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Minutes 07-17-12 Budget (AM) Morning Session MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, AT 9:00 A.M., ON JULY 17, 2012 MORNING SESSION PRESENT: Woodrow L. Hay, Mayor Lori LaVerriere, Interim City Manager Mack McCray, Vice Mayor James Cherof, City Attorney Steven Holzman, Commissioner Janet Prainito, City Clerk Marlene Ross, Commissioner Welcome Mayor Hay called the meeting to order at 9:05 a.m. and gave the invocation. Mayor Hay explained the City Commission planned to set a tentative millage rate and deal with the Fire Assessment rate at the meeting The meeting began with follow -up on information requested during day 1 of the special meetings Lori LaVerriere, Interim City Manager, had a revised agenda and additional documents in response to the questions posed at the meeting on Monday. She noted the savings associated with the seat vacated by former Commissioner Orlove equated to $2,603 per month. The Mayor's seat was also vacant and Ms. LaVerriere commented there may be additional savings of about $2,000. The cost to the General Fund for medical insurance was $3,610,000. The cost to all funds, which included the Solid Waste, Utilities and other funds was $5,105,000. Staff budgeted and had discussed reforming the health insurance plan, which was anticipated to increase this year by 19.67 %. In total, the cost would be $6.1 million. Dental and vision costs were not included as it was about $20,000 to $30,000 per year for all employees. The breakdown for Finance, ITS and Human Resources was provided in response to a question posed by Vice Mayor McCray. A request for the total of overtime reimbursement for the Police Department revealed about $95,000 was received, which was comprised of $55,000 from federal and state agencies and $40,000 from the Department of Justice through a JAG Grant. In response to a question from Commissioner Holzman, the total Police overtime paid was $751,190 from October of last year to July 16, 2012. Also provided was a listing of the Police Department DROP participants depicting the five -year limit, the employee titles and dates. A two -sided document was provided containing position classifications with similar titles. The classifications were broken down by title and grade. 1 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 General Fund Departmental Reviews: Fire Department/EOC Ray Carter, Fire Chief, reviewed the Emergency Management budget and commented that budget was reduced almost $10,000. The cuts came from other contractual services. This year the department had $20,000 to contract with a vendor to complete their Comprehensive Emergency Management Plan (CEMP) and Continuity of Operations Planning (COOP) program. They hired the vendor and that project was in process. Staff anticipated by October 1, the $20,000 will have been spent and the majority of the work completed. There may be some follow up required the next year to tweak the plan into final form, but they did not anticipate $20,000 would be needed and consequently, reduced the amount to $10,000 in the event they needed to enter into another vendor contract. All the other items remained the same. The $20,000 contract was on the agenda for the City Commission meeting to be held later in the day for Commission approval. The radio /batteries and food supplies line item for $500 was questioned. Chief Carter explained during a declared emergency, there would be employees at the Emergency Operations Center (EOC) 24 -hours a day. The batteries would be for radios, cell phones and other similar items. The funds were only intended to cover a short period of time as EOCs are not normally activated for very long, unless there were multiple events. He noted the City contracted with a vendor for food provisions. Unused funds this year would be returned to the General Fund, but they were budgeted again for next year. In the event the EOC was activated once or twice, the City would spend that money. Commissioner Holzman was not in agreement for its need. There were no other questions or comments on the Emergency Management budget. Chief Carter explained the Fire Department did not submit a flat budget due to increases in pension and insurance funding requirements. There was $438,000 worth of contractual pay raises. Commissioner Holzman inquired how many firefighters' salaries would equate to $438,000. Chief Carter anticipated between six and seven firefighters. Discussion followed about positions at Fire Station No. 1. At full staffing, there were six positions there, and last year, due to staff reductions, the station was staffed with three positions on a normal day. For those three positions, nine employees were required to fill them on a 24 -hour basis. Commissioner Holzman commented last year, the discussions were to close Fire Station No.1 when Fire Station No. 5 (EOC) opened. He noted Fire Station No. 4, on Federal Highway, was a mile away from Fire Station No.1 and the level of service to residents would not change. He noted the firefighters' wanted a raise of $438,000 and no other unit in the City was getting a raise regardless of whether the raise was in a contract or not. He believed it was in the best interests of the City to eliminate Fire Station No. 1, eliminate six positions, and move three positions to Fire Station No. 4 on Federal Highway. This would free up space for the Police department to expand. The 2 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 cost estimate provided to increase that space was not an outrageous amount. This would save citizens money and close an unnecessary fire station. He thought Vice Mayor McCray was on the Board when the discussion took place. He urged the City Commission to consider the matter. Further discussion followed. Ms. LaVerriere explained there were many discussions held about the issue. When the EOC was under construction, there were discussions whether to close one of the fire stations, but she recalled no direction was given to do so. Last year, there were discussions about the City Hall campus. A few months ago, the City Commission discussed the Old High School Redevelopment, where to put the Police Department, and address the rehabilitation of City Hall. She recalled the only decision that was made was that City Hall would remain at its current location. A final decision about the Police Department was not made. Although City property was put up for sale, the City did not receive favorable responses. There were still options available, and over the past few months, they were discussed with the Commission on an individual basis. Mr. Atwood was looking at calculations to construct a new Police facility or expand its existing location by adding a third floor or building out into the garage. He was also determining the cost to rehabilitate City Hall over a 10 to 30 -year period. She commented staff needed the calculations in order to have meaningful discussions after the budget was adopted to make final decisions about the matter. Staff had discussed closing Fire Station No. 1 with the Town of Ocean Ridge. It was costly for Ocean Ridge to house staff and there were issues about apparatus. If done, Ocean Ridge would have to completely rebuild their new parking lot. It was not a dead deal, but all was in a holding pattern until staff received clearer direction about the City Hall building Mayor Hay expressed there had not been enough information put forward and he has not seen an analysis of its effect. He has always advocated for the Police Department to relocate to High Ridge and he agreed a workshop would be beneficial. Chief Carter clarified the issue with Fire Station No. 1. When the Fire Assessment was put in place, the discussion was Fire Station No. 1 would be eliminated. That discussion was held in 2000 to 2001 with former Chief Bingham. In 2004, when staff negotiated the contract to provide full fire /rescue services to Ocean Ridge, Fire Station No. 1 was back in the picture. Ocean Ridge paid above what the City would normally charge for fire /rescue services to keep the equipment and personnel at Fire Station No. 1. That was negotiated. Since then, Fire Station No. 1 was always a part of the City's response plan and would remain open after that date as long as they continued to provide service to the barrier islands. Attorney Cherof noted there was nothing in the contract that required Fire Station No. 1 to remain open. Commissioner Holzman implored the Commission to take the comments about Fire Station No. 1 out of the equation. The issue was about the City and residents of Boynton Beach and their budget. He thought the matter was pending far too long and no one wanted to make a decision, but one should be made. There was $438K owed to the firefighters, and the City did not have the money, so to pay them, 3 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Fire Station No. 1 could be closed, they could eliminate six positions and move three positions to Fire Station No. 4. Attorney Cherof explained the contract with Ocean Ridge stated they would provide services, but did not dictate where the service was to originate. The last time the matter arose, Ocean Ridge felt it was implied that Station No. 1 would be the responding station, but there was no specific language in the contract to back that up. Mayor Hay thought whether there was an obligation or not, the service to the community was the important factor and Ocean Ridge was a means to keep Fire Station No. 1 open to service the City. He did not believe there was enough information to make a decision. Commissioner Holzman explained the savings from the firefighter positions, by expanding the Police into Fire Station No. 1, would yield a savings of $562,000 because they could sell the old fire station they have two offers on and use the $562,000 to renovate the Police offices. They would not have to raise taxes or bond. They would have the money now and they could do it under the current constraints. He was in favor of moving forward. Mayor Hay expressed a workshop was needed. The current discussion was to save money in the budget. The Town of Ocean Ridge paid just under $900,000 for the services. Commissioner Holzman noted the money would come in whether Fire Station No. 1 was open or not. Commissioner Ross thought the item should be kept on the table. He reiterated as a contingency, the City should remove the $438,000 from the budget in terms of the positions it equaled The Fire Station could be sold and used as a place holder to see what happens after that. Negotiations are ongoing with the firefighters and they should see how the negotiations go. The positions could always be put back in. At this point, knowing they have to keep the $438,000 in the budget, they could find a way to back it out, balance the budget and not raise the tax rate. If they removed the $438,000, they could always put it back in. Mayor Hay and Vice Mayor McCray disagreed. If the City lost the contract with the Town of Ocean Ridge, the City will lose $900,000. Development/Community Improvement Nancy Byrne, Interim Development Director, explained the department underwent a major reorganization. The Development Services budget, formerly known as Administration, had positions shifted which were reflected in the budget change figures. Positions were taken from Business Tax. The budget had a 100% increase because all of the costs were absorbed by the Development Services budget, along with two staff members from that division. They re- titled the positions and created a division called Development Services to support Economic Development, Building, Planning and Zoning, and Community Improvement. 4 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Staff delivered reductions in the operating budgets although the figures were slightly off due to shifting the positions. There were reductions in business fees, they added the credit card fees used for business tax renewals, they reduced office supplies and had to supply uniforms because they picked up White Collar Bargaining Agreement Employees and reduced training because they were doing more in -house operational training. The cost for uniforms, per the bargaining agreement, was $533. She noted some uniforms were different than others because they gave the employees the opportunity to pay for upgraded uniforms. The cost was not absorbed by the taxpayers. This budget year, staff saved $125,000 in salaries. The next budget year would not offer the same savings due to the Economic Development program. They proposed to eliminate half a position. They eliminated the position of Assistant Director of Development and new titles were changed in the Building Department which were associated with additional responsibilities. The Building Department was reduced to core support and had a fully technical staff. They are supported by the Development Services Division, and had an 18% reduction due to the shifting of positions and reduction of several accounts. Business meetings were reduced and employees were now using secondhand City vehicles. The employees no longer had auto allowances which had escalated over the years. There was about a $6,000 to $7,000 cost savings per year. The vehicles were daily -use cars; not take home vehicles. The car allowance in 2010/2010 was $5,225. In 2011/2012, it was $2,475. Vice Mayor McCray inquired why the drop. Ms. Byrne responded the first year they obtained the vehicles, they were still secondhand vehicles and Fleet had to make repairs. This year, the vehicles were providing a better experience. The car allowances, in the past, were reimbursements to employees for using their personal vehicles. There were now only three employees who received a car allowance which was top management who go to the field and supervise. The software enhancement in the Building Department was discussed. Ms. Byrne explained the Department needed upgrades and it was an ongoing issue with ITS. The interactive voice response system, which was also the web -based system, was antiquated and support for it may not be available from the manufacturer or vendor. Andrew Mack's goal was to have more information on the web to help expedite the process, but the software revisions to do so were not budgeted. They were working with the vendor to determine creative ways to make do with what they had, but it was not a permanent fix. Copier rental costs were split between divisions and they paid for overages. The Development department has become green and does not use as much paper. Customer service was discussed. The Department eliminated the receptionist so there was no one point for answering calls, and the automatic call distribution system was a problem. The Department's priority was to service the customer seated before them and not have to be interrupted by calls. They received complaints that customers were waiting a long time for service. Technicians are giving their direct telephone numbers 5 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 and by- passing the system. Staff was putting together a plan and re- routing and changing the messages to alleviate the issue. The website was popular and they were adding documents to it. Commissioner Ross thought this area was a priority and requested being apprised of the progress. Ms. Byrne explained they will address complaints, but staff changed the way management was connecting to staff and was receiving input. Improvements would come from that relationship. There were no changes to Planning and Development and the budget stayed flat. There were some reductions in operating costs, but increases in accounts discussed earlier were pushed beyond their comfort level. Staff was actively contributing to their own travel costs or professional certifications. They added money to other contractual services. Now that they were more engaged with the Community Redevelopment Agency, they had several plans that needed attention. They were approached by the Treasure Coast Planning Council to conduct Transit Oriented Development (TOD) studies in the downtown and Quantum Park areas, so they allocated money to the City for the study and staff would provide mostly in -kind services. Staff may go out for graphic support, so they added a small amount of money to the budget for those purposes. The new department of Economic Development was staffed by 2.5 staff members. The other half employee was in Development Support Services to help support the management staff in Development. They were advertising for the Economic Development Manager and Development Services Coordinator and hoped to have those positions filled by August or September at the latest. The Business Development Specialist was filled, after interview, by Max DuCoste. Commissioner Ross requested being apprised of the candidates for the Economic Development Manager as it was a key position. She inquired if that position would come before the City Commission. Ms. LaVerriere explained the applications were vetted through Human Resources. After they were vetted, a staff committee would be assembled to shortlist the candidates and provide a final recommendation to Ms. LaVerriere. She understood there were good candidates interested in the position. Ms. Byrne explained they had several entities recruiting for the position. Ms. Byrne explained the Department's revenue projection was at $2 million for the upcoming fiscal year and their budget was at $2.8 million, with the addition of the Economic Development Division. They would thereby be contributing to the General Fund and covering their costs. If authorized, staff can look at fee adjustments. They serve the community by providing life safety, but deliver to design professionals, contractors and residents. Those entities should pay for what they were receiving. A Business Tax could also be increased. 6 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 It was noted the Economic Development Manager salary was around $80,000 and the support about $45,000. Community Improvement At the last City Commission meeting there was a proposal that would come back to the Commission in August to finalize the contracts on how the funding for the next year would be supported. Staff proposed to reduce the hours of one Affordable Housing Administrator. The State SHIP funds normally paid for the position, but the City had not received any funds from SHIP in two years and it was unlikely they would in the near future. Activity for the program was down, and the Community Development Corporation was handling the Neighborhood Stabilization Phase III program funds for the City. Staff would make reductions and reallocate those monies. They also partly fund the salary for Debbie Majors, since she was acting as the Voluntary Compliance Coordinator through HUD. That action would save about $25,000 and the contracts would come before the City Commission in August. They included $125,000 for economic development. It was mentioned nobody else in the State was receiving SHIP funds. Public Works /Engineering Jeff Livergood, Director of Public Works and Engineering, explained from a General Fund perspective, Public Works is comprised of five divisions. Of the five divisions, they supply support service to other departments that are critical to the community. Last year, Parks Maintenance was consolidated into Public Works to utilize employees and cross -train them to provide additional services. That action has been successful. Through consolidation, the department achieved savings particularly from a supervisory position. In the past, there were many supervisors in the various divisions and now they have one supervisor in charge of all those functions and two positions were eliminated via the reorganization. The sum of all program budgets, which included Facilities Management, Parks and Grounds, Engineering, Streets, and Administration, went from $5.6 million to $5.686 million: an $86,000 increase. There were increases and decreases in different programs which were by design, so staff could get an idea of each program's cost and to show the overall increase was 1.5% from all divisions, which included the pension increases. The changes this year were the medians and the reduced level of maintenance was starting to show. It was hoped the budget would improve and they can replant and refurbish the medians. The proposed Streets Division budget was $979,000 and $560,000 of it was the FPL bill, so there were other expenses the Department had beyond people. The Streets Division was reduced by four individuals who maintain 254 lane miles of street 7 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 The proposed budget was status quo. Staff was not proposing a reduction in maintenance and planned to continue as they have. The funds set aside for Seacrest Boulevard were in the Capital program. The changes made in the Solid Waste program were a reduction in staff through attrition over the last five years. The Division has a task system, which allows employees to come in, do their work and go home. Employees did not have a full day in the past, but they do now. Management was watching it very closely because Mr. Livergood thought he may have reduced staff by two employees too much and they may have extended the life of the equipment too far. The Department operates the same as the Police Department and they extended the life of the equipment to seven years. In the six months to a year, there were several breakdowns on the same day. The Department emailed Ms. LaVerriere when breakdowns occurred. Some challenges the Division faced were reduced staff, staff working longer hours, and the extension of equipment. Staff was not proposing any changes this year. In next year's budget, they were proposing to buy seven or eight new garbage vehicles which would hit their seven -year life. The cost of a Solid Waste vehicle was $225,000. The fund balance in Solid Waste to purchase equipment was in the Fleet Fund and the projected cost was $1.4 million. Mr. Livergood explained when they purchase equipment, they prefund the purchase. Commissioner Holzman suggested transferring the $1.4 million to the General Fund. Mr. Atwood explained the Solid Waste fund was a separate fund. Before making the decision to transfer monies from the Solid Waste Fund to the General Fund, one should factor in potential increases in expenses. Assuming the rates stayed the same, if transferred to the General Fund, the Solid Waste Fund Balance would diminish and have a negative balance in the next two years. When staff reviews the Fleet Fund, they look 20 -years out. This is not contained in the five -year budget. Staff reviews the amount contributed and expended from the fund to ensure they have what they need to purchase vehicles down the road. Mr. Livergood explained when they prepare for a Fleet fund, it extends 20 years out and they needed to ensure there was a positive fund balance down the road. The same analysis applied to the Solid Waste fund. It was necessary to anticipate future expenditures and manage conservatively. In the past, the annual cost for median maintenance was approximately $350,000 which was reduced to around $200,000 Another $100,000 would allow staff to begin restoring the medians. Discussion ensued that any successful City is beautiful when one drives in it. Right now, the City was not. Commissioner Holzman thought the City's beautification was paramount, especially in view of its economic development efforts. The cuts made in the medians budget were a conscious decision. If making them now, it was important to remember the cost to reinstate the initiative. Landscaping cuts were cost effective because there would be a dollar- for - dollar replacement cost. 8 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 There was agreement to start a wish list for median maintenance reinstatement. Discussion followed where to begin in the City. This would be in the Parks and Grounds budget. The department was evaluating bids for all landscape maintenance, which will come before the Commission before October 1, and they could change the service levels of the bids. Mayor Hay commented they have not set the highest millage rate either and based on a 7.6 millage rate, there would be about $310,000 available. Another area that was cut was maintenance of private Tots. Staff used to have trash removed on a weekly basis by contractors. They were now doing so monthly when they mowed and it was hoped that as the economy changed and revenues returned, they could change those programs. Mr. Livergood was requested to draft a list of sections or categories for the Commission to prioritize. It was thought the areas to prioritize were areas that had the most visibility to motorists. When coming from outside the community, another area would be Congress Avenue. The downtown redevelopment area was a priority and Commissioner Ross noted Congress Avenue was in much better condition than Federal. Roadways such as Gateway, Federal, Seacrest and Boynton Beach Boulevard East were the roads that were pointed out. Additionally, the new Galaxy Elementary School would soon be completed and individuals would travel to see it. There was consensus to allot $150,000 for median maintenance to the wish list. Library /Museum Craig Clark, Library Director, announced the Library was launching the Adopt -a- Magazine program this year. Flyers regarding the program were located in the back of the room. Mr. Clark reviewed the Library budget and explained personnel services, regular salaries and wages were reduced; however, increases in health insurance and pensions added $100,000. The overtime listed in the budget was for police department coverage. He explained it was necessary. If they did not have coverage 16 hours a week, the climate would deteriorate quickly. The amount budgeted of $44,000 was not included the Police Chief's overtime. Commissioner Holzman requested a listing of all overtime whether it was in anyone's budget. Ms LaVerriere explained the Library used the Police for security services as opposed to Wackenhut, and they were paid for an overtime rate. Mr. Clark explained they had armed Wackenhut security at one time; however, the youth did not respect them because they could not enforce actual removal of the troublemakers. Commissioner Holzman requested receiving the real number of total overtime paid to Police in the City, including overtime paid from all departments, by the end of the week. As to operating expenses, there was a reduction. The overall impact of the $100.000 increase was in the book account, which was reduced from $162,000 to $121,000. This 9 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 was a huge cut that would negatively impact customers. The only organizational change was to pull a position from the back office into the teen services area to improve services to teens. This would encourage teens to return to the Library and also improve safety. Currently the Library was open 54 hours per week, from 9 a.m. to 8:30 p.m. Monday through Thursday. They are closed Friday, and open 9 a.m. to 5 p.m. on Saturday. The Library is closed on Sunday. They would like to go back to 62 hours a week and extend hours when the economy improved. Commissioner Holzman felt Library services were one of the most important community services to have. He requested how much it would cost to open on Friday for three or four hours, which Mr. Clark agreed to supply. Commissioner Ross felt continuity of services was interrupted by closing on Fridays, being open on Saturday and then closed on Sunday. Mr. Clark explained this was the Library's busiest year and use was up 5 %. Friday was the least busy day, getting only 500 to 700 people. Sunday was one of the busiest days at the Library, based on current trends. He noted the Delray Beach CRA pays for the Delray Beach Public Library to be open on Sundays. They pay $250,000 towards Library services and calls them CRA Sundays. Commissioner Ross suggested this be considered. Commissioner Holzman requested receiving those numbers, and Ms. LaVerriere agreed to obtain them. There was a question about the Cooperative Authority for Library Automation, (COALA) and it was explained it was a consortium. The City shares the same library technology database as Palm Springs, Delray Beach, Lake Park, North Palm Beach and they do so to save money. One of the most popular amenities the Library offers are the eBooks Overdrive system. Mr. Clark explained they were also in a consortium with 12 other libraries for this service, and Boynton Beach was the most used library with eBooks. Patrons were checking out about 300 titles per month and it was increasing each month as they added more titles. It is a very successful program and a great addition to library services. Via an interview with Mr. Clark, the program received positive feedback from the press. As to new books and best sellers, the reduction was about $40,000 and it will have a major impact. Mr. Clark had not received complaints about the variety or book selections. He anticipated next year, if the budget was reduced by the $40,000 they would receive complaints. Patrons would go somewhere else because the Library did not have it or would have to wait too long. There was agreement to add this to the wish list. 10 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Late fees were budgeted for $40,000. The fine was increased from 10 cents to 15 cents last year and they did not receive many complaints. Uncollected fees were handled through Unique Management, a collection firm, and the City receives a three to one return on investment. Mr. Clark noted just last week, someone returned $900 worth of materials because they would go to collection. Ms. LaVerriere had questioned the Library's phone bill. Mr. Clark had reviewed the matter and explained $1,700 could be cut from the phone bill budget because ATT had overcharged them for their elevator line. Mr. Clark explained two years ago, the Library cut its magazine list down 60% - 70% and instituted the Adopt -a- Magazine program. They raised $700 to $1,000, so they were able to restore some of that list through individual donations, although some complaints were received. Hard copy magazines were cut from the list if they were available online. Mayor Hay invited department heads to make any suggestions to cut budgets. Mr. Clark introduced Lindsey Nuzzo, Interim Museum Director. He explained they were in the process of hiring an Executive Director. The Museum budget had an overall reduction. Most of it was because the City owns the building so they were responsible for maintenance. Each year, he speaks with Facilities to develop a budget and the building repair had decreased. The floor was almost completely redone last year, so there was not much maintenance needed. The reduction was $10,000. They made cuts in many areas. Commissioner Holzman inquired what the salary for the Executive Director was. Mr. Clark explained the management agreement detailed the executive director and administrative position would be paid by the City. The total cost was $130,000, but since they could not reach that number, it was reduced to $123,000. Ms. Nuzzo thanked the City Commission for their support over last several years. She explained the prior director had provided updates regarding how the Museum was improving its financial and brand position in the community and those efforts were continuing. The Museum was on board with the Brand Promise and branding initiatives. They recently won a contest and received $10,000 in new signage provided by Bass Signs. They were bringing in repeat visitors from outside the community and now have 600 member families visiting the museum on a weekly basis. They offer cutting edge programs, such as the Science, Technology, Engineering, Arts and Math (STEAM) which was a novel way to integrate learning materials into one class. The class was being offered as a kindergarten readiness class and it was sold out for both sessions. They were pursuing new grant opportunities and hired a grants 11 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 manager. This year, they received a grant from the Quantum Foundation. The Foundation helped the Museum spearhead the STEAM classes and they were now offering the classes to underserved communities in Boynton Beach more than they have done in the past. The Museum continues to attract a good percentage of residents from outside of Boynton Beach, which was a significant component of the Brand Promise. The Quantum Foundation became involved with the Museum this past January/February. Commissioner Ross inquired if the Foundation would help support the Museum for the long term as she was aware they supported educational initiatives. Ms. Nuzzo believed so and explained the Foundation's focus was on health and science so they shifted their subject matter at the Museum to not only focus on history, but also health, science and the arts. The STEAM model integrated those concepts into one. She explained the Foundation was very on -board with that. Museum staff was evaluating how they would allocate additional funds from them, and may update an entire exhibit room to be more focused on movement for the kindergarten readiness class. The class was geared to youth aged three to five, which comprised the majority of their patronage. The plan to redo the exhibit was on a preliminary basis and the funds were available. The Museum also has a program called Build It, which is focused on engineering and building rockets, cars, planes and others. The program was so popular, they opened a homeschooler specific portion of it for a class. Part of funding for an educator was through the Quantum grant, and they have a full - time Education Manager, Tom Kelly, who has experience in children's museums. It was believed Quantum Foundation was a stepping stone. With the addition of the grants manager, they could pursue more grant opportunities which was the nature of a true non - profit. Mr. Kelly was paid a stipend on a monthly basis and staff was monitoring it on a monthly basis. Ms. Nuzzo was commended. The grant from Quantum was $73,000. The original intention of the Museum was to seek grants and move into their own non - profit status. If Quantum made the commitment, Quantum could consider increasing the grant each year and the funds could be leveraged. The Museum was requesting $194,000, which was about a $10,000 decrease from last year. The Museum was on a good track. The City's support and in -kind services, such as ITS services and maintenance were crucial so they could operate on a day -to -day basis. They were focusing on word of mouth marketing and providing an exceptional experience for the customer. Much of that comes from providing a well kept facility and being efficient with services. The Library Board was weathering the transition. They had interest from community prospects that wanted to become board members and were pursuing new candidates. 12 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Commissioner Holzman inquired if the current board members found money from other individuals and how much the minimum for a Board member was. Ms. Nuzzo explained Board members donate $500 annually. Commissioner Holzman explained those in his social circle all use the Museum and thought increasing the donation amount was appropriate. He suggested raising the amount to $1,000. There was a waiting list of those interested in the Museum's mission and staff was looking to expand the Board. There was no provision in the management agreement for the City Commission to raise the donation amount of the Board members, and it was recognized that it was important that, as the City diminished it support, funding from the Board increase. There are 10 current Board members excluding government employees. Currently there are two City liaisons who were Mr. Clark and Ms LaVerriere. Commissioner Ross suggested receiving a report from the chair of the Board. If the City Commission knows of anyone who can support the Museum they should be directed to the Museum. The Commission could assist the Board, but needed to know about the Board. There were no further questions. The Commission recessed at 10:52 a.m. and reconvened at 11:11 a.m. Mayor Hay anticipated finishing the workshop at about 2 or 3 p.m. and explained the Commission would stop 15 minutes prior to that to allow for public comments. Recreation Wally Majors, Director, Recreation and Parks, explained the Recreation and Parks department also had to deal with significant increases in insurance and pension costs, which equated to about $150,000. He was able to submit a flat budget by conducting a thorough analysis of all positions. It was determined there were some staff classifications that could be directly charged to the program revenue fund, which allowed that line item to be reduced by about $100,000. In terms of suggestions to further reduce expenses or increase revenues, he provided the members with a report which reflected two of their biggest revenue sources, which were operations at Oyer Park, formerly known as Boat Club Park, and Oceanfront Park which was the beach. The City generates revenue through both of those facilities through annual parking permits or daily parking fees. At Oceanfront Park, the annual parking permit was $20 in 2004/05. At that time, they sold slightly over 7,000 annual permits. The next year, they increased fees and the decal sales significantly decreased. In 2009/10, the fees for the permits were raised from $30 to $40 and again, the sales decreased. This year, the trend was still downward. For illustrative purposes, if they took the current fee of $40 and raised it to $50 and sold the same number of permits, over $30,000 would be generated. If there was a 10% reduction in decal sales, then it would drop to 13 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 slightly over $15,000. If there was a 20% reduction, then they would not experience any increase in revenues. Mr. Majors explained sales of the decals were only one source of revenue. Daily fees were significant and accounted for about $150,000 annually. Between November 16th and April 30th, a daily pass cost $10, and between May 1st and September 15th, the fee was $5. Mr. Majors did not include this in his proposal because on each side of the beach, the County has Boynton Inlet Park and Gulfstream Park. He noted County parks do not charge for parking so it would have an impact. To his knowledge, all municipalities charged a parking fee. The City has 160 parking spots and the County has 75 or less. It was important to figure out how much to increase fees before attendees would go to a County park. He noted there was equal parking with two County parks near the City's park. Either the $31,000 or $15,000 was still a good number. He agreed with Commissioner Holzman about how to balance the issue as they did not want to be perceived as constantly increasing fees. Mr. Majors explained they received an opinion whereby previously the City did not charge individuals with a Florida handicap decal to enter the park. Of the 4,000 to 5,000 visitors weekly, as many as 15% to 20% received this waiver. If this changed, those using the handicap parking would still receive access to the premium parking spaces, but they would have to pay to enter the park. He was unsure what other municipalities did with the handicap parking. Delray Beach has a few spots near to the beach for free. Commissioner Holzman thought it could be appropriate to waive the waiver. Mayor Hay commented they could charge a pro -rated amount because they are handicapped and are treated with care. Some leniency should be given. Commissioner Holzman thought charging the affected 10% of visitors could avoid raising the rates for everyone else. Ms. LaVerriere suggested they prepare an agenda item for late August which would contain an analysis of the issue and a decision could be made then. There was consensus to do so. Mr. Majors explained an educated guess regarding the savings could amount to $100,000 to $150,000. There was agreement to put this item on the wish list. At Oyer Park, individuals are charged a fee to park and launch on weekends and holidays. At Oceanfront Park, the fee is in place seven days a week. The fee for annual parking is $50 and it has remained $50 since being implemented in 2002/03. Similarly, the Commission should recognize sales of decals trended down and had a slight upturn in 2010/11. This year, 498 decals were sold so sales were down again. Daily fees were in the upper $30,000 to almost $60,000 range. Mr. Majors explained apart from Phil Foster Park in Riviera Beach, the City's boat launch is the busiest in the County because of its proximity to the Gulfstream 14 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Mr. Majors could not recall the County's fee, but would provide the information to the members. He wanted to point out it was $50 and the City made significant improvements to the facility there It is a heavily used park and the park can be used 24/7 for fishing or boating. This is a great potential revenue source Mayor Hay inquired how many outside residents use it. Mr. Majors explained the City could not charge a higher fee for out -of- County residents because the City constructed parking spaces with County funds and that provision was part of the agreement. He suggested this item be part of the discussion in August. Discussion turned to the facility at Oyer Park and Commissioner Holzman inquired if staff was considering turning it over to a vendor. Mr. Majors explained they had done so in the past and allowed a vendor to operate a small concession, but it did not work out well. The City did not receive a lot of revenue but they were still optimistic it could be done with a good, high - quality menu. The City has a group there which uses the bait shop on the west side of the park, which was being leased by the Florida Fishing Academy. Staff intended to renew the lease for two years, but with the understanding staff could terminate the lease with 60 days notice in the event the City wanted to do something else with the building. The prior operator wanted to come in and sell bait, but it would have to go through the bid process. Florida Fishing Academy also indicated that in addition to providing instructional services, they wanted to sell items such as bait. They are willing to pay $1,200 per month so there are some options. Vice Mayor McCray pointed out in the past, the City was receiving a portion of the bait shop proceeds. Mr. Majors explained it was a monthly fee. There was agreement the City was satisfied with the service Florida Fishing Academy provides to the youth and thought it would be beneficial if they could generate revenue as well. He would have to check with the Legal department to modify the lease agreement. When the City entered into the agreement, some local vendors were upset, but circumstances changed. If they are paying a fee, it evens out. The good news is staff would continue to serve the community in the best manner possible. Staff deals with areas of the community that have different income levels and some areas rely on the City to provide affordable options. They took the funding they had in the General Fund for the Youth Empowerment Center and shifted it to the department's revenue fund so they could maintain the program. That program has helped and the City provided alternatives to misbehavior. The pool continues to prosper and they partnered with the Drowning Prevention Coalition to provide vouchers for free swimming and safety lessons. Discussion turned to discounts or waiver of fees for residents desiring to rent facilities. Mr. Majors explained the City Commission could consider a sliding scale. The lowest fees were for residents and non - profit agencies. He commented the City's fees are the 15 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 lowest when it comes to rental fees compared to any other municipality. If residents have a hardship, they will work with them. A non - resident pays at least 25% more and for - profit business would pay more than that. Mayor Hay noted the park names have not been updated on the internet. Mr. Majors agreed to update the names and have their literature reflect the new names. City Hall Lori LaVerriere, Interim City Manager, highlighted the changes. The City Hall budget had a 2.89% increase of about $48,000. This was a catch -all budget. It provided for all of the electric in City Hall, the postage, and property liability insurance. The budget also funds for unemployment. Last year, they funded $98,500 and this year, reduced it to $75,000. She explained the amount was a guess, and so far this year, they have used only $49,000. They funded an increase of $13,000 for postage. This includes all mail and correspondence throughout the City. She included $2,000 for promotions and marketing for the Sister Cities Organization. Ms. Heavilin, of the organization, has a budget of slightly over $3,000. They are raising money and have some expenses. They requested the City pay the membership fee for the Sister Cities International organization. The amount was about $600 to $700. She did not have the actual amount when she allotted $2,000 so the amount could be reduced. The Board had not allocated any funds to them for the last three years. Commissioner Holzman commented when the program came before the Board, they were specifically asked if they would approach the City later for funds and were told no, all they wanted was their support. He thought it was a great program, but if they could not raise the funds themselves, he would rather give the funds to the Museum. There are many other initiatives that could be supported with the money. If they could not raise the funds, there was not enough buy -in from the community and the program may not be worth it. His point was requests would start at $2,000 and would then increase. Ms. LaVerriere noted the response was given during a discussion about Les Cayes. It was further noted the City sent a delegation to Haiti. She understood Commissioner Holzman's comments but the conversation indicated some of the Commissioners may be interested in assisting with the membership fee. She clarified they were not asking for $2,000. She put that number before the amount was known. If the Commission dropped it even to $1,000 it would be a huge help. Mayor Hay agreed with Commissioner Holzman's comments and recalled the conversation but expressed $600 would not be significant. He supported reducing the level to about $1,000 with the understanding they cannot keep "returning to the well ". Commissioner Ross, as the liaison to the organization, has held this conversation with them, but they are at a pivotal point. The organization does good work. Commissioner Holzman thought if an organization cannot raise $600 through their Board, their members, or the community, there was no buy in. 16 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 Commissioner Ross commented the organization does fund raise but they also have expenses. They hosted a reception. Vice Mayor McCray explained his experience when he visited QuFu China. They want the City to know they are culturally friendly. They are doing a good job and were doing it for the City. The organization gets nothing from the task. Commissioner Ross suggested $1,500. Commissioner Holzman supported no funding. Mayor Hay and Vice Mayor McCray supported the $1,500 and there was agreement this amount would be set aside for the wish list. Marketing Plan Ms. LaVerriere explained the plan was presented to the City Commission and was part of the Branding Initiative. There was a $250,000 plan that spanned five years; $180,000 of which would provide banners. Staff was proposing to allot $25,000 to assist with artwork development, collateral development, and moving forward with the internal branding. Commissioner Holzman thought it was more important to increase its beautification efforts and show its residents and others who visit that Boynton is a beautiful and welcoming City and it was Tess important than Branding that the County is providing for the City. He wanted to take those funds and add them to beautification efforts with the hope it would provide a trickle -down effect. Vice Mayor McCray disagreed. He thought a marketing campaign was essential and the City needed a logo and identity. Ms. LaVerriere explained part of the plan was to fund a professionally created video. Commissioner Ross explained the Business Development Board wanted a video. She explained this was only a small amount of money. Mayor Hay commented the Branding promise was working. When he attends the League of Cities, other Mayors approach him about it. There was consensus to move forward with the funding. Ms. LaVerriere also commented she and Ms. Brooks, the Executive Director of the CRA held a discussion about special events. The City used to hold special events in the past, but it transitioned to the CRA. The events were expensive and the CRA pays for them. When City staff is used for items such as the associated road closures, public works, setting up a stage, etc, the City charges the CRA for the needed personnel. She noted the primary events are the Holiday Parade and Fourth of July celebration. Ms. LaVerriere proposed to put $15,000 in the budget to assist the CRA that the City is not charging the CRA to pick up the garbage, clean up the park, provide a police detail, etc. She commented it was a policy decision and sought direction as the CRA would be struggling next year to provide those events. Susan Harris, CRA Finance Director, explained they budgeted $310,000 and next year they proposed to budget $276,000. Commissioner Holzman did not think the funds should be allotted. It was under the CRA's purview. He commented the City had an $830,000 deficit and should not worry about special events. He noted the item could be added to the wish list and if the funds are available, it could be funded. Ms. Harris explained the events are funded through the TIF funds. Mayor Hay thought one entity should help the other. He did not have a 17 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 problem assisting them, but could not support the request. He suggested this item be put on the wish list, and there was consensus to do so. Property Insurance Premiums Ms. LaVerriere explained there was a savings in insurance premiums of $45,000. The Inspector General Fee of $92,000 a year was included in this category. She noted 12 of 13 cities were suing the County over the formula to develop a pro -rata share of the service, but Boynton Beach was not one of them. They paid the last quarter of last year and the first quarter of this year, and have not received any further invoices because of the law suit. The Clerk and Comptroller was holding all the payments made by the City until resolution of the suit. The County did, however, request the City enter into an Interlocal Agreement to pay the County's Inspector General's office directly and the City responded they would work on an intergovernmental cooperation basis. Commissioner Holzman left the dais at 12 noon. Attorney Cherof explained the letter sent to the County invited them to draft an agreement and send it to the City. Nothing since has been received from the County Attorney's Office or anyone else. Until those details were available for review, there was nothing further to be done. The funds are in the budget but it was unknown if the formula would change. Last year, the City funded $100,000 for economic development and used $30,000 to $40,000 to date. Since an Economic Development Division is proposed in the Development Department, Ms. LaVerriere pulled the $100,000 out and proposed to keep $25,000 in this budget for specific initiatives. By not having those monies in the Division, that budget would support the Economic Development Manager getting materials and data together. The $25,000 was for a small incentive program that may be developed. She anticipated there would be much work to be done before the City could roll out any economic development incentives. The proposal was to reduce the budget from $100,000 to $25,000. Ms. LaVerriere noted the electric bill increased by $10,000 as they were anticipating a rate hike. The budget was increased from $250,000 to $260,000. She explained this concluded the City Hall budget and there were no questions received. City Commission Ms. LaVerriere explained this budget has a 6.8% increase due to the March election and three seats on the Board. This changed some miscellaneous supplies such as business cards, name tags, shirts, jackets, photographs, plaques, and others for three seats. Business meetings were increased from $5,000 to $6,800 and she recommended the City host a Palm Beach County League of Cities luncheon. Boynton is a large City and a big player, and they have not hosted the luncheon in many years. Allotting $1,500 18 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 was conservative, but she thought they could work with a local vendor. The County was looking for hosts in November. Mayor Hay encouraged as many Commissioners as possible attend, when possible, as there is much information shared at the luncheons. The total budget would increase by $1,700 and was a minimal increase. In response to a question posed, Ms. LaVerriere explained the $15,000 budgeted for the Strategic Plan was a higher amount and was more for a consultant's fee to work with the City's annexation and Interlocal Service Boundary Agreement, which changed the way the City could pursue annexation in pocket areas. There were some changes on the County Commission and staff levels. The City was ready to start approaching the matter again and thought the County would give a better reception. There were preliminary meetings with the County to review some developments that the City provided water to that they can annex. Donna Brosemer had acted as a liaison with the County and researched water service agreements, but there were questions about the legality of the City's agreements. Ms. Brosemer's contract was up a few years ago. Staff took the information and met with County staff. At that point, the reception was not favorable, so the City did not pursue it. Commissioner Ross explained the Commission should be provided with the data Ms. Brosemer had provided, which Ms. LaVerriere agreed to look up and bring back. Ms. LaVerriere also proposed to fund some type of a Strategic Planning Retreat as there would be three new members on the Commission. Commissioner Holzman returned to the dais at 12:13 p.m. City Manager Ms. LaVerriere explained this budget was up 9% due to pension and health cost increases. She restored funding for a full office as she and Carisse LeJeune, Interim Assistant City Manager, had been operating at a reduced staffing level on a temporary basis. There was funding for $150,000 depending on the appointment of a City Manager. The office positions were City Manager, Assistant City Manager, Assistant to the City Manager, a full -time Administrative Assistant, a part-time Administrative Associate, and 75% of the Grants Administrator salary was budgeted from this budget. Ms. LaVerriere noted some items were reduced. She, as Interim City Manager did not attend ICMA conferences; however, former City Manager, Kurt Bressner, did and paid for it himself Staff does not receive cell allowances, and some of those items were reduced. If a new City Manager is appointed, some of that money needed to be available to negotiate with. The salary and funding set in the budget was based on the International City Manager conference. The pension costs increased from $87,000 to $124,000. Business meetings were increased $1,500 to allow for attendance for the ICMA conference if it was negotiated. All else was fairly flat. 19 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 It was noted two people were doing the work of three people. A new City Manager would need the support of the Assistant City Manager and an Assistant. There was discussion it may be helpful if the part -time position were restored to a full -time position; however, Carisse LeJeune, Interim Assistant City Manager explained she and Ms. LaVerriere do program and project management, which administrative staff is not able to do. Ms. LaVerriere explained the proposed budget keeps the office whole. The increase was due to the pensions, health insurance and the City Manager's salary. All else was flat or slightly reduced. There was discussion about the Ecivis software for the Grants Manager. A few years ago, the position was in the Recreation and Parks Department and then was moved to the City Manager's office. They purchased the software five years ago to electronically seek and manage grants and its reporting components and have done so in a very effective manner. They were happy and initially subscribed for the software as a beta tester which helped with the price. The price for the software was kept flat for years. There was discussion about the Mae Volen Center which was in the City Hall budget. They requested a $10,000 increase. When the Volen Center took the transportation program, they were very successful. The initial runs went to Walmart, Target, the mall and those types of runs including one trip a day to the Senior Center. The demand for the runs to the Senior Center caused two additional trips and four additional routes which the Center absorbed. The Center received four buses from the City which needed work and through discussions with the Center, it was learned additional funding would be helpful. Staff felt the increase from $75,000 to $85,000 was warranted. Commissioner Holzman reminded the members that when this program was initially proposed, he opined they would seek additional funds and they did. He explained the City could have performed the services via an increase in the cost of ridership to be commensurate with the Center's rates. Ms. LaVerriere noted, in fairness, the program was modified due to a demand change and an increased level of service as opposed to when they entered into the agreement. Commissioners Holzman and Ross were not in support of the increase. Vice Mayor McCray noted they do not have control over the economy, and if usage increased, the price should increase. Commissioner Holzman thought when important services are outsourced, all control is lost. This will be the first of many times they would support an increase. Commissioner Ross suggested the Center absorb half of the increase. This item would be put on the wish list and discussed when the Commission discussed the millage rate. There was agreement to break for lunch at 12:26 p.m. This ended the morning session of the Special Meeting. (Continued on next page) 20 Meeting Minutes Special City Commission Boynton Beach, Florida July 17, 2012 CITY OF BOYNTON BEACH c ' W • ► • ow L,�n:►` a cC - , Vice Mayor Commissioner -n H • Izman Commissi ATTEST arlene Ross, Commissioner / J • / -04. -4-Ac Jan t M. Prainito, MMC Clerk AI Cati Lary, I Catherine Cherry-Gub rman Recording Secretary 21