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Agenda 04-14-14 The City ofBoynA Beach FINANCIAL ADVISORY COMMITTEE MISSION STATEMENT THE FINANCIAL ADVISORY COMMITTEE'S GENERAL RESPONSIBILITY IS REVIEWING THE IMPACT OF EXISTING OR PROPOSED LEGISLATIVE AND ADMINISTRATIVE DECISIONS ON THE CITY'S BUDGET, REVENUE SOURCES, AND OPERATIONAL EXPENDITURES. THE COMMITTEE IS RESPONSIBLE TO MAKE RECOMMENDATIONS THAT MAY FAVORABLY IMPACT THE CITY'S BUDGET AND OVERALL FINANCIAL CONDITION OF THE CITY. MEETING OF MONDAY, APRIL 14, 2014 @ 6:00 — 8:00 P.M. LIBRARY CONFERENCE ROOM A THE COMMITTEE MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS ESTABLISHED WITHIN TWENTY (20) MINUTES OF THE NOTICED START TIME OF THE MEETING, THE CITY CLERK OR DESIGNEE WILL SO NOTE THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED. COMMITTEE MEMBERS MAY NOT PARTICIPATE FURTHER EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY. AGENDA • Call to Order — Steven Grant, Chair • Should any members not be able to make the meeting; contact Tim Howard ( HowardTaftfl.us ) or (561) 742 -6311 by 1 pm Monday as the meeting may be cancelled for lack of a quorum. • Introduction of Christine Stella, Regular Member • Approval of February 24, 2014 Minutes (Copy attached) — Kindly review in advance of meeting • Approval of March 10, 2014 Minutes (Copy attached) — Kindly review in advance of meeting • Other Business • Discussion of Vacant List • City Services Survey — Review changes made at last meeting • Adjournment Currently scheduled future meeting dates - Targeted for 2 nd and 4 Monday of each month: • Monday, April 28,2014 — 6:00 PM • Monday, May 12,2014 — 6:00 PM • Monday, May 26,2014 — No meeting - Memorial Day S: \Finance \Financial Advisory Committee \Agenda \Agenda - 04- 14- 14.doc MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, FEBRUARY 24, 2014, AT 6:00 P.M., IN THE CITY LIBRARY, ROOM A 208 S. SEACREST BLVD., BOY ON BEACH, FLORIDA PRESENT: Steven Grant, Chair Tim Howard, Finance Director Jeffrey Grady, Vice Chair Fakhry "Ed" Boulos Dolores Schlesselman Christine Stella ABSENT: Gary Dunmyer 1. Call to Order Vice Chair Grady called the meeting to order at 6:12 p.m. Roll call established a quorum was present. • Introduction of Christine Stella Chair Grant introduced new member, Christine Stella. She commented she was only aware of the Committee from what she read in the minutes. Chair Grant explained for the last three years, the Committee was reviewing cost-cutting measures. The City has an annual survey and residents are asked what they would like done in the City. Additionally, the City Commission agreed the Committee could review vacant lots in Boynton Beach. They will also review alternative energy. Ms. Stella moved to Boynton Beach seven years ago from New York. She works in Boca Raton and lives near Lake Ida. She has a Master's degree from Fordham University and attended the State University of New York at Albany. She worked for Pfizer for nearly 10 years. She is recently engaged and has a strong financial background in corporate finance, mergers, acquisitions, divestitures and capital investments and more. Mr. Howard welcomed Ms. Stella to the Board. 2. Approval of January 13, 2013, Minutes Mr. Howard received two corrections from the Assistant City Manager, Carisse LeJeune as follows: MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL FEBRUARY 24, 2014 Page three, first paragraph — Ms. LeJeune told Chair Grant the City has solar panels on Fire Station No. 5 and wind turbines in two retention ponds. She did not tell him that the City was discussing using land near the golf course for alternative energy because the City was not. The members agreed it was the Committee that discussed using the land near the Golf Course for alternative energy. Page two, paragraph three — should read Climate Action Plan (CAP) and not Capital Improvements Plan (CIP). Ms. LeJeune was interested in funding opportunities for projects that are currently in the CAP. She is not in charge of the Capital Improvements Plan and did not discuss it. Motion Vice Chair Grady moved to approve the minutes as modified. Ms. Schlesselman seconded the motion that unanimously passed. 3. Other Business • Updated List of Committee Members • List of Vacant Lots These items were discussed together. It was pointed out Gary Dunmyer was still on the list because the City Commission had not yet accepted his resignation. • Discussion of Vacant Lot List previously sent Chair Grant had printed information from the Property Appraiser's website regarding the assessed value of the properties. Some were worth hundreds of thousands of dollars and others had very little value. Mr. Boulos viewed his assigned lots online to obtain an idea of its location and physically inspected them. Each was in a residential area with no grass. One was on MLK, and the lots were about 100 by 100 or 200. One was a corner lot and the rest were consecutive lots. One had a boarded up house. He questioned who would construct a home in an area that was not well developed. The lots were also too small to accommodate any type of use except to donate to a developer to construct something. Mr. Boulos also reviewed The Links Golf Course and met with the Manager, Ron Tapper, as The Links and City parks had been considered for alternative energy. Mr. Boulos suggested having business cards printed because it is difficult for him to explain to individuals his function on the Committee. Mr. Tapper did not know how much 2 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL FEBRUARY 2, 2014 electric The Links used. Mr. Boulos had inquired about a corner piece of land and learned it was not owned by the City. The only space Mr. Boulos saw that could accommodate a lot of alternative energy was about 2.5 acres along the entrance. The Links has a pump station, a building and electric golf carts, which use energy. They had experimented with alternative energy by installing one cart with a solar panel above the canopy and learned it was not viable because golf balls hit and broke the panel. Additionally, someone drove under a tree with a low tree branch and ruined the panel. The pumps at The Links are for irrigation and Mr. Boulos would have to return to The Links for further information. The pumps could be an option, separate from the carts and building. Mr. Boulos; also advised he could not access Meadows/Nautica Park. He learned from the web that agricultural interests did not want the land to be developed or want patrons on agricultural land because there was not much agricultural land available. For Ms. Stella's benefit, Chair Grant explained the process the Committee follows with the City Commission. Mr. Howard also explained The Links is owned by the County and the City has a 99-year lease with them. Ms. Schlesselman explained most of the properties she had were in the Heart of Boynton CRA plan. The CRA recently had a meeting she attended regarding updating the plan and they were already working on some components. The CRA approved a Family Dollar store south of the lots she was assigned. Her lots were medium density residential lots. She also was assigned the Denson Pool and could not find information about the Wilson Park Project, but the Park is empty except for the pool and building. There were two lots on the other side of the street bordered by a canal that was part of the park land. It was not a high traffic area and could be a good location for alternative energy. While the property is not large, it is out of the way. She also did not know where to find information on what was planned and Mr. Howard suggested she contact Recreation and Parks Director, Wally Majors. Ms. Schlesselman also researched FPL Park which is a small, wedged-shaped property. It has many trees and was located between a highway and residential community. It did not appear to have easy access or be a location residents would travel too. Chair Grant researched his and Mr. Dunmyer's properties. Many of the properties were less than a 10 of an acre. The former animal shelter was a half-acre in a high density area. Unless the City wanted to use the property for another facility, someone else could use the property. Chair Grant thought some properties were suitable for facilities or alternative energy, to create a park or be sold at auction instead of them being an expense for the City. 3 FETING MINUTES FINANCIAL ADVISORY COMMITTEE BO BEACH, FEBRUARY 2 , 2014 There is a six -acre property in Mission Hill next to 1 -95 that he recommended could be studied for alternative energy. It is next to a canal and has a breeze. The Parks Department or the City Survey could ask residents if they would mind wind turbines at that site. He also recommended advising the City the small lots had no value. If someone else wanted them, that was fine. Mr. Howard explained there were a variety of ways the lots were obtained such as for infrastructure or tax deeds. He was aware the City and CA were trying to assemble land for redevelopment. The CRA has lots in the general area as in addition to the Family Dollar Store parcel. As properties became available, the CRA would acquire them. Some parcels were owned for years and others were recently acquired. Chair Grant also reviewed some parks and commented Boynton Beach has a facility and parks guide in PDF format. Unlike FPL Park that is wooded, other parks are by canals and could be used to help green the City. The task for the next meeting was to start making recommendations of what to do with each lot. Parks could have more than one function. Chair Grant would send recommendation forms to the members, and he explained how to use the form. The Financial Advisory Committee would vote on each lot and on certain areas of specified parks. Ms. Schlesselman inquired, since the CRA had a detailed plan, if she should pursue her lots. Chair Grant she should indicate on the Recommendation Form under the "Pros" category what was being planned and under "Cons" an alternative plan. He proposed the deadline for recommendations on the vacant lot items be April 14 List of Study Topics, including Commissioner suggested topic Item three, Evaluate Alternative Energy Sources for Buildings and Funding, was for all to review and go into deeper detail. Vice Chair Grady explained he found information that the highest photovoltaic output occurs on the hottest, brightest days when there is the highest electric demand. In many instances, pairing solar and electric power on high demand days works well. The problem is the cost of installation. He also found information solar and wind power seems to be the most feasible for what other cities and entities, such as country clubs, use. Ms. Stella inquired if studies by neighboring cities were done and it was pointed out that if so, the studies are public record. Mr. Boulos asked if he could inquire about power at PGA and was encouraged to call. Mr. Boulos thought PGA had many, many golf carts and if they were not using solar power, there must be a barrier to do so. He noted the The Links has only 45 golf carts. It was also suggested other like -sized cities would be a good indicator of the success or failure of alternative energy. Mr. Howard thought Jupiter or Palm Beach Gardens installed a certain type of water chiller paid for by an energy block grant and it saved money. Additionally, Vice Chair Grady noted oftentimes the manufacturer will publish case studies that involve municipalities. A good starting 4 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL FEBRUARY 24, 2014 nql point would be if cities that constructed buildings in the last two years. The Committee agreed solar and wind turbines were the best options. Mr. Boulos was asked to review City energy uses but had not contacted the Director of Public Works, Jeff Livergood. Ms. Schlesselman reviewed conservation and had looked at other cities. There are incentive plans other cities had to conserve energy overall. Many grants ran out and she checked with Palm Beach County. Almost everything was based on grants. She noted the City has many programs waiting on funding. Going forward, she inquired if the Committee should look at whether it is in the City's best interest to pursue grants or self-fund. It was noted most have used the grant funds, and she commented there may be quite a bit available for specific uses. Chair Grant was to speak with the Grants Coordinator, Debbie Majors, before moving forward to see what grants were available. There used to be rebate programs for appliances. The Climate Action Plan contained different ways to conserve such as the Green Building Program. If plans are available, they would look for a way to fund them. Chair Grant commented that could be a question in the City Survey. Citizens may be willing to pay more taxes for conservation or alternative energy which would assist the City over the long term. Chair Grant thought if a viable recommendation is made , those plans with have a short-term gain and long-term cost and visa versa should be identified. Ms. Schlesselman was aware of seven programs which reduce costs through partnerships with residents and commercial entities to implement alternative energy. She had to look up terms such as zero-net GHG emissions on future City vehicle purchases. She thought she could make recommendations for each of them. Vice Chair Grady commented FPL has an entire department dedicated to alternative energy, but he was unable to contact them. Mr. Boulos was concerned if the Committee was starting a trend people may not be ready to embrace and it would be difficult to sell. Mr. Boulos was to address the "Analysis of Residential vs. Commercial Tax Base Including Residential Property Taxes as a Percentage of Per Capita Income, Compared to Surrounding Cities" item; however, he was unable to get to the project and they will revisit the item after April. A recommendation regarding Item Five, to establish a non-profit organization, there is already an umbrella organization to use. The by-laws were to fund anything cultural, educational or environmental. • City Services Survey 5 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL FEBRUARY 2, 2014 The survey was to solicit positive feedback. Vice Chair Grady commented the survey should be carefully worded to market Boynton Beach in a positive manner. Survey participants can rate the services in order of importance. The Congress Avenue corridor was doing well. Chair Grant also commented the property appraiser is not limited to a 2% or 3% increase in value. The values of City properties also will increase. For the next meeting, members were to write their opinion on each question. Economic Development Planner, Scott Kline, finished his survey. Mr. Howard will obtain a copy of that survey and send it to the members to avoid duplication. The members will also give an update on their project with bullet points. On April 14 " , they will start voting on recommendations. Mr. Howard will research when the survey will be posted. The survey will also be finalized next month. Chair Grant agreed to email Ms. Stella the tasks former member Gary Dunmyer had. 4. Adjournment Motion There being no further business to discuss, Vice Chair Grady moved to adjourn. Ms. Stella seconded the motion that unanimously passed. The meeting was adjourned at 7:26 p.m. I Catherine Cherry Minutes Specialist 140206 6 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, MARCH 10, 2014, AT 6:00 P.M., IN THE CITY LIBRARY, ROOM A 208 S. SEACREST BLVD., BOY ON BEACH, FLORIDA PRESENT: Jeffrey Grady, Vice Chair Tim Howard, Finance Director Fakhry "Ed" Boulos Dolores Schlesselman Christine Stella ABSENT: Steven Grant, Chair 1. Call to Order Vice Chair Grady called the meeting to order at 6:08 p.m. Roll call followed. A quorum was present. 2. Approval of January 27, 2014, Minutes Mr. Howard received two corrections from the Assistant City Manager, Carisse LeJeune as follows: Page two, first paragraph — "The City received a grant from the Department of Energy hist-yeaF in 2009 allowing them to put solar panels at Fire Station 5 for a water heater." Page three, paragraph four — Ms. LeJeune commented it was inferred that she said the Foundation wanted to complete the Barrier Free Park before taking on new projects, but she did not and she thought perhaps the Chair had. The members decided to end the sentence after the word "Park." Chair Grant S-he explained the Foundation wants to A, ;A- complete the Barrier Free Park -m- --,.,;A t-6111Y Motion Ms. Schlesselman moved to approve the minutes as modified. Ms. Stella seconded the motion that unanimously passed. 3. Other Business Updated List of Committee Members MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL MARCH 10, 2014 Mr. Howard provided the updated Committee list and asked the members to review it for accuracy. There were no changes noted. • List of Study Topics Vice Chair Grady commented there were items left over from the last meeting and he found some lots on his list in residential areas. The size of the lots ranged from one-fifth of an acre to five-one hundredths of an acre. One lot was a viable building lot and he did not know if the City wanted to hold the lot. The Committee could recommend the possibility some lots could be developed if the City was not holding them for other reasons. This particular lot was located at 1100 NW 1' and it was valued at $75K. Another lot north of Fire Station No. 5, on the corner of Gateway and High Ridge Road, was nearly 5.5 acres. It was a valuable piece of industrially-zoned land. Mr. Howard explained when the City acquired that land, the intent was to place a fire and police station there. The City Commission revisited that issue last year and was looking into space needs for a police station at that site. Other lots were mostly for utilities. One housed only a sprinkler block and a meter. There were a few lots in Cherry Hills that may be buildable, but they seemed narrow and they may have been to accommodate an easement. The lots west of Fire Station No. 2 appeared to be for Utility purposes. Vice Chair Grady explained the old landfill was about 40 acres and it was outside the City limits. The property is not flat nor was it a 500 foot hill like the current day landfills. In his research with FPL and the Department of Energy, it would support - a wind power device, but the Department of Energy indicated areas west of 1-95 do not have enough wind to justify the expense of a wind turbine. The only successful turbines were the one by the nuclear power plant in St. Lucie because it was on the ocean. Vice Chair Grady found good examples of photovoltaic power, which was connected to electric, across the country. In New Jersey, a school district installed almost 30 acres and it paid for nearly all the electric for a large campus. He will continue to work on a recommendation for this. Solar energy is a possibility with new advances in technology. Thirty acres would produce about six megawatts of power. Obtaining a permit for any development on a landfill is challenging. Utilities are somewhat open to municipalities entering into green energy production for small amounts of energy. Vice Chair Grady explained all they had on parks was Pioneer Canal Park consisting of three acres. Quantum Park was several hundred acres and discussion followed the Park was an industrial park that evolved into having multiple zoning designations which accommodated a brewery, retail and a school. Florida Power & Light uses 80 meter turbines and they choose not to put turbines within a mile of another structure. Their guidelines are drafted to avoid any liability or conflicts. 2 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL MARCH 10, 2014 As to the old landfill, there is a lack of wind and solar energy would be a more realistic alternative due to the size of the land. Additionally, when generating a lot of electricity, the intent is to use the power and policies would be needed. Testing and monitoring are ongoing at landfills. Vice Chair Grady explained the Committee has to determine if the vacant piece of land could support another function. Ms. Stella confirmed she will not be at the next meeting, but had received Mr. Dunmyer's tasks and will begin working on them. There was agreement the Committee, at the next meeting, would finish the vacant lot portion of the tasks. Ms. Schlesselman commented Wilson Park was finished. The vacant land behind the Park was part of the park. Vice Chair Grady explained vacant land was a recurring expense to maintain. Discussion ensued it was unknown what the objective was in acquiring the parcels. Mr. Boulos explained Public Works Director, Jeff Livergood, offered to come to a meeting and they had discussed electric and fuel costs. The City is considered a commercial account so the usage rate varies. The City uses 26M kilowatt hours annually. The water treatment plant uses 8.5 million kilowatt hours, mostly for the lift stations. The second largest use were street lights. The City pays $12.5 dollars per month for each light. There are 8,000 lights and they pay $600,000 per year for them, but the electric use is known. The light poles could be converted individually. The lights run on high pressure sodium fixtures and they could be LED lights. The conversion of each pole to LED; however, may be cost prohibitive. The Golf Course uses 103K kilowatt hours for the building and carts, not the pumps. The pool has a geothermal heat pump which extracts heat energy from the ground. The City always considers ways to save energy when replacing equipment. The four -day work week saved $75K per year and 300K kilowatt hours. The City uses about 40K gallons a year in fuel for vehicles. Half the vehicles are gas and the others are diesel. Natural gas was considered, but it did not progress. Mr. Livergood's feeling was that cities were not to produce energy and use it, but rather to save on energy uses, whether it is alternative energy or not. The City's Green footprint is not an engineering issue, it was a policy issue. Vice Chair Grady found one example of a successful alternative energy project in Lawrenceville, New Jersey. A company came in and installed a photovoltaic solar farm, through a lease agreement and sold the power to the power company and then repurchased through the power company at a discount. Vice Chair Grady thought this was a possibility with some of the alternative energies. While Florida Power & Light strives to have more renewable sources of energy, he was not able to get an answer if the landfill became a solar farm, whether the City had to go through the expense to 3 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL - MARCH 10, 20114 establish it, or if a private company would lease land from the City for a set period of time, and sell power to Florida Power and Light. There is much that could be done with energy where the City would not be the producer of energy and where all the technical know-how and maintenance expertise lay with the lease or manufacturer. Mr. Boulos was familiar with a company that harnessed energy. They invested in the equipment, had a long-term contract and harnessed the energy and sold it, and they put the funds up front. Vice Chair Grady also noted much of the current legislation allows for power to be sold back per meter. Individuals may have installed solar panels which drives their meter backwards, but another meter across the way may use a ton of power and the meters are not linked to one meter. The energy producer would receive 10 cents and the energy user is paying 30 cents. There are many complications and the City has much less leverage in the matter than the State. It was also noted that while alternative energy may not be economically viable, it would be effective in reducing carbon footprints which is a policy decision the City must make. • City Services Survey Vice Chair Grady thought the survey would be split between business owners and consumers. Mr. Howard explained the economic development survey was already mailed and he provided a copy of last year's City Services Survey so the members could start updating the questions and identifying which questions were still valid. As to when the survey would be closed, Mr. Howard believed it would be closed next month and he would check on the due dates. The consumer/resident survey is driven, to some extent, by the City Manager. Vice Chair Grady was unaware if there were any specific questions to be included. Mr. Howard was unaware of any. Discussion followed not all the questions would be relevant with the budget survey. The business questions could be removed. After a review and discussion of the survey, the following was decided: • The number of questions would be reduced • The qualifying question asking if they are over 18 years old and if they reside in the City will remain • The survey privacy policy will remain • Question two will have fewer choices in how long they lived in the City • Question three relating to owning a business would be eliminated • Question four would be divided into two parts: asking for their zip code and which area of the City they live in. 4 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FL MARCH 10, 2014 • Question five would request information about the cost of living and housing in Boynton Beach, and generally keep the idea of the question • Question six will be removed • Question seven will add the Utilities, Development and Building Departments and give examples. A larger list should be provided. The question should be reversed • Question eight and nine were budget related for fire and police and were removed • Questions 10, 11 and 12 were removed. • The survey will permit brief suggestions at the end • Question 16 was removed • A question asking the residents about energy and how the City compared to other cities would be added • The survey would be online and hard copies distributed to the Library, Recreation Centers and City Hall lobby • The cover page done by the City will remain Vice Chair Grady agreed to review the survey and make adjustments for a draft for the next meeting at which time the survey can be finalized. Mr. Howard will also email the revised survey to the members. Members in the interim could think about questions. 4. Adjournment Motion There being no further business to discuss, Ms. Schlesselman moved to adjourn. Ms. Stella seconded the motion that unanimously passed. The meeting was adjourned at 7:29 p.m. Catherine Cherry Minutes Specialist 140206 5 6 1. City privacy statement and acknowledgement ' (� w How many years have you maintained a residence in Boynton Beach? (A 2 digit fill -in) 2. Which area of the city do you live in? Located generally west of 1 -95 and south of Old Boynton Road — District 1— Commissioner • _ Etc etc 3. How important are the following city factors to you as a resident? Gantt chart extremely important to unimportant (five choices for each line) City amenities (parks, beach, recreation, library...) Cultural factors Employment opportunities Housing choices City location Schools Trash removal Police, fire, public safety 4. How satisfied are you with these city services? Gantt 5 wide very satisfied to very dissatisfied for each line OR N/A Police Fire Rescue Recreation Parks Library Trash Removal City Hall Landscaping City maintained streets 5. Do you feel the City taxes and user fees are appropriate for the services provided? Gantt 5 6. What is your age? 3 digit fill -in 7. What is your household income? < 30 etc same as q14 from 2013 8. Optional contact info same as q15 from 2013 9. Would you like a copy of the report summary when available by email? Q16 -2013 Collect email address 10. What specific suggestions do you have for improvements or changes to city services? Text box limited to 300 characters.