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PBSD MSTBU Minutes 04/06/2023BUDGET COMMITTEE PELICAN BAY SERVICES DIVISION APRIL 6, 2023 The Budget Committee of the Pelican Bay Services Division met on Thursday, Apr. 6 at 2*00 p.m. at the Truist Building, 801 Laurel Oalc Drive, Suite 102, Naples, Florida. In attendance were: Budget Committee Michael Fogg, Chairman Joe Chicurel Denise McLaughlin Michael Rodburg Pelican Bay Services Division Staff Dave Greenfield, Supervisor —Field II Neil Dorrill, Administrator Karin Herrmann, Project Manager I Chad Coleman, Operations Manager Lisa Jacob, Project Manager II (absent) Darren Duprey, Supervisor - Field I (absent) Barbara Shea, Admin. Support Specialist 11 Also Present APPROVED AGENDA (AS PRESENTED) 1. Pledge of Allegiance 2. Roll call 3. Agenda approval 4. Approval of 11 /09/2022 meeting minutes 5. Audience Comments 6. Review of the draft FY24 PBSD budget 7. Target FY24 PBSD assessment 8. Adjournment ROLL CALL All members were present and a quorum was established. AGENDA APPROVAL Ms. McLaughlin motioned, Mr. Rodburg seconded to approve the agenda as resented. The motion carried unani) mousy, APPROVAL OF 11/09/2022 MEETING MINUTES Ms. McLaughlin motioned, Mr. Rodburg seconded to approve the 11/09/2022 meeting minutes as presented. The motion carried unanimously. Pelican Bay Services Division Budget Committee Meeting April 6, 2023 AUDIENCE COMMENTS None REVIEW OF THE DRAFT FY24 PBSD BUDGET Mr. Fogg provided an additional document entitled ""Table 1" which included all of the capital project line items in Fund 322 and their respective estimated 09/30/23 canyforwards and FY24 budget amounts, which was added to the record. He reviewed the FY24 budget funds allocated to each project. Ms. McLaughlin questioned who would be funding any potential plantings for the replacement dune in Pelican Bay areas, which will be installed as part of the County FEMA project (April — June). Staff will discuss this issue with Dr. Dabees, our Coastal Engineer. Mr. Fogg suggested adding $500,000 to our Operations Building Replacement Project based on the current inflationary environment. Mr. Coleman suggested that the budget for our Phase 2 Sidewalk Project be increased by a portion of this $500,000, with a corresponding reduction in this suggested addition to the Operations Building Replacement Project. The committee was agreeable to this suggestion. Ms. McLaughlin asked for an update on the possibility of including solar panels as part of our Operations Building Project. Mr. Dorrill commented that staff will ask our engineer to provide an estimate on the cost of the installation of solar panels, as part of the project, as well as what the payback would be. He noted that if the solar panels were economically feasible, then this would be treated as a change order. We would also need to obtain an additional approval from the PBF Design Review Committee. Ms. Herrmann will discuss the feasibility of solar panels with the project's Project Manager. Mr. Fogg suggested that we look into both roof solar panels and farm solar panels. Mr. Coleman commented that the street light project in this fund relates only to the replacement of light fixtures. Mr. Fogg commented that since we have no planned lake bank projects in FY24, $1 million in the Lake Bank Project will be transferred to the Phase 2 Sidewalk Project. Mr. Fogg suggested that the carryover of $180,000 in debt service should be sufficient for FY24. Mr. Coleman commented that so far we have spent $1.4 million on our Phase 2 Sidewalk Project, and that we will be adding an additional $1.3 million in budget funds to this project in FY24. The total Quality Enterprises contract for the sidewalk project is $6.7 million. Mr. Coleman noted that the QE contract allows for liquidated damages if the project is not completed on time. Mr. Coleman commented that $155,000 FY24 budget funds will be added to Clam Bay Fund 320, and that each year we receive an additional contribution from the County for Clam Bay expenses of $150,0000. Mr. Coleman commented that in FY23, we have spent approximately $700,000 for Hurricane Ian related expenses. However, we expect to be reimbursed from FEMA and insurance for most of these expenses, at some time in the future. Mr. Fogg commented on our Fund 778 Pelican Bay Lighting which is funded via ad valorem taxes; the tax rate of .0857 will stay the same in FY24 as in prior years. Mr. Fogg noted that this budget includes a 17% increase in personal services. Mr. Coleman commented that this line item includes salaries as well as other salary related expenses such as retirement and health insurance. Mr. Fogg provided documents entitled, "Fund Center Expenditure Budget Comparison Grouped by Account Minor, Division" for Fund 778 and Fund 109 which were added to the record. 2 Pelican Bay Services Division Budget Committee Meeting April 6, 2023 Mr. Fogg commented that Fund 109 includes a 15% increase in personnel services. Mr. Dorrill commented that staff will reach out to Deputy County Manager Ed Finn to provide an explanation/breakdown of this increase, prior to next week's PBSD Board meeting (for discussion at the board meeting). IIe commented that there are additional salary related line items such as "reserve for salary adjustment" which also need an explanation. Mr. Fogg reviewed a number of line items within Fund 109's proposed budget. The proposed FY24 budget for operating expenses is approximately 2.5% higher than our FY23 budget. Mr. Coleman commented that irrigation expense was the only line item in Fund 109 which was significantly adversely affected by Hurricane Ian in FY23. Irrigation system repair and replacement is not FEMA reimbursable. TARGET FY24 PBSD ASSESSMENT Mr. Fogg commented that the financial documents provided and discussed in today's meeting result in a proposed FY24 assessment of approximately $940/ERU, which is an increase of approximately 7.1% from the FY23 assessment. The total assessment of $940/ERU is comprised of $260 in capital and $680 in operating expenses. Last year's assessment of $873 was comprised of $233 in capital and $640 in operating expenses. The committee was in agreement with this proposed assessment. The meeting was adiourned at 3 Michael Fogg, ha' a Minutes approved LXI as presented OR" as amended ON 7/to date G�