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Minutes 08-31-04MINUTES OF CiTY COMMISSION CAPITAL IMPROVEMENT PLAN WORKSHOP HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BLVD., BOYNTON BEACH, FLORIDA, ON TUESDAY, AUGUST 31, 2004 AT 6:30 P.M. Present Jerry Taylor, Mayor Mike Ferguson, Vice Mayor Bob Ensler, Commissioner Mack McCray, Commissioner Carl McKoy, Commissioner Kurt Bressner, City Manager Janet Prainito, City Clerk I. Call to Order Mayor Taylor called the meeting to order at 6:34 p.m. and asked Mr. Bressner to begin the presentation. Mr. Bressner first distributed an update on Hurricane Frances that had been furnished by Assistant Fire Chief Jim Ness, who had been tracking the storm. Commissioner McCray requested that the Commissioners be kept updated by fax, which Mr. Bressner agreed to do. II. Capital Projects The General Fund will be first addressed, which is a continuation of what the Commission had already authorized. This would include the Intracoastal Park Clubhouse, the Wilson Pool and Center, the Jaycee Park acquisition and other long- term maintenance items. There are some projects that will not be moving forward that include the relocation and/or demolition of the Civic Center. The Commission will be asked to consider spending funds to do some necessary work to the Civic Center. There are no funds included for the Old High School except for the stabilization of the building. It was determined that funds for this purpose would come from other sources. The CRA's bond issue for $20 million does not include funding for the Old High School. Diane Reese, Finance Director, distributed updated figures for the CIP Fund. It is projected that as of September 30, 2004 there will be $11.6 million in the CIP Fund. After all the construction projects move forward during 2004/2005, there should still be $3.9 million remaining that would be carried over to 2005/2006. After the projects earmarked for 2005/2006 come on line, there would be $1,042 million remaining at the end of that fiscal year. It is anticipated that additional revenue of $2.6 million would be realized in 2006/2007 from the sale of the Public Works property. At the end of 2007/2008 it is projected that $755,750 would be remaining. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 The biggest items include the costs for the police facility and other large projects beyond the five-year period. Mr. Bressner pointed out that there is no timeline for these projects at this time. Commissioners were referred to the CIP binder. The revenue sources were listed on page 1 and the projects were on pages 2 through 7. Utility projects started on page 8. Mayor Taylor inquired what "utility reserves/bond issue" on page 1 referred to. Ms. Reese explained that this included reserve money for the first year of the utility projects and a bond issue would have to be done next year. Commissioner Ensler inquired if there was a breakdown of this figure between reserves and bonds. Ms. Reese noted that $28.8 million would be needed for a bond issue in 2005/2006 for utilities. These expenses do not include construction of the West Plant. Commissioner McCray inquired why there was no money coming in from CBDG funds. Ms. Reese explained that the CBDG funds would be used for the Heart of Boynton and is not included in the CIP funds. Commissioner Ensler inquired how much money was in the utility reserve and Ms. Reese noted it was $78 million. Mr. Bressner requested that the general fund be addressed first. Mr. Bressner next referred to the grants contained on page 1 that included the grant from the Florida Communities Trust for Jaycee Park. Commissioner McCray inquired if staff continues to look for additional grants. Ms. Majors reported that the figures in the CIP funds include grants that have already been submitted or will be submitted in the very near future. Ms. Majors felt that staff would seek more grants as other projects come on board. The $4.3 million in 2004/2005 are grant funds already received. With regard to the Library expansion, Mr. Bressner reported that the bids came in under the estimate by $250,000. Commissioner McCray inquired if the bid included furnishings for the Library. Mr. Bressner will check on this. Mayor Taylor inquired when the Commission would next be discussing the Town Square and the Old High School. Mr. Bressner stated that he would be bringing to the Commission at its September 21st meeting recommendations from the team and anticipated that this would be discussed again in November. Mayor Taylor stated that he had some additional ideas that he would like to bring forward that could affect the CIP projects. Mr. Bressner would like the Commission to first approve the team's recommendations at the September 21st meeting. At that time, Mayor Taylor could also bring forth his recommendations as well. Commissioner McCray wanted assurances that the projects that the Commission authorized were moved forward. Mr. Bressner noted that those projects have been approved and funded and will be moving forward. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 Commissioner Ensler asked for clarification of how the CIP project numbers are assigned and what triggers a project being assigned a number. Ms. Reese stated that once a project is budgeted and approved by the Commission, a number is assigned to it. Commissioner McKoy inquired about the timing for Nautica Sound Park at $400,000 that is designated for 2008. Mr. Bressner noted that this was the date selected after discussing the park with the residents. The date could be changed if the Commission wanted to move the project up, or if there was a recommendation from the Recreation and Parks Board to do so. It is possible that some of these projects may be moved up. Commissioner McCray inquired if the County would be assisting with Nautica Park. Mr. Bressner reported that the County would be contributing everything except $75,000, which the City would be responsible for. The project had been projected to cost $400,000. Mr. Ensler asked why there was no CIP number assigned the Intracoastal Park Clubhouse since the Commission had approved it. Ms. Reese responded that this was an oversight. Vice Mayor Ferguson inquired if it would be feasible to put some of these projects into regular maintenance instead of the CIP. Mr. Bressner explained that for tracking purposes it would be best to keep these all together. Commissioner McCray asked about the expenses for the Tennis Center. Mr. Bressner explained that the light poles and fence need to be replaced, plus there are some additional maintenance items. Commissioner McCray inquired about placing a playground at this site. Mr. Bressner noted that discussion has taken place regarding a playground adjacent to the Tennis Center. If funding becomes available for the playground, it may be possible to include it as part of this project. Ms. Reese reported that $15,000 is included for the design of the playground. Commissioner McCray noted that $900 has been allocated for sealing the Wilson Pool parking lot. Mr. Livergood stated that even though these funds were allocated for this purpose, because of the Wilson Center Replacement project, it was no longer necessary to do this work. Commissioner McCray inquired about the traffic signal for Knuth and Boynton Beach Boulevard for $60,000 in 2004/2005 and whether this was the County's responsibility. Mr. Livergood stated that these funds are available if needed, but he was not certain when a traffic signal would be needed at this intersection. Commissioner McCray inquired what sections of the City had funds earmarked for sidewalks. Mr. Livergood responded that they are planning to add sidewalks around grade schools and he anticipates that they will be bringing forward recommendations for sidewalks for construction in the Spring. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31,2004 Commissioner McKoy inquired if the $60,000 for a traffic signal could be used at other locations. Mr. Livergood stated that this was possible, but felt that the highest probability for the funds was Knuth and Boynton Beach Boulevard. Commissioner McKoy inquired about possible traffic signals at Renaissance Commons and the Winchester property. Mr. Livergood noted that the developer would be responsible for all traffic signals. Commissioner McCray noted that they are switching to a new style of medians and inquired if the $40,000 list for median improvements would be used for this purpose. Mr. Livergood responded that the cost of the improvements may possibly be shared with the County. Commissioner McCray inquired whether the CRA or the City would be responsible for the Wayfinding Signage. Mr. Bressner stated that both parties would be paying for this. Readdressing the median improvements, Mr. Bressner inquired if the County still offered a program for maintenance of medians. Because of the high cost of the program, the City stopped participating. Mr. Bressner was informed that the County still offered this program. He thought that the City might want to put aside some funds to participate in the program if the costs went down. Mr. Bressner reported that the Golf Course Advisory Board decided not to do any capital improvements until the market increases. III. Utilities Mr. Bressner pointed out that the utility projects do not include the expansion of the West Water Treatment Plant. Also, the expenses contained in the statement do not include the County fees. Next week, the Commission will consider entering into a short- term water purchase contract with the County. The County is recommending three years, but Mr. Bressner would like it extended to four years. The contract would provide interim flow from the County's water system until there is a decision on whether to proceed with construction of the West Water Plant and the staging of the East Water Plant projects, along with other actions. Cost figures are provided in staff's recommendation, Mr. Bressner pointed out that over a 15-year payout schedule, the City would save approximately $20 million. However, he would like to have the water system analysis completed before they decide on how to proceed. He noted that the utility planning work was based on a 1989 database and this preceded the major changes to the downtown, as well as the conversion of Quantum and the Motorola property. These changes will result in an increased utility impact. Staff is recommending that funds be included in the budget for the East Plant and to hold off on the West Plant until the analysis is complete. The analysis could reveal that it would not be in the best interests of the City to enter into a long-term contract with the Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31,2004 County or vice versa. If the City does not build a plant, maintenance costs would be eliminated as well. Mr. Bressner explained how they arrived at a cost savings of $20 million. He pointed out that the City still needed to move forward with improvements to the West Plant at a cost of $3.3 million. Improvements include modifications to the chlorination system and the trane system. These improvements, however, would not expand the West Plant that would remain at 9 million gallons per day. The South Florida Water Management Permit contemplates that the City would be adding an additional 8 million gallons for a total of 17 million gallons per day. The South Florida Water Management Permit also anticipates that the East Plant will be using the deep aquifer that involves a more expensive water treatment process than the current system. This will add another 8 million gallons per day to the system. Mr. Bressner noted that there is more detailed information in the Commission agenda packet for Tuesday's meeting. The updated information assumes that the price for expanding the West Plant would be around $28 million; however, staff at the West Plant feels that it would be a lot less. Commissioner McCray felt that it would be best to put this on hold until all the data is available. Mayor Taylor also felt that they should look at the study before any decisions are made, which should be available in nine months. Mayor Taylor recommended going with the short-term arrangement with the County in the meantime. Vice Mayor Ferguson pointed out that by 2015 the City should be almost totally built out, which Mr. Bressner confirmed. As a result, they should be able to predict what the demand would be. Mr. Bressner felt that it was important that if the Commission determined to move forward with building the West Plant, it must be decided by 2008. Commissioner Ensler inquired why an additional 5 million gallon tank budgeted at $2 million is necessary since there are millions of gallons of water stored below ground. Mr. Sugerman pointed out that during the past dry period, the plants had a total production capacity of approximately 16 million gallons, whereas the demand was around 19 millions gallons on peak days. This means that there was not enough water available at peak demand and water had to be taken from other sources. A lengthy discussion took place on how much water could actually be available from various sources. Mr. Bressner stated that the storage tank was still necessary because storage tanks hold finished water that is available for immediate delivery. Whereas, water stored in other sources must be treated before it could be used. Mr. Sugerman felt that the cost of filling a 5 million gallon tank should be considered. Mr. Sugerman further stated that there may be less costly alternatives of obtaining water. Mr. Sugerman noted that there is a disagreement between senior staff and utilities involving expansion of the West Plant. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 Mr. Bressner explained that the East Plant services one area and the West Plant another. One of the purposes of the water analysis study is to find out what improvements might be necessary in the water distribution system to determine if there is a benefit of having parts of the East Plant and the West Plant going to opposite parts of the service area. Mr. Bressner stated that the County's utility system could shift water from West Palm Beach to Boca Raton. Commissioner Ensler noted that there were $78 million in the Utility Reserves. He inquired how much money goes into the reserves on an annual basis. Ms. Reese responded that the cap fees average around $2 million per year. Commissioner Ensler noted that there would be $88 million in reserves before the City would have to borrow. Mr. Sugerman pointed out that not all of the $78 million is available for capital improvements. Approximately 6% of the operating revenue is set aside for renewal and replacement. Ms. Reese responded that $54 million is available for capital improvements and that she set aside six months of expenditures for emergency reserves. Mr. Bressner noted that after these discussions, it appears that approximately $20 million would have to be borrowed. Richard Stone, a member of the audience, asked when the water analysis would be complete and was informed that it should be ready within nine months or around February 2005. Mr. Stone also inquired what the City's position was at this time and was informed that the West Water Plant would be put on hold. Dave Ailstock, Chief Operator of the West Water Plant, pointed out that there are certain improvements that must go forward. Mr. Bressner noted that the costs for these improvements are included in the budget and will go forward. Commissioner Ensler stated that the Comprehensive Plan indicated that the City would need a maximum 32 million gallons per day and inquired when this number would be updated. Mr. Bressner stated that this would be determined when the water analysis is completed. Commissioner McCray asked that when this information is known that a retreat for the Commissioners be arranged. Mayor Taylor inquired why it cost $37,000 to repair the air conditioner at the West Plant. In addition the figures show that $27,000 was spent for carpeting and tile. Mr. Ailstock responded that the air conditioner was a huge unit and was actually a replacement, not a repair. Commissioner Ensler inquired what the $800,000 for on-site generation pertained to. Mr. Bressner explained that currently a chlorine gas system is used and staff is looking at two alternatives and there is a difference of opinion between staffs on the options available. One would be a liquid chlorine system and the other is an on-site generation system. From a safety perspective, the City needs to replace the chlorine gas system. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 Commissioner McCray inquired what the item "surveillance, entry notification" in the amount of $250,000 pertained to. Mr. Sugerman noted that this was for security. IV. Wastewater Projects Mr. Bressner reported that the downtown lift station would be split into two service areas that would require the construction of a new lift station and an interceptor line to the treatment plant. Commissioner Ensler noted that there have been two breaks recently in the City's wastewater system. He inquired if funds were included in the budget to make the necessary repairs to ensure that this would not happen again. Mr. Bressner reported that some analysis has been done of lift stations and sanitary sewer systems by service area, but no system-wide analysis has been done. Commissioner Ensler inquired if there were funds to do this, and Mr. Bressner responded that there is money in the budget for this purpose. Mr. Sugerman, however, noted that no excess dollars have been put into budget for system integrity. Commissioner Ensler would like to see this done. Mr. Bressner stated that staff would come up with an estimate of costs to do a water system integrity. V. Stormwater Improvements There are several small projects in this category that includes the 7th Avenue stormwater project. Commissioner Ensler noted that the City of Delray Beach did a study to tighten up their system that significantly reduced the amount of stormwater going into the SCRWT plant. Commissioner Ensler inquired if the City would be undergoing a similar study. Mr. Bressner stated that this is part of the analysis being done. Also, Commissioner Ensler inquired if money has been allocated for this purpose. Mr. Bressner stated that there is money for this purpose. VI. Fire Assessment Mr. Bressner reported that the fire assessment fees would not cover all of the expenses for the capital improvements. The program began with taking $2.8 million from the utility funds that was refinanced. The cost for land acquisition was more than anticipated. Mr. Bressner anticipates that next fiscal year, fire station #4 would be completed and they would be moving forward with construction of Fire Station #2. The cost for this station is approximately $2.5 million. Station #5 on High Ridge Road is scheduled to be completed in early 2006. After that, the fire assessment would end. Commissioner Ensler felt that since there would not be enough funds to complete construction of all the fire stations, they need to determine the shortage amount and how this would be handled. Mr. Bressner stated that the shortage would be approximately $7.5 million and that it would be discussed during next year's budget hearings. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 Commissioner Ensler remarked that Hurricane Charlie had torn the roof off a fire station on the west coast of Florida. He was concerned that station #4 would not have a cement tile roof. Mr. Livergood responded that the roof was designed to withstand 140 mph wind loads. Also, there are a number of factors that would keep a roof on that included how the roof system is attached to the walls, the design of the truss system and the roof material itself. Mr. Livergood noted that a concrete tile roof adds weight that would help keep the roof on the building. Commissioner Ensler inquired if there should be a change order for the station to add a concrete roof. Mr. Livergood noted that if that were done, it would affect the architectural design. He noted that the style of the roof for station #4 was designed to blend in with the surrounding neighborhood. Commissioner Ensler requested that Mr. Livergood look into this. Vice Mayor Ferguson was opposed to any kind of delay in bringing station #4 on line. Mr. Bressner asked for direction. Commissioner McCray felt that the Engineering Division took this into consideration to make sure that the fire station was sound and complied with the building codes. Commissioner McCray also did not want to delay construction of this station. Commissioner McKoy was also in favor of moving forward as planned. Mayor Taylor concluded that there was a consensus to proceed as intended. Mayor Taylor referred to the column entitled "adopted $7,673,675" and "Estimated $3,607,011." Mayor Taylor inquired if this meant that $4 million would have been spent. Ms. Reese explained that when the budget was adopted last year, the expenditure was $7 million and it was estimated that they would be using $5 million of fund balance. However, it has now been anticipated that the expenditures would decrease to $3.6 million. Mr. Bressner noted that there are certain things that they could do to reduce the deficit. The operating expenses of the fire assessment could be shifted to the general fund. By doing this, beginning in 2005/2006, the total fire assessment would be solely for capital construction. This would add approximately $1.8 million to operating expenses, thereby reducing the deficit by this amount. Another alternative would be to index a portion of the increased assessed value outside the CRA area to pay for fire station #5. This would mean that this additional assessed value could not be used for general governmental purposes for approximately two to three years to meet CIP needs. Commissioner McCray inquired if this would impact the entire City. Mr. Bressner noted that this would involve taking assessed value from a specific area of the City for a certain period of time, after which the money could be used for general purposes. Commissioner Ensler inquired how many years the fire assessment would have to be extended in order to make up the shortage. Mr. Bressner estimated two to three years. Commissioner McCray noted that when the fire assessment was passed it had a sunset of seven years. Mr. Bressner stated that in order to extend the fire assessment, it would have to be readopted. Meeting Minutes City Commission CIP Workshop Boynton Beach, Florida August 31, 2004 Mayor Taylor also pointed out that there would be an increase in revenue when the new construction in the City comes on line thereby increasing tax revenues. Commissioner Ensler noted that as new units are built, they have not contributed their share for construction of the fire stations and could there be a way for those people to contribute money. Mr. Bressner responded that this was not possible. Mr. Bressner concluded his presentation. VII. Adjournment There being no further business the workshop concluded at 8:05 p.m. ATTEST: Recording Secretary City of Boynton Beach (September 7, 2004) ZZC~ ~0 0 0 0 0 0 0 Z Zm Z~ ~Z Z W X 0 0 0 0 0 ._~ > iii X 0 0 z 0 Z ~Z .< Z --X