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BCC Minutes 06/14/2000 B (Budget Workshop)June ~4,2000 TRANSCRIPT OF THE BUDGET WORKSHOP OF THE BOARD OF COUNTY COMMISSIONERS Naples, Florida, June 14, 2000 LET IT BE REMEMBERED, that the Board of County Commissioners, in and for the County of Collier, and also acting as the Board of Zoning Appeals and as the governing board(s) of such special districts as have been created according to law and having conducted business herein, met on this date at 9:00 a.m. in SPECIAL SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Timothy J. Constantine Barbara B. Berry James D. Carter Pamela S. Mac'Kie ALSO PRESENT: Tom Olliff, County Manager David Weigel, County Attorney Page I COLLIER COUNTY GOVERNMENT BOARD OF COUNTY COMMISSIONERS FY 2001 BUDGET WORKSHOP SCHED~E (REVISED) Wednesday, June 14, 2000 - 9:00 a.m. General Overview Ad Valorem Tax Implications Debt Service Funds (200's) Trust Funds (600's) MSTD General Fund (111) Special Revenue Funds (I00's) Enterprise Funds (400's) Internal Service Funds (500's) Capital Funds (300's) Friday, June 16, 2000 - 9:00 a.m- General Fund (001) Overview General Fund Operating Divisions: Courts & Related Agencies BCC County Attorney Management Offices Support Services Emergency Services Public Services Community Development/Environmental Services Public Work~ Airport Authority Operations Review of General Fund Supported Capital Projects C0nsfimtional Officers: Property Appraiser Supervisor of Elections Clerk of Courts Sheriffs Office June 14,2000 CHAIRMAN CONSTANTINE: Hi, and welcome to budget season. It's June 14th, we are here for the purpose of reviewing the proposed budget. Item #8G1 - Continued from June 13, 2000 BCC Meeting PRESENTATION OF ORGANIZATIONAL OVERVIEW REPORT Mr. Olliff, we're going to do a little bit of leftover information from yesterday first; is that right? MR. OLLIFF: We are. And it ties in well, because in preparation for this budget review, I thought it would be helpful to provide the board with what I would consider an overview report of some of the significant policy level type information from the organization. And what follows will be a power point presentation, that's sort of a snapshot, if you will, of the organization as it stands today. I'll tell you, internally we've been calling this is a vital signs report. And we liken it to your trip to the doctor for an annual physical. The doctor doesn't have to open a patient up in order to tell the general health of the patient. And likewise, I think from a board's perspective, there ought to be some key statistics and numbers, indices, that you can look at to tell from an overall perspective how is the organization and what do we need to tweak here and there. Unfortunately, unlike a lot of private companies where you have, you know, price to earnings ratios or liabilities to asset type ratios that are industry standards, we don't have those, for the most part, in general government. But what we're trying to do in this first-cut effort is provide you with some baseline statistics. I will tell you that we will build on this and will improve on it as we go along, but we want to be able to develop some trend and some comparative information for you, present this to you two or three times during the course of the year to just give you an overall feel about how Collier County government is. And with that, I'll turn it over to Beth, who will start off with the presentation. MS. WALSH: Good morning, Commissioners. The first slide that we have is from the community development -- Page 2 June 14,2000 CHAIRMAN CONSTANTINE: For the record, of course, you would be? MS. WALSH: Oh, I'm sorry, Beth Walsh, assistant to the county manager. The first slide is from the community development division, and it's from the building and review and permitting department. And what we have depicted here is the construction value of permits issued to the last three fiscal years. I'd like to point out that the information is not overlaid, it's stacked one on top of the other so you can view the trends. So I don't mean to show that fiscal year 2000 construction value is twice as much as fiscal year '98. But we do see that there's going to be a 12 percent estimated increase for fiscal year '99. The total construction value is estimated to be $1.2 billion. Next up we have the status of Golf Course Road impact fees. The pie represents $2.3 million that's due, as identified in the clerk's audit report. As you can see, about 66 percent of the fees have been collected. We have about $663,000 outstanding. COMMISSIONER MAC'KIE: What's the progress, or what -- what -- how are we working on collecting those? What's the plan? MR. OLLIFF: In a lot of cases, I think we're working with the attorney's office on a case-by-case basis. We have to go through each one of those, and from a timing perspective, based on what the board's direction was, determine what we can collect, go out with -- and send bills then to try and collect, in some cases. I will tell you that some of the developers have paid in protest, requesting alternative impact fee calculations, which we are going back to the ordinance with the attorney's office to determine whether or not they have a legal right to request that or not. CHAIRMAN CONSTANTINE: In the future, just a request for both you and Mr. Weigel, perhaps the attorneys can talk to us before they talk to the Naples Daily News about their legal opinion on this or any other issue. Over the weekend I'm reading what their opinion is on it. COMMISSIONER MAC'KIE: My other question about this is, there were some large developers that comprised a great portion of this. Are there -- you know, is there one or two developers left Page 3 June 14,2000 who hasn't paid, or are there lots of smaller accounts? MR. OLLIFF: That, I don't know. I think Vince can give you a little better answer for that. MR. CAUTERO: Vince Cautero, for the record. There's approximately eight developers that we're dealing with. The largest one of course would be WCI and Grey Oaks. Grey Oaks is working with us right now to use a $700,000 credit towards other developments. And they may be able to do that pending a legal opinion. COMMISSIONER MAC'KIE: I see. MR. CAUTERO: So that 700,000 of that total would go away, but you would never see the money, because they wouldn't be able to get credits in the future. COMMISSIONER MAC'KIE: Gotcha. And WCI, what kind of a reaction are we getting from them? MR. CAUTERO: They want to file an alternative calculation, as well as Grey Oaks, and that's what we're working with legal right now. And legal has informed us that they have to go through a case-by-case and go through the correspondence files to determine if they're indeed allowed to do that. COMMISSIONER MAC'KIE: And so far, WCI and Grey Oaks have not paid under protest? MR. CAUTERO: Correct. CHAIRMAN CONSTANTINE: Don't you think somebody ought to come talk to the board about that before you work too long, since our direction was contrary to what you just said? MR. CAUTERO: Yes, I do. And I can tell you that we have been diligent in working with legal and asking legal to produce that information. CHAIRMAN CONSTANTINE: I will tell you, I'm boiling right now, because part of the way we get into this mess, a big chunk of this was paid without going to the board, as required by law. So now if you're going off and negotiating individual things because somebody at legal has told you that without coming back to the board -- MR. OLLIFF: Now let me stop you. We're not negotiating anything, okay? They have come in and have requested certain things from us. The attorney's office is trying to develop an opinion, and we will get with you before any final decisions are made on response to their request. Page 4 June 14,2000 MR. CAUTERO: To complement what Mr. Olliff said and not belabor the issue, legal has said that they want to look at them case by case. They have not rendered one opinion yet on who can come in and who cannot. CHAIRMAN CONSTANTINE: And Mr. Weigel, perhaps you need to come back, not now, but come back and talk to us about that, because that's contrary to what the direction of the board was. COMMISSIONER CARTER: And also in that, I think that we had identified or indicated, if they're not paying, there certainly should be some sort of interest being logged against this -- CHAIRMAN CONSTANTINE: Right. COMMISSIONER CARTER: -- like you would on any other -- MR. CAUTERO: That's part the research legal conducted. COMMISSIONER CARTER: Let us know on that because -- and otherwise, there's other people who just paid and did not fight the process. MR. OLLIFF: Part of the direction was interest and penalties. CHAIRMAN CONSTANTINE: If someone wants to file -- starting a new project right now, wants to file for alternative impact fees, do they pay nothing, or do they pay under protest and get refunded? MR. CAUTERO: They pay under protest. CHAIRMAN CONSTANTINE: So why then do these two developers think they don't have to pay anything in the meantime? MR. CAUTERO: I can't answer that. CHAIRMAN CONSTANTINE: Perhaps we can ask legal to immediately file something. That's just -- that's not okay. It's been a year or two years in some cases and they're saying well, tough, we're not going to give you any money. Great, let's stop all the permits out there. Let's take some action and do something other than hi-ho, hi-ho, let's try to work on it. MR. CAUTERO: We have done that on golf courses. We have not issued any new -- any additional permits on golf courses on those developers. We have taken that action. Land Development Code gives my staff and I the authority to do that. And I have filed code enforcement action against those two developers. Page 5 June 14, 2000 CHAIRMAN CONSTANTINE: I bet there's legal action we can do, too. But, I mean, let's not just stand around and hope it all works out. If -- I suspect they're going to be very aggressive. Well, they owe the public some money. We need to be every bit as aggressive. MR. CAUTERO: I only need one piece of information from legal and that is that they have the ability to come before you for an alternative calculation. If not, they will be in front of the Code Enforcement Board. CHAIRMAN CONSTANTINE: Whether they do or not, they can't wait until after the fact to pay anything. Even if they can apply for alternative impact fees, you just got done telling me, people pay up front under protest -- COMMISSIONER MAC'KIE: And then -- CHAIRMAN CONSTANTINE: -- and file for their alternative. MR. OLLIFF.' I agree. And let me go back. And Vince -- I believe the latest information I got as of late last week was the two large developers that we are talking about have actually paid under protest already. Now, I'll go back and confirm that for you and I'll get that to you in writing, but that's my impression. COMMISSIONER MAC'KIE: Well, let's find that out, because that's the critical piece of the pie. If they paid under protest -- CHAIRMAN CONSTANTINE: Am I mistaken, or were we just told otherwise? MR. OLLIFF: I think you were told otherwise. My impression from the information that I got from Phil Tindall late last week was that they have paid under protest. I'll get that confirmed for you. COMMISSIONER MAC'KIE: Maybe we could find that out before this meeting's over even. I'm very anxious to know that. COMMISSIONER CARTER: Because that would answer a lot of our questions. If they had paid under protest, then that's one thing. If they haven't, then that's a whole other issue. CHAIRMAN CONSTANTINE: If they have paid -- COMMISSIONER MAC'KIE: If they haven't, we need to be taking legal action. CHAIRMAN CONSTANTINE: And if they have paid, who owes that $663,000 that's looking at us on that pie chart? MR. CAUTERO: About six other developers. CHAIRMAN CONSTANTINE: Okay, which goes back to Page 6 June 14,2000 Commissioner Mac'Kie's original question, is this a bunch of other developers or are these a couple of big ones, and the answer before was? COMMISSIONER MAC'KIE: Couple big ones. MR. CAUTERO: It's about eight, but two of them are the larger ones. About six mid-level or smaller developers. COMMISSIONER MAC'KIE.' So obviously you can tell the board's really interested in a detailed report on who's paying, who's not paying, and what action we're taking to be as aggressive as possible. And frankly, I think what Commissioner Constantine is saying, and I join him in it, is I understand, you know, the lawyers have to tell us what's legal, and if we want to do something that's not legal, they have to tell us that. And that's their unfortunate position to be in, to tell their boss you can't do something you want to do. But we're saying we want to be aggressive, and if they have defenses, let them raise them. But let's bring whatever action we can bring, and then we'll defend ourselves. CHAIRMAN CONSTANTINE: Two things: It's not our job to defend them. But also, when you get that opinion, if it is in -- indicates anything in any way contrary to what the direction of the board was, which I think couldn't have been clearer, then we need to talk about it here before any further action is taken. COMMISSIONER CARTER: Absolutely. What we are saying is we want to see that 28 percent go away. We want it collected. COMMISSIONER MAC'KIE: We want interest. COMMISSIONER CARTER: And then you can go through -- with interest, if it's applicable, and just then take it through -- if they want to file an appeal and all that, fine, but we want the money in the bank. CHAIRMAN CONSTANTINE: So the question still isn't answered then. The 663,000, if there's eight developers or six developers or two developers, are they not paying but they're applying? Why aren't they paying? MR. CAUTERO: Those developers that have outstanding fees on golf courses have not paid due to the problems that we encountered that were uncovered in the audit. The only piece of information I need from legal is to tell me Page 7 June 14,2000 whether or not I have the ability to proceed with the Code Enforcement case or if they can come before you. If the opinion is that they can go before you, I will tell you that. That's the only thing I'm lacking. We have been aggressive. I have filed code enforcement action. And I will go and collect the interest, if legal tells me. I don't know what the exact amount of money is right now. I do know that we're working on it day by day. And some checks have come in, and some credits are being applied that we can do administratively. And you will get a snapshot of that as soon as I get that opinion from legal. I cannot move to that next step and implement your clear direction until legal gives me that opinion that I need. COMMISSIONER MAC'KIE: And here's the -- MR. CAUTERO: I know that upsets you, but I cannot move forward unless the lawyers tell me I can do so. CHAIRMAN CONSTANTINE: But again, if someone is applying for alternative fees, that does not give them the right to pay nothing in the meantime. COMMISSIONER MAC'KIE: So why can't we sue them today for failure to pay, pending a decision on whether or not they're entitled to an alternate calculation -- CHAIRMAN CONSTANTINE: And we're under the assumption they have all been notified that they owe "X" amount of money. MR. CAUTERO: They've all been notified. COMMISSIONER MAC'KIE: That's the question. If the alter -- even with -- because it sounds like you're doing everything we want you to do except maybe one other thing we want you to do while you wait for legal, is if the ordinance requires, pay the standard fee under protest, pending alternative. Then even if they're entitled to alternative, which we hope they're not, they should pay the base fee today. And if they don't, we don't need code enforcement action, we need to just sue them for not paying. MR. CAUTERO: You need a legal action, and I can't do that. COMMISSIONER MAC'KIE: I understand. So David, that's what we need. Does anybody disagree with that? CHAIRMAN CONSTANTINE: And while you said you're not issuing other permits on the golf course, I bet there's probably Page 8 June 14,2000 not a whole lot of activity on there. Frankly, if the same developer is asking for other permits and owes the county a bunch of money, I don't know why we can't put a hold on other activity they're doing. MR. CAUTERO: I will look into that, but I've been told that that's not legal. In the past, I've been told that's not legal. I will look into it again. MR. OLLIFF: Why don't we do this: Since I know that the level of interest is exceptionally high on the part of the board, we'll be providing you weekly written updates on where we are with this, okay? COMMISSIONER MAC'KIE: Good plan. MR. OLLIFF: Beth, if you'll move on. MS. WALSH: Next up we have pollution control and prevention, who's collected 14,000 pounds of hazardous waste in the first six months of this year. This is compared to the 7,000 pounds that they collected last year. The increase is due to five collection events this year, as opposed to three last year. COMMISSIONER MAC'KIE: That's excellent. MS. WALSH: The housing and urban improvement department has reported that they're projecting 1,600 units of affordable housing this year. COMMISSIONER MAC'KIE: Click. MS. WALSH: Oh, I'm sorry. COMMISSIONER BERRY: Beth, can I ask you a question? What happens to that hazardous waste? Where does it go? MR. OLLIFF: We take it to hazardous waste dump sites. The closest one that I'm familiar with is in South Alabama. COMMISSIONER BERRY: South Alabama? MR. OLLIFF: Yes, ma'am. COMMISSIONER MAC'KIE: Don't be taking any to Mississippi. MR. OLLIFF: I didn't say Mississippi. South Alabama. COMMISSIONER BERRY: It runs over into Mississippi. COMMISSIONER MAC'KIE: No, no, no, no. COMMISSIONER CARTER: Strike South Alabama for vacation. COMMISSIONER BERRY: Thank you. I didn't mean to interrupt you. But it just struck me. I mean, we collect it and where do they take it? So we pass it on to somebody else. Page 9 June 14,2000 MR. OLLIFF: And there are specially designed landfills to handle hazardous waste. COMMISSIONER MAC'KIE: That are permitted, big complicated -- talk about your landfill. COMMISSIONER BERRY: I bet that's an interesting place to live. COMMISSIONER MAC'KIE: Wait, go back to that one. I wanted to hear that and I really didn't understand the point. CHAIRMAN CONSTANTINE: It's going to be a long day. COMMISSIONER MAC'KIE: Sorry, guys. COMMISSIONER BERRY: It started out that way. COMMISSIONER MAC'KIE: But this is a really good side, if what we're seeing here is we're doubling the number of affordable housing units in two years? MS. WALSH: Yes. COMMISSIONER MAC'KIE: That's awesome. MR. OLLIFF: Yeah. We want you to know that there's some affordable housing being built in this community. And one of the things I think the board wanted us to be a little more aggressive about. And I think you can see the result of some of your incentives and some of your other actions. MS. WALSH: From the Planning Services Department, we see that the commercial square footage with an approved planned unit development is reducing as time goes on. I think this graph is one indicator of decreasing land availability for large master plan developments. COMMISSIONER CARTER: And along with that, we are running out of really commercial space, if I understand it correctly, commercial industrial space. Anyplace that -- MR. OLLIFF: I think industrial space, that's correct. I'm not so sure on the commercial side, but I do believe that -- COMMISSIONER CARTER: Well, let me rephrase it. Industrial, our inventory is getting very low. And I guess that leads to the question of what we will do in the future. Do we have other areas in the county that can be designated and designed industrial parks? Or commerce parks, I prefer to call them. MR. OLLIFF: I've been talking with Susan Paragus and I think your community development staff to schedule an economic development workshop in the first quarter of the next Page t0 June 14, 2000 fiscal year so that we can talk about that and some other issues, I think, in terms of just us having a consolidated plan for economic development in this county. COMMISSIONER MAC'KIE: included. MR. OLLIFF: Exactly. COMMISSIONER CARTER: Thank you. COMMISSIONER BERRY: But there is -- is this where you're talking about running out of commercial space? MR. OLLIFF: Industrial. COMMISSIONER CARTER: Really-- COMMISSIONER BERRY: Industrial. COMMISSIONER CARTER: -- commerce industrial, not commercial. COMMISSIONER BERRY: Industrial. No, no, I'm sorry. That was wrong. No, but industrial space? COMMISSIONER CARTER: Right. COMMISSIONER MAC'KIE: For the EDC types of-- COMMISSIONER BERRY: Well, yeah, I know, but I'm -- COMMISSIONER CARTER: Like the Shaw Aeros, and like -- COMMISSIONER BERRY: Oh, absolutely. I'm very familiar. But my question is, how is this -- this may certainly have an impact on the urban boundary-- COMMISSIONER MAC'KIE: Ugh. COMMISSIONER BERRY: -- when you start looking at these kinds of things. Well, Pam -- COMMISSIONER MAC'KIE: I hear you. COMMISSIONER BERRY: -- all you have to do is drive around the county and take a look. COMMISSIONER MAC'KIE: I hear you. I mean, there's not a lot of giant -- COMMISSIONER BERRY: I mean, when you got -- when you've got the percentage of land that you have already in government ownership, which is way over -- if you look at all of it, is way over 80 percent, and you're telling people that you can only build on "X" number of percentage, and at the same time you're crying about you need more of this and that, now, guys, there's only so much that's going to fit in that toothpaste tube, okay? COMMISSIONER CARTER: Right. Including availability of industrial Page 11 June 14,2000 COMMISSIONER MAC'KIE: Interesting. COMMISSIONER CARTER: Well, I'm sure Dover/Kohl will have an input on that, too. CHAIRMAN CONSTANTINE: I'm going to make the following request as we go through the rest of this item. If you have questions or comments, why don't you jot them down and we'll do them all at the end, instead of slide by slide by slide. COMMISSIONER CARTER: Okay, Mr. Chairman. I understand your message. MR. OLLIFF: Okay. Beth? MS. WALSH: Next up is the support services division. The information technology has experienced a lot of growth since their inception in 1995. Here we see that in 1995, three IT staff supported six applications. In the year 2000 it's nine IT staff supporting 38 applications. The same for work stations. In 1995, four members supported 315 work stations, which was a ratio of I to 78. Currently in fiscal year 2000, six staff members support 625 work stations, which is a ratio of 1 to 104, while the industry standard is actually I to 75. Emergency services has experienced a growth in their EMS 9-1-1 calls, averaging about 9 percent last year, and they're estimating about 9.1 percent increase this year. This pie chart is an analysis of the turnover by job type in the human resources department. We can see that the largest pie piece is the professional and technical fields, at 39.5 percent. MR. OLLIFF: That helps to point out, I think, the argument that we were making that a lot of the engineering information technology type positions are where our turnover problems were, and I think you've made some steps to fix that with part of the pay plan adjustments, which will take effect in October. MS. WALSH: The real property department performed 207 land transactions this year in the first six months, as compared to 101 land transactions last year at the same time. Land transactions is defined as road, utility easement, parkland purchase. Next up we have some of the current capital projects that are going on through the facility's management department. First is the sheriff's operations building. It's estimated completion date is November this year. Page 12 June14,2000 MR. OLLIFF: That's the on-campus building you see when you drive to work every day. MS. WALSH: And here's a during and after slide of the Building A demolition project. COMMISSIONER MAC'KIE: Roll out that grass. That's amazing. MS. WALSH: Next up is Domestic Animal Services. The project's well underway. A lot of the buildings are covered, and the estimated completion date for that is November as well of this year. Next is EMS Station No. 17. It's estimated to begin on June 30th, with a completion date of November of 2001. And we have the Golden Gate government complex, which will have offices for the tax collector and property appraiser. This project started at the beginning of June and is in the permitting process. MR. OLLIFF: This is, Commissioner Constantine, as he's referred to as the Dulles Airport. COMMISSIONER BERRY: Is this the design for this building? MR. OLLIFF: That is the design that the architect, Victor Latavish, has come up with and worked with the advisory board in Golden Gate, who apparently is okay. COMMISSIONER BERRY: Did we okay this? CARTER: Yes. I mean, we approved the COMMISSIONER project. COMMISSIONER understand that, Jim. BERRY: Oh, I know the project. I But I'm -- did we approve the architecture? COMMISSIONER MAC'KIE: We don't generally look at the architecture as a board. MR. OLLIFF: You don't generally look at the architecture. This is one of those more community design kind of projects. I can check-- COMMISSIONER BERRY: Okay, well, then don't blame the Board of County Commissioners. COMMISSIONER MAC'KIE: Who -- who approved -- did the community like it? MR. OLLIFF: Yes. We've run this through a number of different community advisory boards, and while there was some discussion, they have approved it. COMMISSIONER BERRY: Looks like an air scoop on a car. Page 13 June 14,2000 COMMISSIONER MAC'KIE: Yeah, that's what it looks like. COMMISSIONER CARTER: Give the folks what they want. COMMISSIONER BERRY: I guess the beauty is in the eye of the beholder. CHAIRMAN CONSTANTINE: It said on the slide, but when is that scheduled for groundbreaking? COMMISSIONER MAC'KIE: 30 days, completion in November. Skip Camp. CHAIRMAN CONSTANTINE: November 20th? MS. WALSH: Okay, from the Risk Management Department, there's a graph showing the health insurance claims incurred from the last five fiscal years. I know you've seen this information before, but we feel that it's important enough to bring it back to review again. This is a graph, the annual cost of health claims. And as you can see, every year for the past four fiscal years, costs continue to climb. MR. OLLIFF: I think what we're trying to tell you there is that while the number of claims don't change dramatically, the cost that we are experiencing does. And that's just attributable to the rising cost of healthcare at 15 to 20 percent a year. And there's not much that we can do about that, but we just want you to keep that in the back of your mind as one of those expense items. MS. WALSH: As you can see from the next graph, this depicts the actual dollar amount of the average cost for health claims. You can see that it's risen every year. The annual claims cost per employee this year is at 3,900 -- I'm sorry, last year, $3,965 per employee. Two year's worth of data on the number of prescriptions filled. As you can see, those costs -- oh, I'm sorry, those number of prescriptions is rising as well, and the cost of the prescriptions is rising. Hopefully, as we continue to present this report, we'll have more data available. MR. OLLIFF: A lot of that is blood pressure medication. MS. WALSH: Thank you. COMMISSIONER MAC'KIE: We were thinking maybe some mental health issues, but-- COMMISSIONER BERRY: We think we can account for that. Page 14 June t4,2000 COMMISSIONER MAC'KIE: And we understand why. MR. DUNNUCK: Good morning, Commissioners. For the record, John Dunnuck, the other assistant to the county manager. I'm going to take you through some of the finance and then some of the other capital projects and finish it up with Mike talking about transportation. Impact fees. Year to date we're at a 35 percent increase from last year, in 2000. Some of that's attributed to the increased construction, and the other part of it is we've raised impact fees this year. That comes out to about 22,154,000, year to date. Grant revenue. This is actual grant revenue received so far. 1.2 million was in -- you can see the trend. In '98, we had 1.2 million. '99 dipped a little bit. It's up again this year so far. Gas and sales tax revenues. This is -- this kind of shows you that we don't -- it's not consistent how you collect it month by month. You can see that in fiscal year '98, at a six-month snapshot, we'd only collected 36 percent. Fiscal year '99, we're up to 43 percent. And of our budget amount this year, we're up about 45 percent. COMMISSIONER MAC'KIE: So the point of that is just to tell us that the money comes in but at an unreliable schedule? MR. SMYKOWSKI: Exactly. COMMISSIONER MAC'KIE: Okay. MR. SMYKOWSKI: We receive monthly disbursements from the state and sometimes they vary. If something came in late, it may be remitted to the county in the following month, so the year to dates don't always flow consistently from year to year. MR. DUNNUCK: Debt service. This is one really worth looking at. We only run about a 3 percent debt service, which is really outstanding. I think in future analyses, we might even show what other counties run to show that comparison. This is another interesting slide to show. This is TDC revenue. You can see in '95 through '97, you can start seeing a nice upward trend. But through '98 through 2000, at six-month levels, we've really leveled off. So the revenues really aren't being produced; are growing at the rate of the county at this point in time. COMMISSIONER MAC'KIE: And certainly not at the rate of Page t5 June 14,2000 the number of hotel rooms, because we're building hotels by the day. MR. OLLIFF: It will be interesting to see over the course of the next couple of years, because you're right, there have been a couple of large hotels come online, with the new Ritz-Carlton on Vanderbilt. COMMISSIONER BERRY: It depends on what their rates are and then the tax based on that. COMMISSIONER MAC'KIE: They ain't cheap though. COMMISSIONER BERRY: Of course, you've got to have -- well, of course they're not cheap. And that's good. MR. DUNNUCK: I'm going to run through some capital projects. Water utilities first. This graph shows that the water department expansion is driven specifically by percentage of use, and they monitor it on a monthly basis. And when they hit an 80 percent threshold, then we have to go into -- automatically by state statute into the design of a new future site. As you can see over the period of this last few months, February and March, we did break that threshold. So we're currently in the design of a future site at the south water treatment plant. COMMISSIONER MAC'KIE: Wouldn't it be nice if roads were the same way, we get to 80 percent of capacity and we're required to build more. MR. DUNNUCK: You can see over on the right-hand side, I've kind of brought up a little graph here, shows where it will be located. Circle there. And right now it's under -- you know, they're scheduling it for design this summer with completion December of 2002. It will be a $30 million project, and it will provide service -- right now it's to provide service out to about 2010. But we're in the process of doing an update of our master plan, and that figure might end up moving up, depending upon the growth. COMMISSIONER CARTER: Where will we be at the north plant? MR. DUNNUCK: I believe -- I couldn't answer that question right now. MR. OLLIFF: We just recently completed an expansion of the north plant, so I think the south plant is the next one online. Page16 June 14,2000 So I think there is several million gallon a day capacity availability at the north plant. MR. FINN: If I may, Edward Finn, utilities administrator. The water system is actually connected together, so it's an overall plant capacity, not one plant versus another. COMMISSIONER CARTER: Thank you. COMMISSIONER MAC'KIE: Great graphics. MR. DUNNUCK: Wastewater reclamation. We're in a similar situation. Right now we -- we do it on a three-month basis, and it's a 75 percent threshold. And you can see January, February, March and April we exceeded that 75 percent. So we began construction in the south district -- or began design. And that would be the south wastewater plant expansion. It's under design. It's a $35 million project. The completion is expected in 2003. And it should double the capacity of the district. COMMISSIONER MAC'KIE: That will do us for awhile. MR. DUNNUCK: Solid waste disposal. Currently right now we process 237,000 tons. That's up from 221 in 1999, 189 in 1998. That's about a 12 percent average increase. At this time the useful life for the Naples is October of 2004, and Immokalee is March of 2003. What we can take from this graph or from this depiction is the fact that it takes us about two years, if we're going to do something, as far as if we're going to expand the existing facility or find a new location, depending on which way the board wants to go. You know, if they want to expand Cell No. I to make it Cell No. 7 and put the lining in. So that that will be coming up within the next year and become a very important issue, which I think the board's already aware of. Recycled materials. You can see we've been -- the increase of recycled materials has jumped from '98 through 2000, is leveling off a little bit. Right now we recycle about 25 percent of material received. The state goal is around 30 percent. Very few counties have met the state goal, from my understanding. But we're trying to get there. Public services. Capital projects. Obviously you're aware of Rover Run. It's been a very successful project. And I think the board did a very good job getting its bang for the buck. In that case -- COMMISSIONER MAC'KIE: It's Luke. Paget7 June 14,2000 MR. DUNNUCK: -- the picture speaks for itself. Clam Pass Boardwalk. Construction began around June 1st. Completion scheduled for September 1st, with a full use of the parking lot available on December 1st, 2000, in time for season. They needed a little bit of a staging area, so we've granted part of the parking lot. Just to let you know, the staff has placed a park ranger at the site on the weekends to allow people to direct them to other locations in the area, you know, so the people -- you know, as a kind of public service type. COMMISSIONER MAC'KIE: We had hoped to try to work with I think it was WCI, who's doing the Seagate development, and we were going to get some increased parking spaces and see if maybe we could get some additional parking at that location. MR. OLLIFF: We did. That wasn't possible. But I will tell you that from the statistics that we've kept, the Seagate lot has never filled up since we've started the construction project, even with the existing number of spaces that were there. COMMISSIONER MAC'KIE: I've been there and had to turn around and come home. MR. OLLIFF: Oh, did you? COMMISSIONER MAC'KIE: occasion. CHAIRMAN CONSTANTINE: a better phrase. I have, on more than one Almost never, I guess would be MR. OLLIFF: Commissioner Mac'Kie went. COMMISSIONER MAC'KIE: around twice. COMMISSIONER CARTER: head. COMMISSIONER MAC'KIE: when it fills up. Almost never have been full, except for when Because I have had to turn There's a little cloud over her Check at sunset. I mean, that's MR. DUNNUCK: With that, I'm going to turn over the transportation projects to Mike McNees. MR. McNEES: Thank you. Good morning, I'm Mike McNees, the other guy from the county manager's office. Just two weeks short of three months ago we met in this room to address a concern, I think largely driven by a perception that we were having increasing traffic congestion problems and Page18 June 14,2000 the county, quote, wasn't doing anything about it. I stand here very proudly today representing your new transportation services division to tell you, one, not only was that perception probably a little bit overblown, but even the worst cynic in Collier County could not continue to make the case today that nothing's being done. John? And I thank John for doing a great job with the slides you're about to see to iljustrate what I'm talking about. Major road projects that are currently under construction in Collier County. We are building one of the middle segments of Livingston Road, a $9 million four-laning project that is underway, under construction, from Radio Road to Golden Gate Parkway, is on schedule with a completion date of December, 2000. John, if you've got that picture. You see that strip right down the middle, that is turned dirt. That is construction underway. You don't have to take my word for it, there's a picture of it. The next slide, an $8 million project, Golden Gate Parkway to Pine Ridge Road segment of Livingston Road is being cleared as we speak. The construction contract will act for the hard construction of the road, will begin in December of 2000, with a completion date one year later. We're not waiting for the -- for the construction contract to be -- John, if you'll show that picture. You don't have to take my word for it. We're turning dirt, we're clearing that right-of-way as we speak. So that work can be done, that road will be ready to be built. COMMISSIONER BERRY: Four lanes? MR. McNEES.' Yes, ma'am, four lanes. We don't do two lanes anymore. COMMISSIONER BERRY: I know. But I keep hearing this two-lane roadway that we're going to build from Golden Gate Parkway to Pine Ridge, and I just want you to say it, Mike. MR. McNEES: No, ma'am. They don't do that anymore. MR. OLLIFF.' As a policy for major arterial roadways, Collier County does not build two-lane roads. COMMISSIONER BERRY: Okay. That's all. MR. McNEES: The next project, Livingston Road from Pine Ridge to Immokalee Road. We are working hard on the Page19 June 14,2000 right-of-way acquisition. The design is more than halfway completed on this one. Construction on this segment doesn't begin until 2002, 2003, but we are working hard on that design. This is a $10 million project. The other thing I wanted to say in the beginning was you all were accused of raising a bunch of money and sitting on it. Well, let me tell you, we're not sitting on it anymore. I've already spent 30 million of it in the last 30 seconds just telling you about these projects. COMMISSIONER BERRY: You just go, boy. MR. McNEES: The next segment is the only two-lane segment under construction, because it's actually being constructed by a developer as we speak. They need the road. They're doing the two lanes. You're going to see, I believe, on your next agenda, a contract amendment to -- for our portion to design into a four-lane road. So we're going to move that one forward as quickly as we can. But the two-lane road is under construction. Completion time, I'm not sure I can tell you. Late summer, I believe, of this year. That two-lane completion. John, if you want to show that picture. We'll be doing the four-lane expansion, completed within 2002. There you go. There it is. That's a picture. That's turned dirt. That's construction underway. That's not my promise. The next project, Golden Gate Boulevard. Phase I of Golden Gate Boulevard, an $18 million project. Construction is underway for the segment from 951 to Big Cypress, I believe. MR. DUNNUCK: Yes. MR. McNEES: John, if you want to show the Phase II, which is designed at this point. And we're acquiring the right-of-way for Phase II, which is Big Cypress to Wilson. The next picture, John. $18 million construction project. That is turned dirt. That is construction underway. That's not my promise. You can see the picture. COMMISSIONER MAC'KIE: Is that a house? CHAIRMAN CONSTANTINE: Yeah. COMMISSIONER MAC'KIE: What is that? It's a house. MR. McNEES: The last project I'm going to tell you about is the Immokalee Road, the four-laning of Immokalee Road from Page 20 June 14,2000 1-75 to Collier Boulevard. That's construction underway. Estimated completion date of April, 2000 (sic). This is one where we were able to get in there in time and we have a significant incentive with a contractor if we can complete early ahead of April, 2001. If we can shave a couple months off that project, that will help us for that season, of the 2001 season. And there's another picture. That's actual construction underway. Another $9 million project. In the last two minutes, you just spent $54 million worth of that money that you've been accused of sitting on. So I think it's very clear that we're not saving that money for our retirement. The other thing we promised you we could do were some short-term things regarding the improvements of some intersections to improve traffic flow. As I stand here today, I can tell you that additional turn lanes have been installed at the intersection of Shirley Street and Pine Ridge Road. COMMISSIONER MAC'KIE: We need them. MR. McNEES: That additional turn lanes have been installed and have been completed at the intersection of 951 and White Boulevard. That traffic signal and turn lane improvements have been completed at the intersection of Immokalee Road and Wilson. That the intersection of Shadowlawn and Davis, right around the corner from here, has had turn lane improvements already completed; the asphalt is on the ground. That at the intersection of Airport Road and Golden Gate Parkway, northbound dual turn lanes have been lengthened to allow for better stacking. That improvement has been completed. And at the intersection of Oil Well Road and Immokalee Road, the traffic signal and the turn lanes and some sidewalk improvements have been completed as we speak since your last workshop. My last editorial for the day is you're about to see a budget that's probably the most aggressive road building schedule you've ever seen. Your permission -- or your policy changes that you gave us three months ago to do two things: One is leverage your gas tax; two is to not use concurrency as a delay mechanism, but rather to build the roads as you need them. You gave us that policy direction. And you're going to see the result of that. My editorial is this: We're already beginning to hear it, and I know you're already beginning to hear it. Every road that we're Page 21 June 14,2000 building right now, someone is saying that either the construction is too noisy, the road is too close to their neighborhood, the road's not needed, the road's too narrow, the road's too wide, we've got the wrong corridor, the asphalt's too black, you name it, you're hearing it. And we're here to tell you, your staff's going to continue to work as hard as we can to please the residents and to make people satisfied with the design. But we can't please everyone. I say three words of horror story to you. Golden Gate Boulevard, where you had severely divided residents, delayed that project probably the better part of two years. And I'm going to tell you, we may have the black hats on for the next two or three years, but your staff is going to be in a position consistently to recommend to you, keep these projects moving. Let us do the best that we can, but that's all that we can do. We can't please everyone. So my tip is, if you're in Collier County and you're out in the woods and you see a bulldozer coming, get out of the way, because we're probably building a road. COMMISSIONER BERRY: Go just do it. Build as many of them as you can come up with. MR. OLLIFF: In closing, I promised John he could get a slide of his dog in there, so that's Mr. Dunnuck's family dog. COMMISSIONER MAC'KIE: What's your dog's name? MR. DUNNUCK: Pippin. COMMISSIONER MAC'KIE: Pippin and Luke. The official county dog. COMMISSIONER BERRY: That's a nice-looking dog. MR. OLLIFF: I need to thank my office staff for putting together the presentation. But we would like to come back to you two or three times again, like I said, in the middle of the year and just give you some updates about where we are. There is no decision required as a result of this report, but we would like for you to review this. We're going to give you hard copies of it later in the day. Then if there's some other pieces of information that you think are important for us to include, let us know that. We are working with Jim Mitchell over in finance, who will be including, I think, some little better financial information for you, Page 22 June 14, 2000 And I need to give Mike a lot of credit. I think he's really kept us on board in terms of the transportation projects. Their new motto in transportation is they are kicking asphalt and taking names down there. And he is really trying to stay on an aggressive schedule. And schedule is the most important priority that we've got. COMMISSIONER MAC'KIE: I just have to say, this -- I feel for the first time since I've been on the board now, almost six years, that here's the beginning of some information to help me be a policy maker. Thank you, thank you, thank you. COMMISSIONER BERRY: That was a great presentation. COMMISSIONER CARTER: Great presentation, I agree. COMMISSIONER BERRY: I really enjoyed that. Thank you. I think it's good for the public to see this. CHAIRMAN CONSTANTINE: We're just going to take about a five-minute break for the court reporter. And to get squared away on the budget, I would like to see Mr. Weigel and Mr. Olliff in my office. (Recess.) BUDGET WORKSHOP SESSION CHAIRMAN CONSTANTINE: Hi, we're back. Mr. Olliff, let's move on to the budget. MR. OLLIFF: I'll turn this part of the presentation over to Mike Smykowski. MR. SMYKOWSKI: Good morning. For the record, Michael Smykowski, budget director. Before we get started, what I'd like to do is just introduce my staff. We have some new faces. I'd like for the board to be familiar with who they are. Let me start, Gary Vincent. COMMISSIONER MAC'KIE: Old face. MR. SMYKOWSKI: Old face. Senior budget analyst. Some of the new faces, Wynonna Stone. COMMISSIONER BERRY: Familiar face. COMMISSIONER MAC'KIE: Familiar face, Gary. I didn't mean it like that. COMMISSIONER BERRY: Old face. CHAIRMAN CONSTANTINE: Wait, we've got to go back again. Page 23 June 14,2000 MR. SMYKOWSKI: Wynonna gets introduced again. Christopher Dublis, Tony Gambino and Randy Greenwald. And last but not least, I want Pat Lehnhard to come up. Pat is responsible for doing all the copying and putting the books together. (Applause.) MR. SMYKOWSKI: And I wanted to be sure and recognize her, because she is a superstar for our office and we're very pleased to have her. CHAIRMAN CONSTANTINE: Copymeister. COMMISSIONER BERRY: Copymeister, yep. MR. SMYKOWSKI: I'd like to welcome you first of all to the fiscal year 2001 budget workshops. The presentation format will be similar to last year, with the board in a board of directors capacity, with an exception basis of review presented on a fund basis. That seemed to work better for the board from a clarity and understanding point. The books are arranged. A summary books include summaries of tax rates, the proposed tax dollars for the upcoming year, as well as the revised preliminary property values we got from the property appraiser as of June 1. We will get final certified values as of July 1. They include summary data for the general fund, divisional and agency summaries for the general fund, summary by major fund type, and summaries of proposed expanded service requests. Detail books include program summary information, performance measures, individual fund or departmental spreadsheets, and budget highlights. In terms of the financial budget overview, personal service budgets reflect the pay plan implementation that the board had discussed during budget policy. We used again the 4 percent attrition rate. $3 million in gas taxes, pursuant to our budget policy discussion going to road and bridge maintenance activities. We feel that's a more appropriate use of gas tax, as well as reducing general fund support of road and bridge maintenance activities. COMMISSIONER MAC'KIE: What percentage of gas taxes is that three million? I mean, half? More than half? MR. SMYKOWSKI: No, maybe 20 percent, but I'll get you a Page 24 June 14,2000 definite number. And the budget also reflects the decrease that the board recently approved in county water sewer rates for the upcoming year. Overall, there's 2,751 positions in the county. As you would expect, the county manager's agency is the largest employer, followed by the sheriff. General fund, which we'll talk about on Friday, provides government services to all county residents, inclusive of the City of Naples, Everglades City and the City of Marco Island, with the primary funding source being ad valorem taxes, as demonstrated in the pie chart here. The MSTD, or unincorporated area general fund, provides municipal type services to the residents in the unincorporated areas. Obviously Collier County has a large unincorporated area population. This would exclude the City of Naples, Everglades City and City of Marco Island. We'll discuss this a little later this morning. Also funded primarily by ad valorem taxes. Major revenue sources, as I just indicated, primarily ad valorem taxes. Other major operating revenues include cable fees and transfers. Examples of services provided to the incorporated area include code enforcement, long-range planning, and parks and recreation. The tax impact of the unincorporated area budget as proposed is a -- excuse me, millage $84.67 proposed. The adopted was $52.03. Now, that may seem like a large increase, but one of the major recommendations and changes in this year's budget includes the -- we're recommending consolidation of the three road MSTD's. And that's for a number of reasons. One, there actually used to be four, which coincided with the County Commission districts, outside the boundaries of the City of Naples. Over time one district was consolidated, so there are only three. And due to annexation and et cetera, they no longer correspond to commission districts. And frankly, the largest component of expenditure within these funds is for median beautification and maintenance. And we really see that as something that is more of a regional issue as opposed to a localized issue. So we feel beautification efforts are benefitting the unincorporated area as a whole, as opposed to these very small pockets with widely Page 25 June 14,2000 varying millage rates. COMMISSIONER MAC'KIE: But that was a specifically adopted budget policy by the board, wasn't it? I mean, when would be the appropriate time to ask questions about that? Is it now or is it later? MR. SMYKOWSKI: We'll actually review the budget and -- shortly on those road MSTD's and the unincorporated area. At that point it would be the time. So after you net out the average of the road MSTD tax, it's only a slight increase over a dollar, $1.60 or thereabouts. So it's a relatively small impact, and there are a number of expanded service requests as well in code enforcement, et cetera, benefitting. And we'll have an opportunity to walk through those. Special revenue funds that we'll talk about today include fee supported -- the community development fund, which is supported primarily by building permits and development fees, special taxes, such as TDC, ad valorem taxes, fines and surcharges. Therefore, specific purposes, such as community development, regulation of the building industry in town, tourist development obviously is very localized. And we have a number of special purpose taxing districts: The road maintenance MSTD's, beautification MSTD's, fire control districts, Golden Gate Community Center, and street lighting MSTU's. Restricted use funds that we'll also talk about today in summary are things like ADA compliance, the 800 megahertz, the enhanced 9-1-1 system. Internal service funds used to account for operations providing services to other county departments which operate on a break-even basis. Following the county manager's reorganization, there would be five remaining: Are three self-insurance funds, property and casualty, group health, and workers' compensation, our fleet management fund and our motor pool capital recovery fund. Enterprise funds operate like a private business. They include utilities, the county water and sewer district, the Goodland water district, the Marco district. The board had given policy direction regarding the transfer of that operation to the City of Marco Island. Solid Waste Management. On the revenue side, it's primarily user fee funded, including Page 26 June 14,2000 water and sewer fees, solid waste tipping fees and mandatory garbage collection fees. Other revenues include utility assessments, solid waste franchise fees, and recycling grants. Enterprise funds on the expense side primarily is water and wastewater operations, utilities debt service, utilities capital improvements, solid waste collection and disposal, and the recycling program. Enterprise funds, this graph just shows changes in major fee revenues. It's interesting to note that for both water and sewer, they reflect decreases. And that's a function of the board approved rate decreases that was approved six, eight weeks ago. So the budget actually reflects less revenue in those -- in those funds. Which intuitively doesn't make sense, but a function -- there were pretty major rate reductions, and the budgets reflect the impact of those rate reductions. Capital improvement program includes growth-related capital improvements in the CIE and non-CIE projects per department need. Typically replacements, renovation. 200 -- almost $206 million. As you would expect, roads are the dominant area, as Mike McNees alluded to earlier. We're recommending an aggressive road building campaign. The next area is water plant construction. As John indicated in the opening presentation, we had hit that 80 percent threshold, necessitating construction of a new facility as well. COMMISSIONER MAC'KIE: At what point are we going to talk about the stormwater is 1.3 percent of that? Is that a policy decision that we'll have a chance to discuss later? MR. SMYKOWSKI: Yes, we will. On Friday -- actually, from an agenda standpoint, just so it's clear today, what we will cover on our fund base, we're essentially covering all the non-general fund items today and then Friday's discussion would be limited to all the agencies that are either directly in the general fund or receive general fund support via transfers, such as road and bridge, EMS, and capital projects that are funded, of which stormwater is one of those. With that, I'll turn it over to Mr. Olliff. He has some opening remarks from his perspective as county manager, just priorities for the budget. MR. OLLIFF: Real quickly, I think Mike was giving you the overview about what the budget is. I wanted to try and indicate Page 27 June 14,2000 to you what I think from your policy direction and from my perspective what the highlights are. The budget proposed does not increase the millage rate. Even though the increase in assessed value and new construction was about 1.4 percent less than it was last year. So the increase was significantly smaller this year than it was last year. The budget attempts to address several suggestions that have been made in prior budget reviews, as I sat through them over the years, by the greater Naples Civic Association. In particular, we took a much harder look at carryforward revenues. As a result, the fiscal year '01 budget increase is your estimated carryforward amounts by $3,389,000, assuring that we're not levying taxes to fund programs or projects, and we have sufficient revenues on hand. COMMISSIONER MAC'KIE: That's great, Tom. MR. OLLIFF: On the other hand, the projections and assumptions that we've made I still believe leave the county in a position where reserves are adequate but not excessive. The primary reserve balance for which the board is generally concerned is the general fund reserve, which is budgeted to be $6,097,000. New tax revenues are generally not available until the second week of November. And the six-week expense estimate for that same period is approximately $22 million. So you do have to have some cash on hand in order to be able to start your fiscal year and carry forward your operations. And we believe your reserve established within your '01 budget is a reasonable figure. In addition, we believe that a reserve, which in this coming budget represents 5.3 of your general fund, given Southwest Florida's recent hurricane damage and also associated fire related issues. This is a great picture. I just wanted to show you this. This highlights the good work that they did as part of the recent fires in Collier County. This is what your fire districts do. That's the structure in the middle of what was a big blazing wall of fire, and they were able to save the single-family home. COMMISSIONER MAC'KIE: That's amazing. MR. OLLIFF: But given those kind of occurrences, we think that the reserve amount needs to be conservatively healthy. Page 28 June ~4,2000 COMMISSIONER CARTER: Why don't you send that to the newspaper so that they could do a picture on that to show how efficient we are in dealing with catastrophes. MR. OLLIFF: We have a number of pictures just like that, too, to show the other houses in the area. COMMISSIONER CARTER: I think they would like to cover that. I see they're in the back of the room. I'm sure that would make a very good story. MR. OLLIFF: To highlight some of the board's major policy priorities in the last two years, which have been transportation and stormwater. In addition, the budget puts $1.25 million towards a GIS system, the bulk of which is being accomplished by Abe Skinner, the property appraiser. However, your agency has now reached out and is making this project a joint coordinated effort with a cross-agency team, if you will. And we're working with him collectively. The budget reflects the organizational changes that were approved through a new transportation and public utilities division. The transportation engineering and administration side of the house has increased its staff from 15 to 31 in your proposed budget. COMMISSIONER MAC'KIE: Which side? MR. OLLIFF: The transportation engineering and administration side. Which I told you earlier there was a total of somewhere of between 12 and 15 total employees, including secretarial support to do your road construction projects. While we've also added crews dedicated to the maintenance of sidewalks, there is currently no crew available to do any sidewalk maintenance. And from our perspective, that is a liability issue for you. And as well a paving crew, which there's a misconception that we have a crew that can do paving work. And there is no paving crew within your road and bridge section, so we are adding a paving crew. Key change again being recommended in this budget will be the collapsing of the different road districts into the 111 Fund, and we'll cover that when we get to 111. To answer Commissioner Mac'Kie's question, the budget also provides an improved stormwater management department. After years of continuing, in my opinion, to chase progress towards major stormwater projects, with an administrative staff Page 29 June 14,2000 of only two people, four additional persons are being added to try and show some real progress to what we consider to be a real area of need in county government. Operationally, from what I could see, our organization was under-resourced in both information technology and human resources. These two internal service departments were elevated by the entire management staff as a budget priority. You've seen by the slides the increase and demand on the IT side. And while we're also dealing -- I want you to know, on the support side through IT, we're also dealing with the demand side. We've created a committee internally to review all requests for new software to make sure that there is a legitimate business reason and application for that so that we don't have to continue to enhance your IT staff to provide support for things that are unnecessary. We're also in the process of providing some increases to your HR staff, because it's one of the areas, frankly, I think that needs some additional resource. The budget provides the sheriff with funding to implement the pay plan changes that I think will help to address what were 130 vacancies in his agency. The budget also supports the tax collector's efforts to continue to extend his services out into the community with the Golden Gate satellite office. And we're also trying to work with him to support his efforts to provide additional driver's license services in some of his satellite offices as well. Finally, on the capital side, the funding for ad valorem supports -- supported capital projects continues to be an issue. There were $63.3 million in requests this year. And within the millage neutral budget, I had $8.95 million to work with. COMMISSIONER MAC'KIE: You have 50 million requested but not permitted. MR. OLLIFF: Right. COMMISSIONER CARTER: 63; is that right, Tom? MR. OLLIFF: $63 million in requests. And I had just under $9 million to work with. However, within this year's capital budget, we are able to recommend a million dollars in associated architectural work for the first building in the county space plan, which you see as the courthouse annex building there. It's tied into Building J, and Page 30 June 14,2000 would be located in the old -- COMMISSIONER MAC'KIE: Show us which one, John. MR. OLLIFF: -- the old footprint of Building A. It's the dark building in the middle of the campus, directly tied into I.. COMMISSIONER MAC'KIE: Oh, okay. MR. OLLIFF: I.-1. COMMISSIONER MAC'KIE: L-1 there. Gotcha. MR. OLLIFF: Right. That building is called the courthouse annex, designed to provide space for constitutional officers and court-related agencies, such as the state attorney's office, public defender and clerk of courts, to bring the clerk out of the leased space and allowing us to quit paying the lease payment for that. That building, which will require a new parking garage on this campus, has got an estimated cost of $29 million. And it's got to be a multi-year project for us to be able to pull that one off. A new EMS station is in this budget plan to meet both Growth Management Plan requirements and call volumes. It's located -- we tried to show you a picture there. That is the property just south of the entrance to Poinciana Elementary School. That's property donated by the Grey Oaks development as part of their original project development approval. That project is scheduled for construction this fiscal year. The budget also includes the construction for the new north regional library, which is going to be located on the old DAS property, if you're familiar with that, on Orange Blossom on U.S. -- I mean, on Airport Road. COMMISSIONER MAC'KIE'- The horse stables. MR. OLLIFF: Clearly, I think that-- CHAIRMAN CONSTANTINE: Are we just going to retrofit those buildings right there? MR. OLLIFF: Right, we've got some shelving on order that will fit in those buildings. As part of that building, there's also a materials collection. I had to throw this picture in. There's a materials collection of over $1 million associated with that new building project, and that's part of this budget as well. That construction project will commence immediately following the completion of the DAS project. And if you've not had a chance to see that construction out on Davis Boulevard, Page 31 June 14,2000 you need to swing by there. It's going very, very well, and I think will be a doubling of the size of the number of kennels that we have. In the budget is also $1.2 million to continue to provide airport enhancements. And while that's the amount of money that we're providing from the county budget standpoint, because of corresponding aviation grants, there's actually $3.9 million in construction planned through both the grant and the county contribution. Through boater improvement trust funds, boaters will receive a major new boat ramp and park project on the Goodland community. COMMISSIONER MAC'KIE: Now, what kind of funds? MR. OLLIFF: Boater improvement trust funds. COMMISSIONER MAC'KIE: Which comes from the state? MR. OLLIFF: They actually come from boater registration fees paid by local boaters. It goes to Tallahassee and is returned to Collier County. COMMISSIONER MAC'KIE: Do we get it all back? MR. OLLIFF: I think there's some administrative and handling charge on the Tallahassee side. Usually that's about 3 percent, if I remember right. COMMISSIONER MAC'KIE: But that's not bad. I think it's one of those that we get -- COMMISSIONER BERRY: Yeah. COMMISSIONER MAC'KIE: -- more back. MR. OLLIFF: This is one of those areas where you've had some public coming to you saying we pay this money, yet we don't really see any direct improvement as a result. So we're trying to tie a capital project directly to that funding source. That's the project on Goodland. In addition, the final phase of exotics removal from the county's existing park system is in your budget so that we can stand up and even though we're not required by code, we've gone above and beyond the code in removing all the exotics from your county parks. COMMISSIONER MAC'KIE: Does that mean like beaches with Australian pines? MR. OLLIFF: Unfortunately, from my perspective, yes. COMMISSIONER MAC'KIE: Unfortunately. When do we get Page 32 June 14,2000 to talk about that? I don't want you to dig out those Australian pines, if we don't need to. MR. OLLIFF: Frankly, from your beach park perspective, it's too late. COMMISSIONER MAC'KIE: And I'm the environmental whacko, but I don't. COMMISSIONER BERRY: I was going to say, here she is, folks. CHAIRMAN CONSTANTINE: She's the DEW. COMMISSIONER BERRY: And she doesn't want to take those trees down. COMMISSIONER MAC'KIE: Yeah, I'm the designated environmental whacko. I like those Australian pines at the beaches. MR. OLLIFF: Lastly, on the park side, your budget includes construction money for the new regional park on North Livingston Road. It also includes a major utility project in the way of an eight million gallon per day south water plant expansion. And then so you know, that we are walking into that project, understanding that from a design perspective, we're going to have to keep the community and surrounding neighborhood in mind from the very beginning and try and make that a public relations project as we move along. Transportation funding will be addressed separately, as you get to that. But the budget does provide the continued funding for major road improvement projects that you saw this morning, including Golden Gate Boulevard, Immokalee Road, Pine Ridge Road, North Airport Road, Goodlette Road and Livingston Road. So from my perspective, I think it's a budget that tries to address what I think were all of your priorities that we have heard from you, as well as what I think were some internal organizational issues that needed to be addressed. And we've done it all and tried to maintain a millage neutral budget for you. COMMISSIONER MAC'KIE: It sounds to me like the -- I mean, the biggest flag I heard waving there was that capital project requests may be underfunded. But other than that -- CHAIRMAN CONSTANTINE: Or over requested. COMMISSIONER MAC'KIE: Or over requested. I mean, somewhere in the middle. But $60 million in requests? Page 33 June 14,2000 MR. OLLIFF: $63 million in requests. And a lot of that is for -- were for future sheriff's substations. Some of that was the large number for this courthouse annex building as well. And that's just something that you need to keep in the back of your mind, that as this county grows and continues to grow older, the cost of capital maintenance and some of those things that are non-impact fee eligible, that number is going to continue to rise. COMMISSIONER MAC'KIE: We may need to be thinking about a designated source on a long-term basis for -- MR. OLLIFF: Well, some of that I want you to keep in your mind and tie it back to the graph that John showed you about the total indebtedness figure for this county as well. And for an operation of this size, I think there is a reasonable amount of debt to carry. I'm not sure that we've ever really looked at it from that perspective. COMMISSIONER CARTER: Yeah, I would like to look at that, Tom, because we do have very low debt. And I'm looking at a five-year capital program which -- you know, I always have said it had to be facilities, stormwater management and roads. And I would like to revisit particularly the facility side in a five-year plan, that we have to look out here and really anticipate and build what is necessary. MR. OLLIFF: Without any more delay, let's get into your budget. COMMISSIONER MAC'KIE: Imagine. MR. SMYKOWSKI: If you'd turn please in your general fund tab, we'll just look at Page B in your summary book, which reflects the proposed tax rates for fiscal year '01. Just to give you an overview, general fund reflects a slight millage decrease. We will talk about that in detail on Friday. Pollution control does reflect a slight increase. We do have some proposed expanded services in that area that are Growth Management Plan related. COMMISSIONER MAC'KIE: Great. MR. SMYKOWSKI: The next area identifies the three road MSTD's that we're recommending the collapse of. And then you see the corresponding increase on the unincorporated area general fund side, due in large part to moving all those median maintenance costs from the road MSTD's into the unincorporated area general fund. Page 34 June ~4,2000 We think from not only the from standpoint of medians being more of a regional benefit, it also just frankly simplifies the budget. You have three less taxing units, three less separate funds to operate, and that's kind of a direction we're headed. COMMISSIONER BERRY: How is that -- I'm not sure I'm understanding that. Then how do we fund that? I mean, how does that work? MR. SMYKOWSKI: We're funding it through -- right now, in the current year budget, we're funding that through ad valorem taxes in three localized taxing units -- COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: -- of the county. We're simply saying the benefits from median landscaping are a regional basis; therefore, we should tax for those on a regional basis in the unincorporated area general fund, and simply eliminate the road MSTD's. So what we're recommending is -- COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: -- transferring the residual cash in those funds to the unincorporated area and -- COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: -- then taxing on the regional basis for that. COMMISSIONER BERRY: Okay, I see. MR. SMYKOWSKI: Golden Gate Community Center reflects a tax increase, $16.70. But there is a proposed annex building replacement as part of the larger scope project that will be underway there shortly. And that's the reason for the large increase there. Frankly, the balance of the districts are things like fire districts which will levy an annual -- which levy a constant millage. In other words, in Ochopee they levy four mills, Isle of Capri levies a constant one mill, et cetera. The only one of the fire districts that does not do that is the Goodland Horr's Island. That's a service contract with the City of Marco Island. And as the value within those areas grows, the millage decreases accordingly. Within the median beautification areas, those also levied a constant millage. Bayshore, three mills. Radio Road, a half a mill. Lely Gulf, one mill -- one and a half mills, excuse me. Forest Lakes Roadway, one mill. Page 35 June 14,2000 So those are constant millages. The budgets are based in large part on the recommendations of the citizen advisory groups. It's also important to note within that area there's a couple of projects that we'll be kicking off shortly. Radio Road is currently out to bid, that beautification project. And the Bayshore project has kicked off with some smaller -- smaller components initially. But that project will be well underway this summer as well. So we're going to see the fruits of that effort as well, and that should hopefully stipulate some further business activity in that triangle area. That's it kind of for the macro overview. What I'd like to do now is just kind of turn us to our core agenda for the day. And we'll start with debt service funds. And there's a -- your second to the last tab in your summary book. G-1 identifies your -- there's a summary of the proposed debt service budgets for the upcoming fiscal year. There's really not policy decisions involved for the board in this area. In fact, the -- probably the most striking item is the lack of outstanding debt. And of the debt that we do have, the relatively short-term nature of that existing debt -- for example, the only general obligation debt supported by taxes is the parks GO debts, which is Fund 206, which it will be retired in July of '03. The race track debt is July of '03. The revenue sharing debt is October of '03. I think you see the regular recurring pattern here of relatively short-term nature of outstanding debt. The ones that are larger are special assessment projects for like Naples Park and Pine Ridge Industrial Park. CHAIRMAN CONSTANTINE: Any questions on the debt service fund? COMMISSIONER BERRY: No, I just have a question. Do we share money of the race track funds with the school system? MR. SMYKOWSKI: Yes, we do. COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: We receive $446,500 on an annual basis. Of that, the -- we have to cover the debt -- the outstanding debt service initially, and the balance after debt service is recovered is remitted to the school board. COMMISSIONER BERRY: Right. Okay, thank you. MR. SMYKOWSKI: One issue here, if anything, we had built Page 36 June 14,2000 the budget for the purchase of the helicopter, assuming a 50/50 share between general fund and EMS impact fees as the repayment source. There's been much back and forth discussions about eligibility of that to be paid with impact fees. At this point, the attorney's office, County Attorney's Office, and our impact fee consultant, Tindale & Associates, have taken a conservative approach on that and said that should -- we should not use any impact fees whatsoever toward that helicopter. As a staff, we're not completely comfortable with the logic of that decision, so that's something we're going to continue to wrestle with a little bit. CHAIRMAN CONSTANTINE: Maybe the board could get a written summary on that opinion? MR. SMYKOWSKI: That's fine. From a debt service perspective, that's really the only issue. COMMISSIONER BERRY: Aren't impact fees, though, isn't that for expanded service? MR. OLLIFF: If it's for new and expanded service. COMMISSIONER BERRY: For new and expanded. MR. OLLIFF: And the argument we were making was that this provides additional service capacity. You can significantly-- the same argument that we made with the Golden Gate Community Center. We did a refurbishment and an expansion. The expansion we paid for out of impact fees, refurbishment we paid for out of taxes. COMMISSIONER BERRY: Right. MR. OLLIFF: And all we're telling you is that we need to go try and get that to hold still a little bit and it may make an adjustment to you -- to this debt service budget before we get to the end. COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: That concludes debt. I'd like you to turn to the grants and trust fund summaries, which are on Pages D-2 and D-3. Really, the only thing of note in the grants, obviously, within grants and trust funds, that's a function of whatever money we may be eligible for through programming, et cetera. And on the trust fund side, that's going to vary widely from year to year, based on donations that are received, et cetera, confiscated property that the Sheriff's Office may take during investigations, et cetera. So the numbers here Page 37 June t4,2000 are going to vary widely from year to year. That's not necessarily a bad thing, it's just a function of the nature of the beast, so to speak. COMMISSIONER BERRY: In other words, like confiscated property, it just means that perhaps they haven't taken as much property -- MR. SMYKOWSKI: Yeah, if you had a big seizure in one year, you're going to have a lot more money, obviously. COMMISSIONER BERRY: Okay. MR. SMYKOWSKI: And that's used to supplement the sheriff's budget. On the grant side, the big thing, we're reflecting two major grants on the CDBG side, a 750,000 neighborhood revitalization for road construction in Immokalee, and 350,000 for road construction in Harvest for Humanity. COMMISSIONER MAC'KIE: Where are those? I can't find it. MR. SMYKOWSKI: Fund -- it's Section 8, HUD. It's the second grant down. There's a fairly big increase there. Those are the two grants that we're hopeful to receive. Another grant with a large increase on a percentage basis is the parks and rec's summer food grant program, which is reflecting a major increase, but that's a function of really the success of that program. The state has just simply allocated us more money. And Jim Thomas works miracles with some fish and loaves of bread to feed the hungry all summer long on the -- COMMISSIONER MAC'KIE: It's kind of a sad thing that we have so many children who don't have lunch unless they get it from the state. but -- COMMISSIONER BERRY: I think it's breakfast as well, Pam. COMMISSIONER MAC'KIE: It's breakfast and lunch? COMMISSIONER BERRY: Breakfast and lunch. COMMISSIONER MAC'KIE: But the good news is that the state's responded to the need in Collier County. MR. SMYKOWSKI: Right. We've gone from like 278,000 to 466, and that's really a function, I think, of our success with that program and administering it well, and we've been rewarded. And it is unfortunate that it is needed to that extent, but we're grateful that we're able to take advantage of that program. On the trust funds, not much -- COMMISSIONER MAC'KIE: Before you leave the grants, Page 38 June 14,2000 what's the MPO? It's almost a 250 percent increase. MR. SMYKOWSKI: Yes, that's for transportation disadvantaged programs. There's, you know, for-- a match for buses, et cetera. COMMISSIONER MAC'KIE: That's great. Good. MR. SMYKOWSKI: On D-3, in the trust funds, as I indicated, typically these are going to vary widely from year to year. And as the note indicates, in the library trust fund, we received a donation to fund a literacy program this year. That's why there is a position that was added specifically for a literacy program coordinator. That was a bequest for $75,000 to the library. So that's an example of the nature of the type of funding that would be received on an annual basis. We'll now move to the MSTD general fund. The summary is on Page B-2 and B-3. COMMISSIONER MAC'KIE: This is the unincorporated? MR. SMYKOWSKI: Yes, this is service provided to unincorporated area residents. Again, as I indicated in my opening remarks, this would exclude Everglades City, Marco Island and the City of Naples. The proposed millage does increase. Again, though, you see the impact on the first line on the spreadsheet on the expense side is the road and landscape maintenance, which is simply the transfer of the amounts that we were spending within those three road MSTD's. And frankly, what it also does, it really shows you how much we are spending on an annual basis for maintenance and/or construction of median beautification projects. You see a million and a half dollars almost in expanded services as well. That's for new projects, construction and maintenance of projects that are underway. So we feel not only from a simplification standpoint, it's also good just identifying how much it is we do spend. COMMISSIONER MAC'KIE: You know, when we -- at some point, I don't know how or where it's possible to do this in the budget process, but I wish that we could -- and probably somewhere in one of your pie charts -- see from a priority basis how are we choosing to spend the flexible money in the county's budget. I know there's a lot of money that's dedicated and can't go to any other place. Page 39 June t4, 2000 And please don't get me wrong, I'm not -- I'm a big advocate of this median beautification program. But when we say that we're spending five and a quarter million dollars annually on medians, and then you look and see what are we spending on, you know, just the Healthy Kids, zero. Immunizations for children, what, 400,000? It tells you something about the priorities of local government. We've got to think about it. COMMISSIONER BERRY: Well, where's -- but I think, too, where does the money -- where does this money come from? COMMISSIONER MAC'KIE: Plain old ad valorem taxes, right here. COMMISSIONER BERRY: The 5.2 is strictly ad valorem taxes? MR. SMYKOWSKI: Yes, ma'am. But it was in the road MSTD's as well, you also need to recognize that. COMMISSIONER MAC'KIE: Right. MR. SMYKOWSKI: It was ad valorem. COMMISSIONER BERRY: Okay. But was it a separate -- MR. SMYKOWSKI: It was just in three separate pots. Now we're just saying put it in the larger pot with the other things that we tax for in the unincorporated area. COMMISSIONER BERRY: But it was my understanding on the landscaping -- road and landscaping maintenance, that this was money that, say, couldn't be used for what Pam's talking about. MR. OLLIFF: No. COMMISSIONER BERRY: That's not true? It's never been true? COMMISSIONER MAC'KIE: Huh-uh. MR. SMYKOWSKI: That cannot be used for Healthy Kids. MR. OLLIFF: Under the old system, you're correct. Because it was a special -- it was a taxing district for road maintenance. By doing it this way, you're actually putting it into a pot where it could be used -- COMMISSIONER MAC'KIE: It was just bookkeeping before. It was just by virtue of bookkeeping that it couldn't be before. COMMISSIONER BERRY: I -- well, I don't know. I didn't understand it that way. It wasn't just -- I thought it was definitely designated. MR. OLLIFF: It's still ad valorem money you were raising Page 40 June 14,2000 specifically for landscaping maintenance. These were old, old road maintenance districts that used to be associated with maintenance in old commission districts, almost as if you had an antiquated type, you know, road maintenance type program that was done by district. Now it's much harder, because the major expense there is landscaping beautification maintenance. To make the argument that because somebody lives on the north end of Airport Road versus two miles south, and the median runs right through Airport Road, that that person gets a benefit that's different from the other person, it's hard to make that argument anymore. We think the arterial roadway median beautification system is a county-wide -- or an unincorporated benefit that everybody ought to pay for. COMMISSIONER CARTER: So it's all ad valorem taxes, we've consolidated it and said this chunk of money here now goes for a road district beautification maintenance. Is that what we're saying? MR. OLLIFF: We're saying -- COMMISSIONER CARTER: We're taking that chunk of money out of the general fund, not ad valorem taxes, to pay for this. MR. OLLIFF: Right. COMMISSIONER BERRY: Okay. Because I do understand what Pam's saying. I always thought before that you couldn't do that with some of the dollars. But once you throw this into this mix, then I think you are looking at a whole different approach. And, I mean, I've got a concern. Maybe you can help me here, Mike. MR. McNEES: Two things I would clarify. One is that the landscape portion of this five million is actually 2.3. The 5.2 million is road and landscape maintenance. So -- and a couple years ago, staff began to make a concerted effort to lump all of that landscape money together so you could see the cumulative impact from year to year, because it becomes a pretty significant piece of your budget. But that number today is only 2.3 million. The change is simply to stop calling this MSTU by individual road district names, take that tax money, put it in the MSTD general funds, just for ease of dealing with it, actually. And it would give you ultimately more flexibility with that level of taxing. But the road maintenance support is still going to have to be done. Page 41 June 14,2000 I think perhaps you -- it's been represented to you that somehow that road MSTD money was painless money or just money that was out there every year that could be used to maintain these medians. It was always general -- it was always property tax money. And it is our opinion that doing it this way is actually clearer and is a more direct way to say this is what we're taxing you for and this is where the money's going, as opposed to having this shadow tax out there that nobody really understands, where they're paying a half a mill or three-quarters of a mill for median and road maintenance but not really understanding where that money goes. COMMISSIONER MAC'KIE: Okay. CHAIRMAN CONSTANTINE: And I'll tell you, while I'm sure it will be fun rhetoric to say, you know, gee, that's $2 million for little flowers and shrubs, the truth is, when we have Leadership Florida here in Naples this weekend, we had 200 people that, you know, are head of corporations and everything all over the state. Whether it's them or Florida Association of Counties, you know, you talk to the other commissioners around the state, you talk to anybody around the state, this helps formulate the opinion of the community. And I hope nobody is suggesting we cut that. I'm glad it's a bigger picture. But I just -- I know when we talk about different priorities and all, it's easy to pick on this, but it really does help create that imagine that is our community. And you need drive no further than one county north to see the difference when you look -- you know, you get on 41 up there or you look down here and there's a huge difference in appearance of the community. MR. OLLIFF: We won't argue with that at all. I think what we're trying to do is just make sure that when we make these decisions, we're sort of making them with eyes wide open, and this is a better way to do that for us, we think. And Mr. Chairman COMMISSIONER CARTER: And I think this helps us communicate to the community that this is a lump sum of money that goes to the total beautification and maintenance, and that's why we are a premiere county, and that's why people come here, that's why you enjoy living here. So we're not saying, well, you paid this much and over here you only paid this much. Everybody pays. Page 42 June 14, 2000 COMMISSIONER MAC'KIE: And keep in mind, this is the maintenance money. This isn't the capital money. We'll see that later. MR. OLLIFF: Right. Correct. MR. McNEES: The last point I would make would be even beyond the quality of life, the perception issues, the business equation is the argument would be that this investment of the $2 million for the medians and the beautification actually comes back to you in ad valorem property assessments. COMMISSIONER MAC'KIE: That's true. MR. McNEES: And actually comes back to you in real revenue. Now, that -- the reason we want to show this separately is we want to continue to an -- to be aware of that, and to make sure we don't get to a point where we're spending more on the beautification than we actually feel like we could legitimately say comes back to us. So it's just something for us to be aware of year to year. MR. SMYKOWSKI: There's a list of proposed expandeds beginning on B-6 for the various departments. And I'll just entertain any questions you may have regarding those. COMMISSIONER MAC'KIE: Are we also going to see a request of a not-recommended list at some point? MR. OLLIFF: Yes. Next fund. COMMISSIONER BERRY: I'll tell you one thing I'm pleased to see in here is the maintenance -- stepped up maintenance for the cemetery and Lake Trafford out in Immokalee. That's been -- as you well know, you've all heard from me, because I get the calls from the concerns of the people out there that -- MR. OI. LIFF: That's something we just have to do better. It's just -- CHAIRMAN CONSTANTINE: Looks good. COMMISSIONER MAC'KIE: I wish you'd get us -- I guess there's nothing -- okay, never mind. MR. SMYKOWSKI: Okay, that brings us to Page C-2, in the special revenue section. Mr. Dublis will walk us through those quickly. Again, there's really not a policy-making role for the board. This is simply a fee and find revenue that we get that are dedicated for specific purposes. MR. DUBLIS: Revenue supporting, intergovernmental radio Page 43 June 14,2000 communications -- COMMISSIONER MAC'KIE: And your name? MR. SMYKOWSKI: Your name, too, please. MR. DUBUS: Name for the record is Chris Dublis. Revenue supporting the intergovernmental radio communications program is generated by a surcharge on moving traffic violations. The decrease in fund total is due to additional maintenance cost as a result of the warranty which has recently expired. The ADA fund for handicapped access improvements, special need equipment is funded through fine revenue from handicap parking violations and a cut from the Subway gross sales. COMMISSIONER MAC'KIE: I have thoughts on the 800 megahertz system that Mr. Olliff has heard already. But where are we going to be hearing about the necessary improvements to the 800 -- MR. SMYKOWSKI: We'll discuss that as part of our capital budget on Friday. That is one of the recommended projects in the 301, which is the county-wide capital, supported by general ad valorem taxes. COMMISSIONER MAC'KIE: I will save my story for there. MR. SMYKOWSKI: Yes, this fund is simply maintenance. We get traffic surcharge money to apply toward the maintenance of that system. MR. OLLIFF: Short answer is it's in there. MR. SMYKOWSKI: That moves us to community development, Fund 113. Mr. Gambino will walk us quickly through that discussion. MR. GAMBINO: For the record, Tony Gambino, budget analyst. Community development, Fund 113, is basically funded by building permit revenue. And the major item for this year is the building expansion on Horseshoe Road. And that's $9.5 million. And the funding will come from $5 million in cash and 4.5 mill that was approved through -- by the board through a loan. On Page C-5, you can see the effects of the five million. You can see carryforward decreasing. We also have expanded requests of 1.8 million, which will be funded by a 15 percent across-the-board fee increase, which was approved by the Development Services Advisory Committee. And Page 44 June 14,2000 that's to fund 13 new positions, as well as 672,900, to pay back the loan, which will be paid over 10 years. COMMISSIONER BERRY: In those 13 new positions, is this what we had asked for to step up individuals over there to help people get through the permitting process and all that a little faster? Is that -- MR. OLLIFF'- Yes. And in fact five of those were recently already approved by the board two board meetings ago, I believe. MR. SMYKOWSKI: Yeah, for the additional building inspectors, due to the need there as well. COMMISSIONER BERRY: Right, okay. MR. OLLIFF: Just a result of permit volumes. MR. SMYKOWSKI: It's important to note, as Mr. Gambino stated, Developmental Services Advisory Committee reviews these and is on board with the proposed requests, and the proposed fee increase as well. COMMISSIONER MAC'KIE: to spend it. COMMISSIONER CARTER: enforcement's request? This is their money, if they want Where will we see code CHAIRMAN CONSTANTINE: General fund stuff? MR. OLLIFF: Code enforcement is under 111. And we actually just covered that already, and I think we had some expanded service requests as part of code enforcement. COMMISSIONER MAC'KIE: Well, I need to go back to that then. Where was code enforcement? We covered it? COMMISSIONER CARTER: I missed it. COMMISSIONER MAC'KIE: Me, too. MR. SMYKOWSKI: B-11 were the expanded service requests for code enforcement. There were two positions: One for a code investigator, one for a general operations coordinator. COMMISSIONER MAC'KIE: We're adding two positions to code enforcement? CHAIRMAN CONSTANTINE: We had added two during this existing fiscal year as well, right? MR. SMYKOWSKI: Yes. CHAIRMAN CONSTANTINE: We talked about four, two of them immediately and then two of them coming later. MR. OLLIFF: You're adding four total positions. COMMISSIONER CARTER: And that was -- as a part of the Page 45 June ~4,2000 sign ordinance to be able to step up the enforcement. MR. OLLIFF: Yes, sir. COMMISSIONER CARTER: Okay, fine. Thank you. COMMISSIONER MAC'KIE: Not enough, not enough, not enough. I'm just going to keep saying it. It's not enough. My opinion. MR. OLLIFF: Noted. CHAIRMAN CONSTANTINE: I'm sorry, what was your opinion? COMMISSIONER MAC'KIE: It's not enough. CHAIRMAN CONSTANTINE: Thank you. Next item. COMMISSIONER CARTER: I'm a wait-and-see guy. Let's see. MR. SMYKOWSKI: Page C-9, there are some special revenue funds that fall under community development. Mr. Gambino will walk us through those quickly. COMMISSIONER MAC'KIE: Say the page number again? MR. SMYKOWSKI: C-9. COMMISSIONER MAC'KIE: Thank you. MR. SMYKOWSKI: These are the pollution control fund, the SHIP fund and the pollution cleanup fund. MR. GAMBINO: Pollution control, Fund 114, the millage rate's increasing from .0355 to .0447, which is a 92 cents per $100,000 increase, which was largely due to the expanded, which is driven by the Growth Management Plan. And on Page C-10 you can see what the expanded is. It's a request for update wellfield protection zone, it's a request for monitoring of sediments, the estuaries of Collier County. COMMISSIONER MAC'KIE: This is a very good thing. And this is a tax that was voted in by referendum. People indicated their willingness to pay for this. So we're finally -- MR. SMYKOWSKI: That's correct. COMMISSIONER MAC'KIE: -- using it. MR. SMYKOWSKI: And we're not even halfway to what the total one-tenth of a mill allowed is. CHAIRMAN CONSTANTINE: Again I ask my question: When we monitor sediments of estuaries, walk me through the monitor's day. MR. OLLIFF: I think you're testing exactly what it says. You're testing sediments to find out, like in Pelican Bay's issue, whether you had fertilizer runoff that are affecting some of your Page 46 June 14,2000 estuaries and bays. You're also looking for mineral content, you're looking for pollution. CHAIRMAN CONSTANTINE: I understand the generic purpose. But $88,000 is a lot of money. Do we have two -- COMMISSIONER BERRY: In other words, what do I do? CHAIRMAN CONSTANTINE: -- full-time people out there digging in the mud every day, or do we have, you know, an all day, eight hours a day, or do we have one person in a really expensive lab that they send the sediment to and then once we have answers for what we -- what's in the sediment, what do we do with those, put them in a book on a shelf? You know, what's 88,000 bucks buy us? MR. CAUTERO: Vince Cautero, for the record. Our intent is to outsource as much of this as possible so we don't have to hire existing staff members that work through existing contracts with Florida International University and the Water Management District. I do not want to add additional staff members to the payroll for that very reason. CHAIRMAN CONSTANTINE: Help me understand, though. I mean, I understand when you say, you know, gee, we're trying to test for minerals and stuff. Great. But, I mean, you could put $22,000 in there or you could put $200,000 in there and give me the same explanation. Where do we come up with $88,000, and what do we get for $88,000? Very specifically. I mean, every single day they're out there for four hours a day digging in the mud, or once a week they're there doing that and it's just very expensive to take it to the lab? Or what is 88,000 bucks? Where did that number come from? MR. CAUTERO: It came from a consultant's estimate on how long it would take for them to give us the data that we need. And the data that we need will be used to be able to generate our data base. And specifically what we will use it for -- and this is a question that you asked about three budget years ago that we weren't able to give you the answer. When we have a project like the Army Corps ElS and we rely on local data and we're striving to have that data that we don't have and we rely on the federal government, that's exactly what the information will be used for. Or the Everglades restudy, when we're going to work with these agencies and we hear that they want to spend more Page 47 June 14,2000 money for more federal programs, if we have that local information, we believe it will be better and it will be able to used for local regulatory purposes. That's the reason why we want it. The Growth Management Plan says we'll do it. We have been behind in a portion of that, the sediment sampling. As we urbanize the Naples area quicker and as growth continues in our area, we're going to need that information so that we can have that when we come to you with new regulations, rather than rely on the federal government or the state government. COMMISSIONER MAC'KIE: Vince, when you go to the state, for example, when we were fighting with the state over the comp. plan this last time, one of the things that they complained about -- because it's when I was up there -- was over the business about the wellfield monitoring, you don't have data to support that you're doing it adequately, you don't have data analysis, you don't have data analysis. If you don't want the state to do it to us, we have to do it ourselves, because it's the state law. MR. CAUTERO: That's one of the reasons. We never had that data and everybody says use the data that the state agency or the federal agency has. This is our attempt to try to overcome that. CHAIRMAN CONSTANTINE: Thank you. COMMISSIONER CARTER: And I guess I would see some other internal things. Just as one example, if we ever did a reconnect between Vanderbilt and Pelican Bay, it's always the studies of the water and all these issues. And in order to convince the community that it's not damaging something, you have to have data, you need it from a reliable source that says we've tested it for, here's the period of time, there's A, significance, B, there's no significance, and we can connect an estuary. But if you don't have that, you'll always have people yelling and screaming that we're ruining something. COMMISSIONER MAC'KIE: And we might be. COMMISSIONER CARTER: And we could be. COMMISSIONER MAC'KIE: Don't know. COMMISSIONER CARTER: I don't know. CHAIRMAN CONSTANTINE: Next, please. MR. GAMBINO: The only other thing on that was the SHIP Page 48 June 14,2000 program, requesting two part-time positions, as the increase in applications, process loans. MR. SMYKOWSKI: That's been a successful program for Mr. Mihalic. As we continue to get more money, obviously they'll have more loans to process. COMMISSIONER MAC'KIE: I would just comment quickly about that, that I get a lot of -- not a lot. I have gotten several telephone calls complaining about how difficult the process is, the reimbursement process. I think that's SHIP money, where you pay to have the sink fixed. And apparently it's very bureaucratic and very complicated. And I just hope that if there's anything you can do to make that better and simpler, you would. MR. MIHALIC: I'm not sure. When we give a down payment and closing cost assistance loan per the state regulations, we also have up to $2,500 for small fix-it repairs. COMMISSIONER MAC'KIE: That's the one that -- MR. MIHALIC: I'm not quite sure. We demand that that money be used within six months. That's been a problem with some clients who want to hold it longer. We do want an estimate from a contractor ahead,of time. COMMISSIONER MAC'KIE: I'll tell you real quickly what the kind of complaints I hear is you can't go to Home Depot and buy a refrigerator and install it yourself. You have to go to a fancy place and have -- because it has to be professionally installed when all you really have to do to install it -- a refrigerator, almost anybody can do, but the county requires it to be done by a professional, and that means you have to pay the higher fees. And this is probably too much detail for this particular meeting. CHAIRMAN CONSTANTINE: Yes, all those in favor of that, say aye. MR. MIHALIC: Let me respond to that. A person can certainly go and buy a refrigerator from Home Depot, but they can't go and buy the tile and the grout and install it themselves. We have to have -- COMMISSIONER MAC'KIE: We'll talk about it more -- MR. MIHALIC: -- a contractor that does that. COMMISSIONER MAC'KIE'. -- not in this forum. MR. SMYKOWSKI: Page C.14 is the listing of the various small taxing districts that the county has for road construction Page 49 June 14,2000 maintenance. Again, those are recommended for collapsing into the unincorporated area. The street lighting districts, there's a summary -- COMMISSIONER MAC'KIE: Before you go to lighting, as much as I like what you were telling us earlier about the landscaping on the road district maintenance, there's one policy problem I have with collapsing these road districts, and that is, hadn't the theory been that if you live in Road District 2 you pay for maintaining the road within those boundaries as opposed to paying county-wide road maintenance? If you collapse them, then if I live in East Naples, I'm paying for road maintenance in North Naples, and vice versa. And that's a policy decision, it seems to me. If the board wants to support it -- CHAIRMAN CONSTANTINE: I'll tell you the other worry there, too, is individual commissioners have actually had some influence in their own road district up until this point. Which is good, because they usually have more familiarity there than the balance of the board. And he's going to know his district more than I am, and the specifics there. I hate to see all that get mingled. I like the accounting end of it and where you were talking before, but, you know, I don't know want to have to go struggle -- my road district has "X" number of dollars left over this year, there's some place appropriate to put that. You know, the community can often share that with their commissioner. But if it's out of a lump sum -- MR. OLLIFF: And appreciate, too, that all the commissioners don't have a district. COMMISSIONER MAC'KIE: But we could, instead of lump them, we could re-divide them. I mean, that's another option. MR. OLLIFF: I think you're going to have a hard time making that justification that the real benefit is limited to the area of a commission district boundary. And I don't think the ability for commissioners to hear from constituents and tell us that there are potholes in areas that need to be fixed is going to be affected by this. But Mike, you may want to add some -- MR. McNEES: Well, I'd say a couple of things. One is you could make the same argument about a park. You know, we pay for parks throughout the unincorporated area, and each of you Page50 June 14,2000 has had individual interests in different parks, and you certainly don't lose your ability to make -- to tell staff you have a priority with a particular park, any less than you lose that ability to tell us you have a priority interest in a particular segment of a road. COMMISSIONER MAC'KIE: Of course, the people in East Naples are more likely to drive on a North Naples road than they are to use a North Naples park, and they're already paying for the North Naples park and its maintenance in the same way that they are East Naples park. So it probably is just a more straightforward, honest way to go. COMMISSIONER CARTER: And it doesn't remove from the capital side where you can get private participation in doing these things. That's a different issue. All we're talking about is maintenance. MR. McNEES'. Correct. CHAIRMAN CONSTANTINE: Other questions on the transportation page? Thank you. MR. SMYKOWSKI: The only expanded there was Radio Road beautification maintenance proposed on the upcoming year on the project that will soon be underway. On Page-- CHAIRMAN CONSTANTINE: Let's go on to enterprise funds. MR. SMYKOWSKI.' We're on C-18, the fire districts. CHAIRMAN CONSTANTINE: Sorry, I skipped ahead. Sorry. MR. DUBUS.' Chris Dublis, for the record, again. In Isle of Capri, additional revenue to pay for expanded service is derived from growth in Fiddler's Creek. In Ochopee, there are no expanded services and the millage rate is still four mills. CHAIRMAN CONSTANTINE: Any questions on emergency services? COMMISSIONER CARTER: No. COMMISSIONER BERRY: No. CHAIRMAN CONSTANTINE: Thank you. MR. SMYKOWSKI: Tourist development, on C-22. Simply what we'll do there, these are the budgets, frankly, that you saw in your executive summary yesterday, with money just reflected in reserves in each of the respective funds. Based on your direction and decisions made yesterday we'll simply--whatever you approved will be reflected in the budget. That's the beauty Page 51 June 14,2000 of this revised process in that the budget will be reflective of policy decisions made. CHAIRMAN CONSTANTINE: Questions on tourist development? COMMISSIONER BERRY: No. COMMISSIONER CARTER: No. MR. SMYKOWSKI.' Page C-25, there's a kind of a catchall of miscellaneous special revenue funds. The museum, again, that will reflect the policy decision made yesterday. The Golden Gate Community Center, the millage is increasing there, but there are three expanded services identified on C-26. That's the driving reason behind the millage increase. Again, primarily the replacement of the annex building. And then there's three small funds, courts and related, for guardianship. There's no proposed expanded services there. Public records modernization, there's filing fee revenue. The clerk is proposing to use that money toward purchase of an imaging system, as well as a partial payment on a new financial system for the county. The sheriff, the E 9-1-1 budget. The board had approved about two weeks ago the proposed rate for the E 9-1-1, so there's not -- MR. OLLIFF: Two things I need to point out on this budget. One, this is where we answer your question about the museum's original TDC request versus what the actual number that you saw yesterday at the board meeting was. The original number was actually prepared by budget, and it was prior to the museum's annual budget actually being put together. It was before what we call green bars and everything else were even in place. So they were making their best estimate at the time. As they finalized the budget and knew what exact retirement rates and all the other issues were, that number was adjusted by the actual budget request by $8,000. Second thing here is on the -- the Clerk of Courts, that financial management system, I just -- you need to be aware of that. That is a big deal. That is a financial management system that we have currently is, I believe, a 1983 vintage, and is not a very good financial management system. It has been tweaked and reprogrammed so many times that the clerk will tell you, it doesn't do what he wants it to do, and it certainly doesn't do, Page 52 June 14, 2000 from our agency's standpoint, what we would like for it to do either. It's probably in total a 2 to $3 million project. It's going to be done over a couple of years in phases. It's a joint project where he's actually using some of his own trust fund monies and combining it with some of your monies in order to be able to do that project. CHAIRMAN CONSTANTINE: Golden Gate Community center here, the original structure was built out of special tax? MR. SMYKOWSKI: Yes. CHAIRMAN CONSTANTINE: Some of the additional things on there have been paid out of either impact fees or other various sources. This expansion here you indicated was due to the replacement of the annex. Does that mean the annex will be owned fully by the special taxing district and not by the county? MR. OLLIFF: Yes. CHAIRMAN CONSTANTINE: Thank you. Any other questions on miscellaneous special revenue? Now we go to enterprise funds. MR. SMYKOWSKI: Yes, sir. We're on Page E-2 and E-3. Mr. Finn's going to cover the highlights there, as the interim division administrator. MR. FINN: Thank you. Edward Finn, utilities administrator. Just to start off, I want to give you an idea of what the focus is for next year. Our first focus for water and sewer utilities has to do with competitiveness. The board's already seen a rate reduction last year. That's a clear reflection of our intent to remain competitive with the private sector and with the other private utilities that we compete with. Our second focus for next year is going to be a continuation or an upgrade of our good neighbor policy as it involves both odor control and noise control. Of course, in the community we live in we always need to be responsive to system growth. And particularly in utilities, that's important. This budget reflects that as well. As you know, our system is aging. It's not a young system as it once was. As a result of that, we have considerable enhancements in our maintenance function reflected in this budget. And the final thing is enhanced and modernized automation Page 53 June 14,2000 throughout our system. And that's part of remaining competitive. That's kind of the overview of what went into establishing this budget. The specifics there deal with the reorganization. And you'll see some big adds and some big subtracts in the percentage change column. And those reflect the movement of positions from DOR into the utilities fund itself, as well as a streamlining of the administrative section from nine people to three people. There is no rate increase associated with this budget. There is considerable capital funding for next -- for this year's projects, which include, as you know, a $30 million water plant expansion and some other substantial projects. If there are any questions, I'll be happy to try to answer those. CHAIRMAN CONSTANTINE: Questions? Thank you. MR. SMYKOWSKI: That will move us to the miscellaneous enterprise funds on Page E-7. Very simply, that's -- MR. DUBLIS: Chris Dublis, on the public record. MR. SMYKOWSKI'- Chris, hang on a second. Miscellaneous enterprise funds: Debt service, really no policy decisions there. That's simply outstanding debt on existing bond issues. Marco water and sewer district, we've turned over operations to the City of Marco Island pursuant to the board's policy direction. The residual cash will be split between the portion going to the City of Marco Island, with the balance going to the general fund. Goodland water is simply a status quo budget. No expandeds, no rate increases down in that district. COMMISSIONER CARTER: Mike, may I -- Mr. Chairman, may I go back to Mr. Finn just for a moment? MR. FINN: Yes, sir. COMMISSIONER CARTER: On Page E-5, he's got a situation where they have a large meter maintenance crew to perform testing and maintenance. I don't quarrel with that, but have we established some returns on investments? Otherwise, you must have been doing something different before, and therefore, you're trying to upgrade or do something different? MR. FINN: Yes, that's a very good point. Frankly, with the system growth, our large meter maintenance crews have not been as effective as we would like Page 54 June 14, 2000 them to be. Our meter -- meter -- regular meter maintenance hasn't been done on the schedules we were looking for. These additions you're looking at are going to allow us to get back to the schedule that we feel is appropriate both from a revenue standpoint and from an overall maintenance standpoint. COMMISSIONER CARTER: Okay. Well, there's a key to me, to make sure we don't lose revenue. MR. FINN: Yes, sir. COMMISSIONER CARTER: Okay, thank you. CHAIRMAN CONSTANTINE: Two quick questions in the same area, Ed, both under water operations; one for distribution and one for lab. Request for an additional vehicle. Couple of different questions. One, are these people -- are these two supervisors non-existent right now? And if they are existent right now, how are they getting around? And on the second one, same question, if it's the lab staff for collection and analysis of tests in the field, how are they being transported right now? MR. FINN: Both very good questions. Both questions I asked. The distribution maintenance -- distribution folks are currently sharing a vehicle, and as a result they're not as efficient as they should be. We took a hard look at that and we're recommending approval of that one. The lab is a similar thing. We have changes in our requirements to do monitoring, as well as system growth. The only way to continue to stay current with what we need to do testing on is to add a vehicle so that staff will be able to get to those sites. We did take a hard look at both of those before recommending them. CHAIRMAN CONSTANTINE: And what's the difference between the two vehicles that cost $4,000? MR. FINN: The distribution folks will be using -- will have trucks, have normal full-sized trucks, and the lab people will have smaller trucks. CHAIRMAN CONSTANTINE: Thank you. MR. SMYKOWSKI: Public utilities and solid waste funds are summarized on Page E-9. The expanded services are identified on E-10 and E-11. MR. VINCENT: Good morning. For the record, Gary Vincent, office of management and budget. Page 55 June 14,2000 On Page E-9 you will notice that there are four solid waste funds. In Fund 470 there is an addition of personnel from DOR, which is for scale operations. And in Fund 473, the mandatory assessment fund, personnel from DOR as well are now at Fund 473. The expanded requests are on Pages 10 and 11. Are there any questions about those requests? COMMISSIONER CARTER: Why do we have $100,000 for public relations campaign? I would like some more information on that. What are we getting for $100,0007 MR. FINN: That's a very good question. If I may, generally solid waste was -- the solid waste budget was put together with some focuses in mind. One of our key focuses is improving our recycling and waste reduction efforts. And to that end, staff is convinced that we need to provide more education to the public on the need to do recycling in an effort to reduce the overall waste stream. We came up with a program, a set of funds that are going to allow us to do that. I think next year you're going to see a renewed effort, a serious effort, and a serious improvement in our overall recycling as a result of this expenditure. MR. OLLIFF: They put this in there at my request. I -- we are at 25 percent, we're supposed to be at 30. I'm working with Waste Management, the current collector, on what they call slicks recycling, junk mail recycling. And we wanted to provide some additional public education as well. We're just trying to get to that 30 percent number. In terms of the expense versus the size of this program, $100,000 is not a lot of money to put towards a public county-wide education program, if we can achieve that -- some significant changes in our actual recycling rate. COMMISSIONER MAC'KIE: And again, this is money that only can be used for garbage related issues. COMMISSIONER CARTER: Okay. And so we have some benchmarks to show, if we spend $100,000, at least we feel that this is where we were and this is what we're able to achieve. COMMISSIONER MAC'KIE: With our hundred grand. MR. OLLIFF: If it moves up from 25 to closer to that 30, then we'll be able to see some return on that. CHAIRMAN CONSTANTINE: Could we red flag that and just Page 56 June 14,2000 get more detail on that before we wrap up? MR. OLLIFF: Sure. MR. FINN: If I may, on Page E-11 there's an expanded request for $129,000. That request is going to drive a small less than 2 percent rate increase in the mandatory collection fee next year. That program involves the replacement of lost, stolen or damaged receptacles. It also funds the repair of private driveways that are damaged by turnarounds made by the large waste collection trucks. CHAIRMAN CONSTANTINE: Shouldn't Waste Management be picking that up? If they do the damage, shouldn't they be paying for the repair? MR. FINN: It's not covered by the contract. And they have been nominally covering the repairs over the last year or two. CHAIRMAN CONSTANTINE: When is their contract up? Next year, isn't it? MR. FINN: As you know, we're returning to the board in October with an RFP that the board hopefully is going to approve us moving forward with. I believe it's in mid-2001 that contract is up. COMMISSIONER CARTER: That will give us a good opportunity for the negotiation process. MR. FINN: We're recommending approval of this. It's going to give us more flexibility in actually making those repairs in a timely manner. And frankly, our goal is to minimize the impact on the customer. COMMISSIONER MAC'KIE: It has to be done. COMMISSIONER CARTER: I don't disagree with that, but it just triggers in my mind a negotiable item when we review the contract. CHAIRMAN CONSTANTINE: Final question is, where is the recycling van going? MR. FINN: The recycling van is going to continue to be with us. It is -- that truck is inappropriate for use at the landfill. They simply need an appropriate vehicle that's going to allow them to travel around the landfill as they need to. MR. OLLIFF: It says it won't be available. It won't be available to the director and the coordinator because hopefully we'll fill that recycling position that is currently vacant is the reason I think they're able to drive the van now. Page 57 June 14,2000 CHAIRMAN CONSTANTINE: Thank you. That concludes enterprise. We'll go to internal services. MR. SMYKOWSKI.' There's one more miscellaneous enterprise on E-15. Short and sweet, it's the First Responder training. We received money from the fire districts for performing trainings. CHAIRMAN CONSTANTINE: Any questions on that? COMMISSIONER CARTER: No. CHAIRMAN CONSTANTINE: Internal service. MR. SMYKOWSKI: Internal service. Pages F-2 and F-3. MR. DUBI. IS: The DOR was eliminated as part of the county manager's reorganization. There was nothing budgeted for that. The three self-insurance funds are all actuarially sound. In particular, the property and casualty fund reflects an increase in auto insurance rates. This is after no rate increase in over eight years. These revenues will fund additional properties, such as new buildings, such as the domestic animal building and the helicopter. The overall increase in the health fund is due to an increase in billing, based on an increase in estimated claims costs. The Workmen's Compensation fund has an overall increase in the fund reserves. This is due to one-half million this year and 400,000 next year from the special disability trust fund reimbursements. Expandeds are on F-3 to F-5. The fleet management overall increase is driven by fuel costs. In the motor pool capital recovery fund, the size of the fund grows as the number of vehicles increases. Expandeds are on F-6. COMMISSIONER MAC'KIE: And I just need to understand the -- I think this is a great idea, this wellness program. That money -- I get confused every year on these internal service funds. That's ad valorem money transferred into this fund? MR. SMYKOWSKI: Partially. It comes from all the various operating funds. So there's utility money in there, solid waste money, community development money, as well as general fund. And it's in there in proportion to COMMISSIONER MAC'KIE: the number of employees -- MR. SMYKOWSKI: Right. COMMISSIONER MAC'KIE: wellness program? -- who will be tapping into the Page 58 June 14, 2000 MR. SMYKOWSKI: Correct. COMMISSIONER MAC'KIE: And -- okay. MR. OLLIFF: And again, this is just one of the things that we're trying to do to address that increase in healthcare cost line that you saw. COMMISSIONER CARTER: Question on the Department of Revenue. I know we dismantled it and moved these people into other divisions. Does this end up being a situation where we're just netting out whatever it took to operate that division and just moving the people and dollars into other divisions -- MR. OLLIFF: Yes. COMMISSIONER CARTER: -- or did we end up saving some money by doing this? COMMISSIONER MAC'KIE: We were supposed to save money by un -- the first time, so -- MR. OLLIFF: I think what we've done is when we unbundled it, we left the expenses where they were. We will go back and see how our collection rates are. There's -- there's -- each of the separate areas has got collection rate information that they need to collect, and we'll see what our cost per collection is at the end of the next year, once we've moved it out into the operating departments. COMMISSIONER MAC'KIE: Say that again? COMMISSIONER CARTER: Well, you know, I'm glad we did that. And I believe the point of service and all that should be where it is. Just a general information question on my part, because it was mentioned. We were supposed to save a lot of money doing it the other way, which I don't think ever materialized. So maybe we just became more efficient by getting rid of it. CHAIRMAN CONSTANTINE: Any other questions on internal services? That takes us to capital. MR. SMYKOWSKI: Yes, sir. I'll turn it over to Mr. Vincent, the senior budget analyst, who will be discussing the impact fee supported capital today on the gas tax on the roadside, as well again Friday we'll discuss any capital supported by ad valorem. COMMISSIONER MAC'KIE: And where will we see the breakdown on what was requested but not recommended on capital? Today? Page 59 June 14, 2000 MR. OLLIFF: I'll hand it out to you at the end of the workshop so you can have it. COMMISSIONER MAC'KIE: Okay. MR. VINCENT: Good morning. Gary Vincent again. On Page H-2 and H-3 is the gas tax fund on 313. And that is pretty much the summary of the entire fund. And that's there because this year, or FY '01, we are adding the engineers and project managers that were in the public works engineering department. Those personnel that are moving to transportation will now be shown in Fund 313. So that's why you're seeing those first three lines there in Fund 313; the personnel, the operating and the capital costs for those positions. If you turn to pages -- MR. McNEES: One little item while we're on this page, if you'll forgive me. Mr. Olliff graciously and somewhat mistakenly patted me on the back for all of that road work you saw a little while ago. These are the guys who did it and it's your transportation engineers, that are now engineering department. They deserve the credit for what's going on out there, and I wanted to recognize them for that. COMMISSIONER MAC'KIE: You both do. MR. VINCENT: Pages H-4 and H-5 show the forecast for road projects this year. This is a little bit different than what you've seen in the past in that I've sorted them with the largest projects first, and then I've grouped like projects together, such as Immokalee Road and Livingston Road so that you could see them all together. COMMISSIONER MAC'KIE: Thank you. MR. VINCENT: And then also on the far right, we show pretty much what phase each one of these projects are in. If you have any questions about these projects, I'd be happy to answer them. I would like to mention, though, down at the bottom, it shows loan proceeds of $8.6 million. Based upon a cash flow analysis, we don't expect to really need that loan this current fiscal year, but we will need it next year. The total where you see 49.9 million in projection expenses, that will be under contract, but not necessarily paid to the contractors by the end of the fiscal year. That's why we're not forecasting to actually need that loan prior to September 30th. Page 60 June 14, 2000 COMMISSIONER MAC'KIE: So I don't understand why it's on here then, if we're not going to use it this year. MR. SMYKOWSKI: We will need a commitment or pledge to borrow funds. The last time -- the last expansion to Immokalee Road, we were able to manage that with a pledge to borrow if needed, but based on cash on hand. Obviously we don't want to borrow funds if we have cash in the bank. So it's simply a budgetary tool to allow us to award a contract, but based on the actual timing of the payments to the contractor, we may not actually need to draw down -- MR. McNEES: To say it another way, Commissioner, to open a contract you need an appropriation. To have an appropriation you need a revenue. That's your bond issue, your debt. COMMISSIONER MAC'KIE: I get it. Thank you. MR. OLLIFF: Gary? MR. VINCENT: The following pages, 6, 7 and 8 are the FY '01 requested budget for road projects. And you'll see that the loan proceeds there are budgeted at 58.3 million. If you add the 8.6 million, we're talking about $62 million, basically. MR. OLLIFF: That's shown on Page H-8 in your budget book. The third line from the bottom, there's a $58 million number there. COMMISSIONER MAC'KIE: Where -- MR. OLLIFF: Where are the surprised looks? COMMISSIONER MAC'KIE: What was your question? MR. OLLIFF: I was waiting for some surprised looks of a $58 million loan, but I guess there aren't any. COMMISSIONER BERRY: Shouldn't be. MR. OLLIFF: Then we'll keep moving. COMMISSIONER MAC'KIE: No, we talked about it. COMMISSIONER CARTER: We talked about it, and we gave you the direction and you're doing it. COMMISSIONER BERRY: No surprises here. CHAIRMAN CONSTANTINE: Which is a pleasant change. MR. OLLIFF: Okay, we're ready to go then. COMMISSIONER BERRY: You can't tell somebody to go do something and then complain about it it's going to cost money. COMMISSIONER MAC'KIE: The question I had on here is, I think this is the point in the process where we usually talk about where we are in the transferring gas tax from capital to Page 6t June 14, 2000 maintenance? MR. SMYKOWSKI: Yes. COMMISSIONER MAC'KIE: How are we on moving that back to where it ought to be? MR. OLLIFF: We added another million dollars this year, as the board's policy has been, to add another million each consecutive fiscal year. And we're up to $3 million this year. COMMISSIONER MAC'KIE: As a percentage of total, that's? MR. VINCENT: I believe it's about 20 percent. COMMISSIONER MAC'KIE: How many, 20? MR. OLLIFF: 20. MR. VINCENT: Yes, ma'am. COMMISSIONER MAC'KIE: And at what -- would it be budget policy next year when we would discuss the possibility of increasing that? I mean, if I'm interested in proposing that that -- MR. SMYKOWSKI: Yes. Our policy has been on an annual basis to increase it with three million, four million, five million, et cetera. So you would expect to see four million, obviously, unless you were interested in accelerating that. COMMISSIONER MAC'KIE: I'm interested in accelerating it. So I just hope next budget policy time, you'll help me remember to talk about that. MR. SMYKOWSKI: You also need to recognize that some of your gas taxes are limited in their nature. Some have flexibility, can go maintenance or construction. Some are specifically dedicated to construction, so you do not have the flexibility. CHAIRMAN CONSTANTINE: Let's save next year's budget policy talks for next year. COMMISSIONER MAC'KIE: Okay, but my question here, then the 20 percent answer, is that 20 percent of the total or 20 percent of the available? That's a this-year question. MR. OLLIFF: Total. MR. SMYKOWSKI: That's of the total. COMMISSIONER MAC'KIE: So can you tell me what percentage of available? If not, would you tell me to wrap up? MR. SMYKOWSKI: I'll get that for you. MR. McNEES: The other big picture thing you need to keep in mind, and as the guy who originally recommended you start to peel that money back into maintenance, I'm going to stand up and talk about the other side of it. Page 62 June 14, 2000 Now, that gas tax is getting pretty popular. You know, we're taking part of it to go back to maintenance. But you're also peeling somewhere between four and five million of it off the top to fund that bond issue that you're talking about, that 50 million a year, or 45 million a year right off the top. So that money starts to get kind of thin. And in the absence of any kind of other capital revenue, we're going to have to bring back to you the longer term. How do we deal with that? You can't continue to borrow against it and transfer it back to maintenance and use it for maintenance and capital. That money only goes so far. So that's the big picture. COMMISSIONER CARTER: Thank you, Mike. MR. McNEES: And that bogeyman is in the background and you need to not forget about it. COMMISSIONER MAC'KIE: And where I think it ought to go is that it ends up that the part that's capital is the borrowed, and the part that -- and everything else is maintenance. MR. McNEES: But you've got to pay that debt service with something, and that debt service on a $50 million issue is pretty big. COMMISSIONER MAC'KIE: And so it may end up being 50/50. MR. OLLIFF: We can have that discussion in February of next year when we set budget policy. COMMISSIONER BERRY: I'll watch it on TV. CHAIRMAN CONSTANTINE: Somebody send me a memo. MR. VINCENT: Water projects are on Page H-9. And again, with water projects I sorted them so that the larger projects appear at the top. And you can see that the south county water plant is the number one project there. COMMISSIONER MAC'KIE.' Couldn't read it. MR. VINCENT: Wastewater projects are on Page H-10. If you have no questions on those, H-11 has the solid waste projects. The first one, the $15,000, are our follow-up costs for partial closure of Cell 6 and the fan system that they are currently working on. The next one, reserves, is Fund 471. And that is reserve money in case the board decides to opt for the early out contract with WC, Waste Management. And then the board would be responsible for closing that cell entirely and the post-closure Page 63 June 14, 2000 costs. On Page H-12 is the library impact fee fund budget. And the biggest part of that budget is the new north regional library. You'll notice that that library, in order to fund that library, we have to take loan proceeds in the amount of $5.4 million, and we'll be repaying that over 10 years. MR. OLLIFF: Out of impact fees. MR. VINCENT: That's correct, impact fees. MR. OLLIFF: Go ahead, Gary. MR. VINCENT: Parks impact fees, Page H-13, Fund 345, is the incorporated regional park impact fee. We are dedicating all of those impact fees toward the debt service of the north regional park, so there will be no projects in that fund. COMMISSIONER MAC'KIE: But that's regional? MR. VINCENT: Yes. That can only be spent on regional parks. Fund 346 -- MR. OLLIFF: That's the fund we're bleeding down, since we've combined those two, and we're just getting rid of that. COMMISSIONER MAC'KIE: Good. MR. VINCENT: Fund 346 is the combination of regional and community park impact fees in the unincorporated portion of the county. And that's where most of our projects will be funded from in the future. Again -- COMMISSIONER MAC'KIE: Anybody know what the Lely amphitheater is but me? I don't know what that is. MR. OLLIFF: Yes, you do. COMMISSIONER MAC'KIE: I do? MR. OLLIFF: You do. COMMISSIONER MAC'KIE: What is it? MR. OLLIFF: That's the property being donated by Lely to -- COMMISSIONER MAC'KIE: Oh, yes, I do. MR. OLLIFF: -- the county where we have to put some facility on it within the next 12 to 18 months in order to secure the property. The plan is -- COMMISSIONER BERRY: What's the location exactly?. MR. OLLIFF: Directly adjacent to the Edison Community College property. COMMISSIONER MAC'KIE: Out by Edison, that land that we Page 64 June 14,2000 CHAIRMAN CONSTANTINE: It's an 18,000-seat amphitheater. MR. VINCENT: Another addition in this year's budget is -- you'll see on Page H-16, there is a description of each project that hopefully should answer any of your questions. COMMISSIONER MAC'KIE: There you go. MR. VINCENT: Then on Page H-17 is a summary of all capital parks projects that shows all funds and what the total cost would be for each project across all the funds. MR. OLLIFF: Just a note, a good department. If you look at the right-hand columns, they've got a lot of numbers in the forecast columns and not a lot of corresponding numbers in the '01, meaning they don't carry forward money. They spend their money and they build their projects. MR. VINCENT: If there are no questions about parks, on Page H-19 are the TDC beach renourishment projects. And you saw those yesterday. They are not different from what you saw yesterday. CHAIRMAN CONSTANTINE: This does not include the ones that were renewed by the TDC? COMMISSIONER MAC'KIE: And by the board yesterday, so -- MR. VINCENT: I can't answer that question. It does -- it includes all the projects that were presented to the TDC. CHAIRMAN CONSTANTINE: Mr. Olliff, will you remove -- if there are any items here that were rejected by the TDC and/or rejected by the board, will you make sure they're removed? MR. OLL. IFF: Yes, sir. CHAIRMAN CONSTANTINE: Thank you. MR. VINCENT: On Page H-23 is the EMS impact fee fund. We have two EMS stations which are budgeted next year. The East Naples Station 19 and Station 21, Grey Oaks. We are showing loan proceeds in order to be able to pay for those projects of $835,000, and the corresponding debt service of 398,000. If there are no questions, the remaining capital funds, the Ochopee Fire and Isle of Capri, those impact fee funds are there for the eventual purchase of capital equipment or buildings. There is not enough money in there to do that at this time. The correctional facility impact fee is also building reserves for the eventual construction of a correctional facility. The road assessments receivable fund on Page H-27 is used Page 65 June 14,2000 to make intrafund loans for things as the Bayshore District and the Radio Road Beautification District. And if there are no questions, that concludes the capital portion. CHAIRMAN CONSTANTINE: Thank you. Mr. Olliff, or Mr. Smykowski, anything you want to wrap up with? MR. SMYKOWSKI: Only to say this year, I apologize to the board in terms of getting your packages -- you're used to get them a little earlier. This year we were impacted dramatically by the fact that the constitutional officer budgets were not submitted until June 1. In prior years they were submitted on May 1. Therefore, we had a general fund roll-up and know the millage picture much earlier in the game. This year, it did not come until after that period. And as a result, we were making changes up and until last Thursday. COMMISSIONER MAC'KIE: And we gave them that special permission, just -- MR. SMYKOWSKI: Right, because-- COMMISSIONER MAC'KIE: -- to remind you, so that next year's, those of us who are here -- MR. SMYKOWSKI: Next year we could probably fall back to the May I submittal date. We've already had -- you know, you made your pay plan decision and talked about the two-year implementation, so that should be much simpler next year. That was the primary reason that we held off this year. COMMISSIONER MAC'KIE: That's right. CHAIRMAN CONSTANTINE: On Friday, 9:00 a.m., we'll do the general fund. When we work our way through those, then we'll do the constitutional officers. Unless there's anything else, we'll go and we'll see you all at 5:05 today. MR. SMYKOWSKI: Thank you. Appreciate your time today. Page 66 June ~4,2000 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 11:30 a.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL TIMOTI:Ff J. COI~STANTINE, CHAIRMAN .., ,. -...~ .... ATTEST. :?.?i.!~/?~:.~ii~WI,~GHT E. BROCK, CLERK These m~tes approved by the Board on c~'////~ presented or as corrected ; as TRANSCRIPT PREPARED ON BEHALF OF GREGORY COURT REPORTING SERVICE, INC., BY CHERIE' R. LEONE, NOTARY PUBLIC Page 67