ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE

AGENDA

January 11, 2018

8:00 am – City Hall – Room 100

Members & Alternate: Vice Chair Charlie Gerdes, Darden Rice, Ed Montanari, Amy Foster and Gina Driscoll (alternate) Support Staff: Kewa Wright, City Council Administrative Aide Cindy Sheppard, City Council Administrative Officer A. Call to Order B. Approval of Agenda C. Election of Chair and Vice Chair D. Approval of Minutes 1. December 14, 2017 E. New/Deferred Business 1. January 11, 2018

a. Continue discussion on Tiered Stormwater Utility Rate Development and Implementation – Scope of Services, Agreement and Proposed Costs (Claude Tankersley) b. SBE Contracts – Quarterly Report (Jessica Eilerman) c. Minority Business Enterprise & Consideration of a Disparity Study (Louie Moore)

F. Upcoming Meetings Agenda Tentative Issues 1. January 25, 2018 G. New Business Item Referrals H. Adjournment

ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE

Minutes

December 14, 2017

8:00 – City Hall – Room 100

Present: Committee Members - Chair James R. “Jim” Kennedy, Jr., Vice-Chair Charles Gerdes, Karl Nurse and Ed Montanari (alternate). Absent. Darden Rice

Also: Council Member Lisa Wheeler-Bowman; Council Member, Steve Kornell; Council Member, Amy Foster; Chief Assistant City Attorney, Jeannine Williams; Assistant City Attorney, Jane Wallace; Assistant City Attorney, Joe Patner; City Administrator, Dr. Gary Cornwell; Public Works Administrator, Claude Tankersley; Public Works Services Manager, Elizabeth Makofske; Billing and Collections Director, Tammy Jerome; Human Resources Director, Chris Guella; Benefits Manager, Vicki Grant; Administrative Aide to City Council, Kewa Wright; Senior Deputy City Clerk, Cathy E. Davis

A. Call to Order

Chair Kennedy called the meeting to order at 8:01 am with the above persons present.

B. Approval of Agenda

In connection with the approval of the December 14th meeting agenda, Council Member Gerdes made a motion that the agenda be approved as written. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse, Nays. None. Montanari (alt). Absent Rice

C. Approval of Minutes

1. November 9, 2017

In connection with the approval of the November 9th meeting minutes, there were a few corrections. The word “front” was changed to “fund” under item 1(a) and Council Member Gerdes was changed from being absent to present. CM Gerdes made a motion that the minutes be approved as revised. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse, Nays. None. Montanari (alt). Absent. Rice

D. New/Deferred Business

1(a & b). Update on current year health insurance plan and 2018 health insurance renewal. Chris Guella started the discussion by reminding the committee of the upcoming insurance renewal effective April 1, 2018. He introduced the staff that was present and Chuck Tobin of Arthur J. Gallagher & Co., who provided the committee with the health insurance update and renewal.

Mr. Tobin provided information on original vs updated projections on claims for 4/17-3/18. He showed where the plan had improved over the last 6 or 7 months by displaying the original projection vs. the updated with actual projection for medical claims, pharmacy claims and total claims. Mr. Tobin discussed the tier levels in pharmacy claims, and how there has been a movement toward the lower tier (generic) prescription drugs. He provided information on the projected annual claim costs for fiscal years ending in 2018 and 2019, as well as the projected fixed costs for those years. The associated fixed costs include stop loss rates and administrative fees paid to UHC. This year the total plan and fiscal year forecast is for a 2.8% increase in premium rates. CM Nurse inquired where the funds go when we are under budget. There was extensive discussion on this item, wherein Dr. Cornwell and Mr. Tobin explained how the reserves in the health insurance fund are used to mitigate any substantial increases the following year. Mr. Tobin provided an overview of the rate and contribution history for City employees. Most employees are enrolled in the Choice Plan. That rate will go up from $167.41 to $172.09 for employee only. Employee plus one will increase from $359.95 to $370 and a family coverage will increase from $473.78 to $487.01. Mr. Tobin provided the highlights of the City’s Wellness Program. Mr. Tobin provided an overview of the prescription drug plan and discussed initiating a PBM (Pharmacy Benefit Management) search in January 2018. He also pointed out the advantages and disadvantages of having a separate pharmacy manager. CM Gerdes made a motion to approve the 2018 insurance renewal package. Approved unanimously. Ayes: Kennedy. Gerdes. Nurse. Nays: None. Montanari (Alt). Absent. Rice 1(c). Tiered Stormwater Utility Rate Development and Implementation – Scope of Services, Agreement and Proposed Costs. Attorney Wallace started the discussion by briefing the committee on why the Tiered Stormwater Utility Rate Development and Implementation Project was brought back to the committee. She stated that the original proposed cost discussed at the July 27, 2017 BF&T meeting was approximately $250,000 and the current estimated cost is $568,930. Mr. Tankersley further clarified that at the July meeting, the scope of work was expanded during the course of the meeting, however the additional costs was not addressed at that time. Mr. Andy Burnham, Financial Services Vice President of Stantec addressed the committee with a presentation discussing the background and basis for study of the tiered rate system, the team assembled to accomplish the work, the task and scope of work identified in the RFQ and reconciling the schedule and cost that was previously discussed at the July meeting. Mr. James Hale, GIS Manager of Stantec discussed the scope of the work in detail that explained image processing, impervious area calculations and implementation activities. Mr. Burnham explained in detail the rate analysis, public outreach program as well as portions of the implementation activities. In addition, Mr. Burnham also provided a breakdown of the cost estimate by task, per the scope of the RFQ that included sub-consultant services. He also identified the 4 tasks that were discussed at the July meeting, which resulted in the original proposed cost of $250,000. Mr. Burnham and Mr. Hale discussed some cost containment options that could save the City money by reducing the scope of work and deferring some aspects of the project to a later date.

CM Kennedy inquired what would be the savings if the project was implemented in October of FY19 as opposed to October of FY18, using the cost containment options. Mr. Hale stated that if this project was delayed to FY19 there will be a savings in the sub-consultant services of $40k. There was some discussion as to whether commercial properties were paying the same stormwater rate as residential single family properties. Ms. Jerome explained that single family residential parcels all pay a flat rate of $10. If a property is not considered a single family residential parcel, it is measured and billed a prorated amount based on the impervious square feet. CM Gerdes inquired about delaying the residential tiered mapping and just update the commercial impervious area to generate revenue. In addition, he asked if it will be more expensive to split the GIS mapping by updating the commercial parcels and then later introduce the residential tiered system. Mr. Hale provided an explanation on how the imagery process works and the importance of implementing both residential and commercial GIS mapping simultaneously for more accurate data. There was extensive discussion on whether there is an actual cost benefit to residential customers if implemented. CM Nurse made a motion to approve the project with the cost containment options with new fee of $325k. CM Nurse amended his motion to add the $45k web application. CM Nurse withdrew his motion. CM Gerdes made a substitute motion for staff to come back to BF&T on January 11, 2018 with a consolidated, collaborative package with the full scope of work, timeline and assignments of staff. Approved unanimously. Ayes: Kennedy. Gerdes. Nurse. Nays: None. Montanari (Alt). Absent. Rice 1(d). Discussion of exceptions for legal defense fund suggested by Free Speech for People and the process for retaining outside legal counsel. CM Kennedy started the discussion by reading into the record an email from CM Rice regarding legal assistance for defend our democracy. CM Rice stated in part that new developments and relevant information will be forthcoming next month in order to have a more productive conversation. CM Kennedy stated that since he will not be a part of future discussions (due to term limits), he would like his colleagues to keep in mind a few things. The fundraising that FSFP is planning to do on behalf of the City, how will it differentiate from their regular fundraising? Who will be collecting and holding the funds? How will the funds be invested? What will be the reporting process when funds are obtained and what will be the auditing process? The other concern CM Kennedy mentioned relates to retaining outside counsel. He stated that FSFP is vested in this issue and he wants to be sure that the counsel that is selected has the best interest of the City in mind. CM Gerdes inquired with legal if they were being consulted regarding the discussions that CM Rice is having with FSFP. Attorney Patner answered that he did not have any involvement on discussions that CM Rice have had with representatives from FSFP. CM Gerdes suggested that legal inform Council Members to notify them or have them present when/if they have communications with FSFP regarding this matter.

E. Upcoming Meetings Agenda Tentative Issues 1. January 11, 2018

a. Follow-up Discussion on the Tiered Stormwater Utility Rate Development and Implementation. b. Quarterly Report – SBE Contracts (Jessica Eilerman) c. Minority Business Enterprise & Consideration of a Disparity Study (Louie Moore)

2. January 25, 2018 F. New Business Item Referrals G. Adjournment There being no further business, the meeting was adjourned at 10:34 am.

Topic Return Date Date of Referral

Prior Meeting

Referred by Staff            Notes

Tiered Stormwater Utility Rate Development and Implementation ‐ Scope of Services, Agreement and Proposed Costs

1/11/18Attorney Jane 

Wallace

Quarterly Report ‐ SBE contracts1/11/18 Ordinance Jessica Eilerman

8/24/17 ‐ Ordinance 293‐H ‐ quarterly reports to BFT

Minority Business Enterprise and consideration of a disparity study 1/11/18 8/24/17 Montanari Louis Moore

8/24/17 referral from Public Hearing ‐ SBE Ordinance

2018 Management Evaluation

2/8/18 Annual 10/12/17 Ordinance Brad Scott

Committee decided to discuss after the 2017 elections and discuss in Feb. 2018. Staff will present a list of all City department accreditdations.

Quarterly Financial Reports Q1: 02/8/18 Q2: 5/10/18 Q3: 8/9/18 Q4: 11/15/18

Quarterly City CouncilAnne FritzTom Greene

Quarterly Grant Reports Q1: 2/22/18 Q2: 4/26/18 Q3: 8/23/18 Q4: 11/29/18

Quarterly City CouncilShrimatee Ojah‐

Maharaj

2018 Property Insurance Renewals Mar‐18 AnnualBlaise Mazzola/Chris 

Guella

External Audit Mar‐18 Annual Anne Fritz

BUDGET, FINANCE AND TAXATION COMMITTEEPENDING/CONTINUING REFERRALS

January 11,  2018

Draft Consolidated Plan and Proposed Budget. Approval of draft for publication and comment

Jun‐18

2019 Management Evaluation 10/11/18 Annual Ordinance Brad Scott

Discussion of exceptions for legal defense fund suggested by Free Speech for People and process for retaining outside legal counsel

TBD 11/2/17 Kennedy

Refer PILOF discussionTBD 1/26/17 8/17/17

City Council ‐ COW 1/26/17

KornellMotion 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 re‐implementing the LIFT‐UP program

Utility Rate Study TBD7/27/17 9/28/17 11/9/17

Claude Tankersley/Anne Fritz

Adminisration to come back with marketing process and program options.

Water Utility Rates

10/26/17

CM Nurse made a motion to move forward with making the stormwater rates for FY18 a $10 monthly fee.  

2019 Management Evaluation10/2016 by ordinance

City Council Brad Scott

2019 Health Insurance Renewal and Status update on current year health plan

12/13/18 Annual BF&TChris Guella  and 

Vicki Grant

Discussion for use of Tourist Development Tax, including Arts Funding ‐ Follow‐up

TBD 8/21/14 City Council Joe ZeoliMeeting to include David Downing of the TDC. Gerdes to follow‐up

BUDGET, FINANCE & TAXATION COMMITTEE WEEKI WACHEE PROJECT LIST

January 11, 2018

TOPIC

DATE REFERRED

REFERRED BY

RETURN DATE

STAFF RESPONSIBLE

SPECIAL NOTES

Youth Sports Field at Thurgood Marshall Middle School

10.06.16 CM Wheeler-Bowman

TBD McBee/Jefferis

Maximo Park Project 05.12.11 Kornell TBD McBee/Jefferis Referred to COW on 7/14/16 Scheduled COW on 7/28/16 $150,000 allocated by council on 8/4/16

Planning & Economic Development Greenhouse Memorandum

Budget, Finance & Taxation Committee: To: The Honorable Members of City Council From: Jessica R. Eilerman, Greenhouse Manager & Small Business Liaison Date: January 11, 2018 Subject: Small Business Enterprise (SBE) Quarterly Report

Program Participation Numbers

Total Certifications 373

Total FY 17 YTD New

Certifications 50 13%

Total FY 17 YTD Re-

Certifications 56 15%

Certification Breakdown, by geography

ST. PETERSBURG COUNTS

Midtown SBEs 30 8%

St. Petersburg 124 33%

COUNTY COUNTS

Pinellas County 219 59%

Pasco County 19 5%

Polk County 12 3%

Hillsborough County 107 29%

Manatee County 16 4%

Certification Breakdown, by ethnicity

Ethnic Group Count of Business

Blank 1

Asian 9

Black 64

Hispanic 38

Native American 4

Other 6

White 257

Participation Goals

2017 Goal: 8% SBE Participation

Actual: 8.6%

SBE Purchase Commitments

Fiscal Year

SBE Contracts

SBE Spending

Total

Total

Spending

SBE

Percentage

FY 15 449 $14,708,758 $246,804,235 6.0%

FY 16 411 $9,962,824 $165,213,290 6.0%

FY 17 362 $10,366,559 $120,531,953 8.6%

2017 Outreach Recap

- Pinellas County Economic Development Reverse Trade

Show

- NIGP UACDC Reverse Trade Show

- NIGP Trade Shows

- Minority Enterprise Development Week Conference

- Minority Enterprise Development Week Conference

Business Bus Tour

- Best Businesses in the 'Burg Showcase

- Hillsborough County 4th Annual Open Doors

Procurement Event

- Ajax Outreach Sessions for Police HQ Project (3-4

sessions?)

- Pre-Bid Meetings

Program Update

- Staffing

- Committee participation

Looking Ahead

- 2018 Goal: 10%

- Outreach

- Partnerships with regional partners

- Disparity Study, focused minority contracting initiatives

Abbreviated Program History

The City adopted its first MBE Ordinance in 1982. Over the next eight years, a variety of

changes and modifications were made due to changing legal opinion and defensibility. In 1989

the City commissioned a disparity study regarding the nature and extent (if any) of

discrimination against Minority-and Women-Owned Business in St. Petersburg. The results of

the study confirmed the need to re-establish the MBE Program for construction projects for

black-owned businesses only. The data for the procurement of goods and services was not

analyzed at that time. The MBE construction program was re-established by ordinance in 1990.

In June 1998, the City commissioned a second Disparity Study. The study conducted by Policy

Research Consulting, Inc. concluded that there was no disparity in the City’s goods and services

procurement and construction programs. Consequently, it was determined by the City Attorney

that the City’s race and gender conscious Minority/Women Business Enterprise (M/WBE)

initiative was no longer legally defensible. In November 1999, City Council repealed the

M/WBE Construction Program and, in 2001, adopted a race and gender neutral Small and

Disadvantaged Business Enterprise (SDBE) Program.

The intent of the SDBE program was to enhance procurement opportunities for certified SDBEs

domiciled within city limits. On September 21, 2006, the City Council approved Ordinance 789-

G which created a SBE program. The SBE program replaced the SDBE program to create a more

effective and regional program. The intent of the SBE program is to foster growth in the

economy of the City, by affording small businesses an opportunity to gain the experience,

knowledge and resources necessary to compete and survive, both in the government as well as in

the private procurement and construction contracting arena.

Beginning in 2015 there has been an increased desire from the community to examine an

expansion or addition to the current SBE program into a W/MBE program. To do this, a disparity

study will need to be commissioned and conducted. Until such a study is commissioned, the

Greenhouse/Economic Development staff has prepared the recommendations outlined herein to

update and strengthen the current SBE program. Discussions with members of the SBE

Committee, key impacted City Departments as well as with members of the public have been

held to incorporate suggestions and feedback as appropriate.

CC: Mayor Kriseman

Deputy Mayor Tomalin

Alan DeLisle

Dave Goodwin

Louis Moore

Brejesh Prayman