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Minutes 07-22-14 BudgetMINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE PROGRAM ROOM AT THE LIBRARY, 218 N. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, ON TUESDAY, JULY 22, 2014, AT10:00 A.M. PRESENT: Jerry Taylor, Mayor Joe Casello, Vice Mayor David T. Merker, Commissioner Mack McCray, Commissioner Michael M. Fitzpatrick, Commissioner CALL TO ORDER 1 Lori LaVerriere, City Manager James Cherof, City Attorney Janet M. Prainito, City Clerk Mayor Taylor called the meeting to order at 10 a.m. He returned to the Fire Department budget for additional questions. Mayor Taylor understood that there are two units in every fire station. Chief Carter pointed out Fire Station #5 has more than two units that includes a Special Ops Unit and Shift Commanders Unit for a total of four units. Mayor Taylor inquired about the legal requirements for personnel. Chief Carter replied there is a NFPA (National Fire Protection Association) standard and there are time -use studies on effective size of crews. It recommends four personnel on a fire apparatus. Three per unit is the Department's standard since the data shows there is very little difference in efficiency of a three - person crew versus four. Mayor Taylor asked why there were four units at Fire Station #5 and Chief Carter replied there is a fire unit and transport unit like all other stations. There is a Special Operations Unit that does all the specialty rescues, deals with hazardous materials and dive rescues. There is also the Unit Commander truck available for each shift. The need to buy new equipment was previously discussed and Chief Carter reiterated it is funded through the fleet replacement plan. The Department was on schedule to replace some vehicles. The order would be placed this year for delivery next year. Mayor Taylor had found that other municipalities pay for their fire trucks over a 20 -year period. It is done so the people living in the City over the future years get the use of the truck rather than current residents paying the full amount. The two extraction tools scheduled to be replaced will probably only be one and the others replaced over the next few years. The last one purchased was in 2006 and is nine years old. Mayor Taylor was attempting to find the $44,000 to fund the three firemen. Chief Carter stressed the Department was very religious about maintaining the tools to get the maximum life. MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Vice Mayor Casello questioned if leasing or financing the equipment would be more or less expensive. Mr. Livergood reiterated the strategy to prefund all equipment. The anticipated future purchase date is determined and then each year, payments are transferred to the Fleet Fund so the full amount is available to pay for the equipment when it is purchased. It is easier to budget and there is no concern about buying the fleet. The variables for the departments to reduce their annual expense would be to extend the life or change the vehicle type to a lesser expensive model. Since the money is in the bank, it is readily available at time of purchase. Vice Mayor Casello inquired if any profit was transferred back into the General Fund and Mr. Livergood replied yes. However, it was not recommended since future needs cannot always be anticipated. The Fleet Fund balance can be projected for the next 25 years. Monies can be transferred, but not if future purchases would be leveraged. Commissioner Merker gathered Mr. Livergood totally approved of the process. Mr. Livergood was proud of the way it was being done. It is an excellent way to fund municipal fleet. Mayor Taylor reiterated his suggestion to take the $44,000 out of the Fleet Fund to avoid the layoff of three firefighters and the money can gradually be replaced over the life of financing for a future purchase. Ms. LaVerriere mentioned the $44,000 is minute compared to what will follow next year and having to fully fund all the firefighters. When the final figures are determined it was anticipated there would be a savings on the health benefit of $200,000. In the Fire budget there was $100,000 for turn -out gear that was a match for a grant that was not received. The $100,000 will be deducted so the $44,000 should not be an issue this year. The total revenue and expenses will be calculated again at the end of the workshop. Mayor Taylor surmised there would be no problem keeping the three firefighters and Ms. LaVerriere agreed the $44,000 this year would not be a problem. Next year, funding the full salaries of all seven firefighters from the grant may be an issue. Chief Carter noted there would be an application in the fall to extend the SAFER grant. Commissioner Merker was not comfortable with deviating from the Fleet plan even for small amounts and the equipment is needed. Mayor Taylor thanked Chief Carter and commended the Department for doing a great job. Chief Carter would continue to look for savings and additional revenue opportunities. Commissioner Fitzpatrick agreed with the current Fleet plan because it smoothed out the process and avoided crisis funding. It gives the City a reserve. He did want to keep the firefighters, but opined the City should comply with the budget until the cycle of deficit spending has ended. He did not want to give up on good fiscal policy. 2 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA GENERAL FUND - CAPITAL IMPROVEMENT JULY 22, 2014 Mr. Livergood presented the Capital Improvement Fund budget. It is the road map for the next five years. It is important for staff to use as a planning tool for time and funding needs. This year the Capital Fund deals mainly with maintenance. It is a necessary evil to maintain the structures and infrastructure of the City for the public to continue to use the services. The list includes roof repairs, painting, carpeting and miscellaneous projects. There is a project for $100,000 for the pistol range at Fire Station #3 that needs extensive repairs. The cost covers interim repairs to keep the building viable for the next three years. It should be part of the discussions on the Police facility. Vice Mayor Casello asked if sharing a range with another Police Department would be a possibility. Mr. Livergood replied absolutely and it would have to be discussed with the Police Department if they can share space or pay for rental space. They would need a resource in order to do it. There would be an expense involved. Mr. Livergood thought it was wise to keep the $100,000 in for the next fiscal year and as the Police facility plans evolve, this would be one component to determine if it would be cost effective to provide the service. Commissioner McCray was in favor of keeping the $100,000 and agreed with Vice Mayor Casello's suggestion. He would like to see the research and figures on sharing or leasing. The park projects listed are smaller projects with the exception of Congress Avenue Barrier Free Park. Debbie Majors, Grants Administrator, reported an application had been submitted for the Barrier Free Park project. It requires a one -to -one match. To avoid having to add additional funding in the Capital Improvement Plan, existing projects were traded to offset the match monies needed. The legislature funded all the small projects and none of the large projects, consequently the Barrier Free Park grant was denied. It was planned to reapply in October. In the meantime some of the smaller projects can still move forward and still use them for the match next year. Commissioner McCray was concerned about the Sara Sims Park renovations. Ms. Majors explained the plans were to renovate the restrooms bringing them into ADA (American with Disabilities) compliance, adding a fitness zone or exercise area and resurface the tennis courts. There will be lighting improvements along the walkways. Mayor Taylor noted there was mention of fencing for $25,000. Mr. Livergood added one area was Hester Center and Rolling Green. Commissioner McCray knew they were in need of repair. Mr. Livergood advised there were options at Hester Center to re- 3 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 evaluate the criteria and goals as far as fencing. Something different could be developed and still provide the necessary security. Mayor Taylor thought bids would be sought. Mr. Livergood advised everything in capital improvement requires a bid and competitive pricing. The Civic Center work included $60,000 for restrooms, $70,000 for the auditorium floor and ceiling that are a couple years out. Mr. Livergood emphasized this would be a decision made in the future that will be affected by the Town Square Plan. There were structural concerns about the aluminum boardwalk around Mangrove Park and the plan was to hire an engineer to review the walk and plan the costs for the repair work to be done two year out. There are additional expenses for Oceanfront Park lighting, especially in the lower parking lot. The expense is projected for a couple years out, but the planning has to commence now. A costly project is the resealing of Oyer Park slated for next year at $100,000. It will include some base repair and then a seal coat and striping that adds $20,000 to $25,000. The work cycles every five to six years. Commissioner Fitzpatrick surmised that a share of the damage is from non - resident users. The percentage of use was not available. Mr. Majors recalled there had always been a shortage of car parking spaces without the trailers. The County supplied some funding because of the proximity to Boynton Inlet. It was agreed there could be no differentiation of the fees between City and County residents. As long as you live in the City or the County, the annual parking permit fee is the same. A daily fee of $10 is charged on holidays and weekends if an annual pass is not purchased. There is no data on who uses the Park. Commissioner Fitzpatrick wanted the dollar revenue. The last full year of data on the revenue was 2012/2013 that generated $52,121 from parking fees and decal sales. In 2013, 480 decals were sold. The only cost directly attributable to the Park would be the two parking attendants' expense of $26,000 to $27,000 a year. The administrative costs are minimal. Vice Mayor Casello inquired when the fees had last been increased and Mr. Majors replied it had been the same since the initiation of the fee system. Mr. Livergood pointed out there was another project for Oyer Park for 2016/2017 of $200,000 to repair the small wooded fishing pier at the site. It is an amenity that is nice, but without it, the maintenance cost would not be needed. Mr. Majors added the fees and decal sales are trending down that is indicative of the economy and gas prices. There is a large commercial fishing industry. Ms. LaVerriere saw the boat ramp as an opportunity for gains. Mr. Majors was willing to review new fees. He cautioned that raising fees usually results in reduced use. Vice Mayor Casello concluded Boynton Beach has one of the premiere boat ramps in the area and the City should capitalize on that asset. Mr. Majors agreed it was one of the busiest boat ramps in the County. Commissioner Merker thought it was logical to raise the fees to meet maintenance requirements. If the Park is improved, the fees have to be increased. 4 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Mayor Taylor wanted any dock master that may be hired, to be a contractor rather than an employee. Mr. Majors advised it used to be a part-time parking attendant. Ms. LaVerriere thought a security firm employee could be utilized. Commissioner McCray was glad the projects and cost would be brought before the Commission under a request for proposal. It was thought some of the estimates were high. Mr. Livergood commented the big expense is the prep work. Mayor Taylor did note there was $8,000 for Sara Sims Park. JULY 22, 2014 Mr. Livergood continued there were public safety related projects with one of the most significant in the five -year program for 2016/2017 being $2.2 million to replace the radio system. It would be taken out of the fund balance in the CIP. Grants would be sought. Mayor Taylor inquired about when the improvements for Fire Station #1 would begin and Mr. Livergood responded it would commence at the beginning of the new fiscal year. The next group of projects involved IT improvements and replacements that have been placed in the capital plan due to the high cost. Commissioner McCray asked how many monitors could be bought for $30,000. Mr. McNally estimated 35 to 40 computers could be purchased. The possibility of leasing would be researched. Mayor Taylor asked where the data center was located that needs fire suppression and Mr. McNally answered it was at Fire Station #5. The area houses 90% of all computing resources, supporting all the applications and storage. Mr. McNally had been adamant about using a gas -based system rather than water when the building was constructed. The main water pipe for the entire building goes through the computer room. Staff hoped to be able to reroute the existing pipe and put a non -water fire suppression system in the room. The estimates for the enterprise system are shared with Utilities and their administrative staff. Ms. LaVerriere indicated the transfer is from the Utility fund into the Capital fund. Commissioner Fitzpatrick estimated Utilities' share would be $81,000. The planned changes would get the City up -to -date on the renewal of the enterprises license agreement. It was anticipated some of the IT fees next year would increase. Mr. McNally remarked the CRA interlocal agreement includes monies for licenses and software expense. TRANSPORTATION PROJECTS Most of the money comes from the $375,000 transfer from the Local Option Gas Taxes. All the projects listed were eligible to use those funds. 5 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 General street maintenance would gear up in 2015/16. An annual bridge repair line item is included. There are several entries for the Florida East Coast Railway. Each crossing had been inspected with the FEC and All Aboard Florida. The final improvements were developed. The location of pedestrian crossings and the cost was estimated because final plans by the railroad had not been submitted. The general line item for the FEC crossing upgrade is a yearly cost from the FEC to maintain their existing grade crossings. They are based on a long- standing agreement. The Quiet Zones are a separate issue. It is a replacement for the train horns. The improvements made for a quiet zone would improve the safety at that crossing. There are three or four supplemental safety issues to create a quiet zone. Quad gates could be installed or the barrier median could be extended There is a measured safety of the train horn, too. The impact on pedestrian safety has to be considered. A long quiet zone through Palm Beach County would require the cooperation of all municipalities. There are several funding sources that are unknown at this time. One funding source may be the Metropolitan Planning Organization that has allocated $6.2 million for the construction of quiet zones. Palm Beach and Broward Counties have applied for a TIGER (Transportation Investment Generating Economic Recovery) grant up to $20 million and the State legislature allocated $10 million State -wide for construction of quiet zones. The State grant requires a match from the municipality. Vice Mayor Casello ascertained the City had eleven crossings. He inquired why the 79 miles per hour was a threshold? Mr. Livergood advised it was established by the Florida Department of Transportation when the safety standards changed. Even if All Aboard Florida fails, the quiet zones could still be funded. The City's position on All Aboard Florida should be discussed as an agenda item. Mayor Taylor had several residents asking about the City's position on the proposed rail system. Commissioner McCray concurred that homeowner associations in his District have discussed it and are concerned. Ms. LaVerriere suggested All Aboard Florida representative be invited to a meeting. Pedestrian crossings have been a concern when the trains travel 80 miles per hour. Attorney Cherof interjected pedestrian safety has been a primary concern by those on the technical committees. Commissioner Merker asked why the project would not proceed. Mr. Livergood advised it was more political than technical. Carisse LeJeune, Assistant City Manager, recalled neighboring communities that would not have an All Aboard Florida station expressed their concern it would cause safety issues and funding problems with no benefits. The assertion was made that All Aboard Florida would assist all the southeast Florida coastal communities, but not everyone agreed with that assumption. 6 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Mr. Livergood saw the benefit with the coastal Tri Rail link having a station downtown. It would allow residents to use the local station to get to West Palm Beach, to transfer to All Aboard Florida. Commissioner Fitzpatrick discussed the possible use of stationary horns. The horn would be installed at the crossing and direct the sound down the roadway rather than down the tracks. Those residing next to the crossings would probably prefer a quiet zone solution. Mr. Livergood cited the fact Boynton Beach Boulevard crossing was already made a quiet zone was beneficial. Closing some crossings was considered by staff, but was not a solution. Commissioner Fitzpatrick considered the stationary horn on the Tri Rail tracks as a viable possibility because it would be much smaller. Unfortunately, changes to the CSX crossings would have to be funded by the City. The wayside horns cost approximately $75,000 per crossing compared to $500,000 for a quad gate. City staff was working with the League of Cities to determine which supplemental safety measures were desired compared to the cost and the wayside horns. Commissioner Fitzpatrick agreed the SEC tracks should have the quiet zones in light of the possible funding sources. On the CSX tracks, stationary horns may be more practical. Mr. Livergood advised quad gates are already on the CSX line on Ocean Avenue. With the increasing population in South Florida there is an impact because communities are looking at more dense housing along the rail corridors to encourage mass transportation for work and pleasure. Vice Mayor Casello could not understand how 32 more trains a day, going 79 miles an hour through Boynton Beach, would benefit the City. The Seacrest Corridor project deals with landscaping along the Forest Park area and remains in the budget at $138,000. It will be coordinated with the Utility Department that will be doing some utility work in the area. The area is along Seacrest from the Library south to Woolbright Road. In the future there is a project to redesign the same portion of Seacrest to provide a curved roadway for more of an urban feel with street lighting. The entire project is estimated to be $5 million and will probably remain five years out. The sources of revenue were listed in the materials. Commissioner McCray saw an imbalance of $41,000. There are three projects that were from a 304 Bond fund, a separate accounting tool. The Wilson pool is now five years old and the rebar is beginning to rust through. Mayor Taylor declared a five - minute break. MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA UTILITIES JULY 22, 2014 Colin Groff, Utilities Director, gave an overview of the budget. There is $40 million for utilities coming from the utility fees and about $36 million in capital and bond sources. Expenditures match the revenues. About 21% of the total City budget is the Water and Sewer Fund and about 18% of $188 million is Utility capital projects. The water and sewer is capped at 7,000 gallons a month for residential properties and stormwater revenues of $3.6 million for maintenance and capital projects. Most of the expenditures were staying flat. There are two things causing an increase of $900,000. One is $545,000 for pension, healthcare, personnel costs as previously discussed and $330,000 is an additional transfer to the reserve fund for future appropriations. The fund pays for unexpected emergencies. Commissioner Merker asked if an objective was to increase the reserve each year. Mr. Groff's objective was to always increase reserves to anticipate problems. There are rules in place dictating the reserve balance. Mr. Howard added two to three months of operating expenditures are in reserve for operations and other funds transferred to the R &R (Replacement and Renewal) account for projects. The reserves would increase over time. The objective would be to increase the R &R reserves more to cover the ongoing projects. Vice Mayor Casello wanted an update on the water meter changes. Mr. Groff advised the changeover was 90% complete and should be completed in the next couple months. There are issues with radios and other small problems, but it should be fully operational very soon. Mr. Howard advised the projected deadline is September 30 Approximately 34,000 readers had been replaced. Two antennas were installed in the City. A couple areas are weak and have to be resolved. Mr. Groff speculated, over time, the system would be more efficient. The data will help to find better ways to manage utilities. The system does not allow remote shutoffs or hook ups. There is a project to allow people to access the utility 24/7 to pay bills and get water turned off or on. There would be a fee to do it on Saturday on an emergency basis. Vice Mayor Casello inquired if efforts were made to assist the elderly. All utilities are searching for more and better ways to provide more information to the public. Bill averaging, prepay or auto pay functions are being reviewed so customers can pay their bills on time to avoid shut offs. Mr. Howard interjected the shut -off notice is sent in the bills. Friday shut offs were being discontinued to avoid the weekend issues. Mr. Groff agreed there were improvements that could be made. The tools the City has can do a better job for the residents. 8 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Commissioner McCray asked for clarification on the debt service line item for $5,000. Mr. Howard replied it covered the fee for the paying agent to handle the administration of the calling of the bonds. The bank is paid an annual administrative fee. Under capital, there is an anticipated major plant expansion and upgrade. It is scheduled for completion September 2016. There is a contract in place and working on conceptual designs. A final price would be brought to the Commission. Hopefully there would be some reductions in cost. The other aspect would be the raw water main. Section A has been completed, Section B is being completed now and then Section C would be bid with bid opening in September. Most of Section C is not in rights -of -way avoiding road closures. There are 5,500 feet of long drills under 1 -95 and roads. The depth would be 40 to 50 feet below I- 95. The neighborhood projects include replacing water lines and upgrading storm water systems as needed and adding new fire hydrants. They would rebuild swales and patch the pavement and do overlays. Neighborhood meetings would be held prior to the projects and electronic communications used to advise the public. The projects can be fairly disruptive for short periods of time. Commissioner McCray stressed the Commission should be kept fully informed so they can respond to resident questions and concerns. The central Seacrest corridor is a two- phased project. The first phase is the north end of the corridor and should alleviate some flooding. Driveway aprons would be replaced for a uniform look. The scheduled completion date is April, 2016. The second phase should commence in May, 2016. It is a 36 -month project and includes the City Hall complex. Vice Mayor Casello inquired if the Downtown Master Plan was being considered for the placement of the new lines. Mr. Groff indicated some changes may have to be made on the City Hall block. It would be coordinated. The Lakeside Gardens area is another project to replace water mains, install water improvements and address flooding with intersection improvements. It is 50% storm water and 50% water lines that need to be replaced. The storm water projects total $4.2 million over a couple of years. It was in the design phase for Venetian and Treasure Isle areas and INCA has some serious drainage concerns. There are some easement issues too. Rolling Green Ridge is in concept design to reduce flooding, fix piping and resolve some swale issues. NE 1 and 6th Avenue floods and the engineering is started. A study was being done to review the entire area. NE 20 and NE 2 is included in the Lakeside project. 9 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Mayor Taylor inquired about the area along Industrial Drive, the Arts District. Mr. Groff reported the drainage system is in good shape. There is a downstream issue with FDOT that should be corrected. The existing system does not belong to the City, so there is no funding budgeted. There is a five -year plan for reuse with $9.85 million budgeted. There are projects planned in 2014/2015. The current reuse capacity is .38 or 380,000 gallons per day. It has to grow significantly to meet the permit requirements and in the consumptive use permit. The Utility Master Plan has to be updated by combining all utilities and looking for synergy. The goal has to be met in the allowed timeframe. Projects are scheduled for the next five years. Mayor Taylor reported the City has to get to 100% by 2026. Every year the efforts made have to be reported. Commissioner Fitzpatrick asked if the lakes could be used for drainage. Mr. Groff opined if it was less expense to put the water into ponds than to eject the water down. There may be opportunities to take advantage of the lakes to put water in to get rid of it. There could be financial impacts to study off peak water runoff so it does not go down the deep injection wells. All factors have to balance to determine the most cost effective process to dispose of the affluent of the wastewater plant and get beneficial use of the water. A project actually funded in the next budget is High Point. Another project is a main extension to go out to the barrier islands and add a couple golf courses as well as those homes along the way to use .4 million gallons a day average flow. The third project is Cypress Creek Golf Course and the adjacent customers that could be connected. All the projects would gather 1.5 million gallons a day and it would be a large increase in one year. A portion of Hunters Run is connected. The County contracts have to be revisited and discussed. Hunters Run has a consumptive use permit that will have to be renewed. Reuse is available. Ms. LaVerriere added Hunters Run would likely be required by South Florida Water Management to hook up. Mr. Groff indicated Hunters Run would add another 2 million gallons a day. Commissioner Fitzpatrick asked if the connection under the intercoastal would be big enough to handle the reuse needed for the barrier island golf courses and residences. Mr. Groff would examine the service area and seek potential users in the service area. The goal was to have the reuse water available to anyone who wants it. Reuse water is an interruptible service because it is just for irrigation. Fire hydrants cannot be connected for that reason. Commissioner Fitzpatrick asked if water conservation should be encouraged in relation to the rates charged. Mr. Groff indicated there are tiered rates for water and the 25% surcharge is added. The current rates are good through September 2016. Another rate 10 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA study would be initiated next year. Finishing the Master Plan was a priority before the next rate study would be done to capture all the projects. Mayor Taylor recessed the meeting for lunch from 12:02 p.m. to 12:17 p.m. CEMETERY JULY 22, 2014 Mr. Livergood reported the Cemetery Fund was self- sustaining. There are long -term issues with the Cemetery and whether or not the Commission feels the Cemetery is a local government responsibility. There are less than 100 available spaces remaining. The life span of the Cemetery is only another year or year and a half. The mausoleum has availability but they are mostly all owned by Boca Raton Mausoleum. The remaining Cemetery lots are along Woolbright Road and the fence. Without sales there is no revenue generated. Commissioner Merker asked if there were any plans to beautify the Cemetery. It seems to need more greenery and new fencing. It is at a highly visible location. Commissioner McCray and Mayor Taylor recalled major improvements had been done. Mr. Livergood contended if the appearance was enhanced from a street perspective, Cemetery funds would not be utilized. Cemetery funds are for the maintenance of the property. The Fund balance has to pay for the perpetual care that will be stressed in the future. Vice Mayor Casello inquired whin the Cemetery had been established. Ms. Prainito added it was 1938. Mayor Taylor noted when it was sold out, the option would be to find more land or get out of the business. There is the option of more crypts. Mr. Livergood advised it was not a profitable business. The rates are very competitive. There is no requirement that the City provide a cemetery. Ms. LaVerriere inquired if there were enough plots to actually replat for additional lots. Ms. Prainito reported there are many spaces there. Commissioner McCray advised the citizens do not want to use it for burials. It is one fund and one maintenance operation for all three cemeteries. Barton Cemetery is not active and the maintenance is funded under grounds maintenance rather than the Cemetery Fund. There was never a revenue stream for those burials into perpetual care. Commissioner Fitzpatrick contended it should all be maintained the same. Ms. LaVerriere noted there are some historic grants that have been utilized to identify the plots and that they are properly marked. Ms. Byrne reported the historic trail being created would include the Barton Cemetery and it would be a feature. Commissioner Fitzpatrick felt, symbolically, it should be part of the Cemetery Board. Commissioner McCray's experience was the outside contractors are constantly increasing their rates and there are numerous complaints. Being controlled by the City is the best option for the Cemetery. He would not agree with any other arrangement. 11 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA GOLF .COURSE JULY 22, 2014 Ron Tapper, Golf Course Manager, reported the revenue includes a rate increase that would start October 1 and would alleviate some of the shortages. It was anticipated there would be 65,000 rounds played per year and the rate increase would generate $5,000 more revenue. Vice Mayor Casello confirmed a rate increase had not been done since 2009. The Club card fee had not increased since 2002 and permits only increased a couple dollars one year. He asked what was encompassed in general equipment and it was the mowers and trimmers. The Course was exceptional and voted South Florida's best municipal course. It is an amenity because people would come to Boynton Beach for the Golf Course. The beach and golf attract visitors from different parts of the country. There have been vast improvements in a short period of time with the available money and equipment. The equipment is in dire need of replacement and /or repair. The Course definitely needs its own backhoe with a front end loader available around the clock. It is an essential piece of equipment. Ms. LaVerriere recalled surplus equipment sale revenue goes back into the Fleet fund. Equipment had been sold from the Golf Course. Mr. Livergood mentioned the Fleet Fund could be used for purchases of equipment. A backhoe would cost $35,000 to $40,000 depending on the capabilities needed. Mr. Tapper agreed with the remarks and had included a backhoe in the five -year plan. Golf carts were included in the budget and it was hoped to include maintenance equipment in the same type of purchase plan. The new golf carts were purchased through a leasing plan. Golfers look for the little amenities of a GPS system on the carts and grounds conditions. There is intense competition. The City needs to make the Golf Course the best it can be. Mr. Tapper pointed out the Golf Course has made a 100% turn around. There is a working superintendent and a lot of work is being done. More is needed and it is in the five -year plan that was approved by the Commission. It was anticipated getting most things done in the next two years. Maintenance would then be the priority. Commissioner McCray was in favor of obtaining a backhoe for the Golf Course. Ms. LaVerriere agreed to work on it before the public hearings on the budget and see if Fleet can assist with the purchase and pay back of the funds. There is a plan for two new greens mowers and a vehicle that are in the budget. More money was being spent to enhance the appearance to bring the golfers to the Course. An increase in revenue was expected. The Golf Course was opened in June 1984. The industry data reveals either the general fee or membership fee has to increase every other year to remain viable. This Course went seven years without any increases and it fell in disrepair. Mr. Tapper acknowledged an increase in price can also drive the golfers away that would reduce revenue. The improvements are continuing for the next two years. 12 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Commissioner McCray asked if the overall budget and plan was doable and Mr. Tapper agreed it would work. People left the club because of the condition of the Course and are now coming back. Vice Mayor Casello reiterated the Golf Course was a gem for the City of Boynton Beach and people will pay a little extra if it is visually worth playing. Staff has done a tremendous job. ART IN PUBLIC PLACES JULY 22, 2014 Debby Coles - Dobay, Public Art Manager, advised there was a 28% increase in the Public Art budget that is due to the Kinetic Art Symposium costs being expensed through the Art in Public Places budget. The budget is typically under $120,000 and has been flat for several years. The only increase was due to insurance and benefit costs. Some of the expenses for the Symposium have been spent this year and some next year. There will be expenses in the 2015/16 budget as well. The outdoor exhibits are replaced in September and October and the cost covers two budget years. All of the increase is funded by sponsor contributions. Mayor Taylor noticed a $20,000 drop in revenue and Ms. Coles -Dobay replied it was based on the development or redevelopment that comes into the City. Development is on the rise so the next two years show an increase in projected revenues. Additional sponsor fees need to be added. Mr. Howard explained the budget calculations are constrained to a specific date and there are projects and sponsor money coming in that makes it difficult to have firm figures. The actual revenues were greater than anticipated. Printing and bindings expenses were increased to $1,000 and Promotions and Marketing increase due to 30,000 Save the Date cards being printed for the Symposium. Other contractual services would include such expenses as installing, shipping, maintenance, stipends for the artists, exhibit tent and art work insurance. The first Kinetic Symposium was budgeted for $10,000 and this year the budget is $70,000 and sponsors have pledged $70,000 with $50,000 collected to date. She reminded the Commission 70% of the 1% public art impact fee charged to the developer is earmarked for public art in their projects. The 30% of the 1% fee funds the Public Art Department. The threshold for the 1% fee is a project has to be valued over $250,000. There are some exemptions for affordable housing, single - family infill housing and situations resulting from an act of God. Mayor Taylor wanted to know if City facilities were exempt and Ms. Coles -Dobay replied City facilities participate in building public art into their projects. Mayor Taylor felt it was the City paying itself. Ms. Coles -Dobay argued it demonstrated support for the program and it brings the community together and combines the identity of an area. Mayor Taylor agreed, but did not understanding why the City had to charge itself. The monies spent would include funds for landscaping and art. The additional 1% and the 30% thereof goes back into the General Fund. Ms. Coles -Dobay indicated the Public Art Fund was not part of the General Fund. She needs the 30% to fund her Department. 13 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Commissioner Merker agreed with the Mayor. Ms. Coles -Dobay argued her salary and operating expenses are part of the Fund. Mayor Taylor maintained there should be enough revenue from outside building to cover all the costs without the City paying the 1% fee. Ms. Coles -Dobay noted some of the projects only generate a few thousand dollars. The 70% of the fee stays in the project for the public art. Vice Mayor Casello wondered if the developers are encouraged to use local artists. Ms. Coles -Dobay said in general they do. It depended on the size of the development and working with the developer and scope of the call for artist. Most of the projects have used local artists to reduce the cost of travel and shipping of any art to be installed. Mayor Taylor surmised many developers allow their architects to create the art rather than hiring an artist. The public art ordinance requires a specific job skill set for the individual that is qualified. Some architects are artists. The goal is to have professional looking public art in projects. Mayor Taylor indicated there are architectural aspects that are utilized to create a decorative facade without an artist design. Ms. Coles -Dobay replied there is usually an artist on the team. If the architect can prove he has done public art in the past he would qualify. Commissioner Fitzpatrick asked about the threshold for development or redevelopment. The basis of the fee is the construction value as determined by the Building Department. It would not include the land value. Any additions or changes in construction would have to reach the $250,000 threshold. A renovation would not be redevelopment. Attorney Cherof interjected redevelopment would be changes to the interior of the building, increases in the floor area and changes made to the exterior to add improvements. WAREHOUSE FUND Mr. Howard advised the budget has a $14,000 increase that is health insurance and pension increases. Staffing remains the same. Inventory products are charged out to the Departments. It is an internal service fund. Four scanners were being purchased to track their inventory. It is a central location to control inventory. Commissioner Fitzpatrick asked about the long -range status of the Public Works complex. Mr. Livergood replied the complex would remain at its current location. A new complex has not been budgeted in deference to Police and Fire needs. It will eventually have to be moved. Mayor Taylor discussed it had been considered previously, but there was no other property that would be suitable. The tanks installed are above ground and can be moved to any location. 14 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA TRAFFIC SAFETY FUND JULY 22, 2014 Mr. Howard indicated the two Community Service Officers and the red light camera clerk salaries are taken from the fund. The lease payments for the cameras and special magistrate costs are expenses. Vice Mayor Casello saw that the revenues were decreasing and it was at break even. LOCAL OPTION GAS TAX This fund covers the revenue from the gas tax on every gallon of gas sold and it is transferred out to street maintenance in the Capital Fund and a portion transfers to the General Fund. Vice Mayor Casello questioned if the revenue increases when the price of gasoline fluctuates. Mr. Howard replied it is a prorated share through the State. It does go up and down but there is a delay. Mr. Livergood added the tax is per gallon so more fuel efficient vehicles can impact the revenue stream also. There was also the fact when gasoline prices rise, usage goes down. COMMUNITY IMPROVEMENT FUND The CDBG (Community Development Block Grant) and SHIP (State Housing Initiative Partnership) programs are accounted for in the Fund. It is funded by the administrative fee from the grant program. There is one staff member that would be split between Community Improvement and Economic Development. DEBT SERVICE FUND This fund recognizes the public service tax revenues from Florida Power & Light and the different utilities. The debt service payments are processed on the public service tax bonds of 2004 and 2006. The remainder, $6 million, is transferred to the General Fund on a yearly basis. Commissioner Fitzpatrick thought some of the revenue was from cable fees. Mr. Howard noted, by Statute, the cable franchise fee was sunset two years ago. It accounted for $70,000 a year when it was collected. In response to questions previously asked, it was anticipated that revenues and expenses for the current fiscal year would require only a $920,000 transfer from reserves rather than the $2.4 million expected. The figures would not be formalized until a year and a half out. The $99 expense in the Finance budget that was questioned was simply a typing error. It should have been zero. 15 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA The expiration date of the red light camera contract is May, 2016. It was a five -year contract. Vice Mayor Casello questioned, if the expense exceeds the revenue, should the value of the program be scrutinized. Ms. LaVerriere agreed it could be discussed when it was time to renew. Also SAFER stands for Staffing For Adequate Fire and Emergency Response. Mayor Taylor opened the floor for public comment. JULY 22, 2014 David Katz, 67 Midwood Lane, was surprised to hear the bathrooms in the Sims Park were not already ADA compliant. Ms. LaVerriere understood the cost would be adding the button on the door. Ms. Majors thought the explanation should be it was making it more accessible. Mr. Katz had understood there was property available beside Fire Station #5 for a new Public Works complex. Mr. Livergood indicated there was property allocated for the Police facility. As a resident of the Meadows, Mr. Katz complained about the lack of improvements to a vacant park parcel in his development. Ms. LaVerriere said it was a funding issue. There has been no funding for park development in the capital budget for several years. There is insufficient money to even maintain what is established. Several parks are on hold. The City has increased the maintenance for the parcel. Mr. Katz claimed the residents were looking for an extremely passive park. Vice Mayor Casello and staff had met with the homeowners' association and several options were offered. Ms. LeJeune added there was insufficient interest by the residents to go forward with any of the options. The options are still available. Until the homeowners' association wants to take the added responsibility as part of the options, it is in a wait mode and the City will continue to mow the parcel. Mr. Katz inquired if the options included an extremely passive park. Vice Mayor Casello thought there were two or three options and none were selected. Mr. Katz requested a copy of the options. Mr. Katz had discussions with Commissioner Fitzpatrick relating to water conservation. He observed if people conserve water, the rates go up because less water is used and the rate gets raised. The expectation was if you use less, you pay less. A rate increase would be a penalty for conserving water. It was suggested by Mr. Katz that the City's lobbyist be instructed to get the surcharge of 25% for water outside the City limits raised. The extra funds could be used to keep the General Fund afloat. Mr. Katz asked for the payment amount on the debt service. Mr. Howard answered it was $2.6 million a year. 16 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Herb Suss, 1711 Woodfern Drive, wanted the millage rate to stay at 7.9. Mr. Suss did not agree with City Hall going back to being open five days a week. As a taxpayer, $800,000 to $1 million was saved. Some of the money could be allocated for a new Police Department or raises for police. The Library remains closed on Fridays. The Police Department should go out for a bond since the rates are low or raise the millage rate to 8.2 mills. The Fire Station got theirs and the Police Department is long overdue. He felt strongly about keeping the Boynton Beach Police Department rather than the Sheriffs Department. Mr. Suss applauded the efforts of the staff at the Golf Course. Lastly, the more water saved, the better the future will be. Vice Mayor Casello clarified the savings for the four -day work week was not $800,000. He supported City Hall being open five -days a week. When a holiday falls on Monday, four days is too long for City Hall to be closed. The benefits outweighed the minimum savings. Woodrow Hay, 427 NW 5 Avenue, commented the railroad speed had to be kept below 80 miles per hour so the municipality would have to pay the cost for the crossings. If the speeds are 80 or above, All Aboard Florida has to pay for the crossings. No one else coming forward, Mayor Taylor closed public comment. In discussion on the Police Department, Mr. Livergood indicated a needs assessment was done to move the Police Department to the High Ridge Road site, adjacent to Fire Station #5. A policy decision had been made to move the Police Department to that site. The bottom line cost is $25.7 million including construction, design engineering and fees. There would be two ways to fund by bond. One is pledged revenue bonds. The current bonds are wrapped with the new debt so there is level debt service payments for the life of the new bond of 25 years. It would raise the debt service payment of $2.6 million by $1.2 million. It would be equivalent to 3.45 mills at the current values. The other option would be a referendum vote debt service millage rate on the property tax bill. The bond stands alone because the pledge is the millage on the property values. The debt service would be $1.6 million a year for 25 years and equate to 8.59 mills on the tax bills. Other issues and projects are on the horizon. Commissioner Fitzpatrick asked when the debt service would sunset if the first option was used. Mr. Howard advised the two current bonds are also wrapped. One gets paid off in 2019 and the other in 2027. If the City used .4829 for five years there would be no drop off because the current bond issues are wrapped. It would continue to 2027. 17 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA JULY 22, 2014 Ms. LaVerriere discussed the option of moving forward with a pledged revenue and not going to referendum. The City would have to issue a bond, attached to the tax bill, for .349 mills in addition to 7.9 mills. It would have to be adopted today. The Town Square conceptual plan would be presented to the Commission on August 5 A decision on the Police Department does not have to be made today. It could be packaged all together with a redevelopment project or handle the Police facility by itself. Commissioner Merker commented the situation with the Police has to be resolved whether they stay a local department or go to the County department. Also consolidating the City services to a center may be an option with the Police, Fire and City Hall as one. Mayor Taylor felt the current situation with the police has nothing to do with the facility itself. The decision has been made the City was keeping its own Police Department. The two bond options would mean a considerable raise in millage resulting in a tax increase. It might be better to ask the public through a referendum before increasing the taxes. Vice Mayor Casello wanted public input before voting on the bonds and tax rates. He offered that there had to be a bundled project for the future of downtown Boynton Beach. The leaders have to sell the concept to the public. Mr. Howard advised the earliest the referendum could go to the public would be March, 2015. It falls in line with the future meetings concerning the downtown area. An Ordinance would have to be passed by January. Commissioner Merker contended it was a business decision that should be made by the elected officials so the City can move forward. It is a progressive move. The public is not as involved and does not have the knowledge of the vision for the City. The public would have to be educated on the reason and basis for the decision. Those with the expertise should make the decision. Commissioner Fitzpatrick had heard if a referendum is used, it should show as a tax debt. Ms. LaVerriere indicated it was a debt service millage versus the ad valorem. The millage should be kept between 7 mills and 10 mills to maintain the bond rating. It would be in addition to the 10 mill cap. It would be noted outside the operating millage. A voted debt service is viewed more favorably in the current economic climate as far as the bond rating. Vice Mayor Casello did not think he was smarter than the general public. He is a constituent to lead and do their will. Any decision of this magnitude should be a people's vote since they are paying. The burden should be shared with the public. 18 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Mayor Taylor declared there was consensus to raise the garbage rate by $1. JULY 22, 2014 The current fire assessment is $88 for residential, $.20 a square foot for commercial, $.05 a square foot for industrial /warehouse, $.22 a square foot for institutional and $.22 a square foot for nursing homes. The proposed assessment is residential $100, commercial $.20 a square foot, industrial /warehouse would remain the same, institutional and nursing home would increase to $.25 a square foot. Vice Mayor Casello realized the fire assessment was needed and he hoped the three positions would continue to be funded. The new certificate of use program is in the budget for $200,000 and the program has not been adopted by the Commission. The budget can be adjusted before September and after the program has been presented to the Commission. The proposed increase in EMS fees revenue has not been budgeted. It will come before the Commission on August 5 and would generate $200,000 in revenue and could be added into the budget. The final health insurance rates will have to be adjusted before the final adoption and reduce expenses from the proposed budget. The $103,000 match for the fire grant will be taken out of the expenditures. There is a shuttle service agreement between the City, CRA and SFRTA. The City's share would be $57,000 a year for two consecutive years would have to be inserted into the budget when the agreement is finalized. Ms. LeJeune explained it is a shuttle bus replacement for the trolley service. There is a grant agreement that will provide a shuttle service for the City of Boynton Beach and several other cities. It would run the same route as the trolley serving the underserved and low income populations. Data gathered during the two years would be the basis for the decision to continue or discontinue the service. Cost sharing with the local businesses may be possible to keep the service available. It is part of preparing for the future Transit Oriented Development area. Mayor Taylor did not want to start a program that would be taken away. There is no measurable standard. In the future it might be a great idea. Vice Mayor Casello thought the trolley failed because more students were using it for free transportation than shoppers. Ms. LeJeune agreed. It was taken into consideration and the new schedule would be timed so it would be beneficial for those going to and from work and do shopping. The shuttle service will not be readily available for student dismissal. Vice Mayor Casello agreed with Mayor Taylor that it was too early to implement the program. 19 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Commissioner McCray was not in favor of the service because the City was charged twice through the Commission and CRA. To his knowledge, the Delray service was unsuccessful. Ms. LeJeune advised it was a one -time grant opportunity. Commissioner Merker was not ready to make a snap decision. Mayor Taylor declared there were four against the program. JULY 22, 2014 On the staffing, Ms. LaVerriere understood there was consensus to keep the three firemen for the last quarter of the year. The five police and two development staff were proposed to be cut. Commissioner Fitzpatrick cautioned there is no more room for deficit and the budget has to balance. Next year would be a day of reckoning and if six firefighters cannot be funded, an entire unit will go down. Vice Mayor Casello offered first responders are desperately needed. Ms. LaVerriere would direct the Chief to make sure, through attrition, there are positions open, so the decision will not include laying anybody off. Chief Katz had agreed he could lose the five police officers and would not reduce the police on the street. He could work it out. Mayor Taylor and Commissioner McCray would agree with Chief Katz's assessment. Commissioner Merker concurred. Vice Mayor Casello also agreed. There was consensus to reduce the development staff by two. Attorney Cherof reminded the Commission the workshop process would be repeated in the two public hearings to be held. The direction of the Commission is binding on staff. The decisions made could be reconsidered. The proposed millage rate is 7.9 with a rollback rate of 7.4664. Once that is set, the millage rate cannot be increased. It can be reduced. Attorney Cherof read the title to the Resolution to adopt the tentative millage rate, stating the roll back rate and set the date, time and place for the first and second public hearings. The first hearing would be September 3, 2014 at 6:30 p.m. in City Hall Commission Chambers. If the rate were to be raised after this preliminary rate is set, the Finance Director would be required to send a first class letter to every property owner in the City of Boynton Beach, notifying them of the increase. 20 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Motion JULY 22, 2014 Commissioner McCray offered a motion that the current proposed rate be accepted at 7.9 mills with State rollback tax rate of 7.4664. Vice Mayor Casello seconded the motion. Commissioner Merker did not understand the rollback rate. Ms. LaVerriere explained the rollback rate would generate the same revenue as the current year. Vote The motion passed unanimously. Attorney Cherof read the Resolution setting the preliminary fire assessment rate by title only. The methodology remains the same for assessing the rate. There was a challenge to the original tax assessment that was successfully defended a couple years ago. Motion Vice Mayor Casello made a motion to accept the Fire Assessment rate at $100. Commissioner Fitzpatrick seconded the motion Vote The motion passed 4 -1 (Commissioner McCray dissenting). There was a short discussion on the towing contracts and when they would be brought before the Commission. Vice Mayor Casello thanked everyone for their great job. Mayor Taylor stressed the increase in pension benefits was a major expense. He wanted to ask the City Manager and Finance Director to look at the possibility of selling the pension funds to insurance companies and any other options that may be considered. The employees' future benefits have to be available. Vice Mayor Casello completely agreed as did Commissioner McCray. It was a strategic plan priority for the year. There were some ideas on how to move forward that would be made into options and presented to the Commission. The special meeting was adjourned at 2:13 p.m. 21 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA ATTEST: e et M. Prainito, MMC y Clerk i th A. Pyle, CMC e puty City Clerk CIT OF BOYNTO ACH Michael M. itz • atrick, Co ' issioner 22 JULY 22, 2014