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Minutes 03-03-09 MINUTES OF THE CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, At 6:30 P.M., ON TUESDAY, MARCH 3, 2009 Present: Jerry Taylor, Mayor Ronald Weiland, Commissioner Woodrow L. Hay, Commissioner Marlene Ross, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk Absent: Jose Rodriguez, Vice Mayor I. OPENINGS: A. Call to Order - Mayor Jerry Taylor B. Invocation C. Pledge of Allegiance to the Flag led by Commissioner Ron Weiland Mayor Taylor called the meeting to order at 6:30 p.m. The invocation was given by Commissioner Hay, followed by Commissioner Weiland leading the Pledge of Allegiance to the Flag. D. Agenda Approval: 1. Additions, Deletions, Corrections Mr. Bressner suggested that Item IX.C and Item IX.B relating to the upcoming and current budgets, be tabled due to the lack of a full Commission. He did want to proceed with Item IX.A on the water rate adjustment issue. Commissioner Weiland contended Vice Mayor Rodriguez should be able to hear the presentation and any public comments on both the budget and water rate issues. Commissioner Hay did not object to tabling the issues; however, if residents were present who wanted to speak, they should be given the opportunity. Mr. Bressner suggested the consultant be permitted to make the presentation without any discussion by the Commission. The Vice Mayor would not have the benefit of the live presentation. Mayor Taylor questioned if any time constraints were involved. Mr. Bressner replied the goal would be to have the rates established by early May. Peter Mazzella, Deputy Director of Utilities, pointed out there was a State requirement of notice to the ratepayers, through the billing system, of any impeding rate change. Ultimately any new rate should be in effect by May 2009 to have sufficient funds to meet the bond 1 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 coverage test to get more funding for the capital projects. There was consensus to go forward with the agenda item. Mayor Taylor confirmed Item IX.B should also be tabled and presented in conjunction with the 2009/2010 budget discussion. Motion Commissioner Hay moved to table Items IX.B and IX.C. Commissioner Ross seconded the motion. The motion passed unanimously. 2. Adoption Motion Commissioner Hay moved to approve the agenda with the amendments. Commissioner Weiland seconded the motion. The motion passed unanimously. II. OTHER: A. Informational Items by Members of the City Commission Commissioner Hay discussed the successful Heritage Festival and the positive impact it had on the community. He was impressed with the number of City officials and staff that attended. It brought awareness of the area and brought the community and City together. Commissioner Ross mentioned the events surrounding the Grand Opening of the Library included a Gala to be held on Friday night, the Grand Opening on Saturday from 9 a.m. to 4 p.m. and a Ribbon Cutting ceremony on Monday at 3 p.m. She also highlighted there would be a Meet the Artist reception on Saturday during the Grand Opening hosted by the Art in Public Places program, from noon to 3 p.m. in the Library. III. ANNOUNCEMENTS, COMMUNITY &. SPECIAL EVENTS &. PRESENTATIONS A. Announcements: None B. Community and Special Events: None C. Presentations: 1. Proclamations 2 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 None 2. Presentations: None IV. PUBLIC AUDIENCE: INDIVIDUAL SPEAKERS WILL BE LIMITED TO 3 MINUTE PRESENTATIONS (at the discretion of the Chair, this 3 minute allowance may need to be adjusted depending on the level of business coming before the City Commission> Janet Murgano, 1034 SW 23rd Avenue, thanked everyone for their help with the CIP project and reported she had received her check to cover the damages on her vehicles. Her current concern related to the temporary diversion of traffic across her lawn and requested a metal guardrail be installed rather than planted Crotons, to minimize any safety hazard when the roadway is restored. Gertrude Sullivan, 201 NE 6th Avenue, thanked the Commission and staff who had attended the Heritage Festival and assisted in making the event a huge success. Victor Norfus, 261 N. Palm Drive, thanked the Commission for their support and advised year- round events were being planned to raise funds for the next year. John Lawrence Jolley, 515 Sunset Road, remarked he enjoyed the Heritage Festival and did not agree with not allowing people to dance at the strip mall. It was a red herring because the strip mall would remain idle for some time. Mr. Jolley felt the placement of a guardrail on Ms. Murgano's property would not be beneficial to the individual, City or the planet. Site-specific native plants would be preferable. Saw palmettos would attract bees that would help in pollination and sustaining life in the town. He suggested the world depended on the free flow of water downhill and human beings have attempted to control the flow of water that would ultimately stop life. The efforts to date needed to be reversed to maintain life. There are no Site-specific native plants or bugs to pollinate fruits, vegetables, herbs and mushrooms as a food source. Laws force people to abort growth, such as cutting grass that results in starving the birds. He urged the Commission to give more thought to their actions and reverse their previous laws to preserve life. Brian Miller, Chair of the Community Relations Board, reported the Board presented the first "road show" at the Heritage Festival. Over 20 volunteers were enlisted for the Great American Cleanup to be held on April 18, 2009. Mr. Miller also noted he had attended the first anniversary celebration of the Bethesda Heart Institute, rated in the top 5% in the United States. All citizens should be proud it is in the heart of the City and the largest employer. Herb Suss, 1711 Woodfern Drive, also attended the Heritage Festival and noted there were several historical buildings in the area that should be preserved. He announced a $1,000 grant was awarded to the Galaxy Elementary School from the Marlins baseball organization. 3 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 Mark Karageorge, 240A Main Boulevard, noted advanced planning for the holiday parade had begun and suggested the Los Lonely Boys be considered for the concert. The group embodies faith, family and fun, the symbol of the holidays. Mr. Karageorge commended the efforts of all those who made the Heritage Fest a success. No one else coming forward, Mayor Taylor closed the public audience. V. ADMINISTRATIVE: A. Appointments Appointment To Be Made Board Length of Term Expiration Date IV Ross Bldg. Bd of Adj & Appeals Reg 3 yr term to 12/11 Tabled (3) Motion Commissioner Ross nominated Richard Darby as a regular member of the Building Board of Adjustment and Appeals. Commissioner Hay seconded the motion. The motion passed unanimously. II Hay Bldg. Bd of Adj & Appeals Alt 1 yr term to 12/09 Tabled (2) I Weiland Bldg. Bd of Adj & Appeals Alt 1 yr term to 12/09 Tabled (3) IV Ross Cemetery Board Alt 1 yr term to 12/09 III Rodriguez Code Compliance Board Alt 1 yr term to 12/09 II Hay Code Compliance Board Alt 1 yr term to 12/09 Tabled (2) Motion Commissioner Hay nominated James Brake as an alternate on the Code Compliance Board. Commissioner Weiland seconded the nomination. The motion passed unanimously. Mayor Taylor Education & Youth Advisory Board Alt 1 yr term to 12/09 Tabled (3) I Weiland Education & Youth Advisory Board Stu N/V 1 yr term to 12/09 Tabled (3) Weiland Recreation & Parks Board Alt 1 yr term to 12/09 Tabled (3) II Hay Senior Advisory Bd Alt 1 yr term to 12/09 Tabled (3) III Rodriguez Senior Advisory Bd Alt 1 yr term to 12/09 Tabled (3) Motion Commissioner Hay moved to table all other appointments. Commissioner Ross seconded the motion. The motion passed unanimously. VI. CONSENT AGENDA: 4 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 Matters in this section of the Agenda are proposed and recommended by the City Manager for "Consent Agenda" approval of the action indicated in each item, with all of the accompanying material to become a part of the Public Record and subject to staff comments. A. Minutes 1. Regular City Commission - February 17, 2009 B. Bids and Purchase Contracts - Recommend Approval - All expenditures are approved in the 2008-2009 Adopted Budget. 1. Approve a piggyback on Palm Beach County Utilities of Palm Beach County, FL contract #04191C for EMU Pumps, Parts and Repairs which was awarded to Florida Bearing, Inc. of West Palm Beach, FL on December 1, 2008. 2. Approve a piggyback on Orange County Utilities of Orange County, FL Bid #Y7-1053-JS, for Flygt Pumps, Parts and Repairs which were awarded to m Flygt of Apopka, FL on July 2, 2008. (An estimated annual expenditure of $200,000 for FL YGT and EMU pumps) C. Resolutions 1. Proposed Resolution No. R09-040 RE: Approving and authorizing execution of Amendment No.2 to Task Order U07-4-2 with CDM, for additional services related to the preparation of the City Water Use Permit Application to the South Florida Water Management District. 2. Proposed Resolution No. R09-041 RE: Approving and authorizing execution of Amendment 1 to Task Order No. U08-1 with GHD Consulting, in the amount of $24,280 to integrate existing legacy, proposed and new systems in developing its Asset Management Program (AMP). 3. Proposed Resolution No. R09-042 RE: Approving and authorizing execution of the 2nd Amendment to the Interlocal Agreement between the Boynton Beach Community Redevelopment Agency and the City to provide for the installation of public improvements on SE 4th Street to reflect the revised CRA cost to $973,000 and formally defer payment until Tax Increment Funding (TIF) is received in FY2010j2011. 4. Proposed Resolution No. R09-043 RE: Approving and authorizing execution of a reimbursement agreement with Palm Beach County to accept District IV Gas Tax Funds in the amount of $300,000 to 5 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 be used for streetscape elements on SE 4th Street south of Ocean Avenue to SE 1th Avenue. 5. Proposed Resolution No. R09-044 RE: Approving and authorizing execution of a contract extension for a further two year period from June 19, 2009 with DcR Engineering Services, Inc. as permitted under RFP #037-2821-07jOD, "SCADA AND TELEMETRY SYSTEM GOODS AND SERVICES" for a total anticipated expenditure of $2.5 million over the two year period. 6. Proposed Resolution No. R09-045 RE: Approving and authorizing execution of Task Order U-09-07 with DcR Engineering Services, Inc. through RFP #037-2821-07jOD, "SCADA AND TELEMETRY SYSTEM GOODS AND SERVICES" in the sum of $1,102,151.03 plus a 5% contingency of $55,107.55 giving a total of $1,157,258.58. 7. Proposed Resolution No. R09-046 RE: Approving and authorizing extending the Interlocal Agreement which provides technical support for the Community Redevelopment Agency (CRA). The City of Boynton Beach will receive funding of $19,669 for 2009, $20,259 for 2010 and $20,867 for 2011. 8. Proposed Resolution No. R09-047 RE: Approving and authorizing application and execution of agreements and documents associated with the Florida Inland Navigation District's Waterway Assistance Program (WAP) grant on behalf of the City of Boynton Beach and further authorize the use of $32,170 in Park Impact Fees as a portion of the City's match for the grant request. 9. Proposed Resolution No. R09-048 RE: Approving and authorizing a budget amendment to utilize Park Impact Fee funds (Fund 141) in the amount of $32,170 toward the Jaycee Park Interpretive Public Art Marker Project. 10. Proposed Resolution No. R09-049 RE: Approving and authorizing a budget amendment to the 2008j09 Capital Improvement Plan for the development of NauticajMeadows Park utilizing Park Impact Fee funding (Fund 141) in the amount of $540,000. Commissioner Weiland pulled Item VI.C.lO for discussion. D. Authorize the use of $1,000 from Mayor Taylor's Community Investment Fund to support the ongoing programs of the Education & Youth Advisory Board which include the Bob Borovy Student Citizen of the Year Award and Youth Volunteer Bank. 6 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 Motion Commissioner Weiland moved to approve the Consent Agenda with the exception of Item VI.C.10. Commissioner Ross seconded the motion. The motion passed unanimously. VI.C.10 Proposed Resolution No. R09-049 RE: Approving and authorizing a budget amendment to the 2008/09 Capital Improvement Plan for the development of Nautica/Meadows Park utilizing Park Impact Fee funding (Fund 141) in the amount of $540,000. Commissioner Weiland requested monthly updates be given on the progress of the Park, while it was under construction, to answer any questions. Mr. Bressner agreed. Motion Commissioner Weiland moved to approve Item VI.C.10. Commissioner Hay seconded the motion. The motion passed unanimously. VII. CODE COMPLIANCE &. LEGAL SETTLEMENTS: A. Approve payment of settlement from court-ordered mediation in the amount of $28,000 in the case of Lenita Brunson vs. City of Boynton Beach. Motion Commissioner Weiland moved to approve Item VII.A. Commissioner Hay seconded the motion. The motion passed unanimously. VIII. PUBLIC HEARING: 7:00 P.M. OR AS SOON THEREAFTER AS THE AGENDA PERMITS The City Commission will conduct these public hearings in its dual capacity as Local Planning Agency and City Commission. None IX. CITY MANAGER'S REPORT: A. Report and Recommendation on Adjustments to Water and Wastewater Rates David Green, Economist with CH2MHill, discussed the user rate update that had been prepared. He reported the previous rate analysis was completed in 2007 and shortly afterward the South Florida Water Management District (SFWMD) implemented significant water restrictions that curtailed water usage. There had also been a decline in growth in the community along with the anticipated continuation of the water restrictions that lessens water consumption drastically. There has been a 20% reduction in water sold since 2006. 7 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 Mr. Green pointed out the revenues were less than expenditures by $3.5 million in 2008 and the projections anticipate a 2009 shortage of $6.1 million. The debt coverage requirements would not be met in 2009 without a rate adjustment. The R&R Fund had not been funded for two years and 20% of the Capital Improvement expenditures had been deferred. The financial plan assumes the R&R account would be funded at $1 million per year beginning in 2010 and the Capital Improvements would be deferred by 20% until after 2013. Funding the planned improvements to the system would require debt issuances of $13 million in 2010, $13 million in 2011, $9 million in 2012 and $12.5 million in 2013. It was anticipated that reserves would have to be utilized to fund the costs in 2009 and a rate increase would be sufficient to cover costs in 2010. The proposed rate adjustments should be implemented in April, 2009 through 2010. The two rate adjustment scenarios included a uniform percentage increase in all current rates for the base and volume charges and the other involves a 75% increase in the base facility charge and 25% increase to the commodity charges. Mr. Green pointed out 72% of the expenses relate to fixed costs, which are not affected by the commodity sold. The proposed rate change would realign the revenues and costs more evenly. A uniform change in both the base and volume charge for water and sewer with no change in the stormwater rate would be approximately $11 per month. An increase of 75% in the base charge and 25% in the volume charge and 5% increase in operation and maintenance expenses would equate to an increase of approximately $13. The average residential customer uses 8,800 gallons per month with the majority of the customer usage in the 5,000 to 7,000 range. Further reduction in the operating and maintenance expenses to a 2.5% increase each year through 2010 would represent a $11 per month and $13 per month increases over the two year period. Commissioner Hay noted it appeared the bulk of the increases would be carried by the residential users rather than commercial users. Mr. Green suggested the change in scale accounted for the illusion. Mr. Bressner noted the commercial rate structure generated a higher rate. Mr. Green noted even with the increase the City of Boynton Beach rates would be very competitive with neighboring communities. Commissioner Weiland's concern was the restricted water usage escalated problems for homeowners and a rate increase would further burden the residents. If the increases were not implemented, the worse scenario would be capital improvement projects being deferred. Mr. Green stressed a history of not taking action, to avoid not meeting the debt service requirements, would impact the bonding process for many years. Commissioner Weiland preferred both the users and the City internally take responsibility to reduce the gap between revenues and expenses. Mayor Taylor emphasized the City had maintained lower rates for many years and it was very important that the City meets its debt coverage. He felt the Commission had to take whatever steps are necessary and increase the rates to maintain the City's bonding ability. Mr. Bressner 8 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 added he was interested in reducing the operating and maintenance expense increase by only 2.5% each year. Staffing levels had been reduced and overall electrical consumption reduced by 4% to offset the Florida Power & Light 16% rate increase. However, other commodity costs have increased by 81 % in one year. Motion Commissioner Weiland moved to approve Option Bat 2.5%. Commissioner Hay seconded the motion. Mr. Bressner stressed Option B would bring the overall rate structure more in line with the current expense structure. It would buffer the utility from the consumption increases and decreases. Mayor Taylor opened the issue for public comment. Brian Miller, 2515 NE 2nd Court, concluded that residents were being penalized with the higher rates for conserving water. He questioned if anticipated growth had been considered. Mayor Taylor noted the lack of anticipated growth had been considered. Mr. Miller calculated the proposed increase was over 30% and reiterated users should be rewarded for using less. Commissioner Weiland agreed with Mr. Miller, but the reality of the situation was not based on the same logic. Herb Suss, 1711 Woodfern Drive, suggested Option Bat 5% would allow more flexibility if the growth returned. The conservation relates to the water shortage and not the rates. Don Scantlan, 13 Cedar Circle, questioned how labor was allocated and Mr. Green responded it was considered a fixed cost. Other than labor, electricity and chemicals were the other greatest fixed costs that had to be maintained to operate the facility. Mr. Scantlan cautioned that by increasing the base cost the consumer lost the ability to control their costs. He also mentioned the base rate increase would be considered a tax by the user. He agreed that Option B would be fairer to the users. On the issue of bonding, Mr. Scantlan inquired if the funding could come from some other reserve to have less of an impact on the users. Mr. Bressner advised the bond covenants require the revenue be from rate payers. Mr. Scantlan offered the option that the CIP be reduced by 50% rather than 20%. Mr. Bressner agreed that he had challenged staff to further defer projects that would not be needed immediately based on the reduced growth rate of the City. Some of the core improvements that are mission critical to improve efficiencies do need to move forward. It did need to be reviewed to reduce the debt amount and lessen the rate pressure. The motion passed unanimously. B. Analysis of Revenues and Expenditures for General and Utility Fund - Four Months Ending January 31, 2009 (This item was previously tab/ed) 9 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 C. Preliminary Discussion on General Fund Operating Budget for Fiscal 2009-2010 (This item was previously tab/ed.) X. FUTURE AGENDA ITEMS: A. Approve the report on disposition of surplus computers. (Tabled on January ~ 2009)- March 17, 2009 B. Proposed Code amendments relating to reclaimed water - March 17, 2009 C. Report on cost sharing options for take-home vehicles (In conjunction with continued budget discussions) - March 17, 2009 D. Options for Hurricane Protection Project for 1913 Schoolhouse Children's Museum (Deferred pending future grant opportunities) E. Review and consideration of approval of Auburn Master Development Agreement (Proposed Resolution No. R09-0l8) Tabled on January 20, 2009 XI. NEW BUSINESS: None XII. LEGAL: A. Ordinances - 2nd Reading - Development - PUBUC HEARING None B. Ordinances - 2nd Reading - Non-Development - PUBUC HEARING None C. Ordinances - 1st Reading None D. Resolutions: None E. Other: None 10 Meeting Minutes Regular City Commission Boynton Beach, FL March 3, 2009 XIII. UNFINISHED BUSINESS: None XIV. ADJOURNMENT: There being no further business to come before the Commission, Mayor Taylor properly adjourned the meeting at 7:44 p.m. CITY OF BOYNTON BEACH Yn.P~ ~-- ~rr/ ::frry Ta~ , a '} ~ ~7 '" \ ATTEST: t M. Prainito, CMC Clerk W07J2Z:;;~/ Marlene Ross, Commissioner 11 L ~ =' :f' ~ ~ ~ <& ~ -QO\ ~\ ~ 00~~ -"'> ~ v c.9 c. 50 ~ o ',/.//'('/ DI <~ <- p, " . .J