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Minutes 09-16-87 CITY OF BOYNTON BEACH BUDGET PUBLIC HEARING HELD ON SEPTEMBER 16, 1987 IN PINELAND PLAZA AT 7:30 P.M. PRESENT Nick Cassandra, Mayor Ralph Marchese, Vice Mayor Ezell Hester, Commissioner Leonard Mann, Commissioner Dee Zibelli, Commissioner Peter L. Cheney, City Manager Raymond Rae, City Attorney Betty Boroni, City Clerk Grady Swann, Finance Director The Public Hearing was called to order at 7:31 P.M. by Mayor Cassandra. AGENDA City Manager Cheney added under "Administration" a recon- sideration of action taken on 9-15-87 relative to appoint- ment of a permanent member to the Civil Service Board. Vice Mayor Marchese moved that the agenda be accepted as corrected. Motion was seconded by Commissioner Mann and carried 4-0. Citizen Comments and Question Form Mayor Cassandra requested that anyone attending the hearing who wished to speak should fill out a blue Citizen Comments and Question Form. $80 Million Outstanding Bond Mayor Cassandra stated that he had a question regarding an $80 million outstanding bond. The questions regarded how a city of 40,000 could pay such a continuing debit. City Manager Cheney agreed that the outstanding balance is about $80 million when you include principal and interest payments for the next 15 or 20 years. This is not an $80 million debt but an $80 million debt service. He noted that a large portion of that is ina revenue bond, much Of which is self supporting through the utility fund and the golf course. He added that in a growing city it is considered good financial judgment to do many of the capital projects by bonding so that the population moving into the city in the future ends up paying a share of the facilities which will benefit that future population. This is good practice in a city that is gaining population, but might not be so in one that is losing population. Mr. Nat Green~ 130 N.E. 26th Avenue, stated that he had posed the above question and now wished to speak. He asked City Manager Cheney what he meant when he said the golf course was "self sustaining." He asked if the golf course -1- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 contributes to the paying off of the bond. Mr. Cheney stated that it does as it is a mandate of the City that the golf course pay off its own debt service, its own operating costs, and its own garbage collection. Mr. Green asked if a certain percentage of the $577 paid by each member is going toward paying off the bond. Mr. Cheney stated that it was, indirectly. He added that all of the income that comes into the golf course from permit holders, cart users, greens fees, pro shop profit - all comes in as revenue which is used to pay operating expenses, including debt service (interest and principal). The same applies to the Water and Sewer Plant. Mr. Green asked if this is the case, why Mr. Cheney stated that the incoming population would help pay off the $80 million debt service. Mr. Green also questioned whether 82 percent of the City budget is personnel. Mr. Cheney noted that that was stated but that it is actually closer to 76 percent. Mr. Green asked if Mr. Cheney could run the City on the 24 percent remaining. Mr. Cheney clarified for Mr. Green that that is only the General Funds. He stated that he had not done calculations, but felt that in the utilities fund the personnel costs may be less than 76 percent due to the expensive mechanical equipment required for that operation. The General Fund is heavily service oriented according to Mr. Cheney. Mr. Green stated that he felt that $80 million was an awful big debt for 40,000 people. City Manager Cheney added that the City's average debt per capita under General Funds not including revenue funds is way below any accepted standard in munici- pal finance. He added that two bond issues were approved by voters at a referendum. When addressing the utilities system, you are talking about a 60,000 population using the ~ystem. He also added that much of the growth in this City is non-people. A heavy part of the burden of the taxes and debt service is moving to the industrial and commercial com- munity. Mr. Cheney noted that the $80 million debt is not as important in a community with a mixed economic base, because a large amount of the debt service is being paid off by places like the Mall, Motorola, and the new industry which will include Quantum Park in the future. The burden you have as a person will decrease over the years as the economic base of the City changes. Boynton Beach Women's Club Building Valerie Pleasanton, 235 S.W. 13th Avenue, member of the Boynton Beach Junior Women's Club, asked to speak. She noted that she has been a Boynton Beach resident for 30 years and has a good grasp of the history of the City. She urged the Commission to support the grant for modernization of the Boynton Beach Women's Club Building. She noted that the Junior Women's Club meets there monthly and have made -2- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 many contributions to the needy in the city - shelter, clothing, food as well as support of the autistic center. She stated that she felt the success of these endeavors was in part due to the "neat old building" as a place to hold their meetings. She extended an invitation to anyone wishing to stop by to see the building, noting that it is the only Addison-Mizner building in Palm Beach County which is open to the public. It is on the National Register of Historical Buildings and an important part of the City's history. Her group plans to sponsor a children's theater group, have a historical Boynton festival, sponsor educa- tional forums about drugs, literacy, conservation efforts, and the importance of voting. All these activities require a meeting place. Mrs. Pleasanton noted that she and her family, along with other volunteers, have spent many hours this summer helping clean up and fix up this building. She is requesting that the Commission continue to provide funds in support of this building's renovation. Mayor Cassandra expressed his disappointment that of the first $25,000 granted to this cause, only $5,000 went toward renovating the building. He noted that if another $25,000 is donated to the Women's Club he would not want the money to go for insurance as this is not getting the renovations done. Mrs. Pleasanton stated that unless the building is ensured they cannot hold fund raisers in the building, and if no fund raisers are held, there will be no building. Mayor Cassandra noted that he realized that but that had not been the stated purpose for the $25,000 request to the Commission. He added that if they request $25,000 for reno- vation, that should be the way the money is used. Mrs. Pleasanton added that the Women's Club is planning a major fund raiser this year and is also requesting grants from national organizations for historic buildings. These grants are not given unless there is civic interest in the project according to Mrs. Pleasanton. Mayor Cassandra thanked her and told her that the $25,000 is in the budget but he wants it to go for renovations. No one else wished to speak and THE PUBLIC HEARING WAS CLOSED. Mayor Cassandra asked City Manager Cheney to inform the audience on what the City staff did concerning the upcoming budget. Mr. Cheney read from his memo to the Mayor and City Commission which listed budget adjustments. These total adjustments amount to total impact of .7398 mills in regard to impact on property tax revenue. He noted that if the Commission decided to adopt the listed ~adjustment, the General Fund and Publicity Fund Tax Notice for 1987-1988 will be at rollback or 6.8411 mills, .0814 mills below the -3- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 currently ending 1986-1987 millage. When adding in the sinking fund the proposed millage will be .1194 reduction below last year. 7.4846 is the total as compared to 7.640 from last year. This is just over .7 a mill in reduction. Mr. Cheney added that he had provided the Commission with a list of items which are reductions for their consideration. Mr. Cheney noted that he had also included explanations as well as their impact. Mayor Cassandra commended Mr. Cheney on an excellent report, especially the explanations portion. Commissioner Hester thanked the Staff on recommending some cuts and asked if any services would need to be reduced. Mr. Cheney noted that it does have an impact on what the City can do. More employees are being added in Police and Fire Departments. He noted that as the City continues to grow that there will be some impact, but none of the ser- vices which have been provided will be discontinued. He noted that when you add more buildings the work load increases and more people are needed to service them. Commissioner Hester noted that he did not want the City to get into trouble further down the road and have to have a large increase. Commissioner Mann stated that he is very pleased with the City Manager,s response to the Commission's request to hold the line on taxes and he is proud of every person in the City for their part. Mayor Cassandra noted that if there is an emergenlcy that the undesignated fund will, hopefully, take.care of that emergency. City Manager Cheney noted that if the sales tax on services is reduced and not replaced by something else, the City will lose bet- ween $600,000 - $800,000 in revenue. If replaced by going from 5 percent service tax on goods (has been 6 percent) we will keep the $600,000 and may get an additional $200,000. He noted that one of the problems, is that the City is a part of what other organizations are doing. Mayor Cassandra noted that the Commission is glad to have Commissioner Zibelli back with them. Vice Mayor Marchese commended the City Manager for a job well done. Commissioner Zibelli asked for a clarification of the terms "undesignated" and "uncommitted." City Manager Cheney stated that in this case, they mean the same thing. Commissioner Hester made a motion to adopt the adjustments as presented, seconded by Commissioner Zibelli. Motion carried 5-0. -4- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 LEGAL Ordinance - 2nd Reading Proposed Ordinance No. 87-31 City Attorney Rae read Proposed Ordinance No. 87-31 in its entirety: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA STATING THE AGGREGATE MILLAGE RATE TO BE LEVIED AGAINST PROPERTY OWNERS WITHIN THE CITY FOR THE 1987-1988 FISCAL YEAR; PROVIDING THAT THE CITY MANAGER SHALL HAVE THE AUTHORITY TO ADJUST THE AGGREGATE MILLAGE RATE UPON RECEIPT OF THE FINAL TAX ROLL; PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES. During the reading Attorney Rae inserted the following figures: Section 1: SectiOn 2: 6.8411, (6.7822 General Fund, .0589 Publicity Fund), +.6435 Voted Debt Service, total 7.4846 0% Mayor Cassandra noted that THIS IS A PUBLIC HEARING. As no one wished to speak in favor or against the proposed ordinance THE PUBLIC HEARING WAS CLOSED. Commissioned Hester moved that the Proposed Ordinance No. 87-31 be adopted on second and final reading. Motion was seconded by Vice Mayor Marchese. A roll call vote was taken by City Clerk, Betty Boroni: Vice Mayor Marchese - Aye Commissioner Hester - Aye Commissioner Mann - Aye Commissioner Zibelli - Aye Mayor Cassandra - Aye Motion carried 5-0. -5- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 Proposed Oridinance No. 87-32 - 2nd Reading City Attorney Rae read PropoSed Ordinance No. 87-32 in its entirety: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1987, AND ENDING SEPTEMBER 30, 1988; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. During the reading, Mr. Rea inserted the following figures: Section 2: Section 3: Section 4: $21,188,186 $833,608 $77,000 As no one wished to speak for or against the proposed ordi- nance, THE PUBLIC HEARING WAS CLOSED. Commissioner Hester moved the adoption of Proposed Ordinance 87-32 on its second and final reading. Motion was seconded by Vice Mayor Marchese. A roll call vote was taken by Mrs. Boroni: Commissioner Hester - Aye Commissioner Mann - Aye Commissioner Zibelli - Aye Mayor Cassandra - Aye Vice Mayor Marchese - Aye Motion carried 5-0. Proposed Resolution No. 87-KKK A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPTING FINAL BUDGETS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1987 AND ENDING SEPTEMBER 30, 1988; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. City Attorney Rea read the proposed resolution in its entirety inserting the following figures: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: $3,990,680 $1,221,358 $486,614, $12,958, $1,720,930 $1,636,807 $885,829 $7,681,964 $2,020,882, $2,027,531, $11,730,377 -6- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 Mr. Rae noted that there is no public hearing on these reso- lutions. Mayor Cassandra stated to the audience that the above represents other budgets which the Commission must approve. This does not involve a millage tax. Vice Mayor Marchese moved the adoption of Proposed Resolution No. 87-KKK, seconded by Commissioner Hester. Motion carried 5-0. Proposed Resolution No. 87-LLL City Manager Cheney noted that this resolution regarding salary adjustment for all City employees, excluding the employees of the two unions, recommends an increase of 4 percent. City Attorney read Proposed Resolution No. 87-LLL: A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPTING PAY PLANS FOR FISCAL YEAR 1987/88. Commissioner Hester moved that Proposed Resolution No. 87-LLL providing for a 4 percent across the board increase in pay for all City employees excluding the employees of the two unions be approved. Motion seconded by Vice Mayor Marchese, carried 5-0. Proposed Resolution No. 87-MMM A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, REGARDING DESIGNATION OF FUND BALANCE; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. City Manager Cheney stated that this resolution relative to designation of fund balance is in response to discussions and tentative decisions made throughout the year. He noted that he had taken the day care figure out when he gave the Commission the figure for undesignated funds. He noted that this resolution will formalize that. City Attorney Rea read the proposed resolution filling in the following figures: Undesignated fund balance: Section 1: $375,000 Section 2: $1,000,000 Section 3: $100,000 $2,714,054 Commissioner Hester asked a question about the day care facility. He questioned whether there was already money for that facility. City Manager Cheney noted that there was -7- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 $125,000 previously put into capital improvement fund program, making a total of $500,000. Commissioner Mann asked if the budget for this project was $680,000. Mayor Cassandra noted that it was approximately that. Mr. Cheney noted that the City would have to decide where the rest of the money was coming from. He noted that the figure Commissioner Mann is using includes the money for the kitchen, an assumption on contingencies and an assumption on profit in addition to the estimated actual cost. He noted that that may well be less than the total figure. Vice Mayor Marchese moved that Resolution No. 87-MMM be adopted, seconded by Commissioner Mann. Motion carried 5-0. After a 10 minute break, the meeting resumed at 8:30 P.M. ADMINISTRATIVE A. Approval of Fire Union Contract City Manager Cheney stated that it was his understanding that the Fire Union met and approved their proposed contract with two conditions. He noted that he was not sure he could recommend total approval at this meeting due to the fact that the conditions the union approved are not the conditions the Commission had approved. The Union conditions are relative to benefits received by other employees. Mr. Cheney noted that he would like to talk to Union officials before final approval on this. The second condition is conditioned upon their attorney reviewing what was given them by the City. City Manager Cheney stated that he hoped the Commission would meet once more prior to the end of September assuming the bids for the new building come in as expected on the 22nd. The first meeting in October would be October 6th. Mr. Cheney recommended that this approval of Fire Union Contract be tabled. Vice Mayor Marchese-moved that approval of'Fire Union Contract be tabled, seconded by Commissioner Zibelli. Motion carried 5-0. Mayor Cassandra noted that the Commission would meet again some time after September 22, 1987. Be Approve authorization to proceed with demolition of property located at 501 N.W. 13th Avenue City Attorney Rea noted that the Commission was proceeding prior to a meeting of the Building Board of Adjustment and Appeals meeting scheduled for 9-17-87. He noted that they were proceeding under the emergency ordinances and he -8- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 suggested that the City proceed as quickly as possible with the demolition of the building, should the Building Board of Adjustment and Appeals decide to proceed in that direction. He requested, due to the fact that the Commission's next scheduled meeting is October 6th, that the authorization be given to enter into negotiations for a reasonable amount and contract for demolition of that building should the Building Board of Adjustment and Appeals decide in favor of demoli- tion. Commissioner Hester moved that authorization to proceed with demolition of property located at 501 N.W. 13th Avenue be approved. Motion was seconded by Vice Mayor Marchese and carried 5-0. Modification of the Agenda Vice Mayor Marchese made a motion to modify the ~Agenda by putting Item E. after B. Motion was seconded by Commissioner Hester and carried 5-0. E. Reconsideration of Civil Service Board Appointment City Attorney Rea noted that at the regular meeting on 9-15-87 a discussion was held on how the Civil Service Board alternates move up and how the next alternate will be selected. He noted that he had gone back and read the ordi- nances and noted that he had made a mistake. He noted that Arnold Fasano was appointed specifically as the alternate to Henry Stanley and would move up into his slot rather than Stephen Frazier as indicated previously. The next appoint- ment will be for the alternate for Arnold Fasano and will be Commissioner Zibelli's action. Mr. Rea noted that this requires no action on the Commission's part as it is automa- tic. Mayor Cassandra directed the City Clerk to write an official letter of appointment. Brief Status Report on Western Wellfield City Manager Cheney stated that they are planning a Saturday morning trip for the Commission to visit the water plant on October 10th as a group and spend some time talking about what is happening there. The group will also spend some time at the Western Wellfield site to see the workings of that demonstration project. The next stop will be the golf course for lunch and then go over the whole course, and to the maintenance building. Mayor Cassandra extended an invi- tation to Pamela Hasteryck from the Palm Beach Post and Laura Hubbard from the Sun Sentinel to accompany the group on the tour. -9- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 Cm Discuss and approve contract for Evaluation of Productivity of Eastern Wellfields and Hydrogeological Assistance in Water Use Permitting John A. Guidry, Director of Utilities next gave a presen- tation regarding the Eastern Wellfields. He estimated that the reverse osmosis or other technology plan would not be on line in the Western area until spring of 1990. He noted that with the 1986 amendments of the Safe Drinking Water Act that the City will have several major expenditures to make on the old treatment plant. He stated that he will bring information regarding this to the Commission from time to time. He noted that the City is reducing their chlorine costs by sharing with other municipalities in buying chlorine, but this will no longer be available to the City. Mr. Guidry stated that in order to solve short and long term problems with the existing treatment plant, the viability of improving the existing Eastern Wellfield needs to be investigated. He noted that there are 22 wells which need some attention - some may have to be closed. Mr. Guidry also noted that he also feared salt water intrusion. He requested approval of the Geraghty and Miller, Inc. contract to assist in evaluating the productivity of the Eastern Wellfields and in obtaining a water use permit from South Florida Water Management District. He noted that the esti- mated global price of $25,000 had been worked out, but the only figure he could be sure of is the Phase I portion. Phase II costs cannot be determined until the completion of Phase I. He recommended handling the Phase II and III por- tions with Change Orders and coming back to the Commission for an update. Mayor Cassandra asked City Attorney Rea if Florida law required this type request to be negotiated and Mr. Rea stated it did not. City Manager Cheney noted that the Geraghty and Miller firm was the only creditable one in the area. Commissioner Zibelli asked if there was money in the budget for this contract. City Manager Cheney noted that these funds will come out of the last utility bond issue which was sold for the expansion of the treatment plant and for the exploration and construction of new water facilities. He anticipates that all these preparatory costs can be paid from this fund up to the time the decision is made in May or June relative to the Western Wellfield, new treatment plant and other major modifications to the Eastern Wellfield. Around the middle of next year, he noted that the City will be proposing to the Commission an additional utility fund revenue bond in the range of $10 - $12 million. Mayor Cassandra asked how much money was in the UCIF. Mr. Cheney stated that in the bond issue there is about $1.4 -10- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 million and in the retained earnings and capital fund there is about $6 million. Mayor Cassandra next asked about the depreciation fund to replace buildings, if there is enough money in that fund or if it can be used even though it is allocated for other things. Mr~ Cheney stated that the depreciation fund can only be used to replace or improve the facilities that the depreciation money is against. Mr. Guidry noted that none of the above can take place until the permits are in place in the Eastern and Western Wellfields. Vice Mayor Marchese made a motion that the contract with Geraghty and Miller be accepted. Motion was seconded by Commissioner Hester and carried 5-0. D. Status of Western Wellfield Work Mr. Guidry next addressed the issue of reverse osmosis and pilot plant demonstration project. He noted that the two test skids have been running since August 17th and the first Technical Review of the project will be held on September 18th. He stated that the spray irrigation research project has also been running for the same period. Mr. Guidry stated that monthly meetings will be necessary to keep these projects on track. The engineers final report on the reverse osmosis project should come in January 1988. The University's final report will come in February. Test pro- duction wells (Well 1W and 12W) were completed and final report provided in June 1987. The results were encouraging - City ended up with three wells for the price of one. Two wells confirmed that the design changes were technically valid. Mr. Guidry plans to bring to the Commission on October 6th, water use projections worked out by staff and a Geraghty and Miller contract for the withdrawal permit on the Western Wellfield. He expects to be able to make design recommendations relative to treatment technology for the new plant and be under permitting for the ten additional wells and the raw water mains around April 1988. Construction should then start in 90 to 120 days. Permitting activity goes 90 days, if no problems but can extend to 120 if there are problems. He stated that construction could begin July/August 1988 with new plant in February 1990. He noted that this is an optimistic outlook. Mr. Guidry clarified that the new Safe Drinking Water Act standard of .5 has been met. He also noted that the City does not have a problem with salt water intrusion at present. There being no further business to come before the Commission, the meeting adjourned at 9:08 P.M. -11- BUDGET PUBLIC HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 16, 1987 ATTEST: ' -~ ~/ ' City Clerk Recording Secretary (Two tapes) CITY OF BOYNTON BEACH, FLORIDA ~L ~.~.~ ~~ or - Commissioner -12-