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Minutes 06-23-14 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD IN THE CITY LIBRARY CONFERENCE ROOM A 208 S. SEACREST BLVD., BOY ON BEACH, FLORIDA — ON MONDAY, JUNE 2, 2014, AT 6:00 P.M. PRESENT: Steven Grant, Chair Tim Howard, Finance Director Fakhry "Ed" Boulos Dolores Schlesselman David Yankovich ABSENT: Christine Stella 1. Call to Order Chair Grant called the meeting to order at 6:10 p.m. Roll call established a quorum was present. 0 Introduction of new member David Yankovich. Chair Grant introduced David Yankovich, who gave a brief presentation of his background. Mr. Yankovich served in Ohio on a citizen advisory board for three years. He is currently the Manager of Grants and Government Relations with 2-1-1 Broward, a non-profit agency. He previously conducted Navy Intelligence and is working on his college degree. e Approval of April 28, 2014, Minutes Motion Mr. Boulos moved to approve. Ms. Schlesselman seconded the motion that passed unanimously. 0 Approval of May 12, 2014, Minutes Motion Mr. Boulos moved to approve. Ms. Schlesselman seconded the motion that passed unanimously. Meeting Minutes Financial Advisory Committee Boynton Beach, Florida June 23, 2014 Other Business • Updated Committee List Mr. Howard distributed the list to the members. • City Services Survey — Summary Chair Grant commented the survey response more than doubled from last year in less time. Mr. Boulos and Ms. Schlesselman noted comments regarding fire and police services may have been skewed. There were many comments related to Public Works and citizens wanted improvements in landscaping and green areas. Mr. Howard explained the survey results are summarized when they are presented to the City Commission. • Map of Vacant Lots - District I,II,III,IV Chair Grant reviewed maps of the vacant lots. It was mentioned the CRA owns some of the lots and would be purchasing a few more. Mr. Boulos noted recent articles about the CRA purchasing lots and their strategic plan. • Review of Committee Member recommendations Mr. Howard advised he had emailed former Committee Member Jeff Grady to see if he had any recommendations ready for the Committee to consider. His response indicated the vacant lots Mr. Grady had were small for easements and such. Mr. Grady had no recommended continuing a good maintenance program. One large lot being considered for City infrastructure was near the Quantum fire station. The old landfill is not adjacent to the City, so harvesting solar electric there would not be feasible at this time. Mr. Boulos reported on the seven vacant lots located along 8 th and 10 Avenue. He recommended land banking the properties and constructing single - family homes. He noted builders were willing to construct Section 8 Housing there if the land was donated. Mr. Yankovich recommended, if Section 8 Housing were constructed, landlords attend a mandatory Section 8 class to become certified. Mr. Boulos noted it would add to the City's tax base, but it may take over 10 years to recover the original investment. Chair Grant requested a vote on Mr. Boulos' recommendation to allow builders to develop the lots. The members voted unanimously in favor of the recommendation. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida June 23, 2014 Ms. Schlesselman reviewed FPL Park is a 4.7 acre Park. Her recommendation was to keep the Park status quo. She noted the Park provides a natural sound barrier to the residences. Access to the park is limited to one small road and it would not support an increase in traffic. A con to developing the Park was a possible interruption of the City's Greenway /Blueway project. Although the site could support development, the location made it undesirable for residential and commercial development. If converted to industrial zoning, the impact would be too low to gain a return on the tax base and offset the price of creating the infrastructure. If the Park was developed, residences may have a diminished quality of life and /or property values. Chair Grant requested a vote on Ms Schlesselman's recommendation to keep the Park status quo. The members voted unanimously in favor of the recommendation. Ms. Schlesselman reported Wilson Park was 5.44 acres and recommended the Park remain status quo. In 2007, they remodeled the Park, built the John Denson Pool and renovated the building. The Park has the only public pool and ball park within walking distance of nearby residences. The downside to the Park was it was rebuilt six years ago and there could still be an assessment to see if the Park can improve safety near the canal area, as the entire north border is a canal. Chair Grant requested a vote on Ms. Schlesselman's recommendation to keep FPLPark status quo. The members voted unanimously in favor of the recommendation. Ms. Schlesselman reviewed her Tots at 116, 134, 144, 154 NW 11 Avenue and on the corner of 1 1 th Avenue and Seacrest Boulevard, that are in a row. Her recommendation was to continue with the CRA Plans with modifications. There are two other nearby Tots next to an elementary school, making them more desirable for residential building as opposed to commercial /industrial. Modifications should be considered to allow the City to sell multiple adjacent parcels and collect full taxable value on assessed value, and land sales should be approved using the best offer. There could be a loss of revenue if the project did not come to fruition. There would be prolonged maintenance expenses, the loss of ability to sell all of the land if small pieces were left after lots were sold, the loss of opportunity to sell land if no large scale development plans were made for the area by private investors, and the Toss of ability to develop the area as a commercial zone. Ms. Schlesselman read from the Heart of Boynton Plan regarding the Model Block. Her recommendation was based on many components of the Plan moving forward. Some were based on the Ocean Breeze project. Comments were made that some people considered the homes undesirable because the purchase did not include the land. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida June 23, 2014 Chair Grant thought there was the opportunity for commercial development because of the proximity to the pool since there was already enough housing in the area, and commercial development might be a better option. Brief discussion followed about the intensities of development. Ms. Schlesselman commented her lots did not abut MLK Boulevard. Mr. Howard commented the CRA was trying to acquire contiguous lots for developers to construct residential development. The CRA has assembled a lot of land and was preparing to acquire another two or three lots very soon. The recommendation was the project should continue, but the plan be changed so the land is not City-owned. Mr. Howard explained the existing Model Block program was a program to construct homes on City-owned land. Ms. Schlesselman's recommendation was to move the project forward, but to sell the land with the house. With the present land trust, the homes have a 99-year lease. The recommendation was the City Commission follow the CRA Plan, but to sell the land with the house. The members voted unanimously in favor of the recommendation. Ms. Schlesselman reviewed the City's Water Conservation Plan. Her recommendation was to complete the water conservation actions in Section IV of the Climate Action Plan. The recommendation would result in a long-term reduction in utility expenditures and increasing the longevity of the utilities' resources by reducing strain on them. Funds would not be available for other expenditures. The City may invest in an upgrade before a technological breakthrough became available or before obtaining possible outside funding. Each year, the Utilities Department makes transfers to the General Fund. If there were increased revenues, funds for other projects would be available. Ms. Schlesselman's recommendation included reducing the amount transferred to the General Fund and the services subsidized by the General Fund remain at the status quo. The impact on next year's budget was the same as this year's budget. As water conservation actions were completed and transfers from the Utilities Fund to the General Fund resumed, or as City revenues increased, funds for projects subsidized by the General Fund may also increase. The Legal Department would have to review water conservation ordinances to implement water conservation measures. An increase in support staff may be needed. If there were rebates or incentives, some citizens may see a reduction in their utility bills; however, they may see an increase in remodeling expenses and fees. She noted one action in the Plan was a tiered water rate. Those who conserved water pay one amount. If they used more, they would pay a different amount. Mr. Howard explained 4 Meeting Minutes Financial Advisory Committee B oynton Beach, Florida June 2 3, 2014 there is a base rate and a different rate for amounts over the base rate. There were also watering restrictions in place. Ms. Schlesselman further pointed out many of the initiatives in the Climate Action Plan were completed before the Plan was finalized, but many initiatives did not achieve maximum potential due to lack of funding. In June 2014, the City enacted an energy rebate ordinance to refund expenses to citizens and businesses that make energy improvements to their structures. Funding for the program is from a designated revenue stream; however, there is no similar program offered by the City for water conservation improvements. Additionally, the City is co -owner of the South County Regional Wastewater Facility and would have to work with Delray Beach, the County and other organizations to ensure the facility provides reclaimed water to all customers. Currently, the facility treats 35 million gallons of wastewater per day. Her recommendation is to complete Section IV of the Climate Action Plan to achieve its maximum potential. There were no objections to the recommendation. Mr. Boulos reviewed his task regarding solar energy and he recommended converting 100 street lights in the Downtown to solar energy and getting businesses involved in the effort. He thought the City should ask for donations from local establishments and gauge how much interest there is in the program. Mr. Howard noted donations may not be possible. Mr. Boulos explained the City owns 50% of the poles in the Downtown area. The benefits of the proposal were it would make the City unique and give more visibility to the area. It may also attract tourism and businesses interested in green energy. There was a transfer station already located Downtown that could be used. He pointed out implementing this solar energy project would not save money. The definitive costs have not been determined. Mr. Boulos commented his topic had been discussed in the past and his recommendation was to convert the 100 light poles in the Downtown to solar energy. There were no objections to his recommendation noted. The budget hearings would be held on July 21 and 22 in the Library. Each department head reviews its budget with the City Commission. The Financial Advisory Committee would be one of the first presenters and would make a presentation on the Budget Survey and their recommendations on the vacant lots, energy conservation and non - profits. Mr. Howard commented the final report on the Survey and comments, and the recommendations would be presented in a packaged format similar to the one used last year. Members would review a draft packet at the next meeting and were requested to send their forms in Word format to Mr. Howard and he would have them ready. 5 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida June 23, 2014 Ms. Stella's recommendations needed to be submitted and Mr. Howard agreed to email her about it. • Adjournment Motion Mr. Boulos moved to adjourn. Mr. Yankovich seconded the motion that unanimously passed. The meeting adjourned at 7:28 p.m. Catherine Cherry Minutes Specialist 071014 6