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Minutes 07-26-94MINUTES OF THE CITY COMMISSION BUDGET WORKSHOP MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON TUESDAY, JULY 25, 1994 AT 6:30 P.M. PRESENT Edward Harmening, Mayor Lynne Matson, Vice Mayor Matthew Bradley, Mayor Pro Tem Jose Aguila, Commissioner David Katz, Commissioner Carrie Parker, City Manager Grady Swann, Finance Director Mary Munro, Budget Coordinator CALL TO ORDER Mayor Harmening called the Budget Workshop Meeting to order at 6:30 p.m. Page 228 - 1992 General Obligation Bonds Fund This is the debt service fund for the General Obligation Bonds. It reveals the amount of Ad Valorem taxes which will pay the bonds along with the principal and interest for the upcoming year. Page 231 - 1993 Publlc Service Tax Bonds Fund The revenue sources for the debt service are the utility taxes. This is a 10% tax paid on the various utilities in the City. This tax is not charged on the City's water and sewer bills. Page 235 - Summary Statement of Water & Sewer Fund When the budget for Utilities was evaluated, the Finance Department, Utilities 'and Ms. Parker reviewed it in a manner so as not to implement the fifth year of the rate increase which was previously adopted in 1990 by the City Commission. This proposed budget does not include that rate increase; however, approximately 2% has been included for growth of the system. In response to Mayor Pro Tem Bradley's question, Ms. Parker stated that the increase, if the fifth year rate increase was implemented, would have been about 15%. Page ~39 - Bond Coverage ,Requirements The Bond Coverage Requirements, as set forth in the Bond Resolution, were listed on this page. The City will meet its current Bond requirements even without an increase. Page 240 - Budget Summary of OPerating Department - Utility ,Fund The Utilities Department is divided into divisions. Each division represents a program or specific function. A short summary of the function of each division is listed in the Budget Message. - I - MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA OULY 26, 1994 Page 241 - Sun~ary o__fCapltal Outlay This is a specific listing of items included in this budget which can be found on the pages following each division. Mayor Harmening questioned the increase in Water Distribution from $31,300 in 1992/93 to $56,300 for 1994/95. Ms. Parker directed the Commissioners to Page 253 which listed the Capital outlay items including the purchase of new water meters in the amount of $24,000, and fire hydrants in the amount of $20,000. There are also allocations for general equipment and water mains. UTILITIES Pages 242 & 243 - Water & Sewer - Renewal & Replacement Expenditures and Capital Fac-~Tl~te-~-~e Expenditures These two pages will not be found anywhere else in the budget. They are included to show the Commission the projects which fall under the R&R Fund for Water and Sewer, and the Capital Facilities (impact fee charges) projects the Department will be working on during the upcoming year. These are two separate funds. Mayor Harmening inquired as to the number of feet of 2" water main which remains to be done. Mark Law stated that the Utilities Department originally identified about ten (10) miles of pipe. Four (4) miles have already been replaced, and they are trying to do two phases per year. Commissioner Aguila asked how the sewer and water mapping is being done. Peter Mazzella advised that three phases of the aerial mapping are completed. The mapping listed in this budget will complete the remainder of the City up to Lawrence Road. Once this phase is completed, we will have everything within the City boundaries and we will have to keep it up to date. It will all be on CADD, with plotted maps and it will be digitized. Ms. Parker advised that there will be a computer link between City Hall and Utilities. It is anticipated that Planning, Engineering, Water & Sewer, and Building will all be on the system within the next few years. Commissioner Katz noted that the Engineering Department had requested an AutoCADD and wondered whether or not this will be tied in with the Utilities system. Ms. Parker said the Engineering Department's request was denied because the Water & Sewer Fund, in another division, had already been purchasing the software which will allow us to add additional users. The request from Engineering was a duplicate request. Engineering will be able to tie into this system. Page 244 - Water Treatment This account was eliminated two years ago. -2- #INUTES - CITY COl~I$$ION BUDGET WORKSHOP HEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Page 248 - Nater Distribution Water Distribution handles the change out and maintenance of meters, meter taps, setting the meters, the water main replacement, repairs or broken water mains, maintains and inspects all fire hydrants and makes field locations of under- ground utilities. There are no personnel changes proposed. Mayor Harmening stated that the Fire Department used to be responsible for the inspection of the fire hydrants. He inquired as to the reason why Utilities has taken on this responsibility. Mark Law advised that a large portion of the fire hydrants are outside the City limits. To ensure that they are all inspected annually, the Utilities Depart- ment has taken on this task. No flow testing is done. Mayor Harmening questioned whether or not the City is recapturing any revenue from the County for those fire hydrants located outside the City. Mr. Law was not aware of any funds being recouped. He said there was a program where the City charged an annual fee of $75 per year. That program was eliminated several years ago. Mayor Harmening suggested investigating this situation to determine whether or not the City can recoup any of its costs. He could not see any reason for the City to supply the fire hydrants and water to the County while they are receiving the benefits on their insurance. Ms. Parker agreed to check on the program which had been in effect in order to attempt to institute a new program. Mr. Law explained that the City attempted to bill the condo associations, but it became a billing nightmare. Perhaps working with the County will be more pro- ductive. Consensus There was a consensus of the Commission that staff investigate to see whether or not the City can recoup some of the expense in this situation. Vice Mayor Matson feels the bill should be passed onto the County, and it should be their concern to bill the different associations. Bob Kenyon advised that the City of Boca Raton does charge the County, but the County charges them a similar amount for services from the County Fire Depart- ment. The Utilities Department will investigate this situation further. Page 255 - Heter Reading &Servtces There are no personnel changes proposed for this division. mendation of $15,000 for an automated meter reading system. brochure was distributed to the Commissioners. There is a recom- An information In 1990, the City went from handheld meter books to the handheld ITRON com- puters. At this point, the Meter Reading Supervisor recommends that the City go to reading meters via radio waves. -3- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Mayor Harmening questioned how much the City can cut back on meter readers once this program is implemented. Ms. Parker stated that it will be several months before the program will be up and running; however, it is anticipated that this program will result in considerable cuts in the Meter Reading staff. Page 259: Public Water Operations This division operates all of the drinking water supply wells and both water treatment plants. No personnel changes are proposed. Mayor Harmening inquired as to the completion date of the West Water Treatment Plant. John Guidry, Utilities Director, said the engineer has provided a date of August 15th, and he feels this is a believable date. The Capital equipment for this division is listed on Page 264. The major item included is the plant security system for the East and West Plants. Vice Mayor Matson questioned the increase from $4,484 to $20,000 in Line Item 367.00, Filter Element Replacement. Mr. Kenyon stated that the contractor supplied the cartridge filters for the first year. After that, the City is responsible to purchase them. Vice Mayor Matson inquired as to the expense involved in Line Item 368.00. Mr. Kenyon said this expense is for Anthracite, which is hardened black coal. In the past, the City was able to obtain this chemical from contractors who had it left over from jobs in Delray, Boca Raton and Palm Beach County. If it can be secured in the same manner, that money will not have to be spent. However, the construction projects are not available at this point; therefore, the funds had to be included in the budget. Page 265 - Public Water Maintenance This division handles the repairs and maintenance on the wells and the com- ponents of the Water Treatment Plants. No changes in personnel are proposed. Last year, the City Commission approved the purchase of a reconditioned aluminum step van. The City has been unable to find a reconditioned van; therefore, ad- ditional funds are being allocated to combine with the funds in this current year in order to purchase a new van in the upcoming fiscal year. Mayor Harmening questioned Line Item 629.00, Coating of Concrete Floors, which was listed on Page 270. Mr. Kenyon advised that this is inside the membrane building at the West Plant. It is pure concrete at this point. Mayor Harmening inquired as to whether or not the contractor used a sealer. Mr. Kenyon believed a plain sealant was used, but he does not feel it will hold up to the cleaning compounds which are used. Page 271 - Sewage Collection This division handles repairs, cleaning and replacement of the sanitary sewage system and the industrial pretreatment monitoring program. No changes in per- sonnel are proposed. There is no major capital recommended for purchase within this division. -4- MINUTES - CITY COI~IISSION BUDGET WORKSHOP HEETING BOYNTOH BEACH, FLORIDA ~ULY 26, 1994 Page 276 - Utlllt2 Pumptng Stattons This division is responsible for all of the repairs and maintenance of the 136 pumping or lift stations throughout the City. With regard to personnel, there is a title change only for Electrician Assistant to Building Mechanic. No dollars are associated with this title change. This total budget is a decrease from the 1993/94 fiscal year. Commissioner Aguila asked about the general condition of the City's emergency generators. Ms. Parker stated that the generators have been upgraded since the hurricane. Two generators were purchased during this current fiscal year. We now have five (5) generators in Public Works and seven (7) in Utilities. Mr. Law said the Utility Pumping Division will have a total of eight (8) portable generators when the one in this proposed budget is purchased. In response to Mayor Harmening's question with regard to cross-training of the employees to work the generators, Mr. Law stated that Utilities would probably take someone from Sewage Collection and put him with an experienced person. Mr. Law confirmed for Commissioner Aguila that in an emergency, we would have the necessary generators to keep the pumping stations going. Page 282 - Sewage Treatment Sewage treatment is the amount which is paid by the City at the regional plant. Page 284 - Laboratory Services This division handles the analysis of the City's drinking water and the disin- fection program. No personnel changes are recommended. The major Capital expenditure of $12,000 is for an uninterruptable power supply. This will be located at the West Water Plant. Page 289 - Utlltt~ Construction This division handles all of the utility line construction in terms of the 2" line replacement program and other replacement programs. In this division, the Supervisor has been split half time in this division and half time in the new Stormwater Utility System. The Foreman III position has been downgraded to a Foreman II. The major Capital equipment purchase is $7,500 for loader attach- ments for the John Deere equipment. Page 295 - Utilities Administration There are no personnel changes recommended in this division. The major Capital expenditure in this division is the upgrading of the CADD station and the addi- tional license for the AudoCADD user. There is a proposed expenditure of $4,200 for the Utility billing tie-in for the mapping. -5- N]:NUTE$ - CITY COl~I$$]:ON BUDGET NORKSHOP NEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Commissioner Katz pointed out that this division has a Utilities Director, two (2) Deputy Utilities Directors, and an Assistant to the Director. He questioned the need for so many positions that appear similar on paper. Ms. Parker stated that the function of the two (2) Deputy Directors involve one director handling the water side and the other handling sewer and construction. The "Assistant to" is a professional position which acts under special projects and supervises office staff and others who do not fall under one of the divisions such as sur- vey crews. They are not similar positions. Vice Mayor Matson referred to Line Item 468.00, Professional Service, and questioned who would be receiving the $5,000. Mr. Mazzella said this is a catchall for all miscellaneous technical services from the consultants including bond reports, or studies on anything which might crop up. All the other work they do is affiliated with a specific project. Vice Mayor Matson also noticed a doubling of Line Item 499.00, Other Contractual Services. Mr. Mazzella advised that this funding involves the additional com- puter equipment which is being added. This would cover maintenance and service of that computer equipment. Commissioner Aguila asked for clarification on how a determination was made that $100,000 would be required for Asbestos Abatement under Line Item 629.00. Mr. Mazzella advised that the determination was made after they secured pricing from Palm Beach County. It is a rough estimate, but Utilities felt that this amount should be included for budgeting purposes. Ms. Parker advised that since this is an Enterprise Fund, if $100,000 is budgeted and the project comes in at less than that amount, the excess funds will fall back into the Utilities General Reserve. Page 300 - Engineering This department serves as the City's engineers. The change in personnel recom- mended in this department was the layoff of the Deputy City Engineer position. Commissioner Aguila asked for clarification on the duties of the Engineering Aide I. Ms. Parker advised that the position is a current position. The department requested an upgrade, which was denied. Ms. Parker further advised that this department requested that the Engineering Inspector I be upgraded to Assistant to the City Engineer. That request was denied. They also requested that the Engineering Aide I be upgraded to Engineering Inspector. That request was also denied. Commissioner Katz inquired as to the person who will be performing the functions of the Deputy City Engineer. Ms. Parker advised that the City Engineer will perform those functions. Commissioner Katz also questioned Mr. Hall regarding whether or not he needs a new chair. Mr. Hall responded that his chair is fine. Commissioner Katz asked whether or not a new drafting machine is needed. Mr. Hukill, City Engineer, responded that to say the Engineering Department does not need equipment is foolish; however, to say they cannot function with what they have is equally foolish. Mr. Hukill would be receptive to adding equipment, but he is not ready to request it. -6- NINUTES - CITY COMMISSION BUDGET WORKSHOP NEETING BOYNTON BEACH, FLORIDA JULY 26, 1994 Page 306 - Utlllt~ B1111ng No changes in personnel are proposed. This is the department where the auto- mated call system is located. An information brochure was distributed to the Commissioners. Hs. Parker advised that this is not a voice mail system. Robin Matchett, Utilities Customer Service Supervisor, explained that the pur- pose of this phone system is to better service the customer. When the customer calls in, the first thing they will hear, if they do not reach an agent, is a recording to let them know what department they have reached. This system will route the customer directly to an agent. If the agents are busy, a message will advise the customer that all agents are busy; therefore, please hold on the line. While they are holding, they will receive information on conservation, etc. In addition, this phone system is monitored. This system will serve as a management tool and an excellent customer service. Page 311 - General Administration - Utilities This account handles the transfers, insurance, Workers' Compensation, adminis- trative charge and warehouse charge for the entire Utilities department. Page 313: Non-Departmental This account handles the depreciation for our plant and equipment as well as the depreciation on the regional plant, the City's estimate of bad debt expense and any fiscal agents fees we have for the bond payment. Page 314 - Debt Servlce This page delineated the debt service for the Utility Bonds. The total budget for Water & Sewer is $21,419,876. GOLF COURSE Page 315 - Sunmmr~ of Revenues & Expenses Ms. Parker advised that there is a proposal in this budget to change the way the annual permits are currently being handled, and it is a major change. Joe Sciortino explained that traditionally, the City has offered an annual per- mit which prepaid the greens fee for the entire year. As a result of that system, it has been necessary to either increase the annual permit, greens fee or cart fee on an annual basis to cover the normal increases of running the operation. The personnel budget at the Golf Course is approximately $1 million. Since 1989, Mr. Sciortino has felt that this is not the right way to run an Enterprise Fund. This is the traditional way of marketing permits at golf courses, but it is backwards because the more the golfers play, the cheaper their permit becomes. By doing that, the competition for available space is increased and the golfer who is not fortunate enough to have an annual permit does not get an opportunity to play the course on a regular basis. -7- .\ MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Mr. Sciortino would like to eventually phase out annual permits. Therefore, he has proposed, as a interim step, that the City initially reduce the cost of the annual permit from $750 total to $600, but that a surcharge be added. Every time annual permit players play, they will pay an additional $4.00 if they play eighteen holes on the championship course. If they play an additional nine holes, they will pay $2.00; and if they play the executive course for nine holes, theywill pay an additional $1.00. The result of this proposal is that more people can afford the permits and the purchasers will ultimately determine the cost of the permit depending on the number of times they play. Mr. Sciortino estimates that approximately 100 to 150 golfers will not like this system, or feel it is too expensive, and drop out. They will not be replaced. This will result in less competition among the permit holders for available times and there will be more times available for the greens fee player. Mr. Sciortino advised that had this proposal been implemented last year, the City would have realized an increase of $337,000 in income. In response to Commissioner Katz' question, Mr. Sciortino advised that he arrived at the surcharges by working the numbers. In working out the figureq, he arrived at a figure of an additional $50, which is the amount of increase'he would have recommended without going to this new system. Mr. Sciortino explained that in this area, any time a privately-owned public course is purchased, the first thing that is done is the elimination of all memberships. If the City had no annual permits and charged $30 a round for the entire winter season, the Golf Course could be closed on May 1st, the entire staff could be paid full salary, and the City would still break even with the revenue we are currently receiving. In response to Commissioner Aguila's question, Mr. Sciortino advised that as a courtesy, he spoke with Golf Course Advisory Committee members George Barrett, Don Fenton and Nelson List. The members are not permitted to get involved in financial arrangements in accordance with the charter. However, they felt there are a lot of positives to the implementation of the program proposed, and they support it. We currently have 800 annual permit holders. Boynton Beach residents make up 165 of those annual permit holders. There are approximately 400 permit holders who live in our annex area west of Lawrence Road. Commissioner Katz realizes that annual permit holders tend to monopolize the prime starting times. He feels the proposal should help alleviate that problem. Mr. Sciortino feels this is an advisable change, but also realizes that it will be disconcerting because other municipalities do not do this. Ms. Parker pointed out that there will be a considerable amount of complaints when this program is instituted; however, the program has been very carefully scrutinized and staff feels it is appropriate to recommend it as part of this budget. -8- NINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 26, 1994 Mr. Swann also pointed out that there was a great deal of concern from a finan- cial standpoint that 800 members could pay the bond payment. Ms. Parker said staff went over this proposal very carefully with the Bond Attorney who has no problems with it. Mayor Harmening explained that this Golf Course was founded on the proposition that there would be memberships. Mr. Sciortino agreed and explained that the lease with the County specifically says if there are memberships, they must be broken down into certain percentages. The lease does not mandate memberships. Commissioner Katz asked for clarification on the timetable for phasing out all permits. Ms. Parker stated that staff is interested to see how this proposal goes. Mr. Sciortino also proposes an additional rate change. There is currently a charge of $15.50 for cart fees and tax. He is proposing an increase to $17.50 which is still on the low end of golf in the County. This increase will generate $41,000 which will cover health benefits and adjustments in the budget. In response to Mayor Harmening's question, Mr. Sciortino advised that compared to privately-owned public courses, the fees at our course are much lower. Compared to other municipalities, we are between the resident and nonresident rates. Page 319: Golf Course AOmln/Operatlons This involves three (3) divisions. No personnel changes are recommended and the Capital expenses involve repairing the Clubhouse roof, refurbishing siding of Relief Stations, new airconditioning units in the Locker Rooms, replacing the Locker Room sink and the purchase of two {2) Walkie-Talkies. Mayor Harmening questioned the decrease in Self-Insurance, Line Item 976.00. Ms. Parker advised that the City had a decrease in the self-insurance liabili- ties based on the actuarial study which was performed. Page 325 - Golf Course Maintenance There are no personnel changes recommended. Ms. Parker explained that reserve accounts are set aside in the Golf Course Fund. Mr. Sciortino has worked out replacement schedules for the equipment. The reserve funds are shown being transferred from Operating to Reserve. When the equipment must be purchased, the funds are transferred out of Reserve into purchasing. A set schedule is in place for the replacements. Page 331 - Golf Course Carts No personnel changes are recommended. The funds for the annual golf cart replacement schedule are going into the 'Vehicle Reserve account. -9- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 26, 1994 Page 336 - Debt Service This page details the bond payments required. Con~nissioner Katz questioned how many carts will be purchased for the $46,000 which has been put in the Reserve account. Mr. Sciortino explained that they do not replace $45,000 worth of carts each year. The fleet is split into thirds. At this point, however, there are two fleets of thirty (30) carts and two fleets of fifteen (15) carts, which are replaced on a six-year cycle. This summer, fifteen (15) carts will be replaced. Next year, thirty (30) carts will be replaced. At present, there is $80,000 in the Reserve account. They will be expending $34,000. Next year, an additional $46,000 will be added and $64,000 will then be expended. That will result in a balance of $17,000 after purchasing thirty (30) new carts next year. Ms. Parker stated that the money is kept aside so as not to have a dramatic impact on the rates. Mayor Harmening asked for clarification of Line Item 951.00, Depreciation Expense. Mr. Swann advised that because of the Capital purchases, it wipes out any depreciation requirements. He stated that Mr. Sciortino has not been able to be convinced that the entire amount should be budgeted because of the Capital. Ms. Parker also stated that there is another theory of counting the Reserve money that is put into the Vehicle and Equipment Reserve as the total deprecia- tion. This is how the auditors look at it. SANITATION Page 337 - Summary o..~f Sanitation Fund The City is currently up to date on residential recycling and all of the single- family homes. Last year, we took over the commercial recycling program from the Solid Waste Authority. It has been working well. No changes are projected in the current sanitation rates. However, if Solid Waste Authority goes through with the increased assessment on the property tax bill, the City will have to reduce the rates. Mayor Harmening explained that he signed the agreement today with Solid Waste Authority guaranteeing them all of our trash. Mr. Eichorst reported that all of the cities, with the exception of Boca Raton and Lake Worth, have signed agree- ments mainly because there is no where else to take the trash. Mayor Harmening explained that he did not like the terms of the agreement. Commissioner Katz questioned the Transfer to Utilities under Appropriations on page 337. Ms. Parker explained that the Utilities Department handles all of the billing for water/sewer and garbage fees. Sanitation pays a portion of the Utility Billing costs. - 10- HINUTE$ - CITY COggI$$ION BUDGET NORKSHOP HEETIHG BOYNTON BEACH, FLORIDA JULY 26, 1994 Page 338 - Revenue Ms. Parker advised that if the City receives a Recycling Grant this year, staff is recommending that the grant funds (approximately $48,000) be applied towards Mangrove Park in addition to the $20,000 grant from the Solid Waste Authority. Page 341 - Sanitation This department is adding a half-time position of Recycling Coordinator which was split from the Public Works Department. There are no other personnel changes. As part of this year's budget, a fence will be installed around the dumpster storage area at the Old Wastewater Treatment Plant. The estimate for this fence is $8,000. This budget includes $15,000 for dumpsters and $2,900 for trash removal equipment. This department will purchase one front-end loader for commercial service, one rear-end loader and one pickup truck. We are also in the third year of our lease/purchase agreement with the Solid Waste Authority. In this budget, staff was able to set aside some reserves for vehicles. Mayor Harmening referred to Page 244, Line Item 976.00, Transfer to Self- Insurance. He questioned the dramatic increase from $12,000 to $41,600. Mr. Swann stated that the Finance Department calculated this figure. It is allo- cated by percentage. He and Ms. Parker will check the figure, but at this point, he believes the old figure was the incorrect figure. Mayor Harmening asked that a full explanation be provided tomorrow night of how such an error could have occurred. Commissioner Aguila questioned how many old dumpsters have been eliminated. Mr. Eichorst said fourteen (14) have been eliminated within the last two weeks. The department is phasing them out at a rate of four to six each month. Mr. Eichorst stated that he needs to get rid of fifty (50) old dumpsters, but he is trying to get a little more life expectancy from some of them. With regard to the fencing around the dumpsters, Commissioner Katz pointed out that a five foot fence will still allow the dumpsters to be visible from 1-95. He wondered whether or not a higher fence would block that sight. Commissioner Aguila feels a six foot fence should be sufficient along with the landscaping. Mr. Eichorst feels some of the trees from the nursery could be placed along the perimeter to act as a buffer. Consensus There was a consensus of the Commission to increase the height of the fence to six feet. - 11 - HINUTE$ - CITY COI~g4I$SION BUDGET NORKSHOP HEETING BOYNTON BEACH, FLORIDA OULY 26, 1994 VEHICLE SERVICE FUND Page 347 This is an internal service fund. The dollars in this Fund come from all of the other funds and are transferred into this account. This is the City garage which handles the purchase of City vehicles. No personnel changes are recom- mended. Commissioner Katz questioned why the Fire Inspector needs a Jeep Cherokee. Chief Jordan advised that it did not have to be a Jeep Cherokee, but the request was for a four-wheel drive vehicle. In the event of a natural disaster, the vehicles will be used for damage assessment and must be able to drive off the road. The Fire Department has two Blazers, but neither of the vehicles has four-wheel drive. In response to Commissioner Katz' question, Ms. Parker advised that vehicles purchased by the City are afforded the same warranty as those purchased by the general public. This will not be a take-home vehicle. Chief Jordan said that in the event of a storm, the individuals having duties following the storm will be able to take the vehicles home. PUBLICITY FUND Page 357 According to the City Charter, the Publicity Fund allows for two (2) mills to be assessed by the City for publicity and advertising. Since fiscal year 1991/92, the City has elected not to assess any millage for this Fund. This proposed budget continues assessing zero (0) millage, and staff is appropriating the fund balance remaining of $2,200 which zeroes out the account, plus a transfer from the General Fund of $9,800. This Publicity Fund handles the Holiday Parade and the Black Awareness Day festivities. Ms. Parker reminded the Commissioners that Boynton's centennial is approaching in the next fiscal year. No funds have been budgeted for that occasion. There have been discussions in the past about possibly celebrating this event with fireworks, etc. Commissioner Aguila is opposed to not budgeting some funds for the centennial. Ms. Parker advised that there is $6,000 in the Community Promotions account in the General Fund. That source could be used as a base for the centennial. Mayor Harmening suggested putting $15,000 towards fireworks. Charles Frederick, Recreation and Parks Director, said $15,000 would be sufficient for a minimum show of twenty (20) minutes. It would cost closer to $25,000 to put on a decent show. - 12 - NINUTE$ - CITY COHNI$SION BUDGET WORKSHOP HEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Discussion ensued regarding the date of the celebration for the centennial. Ms. Parker explained that the City of Boynton Beach will use the date when Major Boynton first visited the City. West Palm Beach and Delray Beach are doing the same. Vice Mayor Matson suggested holding the Fourth of July celebration which will also cover the centennial. Mayor Harmening recommended setting aside $25,000 for the fireworks and the cen- tennial celebration. Vice Mayor Matson offered to work with anyone who is willing to raise funds for the centennial. Ms. Parker advised that the City Commission appointed a subcommittee for the centennial which was chaired by Marci Million from the Sun-Sentinel. A preview was conducted during the G.A.L.A. There was discussion about having a week-long series of events culminating in a birthday party for Boynton as part of the G.A.L.A. or over Fourth of July. The subcommittee must begin to meet again. Vice Mayor Matson requested thermometer signs be made to be placed at specific locations throughout the City showing that we are attempting to reach a goal. This will get people involved. Ms. Parker said the Sun-Sentinel has agreed to contribute to this event. Bethesda Hospital is also part of the subcommittee. Consensus There was a consensus of the Commission to set aside $25,000, plus whatever money can be collected, for a centennial celebration to be centered around the Fourth of July. LOCAL OPTION GAS TAX FUND Page 361 This Fund provides the money for the street resurfacing program. Staff has set aside $120,000 for this program. Commissioner Aguila questioned the drastic drop in Line Item 630.14, Improve- ments-Streets. Ms. Parker said it was $81,104 in 1991-92. In 1992-93, only $100,000 was budgeted, but it was increased to $142,765 to cover resurfacing of additional streets. Only $166,000 was expended this year. The usual budget figure for this item is approximately $120,000. The City had extra funding this year because of the additional gas tax from the County. Because that additional funding will be funneled into the bus system, there was not enough money left to fund street improvements with additional dollars. Commissioner Aguila questioned the reason why the City does the upgrades at the railroad crossings. Ms. Parker said the City was notified that it is our responsibility to fund the costs when they do upgrades. They have notified the City that they planned to do upgrades in the City and no funds were budgeted. WAREHOUSE FUND Page 3,65 This is an internal service account which gets its dollars from City departments and is transferred into the Warehouse to finance materials and services. There are three (3) employees at the Warehouse. *should read, "Vice ~yorNatson suggested holdlng a week-long centennial celebration ending with the Fourth of Ouly and fireworks," - 13- '~ NINUTES - CITY COHNISSION BUDGET WORKSHOP NEETING BOYNTON BEACH, FLORIDA ~IULY 26, 1994 Mayor Harmening inquired about the large increase in Line Item 976.01, Transfer to Self-Insurance. Mr. Swann explained that according to Workers' Compensation, the Warehouse employees can no longer be classified as clerical staff. They must now be classified as municipal employees. Ms. Parker advised that all of these Self-Insurance figures will be checked. One (1) microcomputer will be purchased for the Warehouse. SELF-INSURANCE FUND Page 374 The revenue sources for this Fund are transfers from other Funds. No personnel changes are recommended. One (1) microcomputer will be purchased for under Capital. STORHWATER UTILITIES FUND Page 383 Beginning this year, we will implement the Stormwater Utilities which were approved last year. Personnel will consist of one (1) Equipment Operator II, and one half-time person. The half-time employee's time is split between Stormwater Utilities and Utilities Construction. Mayor Harmening questioned the purchase of a dump truck. Mr. Law explained that this dump truck is a replacement. The truck which is currently in use is a 1978 truck from the Water Plant. This replacement truck will be used to start the new programs for Stormwater. Ms. Parker explained that there was no clear way to determine the revenue and expenses because this is a new budget. There is a rough estimate of $400,000 in revenue and $247,00 in expenses. The remainder is being put aside in reserve for the future. MASS TRANSIT FUND Page 388 This Fund is being funded primarily from a transfer from the Local Option Gas Tax, with a small estimate the City had done last year. We carried forward $15,000 in fees from bus fares. Commissioner Katz pointed out that the estimated revenues from the bus shelters is $26,000, which is not evident in the budget. Ms. Parker said that figure was not included because we do not know how many shelters wilt be erected. The City will receive $500 per year per shelter. Commissioner Aguila recommended including a figure of approximately $3,000 to $5,000 for bus shelters. Ms. Parker also advised that this only funds six (6) bus drivers. CoTran has indicated that at least eight (8) bus drivers will be needed. There is a $50,000 contingency in this budget and any additional revenue wilt go into this budget to keep the bus system operating. - 14 - MINUTES - CITY COle4I$SION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 No funds have been included in this budget with regard to revenue we might receive from advertising on the buses. There is a Capital expense for the purchase of radios. The buses are not equipped with radios. The Mass Transit Fund budget is a rough estimate. Once CoTran sets up the routes and the employees, we will have a better estimate of the operating expenses. The budget will then be revised. RECREATION PROGRAM REVENUE FUND Page 394 This Fund began last year and it handles the fees from the City's Recreation program. There is a transfer of $50,000 to the General Fund as a result of excess revenue in the account. Commissioner Aguila questioned how the $50,000 figure was derived. Ms. Parker said the estimated revenues were set and then the expenses were subtracted. Mayor Harmening pointed out that Funfare should be charged as a direct adver- tising cost. He questioned the total cost of Funfare. Melody Green, Recreation Superintendent, said the total cost for printing for one year is $26,974.63. This figure does not include the employees' salary. Postage costs are $9,936 which is offset by advertisements. The City has taken in approximately $5,000 to $7,000 in advertising to offset part of the mailing. In Mayor Harmening's opinion, Funfare is not worth the cost. Commissioner Katz disagreed with this opinion. Commissioner Aguila does not feel the City should do away with Funfare; however, he feels Recreation should handle the publication, writing, the advertising, and mailing, etc. He does not feel it should be paid for from any other source than the Recreation budget or Enterprise Fund. Mayor Harmening questioned whether or not an audit trail exists to verify the costs of the programs. Ms. Parker said we use contract employees. Mayor Harmening asked whether or not all the supplies, etc. are charged off. Mr. Frederick said all direct costs are included. We take in 25% over expenses. Every program is tracked individually and there is a line item for every program. Mayor Harmening asked about indirect costs and requested detailed information in response. Vice Mayor Matson referred to Line Item 470.10, Training. Ms. Green said this is for Quality Management Training for the staff. There are thirty-one (31) employees and only five (5) have been through the training. This training is a management theory with practical applications which emphasizes continual improve- ment. It uses a total systems approach to continually improve and shifts authority down with an emphasis on quality. *should read, "Total Quality Management Training. - 15- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA In response to Mayor Harmening's question, Ms. Green feels the City can receive several hundreds of thousands of dollars of value from the $7,200 which will be expended. Ms. Green further explained that the TQM model emphasizes measure- ment. It tracks and charts improvements which includes responsiveness and reve- nues. Commissioner Katz feels this City has one of the finest Recreation and Parks Departments in South County. The programs are known County-wide. Commissioner Aguila is also very impressed with the dePartment. Mayor Pro Tem Bradley believes in Total Quality Management and in reworking departments or systems. He feels this is a great idea. Vice Mayor Matson heard a presentation on TQM and there are ways to measure the benefit. Vice Mayor Matson also questioned Line Item 499.00, Other Contractual Services. Ms. Green explained that that the trips and tours for senior senior citizens are 100% self-supporting. The funding was moved into Other Contractual Services for this year. Mr. Frederick pointed out that since the inception of the Funfare publication, an increase of approximately $200,000 in revenue has been realized. It is a very positive marketing tool for the Recreation Department. Mayor Pro Tem Bradley feels it can be a good marketing tool for the City as well and he feels this should be investigated in the future. The Capital improvements are listed on Page 398. CAPITAL IMPROVEMENT FUND page 399 The items listed in the Capital Improvement Fund were previously approved by the City Commission and are listed beginning on Page 399. Some of the amounts are being carried forward such as City Hall renovations. The expenditures recommended for this year appear on Page 401. After expen- ditures, there will be a balance of $592,081 in this Fund. In response to Commissioner Katz' question, Chief Dettman advised that the fif- teen {15) passenger van is for the Community Police Officers. COMMUNITY IMPROVEMENT/CRA ,FUND Page 403 There are two Ad Valorem TIF accounts 111.30 and 810.10. These accounts are comprised of the taxes which come in on the CRA. Commissioner Katz asked for clarification on how the City knows there will be an increase of 13% in TIF Ad Valorem Taxes over last year. Ms. Parker explained that the County provides an estimate of the Ad Valorem Tax base. The prelimi- nary estimates went down last year, but there are no other sources available for use in determining the budget. The County will certify a millage. If adjust- ments are necessary, revisions will be made to the budget. - 16- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA dULY 26, 1994 With regard to personnel, there is a recommendation to layoff one (1) Adminis- trative Assistant I, leaving one and one-half people in this budget. The Construction Coordinator's time will be reallocated more toward Code Enforcement and less toward Community Redevelopment. Commissioner Katz questioned whether or not a full-time position is required for Loan Specialist. Mr. Hawkins stated that the full-time position is required for the program. We are continuing the CRA (downtown) improvements and set up a $100,000 grant reserve account for the Economic Development Grant. Commissioner Katz pointed out that the project in Clipper Cove could bring a windfall, to the City of close to $500,000. He wondered if that money could possibly come to the City this year. Ms. Parker said there is a good possi- bility we could get that money this fiscal year. That money has not been budgeted and we are not sure of the amount we will.receive if we do get it. DISCUSSION ITEMS Ms. Parker advised that a list of discussion items was presented to the City Commission along with information from surveys which were conducted regarding Boat Club Park launch and load fees. Commissioner Aguila advised that after performing a short survey this morning, it became very obvious to him that boaters are totally opposed to paying a launch fee of $20 per launch. Similarly, they oppose a weekend only charge of $20 per launch. However, some of those surveyed said they would not be opposed to a fee of $100 or $150 per year. Mayor Harmening thought the line item for travel allowance had been cut. Ms. Parker explained that that line item covers her travel allowance. She added in the new travel allowance for the Assistant City Manager and the Assistant to the City Manager. Mayor Harmening feels this line item is excessive and there is no justification for increasing it from what it was. Ms. Parker advised that the budgeted item last year was for only the City Manager. The travel allowances for the Assistant City Manager and the Assistant to the City Manager were cut two years ago. She reinstated $120 per month for both of those individuals. Vice Mayor Matson feels this is a minimal amount of money and Commissioner Aguila did not feel it was out of line. In returning to the discussion on Boat Club Park, Mayor Pro Tem Bradley asked Mr. Frederick whether or not the County has looked into charging for launching. Mr. Frederick said there has been discussion about attempting to charge at some of the busier ramps on weekends only, but no decision has yet been made. In Broward County, an entrance fee is charged at some of their parks. Vice Mayor Matson feels this is double dipping since the residents are paying taxes to maintain these parks and use the facilities. - 17 - MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA ~ULY 26, 1994 Commissioner Katz pointed out that taxes support the Tennis Center, but resi- dents have to pay an hourly rate. At the Golf Course, you must pay a greens fee and cart fee on top of taxes which support it. He does not feel there is any problem with generating revenue by charging for use of the boat launch. The majority of the users are not residents. Commissioner Aguila said he is not opposed to generating some revenue, but Commissioner Katz' recommendation of $20 per launch was too high. He could be persuaded to go along with a $3.00 to $5.00 weekend only launch fee regardless of whether or not the person is a resident. Vice Mayor Matson pointed out that the charging of a fee will present a problem with collecting the money and the cars which will stack up on the roadway. If a fee is to be charged, it should be an annual fee with a sticker. Mr. Frederick said his survey reveals that 87% of 231 surveyed would prefer an annual fee over a daily fee. A decal on the boat would be preferable. If a person elects not to pay an annual fee, that person will be charged the daily fee. Commissioner Katz suggested charging $250 as an annual fee, and $10 per daily fee. Mr. Frederick said the majority of the people who use Boat Club Park are not rich people. Charging $10 per day is excessive, as is $250 per year. Mayor Harmening is opposed to this fee unless there is a genuine cost involved which cannot be covered by the City. In response to Commissioner Katz' statement, Mr. Frederick explained that one cannot compare the users of the Tennis Center with those who use Boat Club Park. At Boat Club Park, people launch their boats and leave the area. At the Tennis Center, the users remain on the facility for hours. Vice Mayor Matson feels charging for the boat launch is a disservice to the people who rely on this as their primary source of recreation. Mayor Harmening feels there is enough fat in the budget so that there is no need to charge additional fees. Commissioner Aguila asked for clarification on the surveillance cameras. DeLoach explained that if $600 is approved, it will cover the cost of two cameras. They will be put in the hallway in the location of the evidence locker. Jack With regard to Take-Home Vehicles, Ms. Parker advised that this issue is still being evaluated. Commissioner Katz questioned whether or not we are behind in replacing and updating books in the Library. Virginia Farace, Library Director, explained that in the 1989-90 budget, $110,000 was allocated for books. Since then, the budget was cut $10,000 each year until last year when it was brought back to $105,000. It has taken five years to get back to $110,000. The Library is five years behind in purchasing power. - 18- HINUTE$ - CITY COHHIS$IOH BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 26, 1994 Mayor Harmening feels the allocation is sufficient. Ms. Parker pointed out that a system of measurement which is commonly used is volumes per capita. We are in excess of two volumes per capita. Ms. Farace provided cost estimates and samples for the carpet. She displayed carpet samples which are on State contract. The price is $20 per square yard. The area which is most soiled is the area around the Circulation Desk and the pathway to Reference. That area comprises approximately 190 square yards. At $20 per square yard, the cost would be $3,800 plus $100 for matching. Ms. Farace also checked with Delray Beach where the entire Library was recently recarpeted with very good carpeting. They spent $25 per square yard. Ms. Farace recommends budgeting $25 per square yard so that there will be enough funds to select a good quality carpeting. Ms. Farace also advised that the remainder of the carpet in the Libary must be cleaned. Ms. Parker reminded Ms. Farace to include replacement of the carpet in the front foyer. Further, she wants to be certain that a quality carpet is chosen. A decision was made to discuss the millage and the reorganization tomorrow evening. However, Commissioner Aguila and Vice Mayor Matson stated they were both completely supportive of the recommendation for reorganization. ADJOURNMENT There being no further business to come before the City Commission, the meeting properly adjourned at 9:25 p.m. ATTEST: Secretary {Three Tapes} THE CITY OF BOYNTON BEACH /d Mayor Vice Mayor . P Tem Commissioner - 19- MAILING ADDRESS P.O. BOX 910 BEACH. FLORIDA 33425-910 TELEPHONE: 407-734-2424 TELECOPIER: 407-734-2497 EXECUTIVE STAFF ARLENE V. MARSH BARBARA A. RANTA DEBORAH M. ALTHOUSE SUSAN STEWART ANDREA HATHCOCK GENE MOORE LAWYER · 'JURIS DOCTOR" July 26, 1994 OFFICE LOCATION FIRST FINANCIAL PLAZA, SUITE 409 639 EAST OCEAN AVENUE BOYNTON BEACH, FLORIDA 33435 Hon. Ed Harmening, Mayor City of Boynton Beach City Hall Boynton Beach, FL 33435 Dear Mayor Harmening: I have noted with interest, newspaper reports indicating budgetary recommendations of your current City Manager with regard to stream- lining and combining various municipal personnel departments in order to effect a more responsive operation of our municipal government, and also to attain substantial savings to our tax- payers. Having served in various positions of our municipal government since 1960 as City Attorney, and as Mayor from 1989 - 1991, I am in total concurrence with the City Manager's recommendations, and further feel that on firm legal ground. OM/avm cc: City Manager City Commissioners if same are~mented, the City is