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Minutes 07-19-16 Budget MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE PROGRAM ROOM AT THE LIBRARY, 218 N. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, ON MONDAY, JULY 19, 2016, AT 2:00 P.M. PRESENT: Steven B. Grant, Mayor Lori LaVerriere, City Manager Mack McCray, Vice Mayor James Cherof, City Attorney Justin Katz, Commissioner Judith A. Pyle, Interim City Clerk Christina L. Romelus, Commissioner Joe Casello, Commissioner. Mayor Grant called the meeting to order at 10:05 a.m. Interim City Clerk Pyle called the roll a.m. A quorum was present. Lori LaVerriere, City Manager, explained she gathered 2014 information from Development and would hear from the Police and Fire Chief for follow up information from Building. Andrew Mack, Development Director, distributed information regarding non - profits requested by Commissioner Casello. Mr. Mack explained he added 2014/2015 numbers to the slide and noted inspections decreased slightly due to projects using a private provider instead of City staff. In general, most figures increased although permit fees were status quo. The figures for 2015/2016 were a projection to September 30th. Mayor Grant thought the big increase was Business Tax Receipts (BTR) and Certificates of Use (COU.) The number of Business Tax Receipts that receive an exemption and do not pay taxes varied from rental properties owned by the Housing Authority, churches and non - profits. Currently, there are 54 total businesses and 97 licenses. Vice Mayor McCray asked how many churches have not come in and learned about a third of them. Previously they did not pay a Business Tax Receipt fee and still do not. The decision at that time was to not come in and fill out paperwork. The process was changed when Certificates of Use and Occupancy were implemented. When non- profits fill out the Certificate of Use, they are also required to submit paperwork for the Business Tax Receipt. Commissioner Casello inquired about the Housing Authority and learned if they own the land and house, and renting, they have to obtain a rental license, but they are exempt under the Statute. They operate as a non - profit. The figures Mr. Mack prepared reflected what was collected to date, and there has been no effort made to make churches come in and submit for Business Tax Receipts. Staff is slowly converting them over as they come in for anything new or for permits. The amount that applied was less than half. Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Mayor Grant asked if it is a Code violation if someone does not fill out the Business Tax Receipt even if they do not owe anything. Mr. Mack explained it was a policy change. When they implemented the Certificate of Use, every business in the City was required to come in, but they have not yet implemented it City -wide and it was only in selected areas. Mayor Grant asked if the City inspects to ensure the buildings are Code compliant and learned they were. Some religious organizations have come in and staff conducted an inspection, which required the Church to make some improvements as part of the process. The Strategic Plan calls for it to be implemented City -wide and there would be some costs. Commissioner Romelus asked about the difference between the number of Certificates of Use and learned there were 632 Certificates of Use issued midyear and the 2,500 was for a full year. There was a gap in the implementation. The Business Compliance Officer will ensure Business Tax Receipts issued match the number of Certificates of Use issued. The City had a Business Inspector but with the economic downturn, the position was eliminated in 2009/2010. Commissioner Casello noted the number of permits was down as was inspections. Plan reviews increased and he asked if it was an indication the economy was recovering. Mr. Mack responded the stats do not indicate so. Inspections were down because projects like 500 Ocean use a private provider and inspections normally done by staff are done by private persons. The City can exceed the projections. The Department may get 200 permits one month and 400 to 500 permits the next month. Mayor Grant had asked for 2014/15 data on citations. Jeff Katz, Police Chief, responded in 2014 the Department issued 13,514 citations and in 2015, issued 5,796. The disparity was due to a traffic unit that conducted proactive enforcement on motorcycles was not in place in 2015. He did not anticipate citations would go as high as it was due to their policing methodologies. Glenn Joseph, Fire Chief, explained the total cost for six firefighters with equipment and benefits would total $385,686. They need three lieutenants at an additional $31,815 for a total cost of $417,501 to fully man Station No. 1. Commissioner Romelus noted they had also asked for alternatives with overtime and learned the cost would be $712,976 per year and it was more cost effective to hire employees than overtime. Commissioner Casello asked if Staffing for Adequate Fire and Emergency Response (SAFER) grants were still available and learned the Department could only apply once and had done so years ago. They need one person on each unit which was six, to run 24 hours a day, seven days a week. The $712,976 for overtime was an overestimate. Some days there would be overstaffing from sick time and vacation. The figure was the top figure. Commissioner Casello asked if there is a potential danger responding to fire calls. Chief Joseph responded there are inherent dangers with the profession. He thought more people in the unit were needed to do the job effectively, but with a Task Force, the short manpower is mitigated. As a Chief he preferred to have the minimum men in each apparatus. 2 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Commissioner Romelus asked how going to the bare minimum occurred. Chief Joseph understood when they opened Fire Station No. 5, some consideration was to close Fire Station No. 1. When the City reviewed the numbers after the decision was made, it was determined it would not be a good idea because it is centrally located, could back up all the other units in the City and provide better service to Briny Breezes. Instead of closing the Station, the City would man it with two employees and two apparatus to have better protection and response capabilities. Commissioner Romelus asked if the Station is less able, in terms of response times, to get to their locations compared to other stations. Chief Joseph responded they narrowed the zone and it is a Task Force that responds to a smaller geographical area than others do. Station 4 is the busiest Station. He would provide the number of calls they ran. Vice Mayor McCray clarified they voted to build Station 5, there was never a vote to close Station No. 1. They still needed station 1 to service District 11. Commissioner Casello commented on the Task Force and thought it was a personnel carrier. They only send the second truck to get manpower to the scene. Chief Joseph agreed. One truck could put out the fire, but they do not have the personnel on that unit to handle all the equipment's capability. Commissioner Casello asked if every two trucks that leave the station is called a Task Force and learned it was not. They send the Task Force for extra personnel because they are short- staffed on that unit. Mayor Grant asked, if fully staffed, if only one vehicle would be sent depending on the vehicle and learned a medical call requires one ambulance with three people. At Station 1 with the Task Force, they would send an Engine and a Rescue unit to get the number of people they need to handle the call effectively. Mayor Grant asked how many times there were medical calls in Station 1 compared to all the calls. Chief Joseph explained when every other station has a medical call, they send one unit. Mayor Grant asked how many times both vehicles go out for just a medical call over the last year or two and thought if very few medical calls in District 11, there is no need for a full staff, but if on a daily basis, it would make sense to hire. Chief Joseph agreed to provide the information. If going to a vehicle crash, they send two or three units depending on the location. A structure fire uses three or four units. Commissioner Romelus noted there is wear and tear and a cost to run the vehicles, which reduces the life span due to over use. She asked if it was more efficient to pay to man the station full time. Chief Joseph explained 70% of costs are personnel. He thought personnel costs versus wear and tear on the vehicle was about 70/30. He preferred to have a full staff to reduce wear and tear on the units, but the resources and the cost of personnel drives the decision. Mr. Groff explained staff would follow up on vehicle costs comparing Station 1 vehicles going to other stations to see the differential in the cost of the vehicles and the equipment. Vice Mayor McCray also requested he be apprised the last time the fire equipment was replaced at Station No. 1. 3 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Commissioner Casello noted Chief Joseph had advised Station 4 is the busiest station, and Station 1 was the second busiest. Chief Joseph had requested personnel in the budget, but was told they did not have the money. Ms. LaVerriere explained she had requests for at least 30 positions throughout the various departments. Public Safety is a priority but they would have to find $420,000 in the budget. Commissioner Casello thought it was a priority for people moving into Boynton Beach. The Fire Department is understaffed and the City Commission has to decide what is important. Commissioner Katz commented this was a top priority for him. There is an optimal number of employees that should be at the Station. He thought it was unacceptable if the station has the bare minimum. There are other items that need funding, but this was a priority. Commissioner Romelus agreed, and noted public safety takes a big chunk of the budget. If the City is going to say they are number one in public safety, they should allocate funds to the right places. She commented funding the positions would lead to cuts elsewhere to balance the budget. Mayor Grant comments he walks by Fire Station No. 1 all the time. Adding the extra positions for a small percentage of Station No. 1 medical calls may not be as effective as having others at the Station. He appreciated the City Commission supporting public safety and proposed to divert funds for a police study for public safety. Utilities Mr. Groff explained the Utility budget is about $60 million of the total budget and is an Enterprises Fund serving about 110,000 citizens in and out of the City. Bevis Piggott, Treatment Operations Manager, explained there was no increase in utility rates. There was a decrease of .14% in total expenditures. They requested two new positions, and reclassified two personnel to meet future needs. They are implementing a revised methodology for transfers to the General Fund and the positions were budgeted. An overview of the divisions in the Utilities Department was viewed. Water quality decreased due to inspections being required biennially and this was the off year. Commissioner Casello asked why meter reading decreased. Mr. Groff explained last year was the last year to upgrade meters, so the budget returned to what the Department would normally spend to maintain the meters. It was a one -time spike over the last eight years. The meters are read electronically, once an hour and the information is transmitted to the City. The Department is looking for ways to bring the information to the customers. 4 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Vice Mayor McCray asked why Customer Relations was down -7.4% and learned it was because of greater efficiencies in the Department. Customer Service would be using third party billing which will save the City money and provide higher quality bills and collections. Every manager has reviewed ways to do the job better with less money. Vice Mayor McCray explained individuals have come to City Hall and report to him they are dissatisfied. Commissioner Casello agreed. The complaints he receives about Customer Service one -on -one exposure is lacking. Mr. Groff agreed and explained they were working on it. Customer Service will have a new policy in place next month for each customer to be treated equally and fairly. Employees received training and they issued a career path to allow employees to improve themselves and move up in their career. The third party billing will free up individuals for further training. Mr. Groff explained many people come in upset because they are late on their bill, the water was shut off or the bill was incorrect. When employees see this every day, they sometimes do not handle it the way they should. He expressed the public will start seeing some improvements. There are several issues they are trying to address and there are several challenges working in a small space with no areas to meet privately with customers to discuss their bill. It is currently discussed in the lobby. The employees are being trained and they will have more people to handle customers so they can spend more time with them. Vice Mayor McCray thought the budget did have to do with customer service. Vice Mayor McCray asked if debt service was from bonds and learned it was. Commissioner Romelus suggested marking the services utilities provides in its presentation that deals with customers and commented it seemed as if they were trying to cut corners to save money. Mr. Pigott explained there was a reduction in total expenses of $59,772, and a reduced need for potable water from Palm Beach County resulting in a savings of $296,339. Vice Mayor McCray asked how potable water agreements with Delray Beach are handled. Mr. Groff explained all the interconnections are billable and if they are sold water, they are billed. If the City purchases it from Delray, they bill the City. They are just reducing the water they have to buy from the County. There was an increase in revenue of $934,270 due to increased sales and customers and they transferred $1,291,104 of surplus to the General Fund. Transfers was split into two components; one, was the fee for the direct costs to the General Fund to support Utility operations of $2,500,000 and the other, was the dividend of ownership of the Utility Operations set at 7.5% of gross revenue estimate of $3,250,000. The information was for better transparency for actual costs. 5 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Joe Paterniti, Utilities Field Operations Manager, explained they reclassified employees in the Department and created a new career path for engineers and utility mechanics. The engineering staff increased to improve response to developers and tighter control of capital projects. Several positions were reclassified for effectiveness and the first group of Utility Field Technicians have promoted through the career paths. Boynton's career path was compared to others and was taking the lead. Additional personnel requests included a Sustainability Coordinator to assist with the ongoing Climate Action Plan that would handle sustainable management of Utility infrastructure and Enterprise Asset Management. The Department also wanted an additional utility field technical positon to handle permit related work in the Stormwater Department. Customer Relations Barbara Conboy Utilities Manager, Customer Relations, explained the City signed a contract with a vendor for high - quality services which they hope to have in place by October 2016. It is difficult to transmit information to the customer and the new technology would put the information in the customer's hands accessible by computer and phone. Bills will be issued in several different ways such as paper, phone, email, and payments could be made over phone, by text and web which would also help with customer interactions. Both parties would be on the same page. Commissioner Romelus asked if testing was occurring. Ms. Conboy explained they are looking at the billing and data to link into the system. The computer interface and integration is in the early stages and staff and the vendor are confident the system can be implemented. Vice Mayor McCray commented they did test it and had issued bills, but there were customer discrepancies. A letter was sent indicating they will get a call. Michael Low, Utilities Technical Services Manager, explained they were working on a Utilities Management Optimization project. The project will integrate several of their functions and aid them in the planning processes allowing staff to set the correct rates and setting up utility service for the long -term as it pertains to investments and reinvestments in the facility. They are updating the Geographic Information System and mapping the 350 underground water lines and about 300 miles of sewer pipe. Once that is complete, they will conduct hydraulic modeling of the water, wastewater and reuse system. They will conduct an assessment of system assets and then develop a long -term Repair and Replacement (R &R) Plan for the Capital Improvements Plan (CIP) which enables the Department to develop a system for long -term rate adjustments. A visual of the project showed water and reclaimed water demands, sewer flows and the processes the City has to have. The second phase is an analysis, to know where to 6 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 increase pipe sizes and to meet development demand. The Department's planning horizon is 50 years into the future. Staff takes the information about development projects needed for utility functions and adds technology to smooth out the flows to avoid expenditure spikes. The information generates the financials and staff can determine if they have to bond, how much is needed for R &R and how it impacts their rates. Staff was attempting to establish a steady income that meets the Department's needs and the customer receiving the best quality service. Mr. Low announced the City's water rates are some of the lowest in the County. The next project is initiating an e- builder which is hosted project management software designed specifically for the client as opposed to the general contractor It will allow one system for design bidding and construction of project. When a project is bid, vendors can submit their responses electronically into the system. It will provide better control of the review of development projects and deal with the flow of information. The system has the ability for other departments to use as the City has an unlimited user license and the Department was looking at other areas and training people on the computer as the program moves forward in the next few weeks. Vice Mayor McCray asked about the new water tanks Mr. Groff responded they were putting artwork in the arches. Chris Roschek, Engineering Division Manager, Utilities, reviewed the following water supply improvement projects: • The East Water Treatment Plant and Raw Water Main on Woolbright Road will bring water to the plant and is scheduled to be done by the end of year. They have fiber optic conduit being installed along the pipeline route to connect the two plants. • The Lakeside NE 20 Avenue is a stormwater project by Seacrest and south of Gateway. The project includes main replacement. The Department recently awarded the Lift Station 309 project and was getting contracts in place and scheduling preconstruction. • Force Main Values project was an existing force main on Congress Avenue. The Department would install values to divert flows to the eastern part of the City. • New laboratory project would be located at the West Wastewater Treatment Plant as water quality is important. Staff looked to renovate the space, due to the HVAC system the cost increased dramatically and staff was looking at other locations for the laboratory for staff. • North and South Road project at Harbor Estates on the east side of Federal Highway was put out to bid and it was a stormwater improvement and water main project. 7 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Vice Mayor McCray asked how to determine if the lowest bidder is the best. Mr. Roschek explained they look at lowest responsive responsible bidder. Price is only one factor. Qualifications are reviewed as well. New projects planned were as follows: • Force main improvements in the northeast part of the City. • Central Seacrest Phase II in the Heart of the City. The City completed Phase I last year and staff was contemplating a design build project. They were putting together the advertisement and hoped to issue the bid in the fall. • Expansion of reclaimed water reuse system. There had been some expansions as there are large users on the east side of the City, such as Little League field, the Cemetery and City Hall, and staff was seeing other users in both the east and west. It is a five -year plan. • Dimmick, Lake and Potter Improvements were stormwater improvements on the eastern part of the City. There were issues with stormwater and they will improve drainage. • Ocean Inlet/Lake /Oak Drive improvements would improve drainage in the neighborhoods. Vice Mayor McCray asked when the cemetery is watered and Mr. Livergood agreed to check. Commissioner Casello thought Utilities was a great department with good management and efficiencies. He noted since Mr. Groff became the Director, the City has expanded its reach to the outer limits of the City. He asked if it helps the residents by expanding past the borders. Mr. Groff explained the City has a service area established by the County 25 years ago and the goal is to maximize the number of customers in that area. The City seeks to provide services to everyone in the service area, but there are private utilities within. As they approach the City, the City assumes their customers. Each added customer lowers the cost each customer has to pay for the infrastructure which each customer pays across the customer base. It stabilized the rates. With 95,000 customers there is peak efficiency. Once more than 100,000 customers, the goal is to grow because there are more expenses including regulatory expenses. The City absorbed private systems last year and there were a few more they are talking with such as Manalapan and Hypoluxo. They are all within the City's service area. Growing spreads out the cost the City pays each month and keeps rates lower. Mr. Groff noted the City has the best rates in the County. Commissioner Casello asked if it would increase operating costs or cause more issues or problems as the system expands. Mr. Groff explained the operating costs are paid for in consumption fees. As customers are added and use water, they pay for the cost of 8 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 the water. The infrastructure is a base cost. It is already in the ground, paid for, not fully utilized. Each new customer that comes on spreads the cost among more people and they share in the base cost of the infrastructure that has to be replaced. Mr. Groff noted utility bills are split into a base fee and a consumption fee, and the City has about 36,000 accounts that service about 110,000 customers. Vice Mayor McCray left at 11:06 a.m. and returned at 11:07 a.m. Mr. Groff explained the Golf Course is an enterprise fund that uses land leased from the County. The City is at a turning point. Last year the course received a subsidy from the General Fund to do some work. This year, they decided to come in with a budget with no subsidy from the General Fund. Ron Tapper, Golf Course Manager and Glenn Landgraf, Golf Course Superintendent, reviewed other courses including successful and failing courses and came back with a plan to make the Golf Course pay for itself. The Mission Statement was to maintain an attractive, well maintained course and to ensure there is long term financial viability. The Links is a certified Audubon Cooperative Sanctuary. The Links holds events at the course, but Recreation and Parks would hold events there and would seek to bring youth programs such as Concerts on the green and Food Truck Wars to expose people to the course. The Links has annual events such as the Keep America Beautiful /UPS Tournament, Play for P.I.N.K., several special groups and the Little Links Team teaching youth to play. The Links also received a Community Tree Planting Grant and 200 assorted trees were planted around the course. Pictures of maintenance at the course were viewed reflecting staff working to plant trees, and sand traps and greens to ensure the course is in good shape. The current condition of The Links is very good, but it was still recovering from devastating rain events that hurt the course. Mr. Tapper explained staff was renovating the bunkers and installed irrigation. Mayor Grant inquired if The Links was using reclaimed water and learned they were not and it was in the County's service area. The Golf Course Administration budget was reduced about $120,000 and management was reviewing Player Assistants who start the course and assist players with clubs and keeping up the pace of play. Most courses use volunteers instead of Player Assistants and those part-time paid positions would be eliminated in favor of using volunteers, who would receive golf privileges. Vice Mayor McCray asked how many positions were cut and learned two administrative positions were cut last year and one pro retired. Mr. Groff spoke to several people who were excited about volunteering. The Links was able to lower equipment and part costs because they entered a lease for Golf Carts which reduced costs. The $60,000 was for golf cart batteries on leased carts, which will be three -years old in December. The Links replaces batteries every two years and was looking to opt out of the lease after three 9 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 years and obtain new golf carts they would not have to install batteries. They already have the line item in the budget. Vice Mayor McCray asked about the cost of golf carts and learned the Links paid $76,000 and own the carts after four years for one dollar. They are maintaining the carts better. Commissioner Casello asked the Player Assistants was the golf pros and learned they were not. They are also called rangers. Staff was also considering instituting a beverage cart. Commissioner Casello asked if the new budget addressed the four full -time pros and learned those positions were funded. The Player Assistants ride around the golf course keeping play moving and do a lot including picking up trash, which volunteers would do in turn for receiving golf benefits. Commissioner Casello asked how many pros a course usually has and learned it was two pros per nine holes and they have four as they are open seven days a week. One pro must open the facility and one must close. The pros also give lessons on their time. It was outside of their 40 -hour work week and there is a policy on that. Staff was looking to make changes in the maintenance budget to be more in -line with what other courses were spending. One change was to reduce a full -time position for greenskeeper. There are four full -time greenskeepers and a vacant assistant mechanic position. Staff proposed to keep the same amount of hours and turning it into part time as other courses operate that way and they can work the hours they need them to as greens keepers have to stay out of the way of golfers while they play. In Florida, golfers play in the early morning so the maintenance hours were just changing from full -time to part-time. If the greens keepers chose to remain with the City, administration would find qualified and full -time positions within the City and have held a few positions for that. Mr. Groff explained the golf course needs new greens. Mr. Landgraf explained The Links and a golf course in Lake Worth have TifDwarf greens which were from 1964. Most courses play TifEagle or Champion Grass known as UltraDwarf which were developed in the mid -90s. The goal is to upgrade to the current standards, but it would be an additional budget item. Mr. Groff explained it would be a 10 to 12 week project. During that time, there would be temporary greens set up and staff could do the project this year. It was anticipated some rounds played would be lost, but they would bring other activities to compensate for some of the lost revenue and they would heavily market the course this winter to see if they could get the rounds up this winter. He noted the economy has improved and golf was rebounding, so they could make up most of the lost revenue and still do the project if they had the funds. The idea is to borrow the funds from the General Fund and pay it back through the rounds played. It is not in the budget this year, but it was one method to get the project done. 10 Meeting Minutes • City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Commissioner Casello asked about the payback schedule. Mr. Tapper explained they bring in 9,500 rounds and greens drive golf courses. New greens could pay back the loan in one or two years. Without the engine, the course would just flounder. Mr. Groff explained the plan was to increase rounds, pay the funds back over three to five years and use other funds to revamp the Clubhouse, cart path and other work. This course has had up to 62,000 rounds played. There was no reason why it could not have 80,000 rounds played and do all of the work and pay it back in five to seven years. The payback plan was similar to the Schoolhouse Children's Museum (SCM). Vice Mayor McCray explained he does not play golf, but Golf Digest announced The Links was the best municipal golf course. He thought they should step up to the plate. Commissioner Casello maintained The Links is a jewel. The workers are friendly, outgoing and are ambassadors to the City. The loan to the SCM was paid back and he was confident this could be turned around. Although they would not fund the course completely this year, it would make a difference in the long run. He favored the pay back program. Mayor Grant asked if there was another funding source. Mr. Howard commented with the financial condition of The Links, it would be appropriate to borrow from the General Fund. He did not think The Links would be able to finance it privately. Mayor Grant thought there were items the Commission may want to fund from the Reserve Account or raise the millage rate. He asked if the Fire Assessment could be raised and learned it could. The Assessment offsets the cost of Fire /EMS calls. Commissioner Casello asked if the City would increase the Fire Assessment and if it could be used for salaries. Ms. LaVerriere explained it could be used for operating costs and fire - related activities. A $5 increase would generate $300,000. Commissioner Katz explained he could support it if it was a structured loan and if it was agreed and assumed if The Links cannot sustain itself after three to five years, a discussion about the future of the golf course would take place. He wanted a consistent plan and favored it, as it would be paid back. Mayor Grant asked about improvements to the clubhouse and learned they have a long term plan consisting of five or six items for a total cost of $2 million. If they get the rounds up, The Links will have the revenue to fund a commercial loan to make the improvements. Mayor Grant agreed with marketing The Links on City vehicles and learned The Links would be part of Recreation and Parks. Staff could improve The Links and be included in Funfare Magazine. 11 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Vice Mayor McCray asked how much money was set aside for marketing and learned the marketing was time and not so much the dollars. The City would market it with utility bills and through events. Vice Mayor McCray asked if The Links advertises in Golf Digest and learned they do not. The biggest advertising is word of mouth. If he puts out a sign indicating new greens were coming, players would come. The Links stopped advertising in Golf Digest, the Golf Channel and many newspapers because it was not quantifiable. The golf channel was over $3,000 a year and there are selected times The Links would be advertised. Mr. Tapper explained he has been at The Links for 16 years and he did not want to appear before the Commission with personnel cuts. If the Commission funds the greens now and it does not perform, the Commission could eliminate his position. He contended the greens are more important and it will bring revenue. Mr. Groff explained courses were closing because they did not keep up with maintenance, but staff would do what it takes. The course is currently successful, but there are needs they have to meet to keep the course successful and growing. Commissioner Romelus liked Mr. Tapper putting all on the line and supported him. She advised there was a rumor the City was closing The Links and they were not. There was consensus the City Commission would make this happen. With equipment, golf carts and the greens, all will fall into place. Mr. Howard reviewed the Commission had touched on the Risk Management Budget and reviewed the General Fund, Water and Sewer, Solid Waste and the Golf Course budgets. Mr. Livergood had discussed Fleet Maintenance yesterday. The Warehouse is under the Finance Department and it orders, monitors and distributes products, supplies and parts. The Self- Insurance fund was briefly discussed the day before about the increase in insurance allocations to the General Fund of $456,000. Commissioner Casello asked about warehouse parts, and learned it is for Fleet Maintenance, office supplies, and Utilities. Self- insurance was $4.6 million. The increase was $787,000 over this year's budget, with the main increase being the Workers Comp self- insured losses had increased about $1 million from last year to this year. It pays the premiums for building property insurance, self- insured costs of Workers Comp and liability claims, the legal costs of the claims and vehicle claims. Vice Mayor McCray asked about the City Employee Clinic and learned it would not be included in in the Self- Insurance, it would be included with the General and Utility Funds and be spread out amongst the funds. Other programs needing a budget was Traffic Safety known as the Red Light Camera. The fines from the citations pay for the lease payments on the cameras, the magistrate and legal costs, not employees as they are paid though the Police Department. The City Commission has to decide if they want the Red Light Camera program and depending 12 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 on their decision, the budget may be revised. The ATS contract has a one -time out clause and the deadline to opt out was by October 1 If opting out, the contract will end in December and if approved, the contract is extended for another five years. Local Option Tax is from the State. Two transfers are made; one, to the General Fund and one, to the Capital Fund. Public Art accommodates the Avenue of the Arts, which also pays for the Public Arts Manager. Commissioner Casello wanted the water tower to be lit at night like a champagne glass. Mr. Groff explained the lighting on the tower needs to be replaced and the City is working with several companies to look at more energy efficient lighting systems that could provide the effect being discussed. The system they are considering could reflect images and others. The Recreation Program Revenue fund accommodates programs such as Aftercare, summer camps and anything that involves payment of a registration fee. Community Improvements run by Octavia Sherrod handles the State Housing Initiative Partnership (SHIP) and Community Development Block Grant (CDBG) program. The Cemetery Fund has income, but the expenditures are for maintenance at the Cemetery and for perpetual care. Debt service accounts for the public service tax revenue which generates the $6 million transfer to the General Fund and payments of the debt service on the public service tax bonds that are outstanding. Mr. Howard distributed a handout. Ms. LaVerriere explained the City adopts a five -year and one -year capital improvement program, but when adopting a budget, staff focuses on the next year's program and the need for capital funding. The City is underfunded to fully meet program needs. The one -cent surtax would be a lifesaver if it passes in November. It would generate $4.3 million for the next five years and fully fund the current Capital Program for $44 million and then allow the City to build the capital reserves to be used after 10 years. This year's needs amounts to $6 million and the City has $1.9 million. She and staff identified $1.9 million as priorities to be funded. If the surtax passes and the City receives revenues next March, she could return to the City and visit the unfunded program needs and amend the budget, but it is unknown if the surtax will pass. There are a lot of needs and the City's focus is park restroom facilities that are in bad shape, Sara Sims Park, the beach and nearly all park restrooms. Mr. Livergood explained the public sees very little of the work involved in capital projects, but they are multi - million dollars projects the City has very little discretion over because the City has to provide services such as wastewater. A $5,000 need at a local park makes an impact on the public regarding how they believe the City is providing services. There is a great deal of discretion regarding the list of capital projects, such 13 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 as sidewalk repair /construction, street maintenance that are essential to provide services. If the streets are in bad condition, emergency vehicles cannot pass. Many maintenance operations such as landscaping can be incorporated into the capital budget so staff has some discretion regarding what to provide for the community. Many capital projects are necessary such as a roof at City Hall that does not leak. Staff needs help prioritizing the list of projects, which was put together by staff and needs the Commission's help to identify what is important to the Commissions constituents. Mayor Grant recessed the meeting for lunch at 11:52 a.m. and reconvened the meeting at 12:20 p.m. Mr. Livergood reviewed the list and explained the first column was the cost associated with an item which would be year one of a five -year plan. There is a total requested program of $6.2 million. The budget could support $1.9 million in expenditures with a carryover of $800,000 of fund balance from the Capital Fund, the Gas Tax, and the Public Service Tax from the State. The $800.000 was the estimate of the money left over from last year which rolls over each year because there may be large expenditures needed in the future. Parks and Recreation Impact Fees could be used for new endeavors in Parks. The City Manager's recommendations totaled $1.897 million. The next column showed there was about $4.3 million worth of projects that staff believes should be funded next fiscal year. Vice Mayor McCray asked about the Local Option Gas Tax and learned there was a six cent and five -cent per gallon the City receives from Palm Beach County. One was by local Ordinance and one by State law. The City is allocated funds per lane miles. Commissioner Casello noted the balance carried forward of $1.9 million was for projects and $4.2 million was needed. He asked if the there was a deficit each year and learned this year was the first time. There will not be a balance carried forward next year. Mr. Livergood explained this has an impact on the General Fund. There is some funding from the Gas Tax and Recreation and Park Impact Fees, but after that, General Fund dollars would be used. Vice Mayor McCray noted years ago they had a five -year plan with each year identified. Capital projects that are not funded goes for funding in 17/18 which makes it harder to do the project. Mr. Livergood advised he was deferring work in the Public Works Compound. The Operating Budget referenced staff was maintaining work in parking lots, but the funds were allocated for interior work and awnings over the entrance. The more they move maintenance to the Public Work Compound, particularly through the Fleet Shop, the more they will need a new fleet shop in the next 10 years. Commissioner Casello asked about the Americans with Disability Act (ADA) program and learned the City has an ADA Plan, and staff was trying to implement the projects 14 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 when it related to work or in conjunction with other work. At the Public Works Compound, it was related to parking. The Plan outlines initiatives and what it would take to complete them. The improvements have to be made at some time, but they need to be balanced with the needs of the community. Vice Mayor McCray asked why Head Start was on the back burner and learned staff wanted to address it next year. The City Commission has to indicate what their priorities are. Mr. Livergood noted the amphitheater needs painting and it is a steel structure which will start to corrode. Commissioner Katz thought most of the monies are allocated to the east side and most of the traffic is on Congress Avenue and the roads take on more wear and tear. Mr. Livergood explained staff is looking at infrastructure as a whole, and identifying areas with the greatest need. Commissioner Katz responded based on concerns he heard, residents are looking for road maintenance on the west side of 1 -95 because they feel taxes are disproportionately applied. Additionally the CRA was an additional source of spending. As a representative of District 1, Commissioner Katz wanted roads and sidewalks on the west side to be maintained. Mr. Livergood pointed out the City has not had a road maintenance program for the last seven years, so every part of the City needs road maintenance. Staff will put together a plan starting with the greatest need. Mayor Grant asked if the budget for Congress Avenue Barrier Free Park was for maintenance or new equipment and learned it was new equipment adding on to the planned expansion of the park. A $50,000 Florida Recreation Department Assistance Program grant would be used and the balance of $150,000 would come from the Park Impact Fee fund. Mayor Grant asked about the HVAC at Fire Station No. 1 and noted the HVAC was changed at City Hall. Mr. Livergood explained the air handling system is separate and they want to change it. Mayor Grant questioned, if the life of Fire Station No. 1 is five years, whether staff should change it or wait in reference to the Town Square. Mr. Groff explained it was included because it has to be done. When the City receives a proposal and they have some dates, they will review it. Fire Station No. 1 could not wait three years for HVAC, but it may be able to wait 18 months. Mr. Livergood explained there were a lot of items in the Capital Improvements Plan for future years for City Hall because maintenance was deferred, but it was approaching the point staff can no longer defer it. If it was a regular City building it would be different, but the Fire Station houses individuals 24/7. Mayor Grant noted the City was adding firefighters at the Station. He asked about painting the exterior and learned painting could be deferred, but at some point even deferring paint can start to harm the building. Mayor Grant commented, if the building was okay, they could defer painting. Mr. Livergood commented at a minimum, the City must paint the sign. 15 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Commissioner Casello asked about the public safety radio system. Ms. LaVerriere responded there was a lease payment for P25 radios that must be funded. Mr. Livergood wanted the West Wing restroom renovation to be included. It is used by the public and needs to be modernized. Commissioner Casello asked what is being done about the roof in the lobby as there has been a lot of talk and a lot of buckets in the lobby. Mr. Livergood explained staff has discussed it frequently within the last 30 days with Attorney Cherof. Mr. Livergood explained there is a warranty and the manufacturer has removed a panel to figure out why leaks are occurring. The vendor and manufacture are actively trying to resolve it. The Hester Center will have lobby work funded as there are drainage issues causing water damage to the interior administrative office. It also needs roof repair over the gym. Staff wanted to address the Oceanfront Park asphalt path as it is hard to walk on, but it was deferred. The Sara Sims restroom renovation should be addressed as it creates a wow factor and families go to parks. Sometimes if you walk into a poorly maintained park restroom, it turns patrons off to the whole park. Vice Mayor McCray queried if consideration was given to a keyless lock and learned staff had considered a lock on a timer, but it is not viable if people prop the door open. Mr. Livergood explained Sara Sims, as a park, needs work and the CRA has a master plan for it similar to City Hall with the Town Square. Staff has to either move forward with Sara Sims Park or set it aside, noting the City will need $500,000 for work on Sara Sims. It was a Commission decision. Vice Mayor McCray commented when ATVs are being ridden at the Park, there is no respect. It is the worst park in the City. He did not want to spend money needlessly and did not know how to control the situation. Staff agreed. Commissioner Casello asked what the difference was between a restroom renovation and an ADA restroom renovation. Mr. Livergood explained normally renovations would include cosmetic work, flooring, changing the lighting fixtures, paint and new mirrors. Due to ADA regulations, they cannot put the equipment in the same place because they are not ADA compliant and additional plumbing and interior structural work is needed. The ADA upgrades cost another $13,000. Staff separated out the ADA renovation costs in the ADA Transition Plan should they get audited. The City cannot afford to do it all next year, but the items are planned and programed, but it would take years. Sara Sims will have a water fountain attached to the restroom building, but the City has to replace a wastewater system eliminating a septic system. There will be handicap accessible sidewalk and ramp. Mayor Grant asked if the City owns all the land by Sara Sims on NW 2nd Street and if it could be used to further the Model Block. Mr. Livergood responded it could, and he would have to run it by the Recreation and Parks Board as it reduces open space in the Comprehensive Plan. It would make the park smaller, but the City could spend more 16 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 money and put nicer amenities into it, rather than have vast open space for ATVs. The land is not deed restricted. The Mangrove Boardwalk was discussed last year. The aluminum board walk built in the 1990s has galvanized pilings. There is a consistent failure in the piers due to the construction technique and design. He did not think the failure would be catastrophic, but if they do not do something soon, it will be closed. Staff started planning for it three to four years ago. Ms. LaVerriere explained the lobbyist obtained funding for the project under a water appropriation, but the Governor vetoed it. There are areas in Mangrove Park that need work including the fence and staff deferred the restrooms as the restrooms there may have 24 people a day as opposed to Oceanfront Park. He thought funds should be spent at Oceanfront Park to provide a public perception the City is doing a good job. Ms. LaVerriere explained she will speak to the City Commission by the end of the year to review the legislative water projects. Mr. Livergood explained there are small projects, and the Capital Plan helps staff plan. Pence Park furnishings included tables and benches. Pence Park was also discussed as a potential reuse as a dog park at the Strategic Plan. It is a multi - purpose play field and the restrooms need work. Channel Markers were in the plan to be addressed this year. Commissioner Casello asked where Edward Harmening Park was and learned it was at the East Water Utility Plant. There is a public art project included with the Utility Plant and the sign will also be painted. There was a lot of discussion about various park signs and Mr. Livergood explained they were very cost effective signs, but many need to be replaced and painted. They are made from different materials so there are different costs. Fire Station 5 (Emergency Operations Center) has a concrete roof deck with a membrane over the deck that was punctured in several places because of the solar equipment and needs a seal coat to preserve the life of the radio system. It should have been done a year or so ago. Mr. Livergood explained when there is a brand new facility, it is important to keep it in good condition as it is new. Fire Station No. 5 has emergency equipment. Staff had already deferred kitchen renovations and a Police CAD records management system was needed. Ms. LaVerriere noted the Department has been asking for it for five years, but it would have to wait. Chief Katz explained the CAD system has two parts. The data coming in to the department is from the Communications Center. The report is written and evidence is integrated into the system. All of the City's Predictive Policing efforts come from the Records Management system. The Dispatch Operator enters the information into the CAD system when a 911 is received and it creates a call slip. If an officer on the street sees something that needs police attention and calls information into Dispatch, the Dispatcher will have to enter it into the CAD system. The City's current CAD system 17 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 was purchased in the early 1990s and it is cumbersome to get from one screen to another. It is antiquated and time consuming. The newer system can share intelligence with other agencies. Boca Raton uses OSSI. If the City uses the same vendor OSSI allows Boynton Beach to share in that information. Criminal intelligence is very helpful. Ms. LaVerriere explained she had hoped to fund this when a new Police Headquarters is constructed. If the Commission takes the funds from Reserve, it will have to be put in the budget for the next seven years. It is expensive, but it is the backbone of what the agency does, and it includes material and equipment issued to personnel, internal affairs and inventory. It would enhance efficiencies. The Sheriff does not use the OSSI system, but the majority of their work is with South County. There is another program the County is working on where agencies are making efforts to share intelligence, but they cannot access it because of the antiquated records management. Commissioner Casello thought it should have high importance. Vice Mayor McCray noted Boynton Beach is the third largest City in the County and thought it should be moved up the list. Commissioner Katz asked if there was a way to fund it in the next one to three years, and with the potential of a bond financing a new station, if they could incorporate the remainder of the balance of the new equipment. Ms. LaVerriere responded it was a recurring operating item and was unsure if bond proceeds could be used. Mr. Howard explained if it is included in the building that was being bonded, the cost comes after the bond is issued and the City cannot recoup previously incurred costs. It might be able to be included in the development aspects. Vice Mayor McCray noted there was an $800,000 carryover and it should be put in place. Ms. LaVerriere explained staff had the $1.9 million in place and would have to adjust some of the line items to replace it. Commissioner Casello asked if it would be better to incorporate the equipment with the building bond. Ms. LaVerriere explained if the City makes a decision to build a Police Headquarters it would. She explained by putting the money back in, they are short on capital and the Commission would have to remove some of the items they were going to fund. Commissioner Casello thought the City should address the bathrooms. Mayor Grant suggested the lobby renovation for Hester Center. Ms. LaVerriere explained there is mold and mildew. Mayor Grant also explained the City has to consider raising the millage rate or the fire assessment due to having to defer items. Commissioner Katz emphasized he had zero intention of increasing the millage or Fire Assessment. Mr. Livergood commented $70,000 was budgeted for the West Wing restrooms. The bathrooms are nasty, but they work. The amphitheater could be deferred. Sidewalk replacement always had $75,000 to $100,000. Mr. Groff explained they are replacing sidewalks as part of utility improvements, but the budgeted funds under discussion were only to replace broken sidewalks anywhere in the City. Last year, staff spent $70,000 on new sidewalks as part of the Central Seacrest Phase I project. Forest Park did not 18 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 have sidewalks going to the school. If they removed the restrooms and used $120,000 of the $400,000, there would be money for a sidewalk replacement project for Forest Park. They City will do 14 12 and 3rd Streets. Commissioner Romelus asked if the one cent sales tax was approved if it would fund the other sidewalks that need to be addressed and learned it would fund everything in the budget, but not the CAD system. Ms. LaVerriere explained she submitted the entire five -year Capital program six months ago which cost $44 million and the surtax would generate $43 million. The CAD could be paid for. Staff recommended the West Wing bathrooms and sidewalks be eliminated to fund the CAD. Ms. LaVerriere explained the projects will be prioritized and bid. The $190,000 was a high estimate for the CAD system. Mr. Livergood explained staff identified $5 million to $6 million next year that is not budgeted and they just deferred $4 million to next year. The current capital year plan staff identified $300,000 for Kids Kingdom and staff pushed it to 2017/18 because they do not know what is happening with the Town Square. Ms. LaVerriere explained there were some failures there and staff was spending $20,000 this year. Staff slowly removed elements that failed in the playground. Mayor Grant opened up Public Comment. Jerry Taylor, 1086 SW 26 Avenue, understood there are two vehicles at Fire Station No. 1 with two persons for each vehicle. When a call comes, some calls could be addressed with one vehicle if there were three people on the vehicle. If another call came, personnel would be dispatched from another station. If dispatching both vehicles, the City is in the same position. He asked why not add a third person to the first vehicle. Chief Joseph explained they put two units together so that when they leave the hospital after dropping a patient off, both units are back in service. If there is one person at a station, they are completely out of service and no response can occur. Either way it takes longer to put the second unit back in service than if they were following right behind each other. Mr. Taylor asked if there are situations when only two people are needed. Chief Joseph responded the standard in Palm Beach County is to send three people to a medical call. If three people are sent, one unit is still out of service until the other unit comes back in- house. Mr. Taylor explained they were out of service anyway because if both vehicles are sent, there is no one left. Mr. Taylor was encouraged there was agreement to go forward with the greens. He is an avid golfer and commented if the greens are bad, golfers do not return. The Links is a great asset, but the maintenance equipment is 20 and 30 years old and they have to get equipment. The Links, over the years put money into the General Fund. He thought past management was so enthralled about putting the funds into the General Fund, it was not maintained. Most golf courses contract maintenance out, but the City does in- house and saves a lot of money. He hoped the City would go forward. 19 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Herb Suss, 1711 Woodfern, agreed with the comments and thought the City has to address the bathrooms and thought it was a public health risk and a bad mark for the City. Years ago, prior Commissions reduced the millage rate and he opined that was what put the City in trouble. It does not work because as time goes on the City will need more money. Staff has to maintain the City to attract businesses and people and provide services the people expect. He favored keeping the Police, Fire and Sanitation Departments. Citizens have to pay the millage rate whether they like it or not and he suggested it be increased up to 8.1 or 8.2. A rate of 8.1 mills is a million bucks. He cautioned the Commissioners not to be short sighted as citizens are becoming impatient waiting for the downtown and the City was throwing good money after bad at City Hall. The City needs a Police Station and has to maintain what they have. Mr. Suss supported the one cent tax, and commented a capital budget at $6 million is not enough. He suggested raising the millage rate because it could always be lowered. Residents in the City have to realize they have to pay for their services. He does not want to pay more taxes, but commented the City will be in serious trouble with the public. Susan Oyer, 140 SE 27 Way, thanked Utilities for providing 23% of the City's revenue and asked if non -city residents receiving City water pay more than the residents and learned those in unincorporated Palm Beach County pay a 25% surcharge. If the resident lives in another municipality, the City negotiates the rates. Ms. Oyer noted her neighbors do not recycle and she requested the Sanitation Department conduct outreach to the residents. She asked if the Automobile Vehicle Locator devices are being used to avert terrorism and learned they were not. She asked, in reference to the OSSI upgrade, if the City considered moving ADA bathroom renovations back a year and thought students conducting community service and Kiwanis or Lions could sponsor a bathroom or address them as a community service project. Lastly, she asked if the Police Department is moved to another part of the City, what will happen to the south end of the City as she likes the response time. She thought they would not be serviced properly. Chief Katz commented the Police Department does not deploy from the station. Officers are deployed from different geographical locations through the City and the level of service would remain status quo. Harry Woodworth, 685 NE 15h Place, was in public safety and communications and was appalled they were using a DOS based CAD system. He thought deferred maintenance is an expense and the list of needed items grew. As for golfing, a friend of his remarked to him the greens are awful. He suggested, it the one -cent surtax to generate $4 million a year is passed, the City publicize the list the Commission had as the rest of the community does not have a clue. The County did a horrible job of publicizing what they need the sales tax for and thought the tax would not pass unless citizens know what it is for. As to raising the millage, he did not think residents would mind a small increase, but there is no credibility due to the pension problems. He understood the City was paying more in pension costs than salaries. He commented 20 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 raising the millage when the City will not fix what is draining the budget is zero. Money is leaking down the pension hole. Commissioner Casello commented the City Manager was hiring an actuary to review pension reform. No one else coming forward, Public Comment was closed. Ms. LaVerriere explained the City Commission has to review the following items and consider if they want it in the budget: the License Plate Reader (LPR) $60,000; Police Feasibility study at $75,000; six additional firefighters $420,000; new greens loan has to go on the list for $300,000 and one item that was not discussed is the medical clinic. Mr. Howard issued an RFP for an employee medical clinic. It is under evaluation in the Procurement Department and a recommendation will come to the Commission in August for further discussion. He requested it be discussed then and staff could make needed adjustments in September at final budget adoption. Mayor Grant asked if there was anything in the budget currently. Mr. Howard responded there was nothing currently in the budget for the clinic start up. What is in the budget are costs associated with services that would be moved to the clinic such as physicals. About $250,000 would be moved in the budget, and there may be a need for additional cost for start-up. Commissioner Casello wanted to remove the study for the Police Department from the list of items to be funded. His intention was to compare the services. His intent was not to go to the County. He believes in public safety. Motion Commissioner Casello moved to remove the Police Feasibility Study from the Palm Beach County Sheriff's Department from the list of funded items. Vice Mayor McCray seconded the motion. Vote The motion unanimously passed. Commissioner Katz hoped that freed up money for the allocation of funds for the six additional firefighters. The $420,000 would either be pulled from additional fund balance or by raising the fire assessment rate by $5 per household and incrementally for institutional facilities. Commissioner Casello asked if the Commission could consider raising the fire assessment fees next year and learned they could. Vice Mayor McCray was not in favor of raising the fire assessment, but he would pull out the funds Ms. LaVerriere listed. Commissioner Romelus asked how the City's Fire Assessment compared to others and learned the City's was low compared to Broward County and there are only a handful of other cities in Palm Beach County that have it. It has not 21 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 been surveyed in Palm Beach County. Broward municipalities fully fund the Assessment and they could go to 100% funding. The City is at the 60% or 70% range. Mayor Grant asked why nursing homes use the institutional rate. Mr. Howard thought it may have been due to a lawsuit. Mayor Grant asked what the difference was between raising the Fire Assessment by $5 as opposed to the millage. Mr. Howard responded it is the same amount of money but it affects people differently. Fire assessments are non -ad valorem and it is a flat amount as it is not based on property values. The millage rate is a dollar value of assessed property values. There is no homestead exemption for a Fire Assessment. People with lower property values would pay the same dollar amount. The theory with the Fire Assessment is to reach the population that are users of fire services, but pay little or no property taxes. If the City increases the assessment, the City has to notify everyone. Ms. LaVerriere pointed out rate scenarios with the Fire Assessment rate resolution were provided. There was consensus to use General Fund reserve monies to upgrade the greens at The Links with the stipulation to pay it back. Mr. Howard explained the process to be followed. Commissioner Casello noted the greens are time sensitive and he requested it be expedited. A plan will be put in place tomorrow. Mayor Grant favored the LPR be funded by a .1 millage rate increase to 8.0 mils. Commissioner Katz commented they have not included anything from the Strategic Plan, except for the greens. Ms. LaVerriere commented the only items with a monetary impact was the pocket park in the CRA, Boynton Beach Boulevard construction was funded through the CRA, the feasibility study was removed and the medical clinic. The millage rate at 8 gave leeway with additional firefighters, the clinic and the LPRs may be included in the CRA budget. The 8.0 would allow the City to do more than last year. Commissioner Casello favored a fire assessment increase. Increasing the millage would not be fair to someone with a more expensive home. Mayor Grant agreed to put both on the table and gather input from residents. Commissioner Romelus expressed she was disenchanted the City was taking from Peter to pay Paul. The City is in competition with neighbors to the south and Boynton Beach is operating with half a budget. She asked how they could fund the projects and it did not make sense when deferring things down the road. Ms. LaVerriere explained they build the tax base and get it off the backs of the residents, which is why commercial development and redevelopment is so important. The City gets pummeled when trying to make improvements. Ms. LaVerriere explained staff shares the frustration. The City cannot satisfy everyone and she was pleased to see the public listen to these conversations. It is expensive to run a City and have police and fire services. The Delray Beach budget is $61 million and Boynton's is $30 million because the City has a much smaller commercial base. There are challenges to redevelopment, but the City's savior is redevelopment. 22 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Commissioner Romelus thought that was why the City has to be open to change as there are issues the City faces year after year, where the City cannot fund the budget or afford the needed number of firefighters to provide public safety. The City is the third largest city in the County and has half of the budget compared to their neighbors and it needs to be fixed. Commissioner Katz advised he would not raise taxes and noted the City was asking the citizens to approve the one -cent surtax and they are discussing the Town Square redevelopment, which is another tax increase. The headline will read Boynton raised taxes. Then there will be a bond issue. He thought the Commission could not ask people to keep voting as there will be several tax increases in a row. He did not want to risk the tax they will have to use to bond the Town Square and Fire and Police of over $400,000. The citizens will view the Fire Assessment as a tax. The LPR was $60,000. The City could chip away at the cost of the firefighters. He thought if the City was going to raise taxes, it would be a discussion for next year after a lot of the issues were discussed. Commissioner Romelus noted Delray just decreased their millage rate. She understood the headlines will paint the City in a bad light. Commissioner Katz explained when 500 Ocean goes online, the City is in a good position to cautiously wait as there are larger looming projects. Vice Mayor McCray agreed with Commissioners Katz and Romelus. Commissioner Casello commented the items agreed on have a price tag and they have to decide to pay for them through a Fire Assessment or the millage. Commissioner Katz favored eliminating the readers and study and with the pending revenue sources, the Commission will have a much clearer picture of what the City's needs are. He did not want to be in a position to raise taxes and then receive the surtax. He would rather go to reserves and if they have to raises taxes next year, they could. With pending income from other sources, he wanted to wait. If other revenue is received, it would cover other expenses. It would be more palatable especially if the surtax is not approved. Commissioner Romelus agreed. She commended staff for their work, as they have maintained the level of services. She did not think it is smart or fair to ask too much from the public. She thought the Commission could do more and they could consider other ways of funding priorities. Commissioner Casello commented history has shown the City has put money back into reserves. Commissioner Casello agreed with Commissioner Katz and commented if monies are put back into the reserves at the end of budget, he could go along with borrowing to fund public safety and as other items come on line, it would be a self- correction. 23 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Motion Commissioner Romelus moved to approve the millage rate at 7.9 mills. Commissioner Katz seconded the motion. Vote The motion passed 4 -1 (Mayor Grant dissenting.) Adoption of Preliminary Proposed Millage Rate Resolution Attorney Cherof explained the Commission needed to adopt R16 -092, which adopts the proposed municipal millage rate for general operating and budget purposes for fiscal year 2016/2017 with the stated roll back rate, setting for the date, time and place of the first public hearing and providing for severability, conflicts and an effective date. Based on the prior motion, the proposed millage rate is 7.9000, the roll back is 7.3816 and the first public hearing is September 8, 2016 at 6:30 p.m. in City Commission Chambers, City Hall, 100 E. Boynton Beach Boulevard, Boynton Beach, Florida. Motion Vice Mayor McCray so moved. Commissioner Casello seconded the motion. Vote The motion unanimously passed. Ms. LaVerriere explained the Commission will remove $1.14 million from reserves to balance the budget. As a City Manager, she commented it was not a good idea. Staff has had these discussions with fire personnel for the last three years and that was why the City has not increased staffing or added six firefighters. It is not unsafe as the Department has been operating in modified status for years. Her recommendation would be to not fund those positions. She explained the $1.1 million from reserves was a lot of money to fund recurring operating costs. The proposed budget stood at $426,000 to balance the budget, plus $420,000 on the firefighters and $300,000 would pay for the greens which will be refunded back. Commissioner Casello noted the Fire Chief commented it poses a risk for employees on the truck. There is an issue and a problem, and it is an expense the City must incur. He supported it. Attorney Cherof explained the City Commission needed to adopt R16 -093, Preliminary Fire Assessment Rate Resolution which he read. Rates will be residential at $100 per 24 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 dwelling unit, commercial at 23 cents per square foot, industrial warehouse at 5 cents per square foot, institutional and nursing homes at 25 cents per square foot. Motion Commissioner Katz moved to maintain the fire assessment. Vice Mayor McCray seconded the motion. Vote The motion passed 4 -1 (Mayor Grant dissenting.) Commissioner Katz commented if the Commission chose to raise the fire rates next year, the recurring costs could be remedied. He hoped that revenues would increase so they would not have to do so. Eleanor Krusell, Communications Manager, advised due to increased transparency, the City has been filming the budget hearings and yesterday's budget hearings was available on BBTV for the public to view as well as being on the website. Staff has been tweeting, and Facebooking all the presentations on the website and social media. The Town Square presentation is also on the website and social media. They were trending hashtags for Boynton Beach Budget Workshop 1, Boynton Beach Budget Workshop 2 and Boynton Beach Commission. Attorney Cherof advised there are two public hearings in September and at that time the public will have the opportunity to speak and ask questions about the millage rate and the budget which means comments and questions to staff may be asked. Motion Vice Mayor McCray moved to cancel the next budget meeting. Commissioner Romelus seconded the motion. Vote The motion unanimously passed. Commissioner Casello thanked staff for their work and commented every year staff comes through. Motion Commissioner Casello moved to adjourn. Commissioner Romelus seconded the motion. 25 Meeting Minutes City Commission Special Meeting Boynton Beach, Florida July 19, 2016 Vote The motion unanimously passed. The meeting was adjourned at 2:12 p.m. CITY OF : *YNTON BEACH ayor - tey ) . Grant ice . 4 % - .;k\ M& Commission= - Jus in r atz -141411 /1 ommission: - C ristina Romelus Co missioner - Joe Casello ATTEST Ju A. Pyle, CMC In frim City Clerk d%ttt.(A I/W.() ( Catherine Cherry • Minutes Specialist 26