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Minutes 07-17-18 BudgetMINUTES OF D+ WORKSHOP HELD ON JULY 17,2018, AT 12:00 M.M., AT THE B BEACH LIBRARY, PROGRAM ROOM, 208 S. SEACREST BOULEVARD BOYNTON BEACH,FLORIDA Steven B. Grant, Mayor Justin Katz, Vice Mayor Christina Romelus, Commissioner Mack McCray, Commissioner Joe Casello, Commissioner, (arrived 10:45 a.m.) Mayor Grant called the workshop to order at 12:02 p.m. The members recited the Pledge of Allegiance to the Flag. Roll call revealed a quorum was present. Lori LaVerriere, City Manager James Cherof, City Attorney Judith A. Pyle, City Clerk Commissioner McCray thanked City Manager Lori LaVerriere for information requested the day before, but advised it was not what he was looking for. Ms. LaVerriere agreed to sit with him on exactly what he wanted and commented She gathered information on five or six of the items and would continue to gather the rest of the information and forward it to him. Andrew c , Director Public Works, commented the Department was proposing an 8.8% increase due to employee benefit costs; the hiring of two new heavy equipment operators; anticipated increases in waste disposal fees; an increase in cart/container replacements; an increase in vehicle service costs and materials and inflation; and a $100,000 increase for contractual services due to closure of the landfill. Department successes included an online payment system for customers. Challenges the Department faced was truck/equipment failures and staffing. The Department extended the life expectancy of the equipment during the recession and there have been call outs and employees utilizing FMLA, which resulted in some equipment not being manned. There were also difficulties with fee payments for roll -off services. Mr. Mack wanted to change the business model to collect the fee up front, as opposed to in arrears. Illegal dumping and litter is a problem. If the Solid Waste crew is called off their routes to pick up debris, it impacts City collection schedules. The Solid Waste reserve balance will be a future discussion. Department initiatives included a Solid Waste Routeware system utilizing Automatic Vehicle Locators (AVLs) to collect real time data on the location, speeds and status of the vehicles and rebranding Solid Waste vehicles with the blue sailfish logo. Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 Commissioner McCray asked about the implementation of the online payment system and what type of payment the Department receives. Mr. Mack explained roll -off payments are usually paid through the mail by check or at the cashiers. Now customers will have to come to the office and pay online. Commissioner McCray asked how much money was lost due to this method. Mr. Mack did not know the yearly amount, but commented the City lost about $100,000 over the last five years. Commissioner Casello asked who was responsible for payment when the container is dropped off and learned it could be the contractor's responsibility or sometimes the owners. He asked if a lien could be placed on the property. Mr. Mack explained currently, the Ordinance does not allow for a lien, but most private carriers handle payment electronically upfront. The individual orders the container online and provides payment information whereas the City bills monthly. Commissioner Casello noted the City Commission had also discussed wrapping the trucks to advertise the City's amenities such as the marina, golf course, and other features. Mr. Mack advised they will look into advertising and marketing the City noting some of the vehicles were better suited to do so than others. Vice Mayor Romelus inquired what was being done to ensure containers are screened. Mr. Mack explained they have been obtaining feedback from Community Standards and other supervisors about pickup schedules and when trash should be put out. They will start to issue courtesy notices and then fines, and the department will meet with various HOAs. Mr. Mack commented any time there is an unenclosed dumpster, illegal dumping is a problem. Currently, there is no ordinance to retrofit dumpsters, but Mr. Mack commented it was difficult as space can be tight. Additionally, some older neighborhoods were grandfathered and access would be difficult for the trucks. He pointed out dumpsters could be painted. Staff was working to educate customers where to dump. He also had some ideas for temporary dump stations. Mr. Mack noted the City has a vendor that picks up trash in the City they call when needed as well as sending staff. Commissioner McCray did not favor the temporary community roll -offs as it would invite people to come into the City to dump. Commissioner Casello asked if the roll offs are picked up on a scheduled basis and learned the owner calls for pickup when it is full. Staff was also looking at a base rental fee for the containers. Commissioner Casello asked if the City has prosecuted individuals for illegal dumping. Mr. Mack explained the most effective way to determine where the illegal dumping came from was to review the contents of the trash. It was discussed with Community Standards and they do pursue individuals when the source is identified. Mayor Grant noted the biggest fees are for waste disposal and asked if waste management was the same as solid waste. Mr. Mack agreed to research the difference and send it to him. Mayor Grant also noted there was a 10.4% Solid Waste transfer to the General Fund and asked if it would increase or decrease over the years. Ms. LaVerriere explained the Department had always been able to transfer $1 or $2 million, but this year, as in the past few years it was substantially reduced. Mayor Grant noted there was $6,000 for printing and binding and asked if the City could include elementary 0 Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 schools outreach regarding recycling programs and incentives for commercial recycling this year or next. It was explained the City is not charged for recycling, but is charged if there is trash mixed with recycling. Mayor Grant also received several calls and emails during the hurricane about using an email database for notifications. Recreation and Parks uses one, but citizens were concerned about Solid Waste. Information about different collection times during the holidays and about disposal of tires, lithium batteries, electronics and textile recycling could be sent instead of just posting the information on the City's Webpage so the City can work with local partners to ensure recycling is widely used. He pointed out Broward County eliminated their recycling program because they did not put enough effort into it. Mr. Mack explained they went to Crosspointe Elementary and had the Solid Waste and Recycling trucks there and received great press about recycling. Stephanie Brown, Customer Service person, handles the recycling program and she conducts a lot of outreach to commercial and residential entities. The Department was looking at new software to help enact these programs. It was hoped next year they could increase the City's recycling and outreach programs. Mayor Grant hoped all the schools would be included. Mr. Mack commented residents pay for the solid waste budget. Commissioner Casello asked if there has been talk about privatizing Solid Waste and if it would be feasible. Mr. Mack explained it had been discussed once and there are pros and cons. The City loses control when it outsources and at one point, the Solid Waste fund was robust and transferred money to the General Fund. If privatize, those funds would be lost and Solid Waste has a lot of employees. Vice Mayor Romelus asked how many employees would be impacted. Mr. Mack explained there are 46 Solid Waste workers. Commissioner McCray commented, in regard to privatizing, Delray Beach privatized and later was unhappy. It had been discussed in Boynton Beach, but the City said no. Mr. Mack reviewed the Capital Improvement Plan, which included city-wide paving and sidewalks, including sidewalk additions as part of the Central Seacrest Phase II project. He noted sidewalks are repaired on a priority basis, and the majority of the construction will be completed by a new continuing service contract. Funds were allocated for ADA ramp replacements and street resurfacing. The Engineering Department is finalizing the bids and the locations will be prioritized based on pavement conditions. Commissioner McCray asked if all City facilities were ADA compliant. Mr. Mack explained in 2010, a consultant was hired to audit all City buildings. They gave a report reflecting there was $5 million worth of work the City had to do, so they incorporated the work into the CIP and each time they undertake a project they resolve the ADA issues. Commissioner McCray wanted a copy of the report and for Ms. LaVerriere to review it and report how much was non-compliant. Commissioner Casello thought the City got extension on some ADA projects and learned the City adopted an ADA Transition plan, which is a phased plan. He pointed out the City spent $100,000 for a few bathrooms at City Hall and ramps and in a few months it will be demolished. He asked if the City could have requested an extension. Ms. LaVerriere 3 Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 responded they could not because it a HUD requirement due to Community Development Block Grant (CDBG) funding the City receives. When receiving CDBG, the feds come in and inspect, they looked at City Hall and they had to make all the improvements. Sara Sims Park was budgeted for $776,000, which was a joint project with the CRA. Improvements included new restrooms, pavilions, paving and concrete, water sewer drainage, landscaping, irrigation fencing. The project is broken into five components to accommodate local business participation. Ezell Hester had $617,000 for upgrades that encompassed pathway repairs, ADA modifications, painting the pavilion and bathrooms, replacement of scrub border fence, conversion of baseball field to a multi -use field, irrigation replacement and HVAC replacements. Oceanfront Park improvements included parking lot lighting, seal coating and restriping, playground design and replacement, shade sail replacements and a new stair retaining wall to improve access to the different beach elevations. Mr. Mack noted the shade sail replacements were not replaced by the solar canopies. Vice Mayor Romelus inquired what the cost savings from the shade sails were and what was spent. Mr. Mack advised the quote to replace just the shade sail was $53,000 and the City probably saved over $150,000. Mr. Mack reviewed the improvements to Meadows Park included the refurbishment and painting of the inside and outside of the bathroom, fitness trail equipment, park furnishing replacements, playground equipment, sidewalk path replacements, ADA upgrades and parking lot seal coating and restriping. A list of the 302 General Fund projects was reviewed as contained in the meeting materials. The City-wide Public Radio Service maintenance and Electronic Plan Review maintenance payment was carried over from this fiscal year to next fiscal year as was the CAD Records Management System, and Golf Course project. Commissioner McCray asked about the work order process and thought it took too long for repairs to be made. Mr. Mack noted there were three lights that were out. Mr. Mack texted the facility project manager and they put in a work order. He noted work orders are prioritized to address the most serious issues first and some are outsourced depending on what it is. If outsourced, it has to go through the procurement process. This year, the City will shortlist three contractors to handle minor construction projects up to $185,000 Doing so would streamline and expedite the process as well. The City will also utilize its continuing service contracts and was looking to have more continuing service contractors for various other services. The City has to procure bids for roofing inspections and minor roof repairs depending on the type of roof it has, but this year, Mr. Mack wanted to outsource the roof inspections and have vendors on call for the inspections or roof repairs. Some work done by staff could be improved and he noted 0 Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 some of the maintenance at the cemetery fell behind. When it was brought to Mr. Mack's attention, he authorized overtime to work with cemetery staff and they caught up. Commissioner McCray commented some buildings need painting and asked why officials had to call and complain to staff before the matter is addressed. He favored the City taking better care of what it has. Mr. Mack highlighted the Surtax Funds. One hundred fifteen thousand dollars was allocated for the Boynton Beach Boulevard extension upgrade east to Federal. Planners and staff are working with the CRA to leverage funds to make enhancements. Staff was using Surtax funds to replace existing signs and have a master sign standard for all signs city-wide and for the Town Square. The Public Works Compound project had funds designated for preliminary design work or relocation that was discussed the day before. Funds were also allocated at the pistol range for ADA repairs. HVAC replacements were included. Commissioner McCray reiterated it was important to have foresight and repairs should be addressed immediately instead of being added to a list; however, Mr. Mack explained HVAC contractors and ADA contractors typically do not go hand-in-hand. Commissioner Casello asked if the Pistol range is used by other departments to qualify or if there is a charge. Ms. LaVerriere commented it is reciprocal and there is no charge. The City hosts a lot of training. Funds were allocated for dugout replacement at Little League Park. Knollwood Park had ADA improvements and parking lot/seal coating. Commissioner Casello noted at one time, Knollwood Park had a gate that closed automatically at 8 p.m. There are questionable activities ongoing at the park and it is dark. He asked if it could be relighted or additional lighting added. Mr. Mack explained they could revisit closing the park after dark and adding fencing. Part of the problem is locking up the various facilities as typically Parks and Grounds, Maintenance staff, or sometimes a Police Officer does so and they open the facilities. He commented there had been discussion of a Park Ranger program which, if approved, would help. They could reinstall the gate and add lighting. Moving forward, Mr. Mack noted repair estimates fluctuate and staff could bring back new amendments to the plan on a quarterly basis. They can adjust funding between the line items as needed. Commissioner McCray wanted to know who schedules when the parks and facilities would be closed and learned it would be Wally Majors, Recreation and Parks, Director. Commissioner Casello asked if the Little League had exclusive rights to Little League Park and learned they did. He pointed out it eliminated other youth from using the field. He noted the City was spending $100,000, plus whatever it cost to fix the net after the hurricane and he thought the park should be accessible to everyone. Ms. LaVerriere explained the City Commission could make that decision when the contract comes before the City Commission each year. Commissioner Casello pointed out most of the youth using the Little League field were from West Boynton, not East Boynton. W Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 The Tennis Center parking lot would be seal coated and the median upgraded. A total of $2.5 million of the surtax funds would be used to upgrade Recreation and Parks facilities. Commissioner Katz asked if there were any other projects in District I and learned there were not as there are not many parks there, but there was some work being done at Police Substation 2. Commissioner Katz inquired how much tax revenue comes from his District that is spent in the District and thought if that discussion moved forward, people in his District would be shocked. He favored equality -based funds for the east side and additional funds for Districts 1 and 4. Mr. Mack commented there are not many parks in District I, but in the future, staff was looking to add Commission Districts to the Capital Improvements Plan list so they could be categorized. Commissioner McCray explained the east side has more facilities because there was more vacant land used for recreation purposes and they have the Intracoastal. The fair share is fine, but people from the west side come to the east side and it is difficult to please everyone. Commissioner Casello asked if the City spent $100,000 on new lighting at the Tennis Center and learned they did two years ago. He asked how many tennis members there were and how many Boynton residents there were. Mr. Majors thought it was the low 100's. Commissioner Casello complained the City spent $100,000 on a facility that very few Boynton residents enjoy and he proposed to either make the fee commensurate to run the Tennis Club or cut it off. He did not want to spend taxpayer dollars on a facility that is turning into a private tennis club. He thought it should be structured similarly to the golf course. Commissioner McCray pointed out individuals using the Tennis Center also spend money in the area including restaurants. He supported letting them play at the Center, but also pointed out not everyone in Boynton plays tennis. Commissioner Katz asked if staff advertises the Center and learned it advertised through social media and Funfare Magazine. Mr. Majors also advised not all who play at the Tennis Center have permits. Some patrons just register for tennis leagues. Several years ago, staff recommended a fee hike to come close to covering the cost of the Center, which was voted down. Mr. Majors would research when the discussion occurred, but thought it was around 2005 or 2006. He advised it went before the City Commission as there was lengthy dialogue and many people attended. Commissioner McCray recalled the meeting. Mayor Grant asked all the departments for quarterly updates noting the excel sheet prepared for the various items to be addressed. The spreadsheet will reflect the status and completion of when each item was finished to ensure all see where the money is going and the results. He noted at one time, the east side of Boynton Beach paid for the west side when there were cows there. District 1 has 64 acres of park the entire County pays for and Mayor Grant noted the City enjoys County amenities that others also pay for including the scrub lands the county owns and maintains. There were many amenities the City and County worked on cooperatively, and he was looking forward to continuing with the capital improvements and spending money wisely. X Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 Commissioner Casello pointed out all the new construction east of 95 will not benefit people on the west side of 95 because it is inside the CRA District, so the money will stay in the same district. Joe Paterniti, Interim Utilities Director, explained the 2018/2019 budget was $48,708,104, which was a 4.7% increase from last year's budget. The primary increases were due to the General Fund Direct Overhead, the General Fund Dividend to the Commission: The transfer to the Renewal and Replacement Fund for the infrastructure was the same as last year's transfer and there was an increase in their Debt Service commitment. Other increases were due to inflation and additional staff. A breakdown of the 12 Divisions in Utilities was reviewed and their commensurate increases. The Department was adding three field technicians to work the second shift in order to provide better service. There are many call outs throughout the year and this shift will work from 1 to 9 to handle some of the after hour calls which reduced the call out budget. They are adding one water treatment plant operator trainee and reclassifying several staff as a result of a salary survey they conducted with Human Resources to make Utility positions more competitive. Utilities completed the North/South Road utility improvements as contained on the slide. This also included upgraded the stormwater and water distribution systems for the neighborhood, providing better fire protection for the neighborhood and improved the neighborhood aesthetics by including landscaping and street paving. The NE 20th Avenue Stormwater Improvements, the East Water Treatment Plant Capacity and Treatment Improvements and a lift station upgrade to station 309 was completed. Images of the projects were viewed. Commissioner McCray asked when all the fire hydrants would be uniform. Colin Groff, Assistant City Manager responded they originally planned on 12 or 15 years because the City has a lot of fire hydrants and they would only be replaced as they failed, but the estimate was changed to 10 or 11 years because of some extra projects that were constructed. Almost all the fire hydrants will be changed out. Just over 4,000 remain and they changed out 800. Mr. Groff will provide the exact number to Commissioner McCray. The City also changed to Sigelock Hydrants because security of water is a top priority in all utilities. Only the fire personnel can access the new hydrants using wrenches that are numbered so they know exactly who accesses the hydrants. The maintenance is less than on the older hydrants and the locking and value mechanisms that control the water in and out has a higher standard valve system. The hydrants have a foot valve and if a new hydrant is hit by a car, the water will not spray up. The East Water Treatment Plant was upgraded using a Magnetic Ion Exchange (MIEX) system to treat raw water from the West Water Treatment Plant Staff added artwork to help brand the City and the water tower is lit. Feedback on the tower lighting has been good. Mr. Groff commented the tower is now a unique and gaining worldwide recognition. Every month they are improving how they can use the color and there was no increase in I Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 cost. Engineers design the colors and they change via a computer. Mr. Groff announced staff was also developing a way for the public to vote on what colors to use and pick the colors on certain nights. Mr. Paterniti reviewed the CIP technology UOP program as on the slide. It is a financial model which allows them to input capital projects and operating costs and it projects some of the revenue needed over the next 30 to 50 year period. Staff has a separate financial model for each utility division that identifies projects based on projected population growth as well as the asset condition. Another technology used is the Asset Management System, which is going live next month to identify each asset and the maintenance record of each of its components. Commissioner McCray asked if the City would run out of water in the foreseeable future. Mr. Paterniti responded the City has plenty of water treatment plant capacity and a backbone wellfield transmission main. There is enough water for another 30 years and there are opportunities to add wells. The City does not experience saltwater intrusion as they draw most water from the west well and bring it east to meet demand. In 18/19, staff was planning major projects, which included membrane replacements at the West Water Treatment Plant and the Central Seacrest Corridor Drainage and Water Main Replacement project, which will extend into next year. Lakeside Gardens, Lake Drive and Potter Road are areas prone to flooding and staff will consider stormwater improvements there. The new Central Energy Plant is planned for the downtown for next year, they are building a new water quality lab at Fire Station No 2, and expanding the reuse system as part of their permit requirements. Commissioner Casello asked what percentage of reuse water is used. Mr. Groff explained the wastewater plant processes 18 million gallons of water and disposes six to eight million dollars of the water as reuse. The permit requires them to increase the City's reuse capacity and the City was looking to provide reused water across the Intracoastal to two golf courses and several other large customers that have approached the City for water. There are also seven or eight homeowner's associations, including Hunters Run, requesting reuse for irrigation systems. Hunters Run already uses the reclaimed water for the golf course, but was looking to use it on residential areas. The City needs to add three to four million gallons of capacity over the next few years and the project is a multi- year project. The City will receive a $250,000 grant for the reuse system and also applied for a Flood Hazard Mitigation � grant from � � the County for $850,000 to help with the Dimick and Potter Road expansion. They will rehab some pump stations this year and water treatment plant recruitments. The total capital budget was just over $22 million. Utilities funds itself and each year staff reviews costs and rates. Staff has tools to determine if rates will cover needs out into the future. There has not been a rate increase for a few years, but there was an increase in of supplies, chemicals, fuel, materials and labor each year. Mr. Groff explained staff reviews expenses by utility. He reviewed the different projects comparing costs to expenses and pointed out wastewater and stormwater do not have the revenue generated to support its operation. Mr. Groff advised �'j Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 most utilities are fine with substituting reuse water with potable water. It cost the same to generate both, but the City sells reuse water at a much lower price. Mr. Groff reviewed the costs and revenues. If Utilities does not address the rates, the City will have to use reserves in a few years to cover the cost differences and in five years, the City will be $8 million in the red in reserves. The proposed rate adjustment could be across the board 3% or via a dollar amount. Since increases are caused by consumer price indices, one option was for the City to increase rates commensurately. Staff reviewed the information for the 12 -month period ended in June. He noted the Consumer Price Index was 2.8%; Wage and Salaries for public service was 1.8%; and energy was .6%. The City would apply the percentages to the components that are affected. When the information was added to the financial model, it showed the revenue increased. Mr. Groff also recommended an increase for the stormwater fees. The fee was six dollars a month and then it was lowered to five dollars a month. Mr. Groff recommended a one dollar increase and then 50 cents a year for the next two years. The revenue will bring the City a lot closer to closing the gap. He did not want to impose an increase all at once. He commented the increase will start paying for itself and rates will start to stabilize. If costs are raised slowly, there would be no need for large increases. He noted other nearby utility companies were having significant increases. Residential base charges will increase from $12.35 to $12.65. There conservation water rates for the first nine thousand gallons is $1.65. After that, it significantly increases. Staff adjusted rates cross the board. Outside City rates were 25% higher. A single-family home using 3,000 gallons would increase from $49.18 to $51.16 including the stormwater increase and the taxes. Outside the City rates were also reviewed which did not include stormwater. He reviewed proposed bills for large customers, apartment complexes and the water and wastewater rate comparisons as contained in the meeting materials. Mr. Groff explained the City only bills for the water that is used. He noted Boynton Beach had the fourth lowest rates compared to other utilities and even with the increase, the rates were still very low. Mr. Groff explained if there was consensus to move forward, they will bring an Ordinance to the August meeting with a rate resolution with a required 30 -day notice. Commissioner McCray explained when Ms. LaVerriere hired Mr. Groff as the Utilities Director, he started a lot of projects. He noted some projects were pushed out because they did not have to be done immediately. Mr. Groff explained utilities only wants to undertake the projects needed to keep the utilities working. The North South Road project was a good example. The project was designed in 2000, but the City could not get it going. When he was hired, he figured out how to build it. The homes were flooding when it rained and the water system was old. The water plant project was also driven by regulatory issues and had saltwater intrusion. The water management district advised they had to take less water from the east wellfields so they built a project to transport the water from the west treatment plant to the east. The Neighborhood Improvement project was approved because the water and sewer lines are very old and need to be replaced. He advised while there, they may as well fix everything. They installed stormwater and 1 Workshop Minutes City Commission Boynton Beach, Florida .July 17, 2018 Public Works put in new sidewalks and repaved the road. Mr. Groff explained those projects are bigger than normal, but the neighborhoods are 50 and 60 years old and have to be addressed. Staff uses a program to determine the condition of the asset, how old it is, what are the breaks on it and determined when it needs to be replaced. They include the cost of the repair in the year they determine the asset needs to be addressed. Mr. Groff noted the City had to borrow money for some of the projects and borrowed $40 million in two borrowings to pay for the big Water Plant and the East/West Water Main projects. Mr. Groff was not proposing to borrow any money for 10 years or longer and the department will budget for projects out of revenue. Each year, they will analyze the asset. Tim Howard, Assistant City Manager, noted there are three or four outstanding bond issues that will retire at different dates. Mr. Howard noted when he was hired in 2008, a rate study by CH2M Hill was done. The rate study projected the City would issue two bonds for utility projects. The City planned for a bond issuance in 2011 and in 2012 or 2013. The first round was $23 million and it took longer to spend the money than expected so the second round was issued in 2015. The plan was those two bonds would provide the City money to undertake major projects and it changed the way Renewal and Replacement projects were funded. It increased the transfer from $4 million a year from general operating utilities to now $7 million. Future projects will be cash -based for the most part from the transfers made over the years. The pay-off dates for the 2002 Bond was 2021, the 2012 series will be paid off in 2037 and the 2016 series bond will be paid off in 2032. Each time a bond is issued, the amount is smoothed so the debt service payments will be level. Commissioner Casello noted Mr. Groff was aggressive in wanting to supply water to surrounding areas. He asked if those acquisitions paid off and learned Royal Manor was finalized. It paid for itself in a month and the City was already making money. Commissioner Casello asked about Manalapan and Hypoluxo, and learned the City is negotiating a new Interlocal agreement to pick-up customers in Hypoluxo that get their water from Manalapan and they will see a substantial decrease. Commissioner Casello asked if the decrease could be used to lower costs for the City as it is money coming back into the system. Mr. Groff did not know. One benefit of the acquisition of the Hypoluxo customers is it would provide a loop of water, which will improve service in the northeastern area. The customers are also very large customers that use a lot of water. Commissioner Casello asked what was being done to lower energy costs. Mr. Groff advised when they replace pumps or equipment, they use the most energy efficient items on the market. Staff was also engaging a group to conduct an analysis of alternative energy, what the cost to install would be, what the savings would be and what the value over time would be. He thought there were savings there. The City is also contemplating using micro turbines using natural gas which would decrease energy costs. Commissioner Casello asked if it was wise to have the reuse rate increase now. Mr. Groff explained reuse would not have an increase until it becomes a commodity. As for stormwater, the rate increase would handle the flooding. There are influences from 10 Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 climate change and sea level rise that are occurring. The City has to follow the permit requirements and keep the flooding down. Commissioner Casello asked if saltwater intrusion would be an issue and learned the City already planned for it, which was why they use the wells from the west. Staff is also contemplating using shallow injection wells on the ridge of the west water plant to address any intrusion. Utility rates were not increased within the last two years. Mayor Grant asked if there would be a cap on the CPI and Mr. Groff responded they would. Mayor Grant inquired if the solid waste charge was on the same utility bill and suggested separating the charges on the bill so customers would know what was water and what was solid waste. Mr. Groff agreed and commented they will redesign the bill.. Mike Fitzpatrick, 175 SW 2nd Street, received confirmation outside city residents pay a water surcharge of 25%. He also asked about the purple pipe network and reclaimed water as there are condos along S. Federal Highway that are interested in hooking into the system. Mr. Groff explained there is $2 million next year and $2 million the year after that to take the line to SE 23rd all the way up and down Federal Highway to get the HOA and cross the Intracoastal to the Little Club and St. Andrews Golf Clubs. It should start this year and it is about a two-year project. Mr. Groff explained if going under Federal Highway, the City has to do so before the FDOT paving project which was slated to start in 2019. It includes the area around George Bush Boulevard. Mr. Groff advised the City will make an ordinance change in August and the rate hearing will take place either the first or second meeting in September with the budget. Commissioner Katz supported the proposal for the $1 increase and 50 cents for the next two years after that. There was consensus to support the rate increase. Vice Mayor Romelus also supported the increase, but wanted more detailed information. Mayor Grant supported the change with a cap on the rates. He commented it was important to fund utilities correctly and wanted utilities to remain strong. Commissioner McCray asked the Police Chief how many new cars were budgeted and do they need to take the cars home. Commissioner McCray also wanted to know about the real time Crime Center as there was equipment used in Ft. Lauderdale that may not be used in the City. He thought if there are any funds that may have been missed, the Police Chief should say what he needs. He wanted to find out what was wanted by department. Michael Gregory, Police Chief, explained in reference to take home vehicles, there are about 183 vehicles in the program and about 100 are unmarked. He sees a lot of value in the program and it is similar to what they had in Ft. Lauderdale. It is also a benefit that many law enforcement agencies have. Ft. Lauderdale Officers can drive 20 miles outside of the City. In reference to the budget, he did not see anything he would object too. The monitors that will be needed for the Real Time Crime center and future equipment would be needed. 11 Workshop Minutes City Commission Boynton Beach, Florida July 17, 2018 Vice Mayor Romelus wanted clarification for the two take home cars for Public Works employees. Mr. Groff explained one employee will move to a car allowance and the other person is retiring which will change the job. The replacement person will not require a vehicle. Both people are on call 24 hours a day. One take home vehicle was a warehouse truck. Ms. LaVerriere explained they spent the last two years eliminating the take home cars except for public safety. Commissioner Casello asked if all employees had to adhere with the 20 -mile outside City limit requirements. Mr. Groff explained the department has a lot of people on call, they have GPS on the vehicles which staff monitors and there have been no complaints. Mayor Grant opened public comment. No one came forward. Vice Mayor Romelus asked about the economic development grants and noted last year the program gave out $76,000, but this year was only allocating $54,000. David Scott, Director Economic Development, explained it was because the grant rolls over each year and it depends on when the permit is issued and when the refund is requested. The amount encompassed the Rent Reimbursement and Interior build -out grants. The $54,000 was the same for the past few years, but there was a carry forward. Only about two grants a year are given. Commissioner McCray commented he had requested how much money Mr. Scott brought into the City, which was not supplied. He wanted measurables to see what was in place and he was not satisfied with the information. Mr. Howard explained there are two proposed resolutions. One was a proposed millage rate of 7.9 mills as recommended by the City Manager. A final millage rate will be adopted in September. Between now and September the Board can reduce the millage rate, but recommended it not be increased otherwise residents have to be notified of the change by first class mail. The second resolution is the preliminary fire assessment. Attorney Jim Cherof read proposed Resolution R18-095 adopting a proposed municipal millage rate for General Operating Budget purposes for Fiscal Years 18/19, Stating a rolled -back rate and setting the date time and place of the First Public Hearing and providing an effective date. The proposed millage rate was 7.9000 and the rollback rate was 7.4709. The first public hearing will be held on September 6, 2018, at 6:30 p.m. at the Intracoastal Park Clubhouse, 2240 N. Federal Highway, Boynton Beach, Florida. Vice Mayor Romelus moved to approve. Commissioner Casello seconded the motion. The motion unanimously passed. Attorney Cherof read resolution R18-096, a resolution of the City of Boynton Beach relating to fire rescue services, facilities and programs in the City, describing the method 12 Workshop Minutes City Commission Boynton Beach, Florida July 1, 2018 of assessing fire rescue assessed costs against assessed property located within the City of Boynton Beach, assessing the preparation of an assessment role, authorizing a public hearing and directing the provision of a notice thereof, and providing an effective date. There is a notice of hearing was on September 11, 2018, at 6 p.m. at the Intracoastal Park Clubhouse, 2240 N. Federal Highway. Exhibit E sets the estimated fire assessment rate schedule. Commissioner Casello moved to approve. Commissioner McCray seconded the motion_ Vote The motion unanimously passed. Vice Mayor Romelus commended Ms. LaVerriere and staff on the budget. There was no increase in millage and no increase in the fire assessment. She thought it was good for the public to see the fruits of their labor in terms of the Town Square and Old High Square projects. All agreed. There being no further business, Mayor Grant adjourned the meeting at 2.05 p.m. CITY6O �B"'OY4TONACH ff-aaiyor ® Steven B. Gant Vice Mavor, Christina-Romahus missile -r" Mack McCray oner —Justin Katz Commissioner - Joe Casello 13 Workshop Minutes City Commission Boynton each, Florida 4 JudiTlA. Pyle, CIVIC il City'Clerk Catherine Cherry Minutes Specialist im