HomeMy WebLinkAbout1989-08-16 - City Commission Budget Workshop Meeting Minutes7525 NORTHWEST 88TH AVENUE TAMARAC, FLORIDA 33321.2401
TELEPHONE (305) 722-5900
August 10, 1989
NOTICE OF
CITY COUNCIL
BUDGET WORKSHOP MEETING
for FISCAL YEAR 1989/90
There will be Workshop Meetings of the City Council, held in
Conference Room #1, City Hall, 7525 NW 88 Avenue, Tamarac,
Florida.
The purpose of these meetings is to review the budgets for
the following Departments for Fiscal Year 1989/90:
MONDAY. AUGUST 14, 1989, 9:30 A.M.
Fire Department
Building Department
Code Enforcement
Community Development
Economic Development Office
• TUESDAY, AUGUST 15, 1989, 1:00 P.M.
Data Processing
Purchasing
Engineering Street Lighting
Personnel
Insurance Operations
Insurance Services
WEDNESDAY, AUGUST 16, 1989, 9:30 A.M.
Charter Board
Public Works Administration
Parks and Recreation
Parks Facility
Drainage
Fleet Maintenance
City Hall Operations
Street and Road
Buildings and Grounds
Police Building
All meetings are open to the public.
Carol A. Evans
City Clerk
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
Ll
l
CITY OF TAMARAC
CITY COUNCIL BUDGET WORKSHOP MEETING
WEDNESDAY, AUGUST 16, 1989
CALL TO ORDER: Mayor Abramowitz called this meeting to Order on
Wednesday, August 16, 1989 at 9:30 A.M. in Conference Room #1 (City
Clerk's Office).
PRESENT:
ALSO PRESENT:
Mayor Norman Abramowitz
Vice Mayor Dr. H. Larry Bender
Councilman Bruce Hoffman
Councilman Henry Rohr
Councilman Jack Stelzer
John P. Kelly, City Manager
Bob Hoyt, Deputy Finance Director
Dina McDermott, Assistant to the
City Manager
Peter Mack, Personnel Director
Susan Tillman, Consulting Insurance
Advisor
Pauline Walaszek, Special Services
Secretary
The purpose of this meeting was to review the budgets for the
following Departments for Fiscal Year 1989/90:
Buildings and Grounds
City Hall Operations
Drainage
Fleet Maintenance
Insurance Operations
Insurance Services
Parks and Recreation
Parks Facility
Police Building
Public Works Administration
Insurance Operations - pa2e 60
Mayor Abramowitz said Susan Tillman, Consulting Insurance
Advisor, was recently hired by the City and he asked Ms.
Tillman to inform the City Council of her background
regarding Insurance.
Mrs. Tillman said she created a Self -Insurance Program
for the City of Hallandale approximately 3-1/2 years ago.
She said the Program allowed the City of Hallandale to
pay its own claims. She said the Program was started
with a $100,000.00 deductible on all lines of coverage,
such as property, Liability and Workers' Compensation.
She said $800,000.00 per year was placed into an Account
for payment of claims.
Ms. Tillman said after three years, the Excess Insurance
was eliminated because the average payout was $15,000.00
per year in claims. She said she handled all of the
claims In-house and the City Attorney assisted. She said
most of the claims were denied; however, the claims due
were paid. She said the majority of the claims were
frivolous and she pursued the people who caused damage to
the City. She said the property damage claims offset the
Page 1
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amounts paid out; therefore, after three years, there was
a loss fund of approximately 2 million dollars. She said
because of this, Insurance was no longer needed; however,
a Workers' Compensation Fund was maintained, which she
recommended be eliminated.
Ms. Tillman said the City of Tamarac was more progressive
because a Self -Insured Workers' Compensation Program
already existed. She said the City of Hallandale had a
large reserve in the amount of 5 million dollars because
the Liability claims paid off.
Ms. Tillman said she assisted Indian River County in
setting up a Self -Insurance Program. She said the first
year's savings was in the amount of $600,000.00 and she
reduced the Workers' Compensation claims from $170,000.00
to $30,000.00 annually. She said she did this by
handling every claim herself with the Insurance Company
by making sure that the doctors were not controlling the
files and people were being placed back to work on light
duty if the injury allowed it.
Ms. Tillman said the City of Tamarac had a very large
exposure in Workers' Compensation, mainly because the
doctors were running the Workers' Compensation claims.
She said there was no feed back to the employer and the
doctors were issuing time off without explaining why or
asking permission. She said there should be more control
over these things.
Mayor Abramowitz asked Ms. Tillman if she had a Report
regarding the City's recent position in Insurance and Ms.
Tillman the City's Workers' Compensation has been high,
which she felt was the lack of control.
Ms. Tillman said there could not be control if a
procedure was not available. She said the Insurance
Companies had to be controlled and she has been telling
the Insurance Companies what to do for the City of
Tamarac in the last month. She said the Insurance
Companies wanted the City's claims to be high; therefore,
they would not assist the City in lowering the claims
because a higher premium could be charged.
Ms. Tillman said the Workers' Compensation claims for the
City of Tamarac averaged approximately $200,000.00 over
the past 5 years. She said this figure could be cut down
by half or more. She said the City paid approximately
$600,000.00 per year in premiums and, two years ago, a
Self -Insurance Program was created; therefore, the
premiums were approximately $24,000.00 per year. She
said the City was placing money in a Reserve Account,
which was generating interest. She said this was a very
good procedure; therefore, the claims to date were
$173,000.00. She said the City had their own funds and
paid a claim when it was due as opposed to paying an
Insurance Company $600,000.00. She said the City was
presently paying the Insurance Company $24,000.00 in
premiums, which was excellent.
Ms. Tillman said the City's General Liability Insurance
over the past 10 years has been excellent. She said the
claims have only been $179,000.00; however, the City paid
approximately $300,000.00 in premiums per year. She said
the Insurance Company was making a very large profit.
Page 2
8/16/89
C/M Hoffman asked if the City actually paid 3 million
dollars in premiums but only $179,000.00 in claims for
ten years and Ms. Tillman replied, yes.
Mayor Abramowitz asked how much was paid out this year in
claims and Ms. Tillman said $459.00 was paid out in
claims and $324,00,0..00 in premiums.
Ms. Tillman said the City did not have control over the
losses and she wondered what the experience would be if
someone did control them. She said the City could make
money on the program without paying an Insurance policy.
She said the City may want to buy an excess policy to
feel secure; however, she estimated through th'e claims
experience that the City was wasting money. She said the
City of Tamarac had very few facilities compared to other
Cities and, there was Sovereign Immunity in Florida,
which meant that for tort Liability, the City was immune
from suit over $100,000.00. She said this did not mean
that a claim would not be over $100,000.00; however, a
person would have to file in the Federal Courts or go to
the Legislature for a Claims Bill. She said these
processes took two to three years and, during that time,
the City would be collecting interest on their funds as
opposed to paying it to an Insurance Company.
Mayor Abramowitz said he did not want to dwell on past
experience; however, the City was criticized for
considering Self -Insurance. He said several Insurance
Company representatives indicated that the City would be
endangered by doing so. He said the cost in premium
compared to the experience each year proved that
something had to be done.
Ms. Tillman said the Self -Insured Program for Workers'
Compensation seemed to be doing excellent. She said she
contacted the Finance Director who informed her that
there was presently $500,000.00 in the Fund after the
payments in claims.
Mr. Mack said the Self -Insurance referred to by Mayor
Abramowitz was for Health -Insurance. He said the City
was affected because of the Third Party Administrator and
there was no one in the City monitoring the Program.
Mayor Abramowitz said he did not care what Program was a
disaster and he did want to fault anyone for past
experience; however, when he hears these statistics, he
did not have to be an Insurance Broker, Attorney or
Accountant to understand it.
Mayor Abramowitz asked if the Reserve Fund for
Self --Insured Workers' Compensation Program was a result
of taking the premiums that would have been paid to an
Insurance Company and placing it in a Reserve Fund and
Mr. Hoyt replied, yes.
Mayor Abramowitz said he was sorry the City Attorney was
not present because
regarding Sovereign
he needed
Immunity.
further information
He understood Sovereign
Immunity to be that
the City
could be liable for a
$100,000.00 claim;
however, the
claimant could take the
matter to the Federal
Courts
or the Legislators for more
money.
Page 3
8/16/89
Mr. Mack said Ms. Tillman had a law degree and could
answer any legal questions. Ms. Tillman said she
recently took the Bar Exam.
C/M Hoffman asked if the Reserve Fund for the
Self -Insured Workers' Compensation Program could be used
for another type of Insurance and Ms. Tillman said if the
City would have paid the total funds from the Reserve to
an Insurance Company as opposed to retaining it, the
Insurance Company would have earmarked the funds for
certain claims. She said if the insurance Company closed
the claims, the City would not have seen the remainder of
the funds not used for the claims. She said a Workers'
Compensation claim could be active for 10 years before a
settlement was made.
C/M Hoffman asked if the City could use any of the
Reserve Funds for the Workers' Compensation Program to
begin a Reserve Fund for a Self -Insured Liability
Program.
Ms. Tillman said the Reserve Fund for the Self -Insured
Workers' Compensation Program should be earmarked for
that Program until the Reserve created for the amount was
closed.
C/M Hoffman asked how much this was and Ms. Tillman said
each Workers' Compensation claim presently existing had a
reserve set. She said the reserves should coordinate
with the money in the Reserve Fund.
C/M Hoffman asked how much money was needed for all of
the pending claims and Ms. Tillman replied, approximately
$200,000.00 per year.
C/M Hoffman said approximately $300,000.00 was available
for other Insurance purposes and Ms. Tillman agreed.
Mayor Abramowitz asked if the reserves created for a
specific Self -Insured Program had to be used for that
Program only and Ms. Tillman said the only time the funds
would have to be specifically earmarked was with the
Self -Insured Workers' Compensation Program. She said the
City's claim experience indicated that within the last
four years approximately $200,000.00 was paid out. She
said the Reserve Fund should not be reduced any lower
than $200,000.00.
Ms. Tillman said the City paid out approximately
$19,000.00 per year in claims for General Liability and
these claims included the Police. She said without the
Police, the City only paid $6,500.00 per year. She said
the City could do what they wanted with the Reserve Fund.
She said the amount of payment for a claim was unknown;
however, she did not like to pay claims and would only
pay what was due. She said if the claims were paid, the
money should be paid up front to avoid any delays. She
said if the payment of claims was continued for three
years, the City could be making interest on the funds and
the claim may settle for much lower.
C/M Stelzer asked if Ms. Tillman knew what the Workers'
Compensation claims were and Ms. Tillman said 2 million
dollars, which was calculated by multiplying $200,000.00
by 10.
E
1
1
Page 4
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Ms. Tillman said next year's claims would be much lower
because she would be reviewing and reducing the claims by
at least $100,000.00 per year.
Mayor Abramowitz said based on case history, the payouts
may take 10 years. He said the Lottery paid the prizes
with interest generated from the money collected.
Ms. Tillman agreed and she said the Insurance Companies
were actually doing the same thing. She said the clients
should start doing this for themselves. She said the
Cities could be as rich if they would generate the
interest from their funds.
C/M Stelzer said the value of the claims could increase
over ten years and Ms. Tillman agreed. She said the
experience was determined by the Actuarial Tables and
this was why the City presently had an Excess Insurance
Policy with Workers' Compensation. She said the City was
presently protected from large claims.
Mayor Abramowitz asked how long the City has been
Self -Insured for Workers' Compensation and Ms. Tillman
said the City was Self -Insured for two years. C/M
Hoffman said the City was paying high dollars for 25
years until the Self -Insured Program was implemented.
C/M Stelzer said the Insurance rates have escalated from
25 years ago and Ms. Tillman said in the last 7 years the
increases started with the Cities and the increases were
approximately 100%.
Mayor Abramowitz said the City was presently paying
$24,000.00 per year which was a lot different than
$600,000.00 per year. He said the City's Insurance
Policies and coverage would have to be reviewed very
carefully.
C/M Hoffman said there were several objections in the
City going Self -Insured and Mayor Abramowitz said there
were several Insurance Advisors that objected strenuously
to doing this.
Mayor Abramowitz said he never received this information
in the past and C/M Hoffman said the City did not have a
history to review. Mayor Abramowitz said last year he
reviewed the Budget and he did not hear anything like
this.
C/M Stelzer asked what type of monitoring was being done
for the Self -Insured Workers' Compensation Program and
Ms. Tillman said since she was hired by the City she has
been changing the system regarding authorizations of
doctors. She said she has been contacting every doctor
to find out what the condition of the person was and why
the person was not able to work. She said if she found a
person on Workers' Compensation for one year, she was
sending them to a Third Party Physician, which was
against the doctors recommendations. She said a Third
Party opinion was needed and she was investigating the
actual need for a person being on Workers' Compensation.
Mr. Mack said people have been taking advantage of the
system too long and now the City had a person who could
professionally monitor the claims and get tough with the
doctors. He said the doctors have been running the
system.
Page 5
8/16/89
Mayor Abramowitz said when this matter came to his
attention, he was informed that someone's toes may be
stepped on if this matter came out publicly. He said
there have been problems that needed to be corrected. He
said he did not expect most people in the City to be
aware of Insurance; however, he was aware that there was
a problem which needed to be corrected.
Mayor Abramowitz said he was interested in hearing a lot
more about the City's Insurance; however, the purpose of
this meeting was to review the Budget for the Insurance
Operations.
** There were no reductions from the Insurance Operation Budget.
Insurance Services - Page 61
City Manager Kelly said $60,000.00, which was requested
for the continuation of Item 233, Disability Insurance,
was increased by $120,000.00. He said he and Mr. Mack
requested that this Policy be eliminated this year. He
said the Fire Department wanted this Insurance and they
concurred that the Insurance was being abused.
C/M Hoffman asked if this had anything to do with
Workers' Compensation claims and City Manager Kelly said
this Policy was for Long Term Disability claims.
Mr. Mack said the coverage could include
service -connected injuries; however, the Policy covered
long term disabilities.
Mayor Abramowitz asked how much was paid out and Mr. Mack
said there have been 8 claims in the past year. He said
the Insurance Company was being asked to pay
approximately $770,000.00 over the life of the claims.
He said 5 of the claims involved Police.
Mayor Abramowitz said the City actually paid out very
little for the claims and Mr. Mack said the Insurance
Company's exposure far exceeded the premiums paid by the
City; however, the Company received $60,000.00 from the
City each year.
C/M Hoffman asked how many years the exposure of
$770,000.00 was for and Mr. Mack said the exposure was
over a period of time. C/M Hoffman asked how much the
exposure was per year and Mr. Mack replied, $60,000.00.
C/M Hoffman asked what the exposure would be if the
Policy was eliminated and City Manager Kelly said there
would be no Insurance offered.
Mayor Abramowitz asked what the history of exposure has
been and Ms. Tillman replied, $35,000.00 per year.
Mr. Mack said if the City did not offer Long Term
Disability coverage, the City would not be exposed.
C/M Hoffman asked if the City was responsible for a
Workers' Compensation claim and Mr. Mack said this was a
different matter.
Mayor Abramowitz said he was informed that the claims
would be small for the amount of premiums paid once the
Police merged with the Broward Sheriff's Office.
Page 6
8/16/89
Mr. Mack said the Insurance Company informed him that the
claims experience was 300% above the normal experience
because of 8 claims last year with 5 of the 8 claims
being Police.
C/M Stelzer asked if the Insurance Policy was purchased
to eliminate the Long Term Disability risk from the
Pension Plan and Mr. Mack said this may have been the
intent; however, this was not being done.
C/M Stelzer asked if the City was the primary insurer on
disability and Mr. Mack said the Policy was provided as
an additional benefit to the employees. He said the City
was contractually obligated to the Federation of Public
Employees only.
C/M Stelzer said the Pension Plan was paying
approximately $116,000.00 per year to cover the Police
disability. He said the disability Insurance was
purchased to eliminate a threat to the Pension Plan;
however, the experience was the opposite of what was
intended.
C/M Stelzer asked how many Police came off disability
when the Broward Sheriff's Office merger took place and
Mr. Mack said there were several people on Workers'
Compensation that had a miraculous recovery; however,
there were several people who had relapses as well.
C/M Stelzer said there were several people receiving
disability payments and this started the rumor that the
Pension Plan was going bankrupt. He said the people who
started the rumor did not take into consideration the
175/185 funds being received from the State. He said the
funds were approximately $300,000.00 per year which was
more than the disability claims.
C/M Stelzer asked how much in claims the Pension Plan was
liable for and Mr. Mack said approximately 2 million
dollars. Mr. Mack said when the General employees
reached the eligibility for normal retirement, they were
eliminated from the disability policy; however, this was
not the case with the Police and Firefighters.
C/M Stelzer said several people took advantage of the
City because of this Policy and Mr. Mack agreed. C/M
Stelzer said the Pension Board hired an Administrative
Monitor for the claims and Mr. Mack said the procedures
were tightened because of an Administrator.
V/M Bender recommended that the Long Term Disability
Policy be eliminated and Mayor Abramowitz agreed.
Mr. Mack said he was presently negotiating with the
Federation of Public Employees. He said the City was
contractually obligated to provide Long Term Disability
Insurance to this Union only. He said he informed them
that it was the City's intention to eliminate this
benefit.
Mayor Abramowitz said Mr. Mack just heard that the City
Council expressed their approval in eliminating this
benefit.
Page 7
8/16/89
City Manager Kelly said the City should provide some type
of protection to the employees; therefore, this matter
should be considered.
Mayor Abramowitz said once the City Council received all
of the information regarding what the Departments had and
needed and once the Insurance matter was reviewed the
City Council could make a decision.
Mayor Abramowitz said he understood the City Manager's
concern in providing a benefit to the employees; however,
he would make a decision after the Insurance policies
were reviewed.
Mayor Abramowitz asked what Item 45E, Public Officials
Liability Insurance, was for and Mr. Mack said this Item
was a Statutory requirement.
Mayor Abramowitz asked if $49,000.00 covered the Public
officials and Ms. Tillman said these numbers should be
reviewed because a policy for the City Council should be
under the General Liability policy. Ms. Tillman said
this policy covered the City Council and anyone in a
Managerial position.
Mayor Abramowitz said the only Public officials in the
City were the City Council and Charter Board and C/M
Hoffman said the City Manager was considered a Public
official.
Mayor Abramowitz said he thought Public officials meant
Elected officials and Ms. Tillman said she did not know
who was specifically on this policy; however, the City
Clerk, City Manager, Department Heads and City Council
were considered as Public officials.
V/M Bender suggested that Items 45E and 45H be
investigated to see what the policies covered. He said
both of the policies were Liability Insurance and he
would like to know why one differed from the other.
Ms. Tillman said under the General Liability policy
specific people were excluded, such as the City Council
because they were in a higher exposure level than normal
employees of the City.
V/M Bender asked that both policies be reviewed to
determine the difference.
Mayor Abramowitz said he would like more information on
the policies before he approved this Budget.
Ms. Tillman said she could answer all of the questions
regarding the Insurance Budget except for Item 45E. She
said she knew who was typically covered in Item 45E;
however, she would submit the specific information to the
City Council.
C/M Hoffman said he tried to purchase an Umbrella policy
and he could not because he was a Public official. He
said the companies felt that an Elected Public official
had a higher chance of lawsuit than the average citizen.
C/M Rohr asked why Item 45F, Employees & Officials Bonds,
had yo-yo amounts.
Page 8
8/16/89
TAPE 2
Ms. Tillman said the Insurance Companies were requesting
tremendous increases for every type of policy. She said
the policies were not necessary if the City became
Self -Insured. She said the only policy necessary would
be the Finance Director's Bond because the Finance
Director handled the City's money. She said if the City
had a Self -Insured program with $100,000.00 deductible,
the City would pay the first $100,000.00 and there would
be an Excess policy for the remainder.
C/M Hoffman asked what the
cost would be for the policy
for the Finance Director and Ms. Tillman said this policy
may cost approximately $3,000.00; however, she was not
sure without reviewing the policy.
Mayor Abramowitz asked if everyone, except the Finance
Director, would be covered under the Self -Insured Program
if it was implemented and Ms. Tillman replied, yes.
Ms. Tillman said every City had Ordinances that required
certain officials to have Bonds. She said she did not
see an Ordinance in Tamarac indicating that Bonds had to
be purchased for certain people. She said the State Law
required a Bond for the Finance Director.
Mayor Abramowitz said he would like the Finance Director
covered and C/M Hoffman asked Ms. Tillman to submit a
Report on who was covered by Item 45F.
C/M Hoffman asked what Item 45G, Fire & Extended
Coverage, was for and Ms. Tillman said this was coverage
for the City's property. Ms. Tillman said this coverage
could also be covered under a Blanket policy if the City
had a Self -Insured Program. She said the City should
have a deductible of $50,000.00 as opposed to $2,500.00
deductible.
C/M Hoffman asked if this Item could be reduced and Ms.
Tillman said she was presently requesting high deductible
quotes from the Insurance Companies; therefore, she was
not sure what the estimates would be. She assumed that
the figures could be reduced by half of the amounts.
Mayor Abramowitz said he did not want to close the review
on the Insurance Services Budget until a Report was
received from Ms. Tillman regarding the policies.
V/M Bender suggested that Ms. Tillman Report to the City
Council on the policies she felt were unnecessary and the
amount of money involved.
Ms. Tillman said three companies were interested in her
concept and she sent underwriting packages to these
companies. She said she should receive information from
these companies within the next week.
Mayor Abramowitz asked what Item 45H, General Liability
Insurance, was for and Ms. Tillman said this Item covered
the City for negligence claims. She said there was a
$10,000.00 deductible and the premium was $149,750.00;
however, the premium could be much lower if there was a
$100,000.00 deductible.
Mayor Abramowitz asked what Item 451, Automobile
Liability Insurance was for and C/M Stelzer suggested
Page 9
8/16/89
that Ms. Tillman be asked to propose a Self -Insured
Program as opposed to reviewing all of these policies at
this time.
Mayor Abramowitz said he agreed; however, he would like
to have the Items reviewed so he understood them
thoroughly.
Mayor Abramowitz asked what the Automobile Insurance was
for and Ms. Tillman said the City had Items 45H, General
Liability, 451, Automobile Liability and 45J, Excess
Liability, been combined the cost would be approximately
$300,000.00. She said the three policies were for
liability coverage of negligent acts by the City against
a Third Party. She said the City was paying
approximately $300,000.00 with a $10,000.00 deductible
and a 1.5 million dollar Umbrella policy. She said a
higher deductible should be implemented to reduce the
premium costs.
C/M Hoffman had concerns with the need for this type of
coverage if the City was covered by Sovereign Immunity
and Ms. Tillman said the City did not need the coverage;
however, she was speaking conservatively for the City's
benefit because she never saw anyone jump into the change
that she was recommending.
C/M Rohr asked for a Report regarding the cost for the
Excess Insurance and Ms. Tillman said she requested these
quotes. She said informing the Insurance Companies that
the City was considering a Self -Insured Program was a
plus for negotiating.
C/M Hoffman asked what coverage the City had with the
Broward League of Cities and Ms. Tillman said the City
was covered for Liabilities through the Florida League of
Cities.
Mayor Abramowitz said he did not care about this Carrier
and C/M Hoffman agreed.
V/M Bender asked if the reduction in Insurance coverage
reduced the probability of claims and Ms. Tillman
replied, yes. She said many people did not sue Broward
County for more than $100,000.00 because the Risk Manager
for Broward County would not pay any more than that. She
said Broward County was Self -Insured with no Excess or
Liability Insurance. She said Broward County placed
money into a Loss Fund every year to pay its own claims.
She said most Attorneys were not Trial Attorneys;
therefore, when a claim was filed with Broward County, it
was more than $100,000.00.
Mr. Mack said the City Council would be receiving
Lobbying from the Florida League of Cities and Mayor
Abramowitz said he recently received telephone calls.
Mr. Mack said because of the concept being discussed, the
Florida League of Cities was upset and not talking to the
Personnel Department.
Mayor Abramowitz said the Florida League of Cities
brought out some heavy guns and Mr. Mack said he wanted
the City Council to be prepared for this. Mr. Mack said
he felt that the City should do what would benefit the
City without concern for outside interests.
Ms. Tillman said the Florida League of Cities was a Pool
and the City of Tamarac's premiums were not based on it's
Page 10
8/16/89
claims but on the total Pool. She said the Pool could go
out of business at any time. She said there was one
company based in the United States that could be sued if
they went out of business; however, Gallagher Bassett was
based out of London and it was not easy to sue London if
the company went out of business.
Mayor Abramowitz asked for a Report as soon as possible
and he thanked Ms. Tillman and Mr. Mack for their
presentation. Ms. Tillman and Mr. Mack WITHDREW from the
meeting.
At 10:30 A.M., Mayor Abramowitz RECESSED the meeting and
RECONVENED at 10:40 A.M. with ALL PRESENT including Mike Couzzo,
Director of Public Works/Parks and Recreation.
Public Works Administration - Page 45
C/M Hoffman asked why Item 120, Regular Salaries, was
increased more than what was requested and Mr. Couzzo
said there was a redistribution of salaries because 6/10
of the Salaries was transferred from the Fleet
Maintenance Department for the Fleet Maintenance
Storekeeper.
Mayor Abramowitz said there were charges to the
Departments from the Fleet Maintenance Department. He
asked if the percentage of the costs was reflected in the
Public Works Budget or in the Revenue Budget.
Mr. Couzzo said the Fleet Maintenance Budget was
considered an accounting wash situation because revenues
were generated by all of the other Departments to pay for
the entire expenditure of the Fleet Maintenance
Department. He said to review the Budgets separately and
then the Fleet Maintenance Budget was not appropriate.
He said the Budgets should be reviewed as one or the
other.
C/M Stelzer said the Fleet Maintenance Budget had nothing
to do with the Public Works Budget.
Mayor Abramowitz said everything in the Departmental
Budgets was expenses. He said there were certain things
that other Departments paid a share of and he asked
whether all of the expenses were calculated and then
distributed to each Department or went into the revenue
account.
Mr. Hoyt said there was no revenue involved in the Fleet
Maintenance operations and Mayor Abramowitz asked if the
costs were being paid twice. Mr. Hoyt replied, no.
At 10:45 A.M., Ken Burroughs, Finance Director, ENTERED
the meeting.
Mr. Hoyt said the expenses in the Public Works Budget for
auto repairs and tires were direct purchase orders
chargeable to this specific Department. He said all of
the expenditures for the Fleet Maintenance Budget, Page
113, were allocated to each Department using the Fleet
Maintenance service. He said if Items 59E, Fleet
Maintenance, were added together, they would equal the
total Departmental operation of the Fleet Maintenance
Budget as reflected on Page 114.
Page 11
8/16/89
C/M Rohr asked if the format of the allocations would be
changed and Mr. Burroughs said it was discussed that all
auto related expenses would be placed into the Fleet
Maintenance Budget and allocated back to the Departments.
Mr. Burroughs said this would allow more control from
one Department.
Mr. Couzzo said some of this was done in the Budget;
however, the automobile expenses should be placed in the
Fleet Maintenance Budget.
C/M Hoffman asked if the personnel could be reduced in
the Fleet Maintenance Department because Police vehicles
were no longer involved and Mr. Couzzo said there were
3.4 positions eliminated.
Mayor Abramowitz said he felt that the Public Works
Department needed equipment and funding. He said the
Public Works Department was a very important Department
in the City. He said he requested the City Manager
submit a 6 month review of the Budget to determine if
there was funding available for needed equipment.
Mr. Couzzo said the Public Works Budget had no additional
personnel; however, there was a reduction in personnel
and Mayor Abramowitz said contrary to opinion, the
consolidation of the Budgets was very good.
Mayor Abramowitz asked if the Department had a part-time
employee and Mr. Couzzo said there was a part-time
Secretary who has been with the Department for 5 years.
V/M Bender said the Budget seemed to be realistic and
Mayor Abramowitz asked the City Council to review the
Budget carefully to make sure there were no• changes.
C/M Hoffman asked what Department retained Mr. Couzzo's
salary and Mr. Couzzo said his salary was in the Public
Works Department.
** There were no deductions from the Public Works Administration Budget.
Grounds Maintenance - Page 47
Mr. Burroughs said this Budget reflected building costs
last year; however, this year the building costs would be
placed into a separate Department as reflected on Page
215.
Mayor Abramowitz asked how many employees were in the
Buildings Budget and Mr. Couzzo said 12.5 people. Mr.
Burroughs said this Budget included half of the Division
Superintendent and Mr. Couzzo said the other half was
allocated to the Grounds Maintenance Budget.
Mayor Abramowitz said the City has done without Item 4RB,
Commercial Boulevard Irrigation, for several years. He
said there were several Grants being sought from the
State and he was informed by the Legislators that the
funding may be available. He said based on the emergency
nature of the funding in the City, Items 4RB and 4RX,
Beautification Miscellaneous, could be eliminated because
funding may be available.
Mr. Couzzo said the City was obligated through a joint
Agreement with the City of Lauderhill to do the work on
Page 12
1
1
0
8/16/89
the section between 64 Avenue and University Drive. He
suggested that some funding be left in the Budget for
repairs to the system.
Mayor Abramowitz said if repairs were needed, he was sure
the funding would be available. He suggested that Items
4RB and 4RX be eliminated and the City Council agreed.
Referring to Page 48, C/M Stelzer asked what the
requested funds for Items 640, Vehicles,and, 643,
Machinery and Equipment, were for and Mr. Couzzo said
these Items were requested for the purchase of a 65--foot
bucket truck for the trees and lighting repairs, 1 four
door crew cab to combine maintenance crews into one
to eliminate the need for two vehicles, 1 riding
mower, 1 utility van, 2 weed eaters, 1 radio and an ice
machine.
Mayor Abramowitz suggested Mr. Couzzo submit a list of
the needed equipment, excluding the ice machine. He said
the State was asking what was needed and he would like to
have the information available to prioritize the items.
C/M Stelzer asked what was being done regarding the
trimming of the trees at the Utility Plant and Mr. Couzzo
said it would be a very difficult project for the Public
Works Department to do. Mr. Couzzo said the project
required more skills than tree cutting even with a bucket
truck.
Mayor Abramowitz asked if Florida Power & Light would be
doing this project and City Manager Kelly said Florida
Power & Light cut the trees in half that affected their
lines; however, there were trees at the Utility Plant
which did not affect the power lines.
C/M Hoffman said the City was asked to cut the trees
because they were a danger to power lines and C/M Stelzer
said there were several trees at the Plant that needed to
be cut.
Mr. Couzzo said he received a request from the Director
Of Utilities/Engineering regarding the Public Works
Department's assistance in reviewing the entire project.
He said an in -•depth study would be done to see what
services the Public Works Department could provide.
Mayor Abramowitz said the City of Tamarac was held
responsible for the tree trimming on University Drive
from Southgate Boulevard to Commercial Boulevard. He
said he asked the surrounding Cities to submit copies of
their contracts to see if the other Cities had the same
responsibilities. He said the Director of
Utilities/Engineering indicated that the trees at the
Utility Plant were very shallow rooted and he did not
want them to fall on the Utility Plant. He said the
trees interfering with the power lines were the
responsibility of Florida Power & Light.
C/M Stelzer said there were several other trees that were
dangerous which were not Florida Power & Light's
responsibility and Dina McDermott, Assistant to the City
Manager, said the Australian Pine trees were known to
become brittle the older they got; therefore, the
branches fell off and the liability to the City was great
because equipment and property could be damaged.
Page 13
8/16/89
Mr. Couzzo said this matter would be reviewed and Mayor
Abramowitz said if the trees were on private property,
the City needed permission to cut them.
** There was $20,000.00 reduced from the Grounds Maintenance Budget.
Street/Roads - Page 49
Mr. Burroughs said this Budget reflected a separation as
well. He said this Budget contained several Items for
the drainage and canal systems in the City. He said the
City received State revenue for streets and roads and he
did not approve of the drainage and canal costs being
included in this Budget because Reports were required by
the State for streets and roads. He said the
reconciliation of the costs was listed on Pages 219 and
220.
TAPE 3
Mayor Abramowitz asked if the separation was beneficial
to the City and Mr. Burroughs said the separation did not
affect the Budget; however, the expenses were segregated
into their functional categories. He said the City was
jeopardizing its future funding from the State by
including the drainage and canal costs in the street and
road costs.
Mayor Abramowitz said the Utilities Department dug holes
in the road for repairs and the Public Works Department
was responsible to fill and pave the damage. He said he
would be recommending that the costs be paid by the
Utilities Department as opposed to the Public Works
Department. He said this would allow the Public Works
Department to have more revenue to do other jobs.
Mayor Abramowitz said he would like the Public Works
Department to have more funding; however, this was not
possible at this time. He said the Public Works
Department charged for projects that were instituted by
the Utilities Department.
Mayor Abramowitz asked if this would jeopardize the
projected income and Mr. Burroughs said this procedure
was traditional throughout the Municipal Industry who had
a Utility Department making street cuts. He said the
Public Works Department could identify the costs and
charge the Utilities Department. He said the costs would
be shown in the General Fund as a Miscellaneous Revenue.
Mayor Abramowitz asked if this procedure would jeopardize
the funds received from the State and Mr. Burroughs
replied, no.
C/M Stelzer said the Utilities Department was presently
being charged $350,000.00 for Administrative Services and
Mr. Burroughs said most Municipalities charged the
Utilities Department for Administrative Services. Mr.
Burroughs said an in-depth study was never made on this
matter; however, certain percentages of the services
required by the various Departments were charged to the
Utilities Department which could equate to $350,000.00.
Mayor Abramowitz said he would like to see the Public
Works Department charging the Utilities Department for
the work done because of projects of the Utilities
Department.
Page 14
8/16/89
Mr. Couzzo said the Public Works Department had a system
in place that could identify those costs and C/M Stelzer
asked how much it cost the Public Works Department for
work done for the Utilities Department. Mr. Couzzo said
he would have to calculate the costs to get the figures;
however, the majority of the asphalt work done in the
City was for the Utilities Department.
City Manager Kelly said Item 533, Asphalt Paving, in the
amount of $9,000.00 was needed to do the projects in the
City. He said the reason the request of $18,600.00 was
reduced to $9,000.00 was because the Public Works
Department would be charging the Utilities Department.
Mr. Couzzo said Item 533 was reduced because the Public
Works Department was not able to do the work needed in
the City since a vast majority of the time was used in
repairing Utilities project. He said it was more
realistic figuring that only $9,000.00 would be used on
Public Works Department projects.
Mayor Abramowitz suggested that the Utilities Department
be charged legitimately for the work done for that
Department by the Public Works Department.
C/M Rohr asked why Item 340, Other Contractual Services,
was reduced and Mr. Couzzo said this Item was separated
from Drainage and Canals; therefore, the reduced costs in
this Budget would be found in the Budget for Drainage and
Canals.
C/M Rohr asked if
Item 436, Propane Gas, was placed in
the Drainage
and
Canals Budget and Mr. Couzzo replied,
yes,
Mayor Abramowitz
asked if the City was receiving a
Franchise Tax
for
propane gas and Mr. Couzzo said propane
gas was used
for
the canals. Mayor Abramowitz said there
were several
restaurants
in the City that used propane
gas. He said
there
were several other Cities that had a
Franchise Tax
on
propane gas.
C/M Hoffman said a Franchise Tax was directed against
specific suppli4rs and he asked who would pay the tax.
Mayor Abramowitz said the companies supplying the gas
would be charged and C/M Hoffman asked if the vendors
would need a license to do business in the City. Mayor
Abramowitz replied, yes.
City Manager Kelly said this matter would be
investigated.
Mayor Abramowitz asked if Item 464, Repairs Machinery &
Equipment, in the amount of $14,000.00, could be reduced
and Mr. Couzzo said the Budget for this Item should be
$16,000.00; however, the City Manager reduced it by
$2,000.00. Mr. Couzzo said the equipment was getting
progressively older and required more repairs. He said
it would be very difficult to repair the existing
equipment with only $14,000.00, especially when the
estimated cost of repair was $14,600.00. He said the
equipment would be older this year than last year.
C/M Stelzer had concerns with the City Council requiring
additional reductions after the Department Heads and the
City Manager already made reductions. He said he
Page 15
s/16/89
objected to Steven Oxenhandler, Director of Development
Services, suggesting cuts on Items for the Building and
Code Enforcement Departments.
Mayor Abramowitz said C/M Stelzer was incorrect if he
felt the Mr. Oxenhandler's recommended reductions started
the City Council asking the Department Heads what Items
could be reduced.
V/M Bender asked why the Public Works Department did not
use contractual services to asphalt paving for the
Utilities Department and charge the Utilities Department
for those services.
Mr. Couzzo said this was an option; however, the bottom
line of the Public Works Budget would be increased
because the costs would be reimbursed through a charge
back.
Mr. Burroughs said when the Utilities Department was back
charged it would be done through Revenues, which could
not be touched unless the Budget was increased to offset
the Revenue.
V/M Bender said he wanted to see that the projects were
completed in the City and C/M Hoffman said the funds had
to be included in the Budget in order to be used.
C/M Stelzer suggested that the Utilities Department do
the work themselves and Mr. Couzzo said this would cause
a duplication in equipment, training and supplies.
C/M Hoffman asked if funds could be used from the General
Revenue Fund for the Public Works Department if needed
and Mr. Burroughs said funds could be used from the
General Contingency Fund. Mr. Burroughs said Revenues
could not be used and C/M Hoffman asked if the Revenue
funds were placed in the General Contingency Fund.
Mr. Burroughs said assuming that the back charge to the
Utilities Department was $50,000.00, the funds would be
indicated in the Revenue Budget and the Expense Budget
would be reduced by $50,000.00. He said if Public Works
was given $50,000.00, a line Item would be increased to
offset the Revenue.
C/M Hoffman asked if the Public Works Department could
receive the funds later in the Budget Year if the funds
were collected from the Utilities Department and Mr.
Burroughs said another Public Hearing would have to be
held.
C/M Hoffman said the City Council was constantly
approving transfers from one fund to another and Mr.
Burroughs said the only time transfers were recommended
was when the funding was Budgeted.
Mayor Abramowitz said there was nothing wrong with
holding another Public Hearing and Mr. Couzzo said he
would submit information to the City Council regarding
the projected charge back so it could be projected as
incoming Revenue.
V/M Bender had concerns with the personnel not be
available to do the work and he suggested that
contractual services be obtained to do the work. He said
he wanted the Public Works Department to have the
Page 16
8/16/89
appropriate personnel and funding to do the work that had
to be done as opposed to carrying over work loads each
year.
C/M Stelzer suggested that the Utilities Department hire
the Public Works Department for projects and Mr. Couzzo
said this would require Budget amendments because the
funds would have to be transferred or the Public Works
Budget would run into a deficit.
Mayor Abramowitz asked that these matters be
investigated.
C/M Stelzer asked if street resurfacing would not be done
this year and Mr. Couzzo said he would be presenting a
Study to the City Council of all the roadways in the
City. He said he would be recommending projects to the
City Council on a long and short term basis.
** There were no reductions from the Streets/Roads Budget. Reports
were requested regarding the Public Works Department charging the
Utilities Department for road repairs and a Franchise Tax for
propane gas.
Canals/Draina a -- Page 52
Mr. Couzzo said this was the separation from the
Streets/Roads Budget and Mayor Abramowitz asked how this
separation was working. Mr. Couzzo said the operation was
adequate; however, more time should be spent on the
project.
Mr. Couzzo said this Budget would have a surplus this
year because the expenditures were directed in proportion
to the amount of rain during the year. He said the rain
was sufficient this year; therefore, the expenditure was
not large.
Mayor Abramowitz said funds could be eliminated from this
Budget because the rain has been sufficient and Mr.
Couzzo said the rain was sufficient during the 1988/89
Fiscal Year; however, the rain could not be predicted for
Fiscal Year 1989/90. Mr. Couzzo said if next year was a
rainy season, money had to be available to run the
engines.
Mayor Abramowitz asked what Item 340, Other Contractual
Services, was for and Mr. Couzzo said this was for the
Contractor who performed the maintenance on the aquatic
weeds.
C/M Rohr asked how many employees were in this Budget and
Mr. Burroughs replied, three.
Mayor Abramowitz asked what Item 643, Machinery and
Equipment, was for and Mr. Couzzo said the City under
took a 5 year Capital Improvement Program to replace the
engines. He said there were 4 engines replaced, 1
repaired and 3 more to be repaired. He said the funding
in this Budget would do 2 of the remaining 3 engines.
Mayor Abramowitz asked if the engines had to be done this
year and Mr. Couzzo said the replacements could be
extended to next year; however, more maintenance would be
required.
Page 17
8/16/89
Mayor Abramowitz asked if Impact Fees could be used for
this type of Program and Mr. Burroughs said there were no
fees available; however, it may be illegal to use them
for this project.
C/M Stelzer said the City had a Storm Water Drainage
District which was legal and nothing has been done in
accumulating the funds.
Mr. Burroughs said there was no revenue for the Program
and Mayor Abramowitz said the City Council reviewed the
Budget to approve the expenses for the various
Departments. He said the City Council had a
responsibility to research, direct and implement
additional income.
Mayor Abramowitz asked if the City Council had the right
to collect Impact Fees for specific Programs and Mr.
Couzzo said there were two types of Impact Fees. Mr.
Couzzo said Mr. Burroughs was referring to an initial
Impact Fee from a Developer; however, C/M Stelzer was
referring to on -going Drainage Service Impact Fees from
everyone every year.
C/M Hoffman said this was a Concrete Tax and Mr. Couzzo
agreed.
Mayor Abramowitz asked if a Developer had the
responsibility to address this type of tax when beginning
a project. Mr. Burroughs said the Developers were
required to pay Impact Fees; however, there were no
Impact Fees available in the City at this time.
Mr. Couzzo said there was no development in the City;
therefore, Impact Fees were not being collected.
C/M Rohr said there were new State regulations on
drainage and the Director of Utilities/Engineering stated
that it would cost more to implement a Concrete Tax than
what would be received if it was collected.
Mr. Couzzo said there were enough Studies completed to
provide preliminary information to create a program. He
said the City of Oakland Park was presently implementing
this type of program. He said there could be
implications involved.
The City Council agreed to reduce Item 643 by $25,000.00.
Mayor Abramowitz asked what Item 647, Special Equipment,
was for and Mr. Couzzo said the engines did not impact
the entire City. Mr. Couzzo said there were other
situations on the southeast side of the City that were
manually controlled by the gate structures. He said it
was like opening a dam to the C-13 canals and the gates
needed to be repaired and replaced.
Mayor Abramowitz asked if the Public Works Department
would have the opportunity to do the repairs and
replacements and Mr. Couzzo said this project was
contractual. Mayor Abramowitz asked if this was a
necessary project and Mr. Couzzo said the project needed
to be started this year.
Mayor Abramowitz suggested that Item 647 be reduced by
$10,000.00 and the City Council agreed.
Page 18
** There was a reduction of $35,000.00 from the Canals/Drainage Budget.
Recreation Activities - Page 55
Mayor Abramowitz said there were several people pleased
with the Summer Program by the Recreation Department. He
said the Representatives of the School Board were very
pleased with the Programs and he was pleased with the
relationship established with William Bell, Principal of
Tamarac Elementary School. He said the Summer Program
was successful and he asked for a Report on the different
charges for the Program next year.
Mayor Abramowitz asked what Item 122, Part -Time Employee
Wages, was for and Mr. Couzzo said this Item included
Counselors for After School Programs, Special Day Off
Programs, etc.
C/M Hoffman said Mr. Couzzo recommended that there be
changes in the fees to make the Programs self-sufficient.
He said he recommended that there be profit from the
fees for use in other areas of the Program.
Mayor Abramowitz said the City of Coral Springs had 100
children in their Summer Program at a higher fee than the
City of Tamarac was charging.
C/M Hoffman said there should not be a limit on the
number of children in the Programs; however, the fees
should generate enough funds to make the Programs better
than self-sufficient providing the City Council approved
the new rate schedule.
Mr. Couzzo said the revenues that would be projected were
based upon full participation in the Program. He said
there was no way to determine if the new rates would
discourage participation in the Program.
C/M Hoffman said if there was less participation in the
Program, the Department would not have to hire as many
personnel and Mr. Couzzo agreed. C/M Hoffman said he did
not feel that the rate increase would discourage
participation.
C/M Stelzer asked if the Recreation Department received
the fees collected for the Adult Classes or were the fees
given to the Instructors and Mr. Couzzo said the fees
were collected by the Recreation Department; however, the
Instructors were given 80% of what the Programs
generated.
Mayor Abramowitz asked why $1,800.00 was requested for
Item 344, Instructors, Other Activities, and the City
Manager allocated $14,760.00.
Mr. Couzzo said the request of $1,800.00 should have been
$14,760.00. He said this was a typographical
error.
Mayor Abramowitz asked
what Item 440,
Rentals
and Leases,
was for and Mr. Couzzo
said this Item
included
the
charter bus.
Mayor Abramowitz asked
if the City's
bus operated
appropriately and Mr.
Couzzo said the
bus was
kept in the
best shape possible.
Mr. Couzzo said
if there
were
Page 19
8/16/89
safety problems, the bus was not used. He said a school
bus was rented if the City's bus could not be used.
Mayor Abramowitz asked how much it cost to rent a school
bus and Mr. Couzzo said $750.00 per week. Mayor
Abramowitz said he needed to use a school bus and Mr.
Couzzo said he would submit the hourly costs to the City
Council.
C/M Hoffman asked what was included in Item 481,
Recreation Activities, and Mr. Couzzo said this Item
included all of the Activities and Programs. Mr. Couzzo
said most all of the Activities generated revenue to
offset the costs.
TAPE 4
** There were no reductions from the Recreation Activities Budget.
Park Facilities - Page 57
C/M Hoffman asked what Items 549, Parks Renovation, and,
643, Machinery and Equipment, included and Mr. Couzzo
said Item 549 included the funds that were needed next
year to match the Grant from the State for Veterans Park.
Mayor Abramowitz said the City Council recently approved
funding in the amount of $60,000.00, which was the City's
obligation to match the Grants.
Mr. Burroughs said there was only $30,000.00 in each
fund. He said the City's share for the Veterans Park
Grant was $30,000.00.
Mayor Abramowitz said these funds were allocated in a
prior Budget Account and Mr. Burroughs said these funds
were allocated in 1988/89.
Mayor Abramowitz asked why $15,000.00 had to be allocated
this year and Mr. Couzzo said the project would cost
approximately $60,000.00. Mr. Couzzo said the City had
to indicate the funds in their Budget.
Mr. Burroughs said these funds would be allocated in the
Special Revenue Fund; therefore, $15,000.00 was not
needed for the Veterans Park project.
Mr. Couzzo said this Item provided for a jogging trail,
fitness trail and picnic areas and Mayor Abramowitz
suggested that this Item be reduced.
C/M Hoffman asked if the entire $15,000.00 could be
eliminated and Mr. Couzzo said the shelter needed to be
done.
C/M Hoffman asked if $3,000.00 was sufficient and Mr.
Couzzo said the picnic areas should be done. C/M Hoffman
asked what could be done with $5,000.00 and Mr. Couzzo
said the fitness trail could be enhanced, the stations
could be redone and the picnic areas could be
implemented.
C/M Hoffman suggested that $10,000.00 be eliminated from
Item 549 and the City Council agreed.
Mr. Couzzo said Item 643 included 14 items. He said one
of the items needed was the playground equipment. He
Page 20
8/16/89
said the equipment has been Budgeted for 4 years and held
in abeyance until the sale of the City property. He said
the equipment would cost approximately $10,000.00.
C/M Hoffman asked if this Item could be reduced by
$21,900.00 and Mr. Couzzo said $20,000.00 would provide
for the projects this year.
Mayor Abramowitz asked if $20,000.00 would provide for
the playground equipment ad Mr. Couzzo replied, yes,
providing it was understood that the playground equipment
was considered capital equipment.
C/M Hoffman suggested that Item 643 be reduced from
$57,400.00 to $20,000.00.
C/M Hoffman asked what Item 539, Parks/Maintenance, was
for and Mr. Couzzo said this Item included several
projects. Mr. Couzzo said this Item provided for all the
maintenance needed at the Parks. He said the Item was
increased because of the new responsibilities at the
Tamarac Sports Complex.
Mayor Abramowitz said the City has been more than fair to
the younger population than the past. He said even
though there were more things wanted, there was no
funding available to provide more.
** There was a reduction of $31,900.00 from the Park Facilities Budget.
-----------------------------------------------------------------
Mayor Abramowitz said he would
meeting and City Manager Kelly
Items remaining for the Public
Departments.
like to Adjourn this
said there were several
Works/Parks and Recreation
Mayor Abramowitz said he would be more comfortable when
the Utilities Budget was available for review.
C/M Hoffman asked what the Utilities Budget had to do
with reviewing the remaining Items and Mayor Abramowitz
said the staff that had to work on the Utilities Budget
were present at these Workshop meetings. Mayor
Abramowitz said the staff needed the opportunity to work
on the Utilities Budget.
C/M Hoffman asked if there were several Items remaining
in the General Budget which needed to be reviewed and
City Manager Kelly said there were several Items
remaining.
Mayor Abramowitz said he did not approve of continuing
the Budget review until the Utilities Budget was
available.
V/M Bender suggested that the City Council break for
lunch and return to continue the Budget review.
At 12:15 P.M.,
RECONVENED at
Manager Kelly
Manager.
Mayor Abramowitz RECESSED the meeting and
1:25 P.M. with ALL PRESENT except C/M Stelzer, City
and Dina Mc Dermott, Assistant to the City
Page 21
8/16/89
Police Building - Page 38
Mr. Couzzo said this Budget was for the operational and
personnel expenses to maintain the Police Facility. He
said the Broward Sheriff's Office would be charged
$70,000.00 annually for these services.
Mayor Abramowitz asked how many personnel were Budgeted
and Mr. Couzzo replied, 2 people.
C/M Hoffman asked what Item 464, Repairs Machinery &
Equipment, was for and Mr. Couzzo said this Item provided
for equipment that could have been placed in the Other
Contractual Services Account. Mr. Couzzo said the Item
included pest control, air conditioning and generator
maintenance.
At 1:27 P.M., C/M Stelzer ENTERED the meeting.
C/M Hoffman asked what Item 503, Mtce. Land-Bldgs-Imprs,
was for and Mr. Couzzo said this Item included
landscaping, painting, interior/ exterior hardware,
plumbing and electrical supplies.
** There were no reductions from the Police Building Budget.
Fleet Services Fund - Page 111
Mayor Abramowitz asked if this Budget reflected the money
allocated to the Departments and Mr. Burroughs replied,
yes, plus the interest earned.
** There were no reductions from the Fleet Services Fund Budget.
-----------------------------------------------------------------
Fleet Services - Page 113
At 1:29 P.M., City Manager Kelly ENTERED the meeting.
Mayor Abramowitz asked how many employees were in this
Budget and Mr. Burroughs replied, 6.4 people.
Mayor Abramowitz asked what Item 306, Special
Supplies/Services, was and Mr. Couzzo said this Item
included grease and lubricant supplies.
C/M Hoffman said the City was considering moving the
Public Works Department and he asked if this was Budgeted
for and Mr. Couzzo replied, no.
C/M Hoffman asked how much was anticipated for the move
and City Manager Kelly said this matter would have to be
discussed at a Special or Workshop City Council meeting.
C/M Hoffman asked
if the funds from the sale'of the
Public Works property
had to
be in the Budget before
using them and Mr.
Mr. Couzzo said a
Burroughs
Special Public
replied, yes.
Hearing could be held on
this matter once a
decision
was made and C/M Hoffman
suggested that the
estimated
cost be placed in the
Budget. C/M Hoffman
said it
would cost extra money to
Page 22
8/16/89
hold Public Hearings and Mr. Burroughs said this matter
could be considered before the first Budget Public
Hearing.
Mayor Abramowitz said he would not vote on anything until
the money from the sale of the Public Works property
belonged to the City. He said things may occur that
would mandate the City return the funds to the buyer of
the property. He said he did not want the City to rely
on those funds until everything was finalized.
C/M Hoffman said no matter what was done, the City was
stymied until the Public Works Department was off the
property. He said the Public Works Department must be
off the property before a Release of Lease Notice was
given to the buyer of the property.
Mayor Abramowitz said Notice would be given shortly and
City Manager Kelly said the Public Works Department had
to be off the property in time. City Manager Kelly said
a Workshop meeting would be scheduled in the near future
regarding this matter.
Mr. Burroughs said the rent for the property had to be
placed into the Budget. He said in order to pay the
rent, the money had to be available.
Mayor Abramowitz said this matter was very complicated
and projections had to be provided even though they may
not be used. He said this matter would require time so
that a decision could be made.
C/M Stelzer said the City had a liability with a possible
income. He said the funds could not be used until the
sale was finalized; however, the liability for expenses
was precise and had to be Budgeted.
C/M Hoffman asked if the funds had to be available for
Item 994, Depreciation Expense, and Mr. Burroughs said
there had to be income to cover the expense.
C/M Hoffman asked if the funds were included in the Ad
Valorem Tax and Mr. Burroughs said $250,210.00, minus the
interest earned of $3,000.00, was distributed to all of
the Departments and TUW.
C/M Hoffman said $6,000.00 was charged to the taxpayers
and he asked if it was necessary to have this Item in the
Budget other than for bookkeeping purposes.
C/M Stelzer said this was the same situation that Data
Processing and Purchasing had. He said each Department
was never charged for their share of the equipment and,
when new equipment was purchased, the funds would be
taken out of the Depreciation. Account.
Mayor Abramowitz asked if this was the procedure every
year and Mr. Burroughs said this has been the procedure
since he became the Finance Director.
C/M Hoffman asked how much was in the Depreciation
Account and Mr. Burroughs said the funds were not
segregated. C/M Hoffman asked if the funds could be
taken from this Account if equipment was needed and Mr.
Burroughs said the Budget would be increased and the
equity would be decreased.
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Wm :.
Mayor Abramowitz asked if there were any restrictions for
the Departments to use the Depreciation Account for the
purchase of equipment and Mr. Burroughs said funds could
be used for capital equipment but not operating expenses.
Mayor Abramowitz asked
only be used to replace
Department that it was
agreed.
if the Depreciation Fund could
existing equipment in the
Budgeted for and Mr. Burroughs
Mayor Abramowitz asked how much money was in the Data
Processing, Purchasing and Fleet Maintenance Departments.
C/M Hoffman had concerns with the Ad Valorem containing a
Depreciation amount as well as an amount for purchasing
equipment.
V/M Bender asked what happened to the funds if they were
not used to purchase equipment and City Manager Belly
said the funds were left in a reserve account.
C/M Hoffman asked if the funds could be used to repair
equipment and Mr. Burroughs said if the funds were used
for operating expenses, the equity fund would be reduced
to a deficit situation. Mr. Burroughs said this was what
he was trying to overcome.
V/M Bender had concerns with the funds constantly being
in a reserve if they were not used to replace equipment.
He asked what the funds could be used for.
C/M Stelzer said if a lift was needed in the Fleet
Maintenance Department, a transfer could be made from the
Depreciation Account to an Account in the Fleet
Maintenance Department.
Mr. Burroughs said the problem was that depreciation has
not been built up and V/M Bender asked what happened to
the funds if they were not used to replace equipment.
Mayor Abramowitz asked if the City Council could approve
the purchase of equipment during the year for emergencies
by allocating the funds from the Depreciation Account for
that Department.
Mr. Burroughs said yes, assuming that the Budget was
amended during that year at a Public Hearing.
Mayor Abramowitz said he has been very pleased with the
things he has learned in the past few days and City
Manager Kelly said he wished that more people would
attend the meetings so that they could understand.
** There were no reductions from the Fleet Services Budget. The
City Council requested a Report on the Depreciation Funds in
the Data Processing, Purchasing and Fleet Maintenance Departments.
City Hall Operations - Page 34
Mayor Abramowitz said he found that there were expenses
for the maintenance of the building which were not
reflected in this Budget Item, such as ground maintenance
and carpentry work.
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8/16/89
Mr. Burroughs said Page 35 reflected the employees which
were taken out of the Grounds Maintenance Department and
placed in a new Department called, "General Government
Buildings". He said technically the Police, City Hall
and General Government Buildings could be combined into
one Budget.
Mayor Abramowitz said he has been asked several times tc
provide the maintenance cost of the City Hall building.
He said Mr. Couzzo informed him that it would difficult
to allocate the percentage of time spent by staff at the
facility. He said he saw the staff at the facility
several times and the ground maintenance costs were
given; therefore, a percentage of time had to be
provided.
Mr. Couzzo said it was hard to take a percentage of the
employees time and charge it to the appropriate
Departments and Mr. Burroughs said any employee could be
TAPE 5 distributed to two Departments.
C/M Hoffman said the bottom line cost was the same amount
regardless of where the personnel were distributed.
Mayor Abramowitz said it was difficult to calculate the
total amount of time spent by an employee at the
facilities; however, an estimated figure should be
included.
Mr. Couzzo said the estimated costs from last year may be
more. He said the costs varied on the time of the year,
such as electricity.
C/M Rohr asked if the City Manager investigated the
information he submitted regarding a computerized system
for electricity.
Mr. Couzzo said the system was presently on a computer
and City Manager Kelly said he would review this Report.
Mayor Abramowitz asked if there were any other expenses
that were not shown in the City Hall Operations Budget
and Mr. Couzzo said the elevator expense, pest control,
window cleaning, security locks, etc., were charged to
this account; however, the buildings needed maintenance
requiring several personnel, and the expenses were for
this purpose.
Mayor Abramowitz asked what Account the special
maintenance costs were taken from and Mr. Couzzo said the
costs came from the Budget that included the personnel
who handled the project.
Mayor Abramowitz asked what the bottom line cost was for
personnel handling the City Hall Operations and Mr.
Couzzo said he could submit an estimated cost to the City
Council; however, the costs could not be reflected in the
Account.
Mayor Abramowitz said he would like to answer questions
as thoroughly as possible.
C/M Rohr asked what Buildings were covered by the costs
on Page 35 and Mr. Couzzo said these costs were for the
existing Public Works Facility and the old City Hall
Building.
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8/16/89
C/M Hoffman asked what salaries were involved for the old
City Hall Building and Mr. Burroughs said he suggested
that the three Building Accounts be combined to reflect a
lump sum Budget.
Mayor Abramowitz asked that a Percentage Report be
submitted to the City Council regarding the Personnel
costs for the Municipal/City Hall Complex.
C/M Hoffman asked what one dollar related to in Ad
Valorem Tax and Mr. Burroughs replied, $120,000.00. C/M
Hoffman asked how much the Ad Valorem would be reduced if
there was a reduction in the Budget by $100,000.00 and
Mr. Burroughs said, roughly. $.80.
** There was no reduction in the City Hall Operations Budget.
The City Council requested a Percentage Report regarding the
Personnel costs for the Municipal/City Hall Complex.
General Government Buildings - Page 35
Mr. Couzzo said this Budget was for the existing Public
Works Facility and the old City Hall Building.
C/M Rohr asked what type of expenses could be incurred
for a closed Building and Mr. Couzzo said the Building
had to have power and air conditioning to avoid mildew.
C/M Rohr asked if the Building had a thermostat and Mr.
Couzzo replied, no. C/M Rohr asked what percentage in
personnel was being used to maintain the old City Hall.
Mr. Burroughs said Item 120, Regular Salaries, included
the personnel eliminated from the 407 Account which were,
two Senior Tradesmen and two Maintenance Workers.
Mayor Abramowitz asked how the Senior Tradesmen were
allocated to the old City Hall Building but not the
Municipal/City Hall Complex. Mr. Couzzo said all of the
salaries were allocated to this Budget.
Mr, Burroughs said he extracted the salaries from the
Ground Maintenance Department and placed it in this
Department. He said if the City Council wanted the
salaries allocated 50% in one Department and 50% in
another Department, it could be done.
C/M Stelzer said the bottom line would remain the same
either way and Mayor Abramowitz said he would like to
know what the total cost for personnel was for the old
City Hall Building.
** There were no reductions from the General Government Buildings
Budget. The City Council requested a Percentage Report on the
cost of personnel for the old City Hall Building.
City Manager Kelly asked when the City Council would like
to schedule the meeting for the Charter Board, Community
Development, Economic Development, General Services,
Non -Departmental, Legal, Telecommunications and Revenues
Budgets.
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8/16/89
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Mayor Abramowitz said he would like to have the Utilities
Budget completed before the Workshops continued. He said
when the staff who prepared the Utilities Budget sat at
the Workshop meetings, the Utilities Budget was not being
completed.
Mayor Abramowitz asked how long the Finance Department
needed to get the Utilities Budget completed and Mr.
Burroughs said he had to consult with the City Manager
regarding some problems.
C/M Stelzer asked if the Utilities Budget would be
reviewed before the Millage Budget and Mayor Abramowitz
said there were very important Departments remaining to
review; therefore, he would like to have more facts
before he reviewed those Budgets.
Mayor Abramowitz asked Mr. Burroughs when the Utilities
Budget would be ready for review and Mr. Burroughs said,
possibly Monday Afternoon, (August 21, 1989).
Bob Hoyt, Deputy Finance Director, said the Finance
Director needed further information regarding the
Insurance Budget. He said there was no way to complete
the Utilities Budget until the Insurance Budget was
determined because the Insurance figures were included in
the Utilities Budget.
Mayor Abramowitz suggested that Community Development
Budget be held in abeyance until the Utilities Budget was
available. He suggested that the small Budgets be
reviewed at 9:30 A.M., tomorrow morning, (August 17,
1989) .
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City Manager Belly said he received confirmation from the
State Department of National Resources that the City was
approved for the appropriation of $250,000.00 for the
Multi -Purpose Center. He said the City was required to
respond to them so that a Contract could be submitted.
He said the response was presently being sent.
With no further business, Mayor Abramowitz ADJOURNED this
meeting at 2:20 P.M.
CAROL A. EVANS, CITY CLERK
"This public document was promulgated at a cost of $250.60 or $31.33 per
copy to inform the general public, public officers and employees of
recent opinions and considerations of the City Council of the City of
Tamarac."
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