Minutes 05/10/2016 PELICAN BAY SERVICES DIVISION
AD HOC COST SAVING STRATEGIES COMMITTEE MEETING
MAY 10,2016
The Ad Hoc Cost Saving Strategies Committee of the Pelican Bay Services Division met on
Tuesday, May 10 at 9:00 a.m. at the SunTrust Bank Building, 801 Laurel Oak Drive, Suite 302,
Naples, Florida 34108. The following members attended.
Ad Hoc Cost Saving Strategies Committee Bohdan Hirniak
Mike Shepherd, Chairman Gary Ventress
Pelican Bay Services Division Staff Mary McCaughtry, Operations Analyst
Neil Dorrill, Administrator Lisa Jacob, Associate Project Manager
Marion Bolick, Operations Manager Barbara Shea, Recording Secretary
Also Present
Ken Dawson, PBSD Board Brandon Reed, County Legislative Affairs
Robert Naegele, PB Property Owners Assoc. Scott Streckenbein, PBSD Board
APPROVED AGENDA (AS PRESENTED)
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Audience comments
5. Initial goal statement—commentary from the Chair
6. Review existing PBSD landscape budget
7. Review existing PBSD landscape organization
8. Review of local wage levels
9. Preliminary cost reductions available—no change in basic"model"
10. "Model" alternatives
a. Scope of work modifications
b. Expanded use of temporary employees
c. Benefit"stripping"
d. Outsource some/all landscape function to private contractors
e. Changes to PBSD Ordinance
i. Independent MSTU for landscape
ii. Abandon landscape function altogether
f. Other
11. Forward Plan
a. Review similar communities with alternative structures
i. Pelican Marsh—"independent"district within county
ii. Bonita Bay—"private"property, without county affiliation
b. Feasibility study of various models
12. Adjourn
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Pelican Bay Services Division Ad Hoc Cost Saving Strategies Committee Meeting
May 10,2016
ROLL CALL
All members were present and a quorum was established
AGENDA APPROVAL
Mr. Shepherd motioned,Mr. Hirniak seconded to approve the agenda as presented.
The motion carried unanimously.
AUDIENCE COMMENTS
None
INITIAL GOAL STATEMENT—COMMENTARY FROM THE CHAIR
Mr. Shepherd reviewed the functional responsibilities of the PBSD, including changes
over the recent past. He identified the reason for the formation of the ad hoc committee to be the
recent double-digit PBSD assessment increases. These increases were approved by the PBSD
Board in an effort to stem the deterioration of service to the Pelican Bay community resulting
from many years of flat budgets during times of rising costs. He stated that his goal for the
committee is to look at the overall PBSD cost structure and potential changes to the current
model.
REVIEW EXISTING PBSD LANDSCAPE BUDGET
Mr. Shepherd reviewed the proposed PBSD FY17 budget. He provided explanations of
line items including indirect cost reimbursements, other contractual services, rent-buildings,
maintenance site ins. & assessment fees, trash and dumpster fees, fleet charges,tax collector
fees, and property appraiser fees. He noted that numerous expenses and salaries are not
reasonably allocated between the water management, landscaping, and street light functions. Mr.
Shepherd provided a spreadsheet entitled"Operating budget—rebalanced"which reallocated
expenses among these PBSD functions to show a truer reflection of total costs of each function.
He developed the new allocations based on information obtained from staff.
REVIEW OF LOCAL WAGE LEVELS
Mr. Shepherd reported on information he obtained by surveying local landscape
contractors which included the wage range, typical weekly hours, and benefits which are
customary for landscape labor in the private sector in Collier County. His survey indicated that
local landscape contractors consider a base wage of$12-14/hour to be the local industry practice
for competent employees. Work weeks are typically 48-50 hours per week with overtime pay
over 40 hours. Private landscape employees are typically not provided any benefits.
IDENTIFIED IMMEDIATE COST REDUCTIONS AVAILABLE
Mr. Shepherd identified current PBSD budgeted expenses which could be eliminated to
provide immediate savings:
(1) $30,000 for additional Sheriff patrols in season. He suggested that the Sheriff is
already providing "sufficient"routine patrols. Of 129 patrol reports reviewed by Mr. Shepherd,
only 13 were safety-related citations; none appeared to be unique to "season."
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Pelican Bay Services Division Ad Hoc Cost Saving Strategies Committee Meeting
May 10,2016
(2) $21,100 for private weekly street sweeping. Mr. Shepherd suggested the elimination
of this service because the County provides monthly street sweeping and Mr. Bolick's crews use
blowers on the streets every week.
(3) $8,000 for holiday decorations at entry. Mr. Shepherd suggested this is a logical
expense of the Pelican Bay Foundation, not a responsibility of a local municipality.
(4) $9,120 for employee uniforms and laundering services. Mr. Shepherd stated that
private landscaping contractors typically provide employees with T-shirts only; no laundering
services, pants, hats or boots are provided.
(5) $43,900 for"unusable"reserves.
(6) Funds for the CIP capital project. Mr. Shepherd reported that the original CIP capital
plan was formally abandoned. He suggested releasing some or all funds in this project to pay for
on-going landscape replacement.
Mr. Hirniak and Mr. Ventress commented that these cost savings were"a great start."
Mr. Bolick reported that employee uniforms are a county identified benefit. Mr. Dorrill
suggested that employee uniforms may be a requirement of the county workers' compensation
insurance.
The consensus of the committee was to go forward with these recommendations.
"MODEL" ALTERNATIVE—BENEFIT "STRIPPING"
Mr. Shepherd described an alternative labor model whereby employees are stripped of
benefits and leased back from a private leasing company. He concluded that the savings from
removing the employee benefits were equally offset by "paying the profit margin"to the leasing
company.
"MODEL" ALTERNATIVE—OUTSOURCING SOME/ALL LANDSCAPE FUNCTION
Mr. Shepherd reported on his contacting one landscape contractor for a proposal for
landscaping services for the Gulf Park Drive corridor. Based on the total Pelican Bay square
footage for which PBSD provides landscaping services, Mr. Shepherd extrapolated out what a
proposal by a private contractor might be for all PBSD landscaping services. Based on these
calculations, he estimated total outsourcing of the landscape function might result in a savings of
$1.1 million to the PBSD. Alternatively, if the landscape contractor were hired by the Pelican
Bay Foundation,the savings might increase to $1.25 million.
"MODEL" ALERNATIVE—INDEPENDENT MSTU FOR LANDSCAPE FUNCTION
Mr. Shepherd suggested the possibility of creating an independent MSTU for the
landscape function only, requiring a change to the PBSD ordinance. An independent MSTU for
the landscape function only, requiring a change to the PBSD ordinance. An independent MSTU
would not face allocated overhead costs and have considerably more latitude in hiring employees
and/or temps, compensation levels and benefit packages. An independent district would also
have access to a larger selection of landscape contractors and not be constrained to select from
"lowest bidders." Mr. Dorrill urged the committee to consider the high level of contract
administration required to ensure that landscape contractors adhere to the terms of their
contracts. Mr. Ventress and Mr. Hirniak commented in favor of stripping out the landscape
function from the PBSD.
BENEFITS OF REMAINING AS AN MSTBU UNDER COLLIER COUNTY
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Pelican Bay Services Division Ad Hoc Cost Saving Strategies Committee Meeting
May 10, 2016
Mr. Dorrill identified the benefits of remaining as a dependent district under Collier
County as (1)the ability to obtain cheaper county pricing for commodities, vehicles, other goods
and services, and property and liability insurance, (2)the savings from not having to pay sales
tax on purchases, and (3) sovereign immunity.
FORWARD PLAN
Mr. Dorrill suggested the committee set up a work group with its counterparts at the
Pelican Bay Foundation to explore different options as well as to determine whether the PBF's
enabling documents, by-laws, and covenants allow the PBF to perform public works. He also
suggested implementing a pilot program to hire an independent contractor to provide all
landscaping services for one area of Pelican Bay, such as Gulf Park Drive, and monitor the
success of the program over a few years.
In light of the cost savings discussed, Mr. Ventress and Mr. Hirniak spoke in favor of
stripping the landscaping function out of the PBSD. Mr. Streckenbein spoke in favor of a pilot
program; a total model change would be too abrupt and disruptive.
Mr. Shepherd concluded that he would schedule an additional ad hoc committee meeting
to discuss the items in the agenda packet not discussed at this meeting. Subsequently he would
schedule a work group with the PBF to include Dave Cook.
ADJOURNMENT
The meeting was adjourned at 10:35 a.m.
Mike Shepherd, Chairman
Minutes approved [ ] as presented OR [ ',41 as amended ON [ 04- /6 ] date
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