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Minutes 07-16-19 BW Minutes of the Boynton Beach Budget Workshop Held on Tuesday, July 16, 2019, at 10:00 a.m. at the Intracoastal Park Clubhouse 2240 N. Federal Highway, Boynton Beach, Florida Present: Justin Katz, Vice Mayor Lori LaVerriere, City Manager Mack McCray, Commissioner Jim Cherof, City Attorney Christina Romelus, Commissioner Queenester Nieves, Deputy City Clerk Ty Penserga, Commissioner Absent: Steven B. Grant, Mayor Welcome and call to order Vice Mayor Katz called the meeting to order at 10:01 a.m. and welcomed all to the Budget Workshop. Pledge of Allegiance Commissioner McCray led the Pledge of Allegiance to the Flag. Roll Call Deputy City Clerk Nieves called the roll. A quorum was present. Public Comments Vice Mayor Katz opened the floor to public comments. Dr. Stephanie Hayden-Adeyemo was interested in the budget for the Police Department. She thought there could be some type of incentive with marketing for new hires concerning public service and homeownership. She understood the current salaries were not in keeping with neighboring cities and thought the disparity could be offset with some type of housing, especially with the new Town Square. Dr. Hayden-Adeyemo is a teacher. She purchased her home through the Bank of America Good Neighbor program for public servants and officers. She thought it would be a progressive promotion for the City. Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 Commissioner McCray thought it would be discriminatory and if done, it must be done across the board for all employees. Dr. Hayden-Adeyemo responded does not necessarily exclude anyone. There is loan forgiveness for public servants such as nurses and doctors all over the nation. There are programs and services offered to individuals who go above and beyond the call of duty. Commissioner McCray advised everyone who works for city government is a public servant. Susan Oyer, 140 SE 27th Way, commented there were ramp problems at Oyer Park and asked if repairs were included in this year's budget. Andrew Mack, Director, Public Works, explained there is money in this fiscal year's Capital Improvement Budget allocated for the design. The City has to go through permitting the ramps, so construction would start in two and a half years. Staff also discovered a grant to help supplement the funds. Ms. Oyer asked about the status of park cleanups. She was aware Boynton Care's and Kevin Homer clean parks regularly. She asked if there was a way to stay more on top of the litter or if the City would continue to rely on volunteers to keep parks clean. Wally Majors, Recreation and Parks Director, explained the Department appreciates the Adopt-a-Park volunteers and other dedicated groups that clean the beach, but staff is assigned to clean parks on a regular basis. Currently, the crew works Monday through Friday from 6:30 a.m. to 3:30 p.m. Part-timers work on the weekend. Mr. Mack advised they will adjust the hours of the workers and he was considering adding park workers in the evenings during the week and on the weekends when most of the trash accumulates. He noted there are 29 parks and current staff cannot get to all the parks each day. Ms. Oyer noted Mr. Mack had mentioned he had stopped using Cemetery Funds for Parks and Grounds. She understood the Cemetery Fund was a dedicated fund to be used for perpetual care and asked if the City would replace the funds taken out to cover the park manager and crew supervisor salaries. Mr. Mack explained he moved the expenditures out of the Cemetery Budget to have less of a budget impact and allocated funds the way they should have been in the parks budget. The park manager and crew supervisor work at the cemetery. The change improves the Cemetery Fund. Commissioner McCray noted State law requires perpetual care. He asked if the expenditures were within the parameters of the law. Later in the meeting, Attorney Cherof explained municipal cemeteries are not licensed by the State and State regulations do not apply. Ms. Oyer also asked if the City replaces the bronze vases at the cemetery because her aunt's was stolen and learned the City does not. Dr. Hayden-Adeyemo asked about the strategic overview analysis software. She thought each department can share their strategic plan framework, goals, plans and objectives, with the City Manager on a quarterly basis to present to the Commission and the issue would be handled in-house. She noted the software would need to be upgraded and the expenditure was too much money when someone could handle it in the department. Lori LaVerriere, City Manager, explained there was a $1,500 start-up cost including the first year of maintenance and a recurring cost of $8,500 annually, which will then allow 2 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 the City to phase out the consultant and bring it in-house. The software aggregates the data from all the departments. Commissioner Penserga asked how much the consultant is paid and how long to recoup the expenditure. Ms. LaVerriere explained the City spends $15K to $18K a year on the strategic plan and other initiatives the consultant handled over the past few years. The goal is for the consultant to get the City on its feet and managing everything. The City made changes to how the City approaches Strategic Planning from an intense process to one that is more manageable. There will a recurring cost of the software, but the City will manage all of the City programs and will save the difference between the price of the software and the consultant. The City will recoup the cost of the software in just a few years. Commissioner McCray asked if the City checked to get the best price and learned they had. The City has specific procurement processes. Ms. LaVerriere explained the accompanying presentations were to be posted on the website, but they were not ADA compliant accessible documents. The City is training multiple employees to produce accessible documents. Anyone interested in receiving a hard copy of the presentations should leave their name with Eleanor Krusell, Public Communications and Marketing Director. Golf Course Ron Tapper, Golf Course Manager, announced he will retire next year and the golf course administrative budget had a 4% increase from last year. There is a $15K increase going into the general fund as payments for the loan for the greens were made. Staff added funds for employee salary increases and a $4,700 increase for building maintenance repairs. The maintenance budget increased 14% from last year and included new greens on the Family Course, which were last replaced in 2010, and leasing mowers, as the mowers are used every day and will help the Championship Course. The City Commission viewed images since the new greens were installed. Revenue should hit $1.6 million in cart and greens fees, which has not been reached in years. The chart reflected 80% of the budget is cart and green fees, and the rounds played on the Championship and Family Courses. The Golf Course was under a lot of stress for years. Good and bad weather days were also reviewed. Each year, the course is in better condition and the average rounds played are increasing on good weather days. Commissioner McCray queried what was occurring with the concession and learned it is still operating. He asked if the City was looking at repairs on the concession stand. Mr. Tapper explained a consultant study for the new Clubhouse is included in the Capital Improvements Budget for the following year. Currently, they resurfaced the cart paths and future repairs to the cart barn are planned. Commissioner McCray thanked him for his years of service. Mr. Tapper advised the Golf Course is on solid ground and moving in the right violation. He thanked staff, Ms. LaVerriere and former Assistant City Manager Carisse LeJeune. Solid Waste and Fleet 3 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 Andrew Mack, Director of Public Works, reviewed the Solid Waste budget, and advised there was a 2.8% increase from last year. Changes were increases in wages, pension and benefits costs, budget allocations and salaries for the employee career path. He moved the street sweeper operation from the Streets Division to Solid Waste including the salaries, the prefunding and maintenance of the vehicle. The commercial front loaders replacement cycle was changed from a six-year replacement cycle to a five-year cycle. There was an increase in vehicle insurance, prefunding and workers comp. The Department increased their waste disposal fees. Successes implemented was a change in the commercial fee structure and the payment procedure. Last year, they billed roll- offs in arrears. This was changed to require upfront payment. The Department is implementing the career path enabling all equipment operators in Solid Waste, based on the type of vehicle they operate, years of service, certification and training, to follow a defined career path, allowing an equipment operator trainee to advance to an Equipment Operator 4. Commissioner McCray asked how much money was lost by requiring payment for the roll-offs in arrears. Mr. Mack expressed it was about $300K, dating back to the early 2000's. Commissioner McCray asked if the Department indicated they would ask for an increase in fees from citizens and learned in September of last year, there was a $1 rate increase for this fiscal year and 50 cents the next fiscal year and 50 cents the next fiscal year. Commercial fees were reorganized. Commissioner McCray requested the citizens be informed. Mr. Mack agreed and advised the purpose of moving to a fee resolution process was so staff can evaluate operations and costs, and set or reduce fees each year. Lake Worth charged $20 for single-family home usage and reduced it to $19.40. It is typical to look at fees every year. Utilities set the benchmark through software to help forecast costs and future fee structures, which has been a challenge for staff. Mr. Mack wanted to use similar software to do the same thing. Illegal dumping and littering is a significant challenge. Commissioner McCray noted District II is impacted and asked if they are working with Community Standards. Mr. Mack explained they do and they used to have an in-house officer who would fine individuals for early trash set out or dumping. When Community Standards was placed under the Fire Department, the position was moved. The department does fine individuals and work with the drivers or when there is a complaint. They notify Community Standards and they will start a case. Depending on what the pile is, they will clean it up and charge the party. Sometimes the piles are so large, they must be removed right away and staff has to determine how to charge them later. Mr. Mack intended to review the Ordinance to see how they could hold individuals accountable for early set-outs. He wanted to issue a straight fine, so the City could pick it up and not have to go through Community Standards. Commissioner McCray suggested including a warning because people move all the time and they may not know the rules. The Department should also educate the public about what they will do. There is an issue with loose garbage that staff picks up manually and it is time intensive. Commissioner McCray noted people drive by and throw out trash. Mr. Mack agreed the issue is everywhere. The Department will see what the industry is doing and will think outside the 4 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 box. Salt Lake City has no trash problems, and there is a reason why. He announced he would try to learn best practices. Commissioner Penserga asked how often someone was observed littering. Miner Road is a problem and no one usually sees the dumping occur. Commissioner McCray noted the litter on Miner Road is from out of towners. Mr. Mack explained the fines he mentioned pertained to residential property owners. The Police Department can issue citations for littering. There are residents who volunteer with Adopt-a-Park, but it has to be the community not tolerating the litter and leading by example. Fleet Maintenance Mr. Mack advised the Fleet Maintenance budget is $10.5 Million, which is a 14% decrease. Funds were allocated for a career path for Fleet Mechanics, as competition for private sector mechanics is very high. The allocation will allow the Department to attract and retain talent. Funds in the budget included adding two fleet mechanic trainees and working with the industry. The City's recruitment efforts included South Tech Academy as they have an automotive program. The City could recruit right out of high school, start from the bottom and grow them through the program to a Master Mechanic. A Fleet Mechanic Supervisor and Master Fleet Mechanic for EMT and Fire vehicles were also planned. It was important to have trained personnel to ensure the work is done on fire vehicles. The Fleet Administrator was reclassified to a Fleet Manager. New line items were established to capture outsourced commercial repairs. Currently, they use a clearing account and staff wanted to ensure they are transparent by showing what commercial repairs are outsourced. Staff will use capital improvement funds for the new duty shop. Park operations are being moved to the Rolling Greens site, which doubled the size of the fleet shop, which created the light duty side of the fleet shop. It will be a place where the new employees could work. Fuel and oil costs increased. Funds were budgeted to review or replace outdated fleet management software. The vehicle purchases decreased $2.4 million based on the replacement cycle. Staff completed a comprehensive fleet analysis from an outside consultant. The software staff uses is outdated. It is too expensive to replace the entire enterprise software, but it is feasible to replace it individually. There is competition for labor from the private sector for diesel heavy truck mechanics. The Department has to have service level agreements with all user departments, so they will know what level of service they could expect from the Fleet Division. There are some Administrative Policy Manual guidelines for the department that are vague. Staff wants to rewrite them and have each division/department adopt them formally. Commissioner McCray commented there are blue and white City trucks with different logos. Mr. Mack explained last year, the Department began phasing in the new logo with the new vehicles. It was too costly to repaint the entire fleet. The new trucks will be branded with the new blue color in solid waste and other divisions. Light duty fleet trucks 5 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 will stay white, but the big commercial trucks for Solid Waste are being rebranded blue. If a truck is damaged in an accident, it will be painted and it will take a few years to cycle in all the new vehicles. Cemetery Fund Mr. Mack reviewed the 18/19 fiscal year Cemetery Budget was over$300K this year. Staff anticipated $253,000 in expenditures. Any expenditures taken out of the fund will help with the long-term health of the Cemetery Fund, which was why he removed the salaries for the Parks Manager and Crew Supervisor from the Cemetery Budget to the Parks Budget. Mr. Mack noted that was 22.5% decrease. The Mausoleum budget was $23 K in FY 18/19. Staff proposed $23,774 for 19/20, which was a $500 or 1.7% increase. There was a vehicle/equipment cost, which changed the maintenance cost. Staff was also looking to purchase vault trays for the Mausoleum. Commissioner McCray asked if staff sells the vault trays to the family after they purchase at the Mausoleum and asked how many graves were available. Mr. Mack agreed to provide him the information. Successes and challenges included changing an entry feature at the Cemetery. Staff took out a section of curbing that trucks kept damaging and they repaved the road from the front entrance from the sidewalk up to the island, correcting a dip in the asphalt. In the median, staff removed the existing landscaping, installed new trees, upgraded the irrigation and relocated some of the Palm Trees from the Town Square to the site. It was a dramatic improvement to the entryway. There were two cemetery employees: the Cemetery Sexton, and a Parks Maintenance Worker who were challenged with mowing the entire cemetery by themselves. Mr. Mack reallocated staff and sent two workers to help them on Mondays so the Cemetery workers can ensure the head stones are maintained. Challenges included complaints about items people leave on the gravesite. It is fine if someone leaves something graveside and maintains it, but if not, the items are removed. Staff will be improving that process. There is a balance between grieving and enforcing the rules. Mr. Mack anticipated replacing the perimeter fence next fiscal year. Landscaping and irrigation upgrades are a future project. Staff will try to enforce adherence to the Cemetery Rules by funeral homes and directors. There were instances when funeral processions showed up early interfering with ongoing funerals. Mr. Mack will review the policies and procedures and publish the rules upfront so people visiting loved ones know what is expected. Human Resources/Risk Management Julie Oldbury, Human Resources Director, explained staff anticipated an 8.9% increase or about$500K, in the Risk Management Budget. The primary driver is in Workers Comp as the City is self-insured. With the enactment of State Legislation for first responders, there have been other opportunities for first responders to seek claims through the Workers Comp system. The City has to be cognizant of those mandates, which included 6 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 the Cancer Bill and Post Traumatic Stress Disorder (PTSD). The Cancer bill for First Responders provides for an option to go through Worker's Compensation and taking lump sum payouts and continuation of health insurance coverages of that nature, but the City needs a place to fund for it. Risk Management and Self-Insurance is where the funds would be allocated. The Cancer Bill becomes effective July 1, 2019, and October 1, 2018, was when the PTSD Bill took effect. The City wants to maintain a fund that can support such claims, as the City had very serious incidents that were very costly. Ms. Oldbury advised the City is about 70% funded from its goal, and this increase would get them to about 80%. Public Art Debby Coles-Dobay, Public Art Manager, advised the increase in the Art in Public Places budget was due to the Town Square Public Art projects. Seven projects were already approved and are now in fabrication. The other part of the budget is the Avenue of the Arts year-long rotating exhibition. She advised public art requires maintenance and each year the pieces are inspected and maintenance scheduled as needed. The City has accumulated about $400K from the 30% and 70% of the 1% public art fee. The program originally received a loan from the City to institute the Exhibit, which was paid back. Commissioner Penserga asked what the future for public art was and learned their role is to guide the developer through the development process as it pertains to art. They advise what is good for the community and the project. The City has a Strategic Plan, which is updated every few years and is focused on kinetic, eco and glass art. The goal is to distinguish and brand the City through those art forms, which was also why they hold the International Kinetic Art Exhibit and Symposium biennially. The City tries to keep the exhibit fresh with new art as well as help market and publish the art and projects from various development communities. Vice Mayor Katz praised the program, particularly with the garage in the new Town Square. He thought it would be a driver for people to come to the Town Square. All of the Town Square Public Art projects can be viewed on line at Boynton Beach Public Art. Capital Improvements Commissioner McCray asked how long Seacrest Boulevard was going to be torn up. Mr. Mack explained the Town Square has phases of the project. They are currently connecting electric and recently poured the sidewalks and curbing. He thought the barricades would be removed in 30 to 60 days, but in the future, work will be done periodically. Mr. Mack explained the Penny Sales Tax (303 Fund) became effective January 1, 2017 and will sunset on December 31, 2026. The City has projected construction costs of$7, 060,000 for 91 projects. The General Fund (302 Fund) CIP has projected construction costs of$1.2M to fund eight projects. 7 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 The Boynton Beach Extension project included Pete's Pond around Casa Costa. The City-wide Park entry signs was $75K; general government projects were $290K; the Pistol Range ADA and Public Works Compound projects were $297K; the Town Square allocation for temporary site demobilization and salvage was $185K; and Citywide sustainability upgrades were $25K which totaled $1.3M. Commissioner McCray asked about the CRA and the Boynton Beach extension expense and learned the project was funded in cooperation with the CRA, but the amount reflected was strictly from the City's budget. Vice Mayor Katz clarified the CRA funds for the Boynton Beach Boulevard project was for the entire redoing of the streetscape, which was a separate item. Mr. Mack explained the Boynton Beach Boulevard extension was south from Federal Highway to the Intracoastal encompassing the pond and landscaping around the pond. Eighty-nine thousand dollars was budgeted for Heating Ventilation and Air Conditioning replacement at the Hester Center, the Senior Center and Fire Station No. 4. The Hester Center will be re-roofed at a cost of $250K, which is currently out to bid. Recreation projects at the Hester Center was budgeted for $628K; Intracoastal Park was budgeted for $20K; Jaycee Park at $10K; Kiwanis/Sierra Park at $2K; Laurel Hills Park at $28K; and Meadows Park at $327K. Oceanfront Park recreational programs were budgeted for $120K; Oyer Park for$40K; Palmetto Greens Linear Park at$12K. Pence Park was $75K: Pioneer Canal Park at $65K; Senior Center at $750K; the Tennis Center for $83K; and Veterans Park for $2,500. Recreation projects totaled $2.11M. Fire/rescue projects were $288K; Information Technology totaled $40K annually for Personal Computer replacement, and ITS projects totaled $1.4M. Transportation/roadway included sidewalk repairs of $350K; street projects were $950K; bridge maintenance and improvements were $50K; and the Florida East Coast Railroad crossing was $80K. All in the projects totaled $7,060,000. Improvements by Casa Costa included demolition of the existing planters, landscaping and sidewalks, adding new landscaped islands and sidewalks, adding on-street parking, walkways around the pond, irrigation and security upgrades. Whenever a project is undertaken, security upgrades will be included. Town Square will have a Real Time Crime Center and walkway lighting that is motion activated. General Government Projects included carpet replacement, electrical, roofing, fencing, painting, and HVAC repairs totaling $290K in different trades. Staff was seeking annual service contracts and just awarded a painting service contract. Mr. Mack hoped to implement painting projects before the end of the fiscal year and was issuing an annual service contract for fencing and HVAC. Public Works Compound Mr. Mack had $125K for the creation of a combined warehouse/public works administration and lobby. It was important to have a secure lobby and Mr. Mack sought 8 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 to incorporate what was done at Utilities, having a secure lobby and central point to check in. The building entrance and parking will have ADA upgrades. Replacement of the existing automated gate will cost $45K and a back-up automatic gate will be added to the back of the fleet area. There have been instances when the front gate is down, and police still need access to the fuel in the evenings. Seventy-five thousand dollars was allocated for conception and preliminary design for the new Public Works facility. Commissioner McCray asked how many of the City's buildings were not ADA compliant. Mr. Mack agreed to check, but explained it is more than buildings as it includes improvements to infrastructure as well. Staff has made progress since the City conducted a study in 2015. Several of the items were associated with City Hall, the Library, and Police Department. When the City builds the new facilities, many of those issues will be addressed. Sometimes they have to remove items to return the facility to the landlord in original condition. With some improvements, the City salvaged a generator and the switchgear from the Library and will use it with the new Police Department. There is $20K programed for each facility to ensure the facility can be usable for the next tenant. Hester Center Mr. Mack explained staff decided to set the irrigation aside and make overall site improvements instead. The $177K is funding for the final design. Conceptual drawings were approved by the Recreation and Parks Advisory Board and staff will implement the final design phase. Other maintenance at Hester Center included building repairs, mold removal from the windows in the game room, exterior door replacement and some remaining windows that are not hurricane impact windows. Interior renovations included other interior doors, bathrooms, the locker room and upgrading the security system for $215K. Meadows Park Improvements at Meadows Park encompassed the playground, the fitness center and overall site improvements for $165K. Part of that project included additional parking, drainage, walkway lighting and security upgrades. Some projects are being reprogramed that if not completed this fiscal year, they will be reprogrammed for the next fiscal year. Tennis court fencing would be added this year, as would playground equipment, ADA upgrades, restrooms and asphalt pathway repairs. Oceanfront Park Mr. Mack advised next year, staff programmed $40K to make repairs to the maintenance building. Fifteen thousand dollars was spent on new stairways adjacent to the pavilions on the lower level. There is a grading issue and the City wants to install new retaining walls to ensure the earth will not wash onto the Pavilions, a new masonry grill, replacement of trashcans, benches and tables, and $35K for new asphalt repairs. 9 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 Senior Center Mr. Mack explained staff would replace some landscaping, irrigation, lighting and security. The City was discussing constructing a pedestrian bridge from the Senior Center to the Woman's Club with the CRA. If so, the City could move the Senior Center to the Woman's Club, demolish the Senior Center and create a brand new parking lot to help facilitate use of the Woman's Club, as there is very little parking. If the City cannot, they will renovate all existing drainage, landscaping, lighting and parking at the facility. Fire/Rescue Mr. Mack commented after the Town Square project started, the vendors were unable to get to the Fire Station No 1 Vehicle Exhaust System project so it will be done after the building receives its Certificate of Occupancy. Fire Station No. 2 needs interior painting; Fire Station 3 was budgeted $95K for kitchen and parking lot improvements. Fire Station No 4 was budgeted $75K for a kitchen renovation, apparatus, and painting and parking lot seal coating, and $45K for Fire Station 5 exterior pressure washing, waterproofing and interior painting. Information Technology Mr. Mack indicated $130K was budgeted for Automatic Vehicle Location (AVL) Systems for the Police Department, and $186K was budgeted for some Town Square projects and network improvements for the new Police Headquarters. Two hundred thousand dollars was budgeted for the Real Time Crime Center in the Police Station; and $132K for the Library's Radio Frequency Identification (RFID) Inventory System, which will be used in concert with an $84K grant the Library received. Commissioner McCray asked if the Police Department would receive shot spotters and learned they cost about $250K, but the item was delayed due to funds. The Real Time Crime Center will be installed and IT has needs for the Town Square. It will be addressed next year. About $300K was budgeted for fiber optic cable connecting from City Hall to the north tower at the Rolling Green's site, providing connectivity to the Town Square and Fire Station. Commissioner Penserga asked how AVLs are used. Michael Gregory, Police Chief, explained the Department does not have an AVL system and the Department is looking at various systems that would tie into the City's existing system. It is primarily used for Officer Safety. If the Officer is incapacitated and cannot report on the radio where they are, the GPS coordinates are sent to dispatch, which is a closed system so only dispatch and the police will know where the officers are. It will be very secure. Commissioner McCray asked if the equipment would help the department alleviate three or four vehicles sitting in one spot. Chief Gregory responded it would increase awareness of where the cars are at all times and the Supervisor could take action as appropriate. Mr. Mack explained AVLs would also provide metrics and real time data on the performance on the vehicle indicating when maintenance is needed. Four hundred seventeen thousand 10 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 dollars is for the Network Infrastructure for the new Library, City Hall, Fire Station, High School and open areas of the amphitheater and the park. Sidewalk Projects Mr. Mack commented $300K was budgeted for repairs and replacement and ADA ramp upgrades. The City completed Phase I of the ADA evaluation of ramps and will implement construction over the next few years. Street Projects Seven Hundred thousand dollars was included for asphalt repair and resurfacing. Engineering staff is in the final stages of finishing their analysis of pavement conditions, and a report will be given indicating the priority projects. Staff will approach the projects in the most economical way. The final design for the Complete Streets Program was budgeted for $250K. He noted the City received a $1 M award from the Palm Beach County TPA for the project. General Fund (302 Monies) Mr. Mack explained this fund included audit fees, the Schoolhouse Children's Museum painting, which is being closed out, general government HVAC repairs, miscellaneous small projects and $5K for Pence Park, which was a rollover to add an ADA parking space for the facility. General fund monies will pay for a $371K citywide public safety radio system, which was the lease payment on the upgrades to the Police Communications Systems installed two years ago. The City was received a grant from the Solid Waste Authority last year to replace the gate at Rolling Green for about $40K. This year, staff will install an eight-foot concrete masonry wall around the site and the $40K was the City's proportionate share of that grant. The project was about $300K. Mr. Mack hoped the City would receive $200K from the Solid Waste Authority as the City has been successful with obtaining grants from them for the last three years. There is a lease payment on the Police CAD management software and the Development Department is opening bids for the electronic Plan Review system. This is the payment for acquisition of the software. The Golf Course will have design fees for its clubhouse. Two hundred and twenty thousand was allocated towards the cart barn and there are miscellaneous items for the golf course. Eighty thousand dollars will be the new design of the clubhouse, $220K for the Cart Barn, $75K was allocated to the Family Course, and the remaining $133K will be used for milling and the parking lot overlay. The cost for the eight-foot precast masonry wall for Rolling Green was $100K. Commissioner McCray asked about the yellow benches at Jaycee Park and learned it was a Suicide Prevention Awareness Project as part of the National Suicide Awareness Day coming in September. It was donated to the City by a local non-profit organization. The benches are being installed throughout the County and in several schools. 11 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 Ms. LaVerriere explained the recording of yesterday's workshop was on YouTube. Colin Groff, Assistant City Manager and Utilities Director, commented there was discussion yesterday about a Japanese Delegation that came to observe the City's technology, and he is fortunate to be asked to speak about Utilities across the country as Boynton Beach Utilities is one of the best run in the Country and it is all due to staff. When Mr. Groff came to Boynton Beach five years ago, former Commissioner Joe Casello was upset about a utility write-off. The write-off was large, and he challenged staff to solve the problem. At that time, the Utilities Department had $4M to $5M in past due bills. The Commission and Ms. LaVerriere allowed Utilities to install in new systems and financial systems and the Department runs less than $30K past due past 30 days during most months. Boynton Beach is collecting what is due in a kind way by enacting different policies to assist customers in financial trouble. Boynton Beach has one of the best collection rate in the nation, which makes Utilities sustainable and the Department moved to a different type of financial management. Most utilities hire a consultant every five years for about $1M to determine what rates the Department has to charge for needed projects. When the consultants leave, the plan is no good because changes occur each day. The City now has an automated management system. The system receives new customer data, new capital projects and other date and identifies operating costs including Consumer Price Indices. Boynton Beach is the first utility in the national to write algorithms to determine future rates. They know when they bring the budget how much to collect to keep Utilities sustainable, how much to keep reserves at the right level and the projects needed in water, wastewater, storm water, reuse and chill water. There is no annual residual fee and staff can run models to find the optimum way to pay for them. Commissioner Romelus asked how the City assisting other utilities could be monetized. Mr. Groff responded generally, government does not do that, but utilities is run as a business. He hoped there was a way and they have partnered with a smaller consulting firm to help them do so, and through the partnership, it may be able to be monetized. Attorney Cherof advised it could be accomplished through Interlocal Agreement having cost recovery for personnel time. Mr. Groff explained a Japanese delegation come in to look at the plant and see how they run water treatment. This is the fourth or fifth international delegation has done so. The program increases quality of service and lowers costs. Commissioner McCray commented the East Water Treatment Plant generator is an eyesore. Mr. Groff advised they have a contract with a design consultant. The issue is in the middle of the project, the main generator failed. The one there is a temporary generator, and they have had it for two years. When generating power, they want to maintain a curtailed rate, which provides inexpensive electric rates for the plant. They have to run it instead of FPL giving power, the exhaust from the generator has to meet high exhaust standards. The generator is now in place and when done with the project, 12 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 it will be removed. It cost about $12K a month to rent the generator and it is a $2.5M construction project. Commissioner Romelus asked about the lighting on the water tower and learned the lighting system was struck by lightning. Staff will get backup parks for it. The red light on the top is working, but the tower has to be lit. Utilities Joe Paterniti, Utility Director, explained the budget has four components: operating cost, rehabilitation and replacement (R&R), government transfers, and the capital improvement program, which was $26M. The total operating budget was $2.2M above last year's budget. There was an increase in additional expenditures, an increase in dividends to the general fund, increase in the debt payment for the construction of the district energy facility, planned growth, new customers to take care of and additional operating costs for the system. Revenue projections matched the total cost and expenditures. Utilities had increased water and sewer revenues and chilled water sales. They also increased the general fund direct overhead, general fund dividend, R&R transfers were the same and debt service liability increased due to the $11 M bond last year for the energy facility. A fund breakdown showing changes was viewed. Utilities would hire two new equipment operator trainees to reduce dependence on US Water. One initiative was to try to hire young individuals in high school and trade schools. They partner with Pathways to Prosperity (P2P) to recruit young individuals into the organization and give them a career path to grow. The Department also sought to reclassify two contract coordinators who have degrees that need to match the existing pay scale in the City as well as the market. Completed projects included the Model Block, which is now ready for homes to be constructed. The Central Seacrest Corridor Improvements were $12 million and was ongoing. The Department was having some difficulty managing the contractor, but the issues are nearly resolved. Utilities contracted with an outside third-party public relations firm to handle the citizen complaints and concerns as opposed to the contractor's public relations firm. Commissioner McCray inquired how far into the project when staff realized it was not working. Mr. Paterniti advised it was about 10 months. The Department had a contract to use them for the Phase I, and they are now in Phase 2. The Department made plans when they realized the contractor was not working well and they issued an RFP. The local public relations firm would help the Department. The contractor was not relaying the information to Utilities timely, so they could help address the issues. The firm was trying to address them on their own and the public was not satisfied with some of the responses. Utilities has another eight to nine months on the project and they are trying to improve performance. Last year, Utilities spent $4 million on a water system. Staff updated equipment and replaced pipes. Utilities replaced a storm water and sewer system in Leisureville and was improving swales for better storm water management in those areas. The Department is upgrading utilities in the Town Square area and building the District Energy Plant. Photos of the completed Model Block was viewed as were of the Central Seacrest Corridor, which involved swale improvements, roadways, sidewalks 13 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 and some water main replacements. The District Energy system was beginning with pipe installation. Capital projects are developed using four drivers. Staff looks at capacity requirements and reviews hydraulic models of the infrastructure and water distribution and wastewater collection systems. Staff reviewed the condition assessments of equipment, as contained in the meeting backup. Enterprise Asset Management software is used for both water treatment plants and staff is expanding it to include external pumping stations, using data as opposed to institutional knowledge to improve infrastructure. There is an agreement to take over their water system in Hypoluxo. There will be improvements needed to serve that community. The City already provides water to the Town of Ocean Ridge, Briny Breezes, Village of Golf and others. Approximately 76K City residents are served and 115K customers in the service area. Vice Mayor Katz asked about the situation with the Ocean Ridge pipes and how it affected the City's ability to service them. Mr. Groff responded a workshop was held with Ocean Ridge. They appointed a committee to review their utility system. Ocean Ridge is moving forward and Mr. Groff suggested the City take ownership of the water lines. Most are in good shape, but some are bad which Ocean Ridge will have to fix. Ocean Ridge also proposed the City sewer the whole island. It would be good for the City and for Ocean Ridge. It will be 15-year phased project. One workshop a month will be held for the next few months. A new interlocal agreement is needed as the existing one is terrible and ends in 2020. There will be sewer expansion projects paid for by the new customers, not existing customers. Staff is working on new interlocal agreements with Hypoluxo and other smaller areas out west who give the City its sewer. Staff works with those entities and bring them in as customer. Each customer added pays the base fee, which pays for the infrastructure. The City has a 30-square mile service boundary. Commissioner Romelus asked about anticipated revenue for bringing in Hypoluxo and learned the City serves all their customers with wastewater, which is not new revenue. Boynton Beach served about a third of their water customers, which is 500 to 600 new customers. It was about $300K to $350K a year as additional revenue as a base rate. There is still work to be done. Commissioner McCray queried when the City would receive revenue from the chiller. Mr. Groff responded revenues would be received next year and it would be about $375K next year. The project shows within two years, it will be running in the black and in three years, the revenues will have paid anything back that was borrowed. It will pay for itself and then the City can adjust rates or take a dividend out of it. Mr. Paterniti explained all the capital projects are funded through debt service and capital reserves. Upcoming projects included membrane replacement at the West Water Treatment Plant; improve wastewater Master Lift Station bypass, Lake Drive and Potter Road in District II will be improved through a reimbursable grant of$800K, and a new lab. The City needs to double the size of the reclaimed water system to a higher level and 14 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 highly disinfected product to distribute to golf courses on the southern part of the service area that needs to be expanded in the next five years. This year, $2M was allocated for the project. He reviewed the 19/20 Capital improvement projects and rate development using utility management automation. Staff shifts projects year to year depending on the priority of the projects Operating costs use Consumer Price Indices to adjust costs, wages, salaries and energy costs to develop operating costs for the upcoming year. Commissioner McCray noted overtime went down by $20K. Mr. Paterniti responded it was due to better management of employees. They enter the data into their program and different factors to run scenarios for each operating division and they can set the rates for each unit. The programs can calculate how much to set the rates for each unit to match the operating budget/expenditures. This year, Utilities is recommending one rate to decrease and others for increases. Staff was attempting to have each utility pay for itself, but reuse will never pay for itself. Commissioner McCray asked why some municipalities have lower rates. Mr. Groff explained the difference between a base rate and consumptive rate. Customers are not paying their fair share. The city puts more emphasis on the base rate. The consumptive rate is just the cost to cover the water. Loxahatchee charges differently. Mr. Groff advised the City's rates are very competitive in the county. Mr. Paterniti said the City was increasing the water rates by 2%, decreasing wastewater rates by 1%, increasing the reclaimed rate 1.2% and the stormwater fee would increase by 50 cents. In addition, the City Commission will have to vote on the rates at the second City Commission meeting in August. Vice Mayor Katz recessed the meeting for a 20-minute break at 12:11 p.m. Vice Mayor Katz reconvened the meeting at 12:35 p.m. Ms. Oyer read the water quality report and commented there was an issue with Diane Lane. Vice Mayor Katz suggested staff contact Ms. Oyer about the matter, as it was not budget related. Harry Woodward, 685 NE 15th Place, asked if there was any money in the budget for benches and trashcans at the major bus stops on the major routes. He thought it was embarrassing for the City when entering Boynton Beach from the north. Commissioner Penserga asked how the $60K allocated to Water Plant Security under Capital Improvements was spent and if the City was doing enough to secure the water plants. Mike Lowe, Deputy Director explained they are required to repeatedly study and report any security issues to the EPA. It is a new initiative the City will respond to next year. The $60K makes improvements to camera systems, access control and automated gates. Much equipment was installed with expert advice about five years ago which is constantly upgraded and maintained depending on how the operation is functioning. 15 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 There is another program for water security pertaining to fire hydrants, which are being replaced. Mr. Paterniti commented the Department has to reevaluate their risk. Tim Howard, Assistant City Manager, explained one resolution would set a proposed millage rate. A resolution was prepared for 7.9 mils. Mr. Howard advised the City Commission will readopt a final millage rate in September. Based on what is approved if the Commission later wants to increase the millage rate, the City will have to send a first class notice to all property owners. If a lower millage rate is adopted, the notice is not needed. The second resolution is adoption of a preliminary fire assessment. Legal has both Resolution which must be read for the record. Attorney Cherof read the following regarding the Millage Rate- R19-077, a Resolution of the City of Boynton Beach, Florida adopting a proposed municipal millage rate for the General Operating Budget purposes for Fiscal Year 2019/2020 stating the roll back rate and setting forth the date, time and place of the First Public Hearing. In the body of the Resolution, it states the proposed millage rate is 7.900, which is computed for the operating budget, the roll back rate is 7.5418. The Public Hearing is September 5,2019, at 6:30 p.m.at Intracoastal Park, 2240 N. Federal Highway, Boynton Beach, Florida Motion Commissioner McCray moved to approve R19-077. Commissioner Penserga seconded the motion to maintain the millage rate. Deputy City Clerk Nieves called the roll. The vote was 4-0. Attorney Cherof read Resolution R19-076 as follows: Resolution R19-076, A resolution of the City of Boynton Beach, Florida relating to the provision of Fire/Rescue Service Facilities and programs in the City of Boynton Beach. It describes the method of assessing Fire Assessment Costs against Assessed property located within the City of Boynton Beach directing the preparation of an assessment role, authorizing a public hearing and directing the provision of notice thereof and providing and effective date. The Resolution maintains the residential rate of $120 and varying rates regarding non-residential property as follows: o Commercial - 27 cents o Industrial Warehouse - six cents o Institutional — 30 cents o Nursing Home — 30 cents 16 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 The Hearing will be at 6 p.m. on September 10, 2019, at Intracoastal Park, 2240 N Federal Highway, Boynton Beach, Florida Motion Commissioner McCray moved to approve for discussion. Commissioner Romelus seconded the motion. Commissioner McCray asked if the hardship program was still in effect and learned it was and the City will advertise it. Ms. LaVerriere explained there was an increase in applications received last year. A hardship application is available to anyone who meets the income guidelines established by the Department of Health and Human Services. The City follows what the County has as far as income per household and number of inhabitants. Applicants submit the one page application along with the required submittal forms of three months' worth of bank statements and income tax returns, which the City verifies. If approved, the $120 assessment is waived for residential owners. There is a period of time they advertise the program. The City cannot issue the application until the City approves the Resolution and then the deadline is usually October 15, or October 18. The City notifies the State and County to remove the assessment from the tax role. Commissioner McCray asked if the City refused any applications and learned one application that was denied because they did not supply the required data. Vote Deputy City Clerk Nieves called the roll. The vote was 4-0. Commissioner Romelus asked about the part-time ADA Coordinator Assistant and learned it was a new position for a sign language interpreter. Debby Majors, ADA Coordinator, responded the cost varies depending on how often the City's uses them. On average, the City spends $8,000 to $12,000 a year, and the interpreters are paid from the parking fines collected by individuals who park illegally in designated handicapped parking spaces. Ms. Majors anticipated the amount would increase. The City received great feedback from a meeting held with the deaf community and the Police Department and sign language interpreters is a service the City has to provide. Commissioner Romelus wanted to employ a Sign Language Interpreter for an ADA Assistant and incorporate the salary in the budget. Ms. LaVerriere advised the City would be growing the program. Commissioner Romelus inquired how much money the City would receive per person from the Census. Ms. Krusell explained they City would receive $1,600 per person over 10 years. Much of the advertising for the Census was gratis. The City only allocated $3,910 for advertising and would also utilize billboard advertising. Commissioner Romelus asked how the City would reallocate the $5M rent paid for the temporary City Hall, Library and Police Station locations once the permanent locations 17 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 are finished. Mr. Howard explained the rental payment to Community Facilities Partners for$4.4M will stay in the future. In next year's budget, the amount the City will pay would decrease from $5.3M to $4.4M. Depending on needs and requests, the $900K would be re-appropriated across the City. Mr. Howard only budgeted 10 months of payments with the assumption the City will move into its permanent location by August 2020. Commissioner Romelus asked about the cost the City will have to pay the County if they are managing the Election as it pertained to the $70K allocation for elections in District II and IV. Queenester Nieves, Deputy City Clerk, advised they will pay the poll workers between $70K and $80K. The County will pick up most of the cost, but if there is a run- off, the City will incur much more, perhaps an additional $50K. Commissioner Romelus noted there was $70K budgeted for the Election and $30K for the runoff. She assumed the runoff should stay and suggested if the City did not have to pay for the Election, the $70K should be reallocated to the Fire Explorer program or used for the Census line item. Ms. LaVerriere explained there would be a discussion later on about the program. Commissioner Romelus asked Chief Gregory, how many support services employees were full time and if the staffing levels were adequate for Dispatch. She queried how much overtime was paid. Chief Gregory advised there are six vacancies and Dispatch is short an Assistant Communications Manager. A search is underway and the challenge is in that there is a lot of turnover in the department. They need an active recruitment list. There is a strict background investigation and several months of training for new employees. Ms. LaVerriere advised last year,the Department was overhauled to address salary issues and reclassifications occurred. Commissioner Romelus requested an update over the next few months. Commissioner Romelus also wanted more consistency among departments on how individuals are listed on detailed expenditures. Some departments name the employee, and others just name the positions. She favored listing employee names for singular positions. Motion Commissioner Romelus moved to adjourn. Commissioner Penserga seconded the motion. The motion unanimously passed. The meeting was adjourned at 1:01 p.m. Catherine Cherry U' n Minutes Specialist 18 Budget Workshop City Commission Boynton Beach, Florida July 16, 2019 CITY-OF OY, S0149 H -ayor - Steven B,. Grant Vice M.ayor Jsti°n-Ktz orr.mf0ioner; ac McCray Commission — Christina Romelus Commiss' e — P ATTEST Cr Gibson, MMC Ci(tal Clerk g° Catherine Cherry Minutes Specialist 19 Boynton Beach Utilities E FISCAL YEAR 2019/ 20 BUDGET PRESENTATION Ir w Utility Budget Components The Utility budget contains four components: Operating Costs — The cost of producing water, producing chilled water, treating wastewater and managing stormwater and debt service Rehabilitation & Replacement (R&R) — Replacing existing equipment and pipes Government Transfers — Direct Overhead, Gen Fund Transfer, Risk and Fleet pre-funding Capital Improvement Program (CIP) — Construction of projects for capacity, regulatory requirements or upgrades to the system Budget Highlights Operating Budget $ 35,773, 108 R& R Budget: $ 7,000,000 Intergovernmental Transfers: $ 8, 166,662 Sub-total $ 50,939,770 Capital Improvement Program $ 26,231 ,500 Budget Highlights Total Operating Budget for 2019-20 $ 50,939,770 Increase Expenses from FY 18/ 19 $ 2,231 ,666 (+4.5%) Increase Expenditure Drivers: 0.5% dividend to general fund, Increased debt payment for District Energy System construction Planned growth/new customers Additional operating cost for the District Energy System, Four additional staff position for new growth and associated new equipment Budget Highlights Revenue Projections: $ 49,969,800 Fund Balance: $ 969,970 Total Revenue: $ 50,939,770 Revenue Drivers: Increased Water Revenues Increased Sewer Revenues Chilled Water Sales* Budget Highlights The following major changes include: General Fund direct overhead $3,010,000 (+ $ 160,000) General Fund dividend $3,990,000 (+ $240,000) (8.0% of gross revenue) Transfer to R & R account $7,000,000 Debt Service $7,444,383 (+ $457, 183) (2018 Bond for District Energy System - $ 11M) Changes by Division Net Reduction/ %Net Actual Expenses Current Budget Expenses&Encom. Projected Expenses Proposed Budget Reductions 17/18 18/19 as of 06/17/2019 18/19 (Manager's) 19/20 Increase to Increases to Operating Division Budget Budget - - - $518,286 $518,216 100.00% District Energy Systems $659,621 $1,958,189 $1,314,131 $1,984,365 $1,845,324 ($110,438) -5.64% Water Distribution(2810) $5,683,757 $6,590,080 $5,291,965 $6,294,641 $6,526,744 $326,141 4.95% Water Plants(2811) $1,274,130 $1,324,231 $917,011 $1,312,710 $1,354,784 $43,076 3.25% Meter Services(2814) $1,504,916 $1,620,043 $1,141,553 $1,687,843 $1,873,486 $188,778 11.65% Wastewater Collection(2815) $2,435,975 $2,861,825 $1,965,684 $2,857,505 $2,649,931 ($168,387) -5.88% Wastewater Lift Stations(2816) $4,129,069 $4,856,000 $2,983,828 $4,856,000 $4,953,120 $97,120 2.00% Regional Plant(2817) $590,611 $644,646 $444,729 $644,646 $680,159 $36,573 5.67% Lab(2819) $16,791,042 $17,911,961 $12,976,050 $18,056,091 $19,137,903 $1,195,832 6.68% Administration(2821) $1,395,291 $1,523,222 $1,078,196 $1,523,422 $1,411,090 ($112,155) -7.36% Engineering(2823) $1,103,562 $1,255,446 $822,710 $1,275,046 $1,422,852 $149,097 11.88% Stormwater(2824) $1,185,280 $1,175,261 $870,543 $1,096,243 $1,121,708 $24,533 2.09% Customer Relations(2825) $3,153,073 $6,987,200 $5,619,033 $6,985,750 $7,444,383 $458,633 6.56% Debt Services(3011) $39,906,327 $48,708,104 $35,425,433 $48,574,262 $50,939,770 $2,231,666 4.58% Totals Operational Personnel Changes Staff Additions: 1 District Energy System Operator/Maintainer - Provide operational support to new District Energy System 2 WTP Operator/Maintainer Trainee — Reduce dependence on outside vendor support 1 New Administrative Associate position — To assist with increased workload. Total net increased annual cost is $ 197,794 Staff Reclassification: (to stay competitive in market) 2 Contract Coordinators upgrading from Grade 14 to Grade 16 Total increased annual cost: $ 1 1 ,860 Current FY 18 / 19 CIP Projects Completed & Ongoing Projects 4 Value NE 1 1 th Ave (Model Block) 11911111MIMIL $ 600,000 Central Seacrest Corridor Improvements $ 12 Million Water R&R water plants, San-castle area, Dewey Heights/Seacrest $ 4.0 Million Estates watermains Sewer/Stormwater System R&R Leisureville, neighborhood $ 1 .4 Million swales Town Square Utility Improvements $ 3.0 Million District Energy System $ 11 Million Nyv 11th Avenue (Model Block) • . • ; - < . .., • • . . -• 4 I , . • 1 IV 4. -..., 'N.,- i -• - t • r ; Vir: - "-t,IOW' .. 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' • i -.-r: f :,,_ - Iss=0.17... .16 - --r. • -- --- •-1-341: f •••,..- , :ii „, '.3 ' •!---,•*--,” . • • c , .7. ... • , t •--- . . .----,-- ..... . . 1r, .! ? li •- • ' •--- •..!", 1--- , Capital Improvement Program Capital projects are developed using four drivers: Capacity requirements based on hydraulic modeling Infrastructure upgrades based on condition assessments ( Enterprise Asset Management) New customer acquisition (Growth) Regulatory changes Staff develops projects in 20 year cycles and develops additional project details for a 5 year cycle These projects are funded through debt service or capital reserves Planned FY 19/20 Capital Projects Highlights AL Planned & Ongoing Projects Value Replace West WTP Process Membranes $ 500,000 Master Lift Station 317 Forcemain Bypass $ 1 . 1 Million Lake Dr. & Potter Rd. Water & Stormwater Improvements — Partially Grant Funded $ 600,000 Utility Acquisition Improvements $ 2.0 Million Water Quality Laboratory $ 800,000 Reuse Distribution System Expansion $ 2.0 Million FY 19- 20 Capital Improvement Projects: Category Functional Utility Project ID Project Name Total Project Cost FY 2020 Colonial Estates $2,500,000 $2,500,000 Hypoluxo $2,000,000 $2,000,000 Palmer Road/Bamboo Ln.Water Main(WM) $750,000 $750,000 Distribution Distribution Transmission Main-NE 1st $900,000 $900,000 System & Meter System & Meter WM Valves Renewal&Replacement(R&R) Ongoing $180,000 Services Services Water System Annual R&R Ongoing $1,000,000 Water Meter Flex Net meter reading improvements Ongoing $61,500 Water Meter Replacement Ongoing $260,000 FY 19-20 Total $7,651,500 Category Functional Utility Project ID Project Name Total Project Cost FY 2020 Storm water & Stormwater Stormwater renewal&Replacement(R&R) Ongoing $750,000 Reuse Reuse Reuse Distribution Expansion $10,000,000 $2,000,000 FY 19-20 Total $2,750,000 FY 18 - 19 Capital Improvement Projects (Continued): Category Functional Utility Project ID Project Name Total Project Cost FY 2020 Update Sewer base map/aerial photogrammetry $700,000 $200,000 Studies/Analyses/Misc. Utility Acquisition $3,000,000 $500,000 Beach Plant Replacement $1,800,000 $1,800,000 Force Main(FM)Renewal&Replacement(R&R) Ongoing $50,000 Manhole R&R Ongoing $175,000 Ocean Ridge Wastewater Condominiums $2,200,000 $1,800,000 Odor Control Ongoing $25,000 Sewer System Pipes Annual R&R(Gravity) Ongoing $1,150,000 Collection System Plant lnfluent pipeline $900,000 $900,000 Wastewater System Silverwood Estates(Force Main) $1,000,000 $1,000,000 Improvements Emergency stationary generators or pumps R&R Ongoing $300,000 FM from MIS 319 to MLS 317 Diversion to 36"FM Ongoing $1,500,000 FM Valves and Air Release Valves R&R Ongoing $30,000 Large Sewer Meter Replacements R&R Ongoing $15,000 I Lift Station Communications Upgrade Ongoing $750,000 Pump Replacement Program R&R $900,000 $130,000 LS Control Panel R&R Ongoing $300,000 FY 19-20 Total $10,625,000 FY 19 - 20 Capital Improvement Projects (Continued): Category Functional Utility Project ID Project Name Total Project Cost FY 2020 East Wellfield Upgrade Line to East Plant $750,000 $750,000 Wellfield&Water Storage Control Telemetry $475,000 $150,000 Annual Wellfield Rehabilitation Ongoing $175,000 West Wellfield Electrical $900,000 $900,000 Replace Pumps,Sludge Pumps Ongoing $100,000 Building Repairs Ongoing $100,000 Fluoride System Upgrade $500,000 $500,000 Water Plant Repairs-Structure Ongoing $75,000 Water Plant Repairs-Treatment Ongoing $500,000 Water Supply and Water Supply and Plant Improvements Treatment Water Plant Security Ongoing $60,000 East &West Plant Repairs-Electrical/Instrumentational Ongoing $245,000 East&West Plant Repairs-Mechanical Ongoing $150,000 East WTP-Lime Slaker Replacement $105,000 $75,000 East WTP-Softener Sludge Mixer Replacement $100,000 $25,000 West-Acid Tank $100,000 $100,000 West-Water Plant Repairs-Membranes $1,500,000 $1,000,000 West WTP-Chemical Containment Area Coating Repair $100,000 $100,000 Replace Laboritory Equipment $50,000 $50,000 FY 19-20 Total $5,205,000 Rate Development using Utility Management Automation ( UMA) UMA Program incorporates the Utility's existing and projected operating and capital costs to determine utility revenue needs over a 30 to 50 year planning period. 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FY 19 - 20 Rate Setting - UMA Process • The utility reviews the Bureau of Labor Statistics cost indices • These indices assist the utility with adjustments of costs over the planning period © UNITED STATES DEPARTMENT OF LABOR deo z Xed ,c 1 F"Cr, I nbo..t_En S- I LUREALJ OF LABOR STATISTICS Subjects — data Tools f'u blicetions Economic Releases — Students — Beta Southeast Iriformation Office 1 Southeast Home Southeast Geography Southeast Subjects Southeast Archive Geonraohsc Inforrladon .› soa.theast > riews Release Consumer Price Index, South Region — May 2019 Prico.s in the South down 0.1 po.rco.nt ovo.r trio. month; up 1.4 po.rceint caviar the year The Consumer Price Index for All Urban Consumers (CPI-U) for the South declined 0.1 percent in May, the U.S. Bureau cif Labor Statistics reported today. The all items less food and energy index Inched down 0.1 percent and the food index edged down 0.2 percent over the month. The energy index also declined in May, down 0.1 percent_ (Data in this report are not seasonally adjusted_ Accordingly, month-to-month changes reflect the impact of seasonal influences.) The all items CPI-Ll for the South increased 1.4 percent from May 2018 to May 2019. Over the year, the all items less food and energy Index advanced 1.6 percent and the food index rose 1.9 percent. The energy index declined 1.7 percent over the 12 months. (See chart 1 and table 1-) Cost Adjustments - CPI Previously rates set in 201 8 for 1 year period Proposed FY 19-20 cost adjustment is based on 2019 12-month average inflation indices from US Bureau of Labor Statistics Consumer price index = 1 .4 % Wages & Salaries = 1 .3 % Energy = - 1 .7 These indices are used to adjust associated segments of the utility's operating costs and to access the needed revenue. FY 1 9 - 20 Rate Setting - UMA Process The Utility also reviews the past 3-5 years of Operating Costs for each account in each utility division. A B C F F G H I 1 K L 1 STEP1 STEP1 STEP1 STEP1 STEP' STEP2 STEP2 MAX STEP1/2 STEP3 FINAL 2 5/8/2019 OTT OF BOYNTON BEACH.FLORIDA 0.753 ESCALATION FACTOR CURRENTLY 3 9:33:21 DETAIL EXPENDITURES I 9/30/20191 2.600% USING 4 BUDGET YEAR 2019/2020 7/2/2019 PRORATED Last Year plus mdea APPROVED BASELINE DEPARTMENT FINAL 5 TWO AGO ONE AGO ACTUAL YTD ANNUALIZED TREND ESCALATED FIXED ESCALATED REQUEST 6 FY2016/17 FY 2017/18 2018/19 FY 2018/19 FY 2018/19 FT 2019/20 MAX OF RATFYFAR 7 ACTUAL ACTUAL ACTUAL ESTIMATED ESCALATED CURRENT DEPARTMENT TREND MANUAL BUDGET 8 ACCOUNT NUMBER ACCOUNT DESCRIPTION EXPENSE EXPENSE YTD EXPENDITURES THREE YEAR AVG BUDGET REQUEST BASELINE OVERRIDE FINAL 9 I DIV 10!WATER DISTRIBUTION __ 10 401-2810-536.12-10 REGULAR SALARIES/WAGES _ 825,000, 748,0.97 572,653 760 ,067 797,942 732,615 751,663 797,942 727,812 727.812 11 401-2810-536.12-20 HOLIDAY PAY - i - _ - • - - - 12 401-2810-536.14-10 OVERTIME 65,214 65,214 49,920 66,257 67,266 60,000 61,560 67,266 60,000 60,000 13 401-2810-536.15-13 SHOE ALLOWANCE 1,770 _ 1,770 1,355 1.798 1.826 1,770 1,816 1,826 2,511 2,511 14 401-2810.536.15.20 CAR ALLOWANCE 3,600 3,600 2,756y 3,658 3,713 3,600 3.694 3,713 3,600. 3.600 15 401-2810-536.19-99 NEW PERSONNEL/RECLASS - - - - - 47.288 48,517 48.517 - 16 401.2810-536.21-10 EMPLOYER FICA _ 60,592 60,592 46,382 61,561 62,499 56,456 57,924 62,499 55,870 55,870 17 401-2810-536.22-10 GENERAL EMPLOYEES PENSION 245,210 245,210 187.703 249,133 252,927 .229.458 235,424 252.927 227,855 227,855 18 401-2810-536.23-10 LIFE INSURANCE 828 828 634 841 854 311 319 854 214 714 19 401-2810-536.23-20 DISABILITY INSURANCE 2,559 2,559 1,959 2,600 2.640 2.886 2,961 2.961 2,856 2,856 20 401-2810-536.23-30 HEALTH INSURANCE 97,868 97,868 74,916 99,434 100.948 119,118 122,215 122.215 130,002 130,002 21 401-2810-536.23-32 CIGNA HSA 9,542 9,542 7,304 9,695 9.842 - - 9,842 - - 22 401-2810336.23-34 HSA • 9,000 9,234 9,234 23 401-2810-536.23-40 DENTAL INSURANCE 6,155 6,155, 4,712 6,253 6.349 7,386 7,578 7,578 7,134 7.134 24 401-2810-536.23-50 VISION INSURANCE ___739 _ 739 ___ 566 751. 762 _ 887 910 910 $71 871 25 DIV 10 WATER D ISTRIBUTION - - . - - - 26 401-2810,536.40-12 BUSINESS MEETINGS I L. 27 401-2810-536.41-15 CELLULAR PHONE/BEEPER 6,102 6,102 4,671 6,200 6,294 i 5,844 5.996 6.294 7,020 7,020 28 401-2810.536.46.20 EQUIPMENT MAINTENANCE 249 249 191 253 257 257 FY 19 - 20 Rate Setting - UMA Process ,Ami, The Utility uses all this information in the UMA tool to project the cost of operations against the current rates. •• All Utilities Annual Revenue Surplus(or Deficit) Revenue Revenue 100,000,00E Surplus or Surplus or rr Ending Detidt FY EndingDeficit 4o,000,000 Intl BATCH Comp ESCALATION s0001000 Y1 Power 4,jsylo rom tot,cul V1 Labor 1.34b eon p,e:1,996) Y1 CPI 1.4% 40,000,000 :on 1,a1,2w1 Y1 ENR 2.0% :on 19,680,302) 20,000,000 2028 16,513,368) Y2-5 Power 1.5' 2025 1312,890) Y2-5 Labor 2.6'• Y2-5 CPI 2.�fa 0 1026 8,289,270) 2027 (9,232,230) Y2-5 ENR 1.11111111111' tole 10,279,027( ;10,000,000V 2029... 11,830,6301 Y6+Power . 61,/o Y6+Labor -2.0% a(no,000) 2030 (100,7241936)10) ( Colt1 (11,1145,410) Y6+CPI 0% , ti , . d Current rate with Y6+ENR 2.0% ti° ti ti ro ti ti "' "1 " 203: 13,003,593 ti� do ti� do do 2033 (11,028,017) 1 .2 % growth in 1014 12,312,2291 (lam O&M Addl R&R Debt Service ti Addl Growth Debt Service2035 (13,685,162) Revenue 2036 (15034,142) IOW Existing Debt Service Principal Existing Debt Service Interest =Revenue Surplus or Deficit 2037 (16,301.151) I iRevs w/Rate Change&401 Draw -Original Revenue Forecast 2030 (18,272,027) 2039 (15,322,115) FY 1 9 - 20 Rate Setting - UMA Process =II . UMA program calculates the needed utility rates. P..cenl.9e of Inttialixa •s,lv.la Initial Gross Rate R� Activate Rete Set •°from Storm Cost Reuse Cost Revenue Io Chan Ch..11e Stmn, Draw 401 S1011• a Allocation t9 Alroclne^t.. Yf•n9re.rw 9a Ratee DP 09.3,1 n Oollu, IneTaaot Rout*O1aw Other UOhIV Other 91-01 obi.. Ovarrld• Memea Rat1 CN(Not MOM Rate Setting FY Ending 2020 o. 8.00% 0.00% Clear cies $ e.90 C00% Clear INFLATION•GROWTH ADJUSTMENTS 91-0 ' • • E (storm)or nnal weight. Original Rate Teoe Storm Ree Storm 1.41 0. .- sl0R}eMrylc� Por.c la 1 ChanRa To 4492 1MIIa, CI,1 Pell a incl aur Oraw Rel. w 11-. .• 1112 ► I, INN•II,H n01ny gelid^ Forecael Fill Gap Change Rete Ovenlee Rete ,Cnuno7 , , . 400 PRM w 30% 3 1 nn 0ATCH 4 MR Assts COMP ESCALATION 1020 t 3• , I4'• ..0r VI Power -1.7% 20215 2.61 241 24%_-- - 1.2% VI Labor 1.3% 2022 + 26% 2.e% 2.0% _ 1.2% Y1 CPI 1.4% 2013 1.5 24 2.6% !0% - ' 1.2% VI FNR 2.0% 2024 1.55. 2.6% 2.e% 2.0% J 1.2% - 2027 1.0". • 16% .' -- 1.2% Y2-5 Power 1.5%_ ,. 2026 4-054---..._ 4-20% �P...-' 1.2% -- Y2-3 Labor 2.1% 2027 1.0% - + _ -23% 60* -- 1.2% Y2-3 CPI 2.8% - 2020 - _ 1.2% Y2-5 INN 2029 .0% 2.11111 7. - 1.2% 2030 .' 1.2% Yee*.Power 20'0. 2031 },: 1.2% -- YLabor 2.0% 2032 24%-- - 1.2% Ye+CPI 2.0% 2034 1.2% - 17114.MR2.0% I 2034 =ii1.2% 2035 1 1.2% 'I, 1111 2036 . 2.0% 2.914 1.2% 2037 1.2% - - 2030 - -6% -73% 20% - 1.2% ,•.' ,;, {e 2039 1.696'--- ._-2766_--__-.----Ib%---. 1.2% AR Utak..Annual Revenue Surplus for Deficit) v,4141 ole 1 159 i.t. 2. .,wx,195 _ 2021 51.140.42s' 1 Ws LINa SSA75,299 ' ___ 51.7141114_ IV. IA61 _._. 51.06e.910 , 1 lri 160 1121 LYw - 59.COMOO ..,... S3A61.411 L1,I 61.1'M.S92 ..,. _ f1.....•® © 62.959.1101 L42$3 WI® 1© mASI.OSS ,.•••• 7 t_11.1 12® 6ff© JV.SU 55,59..001® ® 692511.651 __S6 n1 119® MM. 11.el,ln . .. x0.0 X9%W © 12.2241!5 f�11�49) i® )4.52),2)) 2012 5•!14931 ® MAMMA i® r rola N�0I0N1 11.1141,2•12 {. ♦ X {'p ' }6" �P' .T o 9471 290® NEM10.242.5 41.14® •,,.. WOM,712 .. ., y �. -. ,z o -. a c xni • ".ow... 6 i64N1® 4•", 13.450305 •.•.,. es•n-m Songs ••.da0,a,as 0•0Servao TaS0a0ICaw3s x017. 4444 _. - «,n 4444. �.w•.e.•s.eel,..-rot.• •.ve,e•W.av rl.rys - SY emenn • ,.,15q.Slx 39314609 1 9927,_ . • I1s60 -, -., Integrated UP Overview 1111111111111111111.11 Integrated Rah Setting 11 i - ' FY 1 9 - 20 Rate Setting - UMA Process The FY 19-20 Rate Adjustments needed to cover projected utility costs. • 2% increase in Water Rates • 1 `)/0 decrease in Wastewater Rates • 1 .2 % increase in Reclaimed Water Rate • $0.50 increase in Stormwater fee These rate adjustments will generate the revenue required to operate the utility. Water Rate Adlustments: Inside City Utility Location Class Charge Current New $Increase %Increase Future Adjustment w/Current CPI 2019 2020 2021 2022 2023 Base Monthly ° Water Inside City Commercial Charge $25.30 $25.81 $0.51 2/° $25.98 $26.35 $26.55 Tier 1(0-9 Water Inside City Commercial kgal/month) $1.69 $1.72 $0.03 2% $1.74 $1.76 $1.77 Tier 2(9-30 $3.11 $3.16 $3.18 Water Inside City Commercial kgal/month) $3.03 $3.09 $0.06 2% Water Inside City Commercial Tier 3(30-50 $4.05 $4.13 $0.08 2% $4.16 $4.22 $4.25 kgal/month) Tier 4(>50 Water Inside City Commercial kgal/month) $4.99 $5.09 $0.10 2% $5.12 $5.20 $5.24 Future Adjustment w/Current CPI Utility Location Class Charge 2019 2020 $Increase %Increase 2021 2022 2023 Base Monthly $12.99 $13.17 $13.27 Water Inside City Residential Charge $12.65 $12.90 $0.25 2% Water Inside City Residential Tier 1(0-9 $1.69 $1.72 $0.03 2% $1.74 $1.76 $1.77 kgal/month) Tier 2(9-30 Water Inside City Residential kgal/month) $3.03 $3.09 $0.06 2% $3.11 $3.16 $3.18 Tier 3(30-50 Water Inside City Residential kgal/month) $4.05 $4.13 $0.08 2% $4.16 $4.22 $4.25 Tier 4(>50 Water Inside City Residential kgal/month) $4.99 $5.09 $0.10 2% $5.12 $5.20 $5.24 Water Rate Adjustments: Outside City Future Adjustment w/Current CPI Current New Utility Location Class Charge 2019 2020 $Increase %Increase 2021 2022 2023 Water Outside City Commercial Base Monthly Charge $31.64 $32.27 $0.63 2% $32.50 $32.95 $33.20 Water Outside City Commercial Tier 1(0-9 kgal/month) $2.12 $2.16 $0.04 2% $2.18 $2.21 $2.22 Water Outside City Commercial Tier 2(9-30 kgal/month) $3.80 $3.88 $0.08 2% $3.90 $3.96 $3.99 Tier 3(30-50 Water Outside City Commercial kgal/month) $5.06 $5.16 $0.10 2% $5.20 $5.27 $5.31 Water Outside City Commercial Tier 4(>50 kgal/month) $6.23 $6.35 $0.12 2% $6.40 $6.49 $6.54 Future Adjustment w/Current CPI Utility Location Class Charge 2019 2020 $Increase %Increase 2021 2022 2023 Water Outside City Residential Base Monthly Charge $15.82 $16.14 $0.32 2% $16.25 $16.47 $16.60 Water Outside City Residential Tier 1(0-9 kgal/month) $2.12 $2.16 $0.04 2% $2.18 $2.21 $2.22 Water Outside City Residential Tier 2(9-30 kgal/month) $3.80 $3.88 $0.09 2% $3.90 $3.96 $3.99 Tier 3(30-50 Water Outside City Residential kgal/month) $5.06 $5.16 $0.10 2% $5.20 $5.27 $5.31 Water Outside City Residential Tier 4(>50 kcal/month) 56.23 $6.35 50.09 2% 56.40 I $6.49 I $6.54 Wastewater, Stormwater and Reuse Rate Adjustments: Utility Location Class Charge Current New $Increase %Increase Future Adjustment w/Current CPI 2019 2020 2021 2022 2023 Wastewater Inside City Both Accounts w/No Water $34.59 $34.24 Meter ($0.35) -1% $34.50 $34.93 $35.21 Wastewater Inside City Both Base Monthly Charge $19.16 $18.95 ($0.21) -1% $19.09 $19.33 $19.49 Sewer Commodity Wastewater Inside City Both (based on metered $2.20 $2.18 ($0.02) 0% $2.19 $2.22 $2.24 water) Utility Location Class Charge 2019 2020 $Increase %Increase Future Adjustment w/Current CPI 2021 2022 2023 Wastewater Outside CityAccounts w/No Water Both ($0.43) -1% $43.26 $42.83 $43.14 $43.68 $44.04 Meter Wastewater Outside City Both Base Monthly Charge $23.97 $23.73 ($0.24) -1% $23.91 $24.20 $24.40 Sewer Commodity Wastewater Outside City Both (based on metered $2.76 $2.73 ($0.03) -1% $2.75 $2.79 $2.81 water) Future Adjustment w/Current CPI Utility Location Class Charge 2019 2020 $Increase %Increase 2021 2022 2023 Stormwater All All Base Monthly Charge $6.00 $6.50 $0.50 8% $7.00 $7.50 $8.00 Sewer Commodity Reuse All All (based on metered $0.35 $0.36 $0.01 3% $0.36 $0.36 $0.37 water) .. Typical Customer Bills ..._ Inside City-water,sewer,stormwater,includes 10%tax on water Outside City-water,sewer Current Bill Proposed Bill Current Bill Proposed Bill Single Family 3,000 gallons $51.25 $51.86 Single Family 3,000 gallons $54.43 $54.55 Single Family 10,000 gallons $74.54 $75.13 Single Family 10,000 gallons $81.99 $82.32 Apartment Complex 10 Units 60,000 $606.75 $640.72 Apartment Complex 10 Units 60,000 $828.00 $832.78 gallons gallons Commercial Property-small retail $85.16 $85.09 Commercial Property-small retail $70.25 $70.68 3,000 gallons 3,000 gallons Commercial Property- Hospital Commercial Property-medium 3,616,000 gallons $30,044.19 $30,566.35 166,000 gallons $1,487.13 $1,501.90 Water & Wastewater Rate Comparison: 1.Residential Water and Wastewater Rate Comparison-Sorted Alphabetically Assumes Residential Meter Using 10,000 Gallons of Water per Month and Wastewater Costs for Same Usage or for Two Bathrooms"as of March 2018"Note,the City of Boca Raton and Lozahatchee River District residential wastewater charges are per bathroom Utility System Effective date Water Rates Wastewater Rates Total Bill Notes Fixed Volume Total Fixed Volume Total Boca Raton• 10/1/2018 $29.02 $8.50 $37.52 $24.50 $0.00 $24.50 $62.02 Bills bi-monthly but depicted as monthly values Town of Jupiter/Lox River 2/6/2019 $22.21 $17.80 $40.01 $26.70 $0.00 $26.70 $66.71 Water District-bills by toilet number District' Boynton Beach 10/1/2018 $12.65 $30.30 $42.95 $19.15 $15.40 $34.55 $77.50 WW charges max @ 7000 gals. Boynton Beach 10/1/2019 $12.90 $30.90 $43.80 $18.95 $15.26 $34.21 $78.01 WW charges max @ 7000 gals (Proposed) Highland Beach 10/1/201.8 $32.80 $23.50 $56.30 Could not determine volume charge,if g $28.00 $0.00 $28.00 $84.30 any Delray Beach 10/1/2018 $15.72 $12.50 $28.22 $18.04 $33.92 $51.96 $80.18 Village of 10/1/2018 $25.00 $32.60 $57.60 $16.21 $46.30 $62.51 $120.00 Wellington Palm Beach 10/1/2017 $23.08 $42.10 $65.18 $32.05 $7.10 $39.15 $104.33 Base charge($1.17 and$1.91) Gardens(Seacoast) Deerfield Beach 4/3/2019 $15.00 $36.70 $51.70 $10.98 $27.10 $38.08 $89.78 Palm Beach County 10/1/2018 $14.46 $32.20 $46.66 $16.21 $46.30 $49.92 $88.53 Lantana 10/1/2018 $21.14 $19.50 $35.88 $14.01 $20.00 $60.83 $96.71 Coral Springs 10/1/2018 $14.83 $38.90 $53.73 $22.76 $42.40 $65.16 $100.82 Riviera Beach 1/10/2018 $35.26 $29.95 $65.21 $16.94 $25.90 $42.84 $118.89 Charge;meter replacement charge; billing charge; City of Lake Worth 10/1/2018 $20.38 $119.90 $140.98 $13.62 $58.30 $71.92 $212.90 Charge plus use charge;bills by 100 gal Fort Lauderdale 10/1/2018 $7.56 $64.10 $71.66 $15.06 $90.60 $105.66 $177.32 This FY;base rate plus water/ww service West Palm Beach 10/1/2018 $22.52 $58.30 $80.82 $13.24 $58.30 $71.54 $152.36 Feet or 13 units-converted from 100 CF Hollywood 10/1/14(thru $6.76 $84.40 $91.16 $6.48 $0.00 $6.48 $97.64 10,000 gal=1336.9 cubic feet 10/1/18) (converted from CCF) Manalapan 10/24/2017 $42.85 $23.40 $66.25 554.06 $60.70 $114.76 $188.01 AVERAGE $20.79 $39.20 $59.76 $20.39 $30.42 $51.60 $110.50 Overall Utility Financial Stability with Adjusted Rates The Utility Management Automation Program allows the Utility Staff to: Project Cost increases over an extended period Develop needed rates to maintain a sustainable operation Project deb service for the CIP Ensure adequate capital reserves Next Steps Rate Resolution submitted for Commission review at the second Commission meeting in August. Publish rate tables for customers • Questions • 41011.11110 Air 4.17100111 _ •