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Minutes 07-19-10 Budget MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THELlBRARY PROGRAM ROOM, LIBRARY, 208 S. SEACREST BLVD. BOYNTON BEACH, FLORIDA, AT 9:00 A.M., ON MONDAY, JULY 19, 2010 Present: Jose Rodriguez, Mayor Marlene Ross, Vice Mayor William Orlove, Commissioner Woodrow L. Hay, Commissioner Steven Holzman, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk 1. REVIEW PROPOSED CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2010/11 ; The meeting was called to order by Kurt Bressner, City Manager, at 9:07 a.m. A discussion was held regarding the proposed plan for presentations. A review of the operating and capital budgets was given. It was decided that the Capital Improvement Plan would be discussed and proceed to approximately 11 a.m. and then break for lunch. Jeff Livergood, Director of Public Works and Engineering, introduced the Capital Improvement Program (CIP) team consisting of Kofi Boateng for Utilities, Jody Rivers representing Parks and Recreation and Paula LeBlanc, Facilities Maintenance Manager, to give an overview of the capital projects. Capital plans usually involve growth in the community and plans for the residents and service. The economy crisis allows maintenance of the current assets so growth can happen when the revenues rebound. The capital plan is divided into gener91 government consisting of City building type programs, recreation buildings, parks and programs, transportation and the utility element. The capital plan is not a budget, rather a five year vision into the future. The important component of the five-year plan is the vision for the future, including major projects. Many projects have been removed from the five-year program for lack of funding. The Commission's vision may be different. One project that has been broadly discussed is sidewalks and they are important because the allow children a place to walk rather than the street. The Plan does not contemplate construction of new sidewalks as it has in the past. Only maintenance of the existing sidewalk system has been planned. Some sidewalks are failing and have trip hazards. Construction of new sidewalks has been removed from the budget pending direction from the Commission and availability of funds. Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Security -- City-wide Upgrades was one project that was planned for $10,000 per year. It has been an annual allocation to upgrade or replace cameras or access control. In 1213, $50,000 was allocated to re-key the City. Every five to ten years all locks and doors are changed to maintain the integrity of the security system. Mayor Rodriguez sought clarification on the $24,000 on the construction side that indicates allocated. The monies would have been budgeted in last two to three fiscal years to security. Mr. Davidson interjected they were dollars approved in prior years. Mr. Livergood continued that the $10,000 would be tied to new projects. There has been a constant funding source for security projects as they arise. The previous two years were $12,000 each and it was decreased to $10,000. The priority level would be medium. Mr. Livergood stressed any reductions could be allocated to the General Fund. Mr. Atwood made it clear that the Commission would only appropriate 2010/11. Miscellaneous Small Projects involved projects beyond the scope of minor repairs or maintenance. A carpenter or plumber cannot be sent out to make these types of repairs. The funds are for unanticipated projects that could be $5,000 to $35,000. It is an allocation for each year so the money is available. They are the types of projects where the dollar amount can be reduced, but if something arises there would have to be a budget amendment to dip into fund balance. The hope was the dollars would not be spent and remain in the fund balance. General Government Carpet Replacement represents the $75,000 spent annually on carpet replacement in office suites, West Wing or Library Program Room. In 2010/11 and 2011/12 the carpet replacement has been eliminated to save the dollars. It is reinstated in 2013. ADA Code Compliance was started several years ago with the intention of revising a number of buildings to be more American with Disabilities Act (ADA) compliant. The City is in compliance now, but could be better. There are issues with restroom door sizes and some doors could have different levers instead of knobs to be more compliant. It has been zeroed out for 2010/11 and 2011/12 because it is a big ticket item. Mr. Bressner interjected there are some buildings that may be phased out such as the Civic Center. Commissioner Hay inquired what the plans were and Mr. Bressner advised it would be demolished because the Downtown Master Plan and the preceding Town Square Plan anticipated the building would be taken out. The activities could be transferred to other City buildings if needed. General Building Infrastructure includes projects that are larger in scope but fewer in number. Mayor Rodriguez asked for the actual amount expended and 2 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Mr. Davidson reported year-to-date it was only $5.000. The projects could be reduced in scope. The figures are based on the past several years experience. Mr. Davidson explained there are four capital funds. One is primarily the Library project. Another fund is for small miscellaneous projects and one is for the fire assessment. Projects were not being sought out. The projects would arise during the year and have to be anticipated as best as possible. The balance with encumbrances is $4,042,166 in the fund for small miscellaneous projects. Another fund had a balance of $170,000 and year-to-date the expenses have been $4,598 with a balance of $165,000. Mr. Livergood cautioned the monies are not spent unless absolutely necessary. Mr. Davidson explained what was spent was reviewed and projected through 2013 in addition to previous expenditures. The allocations were for the new fiscal year. Mayor Rodriguez understood there were no new allocations required until 2013/14. Mr. Davidson agreed and explained the intent was if monies were available at the end of this fiscal year it would roll forward into the next year. Mr. Livergood pointed out that even though the fund balance is more; the authorization to spend next year is for only $50,000. Mayor Rodriguez wanted to know, in the new fiscal year, what is the new allocation and the balance transfer. The allocations would all be new money. Mr. Livergood further explained the money rolls, but it stays in the bank, in the fund balance, to provide dollars to projects in 2010/11, 2011/12 and 2012/13. The money is not spent unless required. It is the budget, but not encumbered. It is contemplated in the overall fund balance over the next five years. Commissioner Holzman thought a better question may be how much money was actually spent over the last five years out of the funds to ensure enough funds are now being allocated including a cushion. Mr. Livergood could provide the historical information. Commissioner Holzman's concern was money would be put in a fund that never gets spent or there is not enough money when needed. Ms. LeBlanc stated the projects cannot be foreseen. It was not scheduled maintenance. Mr. Davidson explained there was $240,000 in one fund, $3 million in another fund, $8 million in yet another fund. The anticipated revenues were projected for this fiscal year, minus a transfer that had to be made and then calculated how much was available in the CIP for next year in all three funds. The net was about $6 million. Transportation was $905,000, $1.8 million for Recreation and Parks, and $1.3 million for all general government. There remained $4 million and there was a one time transfer from the CIP to the General Fund for $3 million. When it is all brought together there is only a $700,000 balance being the gross perspective of all three projects together. Commissioner Orlove asked how the General Fund transfer was spent. Mr. Atwood responded it was used to balance the budget for next year. 3 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Commissioner Orlove understood if the money was set aside for a rainy day, but if there was not that much of a rainy day, then some of the money could be used in the general revenue fund. Mayor Rodriguez questioned why, if only $4,500 was used of the $170,000, was another $50,000 being added. Mr. Livergood corrected the statement that $50,000 would not be added. It was being allocated in the entire fund balance to be used for that project. When a repair item has to be done for $7,000 or $8,000 if the line item is not in the Capital Improvement Plan, before the project can be started, the financial aspect has to be completed. The line item in the budget allows the City to encumber dollars against the fund balance so the project can move forward quickly. The allocations are only place holders. The final amount in the fund would not be known until the end of the year. Mr. Davidson estimated the figure would be $1.5 million. Ms. LaVerriere interjected the $3 million transfer to the General Fund was the biggest expense. Staff needed the ability to pay for a $12,000 repair with a purchase order from Finance. It was anticipated that $4 million would be borrowed in 2011/12 and 2012/13 just to have a fund balance at the end of the five year plan of $108,000. If the $4 million is not borrowed, the Capital Improvement Plan would be short $3.9 million. Mr. Livergood added if the monies are not spent, at the end of the fiscal year, more funds could be transferred to the General Fund. The gas tax used to be allocated to the CIP fund but is now transferred 100% to the General Fund to support operating expenses. Grants, gas tax revenue and interest income would be the only new revenues going into the capital program. Municipal Building Energy Management is a discretionary item to allow green upgrades and improvements. In the long run it will save money in the energy costs. It will be driven by grants which mayor may not be reflected in the revenue stream. It may be additional monies than projected if additional grants are available from federal sources. The Climate Action Plan is critical to be the template for funding opportunities. It is a dynamic process. Vice Mayor Ross understood the Climate Action Plan would be presented at the next Commission meeting in a preliminary format and then set to a date certain for formal, public hearing and presentation. Mangrove Boardwalk located east of the Promenade is a stormwater retention basin built by the Utility Department in 2000 that included the walkways. It was constructed of treated wood and has not survived the moist environment. It is a maintenance project, but not one that needs to go forward. If it is not addressed soon, it will have to be closed for safety concerns. It would be a Commission decision to improve it or close it. Commissioner Hay established it was reaching the end of its life span. Mr. Livergood indicated there was $30,000 allocated in the current budget to begin the repairs. The Request for Qualifications of design firms had been issued. The design can be shelved if necessary. Commissioner 4 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Hay asked if the usage had been quantified. People are using it and it is a nice selling amenity to buy in the Promenade so it was value to the community and the downtown area. A redesign has to consider the safety factors and covering the utility line baffles for the stormwater. Cost economies can be done along with the redesign. It has to be more cost effective from a maintenance standpoint. Commissioner Orlove wanted Mr. Livergood's vision for the area and the potential life span of the new design. The three overlook areas would be made of a recycled material of some sort with the walkways moved up on land with a nice railing. There is no reason to have walkways over water and they are very expensive to maintain. The concepts would be brought before the Commission as the project moves forward. Commissioner Holzman pointed out it was in the CRA district and wondered if it was the responsibility of the City or the CRA. Mr. Bressner advised it started as a utility project and is designed to provide stormwater. It has been a City activity. Children's Museum Repairs was the next topic. It was a simple project to replace the pavers that have started to fail with all the traffic and pedestrian movement. HV AC Repairs is not a line item moving forward. It relates to various locations and the maintenance history in the various building including a plan of replacement. Capital Vision Subscription was a software program that supports capital improvement schedules and the Finance Department is the primary user. It manages the capital improvement plan and allocations. School Museum includes a couple of year of funding. There is a grant for work to be done on the windows for $294,000. An architect has been contracted to maintain the historical character of the building. The glass will be replaced with impact glass to reduce future expense of shutter installation and remove the brackets. Money is allocated in 2010/11 to replace a number of the wood floors that need repair. There would be $206,000 used out of fund balance to do the flooring. Mr. Bressner was confident more grants could be found to help maintain the building. The chiller at City Hall needs to be replaced as a stand alone project. It should have been done four years ago. There has been much speculation on the development of downtown and replacement of the City Hall and Police Station. It is still tentative whether it should be demolished, redeveloped at that site or moved out of the area. The Commission's perspective is crucial to give direction to make repairs. The chiller has to be replaced quickly. If a decision regarding City Hall was made within the next six months to one year the project could be delayed. After October 1, 2011 the process should be started and after the first year construction should begin. Ms. LeBlanc advised the towers were wood and 5 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 would be replaced with stainless steel with a much longer life. It could be moved if necessary. Miscellaneous interior, exterior projects include interior replacement of ceilings, exterior painting and general repairs on the exterior. There is a method to the madness of the type of projects being done. The $80,000 allocated would be spent on those repairs. City-wide fire alarm upgrades was one of the few projects listed as critical because of safety mandates. In 2010/11 there is an allocation of $120,000 and in 2011/12 $50,000. The project has been delayed. Most of the repairs need to be in City Hall and the West Wing. The panels are old and should be modernized. City Hall and West Wing do not have a sprinkler system or fire suppression system of any kind. Mr. Bressner indicated there are 12 to 15 incidents a year when City Hall or the West Wing has to be evacuated. There is a loss of productivity for 20 to 25 minutes as a direct consequence of the aging infrastructure. The alarms cannot be ignored and the building is not available to customers either. Commission Chambers and Boynton Beach TV is slated as an 2011/12 and 2012/13 project to modernize the Chambers, install cameras and get wired to transition to live or tape delayed Commission meetings and CRA meetings. It is totally at the Commission's discretion. Commissioner Hay inquired how many jobs would be saved if the project was not undertaken. Mayor Rodriguez speculated the City would be in the midst of a new City Hall by then. Mr. Livergood noted some projects are listed as placeholders so they are not forgotten and are important to the community. If the dollars are made available in the future they can be moved up on the list. Commissioner Hay remarked televising the meetings would be a good way to inform the public. Mr. Bressner added it was a nice project, but not an essential project. The cable access channel is available but the cable penetration in the community is no more than 35% to 40% of the households. Commissioner Orlove confirmed it would be time delayed and there were other options than having it stream live. The next project was the City Hall parking lot lighting and fixtures are sufficient but they are blocked by trees. The issue was scheduled to be addressed in 2014/15 and they were not sure where City Hall would be at that time. In the interim some alternatives were being investigated. The parking lot is not an easy fix. In Parks and Recreation the first project was the tennis court resurfacing that was done every year to have good quality of play. Jody Rivers added there were two types of courts and the $34,000 would resurface both types of courts. There is a 6 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 maintenance schedule replacing each court every three or four years. The Hester Center gym floor also is replaced each year for $8,000. Miscellaneous small park projects included repairs with funding of $75,000 in 2010/11. Staff uses the monies to fund the fund balance. If there is no line item, no projects can be done. It could be reduced. Mayor Rodriguez asked what had been spent in past years, because it appeared to increase from $17,000 to $75,000. Mr. Davidson reported year-to-date there is a balance of $11,000. Ms. Rivers explained repairs and replacements in parks have been identified. The allocation is based on actual anticipated expenses in the next few years. The schedule would be submitted to the Commission for the justification. Congress Community Park had just been approved and is slated to be $1.2 million in 2010/11 and zero in previous years. It is encumbered. Mr. Bressner added it was a hard appropriation of dollars for this project. Commissioner Holzman surmised the $1.2 million came out of funds for 2009/10 to date and no additional dollars were needed. Ms. Rivers clarified the monies would not be spent this fiscal year, but the process has begun to have the monies encumbered. Since the project was approved it was placed in this fiscal year's CIP. The RFP is being developed and bids will be taken. The allocation will roll into next year. Mr. Bressner contended it needed to be demonstrated to the Foundation for fund raising that the City is a partner in the program and the reason for $1.2 million. It is a pledge to get the Foundation some credibility for fund raising. Commissioner Orlove contended the $1.2 million did not include the monies saved on Oceanfront Park and the Jaycee Park and Ms. Rivers agreed. Park furnishings is an ongoing line item of $10,000 to replace benches and cans. Parks landscaping is an ongoing line item for installation of plants and shrub material. It is beyond what in house staff could do. Mayor Rodriguez asked if the streetscape proposal was included and Mr. Livergood replied it was allocated just for parks. There is no line item in the budget for streetscape. The proper location for streetscape would be the transportation elements. Mayor Rodriguez recalled there was a matching grant for streetscape for Seacrest Boulevard south from Boynton Beach Boulevard to Woolbright. The grant was not received. There was an allocation for $10,000 in matching funds and he wanted to know how much streetscape could be done for the $10,000 reallocated. Mr. Livergood stated the $10,000 was using the operating budget for Forestry and Grounds and it was actually less. Outgoing expenses were lowered as estimated expenditures for this fiscal year. Mr. Bressner advised there was funding through the unobligated fund balance. It can be restored that 7 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 way. The fund balance is better because of the budget cuts made this fiscal year. There will be competition for those funds. Commissioner Hay asked if there were monies available for cleaning alleyways. Mr. Livergood replied there is money available in forestry and grounds maintenance budget allocated for the maintenance of landscaping in public rights of way and they routinely use money to clean rights-of-way. Typically alleys are not included unless staff is available. There is no program designed for that purpose or funding within the operating or capital budget. Commissioner Hay asked if Mr. Livergood could recall what the cost was when the program was being used. Commissioner Hay was getting many requests because the alleys were growing up and becoming hazards. Those projects had been done by staff in their spare time or if contractual dollars were available. A specific line item had not been included. The intent was to try to abandon the alleys so the recurring maintenance expense is eliminated. Mr. Bressner remarked there are underlying easements for utilities. Tax revenue could be realized if the alleys are turned over to adjacent property owners. Mr. Livergood advised it was a labor intensive process to abandon an alley and have to go through Planning and Zoning rules. The Engineering staff would be less in numbers next year. The next project was canal dredging that is done every four or five years. Grant funding is used to dredge the canal going to the boat ramp dealing with the Florida Inland Navigation District for 1013/14. Intracoastal Park painting project is separate from some of the smaller buildings, has been identified as a project. The pavilions need to be painted. They were constructed in a very harsh environment. Considerable maintenance expense in years to come has to be recognized and budgeted. Art Center Roof Replacement was programmed because the expense is $80,000 and it was part of the Parks and Recreation programs for 2010/11. The roof does leak and money had to be spent to remediate mold in the building. It has been delayed because of discussions to do a second floor on the Arts Center. One or the other has to be done. A second floor was not an option at this time so the roof has to be replaced. A second floor would cost $1.5 million. Oceanfront Parking Lot includes an automated system. Mr. Bressner did not support the project and preferred a sticker system for residents. Mr. Livergood explained $500,000 to $600,000 a year is spent on operating expenses. Ways to generate the most income to pay for expenses at the Park were contemplated. The current system is good but does not cover the expenses of the Park. The Commission had to decide if the goal was for the parking revenues to better fund the system or the General Fund pay for the continued operation. There is a way to increase the revenues based on a different parking arrangement. There could be meters or meters and stickers. From a public service perspective, Mr. 8 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19. 2010 Bressner contended the sticker system provides residents have access to the beach. He admitted the revenues do not meet the operating needs of the beach. Alternative systems could be established as a compromise. Mr. Bressner felt the residents should have preferred access to parking. Mr. Majors reported there are 260 available parking spaces. The parking permits generate approximately $200,000 and the total operations including the lifeguards and parking attendants is $500,000. Commissioners Holzman and Orlove felt a bifurcated system should be established. An automated system would allow the gatekeeper to monitor the parking lot more closely. Mr. Livergood advised the project was list in 2010/11 because enhanced revenues would coincide with future plans. Mr. Majors commented an analysis had been made 10 years ago and some type of redundancy has to be established. The patrons should not have to walk too far to pay for their parking. The scope of the project is unclear and the project would be delayed for a few years or begun immediately. Commissioner Orlove wanted to move forward with the automated system and may assist in bringing in revenue to offset the maintenance of the Park. It would provide a way for visitors or residents to pay as you go, rather than a yearly decal. A decision on whether the General Fund or the Capital Improvement funds should be used would be helpful for staff. Commissioner Holzman alleged a bifurcated system would absorb a large portion of revenue to offset running the Park. A guard at the gate could be eliminated. A sticker would also be helpful for enforcement purposes. Mr. Bressner urged staff to keep at least a portion of the sticker system alive. Oceanfront Park Buildings requires direction from the Commission. The roofs on the buildings are failing. There maybe elements that can be salvaged. It is a maintenance project that includes the restrooms, concession station, life guard offices with a total project cost of $2.3 million for construction. The 2010/11 allocation is for $200,000 to get an architect on board for preliminary plans and a project scope. Mr. Bressner projected the project could be funded when Recreation and Parks trust fund dollars begin flowing again and when development resumes. Due diligence should be done to determine if interim repairs would be sufficient. The project is pushed out to 2012/13. The $200,000 allocation for 2010/11 are dollars the General Fund could use. Commissioner Orlove opined the completion of the boardwalk would be amazing. The deteriorating buildings do not compliment the entire area. Money has to be spent where the assets are. Planning should at least be done at this point. Ms. Rivers speculated two years would be needed for the design process and permitting. Commissioner Orlove and Vice Mayor Ross wanted to move forward with the project. Commissioner Hay argued with the current state of the economy it is a discretionary item that could be delayed and repairs made. Commissioner Holzman agreed it could be pushed off to at least next year at the earliest. There are other projects that will require the $200,000. 9 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19,2010 Mr. Livergood advised the project scope has to be identified first. The $200,000 in 2010/11 would accomplish that goal. The $4 million of debt will help complete the project. The projects cannot move forward unless the debt is approved. An architect/engineer would identify the possibilities. Commissioner Holzman did not think it would be money well spent. Commissioner Hay asked if another year would make that much difference. Mr. Livergood responded the roofs and soffit system were the biggest concern. Minor repairs were being done until a new roof could be installed. Mr. Bressner believed staff investigation could be done without incurring $200,000 expense for design and engineering fees. The $2.1 million would be contingent on a bond issue being approved for projects. It is a qualifying activity that can utilize the Park trust funds. It is a major attraction. The location of the facility trumps the geographic limitations on the trust fund. Mr. Livergood offered an alternative using $75,000 in 2010/11 to do a preliminary assessment, scope and programming phase and eliminate 2011/12 and 2012/13. It will change and offset the amount borrowed. It will be taken from both sides of the ledger. After 2010/11 the architect's assessment will be the basis to make an informed decision about when to do what. There was consensus to move forward as suggested. A good integrity assessment on the building has to be done first. The amount was reduced to $50,000. Oceanfront Parking Lot has to be sealed but it was waiting for completion of the boardwalk. Madsen Center Shuffleboard coating will cost $15,000 to seal the courts. Its popularity is declining. There is a shuffleboard club with 20 to 25 members. Mr. Majors advised they meet five to six days a week for a couple hours. They have seven or eight tournaments a year. There is nominal fee of $10 to be in the club for the entire year. Commissioner Holzman thought the fee should be reassessed to use the shuffleboards. Mr. Livergood projected the fees would not cover the costs. Mr. Majors mentioned they used to have access to the building and now they do not. Mr. Majors agreed it could be analyzed. The fees could be raised this year and see if the use decreased. Commissioner Holzman argued if the sports are to be maintained at a certain level, the fee has to be increased. Commissioner Orlove agreed with Commissioner Holzman that $10 a quarter would be appropriate. Mr. Bressner stressed it was a legacy program that has a diminishing base of participants. The fee had not been changed for many years. Mr. Atwood pointed out that all the remaining projects are for future years. Mr. Livergood reviewed the list of projects and suggested allocations as follows: Palmetto Greens greenway resurfacing -- $20,000 10 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Forest Hill Park renovations - replace existing picnic shelter in 2013/14 Intracoastal Park Clubhouse - painting in 2012/13 for $45,000 Meadows irrigation and landscaping - 2013/14 Oceanfront Park enlargement of maintenance building - 2013/14 Civic Center ceiling replacement - 2013/14 Pioneer Canal Park - Construct multipurpose field in 2013/14 Dugouts at the Hester Center baseball field - 2014/15 Boat Club Park Attendants' Building maintenance - 2014/15 Quantum Park, Meadows, Nautica parks - 2014/15 The parks have been treated equally because there is no money to build them. It is impact fee money. Commissioner Orlove wanted further discussion on the priority for the parks. It was agreed another time would be more appropriate. Mr. Bressner stated the parks listed may have problems besides money. Girl Scout Park had access issues. Meadows and Nautica Park have no consensus on a active or passive park. Nickels Park is owned by the City in unincorporated Palm Beach County. If the area is annexed in the future a park may be worthwhile. Quantum Park has had proposals for an eco park or other passive activities. It was originally identified as an active recreation area when Quantum was a planned industrial community. The zoning change altered the planned uses for the park. No one wants an active recreation area in their backyard. The Sara Sims renovation is the balance of the campus area to be completed. It is dollars that may have grant funding opportunities. Commissioner Orlove and Vice Mayor Ross felt strongly that Quantum Park should be an eco park and should have more visibility on the radar. Mr. Livergood agreed, but conceded all the parks have value. Vice Mayor Ross offered that the Meadows Park has two sides that are completely opposite of each other on passive or active park status. Mr. Livergood stressed the project scope can be created and that is discussion all in itself. Then the funding source has to be determined and the project scope may not be supported. Vice Mayor Ross added the Quantum Park links to the blue ways and greenways and is truly a special park that could qualify for significant grants. She personally felt Quantum Park should be a priority project. Sidewalk replacement was the next project. New sidewalk construction was not being proposed. There is a higher responsibility to maintain what already exists. A dollar amount is allocated each year and whatever figure is allocated the money can spent on repairs each year. Street Maintenance involved the microsurfacing program and was limited by the funds received from gas tax revenue. Gas tax also pays for the Street Division, to a degree the Shopper Hopper program and anything else that pertains to 11 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 transit and roadways. The Mayor had proposed new streetscape projects and Mr. Livergood pointed out the allocation of $675,000 would include that type of project. A new line item under the transportation element for street scape projects may be more appropriate and reduce the $675,000 by $25,000 and transfer to the new line item. Commissioner Holzman inquired if all the monies were actually spent and Mr. Livergood responded all the monies are spent. Commissioner Holzman contended the $25,000 should come from other savings of $150,000 rather than deducting from the $675,000. Commissioner Orlove suggested other street scape projects maybe appropriate if more funding is available. Mr. Livergood proposed $25,000 for each of the next five years. Commissioner Orlove agreed. The project on north Seacrest was continuing for the rest of the year. The southern route could be done separately and keep the project ongoing along Seacrest Boulevard. Commissioner Hay asked what the maintenance costs would be for the northern end of the Seacrest project. Mr. Livergood estimated $25,000 to $30,000 a year. Bridge repair maintenance was done based on inspections by the Florida Department of Transportation. The money is spent each year. Mission Hills bridge and SW 22nd bridge were slated for this year. FEC Crossing Upgrades are budgeted each year because the FEC rail system does not give notice of their planned repair and replacement of crossings. The cost to the City is around $30,000 each year. Commissioner Holzman inquired who was responsible for maintaining the grounds along side the tracks. The grounds would be within the FEC right-of-way and would be their property. Some areas the City leases the land from the FEC for landscaping purposes. Commissioner Holzman asked why the large trucks were allowed to park at the corner of Ocean Avenue and 4th Street. Mr. Livergood knew that FEC owned a private parcel adjacent to the tracks. There was speculation it could be a Code Compliance issue. Commissioner Holzman asked if the siding at the same intersection could be used for a historic trolley old caboose to be used as a coffee shop or small cafe. Mr. Bressner was informed there used to be a passenger station in the area but the option could be pursued. Fire Station Maintenance involved building improvements. People live in the stations 24 hours a day. The last project was exterior renovations at Fire Station #3. Mr. Atwood gave a history on the fire assessment fund. It was established nine years ago as a construction fund to build new stations and added personnel expenses to add the firefighters to man the new stations. Over the last couple of years the fire assessment has not bee n a capital fund. The funds still exist, but this is the capital portion of it to do smaller fire department projects. It is not the total fire assessment fund. Mr. Bressner related it was originally capital projects 12 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19,2010 and operating expenses blended. The Fire Stations were completed. The reauthorization of the fire assessment last year was when it became an operating fund. If the Downtown Master Plan is followed there is possibility that Fire Station #1 may have to be relocated. The allocation to the General Fund was 3.7 million and the savings realized from Fire Station #5 was switch to the General Fund. Mr. Livergood concluded his remarks by thanking the Commission. Kofi Boateng, Utilities Director, commented the projects were either in the ground or confined to the two water treatment plants or 200 lift stations. The primary drivers are essential regulatory requirements intended to ensure the safety and health of the community as well as protect the environment and sustain it. The projects are design to meet the requirements and increase the capacity of the system, addressing future growth, support improvements in water quality and ensure a reliable system that minimizes interruption in the system. Efficiencies were also a goal. The five year project is $19 million. There are two main projects; the East Plant rehabilitation and the interchange project. Each has five major sub-parts and together form a significant portion of the CIP. The East Plant rehab would expand the water treatment capacity and includes the on site chlorine generation and an unfunded regulatory mandate called the ground water rule. Mr. Bressner interrupted and announced lunch had arrived and a short break would be appropriate. The meeting recessed at 11 :26 a.m. for lunch. The meeting reconvened at 11 :41 a.m. Mr. Boateng remarked the Utilities CIP was different and an overview may be appropriate. There were a cluster of projects that are regulatory driven. The raw water interconnect was another project and the pumping facility would move the water from the West Plant to the East Plant. The two clusters of projects form about 51% of the five year projection. There is a significant lag in the funding to support the projects through the next year that may require borrowing money. The rest of the projects would address water quality issues, delivery issues and drainage issues within the community. There is an ongoing asset management remote control program that would add significant efficiencies in operations. Five years ago the Commission approved a business case evaluation that is used to justify every capital project. It allowed establishment of a criteria driven by water quality, regulatory issues, expansion for further grown and criticality which is a measure of the consequences if the slated projected were not completed. A prioritized and streamlined list of utility projects was created. The list was 13 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 passed through a rate study and that generated new user fees that would help implement the projects over the years. The funding structure is not straight forward and there are three main funding sources. The first source is the net operating revenue over expenses. One-half is used to defray the cost of some CIP projects and the other half is set aside as a reserve or contingency to address unexpected events. The second funding source is capital facilities charges that are fees charged to new customers. They are used to support any expansion projects in the system. The third funding source is borrowing. It is used to cover projects not funded by the net revenues or the capital facilities charges. It does include debt coverage or a covenant that binds the Department to meet a certain net revenues. It is a guarantee that the debt obligations can be met. It sends a signal to the lenders that the City is financial sound and better rates can be obtained. Mr. Bressner emphasized no tax dollars were being used. The revenue stream is paid through user fees totally and development related revenues. The capital fees are paid by developers, capacity charge dedicated to fund capacity expansion. With the slump in new development, past payments have supported the projects. The balancing act becomes more critical and the business case evaluation program had a significant result that saved $35 million of capitalized costs in 2006. The City had to re-orient its approach to the utility expansion and opted to building the Floridan wells out west and provide the interconnect between the East and West Plant that would better utilize the capacity. The current problem is programming the major project in a way that is timely, but does not burden the utility customers with premature debt. The West Water Treatment Plant project is $14.6 million, so the bond issue will have to be increased. Commissioner Orlove inquired what other sources than user fees would be used and Mr. Bressner replied development related revenues or grants if available. Grants have become a diminishing resource for utilities. Reducing energy costs through grants could generate some savings. Commissioner Holzman asked what the cost of borrowing would be at this time. Mr. Bressner replied about 4 ~% has been used. If the rates were lower there could be some value to encumbering more now than future years to take advantage of paying less for debt service. Mr. Bressner cautioned the IRS was very willing and able to require repayment. Mr. Atwood added the funds must be spent within three years. There was stimulus funding available for utilities using the Build America Bonds. The debt would still be retired from the revenue stream and not be retired from property taxes. Commissioner Hay wanted more information on what happened that the West Plant had gone down for two weeks recently. Mr. Bressner advised the water supply line going into the plant has an acid injection system to reduce the 14 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 alkaline levels in the raw water from the well fields. It was believed the acid injection eroded the cast iron pipe at the joint and the plant had to be shut down. The County had been contacted and the contract requires the purchase of a million gallons a day up to five million gallons. The County began pumping five million gallons and the East Plant has ASR wells that create an underground water bubble that contains treated water that is used during dry seasons in the distribution system. Commissioner Holzman requested the amount of the fund balance and how much was utilized versus how much is being put in for next year. Barbara Conboy, Manager of Utilities Finance and Administration reported the reserves were in the negative. Last December permission was given to borrow from the capital fees up to $15 million. Some of that fund balance of $19 million would be moved and the current bond issue is 98% spent. It is estimated that net revenues of $2 million or $3 million from the core and talk to Finance about the four month reserve funds. The projection for the project this year was $24 million. Mr. Bressner advised $18 million had been programmed for bond issues of the $24 million for capital projects. He felt the amount to be borrowed was too high. The sewer rehabilitation program should not be funded from bond issues. Bonds should only be used for expansion of activities. It challenges Utilities to find a revenue stream. The Seacrest project was included in the bonding. The spreadsheet and account balances were reviewed. The NE 3rd storm water project for $600,000 and the waster water pipe renewal was appropriate for debt. There is a stormwater fee that should be used. Ms. Conboy advised the stormwater fees come in through operating revenues that is $3.3 million a year. It would be net revenues moving over to CIP for CIP projects. Mr. Bressner contended there needed to be an appropriate nexus between the dollars being spent and collected. Wastewater pipe renewal for $2.5 million has to come from R&R or maintenance construction activities and not from bonds. Michael Low, Deputy Director of Utility Operations, discussed the East Plant project. It has been rolled into the consumptive use permit with the South Florida Water Management District that work has to be expedited and completed by 2013. The project had been split into four elements. The first phase is replacement of the chlorine system with an onsite generation system. There is also repairs to the sludge de-watering system that was damaged by Hurricane Wilma. The design incorporated expansion of the plant to the 24 million gallons a day potential. Staff had completed an investigative study on a filter and completed disassembled it and checked it out that gave a view of what was need for the seven remaining filters. It is a collection of a variety of projects. The next project is the East Plant changes required by the new ground water rules. The Environmental Protection Agency had changed the regulations with regards to plants operated from a ground water source such as wells. Proposed 15 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 plans have been submitted to the Health Department. The Commission had already authorized purchase of the instrumentation for the West Plant. Mr. Boateng stressed the urgency of the projects that needed to be done to satisfy the ground water rule. Tests are done during the course of the month within the system. The current regulations indicated if there is a positive reading and the test fails, samples have to be collected, tested and submitted. IF the test fails and subsequent testing fails again, a public announcement has to be made that the water is no good. The retrofits have to be put in place to avoid any negative tests. Commissioner Orlove confirmed this type of project was not part of the bond issue. Pete Mazzella, Deputy Director of Utilities, noted it was anticipated the bond issue would not occur until later in the next fiscal year. The City could not afford to take the risk of public notification. The expenditure would have to be reallocated out of current fund balances for facilities charges. Mr. Bressner commented it was all relative to the urgency of the project. It is a high priority part of the Eat Plant project. Mayor Rodriguez discussed the parameters of the testing procedure and outcomes. Mr. Low continued the next project of the East Plant rehabilitation related to capacity expansion to 24 million gallons a day. The capacity has to be attained by 2013 in order to meet the limits of the consumptive use permit. The work is split into two element; one that must be done including replacing valves, adding to storage and other chemical systems, plus rehabilitating one of the basin currently out of use. The second element concludes recommended changes. One is make additional water storage of 3 million to 4 million storage tank. It contains an energy saving element by use new, high service pump and utilized the most appropriate low cost in terms of operation. Equipment and reduce the electrical costs of pumping into the distribution system. Mr. Mazzella covered the interconnect project that had three basic complements. They are all water main and the ion exchange units would be situated at the West Water Plant would pretreat the water for removal of color and organics so the reject water can be discharged down the ejection wall at the West Water Plant. The pumping station would pump water from the west through the six mile pipeline to the east. The first portion was divided into three sections in order to expedite construction and design. The section along Military Trail had to be completed by Thanksgiving. Once approve, it takes $4 million from the reserve and puts it in the encumbered status. There is ongoing design work and easement acquisition that has to be done. The total cost of the project is $19 million and minor disputes have not affect the critical path of the project. 16 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 This was one of the projects Mr. Bressner had requested be prioritized to get the interconnect complete by fiscal year 2011/12... Mr. Mazzella indicated the raw water main is one of the more expensive portions. All three facets have to be examined to determine the critical path and funding needs on the one project. The improvements at the East Plant have to fall together by 2015, otherwise there will be a water shortage situation in the east well field because the same amount of pumping cannot be done. Mr. Mazzella moved to the ion exchange unit for the well field interconnect project. The preliminary design has been completed and ready to go to final d design and construction. It might be done as a design build project. Additional debt would need to be incurred because the funds are not available in the Capital Improvement funds. Additional debt will become critical to build the project over the next two years. There was a possibility it could be completed by the end of 2011/12 if the final design was started immediately and working towards construction. There was no objection to moving forward. It would involve additional debt. Mr. Bressner approved the debt. The last and smaller portion of the well field interconnect is the raw water pump station running parallel with the ion exchange unit. Total project cost is estimated at $1.6 million. It might be rolled into the ion exchange. The ion exchange and pump station would be at the West Water Treatment Plant. Mr. Boateng explained the raw water at the West Plant has a different chemistry from the water at the East Plant so it has to be treated more. The chemistry of water is different and involves a different process to treat the water. Commissioner Holzman wanted to discuss the Seacrest Corridor Neighborhood improvements. Mr. Mazzella recalled when the Seacrest area was designed and built back in the 1950s and 60s two-inch diameter water mains were installed down all the east-west streets in the rear easements. The useful life of pipe material has been exceeded, plus the original pipe was substandard. Larger mains were put on the north south streets and at the corner of each road a fire hydrant was installed. The project will replace all the substandard two-inch lines with six or eight inch lines in the east/west direction and additional hydrants. All the water meters would be moved to the front for access and solve many problems. In the process the swales would be recontoured, some drainage issue eliminated and install some catch basins and ex-filtration trench where needed. It will improve the stormwater treatment and retention. It will take a year and a half to two years. Shortage of funds is holding the project back. It was another project that Mr. Bressner approved using bond funding to move it along. It is not a maintenance type project, rather a reconstruction project. Some of the stormwater portion may be funded by other sources other than the bond issue. 17 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 The preliminary figures indicate a bond issue of $13 million to $15 million. Mayor Rodriguez inquired about the time frame for the bond cycle and Mr. Bressner estimated 90 days from approval by the Commission. The City's bond rating would be good. Mr. Mazzella pointed out by shifting some projects from the future debt service to CIP is going to result in less monies. Some of the proposed projects to be funded from the fund balance would have to shift into the bond issue. Next year's reclaimed water main expansion running to South Federal Highway or up to Cypress Creek would go into the bond issue. Mr. Bressner stressed the issue was the timing of the bond to not borrow too much too soon. Mr. Atwood explained the bond coverage had to be adequate. Mr. Bressner indicated the totality of the projects was $24 million to $15 million for utilities for next year. He reviewed projects proposed by Utilities using debt in fiscal year 2010 or 2011 that came to $18.6 million. There was discussion about borrowing $13 million dollars. There is still some internal coordinating that has to be achieved between the capital planning and operational planning. He determined only $14.9 million was appropriate for bonding because they were not for rehabilitation of existing infrastructure. Replacement is new construction. The meeting recessed at 12:54 p.m. 2. REVIEW PROPOSED BUDGET FOR FISCAL YEAR 2010/2011; The meeting reconvened at 1 :11 p.m. Mr. Bressner reported $125,000 could be added to the General Fund revenues. The budget preparation had been challenging due to the uncertainty and lateness of the data. Some data was still incoming on impacts to the revenue stream for the next fiscal year. He did not anticipate any significant increase in the revenues other than what had been utilized for budget purposes. There was concern that the conservative approach was sufficient to reflect the revenues accurately. The City services are labor intensive and proposed personnel cuts had become necessary. There were more monies available in the fund balance due to cut backs during the current fiscal year. Barry Atwood, Director of Finance, gave an overview of the General Fund. The total budget is $175 million. In government there are many funds and some have restricted uses attached. The largest funding source is the water and sewer revenues and other capital sources. Property taxes garner $22.1 million. There have been unusually high transfers from other funds into the general fund compared to other municipalities. The proposed transfer for next year is $24.5 million. Mr. Bressner explained the Risk and Fleet funds derive their monies 18 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 from the other departments to fund their operations via charge outs for services. Those funds are considered internal services. The Human Resource services are not included in each department's budget. In the $69.3 million general fund budget, public safety for police and fire comprise two-thirds of the total. Most of the other department budgets have a high percentage of monies for personnel services. There is very little latitude for budget cuts if the policy were to continue with no lay offs. The transfer monies from other funds have been depleted. The intergovernmental funding sources reflect mostly State funding with some County funding included. The fuel tax revenues of $1.125 million have to be used for transportation type services. The millage and property tax revenues were reviewed from 2005 to present. In 2005, the millage was 7.5 for $23.7 million and increased through 2007. The current revenue is $26.1 million representing a significant drop from a $37 million high. The assessed valuation in 2004/2005 was very close to the current level. Mr. Bressner added the taxable value of the City has gone down by about 57% since 2006/2007. It was $4.2 million, rose to $6.4 billion and now it is $3.98 billion. In 2008/2009 the State legislature demanded a reduction in the millage rate. Mayor Rodriguez noted it was a totally different economy now. Mr. Atwood pointed out the 2005 fund transfers were $10 million and now it is $22 million. The Community Redevelopment Agency (CRA) Tax Increment Funding (TIF) would be going down to $3.3 million. The net property taxes are down 6%. The licenses and permits revenue have experienced a 75% reduction, constituting the largest decrease in revenue that is tied to the Development Department. Mayor Rodriguez surmised the work load in the Department had to be reduced by a comparable percentage if revenue reduced from $8 million to $1.9 million. Mr. Bressner disagreed because the nature of the permit activity had changed. There are now smaller permits that require staff time. Major development activity has slowed down, but other permit levels continue. It would not be a straight line reduction. Mr. Bressner stressed that staff had not been increased when the activity was greater. Much of the work was contracted out and could be shed when the economy weakened. Compared to other jurisdictions, we are comparable. Three individuals were laid off when mid-year adjustments had to be made in the current year. There will have to be additional consolidation of resources to share inspection responsibilities to more efficiently utilize staff resources. Overall, the $507,756 fund balance represents the fact the 10% sacred reserve was formerly based on $70 million dollars of expenses that have been reduced to $63 million. The current fiscal year expense cuts have improved the outgoing fund balance for the current year. The emergency fund appropriation can be changed, if expenses continue to decrease. The 10% reserve balance would reduce allowing additional fund transfers to the General Fund. 19 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Mr. Atwood cautioned that $5 million transferred from other funds this year would not be available in the coming year's budget since all reserves would be depleted. The permanent deletion of the Shopper Hopper service would give approximately $200,000 in a continuing revenue source. Mr. Bressner recommended furloughing the program so the monies would be available year- to-year. Mayor Rodriguez felt more discussion was needed on the elimination of the Shopper Hopper program. He noted the Child Care Center funding had been reinstated in total and the fund raising efforts of the Center had not been factored into the equation. Commissioner Orlove recalled the money had been reinstated, but in the future, the Center has the ability to raise money on its own and the funding only restored for the current fiscal year. He felt strongly the Center should be responsible for raising some funding other than relying on the City. Commissioners Orlove and Holzman wanted to address each department's budget before making any decisions on the Shopper Hopper or Boynton Child Care Center. There were two funding sources that were readily available according to Mr. Bressner. First, the timely payment of pension obligations that had been implemented. It will reduce the deficit to $148,244. Additionally, the hospitalization rate increase was budgeted at 30% and by changing providers it will only be a 10% increase for a savings of $694,000. It would include an increase in out-of-pocket costs to the employees for both family and individual coverage. The net effect would equate to a $545,756 surplus in the General Fund budget. Police Department Chief Immler gave an overview of his projected budget. The operating expenses would remain the same as last year, except the overtime budget had to increase because the current figure was unrealistic. The reductions from the budget were the deletion of the Neighborhood Specialist position that would not affect operations or services. The loss of the Community Service Officers (CSO) would have a serious impact on services. Recently, one CSO position became vacant and would not be filled, three have moved up to Police Officer status leaving four positions to be eliminated. The reduction in the budget would be $207,000. From an operation standpoint, the loss of CSO personnel will limit the amount of time Police Officers are on the street by approximately 1,200 hours a month. To lessen the impact, a deferential response for traffic accidents would be instituted based on the severity of accidents called into 911 and officer availability. Only accidents with personal injury and/or disabled vehicles would warrant a response. 20 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 There were ongoing discussions with Boca Raton and possibly Delray Beach to share resources for a pre-screening lab for DNA analysis. It would greatly streamline the process. The Evidence Property Custodian position became vacant due to retirement, but it would be filled with another sworn officer to handle the workload. The current employee works an 8-hour day and is on call 24/7 which incurs overtime expenses. The largest personnel cut would be the seven Records Technicians and Records Supervisor. Records management is largely automated unless a citizen requests a printed report. The lobby would be closed and volunteers utilized as is it is done on the weekend currently. There is the possibility that record retrieval could be done online. A similar system has been initiated for traffic accident reports through a private service. It would minimize the impact. Some functions will necessitate officers to be off the street more hours and accreditation status may be lost because a fairly robust records system has to be maintained. The accreditation ensures the citizens of Boynton Beach they are getting the best police services because the standards are very stringent. Many business owners have indicated they get decreased insurance rates because the Police Department is accredited. It is highly desirable. Commissioner Hay inquired if any of the Records Technicians could be re- assigned. There is an opening in Communications that may be a possible transfer. Commissioner Orlove understood the records personnel had a public relations aspect and he hoped some of the jobs could be saved and sworn police officers remain on the streets. He suggested three or four positions be maintained, especially for the benefit of the accreditation status. Commissioner Orlove also questioned the amount budgeted for overtime and its accuracy. Chief Immler stressed the Department does aggressively pursue any possible reimbursement of overtime expenses. Those funds have greatly diminished and the projected funding will be needed. It cannot be controlled very well based on the type of cases to be investigated and prosecuted. Four Sergeants were moved from administrative duties to patrol and there are currently 14 to 18 officers minimum on the street a shift. Mayor Rodriguez established the process used after hours was working efficiently and would have to be implemented during regular day-time working hours. The automated system cannot be totally relied upon because some citizens cannot access the system or determine what they actually need to make a request online. Mayor Rodriguez agreed that perhaps one or two positions should be restored to retain accreditation. 21 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Commissioner Holzman saw the Police Department as fulfilling two roles; one being the function of the Police and the second, having a face to the public to gain trust and rapport with the citizens. He did not want a sworn officer greeting individuals in the lobby area. At least two to four of these jobs should be saved for the sake of the interaction with the public and also saving the accreditation. Commissioner Holzman inquired if other expenses could be reduced to save some of the positions. Chief Immler replied the largest reduction was in the Fleet Fund and not replacing 20-22 vehicles. The monies left in the operational account are for mandatory training and supplies that have to be replaced over time. Mr. Bressner stressed the fleet deferral was for only one year and not an ongoing savings. Commissioner Holzman did not feel a one-year deferral of an expense was an actual savings. Jeff Livergood, Director of Public Works and Engineering, recalled there would be a savings of approximately $120,000 by changing the life cycle of a vehicle so the annualized expense would be less. Chief Immler mentioned the Law Enforcement Trust Fund had paid for the purchase of the Citizens On Patrol vehicles. The local criminal element had assisted in maintaining a healthy flow of funds into the Fund to replenish the balance. Commissioner Hay saw an opportunity to save all the jobs with the current surplus and other funding savings that may arise. Chief Immler indicated $1.6 million in grant monies had been awarded that funds eight of the officers. Another COPS funding request has been made, but it cannot be applied to civilian employees. There would be three clerks remaining to handle the NCIC and do work mandated by the Department of Justice. Retaining an additional three records technicians would be a huge help to the Police Department. Ultimately Commissioner Hay wanted to save all the positions. Commissioner Orlove opined retaining the records staff or a portion thereof was his main interest. Vice Mayor Ross waned all the records staff saved, if possible. She also mentioned the cancellation of the contract for police protection with Briny Breezes. The impact was to cut the revenue out of the budget in the General Fund. Mayor Rodriguez commented if the goal was to save jobs, he would rather have the CSO's out in the field dealing with problems and accidents and assisting police officers rather than a records clerk behind a desk when volunteers and automation can replace those efforts. Chief Immler asserted the loss of both types of positions would be comparable in relation to the use of a sworn officer's time. Commissioner Holzman asked if the accreditation required CSOs and it did not. He also inquired if it was common practice for departments to use CSOs and Chief Immler concurred most all departments use CSOs because they handle as 22 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 much work as sworn Police Officers and are much less expensive. Commissioner Orlove reiterated the accreditation required the records staff and not the CSOs. Chief Imm!er explained the most prevalent crime in Boynton Beach is shoplifting consuming an inordinate amount of officer time. A deferential response to any 911 call has an overall impact on many citizens. The retail aspect is a big part of the community and all calls are important. The CSOs cannot handle shoplifting cases because they are trained only for traffic related duties. The Neighborhood Specialist was working with the Crime Prevention Division and those prior responsibilities could easily be absorbed. Commissioner Hay noted the position was a vital interface in the community and a liaison for many organizations. Mr. Bressner advised it was a discretionary program that is not critical. The incumbent employee has property rights that would allow her, if qualified, to do other job responsibilities and displace another employee that could have a domino effect to other positions. The skill sets must be possessed before another employee can be displaced. Commissioner Holzman stressed it was a discretionary program and cut backs need to be made. It is an unfortunate development for everyone. Mayor Rodriguez reiterated layoffs were inevitable and every department head has proposed efficiencies can be achieved with the personnel level they submitted., The Commission's job is to hold the department heads accountable for what they have proposed and offer the services needed. There are many unknowns and the displacement of employees could translate to other employees in other departments ultimately being laid off rather than the individual proposed to be retained. Commissioner Hay understood the process, but felt he had a responsibility to save any or all jobs. The process was not to just blindly accept the department head's budget and have no impact whatsoever on the personnel issues. Vice Mayor Ross confirmed that every department head had been asked to cut 6% or more. Chief Immler noted 2.5% had to be cut from the current year's budget too. Vice Mayor Ross voiced concern that the approach to cut all budgets by 6% may not be fair and equitable in looking at the proposed cuts. Mr. Bressner explained all department heads were given the same challenge and some were able to comply and others could not. Chief Immler advised his target was $1.5 million to hit the 6% and he only achieved a reduction of $1 million. Commissioner Holzman continued to seek ways to reduce the overtime expenditure. Chief Immler explained the staffing level in the State Attorney General's office, Public Defender's office and private counsel has impacted scheduling for all departments. The overtime figure is $808,000 and 23 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 reimbursable is $435,000 for a total of $1.2 million. The reimbursable allocation should cover those costs 100%. Efforts were being made to limit the number of individuals on call when possible. Most of the expense is contractually obligated through the unions. Mr. Bressner reported the revenue coming into the General Fund is $525,000 to cover the salaries and Social Security. It does not cover the police pension share that would be another $80,000. There is a Memorandum of Understanding (MOU) including a salary freeze that is still being negotiated relating to external security details. The PBA requested the external patrol allocations be left in the budget. The fee to the end user may be increased. The exposure for the City is the increase in pensionable income. Chief Immler estimated it was approximately $200,000 a year. Mayor Rodriguez concluded there was not a break-even situation. Chief Immler stressed there is also an opportunity for reimbursement of overtime when a regional task force is established and federal funding is available. Scott Blasie, Code Compliance Administrator, indicated Animal Control and Code Compliance could continue to operate meeting the City Manager's 6% mandated reduction. Replacement of an animal control officer had to be deferred until January. The impact would be dead animal disposal would be limited and the feral cat program would cease to exist. The service can be provided by the County, but it would not be as expedient or effective. Boynton Beach was the only City to continue providing the service and had practically eliminated dog fighting within the City. Vice Mayor Ross pointed out many letters, emails and phone calls had been received in reaction to the reduction in staff. There are many pet lovers in the City of Boynton Beach and Animal Control is a valuable service provided at no charge to the citizens. Mayor Rodriguez wanted the division and budget to be revisited. The fact no other cities provided the service was an indication it was being done more efficiently elsewhere. Vice Mayor Ross reiterated there was strong support for animals and their welfare and the City had enacted a stronger leash and tether law. Mr. Blasie recognized with continuing budget cuts expected, the division could be one person, absorbed into the Police budget to assist with the criminal court cases. Mayor Rodriguez wanted further information on the cost of the service as opposed to a full animal control division. The facility had expenses and there may be an opportunity to sell the property involved. In the Code Compliance Division, the 6% cut was exceeded with the loss of one administrative staff member that had not been replaced. He harkened back to last year when the issue of quality of life was addressed and the overall appearance of the City to attract new residents and businesses. Presently the industrial zones are neglected with an emphasis on residential and commercial 24 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 enforcement. Mr. Blasie emphasized there had been revenue from the foreclosure ordinance of approximately $100,000 going into the General Fund. Fines collected through the Code Compliance Board are General Fund dollars. Collection of Fire Department uncollected fire inspection fees, sale of alarm decals and collection of false alarm fines are revenue streams. The funding for one staff was split 50% to offset the additional work. The false alarm fines should total approximately $45,000 this year and fire inspection fees should contribute another $45,000, including decal sales for approximately $100,000 a year. Mr. Blasie stressed Code Compliance staff was on the low side for similar size communities. Mayor Rodriguez attempted to balance the need for a Record Clerk that could be substituted with a volunteer versus a Code Compliance Officer to keep the City clean and safe. Commissioner Holzman commended Mr. Blasie and his Department and agreed with Mayor Rodriguez's assessment. Mr. Bressner speculated there was a possibility for consolidation of central services that would include Code Compliance, Engineering, Building and Business Tax Receipts in one division. It is an organizational change that would encompass cross training and multi-disciplinary inspections in the next fiscal year budget. Mr. Blasie contended it was critical that the Code Compliance Officers have letterhead and a badge that symbolizes authority and enforcement. The respect and response from the community has been significant. Mr. Livergood cautioned the full impact of the consolidation had not been fully investigated in conjunction with skill sets and existing bargaining agreements. The ramifications are many. The meeting recessed at 3:23 p.m. The meeting reconvened at 3:34 p.m. Fire Department Chief Bingham reviewed the goals and objectives of Fire Rescue. The proposed budget is $19,087,687 which includes all the percentage cuts and a recommended budget for 2010/11 of $18,718,591. The proposal includes 150 full time employees down from 152.5. Code Compliance does collection for the Safety Division and there was an agreement to share half of the salary for the position that generates the funds for the Fire Rescue Department for a total of 153 full time employees. There will be a reduction of three firefighters through attrition and no layoffs would be necessary. Fire hydrant testing would be eliminated which could affect the ISO rating, currently at IS02, a valuation of the water supply, fire department and communication system. The evaluation is done every ten years unless 25 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 requested. By not requesting another ISO evaluation now that Station #5 is completed with additional training facilities, there would be a savings of $55,000. Many of the proposed cuts can only be sustained on a temporary basis or severe problems meeting regulations and standards may be compromised. The replacement of firefighting gear will be altered that has been in compliance with the National Fire Protection Association as well as OSHA and constitutes a $25,000 reduction. The current level was acceptable and could be sustained for another year. Station #1 operates with only four people rather than six and uses a task force concept with two people on each truck running in tandem. With the reduction of three firefighters, there will be a further reduction to three people on each shift and the rescue unit will be pulled out of service. The fire engine has the capability of providing life support medical care as well as fire suppression. Only transport capability will be eliminated. The reduction will increase the response times in the downtown area and the southern most part of the northeast quadrant and the northern most part of the southeast quadrant of the City. Commissioner Orlove inquired if Stations #2 and #3 would respond to calls to the downtown area. Chief Bingham agreed they could and stressed each station handles 2,500 to 3,000 calls a year and a unit is out of the station 7 'Y2 hours to 11 hours every day on average. Commissioner Holzman suggested a roving unit be utilized so there would not be a consistent lack of coverage in anyone area. Chief Bingham replied there was constant monitoring and if units became engaged for a lengthy period of time, another unit is reassigned to cover the area. The concern was the impact at the initial call. There is also the contractual obligation with Ocean Ridge and Briny Breezes to provide services which was based on having Station #1 and Station #4 at the north and south bridges. Mayor Rodriguez clarified there were 129 shift personnel and 150 total staff. He inquired if administration could be reduced rather than firefighters. Chief Bingham replied all personnel rely on the support provided by administration including training for 126 firefighters using one trainer and one individual in charge of emergency medical services that handles over 8,000 calls a year. Commissioner Hay contended the Commission should accept the fact each Department Head had reviewed their budget, as well as the City Manager, and listen to their recommendation and move on, rather than dissecting every item. Chief Bingham noted the overtime budget would be reduced by $190,000 which would be tolerable. He stressed the Department was not staffed heavy. Commissioner Holzman referred back to the attrition of one position and inquired 26 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 if there was any attrition anticipated in administration. Mr. Bressner interjected there was a proposed consolidation of the Public Information Officer and Emergency Services position. There is some reorganization ongoing. Chief Bingham added it would give the individual an entire new set of duties and would create the first dedicated Emergency Manager for the City for a savings of $8,000. Mayor Rodriguez addressed the continuing question of why the City has three public relations personnel. Chief Bingham explained the consolidated position would include a downgraded version of the Public Information Officer rolled into the Emergency Manager position. Chief Bingham continued that fleet replacement had been delayed for a year. His primary concern was the loss of three firefighter positions and the safety factor for the citizens and employees. Revenue would be generated through contracts with other municipalities for a total of $1.56 million from the Village of Golf, Hypoluxo, Ocean Ridge and Briny Breezes. There would also be emergency medical services which would generate $1 million and fire safety inspections would generate about $450,000. With the Fire Assessment of $3.7 million, the Department would generate $6.69 million in revenue this year. Grants were awarded through Firehouse Subs and the Department of Health, Emergency Medical Services. An overview of the number of sworn personnel over the past several years was reviewed. With five stations instead of three, there is an increase from 117 to 150 sworn personnel. The calls have a plateau of 11,600 calls; however, this year was on track to exceed 12,000 calls. In regards to overtime there is a budgeted amount for overtime and then the overtime actually spent has recognized the serious storms that have hit the City. Much of the money spent for storm related incidents have been replaced by FEMA. Many unfunded mandates comprise a significant amount of the budget. Commissioner Hay inquired if there was any reduction due to attrition. Chief Bingham replied there was very little turnover because the City was not seen as a training ground. The department maintained a full staff with only one vacancy that reduced the need for overtime. Mayor Rodriguez inquired if the administration and finance officer duties could be handled through the Finance Department. Chief Bingham replied the individual tracks personnel time and issues, plus budget tracking. The shift schedule is very complex and is Fire Department specific. Mr. Bressner added the large departments all have similar positions. The EMS Specialist position has been able to collect more money then a company that was brought in to do the same type of billing. The cell phone allowance of $7,000 was questioned. Chief Bingham responded there were ten phones in use for about $50 per month. The 27 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 incentive pay was a result of a Florida statute that indicates anyone with an associate degree gets a stipend from the State and the collective bargaining agreement parallels the State's for $110 per month for an education incentive. More individuals were coming on board with degrees. There is a tuition reimbursement policy for all employees. Mayor Rodriguez questioned the $10,000 for business meetings. Chief Bingham advised it was essential to stay abreast of current trends and practices within the profession. The Mayor suggested all the car allowances, cell phones, and business meetings may not be necessities. Also, $20,000 for memberships and books seemed excessive. Chief Bingham advised most of the training was done in house rather than travel. Commissioner Hay determined the Fire Department had met their 6% reduction goal. Mayor Rodriguez thought more savings could be found to at least bring one of the three firefighters back. Emerqency Manaqement Chief Bingham noted the 6% reduction was met going from approximately $113,000 to $106,000. There are no personnel expenses, business meetings, phones, office supplies, radio batteries or training. There is a capital account and telephone services, plus funding for the CERT teams of $5,000. There would be no new classes, rather concentrate on more hands-on training for the 200 trained volunteers. Police Department Continued Mayor Rodriguez questioned the need for an administrative assistant, administrative secretary and administrative associate. Chief Immler replied they all fulfill some sort of unit function. They are a higher level than a clerk and perform mandated duties that would require replacement with a sworn police officer and could not use a volunteer. Mayor Rodriguez inquired about the need for a separate IT (Information Technology) Department. Mr. Bressner reported consolidation of the Police IT and regular IT Department was being considered. The Criminal Justice information system is totally separate for security reasons and has to be maintained separately. Other common resources could be shared. The ITS Director had taken advantage of the Early Out program and her position will be vacant for a savings of approximately $120,000. Mr. Bressner advised 12 employees had signed up for the program and several were positions that were being phased out anyway. The Early Out program also had some savings with a senior Police Officer leaving and replaced by a junior Officer at a lesser salary for $23,000 savings. There will be a total savings of salaries of about $127,000. The Community Improvement division also has an employee leaving, a construction coordinator, whose position will be eliminated. The inspections can be done in another way saving $59,000. The total savings is about $200,000. 28 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 Chief Immler informed the Commission the Police Department IT does not work on desk computers. They focus on the lights in the cars, surveillance equipment, in-car cameras and personal communication equipment that officers carry and the entire radio system dispatch. There are ongoing negotiations between the Police Department and ITS to transition and reclassify the Police Department IT individual. The net savings is one less person and efficiencies by coordinating the operations. The law enforcement segregation has to be maintained. The uniform cleaning was part of the collective bargaining. The only City-owned cell phones are for the Chief and the two Majors. All others get a cell phone allowance except the specialty phones that have unique capabilities. The $45,000 includes the air cards in all the computers plus the cellular connects. Mr. Bressner commended the Department for reducing the costs by going to phone allowances. The transition was made a year ago saving considerable money. Mayor Rodriguez inquired about the confidential fund of $25,000. Chief Immler advised the monies were used to pay the snitches. The canine costs are low because the food is bought through the Sheriff's office for a discount. He further explained the $4,000 in communication was to replace the chairs in Communication. They are special purpose chairs and cost $1,000 each. Mr. Greene reported in 2007/08 there were 58 positions that have now been reduced for 2010/11 to 41 positions reflecting a 305 reduction in staff. The budget has decreased from $4.3 million to $3.2 million for the same time period. Three staff members had been laid off to meet the 6% target and actually reduced the budget by 7.7%. Another individual took the early out program. The cuts had to be made this fiscal year and coincided with the early out program. Some positions have been lost through attrition that will not be filled. Mr. Greene reported at this time, there is not a fully functioning building official. We have an acting building official that reflects the staff level at this time. Mayor Rodriguez asked for the total headcount. Mr. Greene responded there are 36 positions in the General Fund and with grant funding Community Development brings the total to 41 positions. The personnel reduction includes the increase in pension cost and health care cost. Mr. Bressner explained there is a Building Division, Occupational License Division, Planning and Zoning Division. The overall Department had a decrease of 7.7% while some divisions increased. Commissioner Holzman asked if there was any overlap of responsibilities in the various divisions. Mr. Bressner reported the Building, Operational Licenses, Community Improvement, Engineering and Code Compliance have been considered for the inspectional services and could be viewed as an overview to provide multi-disciplinary inspections. There may be additional savings during the next fiscal year. In regard to the Building Official there is a licensed professional engineer on staff who is capable of obtaining the 29 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 building official certification. Code Compliance has some concern about spinning off of a non-police node. Mr. Greene noted administration was actually 2.5% over but Building is 8% below, Planning and Zoning is 9.2% below and Business Tax is 16% below. Commissioner Holzman inquired if, based on the downturn in development, the Department was running at bare bones. Mr. Greene advised they were and the number indicates the development trend has bottomed out and an increase in activity has been seen. Additional information on the permitting levels would be provided. Mayor Rodriguez wanted a definition of a division vehicle. Mr. Greene defined it as a vehicle used by Community Improvement or Business Tax. All others are on car allowances. The inspectors use their personal vehicles. Mayor Rodriguez commended Mr. Greene for doing this. He wanted to see other divisions eliminate the car allowances and cars and more carefully examine the number of cars and who uses the vehicles. Mr. Bressner indicated the criteria varies between departments based on the responsibility. Last year the car allowances were cut 30% across the board. Many vehicles were eliminated particularly in the Utilities Department. Mayor Rodriguez reiterated his concern that a criteria for having a car or car allowance should be established. It should not be an arbitrary decision. Mr. Livergood added in administering the fleet, it is recognized there are vehicles needed for day-to-day operation. There are also employees who come to work and take a City vehicle to do inspections. Other employees use their own cars. The concentration is placed on the time the City vehicle is used versus paying a mileage rate. There are also contractual obligations for department heads and police officers. It is evaluated on a request basis. Mayor Rodriguez, Commissioners Holzman and Orlove agreed a policy should be established. Mr. Bressner advised there is an evaluated process to determine the need. Commissioner Holzman had noticed the memberships had increased. Ms. Byrne responded organization development had picked up membership fees from the sustainability team. Mr. Greene summarized that 93% of budget is personnel costs and 7% relates to operations. Mr. Bressner offered to show trends in the expenses for cell phones, membership, car allowances, business meetings and training. Mr. Greene interjected many memberships are required to maintain certifications. The logistics to be followed the next day were discussed. The meeting adjourned at 5 p.m. 30 Meeting Minutes Special City Commission Budget Workshop Boynton Beach, FL July 19, 2010 ATTEST: CITY OF BOYNTON BEACH / ,/-pd-L Marlene Ross, Commissioner 31