Councilors Talk Budget

Council began the August 4th meeting with recognition of Daisy Martinez for ten years of service and Fidencio Mireles, Sr. for twenty years of service to the City of Marco Island.  

Yvette Benarroch, State Representative of District 81,spoke on the achievements made while in legislative session: $750,000 for biologic filters that remove PFAS and organic sediment and $350,000 for the San Marco Waterway Interconnect, which will restore water flow and oxygen levels. 

“That is $1.25 million for this City, which is part of my district.” Other wins across her district included $550,000 for the Naples Basin Stormwater improvements. $3.75 million for Venetian Bay seawall replacement. $400,000 for a high-water fire engine. $310,000 for Baker Senior Center Mental Health and Dementia care for seniors and veterans. $300,000 for the Holocaust Museum exhibit and security. $1,000,000 for courthouse generator back-up and $100,000 for license plate readers. “These were priorities on the cities and counties I represent,” said Benarroch. 

On August 7th at 5:30 PM, Benarroch will hold a town hall at City Hall with Commissioner Rick LoCastro as her guest.  

Instead of a report, City Manager Mike McNees said there is an underlying conversation that some sort of corruption is going on with staff that no one knows about. “Frankly, if you have evidence of that, bring it forward.”There is going to be an open forum with the City Manager on Fridays at 9:00 AM at Ori’s. Buy your own coffee. 

Council Chair EricBrechnitz asked the City Attorney about Workman’s Comp issues that appear unresolved since 2020. Gabriel explained these cases can’t be ‘closed’ as they can come back because new health-related issues can arise that weren’t originally identified.There is no calendar on them. Councilor Deb Henry concurred, saying she was a union contractor for 30 years and had claims for 15 years for exactly that reason. 

Councilor Tamara Goehler noted that during the building permit review of the annex building, the fire marshal required significant modification to the existing stairwell, leading to design changes involving a load-bearing wall. This revision caused delays, increased design efforts, and resulted in a $193,421 change order. Goehler asked for an explanation. 

City Water and Sewer General Manager Jeff Poteet explained that an inspection did not reveal issues that a further inspection found. When asked why the space was renovated again, he explained that the use of the space changed. What the fire department needed when they were housed in the space and what the water and sewer administration requires is vastly different. “The setup was not conducive to a good workflow,” Poteet said. “There are significant changes to the design and the cost of the renovations, which will be presented at the next meeting.”    

McNees added that there were minor renovations to the space when the fire department needed to move in as the fire station was being torn down. “We basically put in showers and sleeping quarters. We would then do the major renovation and move the utilities.” The $190,000 was put in the report, but that actually happened over a year ago, and it has been reflected in reports. 

Council moved on to the LCEC franchise fee. Assistant City Manager Casey Lucius explained this particular item. In 2004, the city passed ordinance 04-18 establishing an LCEC franchise fee payable to the city at five percent. The fee is charged to LCEC for the non-exclusive right to construct, operate, and maintain easements and rights of way in other public spaces to place electric lights and power facilities. However, in 2009, the city reduced the fee to 3.6% and then to zero in October 2009.“Today, as we've talked about in previous budget workshops, in an effort to diversify revenue for the city's general fund operations, the LCEC franchise fee at 3% can be amended or terminated at any time through 2034,” said Lucius. “The LCEC franchise fee will generate approximately 1.5 million dollars in revenue in FY26,and the impact on residents will be an additional 3% on their electric bills. The average electric bill in Marco Island is $229 a month, so that would represent an increase of $6.87 per month.”LCEC Account Executive Tricia Dorn explained further. “A franchise fee is imposed by governmentbodies and utilities are required to collect the fee for the right to use the right of way for infrastructure in accordance to the franchise agreement. The franchise fee is collected through the LCEC utility bill and passed directly on to the City of Marco Island.” 

Henry said she supports the move but wants to be sure the millage would then be adjusted to reflect this. “We need to diversify how we get money. It can't all be from property taxes.”The City Attorney explained there were no restrictions on how the City could spendthe money. Councilor Darrin Palumbo commented, “Raising property taxes and taxing those who are not here for six months and then paying the burden of it who do not use any of our services is undue burden.” Councilor Stephen Gray countered that people not here for six months are still enjoying the appreciation on their homes. 

Brechnitz pointed out that there were a few things they needed to understand, like how to calculate the spending cap. Palumbo said it might be woven into the budget talks, as this was just the first reading and would need a second reading before passing. Councilor Bonita Schwan made a motion to approve, which was seconded by Henry. The first reading motion passed 4-3.  

Marco Island Police Chief Frazzano approached council to explain the school resource officer program. She stated that following the tragedy at Marjory Stoneman Douglas High School, the 2018 Public Safety Act was passed, requiring every public school to have at least one armed safe school officer on campus. These SROs become mentors and trusted adults on campus. They connect with students not just during emergencies, but through everyday interactions, greeting kids in the morning, assisting with drills, visiting classrooms, and being someonethe students can turn to when they need guidance or support. Frazzano said for fiscal year 25, we are receiving $44,008 based on 1,039 students across our three schools. All councilors were appreciative of the Marco Island Police Department and the SRO officers. Motion passed 7-0. 

The topic of the DOGE request by the state was brought up. A questionnaire was completed, but Councilor Gray commented Collier County was seeking DOGE’s full review of operations. He said it was free insight into our operations.