ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE AGENDA. June 14, :00 am City Hall Room 100

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1 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE AGENDA June 14, :00 am City Hall Room 100 Members: Alternate: Charlie Gerdes, Chair, Ed Montanari, Vice Chair, Darden Rice, Amy Foster Gina Driscoll Support Staff: Kewa Wright, Administrative Aide to City Council A. Call to Order B. Approval of Agenda C. Approval of Minutes 1. May 31, 2018 D. New/Deferred Business 1. June 14, 2018 a. Approval of Draft Consolidated Plan and Proposed Budget (Joshua Johnson) b. Utility Rate Study (Claude Tankersley/Anne Fritz) F. Upcoming Meetings Agenda Tentative Issues 1. July 12, 2018 a Management Evaluation (Boriana Pollard) b. Utility Rate Study (Claude Tankersley/Anne Fritz) G. New Business Item Referrals H. Adjournment

2 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE Minutes May 31, :00 City Hall Room 100 Present: Chair Charles Gerdes, Vice Chair Ed Montanari, Darden Rice, Amy Foster, and Gina Driscoll (alternate). Also: Council Member Brandi Gabbard, Chief Assistant City Attorney, Jeannine Williams; City Administrator, Dr. Kanika Tomalin; Assistant City Administrator, Tom Greene; Procurement and Supply Management Director, Louis Moore, Budget and Management Director, Elizabeth Makofske, Grants Officer, Shrimatee Ojah Maharaj, Administrative; Small Business Liaison Manager, Jessica Eilerman; Economic Development Specialist, Eric Lavina; Administrative Aide to City Council, Kewa Wright; Senior Deputy City Clerk, Cathy E. Davis A. Call to Order Chair Gerdes called the meeting to order at 8:01 am with the above persons present. B. Approval of Agenda CM Rice made a motion that the agenda be approved. All were in favor of the motion. C. Approval of Minutes May 17, 2018 CM Rice made a motion that the minutes be approved. All were in favor of the motion. D. New/Deferred Business 1a. Quarterly Grants Report Ms. Ojah Maharaj provided the committee with an overview of the 2 nd Quarter Grants Report (January 1, 2018 March 31, 2018). In this fiscal period the City received 8 grants totaling approximately $2.8 million. Some of the major grants include: FDOT Grant for the Albert Whitted Airport Hangar Redevelopment Project (approximately $1.6 million) SWFWMD Grant for the Stormwater Management Master Plan ($900k) Pinellas County BP Funding for Water Resources Department: Flow Monitoring Devices ($243, 902)

3 The Grants Working Group reviewed 21 grants. Of those 21 grants, the City received seven, is awaiting the results on two and did not receive nine. Of the nine grants the City did not receive, three were considered ineligible by the grantor which later focused on smaller communities, and one of the grants was withdrawn by the grantor due to funding. Additionally, of the 21 grants reviewed, the City did not apply for two of them and one of the grants is due for submittal in August For Q1 and Q2, the City has received 18 grants totaling $7.9 million. The Arts & Cultural Affairs and Other Community Partners recently submitted a $1 million grant with a $150k match to Bloomberg Philanthropies, Public Art Challenge This is for a 1.3- mile project encompassing the Skyway Trail. Urban Affairs and Pinellas County Urban League submitted a $650k grant to the Obama MBK Alliance for the Cohort Champions Program Expansion. The City submitted various grants related to Hurricane Mitigation to the Florida Division of Emergency Management (a list of projects was provided). These projects go through the Pinellas County Local Mitigation Strategy Committee to be graded/ranked, and then sent to the State for review. There were a few grants received that will be provided in the Q3 report. CM Rice asked for clarification regarding the match needed for the Bloomberg Philanthropies grant. Ms. Ojah Maharaj explained that $100k is staff time and $50k is from various private sector groups. CM Montanari inquired about the acceptance of a $400k FDOT grant that City Council approved for Albert Whitted Airport and what was the status. Ms. Ojah Maharaj explained that staff will be applying for the grant within the next couple of months. CM Montanari also asked if the Obama MBK Alliance grant and the $1.4 million match can be expounded upon. Mr. Greene explained that their (Obama MBK Alliance) investment would be an additive to what we have already invested in FY18 and FY19. CM Gerdes inquired if grant resources are becoming more available due to the number of grants the City has been awarded. Ms. Ojah Maharaj explained resources are becoming more available depending on the category of the grant (i.e. Opioid, Housing and Infrastructure). CM Gerdes asked if the committee could be updated when various projects related to Hurricane Mitigation have been modified through the Pinellas County Local Mitigation Strategy Committee. Ms. Ojah Maharaj stated she will keep the Council Members informed. 1b. SBE Contracts 2 nd Quarterly Report Ms. Eilerman addressed the committee and introduced Eric Lavina, Economic Development Specialist. Ms. Eilerman shared two primary areas they have been focused on since the last meeting: 1.) increasing awareness and participation in the current SBE program and 2.) enhancing the program s administration, coordination and technical assistance. The SBE Quarterly Report consists of two Tiers. In the Tier One report (encumbrances of City funds directly to certified SBE s), we are a little over 5.5% in total spending. These are contracts executed between the City and the prime contractor. In the Tier 2 report (compensation paid to City certified SBEs), Ms. Eilerman explained that due to the variety of data collected

4 there is no mechanism for accurately tracking Tier 2 (which means the total amount of spending in Tier 1 is actually more than what is reported). She stated that staff is in the process of identifying a solution for improvement. Ms. Eilerman provided the committee with list of SBE projects for FY18. These projects go before the SBE Committee to determine the level of SBE participation. The Action Taken percentage that is displayed on the project list indicates the percentage of SBE participation. The current SBE certifications from January -May is 398, and that is within a five-county radius. Ms. Eilerman stated that outreach is a very important component of the SBE Program and provided the committee with a list of planned events for recruiting and promoting the program. As indicated earlier in her presentation, Ms. Eilerman provided more details on ways staff is improving the SBE Program. She outlined and explained the different components within the Administrative Updates and provided a current timeline for the Disparity Study. CM Gerdes informed the committee about the two other new business items on the agenda and how they overlap with one another and the SBE presentation. He suggested that questions be synthesized from Ms. Eilerman s report and the two new business items for efficiency purposes. CM Driscoll commented on the SBE Program presentation and stated that it was encouraging to see the efforts made in improving the program. She asked if staff can point out specific actions that have taken place to address outreach efforts relating to minorities. Ms. Eilerman explained that most of their efforts have been targeted toward small businesses. However, there are targeted initiatives planned for this year that directly address minorities. In addition, a summer listening tour is underway to hear from potential, current and former SBEs. Ms. Eilerman also discussed the certification and recertification process and how The Greenhouse educates potential and current SBE s on how to navigate through the process. CM Driscoll also stated that the One Community Plan initiative is a great way to expand outreach efforts, as well as reaching out to the People s Budget Review regarding their New Deal initiative. Mr. Lavina also reiterated some of the outreach efforts that have been implemented on a regional level. CM Driscoll inquired if we are looking at partnering with the County on the Disparity Study to share the cost. Dr. Tomalin stated that the County is not interested in partnering at this time. CM Rice asked for clarification on the difference between the SBE project list and the Purchase Order list that was provided in the backup. Ms. Eilerman explained that the Project List are those items that have gone before the SBE Committee for SBE participation and the Sheltered Projects are those that are 100% SBE participation. There was some discussion about implementing a strategic communication plan to reach those who may not be aware of the SBE program. CM Montanari inquired about the length of time it takes to be certified. Mr. Lavina explained the process can take two days or two weeks, depending on the volume of applications and if the vendor s documentation is straightforward. In addition, when certification is due to expire, Mr. Lavina notifies the vendor via to recertify. Mr. Lavina also shared some of the information that is requested by the City to receive a certification.

5 There was a brief discussion on how the new software will be able to obtain Tier 2 data for compensation paid to City certified SBEs. CM Gerdes suggested that the committee be updated after the summer listening tour. 1c. A Discussion to Develop an Action Plan to Address Inequity in Contracts Awarded through the SBE Program This item was discussed in the SBE Quarterly Report. 1d. A Discussion Supporting Small Businesses and Outreach This item was deferred to a later meeting. E. Upcoming Meetings Agenda Tentative Issues 1. June 14, 2018 a. Approval of Draft Consolidated Plan and Proposed Budget (Joshua Johnson) b. Utility Rate Study (Claude Tankersley/Anne Fritz) 2. July 12 a Management Evaluation (Boriana Pollard) b. Utility Rate Study (Claude Tankersley/Anne Fritz) F. New Business Item Referrals G. Adjournment There being no further business, the meeting was adjourned at 9:21 am.

6 BUDGET, FINANCE AND TAXATION COMMITTEE PENDING/CONTINUING REFERRALS Topic Draft Consolidated Plan and Proposed Budget. Approval of draft for publication and comment Return Date Date of Referral Prior Meeting Referred by Staff 6/14/2018 Annual Joshua Johnson Notes June 14, 2018 Utility Rate Study 2018 Management Evaluation 6/14/18 7/12/18 7/12/2018 7/26/2018 Annual 11/9/17 Annual 10/12/17 1/25/18 4/12/18 Ordinance Claude Tankersley/Anne Fritz Boriana Pollard Issuance of Bonds for the Public 7/26/18 Anne Fritz Utility (Water Resources) Adding a Skating Rink to the Lisa Wheeler Southside CRA to the Weeki Wachee 7/26/18 5/3/18 Bowman Fund Project List Adding a Exercise Zone and Lisa Wheeler Playground in Broadwater Park to 7/26/18 5/3/18 Bowman the Weeki Wachee Fund Project List Quarterly Financial Reports Q3: 8/9/18 Q1: 2/8/18 Anne Fritz Quarterly City Council Q4: 11/15/18 Q2: 5/17/18 Tom Greene Quarterly Grant Reports Q3: 8/23/18 Q1: 2/22/18 Shrimatee Ojah Quarterly City Council Q4: 11/29/18 Q2: 5/31/18 Maharaj Quarterly Report SBE contracts Q3: 8/23/18 Q1: 1/11/18 Quarterly Ordinance Jessica Eilerman Q4: 11/29/18 Q2: 5/31/18 Adminisration to come back with marketing process and program options. Committee decided to discuss after the 2017 elections and discuss in Feb Staff will present a list of all City department accreditdations. 1/25/18: Staff will come back with a draft scope of work for the Sanitation Department 5/31: Will come back to the committee after the summer listening tour

7 Revising Fiscal Policies 8/23/18 Fritz /Makofske Minority Business Enterprise and consideration of a disparity study Aug/Sept 8/24/17 1/11/18 2/22/18 Montanari Louis Moore 2019 Management Evaluation 10/11/18 Annual Ordinance Boriana Pollard 8/24/17 referral from Public Hearing SBE Ordinance. 1/11/18: Will develop a scope of work and return in 6 weeks, 2/22/18: Vendor is slated to be selected in Aug/Sept Health Insurance Renewal and Status update on current year health plan 12/13/18 Annual BF&T Chris Guella and Vicki Grant 2019 Property Insurance Renewals Mar 19 Annual Blaise Mazzola/Chris Guella External Audit Mar 19 Annual Anne Fritz Social Action Funding Program Mar 19 Annual Theresa Jones Policy change in where we allocate revenue generated from foreclosure auctions and/or dispoal of City owned properties TBD 2/15/18 Amy Foster A broad discussion regarding strong community benefits in agreements with developers, enacting ordinances and policies and other methods to establish baseline community benefits for future projects TBD 4/5/18 Lisa Wheeler Bowman Discussion of exceptions for legal defense fund suggested by Free Speech for People and process for retaining outside legal counsel TBD 11/2/17 Rice

8 Discussion of a General Fund transfer TBD 1/26/17 8/17/17 City Council COW 1/26/17 Kornell Motion for FY19 initial budget presentation to include alternative to a proposed budget. Customer Assistance Programs for Utilities TBD 10/26/17 Kim Streeter CM Gerdes a motion made to ask Administration to look into increased marketing for the voluntary assistance programs to rate payers, increased marketing for the one day a week garbage pick up and reimplementing the LIFT UP program Discussion for use of Tourist Development Tax, including Arts Funding Follow up TBD 8/21/14 City Council Joe Zeoli Audit of Jordan Park TBD 3/1/18 5/17/18 Steve Kornell A broad discussion supporting small business and outreach TBD 4/5/18 Lisa Wheeler Bowman Meeting to include David Downing of the TDC. Gerdes to follow up A motion was made for staff to analyze audit and report back in 60 days(july/sept.)

9 BUDGET, FINANCE & TAXATION COMMITTEE WEEKI WACHEE PROJECT LIST June 14, 2018 TOPIC DATE REFERRED REFERRED BY RETURN DATE STAFF RESPONSIBLE SPECIAL NOTES Maximo Park Project Kornell TBD Jefferis Referred to COW on 7/14/16 Scheduled COW on 7/28/16 $150,000 allocated by council on 8/4/16. Still in process

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120 Today: BF&T meeting to discuss FY 19 draft rates 7/12/18: BF&T meeting to discuss FY 19 proposed rates 8/2 & 8/23/18: 1 st Reading & Public Hearing Utility rates Week of 10/1/18: Close on 2019 Bond Issuance 10/1/18: FY 19 retail & wholesale utility rates effective Begin billing Sanitation & Stormwater rates* 11/1/18: Begin billing Water Resources rates 4/1/19: Implement new Stormwater Rate Structure 2

121 Water 4.00% Reclaimed Water 14.50% Wastewater 8.50% Stormwater 10.00% Sanitation 5.25% 3

122 4,000 Gallons of Water & Wastewater Use/Month FY18 FY19 Draft Change Change Percent Change Water & Sewer Only Sanitation w/ Recycling $25.28 $26.61 $ % Potable Water $29.43 $30.61 $ % Wastewater $42.15 $45.73 $ % Stormwater $10.00 $11.00 $ % Reclaimed $26.72 $30.59 $ % TOTAL (Including Reclaimed) $ $ $ % (12% of Customers) 6.65% TOTAL (Excluding Reclaimed) $ $ $ % 4

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124 Water Wastewater Reclaimed Water FY % 1.50% 8.09% FY % 2.00% 7.50% FY % 3.50% 3.50% FY % 3.00% 3.00% FY % 2.00% 2.00% FY % 7.50% 7.50% FY % 2.50% 5.00% FY % 2.75% 2.75% FY % 3.75% 3.75% FY % 4.75% 4.75% FY % 3.75% 3.75% FY % 9.75% 4.25% FY18 (1/1/18) 9.25% 21.75% 25.50% FY 19 (draft) 4.00% 8.50% 14.50% Future Considerations: FY19 debt issuance and rate timing; 50% cash funding of capital by FY22 (FY18 at 10%); reclaimed water cost recovery (FY 18 at 68%) 6

125 COMPARISON TO NATIONAL TRENDS FY18 Water & Sewer rates increased 16.3% on 1/1/2018 7

126 Result of Council Capital Funding Policy: Estimated interest savings of more than $300 million for the 10-year CIP 8

127 COMBINED BILL COMPARISON BASED UPON 5/8 METER AND 4,000 GALLONS/MONTH 9

128 FY 2018 BILL COMPARISON: ST. PETERSBURG VS TAMPA NOTE: Bill calculations for Tampa reflect rates that have been in effect since October Since that time, the CPI W&S Maintenance Series has increased more than 34%. 10

129 WHOLESALE WATER: 4.6% increase (FY 18: 4.8%) Customer: City of Gulfport WHOLESALE WASTEWATER: 21.6% increase (FY 18: 4.2%) Customers: Cities of Gulfport, South Pasadena, Treasure Island, Bear Creek Sanitary Sewer District in Pinellas County; Ft. Desoto in Pinellas County; and Tierra Verde Utilities, Inc. Customer: St. Pete Beach 8.3% increase (FY 18: 28.9%) Monthly Capital Charge 8.3% increase (FY 18: 120.2%) O&M Rate per Million Gal 8.3% increase (FY 18: 3.2%) Future Considerations: Additional debt; greater cash funding of capital; each community s relative flow ratios (I&I reduction) Key Issue: Gulfport to begin paying 25% outside city surcharge in FY19; Administration recommends phasing-in over multi-year period (TBD) 11

FULL RECLAIMED RECOVERY OPTIONS Monthly Bill Impacts FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Full Cost Recovery by FY20: RW Rate Increase 25.5% 25.5% Monthly RW Bill $26.72 $33.53 $42.

130 FULL RECLAIMED RECOVERY OPTIONS Monthly Bill Impacts FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Full Cost Recovery by FY20: RW Rate Increase 25.5% 25.5% Monthly RW Bill $26.72 $33.53 $42.08 Full Cost Recovery by FY22: RW Rate Increase 14.5% 14.5% 14.5% 14.5% Monthly RW Bill $26.72 $30.59 $35.03 $40.11 $45.93 W&S Bill Impact ($) $0.36 $0.76 $0.40 ($0.01) W&S Bill Impact (%) 0.5% 0.5% (0.5%) (0.5%) NOTE: Extending timeline to achieve full cost recovery has little impact upon the typical water and sewer bill by FY22; Administration s recommendation is full cost recovery by FY22 12

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From To Change FY91-01 $4.50 $4.50 $0.00 FY02 $4.50 $5.00 $0.50 FY05 $5.00 $6.00 $1.00 FY06 $6.00 $6.15 $0.15 FY07 $6.15 $6.40 $0.25 FY08 $6.40 $6.65 $0.25 FY09 $6.65 $6.85 $0.20 FY10 $6.85 $6.85 $0.00 FY11 $6.

132 From To Change FY91-01 $4.50 $4.50 $0.00 FY02 $4.50 $5.00 $0.50 FY05 $5.00 $6.00 $1.00 FY06 $6.00 $6.15 $0.15 FY07 $6.15 $6.40 $0.25 FY08 $6.40 $6.65 $0.25 FY09 $6.65 $6.85 $0.20 FY10 $6.85 $6.85 $0.00 FY11 $6.85 $6.84 $-0.01 FY12-16 $6.84 $6.84 $0.00 FY17 $6.84 $9.00 $2.16 FY18 $9.00 $10.00 $1.00 FY 19 (draft) $10.00 $11.00 $1.00 Future Considerations: $1.4M annual debt service increase in FY 2019; $1.0M new annual debt service projected by FY23; CIP Master Plan complete in FY19, designs to begin FY20; residential tiered rate structure analysis in progress 14

133 Result of Council Capital Funding Policy: Estimated interest savings of approx. $100 million for the 10-year CIP 15

134 STORMWATER FEE COMPARISON 16

135 THINGS TO KEEP IN MIND WHEN DISCUSSING STORMWATER RATES Residential tiered rate structure analysis underway Includes impervious area update for non-residential Likely to produce positive benefits to the system New rate structure will be revenue neutral Intent is to implement new structure April 1, 2019 IT/Billing system changes, appeals process, etc. 17

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From To Change FY88 96 $18.20 $18.20 $0.00 FY97 05 $18.20 $16.35 $1.85 FY06 $16.35 $19.95 $3.60 FY07 $19.95 $21.15 $1.20 FY08 $21.15 $21.76 $0.61 FY09 $21.76 $22.33 $0.57 FY10 18 $22.33 $22.33 $0.00 FY 19 (draft) $22.

137 From To Change FY88 96 $18.20 $18.20 $0.00 FY97 05 $18.20 $16.35 $1.85 FY06 $16.35 $19.95 $3.60 FY07 $19.95 $21.15 $1.20 FY08 $21.15 $21.76 $0.61 FY09 $21.76 $22.33 $0.57 FY10 18 $22.33 $22.33 $0.00 FY 19 (draft) $22.33 $23.50 $1.17 Note: Rates above do not include the recycling fee instituted in FY 2015 intended to cover the cost of the curbside recycling program Future Considerations: Pinellas County tipping fee increases; recycling cost increases; debt service for the facilities improvement in FY22 19

138 SUMMARY OF KEY CHALLENGES Keeping reserves at minimum policy levels Reimburse Water Resources in FY18 for CNG project ($1.2M) Anticipated changes in cost structure FY19: County tipping fee set to increase, assume 5.77% per year FY20: Current recycling contract set to expire; assume $80/ton vs current effective rate of $0/ton Needed Capital Expenditures: Approx. $6.3 million borrowing in FY22 for facilities project Accelerated replacement of aged fleet 20

139 FY 2018 RESIDENTIAL RATE COMPARISON Note: Levels/types of service often vary significantly between communities 21

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141 4,000 Gallons of Water & Wastewater Use/Month FY18 FY19 Draft Change Change Percent Change Water & Sewer Only Sanitation w/ Recycling $25.28 $26.61 $ % Potable Water $29.43 $30.61 $ % Wastewater $42.15 $45.73 $ % Stormwater $10.00 $11.00 $ % Reclaimed $26.72 $30.59 $ % TOTAL (Including Reclaimed) $ $ $ % (12% of Customers) 6.65% TOTAL (Excluding Reclaimed) $ $ $ % 23

142 AFFORDABILITY ANALYSIS 24

143 EXAMPLES OF AFFORDABILITY PROGRAMS FOR CONSIDERATION Water Efficiency Rebate Programs WaterSense certified fixtures, toilets, and appliances Voluntary Donations Once a year calls for donations Bill round-up programs Temporary Assistance Program Short-term or one-time basis to prevent disconnection For households facing unexpected hardship Income-Based Bill Assistance (non-utility funds) 25

144 DISCUSSION & NEXT STEPS

St. Petersburg City Council BUDGET, FINANCE & TAXATION COMMITTEE AGENDA. Meeting of NOVEMBER 25, :00 AM City Hall Room 100

St. Petersburg City Council BUDGET, FINANCE & TAXATION COMMITTEE AGENDA Meeting of NOVEMBER 25, 2013 8:00 AM City Hall Room 100 Members & Alternate: Support Staff: Chair James R. Jim Kennedy, Jr.; Vice-Chair