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Minutes 06-01-10 MINUTES OF THE CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, AT 6:30 P.M., ON TUESDAY, JUNE 1, 2010 Present: Jose Rodriguez, Mayor Marlene Ross, Vice Mayor William Orlove, Commissioner Woodrow L. Hay, Commissioner Steven Holzman, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Judith A. Pyle, Deputy City Clerk 1. OPENINGS A. Call to order - Mayor Jose Rodriguez B. Invocation C. Pledge of Allegiance to the Flag led by Vice Mayor Marlene Ross Mayor Rodriguez welcomed everyone to the meeting and called the meeting to order at 6:30 pm. The Invocation was given by Commissioner Orlove followed by the Pledge of Allegiance to the Flag led by Vice Mayor Ross. D. Agenda Approval: 1. Additions, Deletions, Corrections Attorney Cherof pointed out Item 7.A included Resolution No. R10-073. Commissioner Hay did not recall voting on the funding for the Child Care program and HeadStart program. Mayor Rodriguez explained those programs were included in the approval of the amendments to the budget for the current fiscal year. Commissioner Hay did not want it to be a closed issue because there were other concessions that could be made. He wanted a discussion of the issue placed on the agenda. After discussion there was agreement to put the item on the next agenda. Mayor Rodriguez added the referendum issue on the Community Redevelopment Agency Board to the agenda under 12. New Business, Item B. Vice Mayor Ross pulled Item 6.B for discussion. Commissioner Holzman pulled Items 6.0 thru 6.J for discussion. 2. Adoption Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 Motion Vice Mayor Ross moved to approve the agenda as amended including non-pulled Consent Items. Commissioner Hay seconded the motion. The motion passed. 2. OTHER A. Informational Items by Members of the City Commission Commissioner Holzman thanked staff for adding recycle bins behind the dais and stressed the importance of recycling at home and in the work space to promote the City as a green City. He also thanked staff and the Mayor for the Team Building Retreat and hoped the outcome would be positive. Commissioner Hay thanked the Mayor for the Retreat and commented it was very interesting and reaffirmed some aspects of the Commission. He had attended the groundbreaking for Bethesda West and felt it would be an asset to the area. He attended the 2010 Gala Installation Luncheon for the League of Cities and was blessed to have been appointed to the Board of Directors. He gave special thanks to the Mayor, Vice Mayor Ross, Commissioner Orlove, City Manager, Assistant City Manager, Director of Utilities and the Director of Public Works and Engineering for attending the luncheon and supporting the League and his participation. Commissioner Hay commended Vice Mayor Ross for her part in the Memorial Day Service held at the Boynton Beach Memorial Park and noted the City Manager and former Mayor Gerald Taylor had also attended. Commissioner Orlove remarked the Retreat was a good first step and hoped good things would come from the event. He had received citizen input commending the Fire Department and Chief and he thanked the Department for their outstanding service to the citizens. Commissioner Orlove had met with a representative of the Coalition for Safe Highways and urged the Board and citizens to call the Governor's office to veto HB 1271. The Bill related to large transportation and in part allows large semi-trucks to carry more weight. The Bill would allow the trucks to use not only Interstates, but State, County and local roads. Commissioner Orlove congratulated Commissioner Hay on his installation to the League of Cities Board of Directors. Vice Mayor Ross supported Commissioner Orlove's request for calls to veto HB 1271. She was honored to be a part of the Memorial Day services. Vice Mayor Ross represented the Boynton Beach Mental Health Initiative at the South County Mental Health Coalition meeting. She spoke at the meeting and stressed the grass roots effort in the City of Boynton Beach was impressive. Major Wendy Unger from the Boynton Beach Police Department had attended as well. Vice Mayor Ross announced the Rethink Haiti Symposium would be held with Representative Alcee Hastings in West 2 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Palm Beach at the County Government Center on June 19, at 10 am to noon. State Representative Mack Bernard would be one of the featured speakers. She congratulated Commissioner Hay for representing the City of Boynton Beach on the Board of Directors for the League of Cities. Mayor Rodriguez added his congratulations to Commissioner Hay and thanked him for his time, effort and dedication. He also thanked Vice Mayor Ross for being the speaker at the Memorial Day service. 3. ANNOUNCEMENTS, COMMUNITY & SPECIAL EVENTS & PRESENTATIONS A. Announce the upcoming Movies on the Ave. event. Kathy Biscuiti, Special Events Director, announced the movie Blind Side would be shown on June 4th, the last movie in the series. It would be shown from 8 pm to 10 pm at the Ocean Avenue amphitheater. Snacks would be available for purchase. On June 12th the Police Department's 90th anniversary party would be held on Ocean Avenue. It would include a classic car show, live music, children's activities and the unveiling of the 1953 Buick police car restored in conjunction with the Youth Violence Prevention Project. Another upcoming event was the July 4th fireworks from the Intracoastal Clubhouse beginning at 6:30 pm including a patriotic salute at 7:30 pm with the fireworks starting at 9 pm. B. Presentation by Criminal Justice Commission members, Barbara Cheives, CJC Chair; Max Davis, Youth Violence Prevention Steering Committee Chair; Mike Rodriguez, Executive Director; and Becky Walker, Program Manager regarding the Youth Violence Prevention Project (YVPP). A brief PowerPoint presentation will be included. Barbara Cheives, Criminal Justice Commission (CJC) Chair, introduced those present on her behalf and recalled areas where crime was an issue were identified five years ago. There had been three years of funding from the County and now stimulus funding used to support the many programs. Becky Walker, Program Manager, had initiated the Youth Violence Prevention Project (YVPP) four years ago and the program had undergone many changes. The program started with mapping violent crimes in the County and targeted five areas. Two Youth Empowerment Centers were established and a Justice Service Center. Partnerships were developed. The first year Boynton Beach focused on programs involving life skills with many innovative and creative programs. The City was also involved in the Violent Crimes Task Force. There was a collaborative effort with local law enforcement, State 3 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Attorney and Sheriffs office. The cost benefit was if one youth stays crime free it would save $2.2 million over a lifetime. 97% of all the youth in all the crime programs have remained crime free which is compelling evidence that the program should continue. Ms. Cheives noted the County had committed $7.3 million in the first three years, but the YVPP could not be funded through the CJC for the coming year. The Criminal Justice Commission was willing to continue to be shepherds of the program even though funding was not available. She hoped the municipalities would be able to fund the program as a whole. The County would be asked to contribute half of what they had previously given and the municipalities would be asked to contribute the other half of approximately $140,000. Mayor Rodriguez thanked the Criminal Justice Commission members for the presentation and stressed it was important for the City to keep the program in the future. It had been a priority for the Mayor since its inception. Next month would include the budget meetings and he hoped some resources could be found. He was proud of the successes and accomplishments of the programs in Boynton Beach. C. Proclaim the week of June 7-11, 2010 as Code Enforcement Appreciation Week. Receiving the proclamation on behalf of the Code Compliance Division is Diane Springer, Code Compliance Coordinator who will be introducing the Code Compliance staff. Mayor Rodriguez proclaimed the week of June 7 to 11, 2010 as Code Enforcement Appreciation Week. Diane Springer, Code Compliance Coordinator, introduced the staff in the Department. Mayor Rodriguez commented the appearance and cleanliness of the City was critical and the staff assisted in maintaining the City. Commissioner Hay commended the officers and staff for their great work. D. Announce the Happy 90th Birthday of the Charter of the City of Boynton Beach Celebration at the Boynton Beach City Library to be held on Thursday, June 10th at 2:00 pm. Anne Watts, Assistant Director of the Boynton Beach Library invited everyone to the Library on May 10th to celebrate the City's birthday. Mayor Rodriguez would be reading a book and there would be an announcement of a grant that would be received to buy more books and programs. E. Presentation on PACE program authorized by HB 7179. Commissioner Orlove questioned why this presentation was being made when the Climate Action Plan would be presented to the Commission in two weeks. Commissioner Holzman advised Paul D'Arelli was the foremost expert on PACE programs and it would give the Commission and public a sense of what the PACE 4 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 program involves. Vice Mayor Ross highlighted in two weeks the staff and COM Consultants would be presenting the Climate Action Plan and the efforts of the City's Green Community Alliance. She did not want those efforts to be overshadowed and the PACE program as it would be included in the discussions. Paul D' Are iii discussed the Property Assessed Clean Energy (PACE) program that addresses issues of clean energy and retrofits for energy efficiencies. He presented a PowerPoint presentation that is attached to the minutes and available in the City Clerk's office. Mr. D'Arelli had structured the program in the State of California and now brought the concepts to the State of Florida to get the legislation passed. Eighteen states have now passed legislation for green standards, objectives and goals. The concept involved local governments establishing an energy finance program to raise funds from a variety of sources. The funds are then paid out to property owners who opt into the program, to finance energy improvements or renewable energy on the property. The funds are repaid as a property assessment over the long term of the loan. It does stimulate the economy with jobs and spending activity. The assessment would run with the property if it would be sold. The funding limit is set at no more than 20% of the assessed value of the property, unless an energy assessment indicates there is a need for higher funding of improvements. The goal of the program was to create a self-sustaining program that would require low interest rates and minimal administrative costs with measurable reductions in energy consumption. The program would be entirely voluntary. Commissioner Orlove wanted assurance that the PACE program would be part of the Climate Action Plan. Carisse LeJeune, Assistant to the City Manager, confirmed it would be included. The goal would be to reduce the emissions to the levels that the Commission would establish for the City of Boynton Beach. There are other models that would be reviewed as well. Staff had worked with legal counsel to draft pending legislation and programs. Commissioner Holzman questioned when the Commission had hired a law firm and Ms. LeJeune advised the firm was a sub-contractor for COM, the City's consultant. Commissioner Holzman contended it was disingenuous to indicate the City had a legal consultant when COM was the only firm that had been hired. Mayor Rodriguez clarified the recourse used to pay the attorney was paid through COM as consultant. Ms. LeJeune agreed. 4. 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) 5 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Brian Edwards, 629 NE 9th Avenue, requested the Commission help celebrate his grandson's birthday who was 10 years old. Jakean had almost drowned 5 and % years ago on Christmas Day and was lifeless for six days thereafter. He thanked the neighbors, paramedics and police officers for their professional and life-saving response and the hospital and schools who have helped him to recover and become an honor student. He reminded the community how powerful team work can be. Floyd Zonenstein, 2620 NE 1st Court, representing Village Royale on the Green, requested assistance from the City to have the Boynton Beach Police Department patrol their community. The stumbling block has been a hold harmless clause that the Sheriffs office does not hold the complex liable. He wanted the same arrangement made with the Boynton Beach Police Department rather than outsiders. Mayor Rodriguez assured Mr. Zonenstein that there had been discussions with staff and hopefully the issue could be resolved as requested. Commissioner Hay inquired why the situation had arisen. Chief Immler advised there are agreements with many municipalities that officers off duty can cover events and areas. The contract is signed when off duty officers are requested. The clause is covered under Statute and both the Sheriffs Department and Boynton Beach PO would have the same liability. The City would be ill-advised to take over the contract. Pablo Del Real, 521 Southridge Road, Delray, representing the WXEL Advisory Board on the proposed license transfer to Classical South Florida, wanted to advise on the community and City's possible role in the transfer. A public forum had been held and the comments received overwhelmingly supported local programming to serve local needs and interests. The purchaser was America Media Group based in Minnesota. He asked the Commission to contact the State Board of Education who can approve or reject the transfer and voice the Commission's support of local programming. Don Scantlan, 13 Cedar Circle, as a veteran, thanked the City for a beautiful Memorial Day service and honoring all those who had sacrificed their lives. As a representative of the Workforce Alliance, Phase III of the Florida Back to Work Program, $7.7 million would be coming to the County. There were 700 jobs available for those who have a minor in the household and a household income below 200% of the federal poverty level. A youth program would be held June 14 to 26 to assist those seeking employment for ages 16 to 21 . Murray Green, President of the Community Broadcast Foundation for Palm Beach County and the Treasure Coast, spoke on the importance of keeping WXEL in Boynton Beach with local management. Boynton Beach is the home base for a radio station that serves the 47th largest radio market in the country and the 38th largest television market. There are 780,000 households in the market and 1.5 million people over the age of 18. A market of this size should have its own public radio and television station to serve the 6 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 community. The Minnesota company wanted to provide a classical music station, 24 hours a day, with programming from Minneapolis for a total loss of service to the community. The purchaser has made no commitment to stay in the building and will maintain a staff of only seven. He urged the City to contact the State Board of Education in opposition to the license transfer. Mr. Bressner added the property was conveyed to the Broadcasting Corporation in the mid 1990s. The City has no interest in the property. There is language in the title that it be maintained or utilized for a broadcasting purpose. There is some language that it could revert back to the City. Commissioner Hay questioned if it would not be to the City's advantage to support WXEL. Attorney Cherof advised the Commission could not act on the matter because it was not an agenda item for decision. Commissioner Orlove agreed, but wanted more background information. Bryce Combs, Vice President of the Community Broadcasting Foundation and a member of the WXEL Advisory Board echoed the concerns that it was very important WXEL remain a part of the community with local ownership, local board direction and local management. The building is owned by the State. There could be 60 jobs if the station were fully funded with a local board directing the fund raising necessary to bring the station up to full service. It was a huge asset. It was important the Commission act as soon as possible. There are currently under 30 jobs. Cliff Madison, represented the Strategic Broadcast Media, Inc, a 501c3 located in Delray Beach and supported the position of the previous speakers. Information was provided and he urged the Commissioners to review the data provided. The State Board of Education would have to approve any transfer of license, with the next meeting June 15th. WXEL was not on the June 15th agenda. Without the Board approval the transfer would not go for approval by the FCC. Commissioner Holzman inquired if a letter could be sent at least asking that the matter not be considered at their June 15th meeting. Attorney Cherof suggested the matter be discussed at a Special City Commission meeting held in conjunction with the regularly scheduled Community Redevelopment Agency Board meeting. Notice would be provided to the community. There was consensus to have a Special City Commission meeting on June 8th to discuss the sale of WXEL. Herb Suss, 1711 Woodfern Drive, reiterated his contention that an agency of the City had workers supporting a candidate during duty hours at a special event. He referred to the CRA Human Resources Policy Manual and the section relating to political activities. He requested an investigation into the possible infraction by City employees. 7 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 Commissioner Orlove inquired of the City Attorney if any individual could file a complaint with the Division of Elections. Attorney Cherof advised this type of issue would not be filed with the State. The CRA Board itself would have to institute an investigation and review the matter. No one else coming forward, Mayor Rodriguez closed Public Audience. 5. ADMINISTRATIVE A. Appoint eligible members of the community to serve in vacant positions on City advisory boards. Motion Commissioner Orlove recommended Susan Indilicato to serve as a member of the Golf Advisory Committee. Commissioner Hay seconded the motion. The motion passed. Motion Commissioner Hay moved to table all other appointments. Commissioner Holzman seconded the motion. The motion passed. B. TABLED 5/18/10-Appoint members to the Financial Advisory Committee. Motion Vice Mayor Ross moved to remove the Item from the table. Commissioner Hay seconded the motion. The motion passed. Mr. Bressner reviewed a spreadsheet that indicated if the applicants were eligible and if they would be for a general or specialized appointment. The Ordinance indicated five members had to have business expertise, be a resident of the City or an officer of a company registered in the City of Boynton Beach. The four remaining members would be general members as residents of the City without any specific business expertise. Commissioner Hay noted there are not sufficient qualified applicants to fill the Board. Attorney Cherof advised the Board would not be formed until the full Board was appointed including the two alternates. Of the eligible applicants, only two were active business owners and four would be general residents. Commissioner Hay inquired about the possible cost of forming a new board. Mr. Bressner noted there would be general staff time, minute taking and other administrative costs. They would be subject to Sunshine Laws. The Board itself could incur some costs. 8 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 Mayor Rodriguez wanted to appoint the six who were eligible and wait for more applications. Staggered term limits would also have to be determined of three for three, two for two and two for one. It was indicated that Mr. Scantlan would be required to tender his resignation from the Veterans Advisory Commission. Vice Mayor Ross appointed Don Scantlan for a three-year term. Commissioner Orlove appointed Glenn Jergensen to a three-year term. Mayor Rodriguez appointed William Shulman to a three-year term. Commissioner Hay appointed George Feldman for a two-year term. Commissioner Holzman appointed Michael Madalena to a two-year term. Commissioner Holzman appointed David Madigan for a one-year term. Motion Commissioner Hay moved to approve the financial appointments. Commissioner Holzman seconded the appointments. The motion passed. Commissioner Hay confirmed the Board would be ongoing until abolished by the City Commission and would be called during budget discussions and at the discretion of the Commission. 6. CONSENT AGENDA 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. Approve the Minutes from the City Commission meeting held on May 18, 2010. B. Accept monthly report on the major projects being completed by the Recreation and Parks Department. Vice Mayor Ross had pulled this item for discussion. She wanted to highlight some of the projects such as Jaycee Park slated for completion in October and the boardwalk at Oceanfront Park. Wally Majors, Director of Recreation and Parks, reported the Oceanfront Park project was moving along ahead of schedule. The south end of the boardwalk ana a railing had been installed. A ribbon cutting ceremony may be able to be scheduled in October or November. Debby Coles-Dobay, Public Art Administrator, reported the Jaycee Park interpretive markers should be completed in October. Vice Mayor Ross pointed out the retrofit at Hester Park was part of the Climate Action Plan. 9 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Motion Vice Mayor Ross moved to approve. Commissioner Holzman seconded the motion. The motion passed. C. PROPOSED RESOLUTION NO. R10-063 - Approve an Agreement for Water Service outside the city limits with Doc's Realty -Yves Semeah for the property at 7795 Terrace Road & 7805 Terrace Road, Lantana, FL. D. PROPOSED RESOLUTION NO. R10-064 - Approve the service agreement between the City of Boynton Beach and Sister's and Sista's Life Enrichment program, authorizing the City to enter into an agreement to sub-grant funding in the amount of $13,500 to Sandra Watson (Sister's and Sista's Life Enrichment) as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) E. PROPOSED RESOLUTION NO. R10-065 - Approve the service agreement between the City of Boynton Beach and Tevis Gardenhire (Art is Motivation) authorizing the City to enter into an agreement to sub-grant funding in the amount of $10,600 to the Art as Motivation program as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) . F. PROPOSED RESOLUTION NO. R10-066 - Approve the service agreement between the City of Boynton Beach and Greg Russo (Russo Consulting Group, Inc.) authorizing the City to enter into an agreement to sub-grant funding in the amount of $10,600 to Mr. Russ's Computer Concepts program as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) . G. PROPOSED RESOLUTION NO. R10-067 - Approve the service agreement between the City of Boynton Beach and Gary Davis (Art of Film-Making AudioNisual Life Skills) authorizing the City to enter into an agreement to sub- grant funding in the amount of $28,000 to the Art of Film-Making AudioNisual Life Skills as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) H. PROPOSED RESOLUTION NO. R10-068 - Approve the service agreement between the City of Boynton Beach and Richard Brochu authorizing the City to enter into an agreement to sub-grant funding in the amount of $13,300 to Richard Brochu (Hooked on Fishing, Not on Drugs) as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) 10 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 I. PROPOSED RESOLUTION NO. R10-069 - Approve the service agreement between the City of Boynton Beach and R. M. Lee Community Development Center authorizing the City to enter into an agreement to sub-grant funding in the amount of $30,000 to the Center as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) J. PROPOSED RESOLUTION NO. R10-070 - Approve the service agreement between the City of Boynton Beach and Kayla Lundy authorizing the City to enter into an agreement to sub-grant funding in the amount of $5,000 to the Ms. Lundy's Success Teen program as a partner in the continued planning and implementation of the Youth Violence Prevention Program (YVPP) Commissioner Holzman had collectively pulled Items 0 thru J for discussion. He wanted assurances that the organizations or individuals were truly non-profit entities and there was overriding governance to ensure transparency. Mr. Bressner explained the rules for the Youth Violence Prevention Program did not mandate the service providers be non-profit organizations. The funding is on a reimbursement basis in terms of accountability and deliverables as far as service. Mr. Majors added the providers have to provi'de proof of insurance to protect the City. Mayor Rodriguez noted there are measurable standards monitored for each participant to hold the providers accountable for results. Motion Commissioner Holzman moved to approve Item 0 thru J. Commissioner Hay seconded the motion. The motion passed. K. PROPOSED RESOLUTION NO. R10-071 - Approve an award of the RFP # 044-2821-10/CJD for the Harvesting of Private & Public Canal Systems at Specific Locations to SANTEE MODULAR HOMES, INC. of Santee, SC being the lowest most responsive bidder having met all the specifications in the sum of $44,000.00 and to authorize the contractor and Utilities personnel to gain access to private canals based upon the receipt of access licenses from the majority of residents. L. Approve the fourth (4th) reduction of a performance bond in the amount of $1,105,633.12 for improvements to Old Boynton Road by Boynton Town Center and Boynton Village from $1,325,633.12, leaving an amount of $220,000. 7. BIDS AND PURCHASES OVER $100,000 11 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 A. Award Bid #033-2821-10/JA, for the "TWO-YEAR BID FOR THE SUPPLY AND INSTALLATION OF WATER SERVICE CONNECTIONS AND RESTORATION" to Line-Tee of Delray Beach, with an anticipated expenditure of approximately $700,000.00 over the next two years. Motion Commissioner Hay moved to approve Resolution No. R 10-073. Commissioner Holzman seconded the motion. The motion passed. 8. CODE COMPLIANCE & LEGAL SETTLEMENTS None 9. PUBLIC HEARING 7 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. Attorney Cherof administered an oath to all those who would be testifying and reviewed the procedure to be followed. A. Approve a variance from the City of Boynton Beach Land Development Regulations, Chapter 2, Zoning, Section 11.H.16.a.(8) allowing for a reduction in the number of required parking spaces from 53 to 46, resulting in a variance of 7 spaces for Timeless Life Care (ZNCV 10-005) located at 623 South Federal Highway. Applicant: Eastside Lofts Development, LLC. THE ITEM WAS TABLED TO JUNE 1ST SO THAT FINAL ACTION COINCIDES WITH 2ND READING OF CORRESPONDING REZONING ITEM. B. Approve Timeless Life Care Conditional Use (COUS 10-001) and New Site Plan (NWSP 10-004), for an assisted living facility providing 144 beds within 87 units and ancillary retail, located at 623 South Federal Highway (west side of Federal Highway between SE 5th Avenue and SE 6th Avenue). Applicant: Eastside Lofts Development, LLC. THIS ITEM WAS TABLED TO JUNE 1ST FOR FINAL ACTION TO COINCIDE WITH 2ND READING OF CORRESPONDING REZONING ITEM. Ed Breese, Principal Planner, reviewed the proposal for a six-story, 144 bed assisted living facility located at 623 S. Federal Highway. There was also a Zoning Code variance for relief from the parking regulations. The area is currently vacant. Site plan time extensions for another project were granted in 2006, 2007, 2008 and 2009 due to 12 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 the applicant's inability to secure permits based on the housing market decline. The ingress and egress from SE 4th Street was outlined. Some retail space would be included to make it a mixed-use project with limited medical space open to the public and residents within the facility. There was a request for a variance on the number of parking spaces to reduce it by two as there were 46 parking spaces onsite and five for retail would be eliminated. The typical resident of such a facility is in her 80s, no longer able to care for herself without assistance and has forfeited her ability to drive. Transportation to doctor appointments, shopping and other engagements would be provided by the facility. The largest shift of employees would not exceed 20 staff members. There would be a public plaza along Federal Highway. All setbacks were in compliance with the Mixed-Use Low 2 zoning regulations. The proposed building elevations included two styles with soft tone colors that would accent the architectural features. Staff recommended approval of the conditional use and new site plan subject to the conditions contained within the staff report and approval of the parking variance based on the following terms: 1. The granting of the variance should not confer on the applicant any special privileges denied to others within the City as a whole as evidenced by previous approval of similar variances. 2. It can be argued the relief requested represents the minimum variance that will make possible the reasonable use of land, building and structure limitations. It would not overbuild the site with the varied open spaces. The number of proposed beds appeared to be a newer, more upscale facility. 3. The plan appears to be in harmony with the general intent of the Code and not injurious to the area involved based on information provided by the applicant and staffs review of comparable facilities within the City. Hanna Matras, Senior Planner, presented background information for both the zoning and conditional use for the property. Staff met with the agent, owner and operator of the proposed facility. The City has 13 assisted living facilities. There are 634 beds with an average occupancy rate of 91.2%. The City has five nursing homes and some are rehabilitation facilities, not just nursing homes for seniors, and have an occupancy rate of 89%. A map was displayed showing the location of similar facilities within the City. The economic impact was studied and it was determined that a ripple affect occurs and creates activity in surrounding areas including additional jobs created over and above the jobs created for the specific project. It is difficult to access the information and almost impossible to quantify. Ms. Matras noted the facility would cost approximately $50 million to build and create 50 jobs for total salaries and benefits of $500,000 annually or about $27.000 per job. Boynton Beach has a very strong medical sector with 22% of the jobs in medical services. There have been no new assisted living facilities built in the City since 1997. It could influence the decision of people with elderly parents moving to the City. A well designed building with landscaping would increase surrounding property values. 13 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Commissioner Holzman understood the parking was allowed because the retail was designed for the residents more so than the public. Mr. Breese replied it was intended to be for the residents, but it would be open to the public. All the parking was in the rear that would be in accordance with the Federal Highway Corridor Redevelopment Plan. Commissioner Holzman inquired if the zoning would permit a change in use to a halfway house. Mr. Breese replied any change would have to be resubmitted to the Commission for approval. Mayor Rodriguez opened the issue for public hearing. No one came forward. Bradley Miller, of Miller Land Consultants, representative for the applicant, thanked staff for their efforts in pulling together the additional information requested. Mayor Rodriguez noted 4th Street is rather narrow with the new medium. Mr. Breese noted it was not designed for u-turns, but the entrance was designed to get people in and out of the project easily. Mr. Miller advised there would be 24 parking spaces along 4th Street that could be utilized also. Mr. Miller advised the owner, applicant and developer had reviewed the staff report and agreed with the Conditions of Approval on the conditional use and site plan for the variance. Mr. Miller located the property and surrounding uses. The colors were changed to be deeper shades and heightened the contrast. He stressed the application only related to an assisted living facility and not a nursing home. It would be unusual for this type of operation to not have deficiencies. The four facilities owned by the applicant have no deficiencies in their inspections. The facilities within the City are pretty much full. Mayor Rodriguez asked if the units would be sustainable as individual condos in the future. Mr. Miller replied they could not be sold as condos because they would be too small. The area was in the downtown core. The operators successfully run two other facilities in the State of Florida. He felt the project would be a compliment to the downtown core and not compete with other residential units currently available as well as vacant retail space. Commissioner Orlove commented he appreciated the information that had been supplied. He had done some independent investigation and found he was satisfied with the ACA report on the Company's current ALFs. Commissioner Holzman reiterated his concerns that the project, although well designed and a great project, was not right for the space or at the right time for the City. The planned use would not assist the City in revitalizing the downtown and would take away a very viable property for the future. He read into the record an email that was received from an adjoining property owner, Mary Law. 14 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 "To the Boynton Beach City Commission. It was my understanding that the City and the CRA during its numerous meetings about the downtown had planned for Boynton Beach to be a cluster of impressive and large developments that would complement the City. Developments that would bring businesses and tourists to the area due to it being such an attractive and excited area to visit and to work. It was to be similar to the concept of Delray Beach. Now the City is allowing the opposite to happen and has given approval to a small 80 foot lot on US 1 to build a medical office. Soon it plans to give additional approval for an assisted care facility on 200 feet of land. By giving these approvals the City is chopping up its valuable downtown. The medical complex could be part of a larger development. The assisted care should go somewhere else besides downtown as it will not contribute to the downtown concept. It would create more traffic from the workers and some visitors and not contribute to the downtown businesses. There are already 15 assisted care facilities in the City. Most of the occupants will not go to the ocean and to the marina and will not spend money in our downtown. This City could be using up what little remaining value of property it has to generate activity in the downtown by providing this land for more assisted care facilities. The City should consider that it may be creating a trend for many assisted care facilities in downtown Boynton. In the present economy, the medical business seems to have the available money to buy the land and build their medical facilities. These scarce properties are within walking distance to the ocean and the marina. The City needs to be very careful not to waste its assets as the City has already given up most of its waterfront property to developments. This City did not save its waterfront properties for future activities which would have benefitted the City economically. To sum up my concerns, the City should reconsider its present development course and then the City should revert to its original plans of the CRA." Mayor Rodriguez admitted there were some good points in the email and agreed the residents would not being using the downtown but visitors to the facility would. Mr. Miller had had conversations with the neighboring property owners throughout the years. The Mayor requested the Assistant Director of the CRA come forward and comment on the project in relation to the Federal Highway Corridor Plan. Vivian Brooks, Assistant CRA Director, had spoken to Mary Law recently as well as another property owner in the area. Some were willing to sell and some were not willing to sell. She noted property owners have very strong property rights and cannot be denied the right to develop their property if it meets the Code. It is a mixed-use building and the urban design meets the intent of the Federal Highway Corridor Plan and it meets the CRA design guidelines. In light of the current economy, adding to the tax base, adding a new urban design building and the intent of redeveloping the strip from old, no longer economically viable uses, such as motels, does meet the intent of the Federal Highway Corridor Plan. Commissioner Holzman inquired if the increase in the tax base had been calculated. It was determined the tax revenue would be approximately $300,000. Ms. Brooks thought 15 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 it would be a nice addition. The goal is to have people living there, working there and it would achieve that goal. The highest and best use is whatever is financially feasible at the current time and meets the design guidelines. Don Scantlan, 13 Cedar Circle, challenged some of the assumptions. There was an assisted living facility near his place of employment and there were many people coming and going from the building on a daily basis with disposal income to spend. He thought the cCty could support the project. Motion Commissioner Orlove moved to approve a variance to the City of Boynton Beach Land Development Regulations, Chapter 2, Section 11.H.16.a. Commissioner Hay seconded the motion. The motion passed 4-1 (Commissioner Holzman dissenting) Motion Commissioner Orlove moved to approve Timeless Life Care conditional use COUS 10- 001 and new site plan NWSP 10-004. Commissioner Hay seconded the motion. The motion passed 4-1 (Commissioner Holzman dissenting) 10. CITY MANAGER'S REPORT A. Review update on Pain Management Clinic Regulations being explored following issuance of the Notice of Intent and commencement of a temporary moratorium, and accept staff recommendation to draft regulations for consideration based on findings to date. Mike Rumpf, Planning and Zoning Director, gave an update on the moratorium status on pain clinics with a notice of intent to do a zoning study based on perceived land use issues. It applied to any use that directly distributed pain medications. The action was based on local experiences as well as County and State-wide problems. Staff continues to monitor the County efforts that have been minimal. The legislative actions have been monitored as well as the incident reports of the Police Department and types of crimes associated with the clinics. Zoning ordinances that have been drafted in surrounding municipalities have been solicited and studied. Mr. Rumpf would keep the Commission informed on the progress of other agencies and boards that had been created to address the issue. Staff recommended moving forward with an ordinance while the moratorium remains in effect until August 1st. The ordinance should restrict the amount of medication, notably narcotics and if successful, would have a great impact on the trade involving users and abusers from other states that drive great distances to obtain the narcotics. It is uncertain if pharmacies should be included in the restrictions. Some smaller pharmacies are playing a role in the action. It may be 16 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 prudent to extend the moratorium while additional information is collected. Attorney Cherof advised it could be extended for another 60 days maximum. Commissioner Hay requested a list of the locations of the pain clinics currently operating in the City. He questioned if there was a trend of an increase in calls to the clinics. Chief Immler explained out-of-state people and people in the state have come here and resulted in an increase in the calls to the pain clinics relating more to the clientele that frequent locations rather than the actual operation of the clinic. Law enforcement was very limited in its ability to enforce anything on the clinics. Commissioner Hay felt the situation would only get worse and the ordinance should be enacted. Chief Immler agreed and did not foresee the State limiting the dispensing of narcotics from doctor offices. The timeframe for the ordinance in conjunction with the moratorium was discussed and there was consensus to move forward with the ordinance as soon as possible. B. PROPOSED RESOLUTION NO. R10-072 - Approve the implementation of the Land Swap Agreement for property in the Martin Luther King, Jr. Blvd. corridor between the City of Boynton Beach and the Boynton Beach Community Redevelopment Agency (CRA). Quintus Greene, Development Director, advised the CRA had approved a land swap with the objective to afford the City and CRA the opportunity to consolidate parcels on opposite sides of Seacrest. Each entity would have a better chance of assembling a developable parcel. It would be consistent with the first phase of the Heart of Boynton Redevelopment Plan. Opportunities for future purchases would be dealt with as they arise regardless of the location and future land swaps may be inevitable. Mr. Bressner advised the CRA may have to publish a legal notice and it would not affect the time line for the transfer. The notice of the transfer is required by Statute. Motion Commissioner Hay moved to approve the swap and approve Resolution No. R 10-072 for the swap between the City and the CRA. Vice Mayor Ross seconded the motion. The motion passed. C. City staff requests City Commission review and comment on the draft FY 2010 I 2011 General Government and Utility Capital Improvement Plans. Jeff Livergood, Director of Engineering and Public Works, indicated both the operating budget and the Capital Improvement budget have to be approved at the same time. The proposed budget is a snapshot in time for the budget beginning October 1, 2010 for five years out and is a living document. A committee meets monthly and changes are 17 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 constantly being made. The five-year plan is a tool for the Commission to showcase the City's plans for the future for both major and minor projects. Staff identifies projects they feel are necessary to maintain the community and to build the community. This year the plan focuses on maintenance type projects with very few new endeavors. Many previously planned projects have been moved further out in the future due to economic constraints. The Police facility is not in the capital plan because there are no funds to support the debt service on a facility. New sidewalk construction could no longer be funded, rather maintaining the existing infrastructure is the goal. The scope of some projects had to be changed to better address the maintenance needs. Some new projects have had to be added. It was important to note that the fund balance at the end of the five-year program was anticipated to be only $14,598 indicating that the $11.6 million would be spent over the five years. It would also assume debt of $4 million. The monies would have been spent strictly to fund maintaining the current infrastructure. Mayor Rodriguez clarified that the funding was available to fund the projects through the end of this year. Mr. Bressner added any big ticket items were being deferred in the CIP budget and he did not see any new facilities being added in the foreseeable future until the economy moderates. There was consensus that there needed to be a workshop to review the project list and prioritize the vision of the Commission for the City. Commissioner Holzman voiced his concern that plans need to be made to avoid the depletion of funds for capital improvements. Mayor Rodriguez stressed the only way to increase funding was to increase the tax base and place the tax burden on the businesses rather than the citizens. Redevelopment was the key component to increasing the tax base. Commissioner Orlove was pleased to see the Boundless Park on the list, but was concerned if it would be deferred that funding would be lost. Mr. Livergood requested any input possible to give the staff direction on the type of information that would be needed for review at a workshop. Kofi Boateng, Director of Utilities, reported for the two necessary projects for Utilities being the East and West Water Plant interconnect and updating the East Plant would involve $50 million. The utility programs work on broad boundaries and have specific regulations that must be maintained. The South Florida Water Management District, the US Environmental Protection Agencies and the Clean Water Act have very strict regulations on the federal and state levels. Mr. Bressner stressed there was less discretion on the utility side. Many of the projects were unfunded mandates. 11. FUTURE AGENDA ITEMS A. Report and Recommendation for Interlocal Agreement with Palm Beach County Fire-Rescue - Sales Tax Program (June 15, 2010) - Note: The Palm 18 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Beach County Board of Commissioners has moved this item to the November 2010 ballot. Their current deadline is mid-July for a November ballot. B. Update on Alternative Use of Vacant Landfill Property East of the Boynton Beach Links, Municipal Golf Course (June 15, 2010) - Note: Staff has had preliminary discussions with FPL on this project. Currently, there are no statutory provisions that would guide FPL's involvement in the project. Research continues. C. Staff report on public comment policy/procedures for City Commission meetings - (June 15, 2010) D. Second draft review of Climate Action Plan (June 15, 2010) E. Report and presentation from Waters-Pelton, Inc. - Update on formation of 501 c3 foundation (June 15, 2010) F. Art in Public Places (AIPP) Annual Presentation - Overview of Program Year 09/10 with preview of 2010/11 - (June 15, 2010) G. Technical Review Committee Recommendations on 2010-2011 Community Development Block Grant (CDBG) Sub-Recipient Applications (June 15, 2010) H. Staff update on City Commission request for formal policy statement by Town of Gulfstream Town Commission on future annexation plans of coastal enclaves (July 6, 2010) I. Final approval of Climate Action Plan (July 20,2010) J. Budget Workshops - July 19-21; Library Program Room; 1 pm - 5 pm daily; including adoption of Tentative Millage Rate for FY 2010/11 and Preliminary Fire Assessment Resolution for FY 2010/11 K. Appoint members to 7 member independent Community Redevelopment Agency Board (August 3, 2010) L. Police Complex - Discussion of project timing, scope, location and funding alternatives available. (TBA) 12. NEW BUSINESS A. Consider request for the City Commission to conduct a preliminary review of a proposed amendment to the Land Development Regulations intended to implement the Heart of Boynton Redevelopment Plan and further 19 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 redevelopment efforts through the expansion of areas eligible for rezoning to the Infill Planned Unit Development (IPUD) zoning district. Mr. Breese explained the request was to expand areas where the Infill Planned Unit Development regulations can be implemented. It would be used to revitalize areas outside the Federal Highway Corridor. It would include the vacant land that formerly contained the Boynton Terrace apartments on Sea crest Boulevard. The zoning provisions would then match the vision for the Heart of Boynton redevelopment area. Motion Commissioner Holzman moved to approve the preliminary review of the proposed amendment to the Land Development Regulations. Commissioner Hay seconded the motion. The motion passed. B. Allow a referendum vote in November 2010 to ask the citizens of Boynton Beach if they want their elected City Commissioners, accountable directly to voters, to continue to serve as the Board of the Community Redevelopment Agency (CRA), a board that makes decisions on spending millions of taxpayer dollars. (This item was previously added to the agenda) Mayor Rodriguez indicated that subsequent conversations with the citizens and various homeowner associations regarding the appointment of an independent CRA Board had prompted bringing the matter back before the Commission for review. It would be a question of whether the citizens of Boynton wanted one form of government or two forms of government spending the taxpayers' dollars. Commissioner Hay recalled the issues had been discussed for years and the voice of the community had always been to have an independent board. He saw the current request was a tactic to delay the inevitable of what the citizens really wanted, an independent CRA Board. He did not favor delaying the process to appoint an independent Board. Mayor Rodriguez agreed the matter had been discussed, but the citizens had not been asked through a referendum. He reiterated his position that only two members should be added and, in the future, consider replacing the entire Board. The Commission had removed the request for a referendum vote on the issue. He was conveying the voice of the people back to the Commission. Commissioner Orlove agreed with Commissioner Hay. He campaigned and all he heard was a seven-member independent board was needed. Vice Mayor Ross would not agree with the referendum after all the processes were in place to move forward. 20 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 Mayor Rodriguez contended it would be irresponsible to not ask the people and it would settle the issue. The next City Commission could disband any Board that would be appointed. Commissioner Holzman did not see an issue with asking the citizens what they wanted. The reasons previously stated for the independent board have not changed. If the supporters of the new board are so sure it is what the citizens want, then there would be no harm in the referendum. Mayor Rodriguez indicated the individuals with whom he had spoken were the Boynton Intercoastal Group, Harvey Newman at Hunters Run, INCA, Leisureville and hundreds of other citizens. He had advised the individuals at Hunters Run there was no need to call Commissioner Orlove. Commissioner Holzman continued to ask for an explanation why the three Commissioners would not support asking the people what they want. Commissioner Orlove noted that the City seems to reevaluate decisions that had been made. A decision was made and an application process outlined. Only a handful of people had contacted him indicating they wanted something different. Commissioner Hay found it unusual that when the Board was dismantled, the voice of the people was very powerful what they wanted and they were ignored then. It seemed to be a contradiction of previous positions of the Commission. The issue has been decided and it should move forward as planned. Mayor Rodriguez stressed the voice of the people had never been counted. The referendum would be an opportunity to fix any previous indecision. Commissioner Hay continued to assert it was a stall tactic to avoid putting a new Board in place. Vice Mayor Ross alleged it was all smoke and mirrors. Motion Commissioner Hay moved to deny allowing a referendum on the CRA in November for the creation of a CRA Board. Vice Mayor Ross seconded the motion. Commissioner Hay restated his motion. The motion was to deny allowing a referendum vote in November, 2010 to ask the citizens of Boynton Beach if they want their elected Commissioners accountable directly to voters and continue to serve as the Board of the CRA, a board that makes decisions on spending millions of taxpayers' dollars. Vice Mayor Ross seconded the motion. Herb Suss, 1711 Woodfern Drive, indicated he had supported the seven-member board. He accused Vice Mayor Ross of not returning his phone call. A heated 21 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 discussion ensued among the Commission and included Mr. Suss. His solution to the issue was to install two members to the current Board at this time and not force the issue during the budget preparation and have the five other members appointed later. He did feel the referendum vote would be appropriate. Don Scantlan, 13 Cedar Circle, did not support a new seven-member board, rather adding two as Mayor Rodriguez had proposed during the campaign. Barbara Ready, 329 SW 13th Avenue, offered her opinion that the election of Mayor Rodriguez and Commissioner Holzman was a referendum vote on adding only two members to the current Board. She did not want volunteers in charge of expending tax dollars because they were not accountable. Commissioner Orlove noted his election would then be a referendum for his position. Mayor Rodriguez pointed out Commissioner Orlove ran unopposed. Commissioner Orlove stressed he filed papers, raised money, went to forums and met with the constituents of District I. Mark Karageorge, 240A Main Boulevard, agreed with Commissioner Orlove that he was elected. The issue of the CRA Board was a nightmare that he found disgusting that it was being rehashed at this time. A team effort did not appear to be happening. The focus should be the common good of the City. There is oversight because the Commission has the power to remove one or all of the members of the Board. Attorney Cherof clarified there were only two ways to change the configuration of the CRA Board. The Commission can replace the Board with itself as has been done. The other way is to remove individual members of the Board who have neglected their duties, have been inefficient or have engaged in misconduct which would be difficult. As long as the Board acts within the powers granted to them by Statute, which is virtually everything but eminent domain, they operate independently of the Commission and the Commission would have no oversight. Commissioner Hay emphasized when the Commissioners were elected they had no previous experience, yet they got the job done. There is a process in place to screen very capable candidates. The Boynton Beach CRA operates like all other CRAs in the State. Commissioner Hay objected to being faced with the issue at the dais and not being provided any notice the issue was going to be brought forth for the public, especially at the late hour. He had faith that the individuals appointed could do the job. Vote The motion passed 3-2 (Mayor Rodriguez and Commissioner Holzman dissenting). 13. LEGAL 22 Meeting Minutes Regular City Commission Boynton Beach, FL June 1,2010 A. PROPOSED ORDINANCE NO. 10-011 - SECOND READING - Approve rezoning of the property from Mixed Use-Low Intensity (MU-L) to Mixed Use- Low Intensity 2 (MU-L2), (Timeless Life Care, REZN 10-001) located at 623 South Federal Highway (west side of Federal Highway between SE 5th Avenue and SE 6th Avenue. Attorney Cherof read Proposed Ordinance NO.1 0-011 on second reading, by title only. Motion Commissioner Hay moved to approve on second reading. Commissioner Orlove seconded the motion. Vote Deputy City Clerk Pyle called the roll. The vote was 4-1 (Commissioner Holzman dissenting) . B. PROPOSED ORDINANCE NO. 10-012 - SECOND READING - Amend the Land Development Regulations (LOR) to allow Indoor Athletic I nstructionfTraining , (CDRV 10-003), including Gymnastics, Oance/Jazzercise/Pilates Instruction, Cheerleading Instruction, Karate Instruction, Indoor Batting/Golf Facilities, as a Conditional Use in the (M-1) Industrial District and as a permitted use in the Planned Industrial Development (PIO) zoning districts. Applicant: City-initiated. Attorney Cherof read Proposed Ordinance NO.1 0-012 by title only, on second reading. Mr. Rumpf was available for any questions. Motion Commissioner Orlove moved to approve Ordinance No. 10-012. Commissioner Hay seconded the motion. Mayor Rodriguez opened the issue for public hearing. No one came forward. The public hearing was closed. Vote Deputy City Clerk Pyle called the roll. The vote was 5-0. 14. UNFINISHED BUSINESS 23 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 A. TABLED on 5/4/10 - Consideration of meeting time change for Regular City Commission meetings. Motion Commissioner Holzman moved to remove from the table. Vice Mayor Ross seconded the motion. The motion passed. Commissioner Hay could not accommodate a change in time due to his work schedule and previous commitments. He felt it was not the starting hour that caused the problem, rather the content of the meeting. Commissioner Orlove pulled the request to change the time in deference to Commissioner Hay and his schedule. Mayor Rodriguez suggested the announcements could be shortened and perhaps moved to the end of the agenda. Vice Mayor Ross and Commissioner Orlove disagreed. Announcements were made so the people present could be made aware. Commissioner Hay did not think announcements were the issue and took very little time. Too much time was being spent going over items numerous times. Mayor Rodriguez pointed out everyone had their style of addressing the issues that should be considered. 15. ADJOURNMENT There being no further business to come before the Commission, Mayor Rodriguez properly adjourned the meeting at 10:47 pm. (Continued on next page) 24 Meeting Minutes Regular City Commission Boynton Beach, FL June 1, 2010 ATTEST: CITY OF BOYNTON BEACH L .~ Steven Holzman, Com issioner 25 "Investments in building efficiency retrofits can simultaneously adc:fress the challenges of economic recovery, energy insecurity, and global warming by laying the foundation for sustained economic growth, driving demand in the construction and manufacturing sectors, and creating hundreds of thousands of good jobs across the country... Any strategy to capture the benefits of energy efficiency in our "built environment" must include a program to retrofit our existing building stock of residential, commercial and industrial sectors." ..IIY fi " . -Rebuilding America: A National Policy Framework for Investment in Energy Efficiency Retrofits, Center for American Progress and Energy Future Coalition, August 2009. · Funding · Information · A properly structured energy efficiency retrofit and/or renewable energy improvement program using property assessed financing can meet both needs. .. PACE is an innovative financing concept that was pioneered by City of Berkeley in 2008. .. The concept was a twist on traditional Community Facilities Districts which have historically been used to finance project infrastructure in new developments. .. The twist allowed the use of a special district to finance renewable energy and energy efficiency improvements that are permanently affixed to private existing buildings. This new financing mechanism ,I PACE _C>-; . ::~:~ ::;::: :::::::Clean ~:WZ Energy programs (a bit of a misnomer...) · VEIB - Voluntary Environmental Improvement Bond programs MIl EL T AP - Energy Loan Tax Assessment Programs · EFD - Energy Finance District I I . · Assembly Bill 811, adopted by the California Legislature as an emergency measure and signed by the Governor on July 21, 2008, was enabling legislation that allows all local governments in California, charter and non- charter, to create PACE programs. II Based on the "Berkeley" model · Colorado · Illinois · Georgia · Louisiana fI Maryland fI Nevada '" New Mexico '" New York .. Ohio iii Oklahoma iii Oregon '" Vermont .. Virginia .. Wisconsin .. and more · Local government establishes energy finance program in accordance with requirements of applicable state law · Local government funds its program from a variety of sources (e.g., stimulus dollars, QECB bonds, revenue/assessment secured bonds, general revenues, etc.) . Interested property owners within the program area borrow money from the local government for renewable energy systems (e.g., solar PV) or energy efficiency retrofits (e.g., insulation, high efficiency HV AC equipment and windows, etc.) · Local government is repaid by participating property owner through an assessment on the owner's property that is collected with the ad valorem property taxes III A means to effectively implement energy conservation/GHG reduction policies I: · A means of supporting a retrofit or renewable energy program (and leverage stimulus funds) without commitment of general fund dollars III A stimulus for the local economy Uobs and product sales)! ;~ II Access to perhaps the only viable means to afford energy efficiency retrofits or renewable energy system -,. 11'11111 ;'i1'2 i, ~ .. No credit qualification Long term payback (e.g. 10-20 years) Substantial equity not necessarily required Overcomes barrier to improve property given typical property turnover since obligation runs with the property Lower utility bills offset assessments Provides hedge against rising energy prices .. .. .. .. .. Legislature adopted streamlined legislation that simply provides authority for local governments to enter into financing agreements with property owners and levy assessments for repayment, subject to adoption of a resolution or ordinance. .. HB 7179 does not provide significant detail on process. .. Formation of a special district is not required. .. Local governments will have flexibility to structure and craft their financing programs within the minimal requirements measures to reduce consumption, through conservation or more efficient use, of electricity, natural gas, propane, or other forms of energy on the property, including, but not limited to: .. air sealing; .. installation of energy-efficient heating, cooling or ventilation systems; " building modifications to increase the use of daylight; " replacement windows; " installation of energy controls or energy recovery systems; " installation of electric vehicle charging equipment; and installation of efficient lighting equipment. II "renewable energy improvements" the installation of any system whose electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources: hydrogen, solar energr' geotherma energy, bioenergy and wind energy III! .. iii III "wind resistance improvements" includes, but is not limited tOr ., improving the strength of the roof deck attachment; 1111 creating a secondary water barrier to prevent water intrusion; , installing wind-resistant shingles; Jill installing gable end bracing; iIII reinforcing roof-to-wall connections; ., installing storm shutters; or .. installing opening protections. , "'.. '" H l<, ~ , , . ~~ ""%~.... ~ · Total amount of non-ad valorem assessment for a property under the Act may not exceed 20 percent of the just value as determined by the county property appraiser. Exceptions: .. (1.) if holders or loan servicers of any mortgage encumbering or otherwise secured by the property consent to exceeding 20 percent of just value. .. (2) assessments for energy conservation and efficiency improvements and renewable energy improvements supported by an energy audit that demonstrates that the annual energy savings from the improvements equals or exceeds the annual repayment amount of the assessments. l1li Public or Private? IlII Reserve Funds l1li Interest Rates · The Spread l1li Incentives and Rebates Design residential energy efficiency retrofit loan programs that are self- sustaining · Low interest rates · Minimal administrative costs · Measurable reductions in energy consumption UFIMRIDA I!'AS [........"'" Energy Efficiency Improvements - .. retrofits likely to result in meaningful energy savings relative to their cost... Community Education and Outreach - 10 offer participating property owners education on maximizing and maintaining energy savings from retrofit improvements Contractor Training - .. certify approved installers to use best practices and follow program guidelines; .. link recertification to performance. UFIUN,vus,n 0/ iFLORIDA I~AS b_", Quality Controls - · take cost and benefits into account when specifying auditing and inspection protocols... Measure and Verify Energy Savings- · use energy consumption data to establish community baselines for regular analysis of participant savings Follow-up with Underperforming Households - · use analysis data to reinforce behaviors that maximize savings and identify failed retrofits UFIFl.ORfi)A Ifi\S 1'.'14.1'510" Only Performance Counts ill green labels do not matter, only performance at the meter... Loans Must Create Net Savings · programs must be designed to prevent homeowners from being upside down in tneir loans Margins Are Thin · success will require low interest rates and low overhead Programs Can Be Self-Sustaining II Conservative lending with low default rates and steady returns will ensure on-going bond financing UF FlORIDA If-AS l\.h..1t.';.h:.ln . Interested property owners opt into the program, therefore, it is 100% voluntary so only willing property owners will pay assessments. III Local Government Workshop and/or Resolution of Intent to Establish PACE Program III Assemble the Team II Program Scoping II Program Approval (Resolution or Ordinance) Stages to follow: .. Pre-Launch Activities If Program Launch .. Financing Activities .. Program Administration .. Reporting and Follow Paul D'Arelli, Esq. 350 E. Las Olas Boulevard Fort Lauderdale, FL 33301 (954) 712-5131 pdarelli@bergersingerman.com II BERGER SINGERMAN