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Minutes 07-23-13MINUTES OF THE SPECIAL CITY COMMISSION MEETING, HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, AT 2:00 P.M., ON JULY 23, 2013 PRESENT: Jerry Taylor, Mayor Woodrow L. Hay, Vice Mayor David T. Merker, Commissioner Michael M. Fitzpatrick, Commissioner Joseph Casello, Commissioner CALL TO ORDER Mayor Taylor called the meeting to order at 10 a.m. Roll was called. Commissioner Fitzpatrick was not present. Ms. LaVerriere congratulated the Commission and staff on the progress that was made on the budget. A large portion of the budget was covered and the review of the General Fund completed. The areas to be addressed were the Capital Plan, Utility Fund presented by Mr. Boateng and more of the special funds. At the conclusion of the presentations, decisions would have to be made on the preliminary rate resolution on the fire assessment and a tentative millage rate. It is a tentative rate until the public hearings are held on September 3rd and 17 for adoption of the final millage rate and the budget. Changes can be made to the budget until the final adoption on September 17 The millage rate can be reduced after the tentative millage rate is set. It would be difficult to increase the tentative millage rate and would require a mailing to every resident of the City. (Commissioner Fitzpatrick arrived at 10:03 a.m.) CAPITAL IMPROVEMENT PLAN (CIP) Lori LaVerriere, City Manager James Cherof, City Attorney Janet Prainito, City Clerk Jeff Livergood, Director of Public Works and Engineering, explained the CIP was used by staff to plan for improvements and maintenance functions. This year's plan is heavily devoted to maintenance and was prepared by a team of staff members that represent every department. It is a process to balance the needs of the community compared to revenue and funding available. The five -year CIP is an important planning tool for presentation to the public to communicate the future objectives of City. This year's plan is one of the most modest plans and includes very few new endeavors. The Utilities' capital plan is heavy with new construction projects. 1 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Many of the projects are small, such as $50,000 for American with Disability Act upgrades or general air conditioning repairs for $50,000. Improvements over the course of the next five years are outlined for Recreation and Parks facilities. At this time, the items are prioritized; however, the completion dates may change and new problems can arise. The team meets monthly to review and plan new and old projects into the future. At times repairs are planned for different locations to get the benefit of economy of scale by having a larger project. One of the most significant projects is the Barrier Free Park playground. A portion is grant funded. Other projects are listed to recognize the need for the work to be done in the future. The difference from a capital and operating budget is the deviation from year -to -year in the projects rather than attempt to budget it as a capital line item in the operating budget that has peaks and bounds from year -to -year. The capital budget illustrates the needs, recognizing that some years are higher than others. There is an item to replace the doors and windows at Oyer Park for $9,000. There is $5,000 for the Civic Center flooring and furnishings. A project that is done every year is the Hester Center floor refinishing for the gym Mayor Taylor asked how big the gym office was in Hester Center that required $5,000 of carpeting Mr Livergood recalled it was quite large and has multiple people Mr. Livergood added a better quality of carpet was being bought so it could last longer. Lower quality carpet is put in rooms that are not as critical. Commissioner Merker inquired how the plans were affected both financially and thought -wise when there is an economic downturn or recession. Mr Livergood indicated it was an agonizing process. The Mangrove Park boardwalk around the pond area has some issues with the substructure. The money is for an engineer to examine the structure and then plan for necessary improvements sooner than anticipated. This year, the retention pond was reduced in size to eliminate future maintenance. There are maintenance projects that have to be done sooner rather than later to preserve the facilities. The Intracoastal Park pavilions have to be painted. Commissioner Casello asked if the painting and ceiling work was contracted and Mr. Livergood confirmed it was contractual. Some interior painting and trim work can be done by staff. Some projects may be more cost effective to do in -house than the hassle of bidding. It depends on the availability of staff and with a contractor there is a guarantee. Miscellaneous small park projects is budgeted at $2,300 so small emergency repairs can be done There is $10,000 budgeted for tables, garbage cans and benches for 2 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 replacement and use staff to maintain them for a longer life cycle. The tennis court resurfacing is done annually. It varies which courts are done to keep them all maintained regularly. Oceanfront Park parking lot lights are failing due to corrosion and other projects that had been targeted for this year, cannot always be done due to lack of funding and capable staffing. There is only one project manager. Commissioner Fitzpatrick observed the small miscellaneous line item had increased from $20,000 to $25,000 and he wondered why it was increased. Mr. Livergood was not sure of the detail. Ms. LaVerriere recalled the budget was at $45,000 and it was cut back to $20,000. There are already modifications for next year that will have to be adjusted. The funding was limited. Mr Livergood pointed out in 2015/16 there were several parking lot projects that were consolidated to get better prices. Mayor Taylor assumed the figures were guesstimates and the actual cost could be less. Mr. Livergood felt they would be within 15% of the actual costs. Because the money was budgeted was not a license to spend the entire amount Any monies not spent stay in the capital fund and rolls over for the next year. The staff is great stewards of public dollars and enjoys searching for cost - effective ways to do the projects The totals showed that the future budgets get quite large in some areas. Public safety type projects include the Communications move to Station #5. The radio system is budgeted in 2016/17 but may be part of the bonding for the new facility. The budgeted amount in the capital budget is an estimate Some of the fire station maintenance and upgrades, fire protection systems is a line item for some of the stations. Some of the amenities in fire stations are critical. A new classification is ITS projects that are very costly. It allows the staff to look at the location of some of the projects and marry them with other projects ongoing at the same location. It becomes a good check and balance for many projects. The cost is high on some projects because it reflects changes to enterprise systems. Vice Mayor Hay wanted to discuss the WiFi system. He recalled there was discussion on sharing the $100,000 expense for WiFi and it would be an asset for the City. Perhaps others could be involved in the project to reduce the expense to the City. The budget shows three phases over three years for $300,000. He suggested the City spend $40,000 and attempt to partner with private business. The CRA could not contribute. Ms. LaVerriere added it was not appropriate for CRA funding. She explained the County had offered to pay $100,000 for Phase 1, would the City pay them back over three years. Ms LaVerriere stressed the focus should be on FY 2013/14 because the projections are more of a wish list that will be downsized She did feel the $100,000 for Phase II and Phase III for WiFi at Galaxy Elementary would probably not be possible If the 3 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Commission wants to consider partnering with the County, she would talk with the County and fund $35,000 for the next three years. Mayor Taylor did not feel the City should get involved in it. If the school wants to do it, the School District should do it. The County will get their money returned so they are not partnering with the City and it would only give computers to children on the food program. The kids who are paying will not get computers and it would not be appropriate that only a few benefit. He speculated there may be other costs the City is not aware of that would have to be paid annually. Commissioner Casello remembered the CRA had discussed the costs and there is a maintenance fee of $6,300 a year. Comcast had presented a program for $9.99 a month a student would get a computer and free WiFi from the day they entered school until the day they graduated from high school The decision was made through the CRA members Mayor Taylor noted there was computer access at the Library. Vice Mayor Hay sought data on the number of reduced lunches at Galaxy. Ms. LaVerriere replied it was 202 students or approximately 20 %. As part of previous discussion, there are other outstanding topics that were deferred to the workshops to talk about in capital. Another topic was a dog park and a developer has agreed to use a three -acre park site to fence a portion for a dog park. It would be minimal with fencing and water stations without other amenities. Perhaps $10,000 in capital should be earmarked for the dog park, if desired, to install benches and shade elements or wash stations. Another project was video recording of Commission meetings and there were some estimates on cost. The basic system would be $10,000 to $12,000 a year It would be funded in the operating budget and not capital. Vice Mayor Hay thought it would be a good move. The future of the entire building is questionable so a big investment in video recording would be unwise. Ms. LaVerriere agreed to put the funding in the operating budget of the ITS Department. The grant staff had worked to partner with Galaxy for the installation of three wind turbines on the site. They will face 1 -95 and produce energy to feed into the electric grid for the School. It is a strong green effort and a positive economic development identity for the City to have the turbines. The cost is $70,000 to $80,000 for two. The School District planned three with the funding to be raised in a capital campaign. The money was found for only one turbine. She asked if the Commission would want to fund one turbine for about $40,000 and then launch a capital campaign with the local business community, School District and City to get the third turbine. Mayor Taylor addressed each project for consensus from the Commission On the dog park, Commissioner Casello felt it was an opportunity to partner with a developer. He had contacted the larger pet stores to provide some type of sponsorship to help with the 4 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 yearly maintenance. Vice Mayor Hay approved and Commissioner Fitzpatrick agreed. Commissioner Merker wanted to see the layout for the park before allocating the funds. Mayor Taylor stressed it would not be as elaborate as some parks. There will be water stations and shade for the people and it will be fenced. It is a start for $10,000 and he supported the concept. Mayor Taylor declared there was consensus The Commission would see the plans before any dollars were spent. The recording of Commission meetings was discussed. Vice Mayor Hay wanted to use the same arrangement currently used by the CRA. Commissioner Casello agreed with Vice Mayor Hay because the future of the building is cloudy. It was known that Commissioner Merker wanted the meetings fully televised. Mayor Taylor would agree to that in the future, but the $10,000 would be a good first step. Commissioner Merker hoped there would be a new City Hall and the equipment and programming could be done to inform the public and businesses. It would be the best advertisement for the City. He concurred Ms. LaVerriere advised $10,000 would be added to the operating budget of the ITS department and not from capital. Commissioner Fitzpatrick supported the project. He did not feel there would be a great percentage of people watching the programming. People who do watch will be those interested in the City of Boynton Beach and are good for a lot of votes. It would be a positive move. Mayor Taylor declared there was consensus for $10,000 Commissioner Merker requested the costs be outlined. Mr. McNally quoted prices of the basic system for $10,000, intermediate with more cameras and video switching equipment and up to the advanced system with more of a fixed structure would be around $100,000. Mayor Taylor addressed the wind turbine expense of $40,000. The School Board would pay for one. The City Manager suggested the City pay for one at $40,000 and see if the business community would support buying a third turbine. Commissioner Casello felt it was a great effort to show Boynton was going in the green direction. It would also be a marketing tool with visibility from 1 -95. Commissioner Merker questioned if the business community should be consulted first or buy one turbine first. He was being hesitant and cautious of spending money. He fully supported the idea, but thought the business community's support should be obtained first. Mayor Taylor explained the turbines would give energy to the school and for irrigating the City's park next to the school. The third turbine would be left to the business community. Ms. LaVerriere interjected any energy from a turbine would be a gain. If two turbines are there the hope was the business community would be more supportive to add one more. Vice Mayor Hay whole - heartedly agreed and felt it was a wonderful way to assist in the branding of the City. Galaxy Elementary was a unique school and the City should do what it can to further that perception. 5 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Commissioner Fitzpatrick was in favor of increasing sustainability. He did support it, but cautioned there is an issue with the turbines in relation to bird kill. Ms. LaVerriere offered it was not the type of design that would kill birds. The older models were problematic. Ms. LeJeune assured the Commission the design was bird - friendly Grants were not available because wildlife and fisheries would not endorse the use of turbines. These are vast improvements. Ms LaVerriere mentioned they would serve as a public art feature as well. Mayor Taylor declared there was consensus to move forward with one turbine. The next issue was WiFi and Mayor Taylor did not feel it was warranted. Commissioner Merker concurred with the Mayor. Another subject for review was initiated by Commissioner Fitzpatrick dealing with the acquisition of open space to assemble for conservation or future parks. It was discussed during the strategic planning. Commissioner Fitzpatrick located a piece of property extending to the north side of the canal at the end of Lake Ida. Because it was not economically feasible, the County did not develop the north side of the canal for recreation. The County then decided to sell the property It is four acres of lake front park land which is extremely scarce. Commissioner Fitzpatrick felt the City should maintain it and keep it. The matter had been discussed with Delray and they seemed willing to assist. It would be a positive project with the City's neighbor to the south and establish good working rapport. If it became developed, a walkway bridge could be constructed across the canal where there is a complete dog park that would be more accessible to Boynton residents. There is also the possibility of installing a boat ramp to have access to Lake Ida and be a node for creating a bikeway /greenway /walkway. The concept had previously been addressed in 2006 in a greenway /bikeway report issued by the City of Boynton Beach that included the path outlined. Over the long run the lot would pay for itself. There are vacant lots that could be built on and the realtors would use it for a sales pitch Increasing property values would pay off in the long run. The proposed funding source was the fire assessment; however, it was not clear if that was possible. Attorney Cherof explained the fire assessment funds collected from the public are earmarked for fire improvements and improved services. Unless the purchase advances improvements or services, the funds cannot be used. Commissioner Fitzpatrick understood the fire assessment could be raised to $194 per resident according to the Statute. Mr. Howard agreed. There was also $4 million transferred from Solid Waste to the General Fund for other things. He felt the funding could be adjusted if the motivation was there. Commissioner Fitzpatrick wanted to use fire assessment monies because it was initiated to build fire stations and buying the 6 Meeting Minutes Special City Commission Boynton Beach, FL July 23, 2013 land. The land was bought for Fire Stations #4 and #5 and the City paid a significant amount of money. Fire Station #2 was not purchased land, rather it was taken from City inventory. The property was park land and it should be replaced. Attorney Cherof replied the documentation was not found as yet verifying the dedication was associated with parks. It does appear it was. The deeds and conveyances were not restrictive for any purpose whether fire stations or parks. There is a Quit Claim deed that the developer provided to the City and there is language on the plat documents for the dedication as well. Commissioner Fitzpatrick had documentation that the land was for general public use purposes and the perpetual maintenance agreement for the City of Boynton Beach. The Plat book indicated is Plat Book 50, pages 3 -5. Fire Station #2 is located on tract 13 There is a note for tract 13, ". . . is hereby dedicated to the City of Boynton Beach, Palm Beach County Florida for the perpetual use of the public for recreational purposes " It appears ten years ago it was recreational purposes and then it was changed to general. It was taken from Recreation and Parks. Attorney Cherof did not necessarily agree with the statement. Recreation and Parks does not own property. There is land that the City has designated for park purposes. It would be problematic to attempt to charge back the fire assessment fund for that purpose. Attorney Cherof cautioned there had already been one lawsuit about the fire assessment and the Commission would not want a second. Commissioner Fitzpatrick reiterated the City could charge two and a half times the current rate and it would still be legal. Attorney Cherof acknowledged that was true and a better approach than the suggestion to pay back the fire assessment for the Fire Station #2 property The more funds raised could be used to buy equipment and salaries currently paid by the General Fund and that fund would have monies free, if the Commission desired, to acquire park land If the fire assessment is charged back, it would invite a challenge. Commissioner Fitzpatrick disclosed the County wanted to sell the property because they would not develop it. He requested plan A would be to lobby the County to keep it with the promise we will put in $300,000 of improvements so it takes away the reason for selling it. Secondly, Delray may come on board to assist with the plan. When a vehicle is sent to fleet maintenance, a charge is assessed to the Fire Department and if supplies are gotten from the warehouse, the Fire Department is charged. In his view, the Fire Department got three acres from Recreation and Parks and there is no reciprocity. Commissioner Fitzpatrick thought there was a moral obligation to pay back Recreation and Parks. Saving four acres of lake front property would be a good way to proceed Vice Mayor Hay supported green space, but access appeared to be unusual. The walkway would be across the canal. Commissioner Fitzpatrick did not feel access was Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 an issue. Property cannot be landlocked so the owners in between would have to provide access. The building has been vacant since 9/11 and for sale There are 23 acres up for sale. The County is talking to a developer to sell those four acres and the developer is potentially buying the vacant 23 acres. There will be a road from south of Chapel Hill. Vice Mayor Hay contended tripling the fire assessment fee would not be warranted for park land. Commissioner Fitzpatrick clarified that was not his intent, rather an increase of a couple dollars. Attorney Cherof restated the fire assessment monies could be used to purchase equipment and fire services that would normally be expended from the General Fund and use those monies saved in the General Fund to purchase the land and improve it. Commissioner Casello inquired if the purchase of green space would be an allowable expenditure from fire assessment funds. Attorney Cherof replied it would not. Commissioner Merker was confused. In his opinion, the moral obligation was the cost to the citizens. He was neither for nor against the idea. The proposed budget is for the immediate year. He questioned if the idea was realistic for the City to buy the property within the confines of the proposed budget. Mayor Taylor asked if the land was actually in Delray or Boynton or both. Mr. Livergood advised it was an unincorporated pocket. It is not in Boynton Beach. Mayor Taylor questioned if the Lake Worth Drainage District (LWDD) would give permission to put anything across or over the canal. Mr. Livergood speculated the LWDD would probably approve depending on the type of structure. A vehicular bridge would be more costly versus a pedestrian bridge Ms. LaVerriere added the County wanted $300,000 plus for the property. It was appraised at $450,000 and $480,000. The County was considering an RFP to sell. They deemed park development was too costly for the size of the parcel. They would sell it to the City as an intergovernmental transaction. Mayor Taylor pointed out there was access through a heavily residential area that would have to be notified and may object to the idea. Also, the money was not available. Vice Mayor Hay questioned if the land were purchased, would the boundary lines for the City of Boynton Beach change. Attorney Cherof advised it would be best to annex the property. Mayor Taylor indicated if there was development on the site, it could raise the tax base for the City. Commissioner Fitzpatrick agreed there could be a concentration of homes, but having a park and access to the dog park and Caloosa Park would raise the value of the homes in the Chapel Hill area. It would offset the concentrated value of tax revenue for a couple houses and the overall quality of life. Commissioner Fitzpatrick was 8 Meeting Minutes Special City Commission Boynton Beach, FL July 23, 2013 disappointed that Commissioner Merker did not support his plan. Commissioner Merker emphatically stated he did not believe there was money to buy the property and the costs were not specifically outlined. Commissioner Casello conceded it was a valuable piece of property no matter how it was used, especially with the adjacent 23 acres that are vacant. The funding was a problem Vice Mayor Hay recalled at the last Waste Water Management meeting, it was announced the City would be receiving almost $1 million that would go into the Utility Fund It would be available and he inquired if the money could be transferred to purchase the property that could benefit the City of Boynton Beach in the future. The expenditures for the construction and operation of the reclamation plant were Utility Fund dollars and any refund would have to go back into the Utility Fund revenues for capital renew and replacement with a portion into operating. There is an annual refund that is ultimately appropriated to a project. Mayor Taylor thought the money was from a different source than the annual refund. Mr. Boateng explained the Solid Waste Board sold a portion of its shares in the Solid Waste Authority to the South Central Regional Waste Water Treatment and Disposal Board. It was about $2 million that was split between the two cities. It has to go back to the Utility Fund and by law it cannot be transferred to the General Fund. Commissioner Fitzpatrick appreciated the suggestion and he would not support the monies not going back to utilities that has very large obligations. It would set a bad fiscal precedent. He reiterated his view that the fire assessment monies should be used because it was originally park land and the Fire Department benefited with a new Fire Station on the site. It seemed like a justifiable reason. He understood the position of the City Attorney, but argued the taxes should not be raised, rather the Fire Assessment increased to pay for costs now being paid out of the General Fund. Mayor Taylor opposed raising the Fire Assessment. It needs to be transparent how the monies are spent. The millage would have to be raised another 10% to garner $300,000 or 7.9 mills. The public would need to know the taxes were being raised to buy land. Commissioner Fitzpatrick inquired how the City paid for the land for Fire Station #2 originally if not tax dollars. Mayor Taylor recalled a comment the land was given to the City and not purchased. Commissioner Merker was in favor of Commissioner Fitzpatrick's plan without raising millage. It was a good idea and again he looked at reserves and investments He was cautious, but pragmatic that a legal battle was not wanted either. If it is an appropriate purchase, then raising the millage may be necessary. It needs more discussion. 9 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Mayor Taylor proposed Delray be approached with the idea of splitting the cost of the land. Commissioner Fitzpatrick had talked with a Delray official several years ago about purchasing the property north of the canal and he was vehement that no money be spent north of the canal, outside of the City limits. He did not think it was probable that Delray would support the venture. Commissioner Fitzpatrick moved to set the millage rate at 7.9 as the upper limit. Then the options could be explored and discussions with the County to make payments over time in exchange for assistance in maintaining the area. Mayor Taylor agreed it could be discussed when setting the millage rate. Commissioner Merker contended the issue should be a bi- partisan agreement with Delray. Mayor Taylor explained Delray does not own the land and City of Boynton would have to annex the land into its border Mr. Livergood continued and reviewed the program for transportation. There is $215,000 set aside for road improvements and that will be increasing over the years to $600,000. It would cover the microsurfacing If it is not done the City would fall farther behind and in about 15 years there would be significant roadway maintenance that could not be ignored. Approximately $45,000 is budgeted each year for FEC rail crossing upgrades. It is not part of the All Aboard Florida initiative. Information was recently received from FEC that the cost of upgrades would be $115,000. The street maintenance would have to be decreased to accommodate the additional crossing repairs that are mandatory based on 1940 agreements. Mr Livergood continued the fund balance equals the appropriations so there could be a rollover balance that is positive. To balance the 2013/14 capital program budget, \ $987,000 has been taken from the CIP Fund balance. All the funds in the capital improvement program are being depleted. For the year 2014/15, $2.449 million has been proposed and the funding will have to be obtained from a transfer from the General Fund of $1 8 million for general maintenance of the City. Ms. LaVerriere stressed that some items will be removed or delayed and others added. It will not be $1 7 million this year. The capital requests will have to be reviewed. Mr. Howard interjected that based on some of the discussion, the outer years will have to be reassessed. Ms LaVerriere projected there are software programs and electronic permitting that needs to be added. The projects and funding have to be balanced on an ongoing basis. There will be some form of fund balance this year that will carry forward. Many projects will have to be pulled. It is a result of depleting the capital fund balance of over $4 million that was used to balance the budget over the last several years 1 0 Meeting Minutes Special City Commission Boynton Beach, FL. The projects for 2013/14 were listed and most were maintenance related. The Galaxy project involved the scrub area that was donated to the City, north of City's new park, which would be partially funded by grants. The greenway, bikeways and paths would connect down into Galaxy The scrub would be refurbished as a learning opportunity for the students in partnership with the school on the vegetation and plantings. It would become a passive scrub area. The Intracoastal Clubhouse painting and Boynton Lakes Park pathway improvements were general maintenance. Commissioner Casello expressed concern with the upstairs carpet in the Intracoastal Clubhouse. Mr. Livergood advised it was budgeted under facilities upkeep with other carpeting projects. There are doors and light fixtures that are rusting too. UTILITY OPERATING 11 July 23, 2013 Kofi Boateng, Utilities Director, related the Utilities budget was $39 million and increased by 6.6% over last year. The increase is due to the changes in the utility operating expenses, debt service and personnel services. Changes in the industry dictate how the budget is created. There has been tremendous growth in the water and wastewater system as a result of the laws passed in the early 1970s It is now a collaborative effort with the Environmental Protection Agency (EPA) to apply the laws rigidly and the monitoring of low interest State loans. However, over the last few years, with the trends in sustainable options such as water conservation, water reuse and environmental concerns, the growth is decreasing as well as the revenues Priorities are being realigned for most utility providers. There is now more focus on maintaining the existing assets. The capital programs are being better managed and the monies needed for the improvements. The cost of operations is being closely monitored including the cost of chemicals, electricity and equipment and labor. Other new concerns involve security and information technology in conjunction with new regulations. The Department has to grow to conform and have more and better skilled employees to be able to meet all the new initiatives. Administration is one of the cost centers and it is composed of several areas. One is costs reserved for future operations which is $788,000. There are other non- operating components of the costs of $45,000 used for water conservation. There is $400,000 for uncollectible accounts which is a symptom of the economy There is an increase of $412,000 to accommodate work done now to avoid future expenses. An expense of $140,000 has been budgeted to do a condition assessment and fix some of the repairs needed at the parks that the City is responsible to maintain. About 80% of the storm water system in and around Mangrove Park is underwater. The water will have to be drained and send divers to examine the condition and do any immediate fixes to avoid any catastrophic failure in the system. Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Equipment purchases in the sewer collection division are $50,000. Another $500,000 is going to be spent to mitigate other conditions in some low areas where there are lift stations. The debt service increased to $524,000 that was issued years ago to cover some capital projects. The principal is about $600,000 at this time. The existing debt has been refinanced to save $100,000 on the interest. Most of the increase in the budget was related to health and pension costs for the employees of $267,000 across the entire operations. There were also two positions requested for the stormwater division that is incurring more responsibilities based on new regulations. The State government is asking the cities to assume more responsibility for maintaining the environment. Headcount has reduced by about 26 employees over the years, but now replacements have to be found to handle the new regulatory issues. The total operating expenses are $1.5 million. There are also transfers to the General Fund of $5 million, $4.4 million for bond coverage and Fleet for vehicle maintenance and replacement. The bond coverage is supposed to be maintained at 110% of the net operating expenses. There are several divisions within Utilities. There is a water distribution division that is responsible for maintaining the system, being the pipes and even fire hydrants. The public water treatment division is responsible for the two treatment plants, the East Water Treatment Plant and the West Water Treatment Plant, and treating the water for consumption. The meter reading division reads the meters. The waste water collection is responsible for the underground waste water pipelines that collect all the waste for treatment by the Sewer Board. There is a waste water pumping station that works with 159 lift stations dispersed in the service area. The sewage treatment is the Sewer Board and that portion of the budget is covered by that entity. Utilities administration is a cost center that was previously discussed. There is an engineering group that is responsible for all capital improvement projects. The storm water group includes the maintenance and there is a customer relations group. Commissioner Merker knew the Department had guidelines from the federal government down to the City. The role of the City to preserve and save money for the people was not apparent to him. Everything seemed dictated. Mr Boateng explained the Utilities Department was not covered by the ad valorem taxes All the revenue is derived from user charges to the customers. Because it is an enterprise fund, guidelines had been established in terms of how the money is expensed. It is also heavily regulated by the federal, state and local government. It is not uncommon for a Utilities Director to go to jail because the guidelines were not followed. 12 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Commissioner Casello narrowed down the uncollectible expenses and asked if they were residents who did not pay their bill and was it consistently $300,000. Mr. Boateng thought it was more prevalent in the later years because of the economy There is a very stringent collection process including liens. Commissioner Casello questioned if the money from the liens is collected, did it go back into the Utilities Fund and Mr. Boateng replied it did. Mr. Howard advised the monies are returned to the Utilities operating fund. The budgeted monies are a bad debt expense and set up as uncollectibles so the revenues are not overstated on any given year. The debt is eventually turned over to a collection agency. Attorney Cherof added the liens on homesteaded property prevent foreclosure. UTILITIES CIP Mr. Boateng noted utilities are very asset intensive. There is both above and below ground infrastructure with miles of distribution lines and a collection system. There are 159 lift stations throughout the service area and fire hydrants. It is also regulatory driven to protect the public and environment It is run on user fees and no revenues are from taxes The fees have to adequately support the operation and cover the future capital improvement plans. There are 11 current projects with an overall budget of $56.4 million. Some of the projects are mandated for completion by 2015. The pipeline interconnection is one of the projects and the East Plant expansion another. The funding structure has three funds, 403, 404 and 410 that are used to support the CIP program. The 403 accounts obtain revenue from user fees and is used to support, renewal, repair or replacement projects. The current balance is $6.6 million. The future revenues for the next five years will generate about $21 million. The fund 404 receives revenue from new developments to support the CIP projects that add capacity to the existing system The current balance is approximately $19 million and over the next five years $12 million would be added. The 410 account has revenue from the bonds issued and it supports projects not covered by the other two funds. There is currently $20 million in the fund with anticipated new bond issues to add money to the fund. Commissioner Casello questioned why there was a reduction shown in the fund balance for the 404 account that has revenue from new development that is growing. Mr. Boateng replied the previous projections were much lower. According to the bond covenants, about $4 million has to be put into the account. Each account is independent of the other. Mr. Howard interjected the CAP fees are on new land or undeveloped land because new capacity is being added to the existing system. Much of the building is reconstruction with the infrastructure already in place. The existing projects were arranged in four groups The group "A" projects would improve the water and waste water in communities where the projects are implemented. 13 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Group "B" projects are the pipeline interconnect that would assist in moving water from the West Plant for treatment at the East Plant. The West Plant has additional raw water, but limited treatment capacity. The East Plant has extra treatment capacity, but limited raw water. The idea is to leverage the additional treatment capacity at the East Plant and the extra raw water at the West Plant. Group "C" projects are improvements that need to be done at the East Plant to process the additional water from the West Plant. Mayor Taylor asked if the RFPs had gone out and Mr. Boateng corrected it was a Request for Qualifications (RFQ) and it had not gone out. It was to be issued by next month. Mayor Taylor asked for a timeline on the Group "B" project. Mr. Boateng announced that section "A" was completed and "B" had not been awarded as yet. Before a contractor could be selected, there had to be due diligence to ensure their qualifications to do the job. The last group was reclaimed water projects that would extend reclaimed water systems to other parts of the City. Group "A" contains four projects, being the central Seacrest corridor and would provide improved water and storm water services to the area. It will have two phases. The first phase will cost $13 million. The Lake Boynton Estates improvements are pretty much the same and cover improvements in water and storm water. The budget is $1.2 million with the money obtained through bond issues. The Pence Park project is a lift station that is going to improve sewer services to the east quadrant of the City The Congress Avenue project would help to manage the connection between the existing sewer line and the treatment plant in Delray More recently another line was installed that would serve the west quadrant of the service area from 4 Street to the plant. Both projects would be $1.5 million. Commissioner Fitzpatrick located Pence Park along 4 Street and indicated many residents were not happy with how narrow the Street became. He questioned what was under the street. Mr. Boateng advised many new pipelines were installed and storm water pipelines. There is a reclaimed water line in the area also. Exactly what was installed under the pavement was questioned and Mr. Boateng agreed to supply the information to Commissioner Fitzpatrick. Ms. LaVerriere interjected some of the service lines were upgraded for the development of the Arches site and other sites in the area to accommodate future development. The reclaimed lines do not intersect Ocean Avenue as yet. The project schedules are central Seacrest would be bid in August and probably awarded in October, with construction commencing in November. The Boynton Estates and Pence Park projects will duplicate the schedule of the Seacrest project The Congress Avenue valves will not commence as early until more design work is completed 14 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 The Group "B" project has the first section completed and the second section would be awarded in August and section "C" would be awarded two months thereafter. Commissioner Casello wanted it clarified that the project bids have not been awarded, but the money has been budgeted. The numbers could come in lower Mr. Boateng agreed. Group "C" is comprised of projects that will help to pretreat the water at the West Plant before it is pumped to the East Plant. The budgeted amount is $14.6 million It is another unfunded mandate that is being closely monitored. The East Plant rehab of almost $8 million would allow for the renovations to accommodate the additional water from the West Plant. Mayor Taylor inquired if the interconnect from the West to East Plant could be reversed and the treated water be sent back to the West Plant, if needed. Mr. Boateng indicated it could not be sent back to the West Plant. Once the water from both plants is treated it co- mingles in the distribution system. The Group "C" projects follow the same completion schedule because they will all be done in a collaborative fashion The reuse program would extend the current reuse to other areas within the service area. The budget is $6 million to be funded from CAP fees It is a multi -year project and when completed will cost approximately $12 million. Maps were displayed to outline the area currently receiving reclaimed water and those planned for the future. There is a mandate that 60% of the affluent be converted to reuse water by the year 2025. There is also a requirement from the South Florida Water Management District to do the same thing. Commissioner Fitzpatrick asked about the distribution pipe that would go across to the St Andrews Golf Club and the Little Club. South of those locations is the Gulfstream Country Club that used to draw water from Gulfstream Boulevard. He wanted to know who provided Gulfstream with water and reclaimed water and suggested another line could be taken across to add those accounts Mr. Boateng thought Gulfstream was served by Delray. Commissioner Fitzpatrick questioned if there was any value in joining with Delray on the barrier islands for water pressure. Mr. Boateng did not feel there would any problem. There are no barriers that would prevent it. Mayor Taylor declared a lunch break at 12:24 p.m. Mayor Taylor reconvened the meeting at 12:58 p.m Ms. LaVerriere indicated the special funds had to be reviewed. 15 Meeting Minutes Special City Commission Boynton Beach, FL. RISK July 23, 2013 Julie Oldbury, Director of Human Resources and Risk Management, introduced Pam Webb, the Risk Administrator, who present the self- insurance fund. Ms. Webb pointed out the budget had increased due to the insurance premium increases. Based on claims over the past five years, auto insurance increased and the general liability increased All the self- insured claims for general liability, property and vehicle had to be raised because the sovereign immunity in Florida changed from $100,000 to $200,000. At the same time the self- insurance deductible was raised to $200,000 to keep the insurance premiums at a reasonable cost. The huge increases included additional personnel costs from the merger with Human Resources. Commissioner Fitzpatrick recalled the recommendation of the Financial Advisory Committee and questioned how it would affect the Department. Ms. Webb advised it could make a difference in the future The current brokers are not open to get quotes from the League of Cities. When the RFP has expired and the contracts for the brokers expire, it will be opened and become more competitive. Commissioner Fitzpatrick questioned if the rates were better from the Florida League of Cities and Ms Webb advised it was possible, especially for workers compensation. There could be better self- insurance deductibles. The current deductibles are very high. Commissioner Merker wanted further explanation how the current brokers were selected. Ms Webb replied an RFQ for brokers was sent out. Once a broker was found, the Risk Manager assigned the broker to markets to get quotes. It was an attempt to get the best match of brokers with the types of insurance. It was done every two years. Mr. Howard interjected the broker selection was done every two years. The brokers then went out every year and got the rates for the coming year. Mayor Taylor asked who did the negotiations for settlement of claims or lawsuits. Ms. Webb advised she did the negotiations with the Attorney. Mayor Taylor inquired if there was a budgeted fund or did it all go through the insurance company. Ms. Webb would first notify the insurance company of negotiations. They are part of the negotiations and mediation A claimant cannot receive more than $200,000 from a public entity. There could be an agreement for more, if it is a catastrophic claim. The costs can be over $200,000 and are sent to the insurance company once the claim is closed. Mayor Taylor was concerned if Ms. Webb had a cap on her authority to settle claims and she indicated there was none, but anything over $200,000 she would consult with legal counsel. Vice Mayor Hay questioned if there was a trend in the number of claims. Ms. Webb reported more claims are filed when the economy is down and people looking for ways 16 Meeting Minutes Special City Commission Boynton Beach, FL. to get money Claims are being mitigated with the Safety Administrator because there is closer supervision and monitoring of risk areas. It can usually be corrected before claims are filed GOLF COURSE July 23, 2013 Ms. LeJeune introduced the item With the recent retirement of the Golf Course Manager, there would be minor revisions to the budget. A certified golf superintendent would be hired with Commission approval and an internal CIP plan would be created to identify, prioritize and track projects over the next five years. She then introduced Ron Tapper, the head golf pro and appointed as the Interim Golf Course Manager. He does a great job and was being very helpful during the transition period. Mr. Tapper reported the rounds played are about 65,000 a year, down from previous years due to the economic conditions. It is a hidden jewel for the City. The grounds are getting better. The revenue is down to $2.84 million for a 7.3% decrease It was due to retirement pay outs. The fees have been reduced by 3.5% to 4% for the remainder of this year The Links was 2.5% to 3% comparable overall in the public golf course industry. There may be a few courses that have more players, but their revenue is less. There has been a shortage of staff and more help will be hired to improve the course. There are many programs that will continue and money has to be set aside for capital improvements, such as maintenance of machinery, tree trimming, golf cart replacement, greens improvement and clubhouse repairs. Advertising signs were being considered to garner more awareness of the course to generate more revenue. The current mode at the course is reactive and Mr Tapper hoped to change that to proactive. Every year two major tournaments are hosted for juniors, the Palm Beach County Junior Golf Association and the Park Vista Invitational Park Vista High School uses the course as their home course and holds matches all year around. Scholarships are awarded to the winners. Once a year the course hosts a Breast Cancer tournament with this year being the biggest ever, raising $8,000. Over 100 golfers participate every year and it is growing. More junior programs are going to be initiated. They will be at affordable prices. The course is Audubon certified. Commissioner Casello commented he had worked there part -time and the City made a great choice in selecting Ron Tapper. He has changed the whole attitude of the Links. Many people come to the course based on the high rating it receives from the Golf Digest magazine Commissioner Casello was passionate about the course and believed it is a destination site. It was rated as South Florida's number one municipal golf course The physical condition of the course has greatly improved and it would continue to grow with increased rounds and increased revenue. 17 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Commissioner Casello felt it was imperative that there be some signage along Jog Road to advertise there is a course. Mr. Tapper was investigating permanent signage to allow the Links to advertise its own specials ongoing, rather than ads that expire quickly. Mr. Tapper reported there is a group of disabled students from Park Vista that do odd jobs at the golf course. They are recognized with a small party at the end of year and the program has grown from five participants to 20 Commissioner Casello had seen the interaction with the students and it worked great. Commissioner Casello noted there was little budgeted for equipment maintenance and for upgrades. Ms. LeJeune interjected there is a five -year strategic plan discussed including an internal capital improvement program for maintenance, equipment, as well as the golf course itself. It was anticipated to use a fleet replacement schedule. All equipment, facilities and maintenance will be listed, prioritize and a plan established to improve the course. Vice Mayor Hay inquired if the adjacent land had ever been considered for use. Mr. Tapper replied the land was not for sale. Mayor Taylor suspected it was owned by the County, since the County owned the golf course land. Commissioner Casello felt the canal on the property made it almost undevelopable. Commissioner Fitzpatrick recalled a concert being held on the premises and wondered if it was an appropriate use that may be reinstated. Ms. LeJeune advised it was an inappropriate use for the golf course. Mayor Taylor noted there was a transfer to the General Fund of $25,000. PUBLIC ART Debby Coles -Dobay advised the budget was almost flat and one of the smallest budgets in the City. It does a huge job by contributing to the City's economic development, cultural tourism and positive brand image. The budget is $117,200 and increased due to medical insurance costs rising. Vice Mayor Hay inquired about the sales for the public art on Ocean Avenue Ms. Coles -Dobay replied the art is all for sale and the City gets a percentage that goes back into the program. The program is funded by a 1% public art impact fee with 70% staying in the development or redevelopment project with the remainder going to Art in Public Places administration. Commissioner Casello asked if Ms Coles -Dobay was seeing more revenue with an increase in development. She worked with the Development Department closely to balance the expenditures for the program. The budget is mainly the operation of the 18 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Department and the Avenue of the Arts is the only program funding Last year the expense was married with the International Kinetic Art Exhibit and Symposium. Creative funding is used to maintain the balance. Mayor Taylor inquired if there was a fund balance and Ms. Coles -Dobay said it was a flat budget. She did indicate there is an option for the developer to give the 70% contribution to the Art in Public Places program rather than integrate art into a site. Vice Mayor Hay explored the possibility of Ms. Coles -Dobay needing any help in the future with more art for the City. She advised there would be some seed funding needed for the 2015 Kinetic Art Exhibit and Symposium and would utilize other funding from partners and sponsorships. In April or May of 2014, the search for art for the Exhibit and Symposium would begin. Ms. LaVerriere added there was $15,000 allocated in the City Hall budget, under special events, for support for the event. Mayor Taylor observed Ms. Coles -Dobay was the only employee. Vice Mayor Hay wanted more information on the Avenue of the Arts program. Ms. Coles -Dobay indicated it was a year -long, on loan program. A Call to Artist is sent out and the submissions are reviewed by the Arts Commission for selection and placement. A structural engineer has to approve the site and art installed. RECREATION PROGRAM FUND Wally Majors, Director of Parks and Recreation, explained the Fund was created to take the revenue from registration fees and separate it from the General Fund. In essence, all the fees collected cover the direct expenses related to the programs including the instructors, equipment and supplies. It was created under the authority of the Commission in 1993 via a resolution. Many special needs expenses have been offset too. Vice Mayor Hay inquired about the condition of the canvas at Oceanfront Park. Mr. Majors recognized there were some problems with the contractor that were being addressed. It is being monitored It was not part of the normal maintenance. It was part of the remodel for the boardwalk and not funded through these monies. Vice Mayor Hay wanted an update on the new equipment planned for the Barrier Free Park. Mr. Majors pointed out the fundraising would be done by the Greater Boynton Beach Foundation that has been tasked to raise money for the playground equipment. It was not included in this budget. There was an application through the Trust for Public Lands for fitness zones. The fitness zone equipment would be for all ages and is comparable to equipment found in indoor facilities or gymnasiums. A match for the fund is included in the Capital Improvement Program budget. Money was also being raised 19 Meeting Minutes Special City Commission Boynton Beach, FL July 23, 2013 for other park improvements and it was recently indicated the Realtors Association of Palm Beach County would host another 5K run and walk to generate more money. Alternative funding sources were always sought. Vice Mayor Hay recalled the incident with the dog and questioned if the City was at risk for other type accidents and resulting liability. Ms. LaVerriere remarked dogs are not allowed in the parks It was unfortunate. A fine can be assessed by the Police. It is generally a courtesy request that gains compliance. Commissioner Merker wanted signs posted because dogs are living creatures Mayor Taylor thought the State of Florida had a leash law and any animal not on a leash was the responsibility of the individual Mr. Majors further explained the exposure to risk at a park is limited. The City has to maintain the equipment and inspect the parks on a regular basis Commissioner Fitzpatrick understood the toilets at the beach drain into a percolation field under the parking lot. He wondered if there should be future plans to connect to a sewer line in the area. Mr. Majors indicated there was a treatment plant at the Park and it has not had problems. It may warrant some discussion with the Utility staff. Mayor Taylor questioned the $4,000 budgeted for postage that increased to $8,000. Mr. Majors concluded it related to FunFare magazine. Most recently it has been mailed to a distribution list and it does increase from year -to -year. Commissioner Casello suggested the increase in postage costs may contribute to the increase. Mr. Majors clarified the amount budgeted had not changed. It just happened in 2011/12 it was all spent Commissioner Casello inquired about the results of the parks survey that had been sent out. Mr. Majors advised the consultant would supply the data in mid - August that would be presented to the Commission. There was a suggestion that synthetic turf be an option on several surfaces. The Hester Center football field is heavily used and has to be closed for a month to rest the soil and grass The popularity of soccer has increased the use of the parks. Other municipalities have instituted the use of synthetic turf for public areas. It is very expensive even with matching grants. The return on investment is slow, but it would be discussed in the future when budgets are more robust. The Hester Center would benefit greatly from the improvement. WAREHOUSE Mr. Howard indicated the budget remained the same. The warehouse is staffed by four people and houses the basic supplies and items for the various departments. The supplies are bought centrally and then requisitioned and charged back to the individual 20 Meeting Minutes Special City Commission Boynton Beach, FL. departments. The budget increased by $11,000 and the majority is the rise in health insurance costs. Commissioner Casello asked the location of the warehouse Mr. Howard indicated it was at the Public Works compound. Mr Howard explained it is open different hours due to vehicle maintenance and utility work. Vice Mayor Hay asked if the space was adequate. Mr. Howard thought it was adequate at this time, but could always utilize additional space. It is not at a critical juncture. Storage of records is at that location. It will probably move with Public Works whenever that takes place. TRAFFIC SAFETY The current budget is status quo from the current year. The proposed budget reflects the cameras being used and it will have to be modified to encompass the changes in the Statute requirements. The fines pay for two Community Service Officers (CSO) and leases for all the cameras. It will be modified to include the fines and the administrative charges for the CSOs, camera clerk and special magistrate. There will have to be a revision to the contract and a new agreement for the magistrates. There are twelve cameras and four more would be installed. WRAP UP DISCUSSION Ms. LaVerriere commended the Commission on going over the entire budget. Commissioner Casello remarked it was his first experience with this type of budget and it was an honor to see the Department Heads present their budgets professionally and simply stated so it could be understood. The dedication to the City is overwhelming. The City is so fortunate to have the leaders in place to run the City. He was proud to sit on the Commission and work with the staff. Mayor Taylor surmised the entire Commission would agree with those comments. He also thanked the staff. Vice Mayor Hay added he knew the City had the best staff. It is up to the Commission as leaders to work with the staff to make the process a success. There is now a Commission that understands and asks questions to make the best decision for the betterment of the City and citizens of Boynton Beach PUBLIC AUDIENCE Herb Suss, citizen of Boynton Beach, issued his report cards to the elected officials. He commended the various Departments and entire staff. He did feel the golf course should be expanded if possible and the purchase of any available park land should be a priority. Mr. Suss felt the millage rate should be set at 7.9 mills. 21 July 23, 2013 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 Commissioner Merker complimented the City employees and thanked each and every one for helping him grow as a City Commissioner. Millie Hay observed how pleasant it has been to hear and see a Commission that works together and acts appropriately. She hoped it continued with an even better attitude to take care of business in a professional manner. Commissioner Fitzpatrick remarked ten years ago there was a public hearing for the fire assessment and he wanted to make it clear that he still believed Fire Station #2 needed to be built on park land because it is hard to site fire stations. He was never opposed to building Fire Station #2 on park land. However, there was no compensation for the land and if public need is the greatest good and park land has to be used, then there needs to be an ordinance that park land be replaced at a two to one ratio. In the future he would propose such an ordinance Mayor Taylor declared there needed to be an adoption of the preliminary fire assessment rate resolution for FY 2013/14. Attorney Cherof pointed out it was a lengthy resolution in terms of content. On appendix E -1 indicated the fire assessment funds raised would be $5,809,640. The Fire budget is $19.6 million The fire assessment only raises a small portion of the total budget. Resolution R13 -067 was read by title only by Attorney Cherof. He announced the public hearing would occur on September 12, 2013 at 6 p.m. in City Commission Chambers and, if approved, the final adoption would occur Motion Vice Mayor Hay moved to approve Resolution R13 -067. Commissioner Merker seconded the motion. Commissioner Casello asked if this was similar to the tax millage rate, that once it is preliminarily set, the amount can go down, but cannot go up. Attorney Cherof concurred. Mayor Taylor confirmed the rates were $88 for a dwelling unit and a graduated rate based upon square footage. Commercial is 20 cents a square foot, industrial warehouse is five cents a square foot, institutional is 20 cents a square foot and nursing home is 20 cents a square foot The rate has remained the same for two years. Commissioner Casello understood the rate was comparable to other municipalities and even below some. He suggested an increase of $1. Ms. LaVerriere advised any increase would require a first class notice be mailed to all property owners in the City and done through a consultant at a cost of 22 Meeting Minutes Special City Commission Boynton Beach, FL. July 23, 2013 $40,000. It was estimated an increase to $95 would generate about $200,000 in revenue. Commissioner Casello did not want feel an increase was warranted then. Vote The motion passed unanimously. Mayor Taylor indicated there needed to be a motion for a tentative millage rate for 2013/14 Commissioner Merker questioned if the City was too close to the vest. He was conservative and liked the idea of reserves He understood at 7.9 mills the increase to taxpayers would not be significant. Ms. LaVerriere advised establishing the rate is the Commission's policy decision Commissioner Merker felt raising the millage to 7.9 would protect the people of the City not just this year, but next year too. Motion Commissioner Fitzpatrick made a motion for 7.9 mills. Vice Mayor Hay seconded the motion. Mayor Taylor noted the tentative millage rate of 7 9 could not be raised, but could be reduced. Vote The motion passed unanimously. Attorney Cherof was required to indicate that the roll back rate is 7.4882 and that the first public hearing to adopt the millage and budget for the coming fiscal year would be September 3, 2013 at 6:30 p.m. at the Boynton Beach City Hall, Commission Chambers. Ms. LaVerriere advised the notices on the public hearing would be posted as soon as possible in as many places as possible. Commissioner Fitzpatrick wanted authorization from the Commission to talk to the County Commissioners about the park land and see if something could be done. There was consensus he could proceed. 23 Meeting Minutes Special City Commission Boynton Beach, FL. ADJOURNMENT There being nothing further to come before the Commission, the special meeting was adjourned at 2:21 p.m. ATTEST: t M Prainito, MMC Clerk dith A. Pyle, CM eputy City Clerk Y r) AtccuAtAci 6e/ta CITY OF BOYNTO CH 1 !ry T 1r odrow Hay, Vice 24 Casello, Commissioner missioner July 23, 2013