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Productivity Minutes 05/19/2010 (_( ,6. lo)/(410 )(DTI COLLIER COUNTY GOVERNMENT PRODUCTIVITY COMMITTEE Minutes — May 19, 2010 2 p.m. Members Present: Brad Boaz, Jim Gibson, Steve Harrison, Vladimir Ryziew, Joe Swaja and Janet Vasey. Members Excused: Doug Fee and Jim Hoppensteadt were excused. Resignations: John Barlow and Michael Wu. BCC Liaison: Commissioner Hales was in attendance. Staff Present: Carol Golightly, Sheriffs Office; Crystal Kinzel, Clerk's Finance Office; Michael Sheffield, Assistant to the County Manager; Leo Ochs, County Manager; Mark Isackson, Financial Management; Barbetta Hutchinson, Office of Management and Budget. Others Present: Joyce Fletcher, League of Women Voters and Harold Hall. INTRODUCTION: Call to Order: Steve Harrison confirmed a quorum and called the meeting to order at 2:00 p.m. Approval of the Agenda for May 19, 2010: Steve Harrison wanted to add a new item regarding new projects and another regarding discussion about new members. Vlad Ryziew motioned to approve with the additions, Joe Swaja seconded and the group unanimously agreed to approve the agenda. Approval of the April 21, 2010 Productivity Committee Meeting Minutes: There were two corrections in the minutes from the last meeting. Joe Swaja motioned to approve the minutes with those corrections, Janet Vasey seconded and the group unanimously approved. Mike Sheffield told the group that the recording device was not working properly. He also said that Michael Wu resigned his position on the committee. With the resignation of John Barlow and Larry Magel, that leaves three positions to be filled. UNFINISHED BUSINESS: School Board Participation on the Committee: Steve told the group that he attended the BCC meeting and asked that a letter be sent to the School Board regarding synergy opportunities and having a representative attend the meetings of the Productivity Committee. The Commissioners approved his request and agreed to write the letter. 1 FY11 Budget Strategy— Mark Isackson recapped the current budget strategy with the group. Because the BCC recognizes that the taxable values will drop this coming year (an assumed 10%), they asked for 5% be taken off the operating budget and another 5% from capital. Although the capital funds will not be used for building any new roads or structures right now, they recognize that existing roads and buildings need to kept up in order to protect our investments. The Board agreed that the County should be working towards a millage neutral budget. The assessed value will likely increase around 2.7%, homestead market value is likely to decline, therefore the homesteaded property owner will have increased taxes again this year. Reserves are around 2%% which is concerning if there is a wind event and we need the funds. Commissioner Halas has concerns about the European market. Tourist tax dollars are on target and the gas tax dollars are holding flat. Steve Harrison asked if the employees will be asked to take a pay cut to share the pain in the budget reduction process. The Commissioner said that the employees have already made sacrifices by getting no raises or cost of living adjustments for the past 3 years while their workloads have continued to grow due to the hiring freeze. Jackson Labs Update: The group brainstormed and came up with some suggestions where the county might get some of the funds necessary to attract their move to Collier County. Franchise fees, TIFF funds, Collier enterprises donating land —would all mean an investment in our future. The increase of property taxes, sales taxes and the sale of enterprise bonds were also discussed. Joe Swaja said that in order to put a sales tax in place it would have to go to a vote and the citizens will not vote for higher taxes. Mark said that $3.77M would be generated with a 1% franchise fee, which would equal $22.3M if the fees went up to the maximum rate of 5.9%. Steve Harrison said we need to decide who benefits from this project and go after them for funds. We should meet with potential vendors, drug companies, medical school alliances, universities and health insurance companies to follow the money. Commissioner Halas asked Mike Sheffield to invite Commissioner Coyle and Tammie Nemecek to give an update on Jackson Labs at the next meeting. Mike will make sure to advertise that 2 commissioners will be in attendance so as not to violate Sunshine Law. Janet asked Mark to develop a spreadsheet to show how much cash is needed and a timeline showing the dates of that needed cash availability. NEW BUSINESS: Discussion on Participation in the AUIR: Since there is no money in the capital funds, Joe Swaja motioned that the committee should not participate in the AUIR this year, but would welcome the opportunity to resume their participation when funds return. Brad Boaz seconded and the group unanimously approved. Janet will prepare the letter for the signature of the chairman and send it to Mike Sheffield. 2 Out-sourced Functions: Mike asked the committee to table the discussion until next month so that he may more time to put together an organized presentation. Steve asked that any jobs that cost less than $10,000 be left off of the list. Recommendation for New Committee Members —The group discussed the need of someone in the medical field with the upcoming Jackson Labs issue be asked to join the committee. Committee members agreed to make some phone calls to health and educational related positions to apply for membership. The positions will be advertised and as soon as applications are received, Mike will forward them to the group for review. General Discussion: Beach Renourishment: The Commissioner was asked about the decision to spend $1.5M on beach renourishment. He said that because there is public access to the gulf, the Commission felt it was necessary to provide the improvements. The reason for the WI cost is that the sand has to be trucked in from somewhere near Orlando because of governmental specifications of the quality and texture of the sand. Bond Documents: Crystal Kinzel said that the documents are in their second draft and everything is progressing nicely. Adjournment: Joe Swaja motioned to adjourn the meeting, Brad Boaz seconded and tliQgroup unanimously approved. The meeting was adjourned by the Chairman at 4:22 Next Meeting: The next regular meeting of the Productivity Committee Meeting will be held at 2:00 p.m. on Wed. June 16, 2010. This meeting will be held in the County Manager's Conf. Room in Bldg F, 2nd floor at 3301 Tamiami Trail East. Approved by Productivity Chair, Steve Harrison 3