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Minutes 03-17-09 MINUTES OF THE CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, At 6:30 P.M., ON TUESDAY, MARCH 17, 2009 Present: Jerry Taylor, Mayor Jose Rodriguez, Vice Mayor Ron Weiland, Commissioner Woodrow L. Hay, Commissioner Marlene Ross, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk I. OPENINGS: A. Call to Order - Mayor Jerry Taylor B. Invocation by Rev. Greg Fitch, Police Department Chaplain C. Pledge of Allegiance to the Flag led by Commissioner Woodrow Hay Mayor Taylor called the meeting to order at 6:32 p.m. followed by an invocation given by Commissioner Hay, who also led the Pledge of Allegiance to the Flag. Police Chaplain Fitch was unable to attend. D. Agenda Approval: 1. Additions, Deletions, Corrections Vice Mayor Rodriguez requested the addition of discussions on the Neighborhood Stabilization Program and the Request For Proposal on the Police Station/City Hall. Mayor Taylor indicated both items would be added under section, XI. New Business, Items A and B. 2. Adoption Motion Commissioner Weiland moved to approve the agenda as amended. Commissioner Ross seconded the motion. The motion passed unanimously. II. OTHER: A. Informational Items by Members of the City Commission Commissioner Ross announced there was an opening for citizens to be added to the City's Green Alliance. She encouraged participation and noted there was information on the web site and a public service announcement also. 1 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Vice Mayor Rodriguez reported he had attended Palm Beach County Days in Tallahassee and spent time with state lobbyists, at sub-committee meetings, with local representatives and tried to provide opportunities for Boynton Beach. The State is relying on the stimulus package from the Federal government to balance the budget. Funding would be for one-time projects that would not require maintenance, since the stimulus package would not recur. Mayor Taylor noted the Grand Opening of the new Library and encouraged everyone to visit nd see the new building and improvements. He thanked all those who worked to complete the Library. III. ANNOUNCEMENTS, COMMUNITY & SPECIAL EVENTS & PRESENTATIONS A. Announcements: None B. Community and Special Events: 1. Friday, March 20, 2009 -- FREE concert at Oceanfront Park located at 6415 N. Ocean Blvd. featuring R&B music of Strictly Business from 6 p.m. to 9 p.m. Food and drink vendors will be available. Parking onsite or park and ride the free shuttle from Bank of America. Kathy Biscuiti, Special Events Director, announced the free concert to be held on Friday, March 20th at Oceanfront Park from 6-9 p.m. with R&B music provided by Strictly Business. C. Presentations: 1. Proclamations a. Mayors' Action Challenge for Children and Families Mayor Taylor read the proclamation for the Mayors' Action Challenge for Children and Families and preserving the well being of the youth with quality after-school programs. The proclamation was presented to Wally Majors, Director of Recreation and Parks and Ginny Shea, Senior Recreation Manager. 2. Presentations a. Presentation by Lawrence W. Casey, CEO of the American Red Cross Greater Palm Beach Area Chapter. Lawrence Casey, CEO of the American Red Cross, thanked the Commission for the invitation to discuss March as Red Cross month across the country. The local Chapter includes Palm Beach, Glades, Hendry, Okeechobee, Martin, Indian River and St. Lucie Counties for 2.1 million people. 2 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 He mentioned Mayor Taylor and Delores Taylor were longtime supporters of the Red Cross. Mrs. Taylor had received the prestigious Clara Barton Award. Mr. Casey noted the Red Cross addresses basic health and safety of the residents as well as preparing for disasters. The Red Cross was founded during the Civil War by Clara Barton and became principally responsible for the servicemen and women. Soldiers and their families are assisted. The Chapter has been in Palm Beach County for 92 years and works in collaboration with many municipalities and other non-profit organizations plus ethnic communities and other groups to better serve the people. Training in CPR for adults, infants, children and pets is available. Red has now gone green to assist in maintaining our natural resources. The Red Cross responded to 14 events in Boynton Beach with volunteers to assist families and responders at an expense of approximately $31,000 and would like to recoup those funds if possible. He thanked the Commission for the opportunity to promote March as Red Cross month. Mayor Taylor commended the Red Cross on their many efforts to assist the citizens and encouraged training in CPR to save lives. IV. PUBLIC AUDIENCE: INDIVIDUAL SPEAKERS WILL BE LIMITED TO 3 MINUTE PRESENTATIONS (at the discretion of the Chair, this 3 minute allowance may need to be adjusted depending on the level of business coming before the City Commission> Lawrence Gottfried, 1102 Renaissance Way, referred to some landscaping plans that Code Compliance was going to approve that were contrary to law. He had spoken with the Chairwoman of the Zoning Committee regarding the approval of the landscaping plan and the conversation became confrontational. The Boynton Beach Police Department became involved and Mr. Gottfried complained he felt threatened and intimidated. He asked the Commission to investigate the incident. Mr. Gottfried also contended the response to a previous public records request was not complete and discussions by the Department of Zoning and the lawyer for Renaissance Commons and the President of the association were not included. He suggested it was either an innocent mistake or an intentional altering of public records and should be addressed. Susan Horne, 1 Colonial Club Drive #104, alleged her recent illness was due to a break in the sewage pipe along the Intracoastal Waterway where she had been fishing. The beach had been closed for three days by the Palm Beach County Health Department and the City of Boynton Beach was responsible for testing the Intracoastal Waterway. A second leak was also discovered and raw sewage went into the water again without sufficient notification to the public of the hazard. Mayor Taylor explained the first break did result in the beaches being closed and everyone had been alerted. The water had been checked after the second break and it had been determined the beaches would not be closed. Ms. Horne asserted recent testing by her home showed the levels of bacteria were still high. 3 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 She requested information regarding the maintenance procedure for the pipelines and why inspections had not been done. She also wanted to know when and how often the City tests the Intracoastal Waterway and if and when warnings are posted. Ms. Horne maintained since the leakage, she has been very ill and had extensive testing and associated costs including medication. Brian Miller, Chair of the Community Relations Board, announced on Saturday, April 18th would be the Annual Great American Cleanup and urged residents and City employees to volunteer their time to make the City more beautiful. Landscape plantings would also be done, as well as cleanup. Don Scantlan, 30 Cedar Circle, made the Commission aware of a dangerous situation for bicyclists and pedestrians due to the lack of a sidewalk or bike lane from Congress Avenue to 1- 95 on the south side of Hypoluxo Road going east. He inquired if there was a mediation plan to get a bike lane on Hypoluxo and if not, could it be considered. Herb Suss, 1711 Woodfern Drive, reviewed his contention that campaign contributions were made by Auburn Group to Vice Mayor Rodriguez, contrary to the Vice Mayor's remarks. Mr. Suss read from an email previously sent by Vice Mayor Rodriguez as follows: "Other than campaign contributions, I can confirm that I received no other funds from the Auburn Group." Mr. Suss pointed out Boynton Bay apartments, a subsidiary of the Boynton Beach Group donated campaign funds also. He asked the Commission to remove Vice Mayor Rodriguez for just cause and promote ethical standards. Lee Wische, 1302 SW 18th Street, noted he appreciated Vice Mayor Rodriguez's opinion that he had power and influence, but after Mr. Suss' remarks, he would not support Vice Mayor Rodriguez. Vice Mayor Rodriguez countered he had been very patient with the many attacks of Mr. Suss. However, two years ago Mr. Suss persistently sought Commissioner Rodriguez' support to gain the vacant seat on the Commission following Vice Mayor Ensler's death. Vice Mayor Rodriguez refused to assist Mr. Suss in his quest and subsequently Mr. Suss has been very accusatory. No one else coming forward, Mayor Taylor closed the public audience. v. ADMINISTRATIVE: A. Appointments Appointment To Be Made Board Length of Term Expiration Date II III Hay Rodriguez Bldg. Bd of Adj & Appeals Bldg. Bd of Adj & Appeals Alt Alt 1 yr term to 12/09 Tabled (3) 1 yr term to 12/09 IV Ross Cemetery Board Alt 1 yr term to 12/09 Tabled (2) 4 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 III Rodriguez Code Compliance Board Alt 1 yr term to 12/09 Tabled (2) II Hay Education & Youth Advisory Board Alt 1 yr term to 12/09 III Rodriguez Education & Youth Advisory Board Stu N/V 1 yr term to 12/09 II Hay Recreation & Parks Board Alt 1 yr term to 12/09 Motion Commissioner Hay nominated Corey Cook for the alternate position on the Recreation & Parks Board. Commissioner Ross seconded the motion. The motion passed unanimously. IV Ross Mayor Taylor Senior Advisory Bd Senior Advisory Bd Alt Alt 1 yr term to 12/09 1 yr term to 12/09 Motion Commissioner Ross moved to table the remaining appointments. Commissioner Hay seconded the motion. The motion passed unanimously. VI. CONSENT AGENDA: Matters in this section of the Agenda are proposed and recommended by the City Manager for "Consent Agenda" approval of the action indicated in each item, with all of the accompanying material to become a part of the Public Record and subject to staff comments. A. Minutes 1. Regular City Commission - March 3, 2009 B. Bids and Purchase Contracts - Recommend Approval - All expenditures are approved in the 2008-2009 Adopted Budget. 1. Approve negotiation of a contract with Ellie's Catering, of Delray Beach, FL for the RFQ: "FOOD VENDOR CAPABLE TO ASSIST WITH DESIGN AND NEGOTIATION OF LEASE FOR THE liBRARY CAFE": RFQ #024-2610- 09/JA. 2. Approve a piggyback of State Contract #405-000-04-01 for the purchase of gasoline and diesel fuel products for use in City vehicles and equipment for the remainder of the fiscal year with an estimated expenditure of $1 million. The selected vendors are Petroleum Traders (Gasoline) and Port Consolidated, or Terrell Industries (Ultra low sulfur diesel). 5 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 3. Reject the fourteen (14) highest bids the City received in response to the Invitation to Bidders and award Bid #018j2821-09jJA, "ROLliNG GREEN STORMWATER AND WATER IMPROVEMENT PROJECT", to GlobeTec Construction, LLC (GlobeTec) and execute a contract in the amount of $3,489,346.60 plus an owner's contingency of 10% in the amount of $348,934 for a total project budget appropriation of $3,838,280.60. (Proposed Resolution No. R09-019) - Review of Bid Protest Appeal Mayor Taylor pulled Item VI.B.3 for discussion. C. Resolutions 1. Proposed Resolution No. R09-050 RE: Approving and authorizing execution of an agreement between the City of Boynton Beach and Health Career Institute (HCI) for a cooperative relationship to use Boynton Beach as a clinical training site. 2. Proposed Resolution No. R09-051 RE: Approving and authorizing execution of an agreement with the State Department of Environmental Protection for a $200,000 matching grant for improvements to Congress Avenue Community Park. 3. Proposed Resolution No. R09-052 RE: Approving and authorizing execution of an agreement between Palm Beach County (PBC) and the City of Boynton Beach for design and construction of an interactive water feature at Congress Avenue Community Park using the PBC 2002 Recreation and Cultural Facilities Bond. 4. Proposed Resolution No. R09-053 RE: Approving and authorizing execution of Change Order #1 to Glatting Jackson, Inc., the consultant for Congress Avenue Community Park in the amount of $48,685 due to the addition of an interactive fountain element, additional requirements by South Florida Water Management District (SFWMD) for permitting, and the inclusion of the public artist in the Glatting Jackson contract. 5. Proposed Resolution No. R09-054 RE: Approving and authorizing execution of a proposal from Government Services Group, Inc. (GSG) to update the data required for the maintenance and potential continuation of the Fire Assessment Program for Fiscal Year 2009/2010. D. Approve reduction of the cash bond in the amount of $33,000 by 90% for the balance of site improvement of the Waterside Village Planned Unit Development (PUD). 6 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 E. Accept the "Ocean Avenue Interstate 95 Project Alternate Access Route Study" report as prepared by the consultant, Stanley Consultants, Inc. (Request to be tabled to April 7;. 2009) Motion Commissioner Ross moved to table Item VI.E. to April 7, 2009. Vice Mayor Rodriguez seconded the motion. The motion passed unanimously. F. Approve the termination of the Maintenance Agreement with the Quantum Community Development District and the City of Boynton Beach for maintenance services on Gateway Blvd. and High Ridge Road. Commissioner Weiland pulled Item VI.F. for a citizen's comments. Commissioners Ross and Hay also wanted to pull Item VI.F. G. Accept the written report to Commission of purchases over $10,000 for the month of February 2009. Commissioner Hay pulled Item VI.G. for discussion. H. Renew insurance policies through current broker, Arthur J. Gallagher & Co. for Public Entity Excess Liability (General Liability & Workers' Compensation) $214,149 and Property (Municipal & Utilities) $1,107,370. I. Authorize the use of $750 from Commissioner Weiland's Community Investment Funds to assist The Dancer's Alchemy, Inc., in sponsoring a MotherjDaughter Tea and Fashion Show fundraiser. Motion Commissioner Ross moved to approve the Consent Agenda with the exception of the items pulled. Commissioner Hay seconded the motion. The motion passed unanimously. VI.B.3. Reject the fourteen (14) highest bids the City received in response to the Invitation to Bidders and award Bid #0l8j2821-09/JA, "ROLLING GREEN STORMWATER AND WATER IMPROVEMENT PROJECT", to GlobeTec Construction, LLC (GlobeTec) and execute a contract in the amount of $3,489,346.60 plus an owner's contingency of 10% in the amount of $348,934 for a total project budget appropriation of $3,838,280.60. (Proposed Resolution No. R09-019) - Review of Bid Protest Appeal Mayor Taylor explained the matter was for review of a bid protest filed in the Rolling Green Storm water and Water Improvement Project that was awarded to GlobeTec Construction. Both the City Attorney and City Manager had upheld staff's procedure. 7 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Attorney Cherof reviewed the history of the bid and appeal. The appeal was timely filed. Gary Goldman, 17071 W. Dixie Highway, North Miami Beach, FL, spoke representing Master Excavators, the lowest bidder on the project by $90,000. When they realized the bid was going to be awarded to the second lowest bidder, the bid protest had been filed. It was alleged items had not been provided in the bid; the background of the principal, bonding capacity and current contracts on hand. The basis for awarding the contract to the next lowest bidder was not the lack of qualifications of Master Excavators or their irresponsibility. After initially appearing before the Commission, staff requested the information that was missing and the City Attorney subsequently decided the additional data would not be considered. Mr. Goldman asserted the City Attorney's decision was arbitrary and capricious and the information provided should be considered. Mr. Goldman further pointed out the rules provided to bidders allows the City to waive technical errors and accept any bids deemed to be the most responsive and responsible bids. Another rule indicates the City reserves the right to waive any defect or irregularity or informality. Master Excavators was the lowest bidder by $90,000 and Mr. Goldman asked that the staff be directed to consider the additional information Bernard Feely, owner of Master Excavators, 9265 SW 142nd Street, Miami, emphasized his company has been in business for 25 years versus the selected company that has only been in business for five years. The contracts on hand were the missing documentation and Mr. Feely outlined the many jobs he had completed and his extensive experience. In his opinion, there was no reason the bid should not be awarded to his firm. The bonding company guarantees the work will be done. Peter Mazzella, Deputy Director of Utilities, advised staff had extensively reviewed the bid documents as submitted and not supplemental information before awarding the bid. He stressed the bid contractor is hired and not the bonding company. Dave Mathews, Consulting Engineer, stressed the bid submitted was incomplete, as indicated by Mr. Feely and was rejected as incomplete. Attorney Cherof advised the language regarding technical errors applies to the actual bid opening and pre-bid process. With 17 bidders, it would be inappropriate and not practical to allow the bidders to submit supplemental information from one or more of the bidders creating a never- ending process. The opportunity was given to Master Excavators to point out any items that may have been overlooked by staff and no such information was provided. Attorney Cherof indicated he did instruct staff not to consider supplemental information. The consultant, Mr. Mathews, found the bid to be incomplete because background and experience of the principal members of the personnel were not provided, contracts on hand were not divulged and experience for work in infrastructure and residential improvement projects were not included. Lack of experience was not an issue. Attorney Cherof asserted the two components of any bid award is the combination of low bid and most responsive bidder. The bidder acknowledged the bid was not complete at the time of submission. 8 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Mr. Goldman reiterated it was an arbitrary requirement and his client was the lowest bidder based on all the information provided. Commissioner Weiland summarized the bid package submitted by Master Excavators was incomplete. Mayor Taylor pointed out that the contractor had admitted the papers he did not submit were an oversight. Commissioner Ross indicated she understood the contractor's frustration. The $90,000 is a significant difference and should be considered, if possible. Fairness would be an issue for every bidder if the bid award was changed, according to Commissioner Weiland. Mayor Taylor noted it was the contractor's responsibility to submit a complete package. Mayor Taylor directed public input would not be allowed. Commissioner Hay asserted the process should be preserved and it would be unfair to the other bidders and create a precedent for future bidders. Vice Mayor Rodriguez agreed; however, $90,000 was a great deal of money and in the future the policy should be more flexible. Commissioner Hay indicated it should be the responsibility of the contractor to submit a complete package, rather than the responsibility of staff to verify complete information. Vice Mayor Rodriguez felt it was the obligation of the Commission to save as much money as possible to ensure public safety. Commissioner Ross agreed with Vice Mayor Rodriguez that staff should contact the contractor if information is missing Mr. Bressner suggested a checklist be included for all the attachments and information to avoid or reduce the opportunity for error. To re-open the bid information in the middle of the bid process would result in many challenges and ultimately litigation. Adherence to the bid procedures is necessary. Mayor Taylor concurred. Commissioner Ross suggested calls by staff for additional information could be made after the lowest bidders were chosen. Attorney Cherof advised the other bidders would then have recourse to challenge the award. In this case, it was narrowed down to the three lowest bidders evaluated by staff and the consultant's detailed evaluation. A detailed checklist is included in each package. Motion Commissioner Hay moved to deny the appeal. Commissioner Weiland seconded the motion. The motion passed unanimously. Motion Commissioner Hay moved to reject the 14 highest bidders and award Bid #018-2821-09jJA, Rolling Green Storm water and Water Main Improvement to Globetec Construction. Commissioner Ross seconded the motion. The motion passed unanimously. VI.F. Approve the termination of the Maintenance Agreement with the Quantum Community Development District and the City of Boynton Beach for maintenance services on Gateway Blvd. and High Ridge Road. Commissioner Weiland indicated he had pulled the item for a citizen to comment. 9 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Mike Ferguson, 500 South Federal Highway, requested the termination not be approved. Financially, if approved, the City would inherit maintenance of Gateway and High Ridge Road. Besides cutting the grass, it would involve irrigation pipelines, management and maintenance of the pump stations and several special payments. The special payment would be moving the street lights and the electric bill for the streetlights totaling $20,000 to $24,000 annually. There is also a plan to resurface High Ridge Road for an expense of $30,000 to $40,000. The second reason is fairness based on an agreement made in 2001 in the amount of $285,000. Mr. Ferguson speculated it may cost the City more than it did the Property Owners Association (POA) Mr. Bressner noted the 2001 contract did not include any reference to street lighting, only accent lighting. The City would not be paying for any street lighting. Jeff Livergood, Director of Public Works and Engineering, agreed that street lighting was placed on Quantum property and not the right-of-way and was the responsibility of the POA. Mayor Taylor indicated currently the City is paying $83,171.20 annually and the first year $27,856 would be saved after the irrigation upgrades of $35,000. Subsequent years the City would be saving approximately $72,000 a year. Mr. Livergood advised the cost of re-surfacing High Ridge Road was the responsibility of the City and not part of the agreement. Commissioner Hay recalled in discussions regarding another park, staff was unable to take on any other duties. Mr. Livergood clarified that staff could oversee the private contractor that maintains all the medians. Termination of the contract requires notice six months in advance of the fiscal year. He reiterated the savings in time would be $70,000 to $80,000. Motion Commissioner Hay moved to terminate the maintenance agreement with Quantum Community Development. Commissioner Ross seconded the motion. The motion passed unanimously. VI.G. Accept the written report to Commission of purchases over $10,000 for the month of February 2009. Commissioner Hay requested clarification on the four categories and examples of personal property. Barry Atwood, Director of Finance, responded personal property could be anything purchased that would not be constructed; such is a mower for the golf course. Commissioner Hay also requested a revision in the form and Mr. Atwood agreed to the change. Mayor Taylor questioned why three AC units had to be replaced at the Hester Center. Paula LeBlanc, Facilities Manager, responded to avoid closing parts of the Center when the units actually failed, regular maintenance checks revealed replacement was needed. Motion Commissioner Hay moved to approve the written report to the Commission. Commissioner Weiland seconded the motion. The motion passed unanimously. 10 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 VII. CODE COMPLIANCE & LEGAL SETTLEMENTS: None VIII. PUBLIC HEARING: 7:00 P.M. OR AS SOON THEREAFTER AS THE AGENDA PERMITS The City Commission will conduct these public hearings in its dual capacity as Local Planning Agency and City Commission. A. Project: Land Development Rewrite -- A portion of Group 6 Chapter 4, Article IV: Sign Code (CDRV 07-004) City initiated A portion of Group 6 deliverable, pursuant to the LDR Rewrite Work Schedule, which includes Chapter 4, Article Ie. Sign Standards. Applicant: Descri ption: Eric Johnson, Planner II, gave an overview of the Group 6 rewrite for changes to the Sign Code of adding sign definitions and enhanced permitting language. (Mayor Taylor left the dais at 8:07 p.m. and passed the gavel to Wce Mayor Rodriguez) (Mayor Taylor returned to the dais at 8:09 p.m.) The new Code outlines standards for prohibitive signs, community design, and enhanced language for conforming and non-conforming signs, abandoned signs and the penalties. A sustainability objective was created and the variance process for signs was eliminated. Any deviation from the Sign Code would require a variance to be reviewed against the traditional hardship. There would also be a community design plan appeal for any sign under that section. The permitting language was enhanced for consistency with the Building Division permit process. There would be a prohibition of electronic message centers, as well as vehicle signs. The sign program would only be applicable to planned developments. (Vice Mayor Rodriguez left the dais at 8:09 p.m. returning at 8:12 p.m.) The Code was revised based on data from 32 different Florida cities and counties and eight out- of-state counties and cities. The Planning and Development Board reviewed the changes and recommended approval of the rewrite. Various illustrations of existing signs were viewed in a PowerPoint presentation and their application to the Code was discussed. It was noted lifestyle graphics would be allowed on fences. Signs larger than 32 square feet would be required to comply with the Florida Building Code. The changes would include proposed language relating to political signs. In general, vehicle signs and changeable copy on wall signs would be prohibited. Staff recommended approval of the deliverable. Vice Mayor Rodriguez questioned if a color scheme had been addressed. Mayor Taylor noted the Planning and Development Board reviews the colors. Mr. Bressner added there is no Code requirement or approved color pallettee. It has been a standard of development in the 11 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 approval process and site specific. Mike Rumpf, Planning and Zoning Director, explained four colors are allowed, being black and white and two other colors. Allowing too many colors would create a carnival appearance. Motion Commissioner Weiland moved to accept the LDR Rewrite. Commissioner Ross seconded the motion. The motion passed unanimously. IX. CITY MANAGER'S REPORT: Motion Commissioner Hay moved to remove Items IX. A, Band C from the table. Commissioner Ross seconded the motion. The motion passed unanimously. A. Analysis of Revenues and Expenditures for General and Utility Fund - Four Months Ending January 31, 2009 (Tabled on March 3, 2009) Barry Atwood, Finance Director, pointed out projected revenues for the General Fund this year show an anticipated $5 million shortfall. Property taxes are approximately 1% behind last year. February figures should remain approximately the same. Vice Mayor Rodriguez questioned if the reserve funds would be used to offset the shortfall. Mr. Bressner replied the reserve funds could be used or expenses reduced or alternative revenue sources found. Commissioner Weiland recalled $4.6 million of reserve funds were used to balance this year's budget. Mr. Bressner added the 10% operating reserve would not be utilized. B. Preliminary Discussion on General Fund Operating Budget for Fiscal 2009-2010 (Tabled on March 3, 2009) Mr. Bressner indicated a memo had been sent to staff outlining the current budget situation for the next fiscal year. He stressed staff was not responsible for the economic crisis. The projections were based on reductions in the taxable base of 5%, 7V2% and 10%. It was noted development along Congress Avenue added to the taxable base last year that would not be recurring. There had been an 8% reduction this year. The doubling of the Homestead exemption would not affect the next year's taxable base. Because local government is labor intensive, staff and program levels must be considered. Furloughs relating to programs and activities may be necessary for a couple of years and services that are a legacy of past practices may need to be shed. Mr. Atwood gave an overview of the areas to be discussed. The recommendation was that the Commission provide policy guidelines and specific directives as warranted. Initially a background of the 2008/2009 budget showed an 8.5% reduction of property values and a 6% increase in expenditures creating a $7 million gap. Mr. Atwood reviewed the options that were used to narrow the gap. Holding the line on expenditures will be key to reducing the revenue shortfall in the current budget. 12 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 The budget challenge for the 2009/2010 budget year will be to offset a $10.5 million to $16 million projected shortfall because revenues will decline and expenditures will increase. A balance must be sought. The total revenue reduction for 2009/2010 could be $6.4 million to $7.8 million. State revenues will decrease due to reduced discretionary spending and loss of sales tax, a reduction in documentary stamp income and less intangible taxes. Expenditures are predicted to increase from 2.5% to 5%. The range of possible deficits were outlined. Staff was seeking policy direction on personnel service adjustments, program adjustments, taxes/other revenue sources and any other areas deemed appropriate. Mr. Atwood noted 77% of the General Fund Budget relates to personnel services. He speculated it would be highly unlikely the employees would not be impacted. Currently the City pays for employee insurance only. The possibility of self-funding to further reduce health insurance costs is being considered. The pension plans are defined benefit plans with annual required contributions by the City that will increase based on poor market performance. Vice Mayor Rodriguez established the increase in pension funding is a national and even world-wide issue and not particular to the City of Boynton Beach. Public safety comprises 67% of the personnel service costs which is the standard for a service organization. Policy guidance was requested on employee wages, benefits, reductions or furloughs. It was indicated that the public expectation was to continue getting excellent public services at no additional cost to the taxpayer. The level of service adjustment would also be an issue that would require policy guidance. A balance had to be sought. Mr. Atwood noted unfunded state mandates continue to rise and legislation to further reduce property tax revenue is pending. Property tax revenue funds only 46% of the total revenues. The functional areas of general government, development, public works and leisure services have all decreased their expenditures versus property taxes over the past five years while public safety has increased. He also pointed out the millage rate has decreased from 7.5 mills to 6.4553 mills during the last five years. In relation to taxes, the policy guidance sought was consideration of an increased ad valorem tax rate or a roll back rate. The roll back rate would raise the same amount of property taxes as in the prior year and by State statute is not considered a tax increase. There would be no increase in taxes for the non-homestead properties and only a .1% for homestead properties. Even with the roll back rates, the projected deficit would be $10.9 million. Mr. Atwood also suggested that fees charged for programs or services are not sufficient to cover the costs. Policy guidance was needed if all fee-based services should be self-supporting or cover a certain percentage of costs. Cost of living adjustments to those fees annually would eliminate large "catch-up" adjustments. Another consideration was changing the fire assessment to a higher percentage of total assessable costs. 13 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 The budget team had other suggestions including an alternate work week, early retirement, sale or exchange of property and change in the pension plans to a defined contribution plan or a higher employee contribution to the pension plans. Mr. Atwood emphasized the expectation of the public to provide excellent services cannot be continued without additional cost to the taxpayer. To balance the budget, it would require program reductions and revenue increases. The projected undesignated balance available would be $6.4 million if the $5 million deficit is taken from the fund. The emergency reserve rate would remain at $7.7 million. The suggested solutions included the following: ./ Set property taxes at roll back rate ./ Increase fire assessment to 75% level ./ Increase fee areas ./ Use some of the undesignated fund balance ./ Reduce program/personnel services Mr. Bressner noted the $7.1 million in personnel and program reductions would be expenditure levels at 90% of this year's budget. Mr. Atwood surmised it would be a 10% reduction. There was consensus to allow the public time for input with any recommendations. Mike Osborn, 3712 Coelebs Avenue, a City utility employee and union steward, requested the Commission look hard before cutting wages and benefits. A 10% decrease would be devastating to many employees. He felt there was money wasted that should be investigated first. Employees are afraid to address the issue and fear retaliation. Car allowances for upper management would be a cost savings, as well as paying for car washes. Employees have suggestions that could save money that should be considered before the employees are asked to do more for less. The entire burden should not be placed on the employees. Commissioner Weiland applauded Mr. Osborn's courage to address the Commission. He contended the entire Commission would be glad to hear from all or any employees with information to consider to make the right decisions. Mr. Bressner added a hotline had been established for employees to provide suggestions or ideas and urged the employees to use that conduit to assist the decision making process. Vice Mayor Rodriguez requested suggestions to make even more avenues for input from the employees. Mr. Osborn felt the input should be direct to the Commission. Vice Mayor Rodriguez condoned the use of emails or whatever avenue available to receive information. Mayor Taylor regretted fear on the part of the employees existed. He staunchly asserted his last option would be to layoff anybody. Any input would be appreciated. Don Scantlan, 30 Cedar Circle, advised his employer recently switched to the Florida Retirement System (FRS) plan and it offered both defined contribution and defined benefit and saved the employer money. He suggested making the FRS available to the employees. Mayor Taylor indicated the Employee Pension Board had discussed the option and the pros and cons. 14 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Vice Mayor Rodriguez realized it was a very difficult decision process and continued to ask for any input. He would not support the elimination of any jobs, reducing the level of service for fire and police or raise the millage rate. The market conditions for development or redevelopment will be bad for at least three more years and affordable housing is available to everybody. He noted the City had a Development Department and Director and a new plan for the Heart of Boynton Beach had been suggested by the City Manager using the department. There is a duplication of efforts between the CRA and City that could be consolidated. There would be $9 million in revenue brought back to the City if the Community Redevelopment Agency were furloughed until the market rebounds. Vice Mayor Rodriguez felt it was a viable option that should be closely scrutinized. The redevelopment efforts for the Heart of Boynton would continue through the City's Development Department. Commissioner Weiland agreed that all avenues should be explored. Layoffs were not desirable, but there was a responsibility to the citizens of Boynton Beach to look at all the options. He wanted to see where every dollar is spent in every department and the responsibilities, services and programs of each department, number of employees, salaries, anniversary dates, any contingency funds, even cost of office supplies. It mayor may not be feasible to restructure a department to save monies. There may be programs that could be furloughed for a time period. Fire and safety should be the number one mission of any City; however, each department should be scrutinized for any saving opportunities. Spending funds for new parks may not be appropriate in light of possible employee layoffs. Attorney Cherof advised monies from impact fees for parks could be borrowed and transferred to the General Fund and then later repaid to the parks. Commissioner Weiland advised Delray Beach had hired a law firm as a consultant to assess the various departments and their processes and procedures and made recommendations. It may be an option to consider. Commissioner Weiland reiterated it was important to get a report from staff showing how every dollar is being spent in each department to analyze the options for solutions. He was in favor of increasing the cost of beach and boat decals, but not in favor of increasing the fire assessment. He encouraged anyone to contact him and suggested a box be placed in the lobby for any anonymous ideas. Raising taxes was not an option since many could not pay more taxes. A reduction on car allowances, freeze on wages, four day work week and any other combination of cost saving ventures may be necessary. Commissioner Hay agreed maintaining jobs and the level of services was a priority, along with not raising the tax millage. He did not want to entertain the idea of cutting the CRA because the Heart of Boynton is alive and well and needs to move ahead. The funds earmarked for the Heart of Boynton need to remain in the area. Commissioner Hay did want to see the information requested by Vice Mayor Rodriguez and Commissioner Weiland in addition to an early retirement program. He mentioned Senate Bill 1482 redefined the meaning of normal retirement date and age and should be examined closely if it would apply to the City. Commissioner Hay felt a freeze on hiring, promotions and raises would be appropriate. Some luxuries, such as Blackberries may be unnecessary. Other employee benefits may need to be restructured and an early retirement package examined. Mr. Bressner advised the Senate Bill may relate to FRS and plan changes would need to be made to adopt parallel standards in the 15 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 three pension funds. A migration to FRS along with retooling the pension plans may be an option. Commissioner Ross thanked the budget committee and Mr. Atwood for their presentation of all the information. She stressed lay offs would be a last resort. Fire and police need to be maintained. The span of control should be studied and understood. The four day work week should be considered along with salary freezes. She developed the fact that furloughed programs could result in furloughed employees. Mr. Bressner cautioned that costs can be cut; however, personnel costs have to be stabilized or reduced to balance the budget. Flexibility is not available when the personnel costs comprise a high percentage of the overall budget. Some reassignments may be necessary to maintain staff levels for programs deemed appropriate by the Commission. Legacy based programs cannot be continued; only essential programs must continue. Mr. Bressner also cautioned if the CRA would be furloughed, the debt service would be assumed by the City. Commissioner Ross agreed the Heart of Boynton was a very viable area and it would be counterproductive for the CRA to be eliminated. She did emphasize the red light traffic program would be generating money for the City if the Request For Proposal process would be expedited to select a vendor. Commissioner Ross also welcomed any input from the public or staff. Mayor Taylor contended a wage freeze should be considered. His experience and feedback indicated the public wants public safety to be a priority and is willing to pay for the security. Therefore, he supported an increase in the millage rate. He also wanted an inventory of all properties and assets the City owns that could be sold and the possible value. Mayor Taylor also agreed with the four day work week. He strongly opposed the elimination of the CRA. It is a revenue producer with developments that will bring revenue to the City. Vice Mayor Rodriguez disputed there were developments ongoing. Mayor Taylor pointed out the Promenade and Las Ventanas were two examples. Vice Mayor Rodriguez alleged those developments would be empty. Mayor Taylor disagreed and voiced his opinion that the Vice Mayor has a long-standing vendetta against the CRA and had continually worked to get rid of the CRA. Mayor Taylor continued that a defined contribution retirement plan should be investigated for new employees only. Vice Mayor Rodriguez clarified that any tax revenue going to the CRA would transfer to the City if the CRA no longer existed. There would be no loss of revenue to the City, only a gain of $9 million in tax revenue. He felt any additional revenue source should be investigated and to not do so would be irresponsible. He acknowledged there was some debt service that would also fall to the City. He confirmed that he totally supported the redevelopment of the Heart of Boynton and waived redevelopment in his own district. He reiterated his support to furlough the CRA as long as dollars were allocated in the new budget for the Heart of Boynton project. The possibility should at least be reviewed. Mayor Taylor countered that a new development at the Gulfstream mall was being proposed and there was continued development ongoing within the CRA district. 16 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Motion Vice Mayor Rodriguez moved to authorize the City Manager and the City Attorney to explore the mechanics and legality of de-authorizing the CRA. Commissioner Weiland seconded the motion for discussion. Commissioner Weiland noted there were five members on the Commission to make the decision on the budget and he expected that staff would be provided all the information requested to make an educated decision. A vote would not be necessary or even a motion. Mr. Bressner agreed with Commissioner Weiland that all issues should be reviewed by the budget committee. Cost analysis could be prepared with the potential savings. The personnel issues would have to be revisited. Commissioner Ross would review the information provided, but reconfirmed her support of the CRA. It should be posed and ready to go when the current cycle rebounds. Commissioner Weiland contended the decision should be based on the number of staff needed to get the job done. Vice Mayor Rodriguez removed his motion since the information would be provided. Commissioner Weiland announced he needed to be excused to take care of a personal matter. (Commissioner Weiland left the dais at 10:19 p.m.) e. Approve the report on disposition of surplus computers. (Tabled on January 6, 2009) Phyllis Koch, Director of ITS, reported her recommendation would be that her Department be allowed to continue negotiations with the School District or not-for-profit organizations to dispose of or refurbish surplus computers for future use. There was consensus to continue negotiations with the School District and report back to the Commission on the progress at a later time. D. FEMA Project - City Hall, Wind Retrofit Mr. Livergood gave an overview of the project that included a grant for window coverings on 24 windows of the second floor of City Hall. A second grant was requested and granted for the remainder of the windows on the second floor. The final inspection revealed the Kalwall covering in the lobby and in Chambers had to be covered or replaced and the second funding request was denied. The options include completing the grant and replace or cover the Kalwall with the possibility of additional grant funding. A second option would be to withdraw from the project and a third option of commencing legal action. The long term plans for City Hall have to be considered and the amount of money to be spent. Mr. Livergood's recommendation was to pursue legal action and compel the State to honor the second grant funding. Debbie Majors, Grant Coordinator, added the project was completed in 2006/2007 and the money had been 17 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 spent. Attorney Cherof advised we had partnered with the State for $141,000 that is now being withheld. Ms. Majors indicated $180,000 would be needed to cover the Kalwall. The State has offered reimbursement of 75%. The bottom line would be an expense to the City of $45,000 plus the cost of litigation. Attorney Cherof indicated the benefit would be to resolve the issue rather than paying legal fees. He contended more pressure needs to be asserted on higher levels of management to get the preferred result. There was consensus to continue with option one and complete the project. X. FUTURE AGENDA ITEMS: A. Options for Hurricane Protection Project for 1913 Schoolhouse Children's Museum (Deferred pending future grant opportunities) B. Review and consideration of approval of Auburn Master Development Agreement (Proposed Resolution No. R09-018) Tabled on January 20, 2009 There was consensus to delete Item X.B. from future agendas. e. Proposed Code amendments relating to reclaimed water April 7, 2009 D. Report on cost sharing options for take-home vehicles (In conjunction with continued budget discussions) XI. NEW BUSINESS: A. Discussion of Neighborhood Stabilization Program. (This item was previously added to the agenda.) Vice Mayor Rodriguez suggested the foreclosed properties that are purchased under the program and refurbished, be offered to City employees at cost. The seller commission costs would be saved. A lottery selection process could be used for the employees interested in buying the properties. It would keep employees in the City, raise our tax revenue and increase morale. Mr. Bressner was not sure if HUD would approve an employee preference program. Quintus Greene, Development Director, noted $2.5 million would be available, less administration costs. He surmised income eligibility criteria would still apply. There was consensus to explore an employee preference program. B. Request for Proposal (RFP) for Police station/City Hall. (This item was previously added to the agenda.) Vice Mayor Rodriguez contended significant staff time was being utilized to create the RFP for the Police Station/City Hall. He reiterated his position that City Hall is in the Heart of Boynton 18 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Beach and it supports the eastern part of the City. A Master Plan was designed that included the City Hall, new Library and tied it with the Marina. Other communities along the coast have their City Halls east of 1-95. Moving City Hall out of the current area would deteriorate the area worse than it is currently. It is an anchor for some of the retail business in the area. Vice Mayor Rodriguez did not want to waste staff time creating an RFP and developer's time responding to the RFP, only to determine the City Hall should remain at its current location. The Master Plan was approved in November 2008 at a cost of $500,000. He contended the City Hall aspect of the RFP should be curtailed to only the downtown area. Mr. Bressner contended it would limit the Commission's options. Commissioner Ross recalled a vote had already been taken on the issue and was unwilling to reconsider. Mayor Taylor indicated he was happy with the previous direction given to look at all options and would not reconsider. Commissioner Hay would not favor reconsideration either. Mayor Taylor declared it was 3-1 to not reconsider. (Commissioner Weiland was absent.) XII. LEGAL: A. Ordinances - 2nd Reading - Development - PUBLIC HEARING None B. Ordinances - 2nd Reading - Non-Development - PUBLIC HEARING None e. Ordinances - 1st Reading 1. Proposed Ordinance No. 09-018 RE: Approving amendments to the City of Boynton Beach's Personnel Policy (PPM) Manual, Section IV. Benefits, 07. Family and Medical Leave Act (FMLA) Attorney Cherof read Proposed Ordinance No. 09-018 by title only on first reading. He further explained there was a major rewrite of the Family Medical Leave Act that took effect January 16, 2009. The changes delete all the references and explanation of the Act and simple cross reference to the Act itself. It is a Federal Act and the City employees have benefits under the Act. 19 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 Motion Commissioner Hay moved to approve Proposed Ordinance No. 09-018. Commissioner Ross seconded the motion. Vote City Clerk Prainito called the roll. The vote was 4-0. (Commissioner Weiland was absent.) D. Resolutions: None E. Other: 1. Reconsideration of budget amendment to the 2008-09 Capital Improvement Plan for the development of NauticajMeadows Park. Mayor Taylor requested reconsideration that the residents be given only a passive park with native vegetation and pathways without bathrooms and lighting. A considerable savings could be realized. An appeal would have to go before the Building Board of Adjustment and Appeals to eliminate the bathrooms and lighting. Commissioner Ross was in favor of the passive park. Mr. Bressner cautioned there would still be maintenance costs and development costs. The Request for Proposal should go forward to solicit the desires of the neighboring properties. Wally Majors, Director of Recreation and Parks, advised there were no designs. The process involves public meetings with conceptual drawings and would allow community input. Commissioner Hay agreed money could be saved and the community would get what they requested, a win/win situation. Commissioner Ross believed another option would be to furlough the project entirely that was originally suggested by Commissioner Weiland. Don Scantlan, 30 Cedar Circle, indicated the 300 Property Owners Association had met and formed a committee to work with the engineer. It was the opinion of the President that bathrooms and parking were not needed. He commended the staff for the scope of the RFP and looked forward to working with the City on the design. David Katz, 67 Midwood Lane, understood the City would be the agent requesting the variance on the bathroom requirement and not the neighborhood. Mr. Majors agreed and added a master plan would be brought back to the Commission. Mayor Taylor declared there was consensus to pursue not doing the bathrooms, parking and lighting. 20 Meeting Minutes Regular City Commission Boynton Beach, FL March 17, 2009 XIII. UNFINISHED BUSINESS: None XIV. ADJOURNMENT: There being no further business to come before the Commission, Mayor Taylor properly adjourned the meeting at 10:53 p.m. ATTEST: Yn.~ '~L/' ".t /', L-L~.A:-/ dith A. Pyle Deputy City Clerk CITY OF BOYNTON BEACH ~Yj!rV Jose Rodriguez, ~~ Ronald Weiland, Commissioner f:t/~LA <. Marlene Ross, Commissioner 21