and cover only their operational costs without having any money left over for capital, and that is some of the general fund debt services. He said the City was forced to get new vehicles and some of the new equipment through loans, with no other options.That is the debt they are currently paying. He said what they can do now is get their budget to a respectable reserve, like it is now, and purchase our capital needs without taking out new loans. Discussion ensued regarding future projects adding to the existing debt. 3. ADJOURN. Mayor Morgan adjourned the meeting at 7:42 p.m. Minutes approved by City Commission: 08-01-2022 Matt Morgan, Mayor ATT S . • Michelle Lo , M , F City Clerk CC 07-11-2022/18