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Minutes 03/15/2018 BUDGET COMMITTEE PELICAN BAY SERVICES DIVISION MARCH 15,2018 The Budget Committee of the Pelican Bay Services Division met on Thursday, March 15, at 8:30 a.m. at the SunTrust Bank Building, located at 801 Laurel Oak Drive, Suite 302, Naples, Florida 34108. In attendance were: Budget Committee Mike Shepherd, Chairman Scott Streckenbein Joe Chicurel Gary Ventress (absent) Ken Dawson 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 Susan O'Brien, PBSD Board APPROVED AGENDA (AS PRESENTED) 1. Pledge of Allegiance 2. Roll call 3. Agenda approval 4. Approval of 8/30/17 meeting minutes 5. Audience comments 6. Budget schedule 7. Recap of existing budget and forecasts 8. Preliminary FY 2019 budget 9. Proposed Fleet replacements and capital equipment list 10. Proposed capital projects—additions/deletions 11. Other Business 12. New Business 13. Adjourn ROLL CALL Mr. Ventress was absent and a quorum was established AGENDA APPROVAL Mr. Streckenbein motioned, Mr. .Dawson seconded to approve the agenda as presented. The motion carried unanimously. 1 Budget Committee of the Pelican Bay Services Division March 15,2018 Minutes APPROVAL OF 8/30/17 MEETING MINUTES Mr. Streckenbein motioned, Mr. Dawson seconded to approve the 08/30/17 meeting minutes as presented. The motion carried unanimously. AUDIENCE COMMENTS None BUDGET SCHEDULE Mr. Shepherd reviewed the FY19 budget schedule, included in the agenda packet, which identified meetings and deadlines applicable to the March through September budget cycle. RECAP OF EXISTING BUDGET AND FORECASTS The committee reviewed the FY18 budget to actual budgetary documents for all PBSD cost centers, prepared by Ms. McCaughtry. Mr. Shepherd commented on a "PBSD Revenue Shortfall" graph which quantified $13,681,021 of accumulated deferred maintenance and O&M expenses over the last 12 years. PRELIMINARY FY 2019 BUDGET Ms. McCaughtry commented that in general, FY19 budget line items were increased 2.8% over FY18. She used FY18 dollar amounts for all County charged expenses for the FY19 budget draft prepared for this meeting. When actual numbers are received from the County OMB Dept, she will update these charges in our draft FY19 budget. Mr. Streckenbein motioned, Dr. Chicurel seconded to accept Ms. McCaughtry's proposed FY19 budget for the routine expense items as written for the purposes of this meeting. The motion carried unanimously. PROPOSED FLEET REPLACEMENTS AND CAPITAL EQUIPMENT LIST Mr. Bolick commented on the FY19 vehicle & equipment replacement list, prepared by the County Fleet Dept., and is requesting replacement of two trucks and one Kubota. Mr. Dawson motioned, Mr. Streckenbein seconded to approve the replacement of three vehicles (two trucks and one Kubota) per the County's recommendation. The motion carried unanimously. Mr. Bolick commented on the purposes and uses of the items included on his list of requested capital equipment,totaling $205,400. Dr. Chicurel motioned, Mr. Dawson seconded to approve the proposed capital equipment purchases as listed in the schedule provided for the purposes of this meeting. The motion carried unanimously. 2 Budget Committee of the Pelican Bay Services Division March 15,2018 Minutes Mr. Dawson motioned, Mr. Streckenbein seconded that we add a $7,500 golf cart for Ms. Jacob to our capital list that the committee has already approved. The motion carried unanimously. Mr. Dorrill will also pursue an "equivalent vehicle" (used or reconditioned) as an alternative to a new golf cart. PROPOSED CAPITAL PROJECTS—ADDITIONS/DELETIONS The committee reviewed and discussed items on the "capital projects planning estimates" schedule, which included carry over projects and new projects for FY18, FY19 and FY20 for planning purposes. Highlights included: • No accrual funding for super-renourishment of PB beaches. • Accrual of$500,000 for each of the next 10 years to complete the remediation of the lake banks of ten lakes which are critically eroded. Lake 2-9 is scheduled for FY19. • $40,000 budgeted for the Gulf Park U-turn cut-through project, approved by the PBSD Board. • $1,000,000 budgeted to repay the loan from Fund 778 for IRMA expenses. The amount and timing of FEMA reimbursement for IRMA expenses are unknown. • No FY19 funding for sidewalk replacement as the PBSD currently has no authority for sidewalk expenditures. • New landscape projects to include, (1) $400,000 for US 41 remediation, as estimated by ABB, (2) $150,000 for interior landscape remediation, and (3) $35,000 for tree inventory & condition assessment. • Mr. Dorrill suggested using a County contractor "sewer viewer" for $10-20,000 in FY18 for random checking of stormwater pipes and a similar amount in FY19 for "pre- engineering" in the Fund 320 capital improvement budget. Ms. McCaughtry stated that funds are available in the FY18 Water Management engineering budgeted line item. Mr. Dorrill will follow up with our engineer, Mr. Jim Carr of ABB, to suggest an adequate FY19 budget for this project. Mr. Streckenbein motioned, Dr. Chicurel seconded to accept the capital projects list for FY19, as discussed at this meeting, as our forward plan. The motion carried unanimously. OTHER BUSINESS Ms. O'Brien commented on the increasing number of PBSD projects versus the stagnant number of employees (two) who are tasked with managing them. She also commented that both Mr. Bolick and Ms. Jacob have been over-burdened with hurricane-related projects. Ms. O'Brien suggested that the full board discuss our current staffing level. Mr. Dorrill commented on the current internal performance audit and its related staff time demands. Mr. Shepherd suggested that staff look at capturing the appropriate percentage of Ms. Jacob's time applicable to each cost center. 3 Budget Committee of the Pelican Bay Services Division March 15, 2018 Minutes ADJOURNMENT The meeting was adjourned at 9:52 a.m. Mike Shepherd, Chairman Minutes approved [ as presented OR [ ] as amended ON [ `/." /3 `/F ] date 4